Positive and Negative Impacts of Macro Environment on Business Operations

Business and Business
Environment

Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1. Different types and purposes of organizations and legal structure.....................................................3
P2. Size and scope of different types of organizations.............................................................................6
TASK 2..........................................................................................................................................................8
P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure....................................................................................................8
TASK 3..........................................................................................................................................................9
P4 Identify the positive and negative impacts the macro environment has upon business operations,
supported by specific examples...............................................................................................................9
P5 Conduct internal and external analysis of specific organizations in order to identify strengths and
weaknesses............................................................................................................................................12
TASK 4........................................................................................................................................................13
P6 Explain how strengths and weaknesses interrelate with external macro factors...............................13
CONCLUSION.............................................................................................................................................15
REFERENCES..............................................................................................................................................16

INTRODUCTION
Business Environment is a mixture of various forms of internally and externally factors
which might not be managed by business organizations but have a profound influence on the
production, competitiveness, financial performance of organizations. Inner factors affecting
business organizations' working involve vendors, consumers, workers, investors, whereas
environmental influences involve government laws & legislation, technical factors, economic
circumstances, and competitors (Becker, 2018). Given report was conducted on Sainsbury's that
is one of the largest large supermarkets with headquarters in London, EC1, and UK. This
supermarket mainly deals into food and groceries. This report covers different types of
organisation, their purpose, legal structure. Discussions on the type and scope of various
organizational structures alongside their connection have been established are being designed in
this chapter. Additionally, this report includes interconnections between various department
managers of enterprise with their duties. Finally, to assess strengths and weaknesses, SWOT and
PESTAL analyzes of various macro factors are carried out.
TASK 1
P1. Different types and purposes of organizations and legal structure.
There are different types of organizations in three various industries conducting their
company operations, such as the public, private and voluntary industries. Along with some
organizational types also mentioned that are provide help to nation economic like sole traders,
partnership, and limited company. These organizations function with such a desire to meet
critical customer needs and at the same time gain good profits. In addition to this, these
organizations' successful operation contributes in high-end income production for a nation
government resulting in higher GDP levels gaining. In this situation, a report is presented to
management at an Annual General Meeting before Sainsbury's investors to appropriate choice
components of management framework.
Sole traders: A sole trader is a person-employed individual who starts and runs an
individual’s personal own company. A sole trader business has no permanent address different
from its owner, which leads many others to admit people are the company as a limited company.

For example, Aspire UK tax accountants is an accounting firm that operate by the one person
and handle their customers.
Purpose: The main purpose of sole trader to generate higher revenues and expand business at
large level (Bhatnagar and Sinha, 2018).
Legal structure: This business follows the legal structure of limitless activity that set by the
government.
Partnership: A legal type of activity involving two or more parties who divide the
ownership and income. The executive branch acknowledges so many partnering kinds. The more
popular of these two are limited liability partners.
For example: John & Lewis are based on partnership that which established in UK
Purpose: The main purpose of this partnership to enhance the income by the sharing financial
information and become leading business.
Legal structure: The business follows of responsibility sharing legal framework in order to
operate the business activities of John & Lewis.
Private organisation: Private sector organizations are owned and operated by
privately corporate individuals, firms and every other judicial basis inside this industry. The
primary reasons of businesses working in the construction industry are to attain a high degree of
profit margins (Chang, Wong and Chiu, 2019).
For example, in private sector organizations, Sainsbury is regarded since they have everyone’s
own while here together with client legislation.
Purpose:
Legal structure: These structures follow by the organization in appropriate manner such as:
 Sole proprietorship: Organizations which operate their business operations in this
industry are wholly owned, managed and owned by a centralized person. There are no
formal legal differences here between holder and a public institution in the sort of
business arrangement.

 Partnership: When group of people come with each other in a comprehensible way to
operate a company, they are called partnerships. It's basically a formal communication
agreement made between two people in which they work in collaboration on the portion
of revenue and expenses in company. Industries that operate as alliances have an
individual code for making more and more income when helping customers.
Public organisation: Organization of the government sector this field is the one that
executes its duties by getting complete influence over government departments, public
departments as well as other government departments. The primary motivation of industry
sectors is to serve the public done by offering individuals with social assistance, instead of
generating large amounts of revenue (Crick, 2019).
For example: In public sector organizations, BBC is regarded to be governed by government
entities even when exchanging for revenue.
Purpose: The main reason of the company to provide all the reliable information to population.
Legal framework: This organisation followed central government based structure with proper
laws & legislation.
Voluntary organisation: Voluntary businesses focus their operations inside this industry
primarily on the basis of supplying public healthcare infrastructure to represent communities and
fulfill their wants and needs.
For example: In the voluntary sector organization, Oxfam is regarded to even provide
humanitarian assistance to communities in the drought-prone region as well as other regions
impacted. These volunteer organizations simultaneously reach people to enhance their living
standards and thus social system with the greatest.
Purpose: These organizations perform systems and services efficiently with volunteer groups
from numerous places who are inclined to assist individuals and society.
Legal structure: The company follow limited liability, trust and unincorporated organisation
structure in proper manner.