Positive and Negative Impact of Macro Environment on Business Operations

Business
and
Business Environment

Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Different types and purpose of organisation; private, public, legal and voluntary sectors....1
P2 Explain the size and scope of different types of companies...................................................2
LO2..................................................................................................................................................4
P3 Explain the relationship between organisation function and their link with organisation
structure.......................................................................................................................................4
LO3..................................................................................................................................................5
P4 The positive and negative impact of the macro environment in operations of the business.. 5
LO4..................................................................................................................................................8
P5 Conduct the internal and external analysis to identify the strength and weakness................8
P6 Explain how internal strength and weakness affect the external factors................................9
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment refers to the combination of internal and external forces which
influences the operation of the organisation. The study of business environment is necessary for
any organisation to gain competitive advantage in the industry (What Is Business Environment? -
Definition & Factors, 2019). This report will be based on the three types of organisation which
are voluntary, public and private and the chosen organisation for the same are Oxfam, Tesco and
NHS. Their nature, scope and purpose will be defined and the inter relation of the different
departments. The strength and weakness of the two different organisation is to be explaining
with the specified examples. This report will also include the effect of external factor on
operation and its positive and negative impacts on the company which will be public and private
enterprises. The internal strength and weakness of the external factor will be included in this
report and it will be based on the private company that is Tesco.
LO1
P1 Different types and purpose of organisation; private, public, legal and voluntary sectors.
The organisation became a necessary for the economic growth as well as employment of
the nation. It is major responsibility of the business to provide satisfaction to the customer's by
providing goods and services according to their needs and preference. In customer's context all
organisation has various purpose. The various purpose, objectives of different types of
organisation are given as follows: -
Private organisation: These are owned and control by two or more than two directors
such organisations are also known as non-government organisations. So all these organisation
needs to follow all the rules and regulation which are established by government otherwise that
firm will liable for the huge fines and charges. The main motive of private organisation is to earn
revenue by identifying different needs of the customer's. E.g. are Sainsbury, Tesco and many
others (Adomako and Danso, 2014).
Sole proprietorship: It refers to firm where the business is owned and run by individual
entity. In this individual entity and the business are considered same there is no separation in
these two also that person is liable for all the losses which occurred in the business and also gain
all the revenue of the business.

Legal structure: In this individual entity which operate the business is liable for all the
losses and debts and also gain all the profit of the business.
Partnership: Partnership refers to where business is wholly owned and run by the two
or more than two persons. It is an agreement between partners which includes all the terms and
conditions regarding the profit sharing and liabilities of the partners.
Legal structure: In this all the terms and condition regarding the liabilities and profit
sharing are written in the agreements with the signature of partners.
Public organisation: public organisation includes those organisations which owned and
run by the government. The main motive of such kind of organisations is welfare of the society.
These kind of organisation has limited liability and in this 51% shares of the company are hold
by government only and the other 49% by shareholders. For e.g. nationalised banks, hospitals,
schools etc.
Legal structure: In this whole business is run according to the rules and regulation of the
government because these firm are owned and controlled by government without the motive of
profit earning (Bouwman and et. al., 2012).
Volunteering organisations: These organisations are formed by different groups linked
together for the welfare of the society. These such organisations are run by individual without
any pay. Any legal forms are not required to run these kind of organisation like any group which
have their conman objective about raising awareness about cleanliness of the city.
Legal structure: The all terms and conditions which are adopted by the organisation is
totally based upon the type of legal structure which is chosen by the enterprise. In these includes
all the trust and social enterprise which have limited liability.
P2 Explain the size and scope of different types of companies.
There are various types of organisation run at the market and these enterprises have their various
scope, size and purpose which are as follows-
Public organisation-NHS
National health service is a social welfare organisation which provides health related
services to the common people and it is owned and controlled by the government. It provides
various services like optical care, dental care and other health related services to the citizens of
the country for the purpose of social well fare.