P4. Identification of positive and negative impacts of macro environment on business

BUSINESS AND BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types, size and scope of organisation .............................................................................1
P2 Explaining size and scope of different type of organisation. ...........................................3
TASK 2............................................................................................................................................4
P3. Relationship with different type of organisational functions and these are linking with
organisational objectives and structure..................................................................................4
TASK 3 ...........................................................................................................................................7
P4. Identification of positive and negative impacts of macro environment on business ......7
TASK 4 ...........................................................................................................................................9
P5 Internal and external analysis of Lego..............................................................................9
P6 Strengths and weakness are interrelationship with external and macro factors..............11
CONCLUSION..............................................................................................................................13
REFERENCES .............................................................................................................................14
.......................................................................................................................................................16

INTRODUCTION
Business Environment refers to internal and external factors which affect the functions of
business operations. Business consists of macro and micro environment in which one is
controllable by entity itself and other is not controllable in any of the situations of business.
In this report, an entity is given which are public, private and voluntary. Organisations are
Lego, UNICEF and Bank of England. UNICEF is organisation which helps in saving and
improving lives of children. Bank of England helps in regulating financial stability of United
Kingdom. Lego is dealing with plastic bricks and toys. This report covers different types and
purposes of above cited entity. Further, it covers the size and scope of organisations. Lastly, it
covers the relationship with different types of structure functions which link to organisational
objectives.
TASK 1
P1 Types, size and scope of organisation
There are three types of organisation which are working in different sectors; some of
them are private, public and voluntary organisation for business.
Private company - it is a company which is privately owned. Stock of this entity is not
traded in public exchanges but organisation in hands of private ownership. There are very few
investors which are doing investment in private company. In this type of company most entities
have to raise money from outside. This type of company focusses on profit making. Main
objective of company is to increase capability of worker. This entity is based in Billund
Denmark. Lego is doing business of colourful interlocking of plastic bricks which consists of
gears, mini figures and many parts. It is used in integrating pieces for vehicles, buildings and
working robots of business (Smith, 2017). There are many types of company under this sole
trader, partnership and many more. Purpose of business is to earn profit which are the most
important for business.
Advantage - This focuses on serving of people with the motive to earn profits.
Disadvantage- This sector only focuses on profit making which is necessary for survival of
an entity.
Sole trader- this type of business individual has own responsibilities of making decisions
and performing tasks for firms. It is one of the simplest way to start a new business. In UK
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person is responsible for keeping of records which records sales and incurred expenses. Owner
of business has all legal responsibilities of business operations. Person has control over assets
and liabilities of business and use it owns by nature of business operations.
Advantage – An individual has no needs to take approval of owner and can take
decisions independently.
Disadvantage – Here, an owner had an unlimited liability of business which makes risky
situation to go wrong.
Partnership- in this business there can two or more than two partners. This entity comes
under Partnership Act. Every partnership business has to register its business under this act. In
the profits, capital structure is also decided by partnership agreement. Person invest money in
proportion which is decided by business.
Advantage - Here, both risk and profits are divided by business so burden is not on an
individual.
Dis advantage – Here, the person has a limited liability which makes situations risky
(Sila, 2015).
Public sector- In this type of business, the entire control is of the government. This
company trade in open market of business with shares are buy by diverse of investors. Company
can raise its funds by different offerings like selling of new shares in market. Bank of England
comes under public sector which is operating in Central Bank, UK. It is one of the eight banks
which are responsible for issue of bank notes in England and Wales. This bank was private
earlier and after that, it became nationalised. Purpose of public sector entities is to serve people
and profit is secondary motive. Legal structure of entity is responsible to the local government.
Advantage -In this type of business, raising of funds is quite easy which is helpful for
business operations.
Disadvantage- Here, an owner has no control over business because majority
interference is from the government.
Voluntary Organisations- this type of business is focusses on uplifting society not on
profit. Main purpose of business is to make social impact on society. It is not for earning profits
but for raising of society. It is one of the ways by which entity can contribute towards society.
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