Impact of Macro Environmental Factors on Organizational Structure

Business and Business
environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
Different types of organisation such as private, public and voluntary...................................3
Scope and Size of different types of business organisation...................................................5
TASK 2............................................................................................................................................6
Explain relationship with various types of functions in an organisation and linked with
organisational structure..........................................................................................................6
TASK 3............................................................................................................................................7
Positive and negative impacts of macro environmental factors that affects the organisations
structure..................................................................................................................................7
TASK 4..........................................................................................................................................10
SWOT Analysis of ASDA....................................................................................................10
Interrelationship of internal strength and weakness with external macro economic factors.12
CONCLUSION .............................................................................................................................13
REFERNCES:................................................................................................................................14
Books and Journals:..............................................................................................................14

INTRODUCTION
Every company wants to become the leaders of the business world but due to dynamic
nature of business environment creates problems in front of the company. It is very necessary for
organisation that they should take a necessary step so that they can run their business. They need
to identify and analyse the business environment so that they can find out the factors that affect
on their business operations and functions. Business environment is dynamic which can change
anytime that can be negatively or positively affect on organisation (Spieth, Schneider, Clauß and
Eichenberg, 2019). In this context, ASDA is undertaken for analysing the effect of factors that
can be raised due to change in business environment. It is very important for ASDA that they
find all those factors because it can negatively or positively affect on business operations. ASDA
is the British multinational super market chain that deals in providing all types of consumer
goods to the customers. This report covers analysis of different types of organisation and their
functions that are linked with organisational structure. The report also talks about the
interrelationship of all the functions of an organisation and their interrelationship. Also the
external and internal analysis of the company is part of this report. The strengths and weakness
of the company helps to manage the impact of macro economic factors of the company.
MAIN BODY
TASK 1
Different types of organisation such as private, public and voluntary.
Organisation has many types that should be understand so that company found their own
legislations to perform the functions. It is very necessary for organisation that they should know
their type of organisation in order to accomplish their goals and objectives. It can be more
understand with the help of separate explanation that are mentioned below:
Public sector organisations:
It is the type of organisation in which companies are run by government. Their main
objectives are to run organisation for welfare of society. It is the type of organisation in which
they perform activities on the order of government. They serve goods and services for the
welfare of social community. For that purpose government collect taxes from general people so
that they can give subsidies to the public sector organisations. British Council is the organisation
that comes under in public sector.

Purpose: Main objective of public sector organisation is to provide goods and services so
that they do welfare for community with the raising of profits.
Legal structures: Legal structure set the limitations of public sector organisation that
should be they follow in order to make profits and run effectively.
 Central Government: These organisations are basically controlled and managed by
Central Government like Environment Agency, Department for International
Development and etc. Central government decide the legal structure of this type of
organisation.
 State Government: If they are functioning at state level than the legal structure is decided
by the state government. Local Government: The functioning of municipal corporation and involves the legal
structure of the loyal government.
Private sector organisations: These organisations are an important part of an economy and are
operated independently. This organisation does not involve interference by the government. The
decision making is independent (Wright and Nyberg, 2017). ASDA comes under the category of
private sector organisation. The company is a British supermarket chain in England.
Purpose- Private Sector organisations operate for the purpose of serving customers and
earning profits.
Legal Structure- The legal structure of private sector organisations is mentioned below:
 Sole Proprietorship: The business has single owner and has unlimited liability.
 Partnership: The business is formulated with agreement of two or more people that agree
to share the profits and losses among them. The liabilities of partners are limited to the
capital invested by them. Companies- It is a legal entity that is incorporated under companies Act 2013. It is a
different legal entity. There are two types companies that is public limited and private
limited. They are discussed below:
o Public limited company: It is the company that can raise money from public as capital to
run their business. Their finances are considered different from the finance of their
members.