Effect of Micro and Macro Factors on Business Objectives: PESTEL Analysis

Business And Business
Environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
PART A ..........................................................................................................................................3
Various types of Organisations........................................................................................................3
Scope and Size of organisation........................................................................................................5
PART B............................................................................................................................................9
Analyse the effect of micro and macro factors on objectives of business as well as decision
making process by implementing PESTEL analysis..............................................................9
Implement suitable type of SWOT analysis which have a major impact on decision making
process. ................................................................................................................................12
Explain how strengths and weaknesses interrelate with macro factors................................13
CONCLUSION..............................................................................................................................15
REFERENCES .............................................................................................................................16
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INTRODUCTION
Business environment can be refer to as collection or sum of external and internal factors
like staff members, consumers wants and needs, demand and supply, government and clients.
Respective components has a direct impact on the purpose of organisation in direct as well as
indirect way so it is very much effective to control and coordinate respective factors by building
strategies and tactics properly. The following study is about Sainsbury which is the second
widest supermarket chain in the UK marketplace. The following report is going to cover
different types, sizes and scope of the organisation by differentiating within not for profit, non
governmental and profit organisations . Further it includes the various kinds of complexities and
structures of international, global and transnational business formations in order to gain proper
understanding regarding business and related activities. In addition to it elaborate the way
through which various functions related with mission of organization. In the part B it includes
the environmental analysis both internal and external with the help of PESTLE and SWOT and
their interrelationship with macro factors.
PART A
Various types of Organisations
 Divergence in between not for profit, non governmental as well as profit
organisations by using examples of organisations within the three different sectors
by commenting on their legal structure.
Basis of difference Profit Non profits Public sector
Definition The private sector is
driven by the revenue
and growth so that
salaries of respective
organisations can be
impressive (Wu,
The non profit sector
is separate from
oneself from both the
public and private
sectors, but it
collaborate with either
In public sector wide
range of opportunities
available that shows
the diversity of the
sector itself. Public
employment refers to
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Buyya and
Ramamohanarao,
2019).
of them any time. the jobs which
contribute in effective
running of country at
every tier.
Example The example of
private sector
organisation is
Sainsbury in
respective assignment
For Non profits the
example is Oxfam.
Example of Public
sector is NHS.
Legal structure:
Public sector: In public sector organisations there are kinds of legal structure exist to serve
different purpose and objective that are as follows:
 Public corporations and nationalised industries: Respective sector business activities
at broad level. NHS come under respective public sector legal organisation.
 Local authority undertakings: A local authority undertakings that run as a part of
government departmental under the direction of minister.
 State services: In state services consist of the management of state wise such as defence,
education.
Private Sector and its judicial composition:
 Sole trader: It can be refer to as an individual who is the exclusive owner of the
enterprise and responsible for keeping all profits after all taxes has been paid. Sole traders
are often employed waged employees and bear all risks.
 Partnership: To overcome from the issues faced by the sole trader the business concern
may be generated. It is the union of various persons approximately in between 2 to 20
partners.
 Public limited company: Unlike private limited company, it is also a larger kind of joint
stock company. It is basically an incorporated enterprise which is run by Board of
directors instead of shareholders. Sainsbury operated under legal structure of public
limited company.
Voluntary organisation legal structure:
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