Impact of Macro and Micro factors on Business Objectives and Decision-Making

BUSINESS and BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION......................................................................................................................3
P1 Different types of Organisation........................................................................................3
P2 Size and Scope of the Organisation..................................................................................5
P3 Organisation Structure and function.................................................................................8
P4 Impact of Macro and Micro factors on Business Objectives and Decision-Making........9
P5 SWOT Analysis of Tesco and M&S...............................................................................11
P6 Interrelation of Strength and Weakness with External Environment.............................13
CONCLUSION........................................................................................................................15
REFERENCES.........................................................................................................................16

INTRODUCTION
Business environment can be explained as study of various internal and external
factor to get better information about business conditions on international level. Factors like
employees, customer needs and expectations, suppliers, supply & Demand, client,
management activities by government, innovation in management and technology, market
and social trends and economic changes (Hamilton and Webster, 2018). This report is based
on business environment analysis for Marks and Spencer in United Kingdom. Marks and
Spencer is a Public limited company which is working s Retail Sector organization which
was established in year 1884 in Leeds, United Kingdom. Different type of entrepreneurship
ventures will be studied in the report. Different entrepreneurship ventures will be analysed on
the basis of size, shape and structure. Different type of organization structure also will be
analysed in the study. Market scenario of market place also will be discussed in the report.
Internal capability of different organization also will be studied by using SWOT analysis.
External analysis of organization will be studied on the basis of PESTEL analysis.
P1 Different types of Organisation
Organisation refers to group of people all of them which are working for the attainment of the
single organisational objectives (Hiemstra, 2017). There are various type of organisation and
their objective may differ.
In all of them one type of organisation is known as business organisation. This refers to
organisation which includes functioning of business organisation and such business has
objectives of profit earning and profit maximisation. Such organisations operate so that they
can sell and manufacture goods and services and earn profit by them. Business organisations
are also divided in various types-
For Profit Organisations
These organisations are those which operate for profit and profit maximization. This
includes various functions and all of them are performed for attainment of single objective
which is profit maximization. These organisation are further divided on the basis of their
ownership and their functions.
Sole Trader- This is a type of organisation which is owned and managed by individual
owner of the business. Sole trader organisations are generally micro and small business
entities such as Ace Café and Harrods.

Partnership- Such business is owned by more than one persons and these people who own
business are known as partners. Partners are of various types which are generally known as
active partners and sleeping and passive partners (Fjeldstad and Snow, 2018). Active partners
of business are liable to manage all the functions of the business. These type of businesses are
generally medium size organisations such as The London Print company.
Private Limited- These are business organisations which are known as private limited and
this business are owned by limited number of people who are its shareholders. Such
businesses are generally large scale business.
Public Limited Business- Public Limited companies and business organisations are those
whose shares are listed on stock markets to be owned and purchased by general public. M&S
is one such type of organisation.
Public Sector Organisation
These organisations are government owned organisations. Such organisations earn
profit and this is taken by government. These are of two types in which some organisations
are totally government owned or if not than major part of the shares in owned by government.
Not For Profit Organisations
These organisations are those which are not operated for the purpose of profit earning
and profit maximization. Such organisations are operated like business organisations but
objective of such organisations is to serve people. For example, retail store which provide
goods and products at a lesser price so that all people can afford good products. In the
purpose of the organisation to serve society and it operates like business organisation.
Non Government Organisation
These are those organisations which are operated independently of government. These
are also like non profit organisation but not necessarily like that non profit organisations
include business activities and these may not include that (Kirchner and et.al., 2018).
Objectives of such organisations are to address social issues or political issues. These are also
known as charity organisations.
Difference in Organisations
Particulars For Profit Not for profit NGO