This final paper explains the details of internal and external factors that influence the process of shaping an organization. Firstly, the concept of an organization and its key features and types are explained, and then the individual factors of influencing the formation of the organization are elaborated. To fully understand this paper, it's necessary to know and understand the concept of an organization. There are many different definitions and interpretations when defining the concept of an organization because the organization itself can represent a process and the state. Ultimately, the most common characteristic of all definitions of the organization is that each organization must have a certain number of people who work together to achieve a goal. The shaping factors of an organization can be internal and external. Internal are those that the organization can influence, while external are those which the organization must adapt. Internal factors of organizational design include the goals and strategy of the organization, tasks, and technology, the size of the organization, human resources, the life cycle of the organization, product or service, and location of the organization. The external factors of organizations are those that the organization can't influence and some of them are institutional conditions, integration processes, markets, and development of science and technology. Since the choice of the market also determines the survival of an organization, it is also a major factor in the organization. Although these are two different groups of factors, and therefore their impact on the organization is different, there are still some common characteristics that could be found. Every organization strives to find the best way to change these factors or to adapt to them.