Impact of Macro Environment on Business Activities

BUSINESS AND BUSINESS
ENVIROMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Different types and purposes of organisations and legal structures.......................................3
P2. Size and scope of different types of organisations................................................................5
LO2..................................................................................................................................................6
P3. Relationship between different organisational functions......................................................6
LO3..................................................................................................................................................8
P4 Impact of macro environment on business activities.............................................................8
LO4................................................................................................................................................11
P5 Internal and external Analysis of Asda................................................................................11
P6 The way strength and weaknesses associated to macro environment..................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Business environment can be defined as the total of all macro and micro environmental
factors that impacts on business performance, productivity and operation. Macro environmental
factors are technological changes, political change, currency exchange rate, legal factors and
demographical changes which impacts on organization’s decision-making process. While micro
environmental factors are employees, business infrastructure, resources and capabilities that
directly impacts on organization’s business activity. Macro environmental factors are also known
external business environmental factors because they help to critically analyse external
environment of the company.While micro environmental factors support organization to analyse
its internal environment of the business. Currently no organization or corporation cannot achieve
success without understanding business environment. So, business environment helps
organization to understand impact of external and internal forces within business’s profitability
and builds sustainable competitive advantage in the business market. To understand role of
business environment has an example of Asda Company. In this report will discuss about
different organizations for focusing on internal and external analysis Through Pestle and Swot
analysis tools. It also provides extensive information on purpose, size, scope and different type
of firms presented in the market. The main objective of the report is to evaluate all factors which
can influence the performance of Asda to compete in retail market.
LO1
P1 Different types and purposes of organisations and legal structures
Nowadays, various types of companies or organisations presents within the market
called; public, voluntary, private etc. (Berman and Dalzell-Payne, 2018). In which these all
organisations are working in market for the different purposes. These companies or organisations
have been described below;
Public Organisations
Public sector includes those businesses and companies which are always running their
business activities at the very large scale within the market place. Many of public companies
mostly be able to run their business activities globally. The businesses which are coming under

the public industry or sector are selling their shares publicly, in which people in market place can
easily buy shares of a public venture, Public organisations always need high technology within
their daily business activities. The main reason is, these organisations run activities at the very
large scale within market place.
Private Organisations
Private organisations or companies mostly have something minimum scope than public
organisations. Most of private organisations run own activitiesat the national and regional level,
because nowadays, only few private organisations exist within the UK which runs their business
operations internationally. Companies in private sector never sell their shares publicly, because
owners within these companies mainly offers their shares to people who has close to them, like;
family members and friend sets. Private organisations are also always required for employing
technology, however not too excellent technology as public companies used.
Voluntary Organisations
Voluntary organisations always run their activities or operations in very low level of
scale in market. Voluntary organisations have mostly expanded their operations according to
their cash and fund inflow (Holmqvist and Ruiz,2017). Suppose, when any organisation of
voluntary sectorgains high fund by donation and charity, then they can easily be expanded their
services globally. Social organisations no have very high involvement of differentshareholders,
because these organisations are not working for earning effective profit margin. A voluntary
organisation raise fund only through donation and charity.
Legal Structure
Different types of organisations arehighly responsible to follow various considerations of
laws and ethics which has formulated by the United Kingdom’sgovernment. Some prime or
keyconsiderations of law and ethics have been mentioned below which each organisation should
be followed within its regular or daily operations.
Partnership act (1890):On the basis of this act of partnership, when there are two and more than
two persons ready for beginning a venture or organisation, then these persons are fully
responsible to register their new organisation legally within the country. There are this is very