Impact of External Environment on Business Operations

Business & Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Define various kinds and purpose of business organisation; voluntary, public and private
sectors and legal structures.....................................................................................................3
P2 Define the Size and scope of organisational range.........................................................5
TASK 2 ...........................................................................................................................................7
P3 Define the relationship between various organisational function and how they link to
organisational objectives and structure..................................................................................7
TASK 3............................................................................................................................................8
P4 Analyse the positive and negative impact that external environment has upon the business
operations, with examples......................................................................................................8
TASK 4..........................................................................................................................................10
P5 Conduct external and internal analysis of specific business organisation for assessing
strengths and weaknesses.....................................................................................................10
P6 Define how strength and weaknesses interconnect with external macro factors............14
CONCLUSION..............................................................................................................................15
REFERENCES .............................................................................................................................15

INTRODUCTION
Business environment is defined as a process of sum total of internal as well as external
factor which imposes direct impact on functioning and activities of business organisation. It is
essential for every company to assess the micro and macro environment factor which imposes
direct impact on productivity of the company. Internal environment includes such as public,
customer, supplier and many more which are controllable by company. On the other hand,
External environment involves taxation structure, deflation and inflation rate etc. Sainsbury's is
the second biggest chain of supermarket founded by John James in the year 1869.
The main purpose of this company is to offer superior quality products and services to its
customer at international level. In addition to this, they boost productivity as well as profitability
of the business organisation. It helps in building brand image and reputation of the company
across the world (Duignan, 2016). This report shows the size, types and scope of different
business organisation, interconnectedness of different function and activities of company along
with linkage to organisation structure .
TASK 1
P1 Define various kinds and purpose of business organisation; voluntary, public and private
sectors and legal structures.
The main purpose is to perform different business activities and functions in suitable
manner for achieving goal and objective of the company. There are large number of business
organisation and all have different purpose within the workplace which is going to be discussed
below:
Public sector organisation
The business organisation which exists for offering facilities and services to citizens of
country are defined as a public sector organization. These are managed, established and owned
by government of nation. Crown Prosecution Service Company is major principal government
agency in public sector which operates different activities ad functions for conducting criminal
action inside the cities. This company specifically helps different business organisations within
finance, HR and other sectors where it lead them to deal with all the legal aspects so that they
could effectively conduct operations in an ethical manner. Basically, involvement of Crown

Prosecution Service would impact positively on performance level of a financial institute through
offering them with right suggestions in specified time frame.
Purpose: The main motive of Crown prosecution service is to manager all functions and
activities in an suitable manner to give legal advice to different criminal prosecution agency and
to organise prosecution in U.K.
Legal Structure: Some forms of public sector business which is going to be discussed below:
Local government: It is a legal policy which manage districts, town, cities and countries.
It includes nation along with corporate government policy.
State Government: State government shares political authorities, ability and power with
the government of nation.
Central Government: Central government which have higher authority and work in
national interest.
From the above mentioned topics, Crown prosecution services execute their work by
using central government legal constitution.
Private sector Organisation:
The business organisation which are operate by an individual person for accelerating
revenue and profit are aforesaid as private sector organisation. Sainsbury's is the largest private
sector organisation located in UK which deal in offering variety of products and services that
helps in boosting revenue and profit.
Purpose: The main purpose of Sainsbury's is to hire more and more people for providing
superior quality products and services to its customer for boosting revenue and profit.
Legal Structure: There are different forms of private sector organisation which is going
to be discussed below:
Sole traders: It is the business structure which is executed and managed by only one
person in which there is no legal distinction between the business organisation and its owner.
Partnership: It is the arrangement between two or more person for executing work in
order to share profit and revenue (Gulden and Attfield, 2016).
Private Limited Companies: This is a business structure in which liability of owner is
limited to their shares only and control shareholders from trading of shares in public place.
On the basis of above mentioned companies, Sainsbury's is going towards private limited
company structure as business is run according to the companies act.