Bagietka Ltd: Analysis of Internal & External Business Environment

This report provides an analysis of the internal and external factors affecting Bakery Bagietka Ltd. It examines political and economic factors within the external environment, including the impact of government regulations, trade restrictions, and economic conditions such as unemployment and wage rates. The report also delves into internal factors such as organizational structure and production management, highlighting how Bagietka Ltd incorporates employee input in decision-making. Furthermore, it discusses how Bagietka Ltd influences the external environment through export and import activities, contributing to government funds and strengthening the economy. Desklib provides access to similar solved assignments and study resources for students.

Introduction
In the business environment various internal as well as
external factor are exist that affects business performance
and effectiveness of organisational operations.
Organisations conduct proper market research to identify
these factors properly for the purpose of formulating
strategies and planning to overcome the impacts on
internal and external factors.
Bakery Bagietka Ltd
Name of the Student
External Environment
In External business environment various factors that exist outside of
organisation but affect their functionality and performance in
positive as well negative manner. Bagietka Ltd has no control over
external factors, so it develops various strategies to overcome their
impacts on business operations are mentioned below:
Political: There are various factors are included in political factors
such as rules and regulations that are imposed by government, trade
restrictions as well as trade barriers that affect business (Fernández-
Olmos and Ramírez-Alesón, 2017). As Bagietka Ltd organisation
facing various challenges and problems because of changes in
government policies due to Brexit.
Economic: Business activities are getting affected by the economic
factors that is being related to growth and development of respective
economy. There are various economic factors like unemployment
rate, wage rate, interest rate are included. As in the economy of UK
ages rates are high that enhance overall cost of Bagietka Ltd
organisation as well as it also provides highly skilled employees that
facilitates the organisation to gain sustainable competitive
advantages.
How the company impact
its context External
Environment
Business also affects the external business environment
factors in positive and negative manner. Bakery
Bagietka Ltd impacts on external factors are discusses
below:
Political: Bagietka Ltd organisation affects political
factors in various manner. For business operations,
organisation conduct export and import activities (Little,
Salmela-Aro and Phillips, eds., 2017). Different
materials, equipment, machinery and products are
important to produce final products and these products
are exported to various countries that enhance funds of
government and strengthen the economy as well.
Internal Factors
In business environment various factors are presented
inside of business that affect business activities,
performance and profitability. As these internal factors are
in the control of organisation, so there are various
strategies are formulated by business to reduce the
negative impacts on organisation or implement changes in
internal factors according to planning to attain defined
goals and objectives of organisation.
Structure of organisation and production management:
Structure of organisation is the important for factor that
affect decision-making process and management functions
as well. Bakery Bagietka Ltd includes employee point of
views and suggestions in organisational decisions and
implement conductive approach on order to take effective
and quick decisions (Bulkaini, 2019). As every
organisation consists their own structure of organisation
according to business functions ad requirements.
References
Bulkaini, H., 2019. Internal and external factors affect
the company’s perfomance.
Cao, H. and Chen, Z., 2019. The driving effect of
internal and external environment on green innovation
strategy-The moderating role of top management’s
environmental awareness. Nankai Business Review
International.