Impact of External Environment on Business : Assignment

Business and the Business
Envirosnment

Table of Contents
INTRODUCTION......................................................................................................................3
TASK 1......................................................................................................................................3
P1 Different types and purposes of organisations: public, private and voluntary sectors and
legal structures........................................................................................................................3
TASK 2......................................................................................................................................7
P3 Relationship between organisation function and how to link with objectives and
structure..................................................................................................................................7
TASK 3......................................................................................................................................8
P4 Relationship between organisation function and how to link with objectives and
structure..................................................................................................................................8
TASK 4....................................................................................................................................10
P5 internal and external analysis for identifying strength and weakness.............................10
P6 How strength and weakness interrelated with external macro factors .....................12
CONCLUSION........................................................................................................................15
REFRENCES...........................................................................................................................16

INTRODUCTION
Business environment is dynamic in nature and when it change gives direct impact on
working of companies. The same is of two type’s micro (internal factors) and macro (external
factors): micro consider all such things which are going on at small level like suppliers,
customers, competitors and several others. On the other hand; macro includes wide level of
factors such as political forces, market condition and so on. This whole assignment is based
on the Habitat retail Ltd. Which is enterprise of retail sector founded in 1964 on 11th May as
well founder of this firm is Terence Conran and Philip Pollock (Lee, Olson and Trimi, 2012).
They are offering their goods and services only in United Kingdom and products serving by
them are home accessories, furniture and upholstery. Below mention assignment has sub
parts in four tasks i.e. different types, size and scope of organisation. Apart from this
interrelationship of various function in the firm and how they are linked with structure of
company. This also throws light on optimistic as well pessimistic impact of external
environment on day to day working of business. In the last part of report SWOT and PESTEL
analysis of the respective organisation is done.
TASK 1
P1 Different types and purposes of organisations: public, private and voluntary sectors and
legal structures
There are three types of organisations public, private and voluntary sector.
Description of these is given below along with this purpose also:-
Public sector: These are such companies which is controlled and managed by
government of particular nation. Public company charge minimum amount of the services
which they are providing to customer (Reeves, Love and Tillmanns, 2012). Because their
main motive is providing services not formed for profit maximisation. Best illustration of
Public sector organisation is child support agency which is introduced in 1993 on 5th April
but this agency renders their offerings by the request of children’s parents. In that situation
when they are out of the country or because of some agreement. Capital which is necessary
for running business can be generated through charity, funds and donation given by peoples
as well parents also gives money when they are giving responsibility of their child. Products
provided by them are public goods, merit and essential. Legal structure of public sector
company-

 Central government department: There are some companies which are directly
operated by the government of that particular country. It sub part in state, local and
regional sections thus, when some firms comes under these three then managed by
central government department.
 Local authorities: This is a type of public administration formed at lowest tires under
state government and in some states also have organisations which are running by
legal administration (Rossi, Vrontis and Thrassou, 2012).
Private sectors: Businesses come under private sector have their own separate legal
entity and these are mainly run by owner of the company but in some situation it business can
be started in partnership also. Private Sector companies are running with the motive of profit
maximisation because the person who are running these want standard of living for
themselves as well as for their family member also. Habitat retail Ltd. Which is a retail sector
company introduced in 1964 on 11th May and founder of the same is Terence Conran and
Philip Pollok. They are offering only in United Kingdom and goods serving by them are
home accessories, furniture and upholstery. Respective enterprise is working for earning
money for their welfare. Legal structure of the Private sector company is explained below:- Sole traders- They are individual person who run business and don’t have their
individual identity from their company (Pham, Segers and Gijselaers, 2013). He/she
whoever is running business is liable for all the losses and debt along with this they
are the owner of all the profits earning by them.
 Partnership- when there is no single owner of firm it is known as Partnership
Company as well they can be two or twenty. The entire partners are liable for
everything in same enterprise according to the ration of their invested by them. This is
the most common and easiest way of raising capital and fund which needed for doing
day to day operations of business.
Voluntary Sector: these are also non profit organisation running for social welfare and
society. Apart from this it is distinct from public and private sector companies Wellcome
Trust is the voluntary organisation of United Kingdom introduced in 1936 by Sir Henry
Wellcome they mainly focus on Biomedical Research there are 2,057. This is the largest firm
which provide services for research and the same is one of the largest in the entire world.
Legal structure of this voluntary sector company is given below:-