Impact of Macro Environment on Business Operations

Business and Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
Main Body.......................................................................................................................................3
State various types and purpose of organisations: public, private, voluntary sectors and legal
structures.....................................................................................................................................3
Describe the size and scope of a range of different types of organisation .................................5
Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.......................................................................................7
Analyse the positive and negative impacts the macro environment has upon business
operations, supported by specific examples................................................................................9
Conduct internal and external analysis of specific organisations in order to identify strengths
and weaknesses.........................................................................................................................10
Explain how strengths and weaknesses interrelate with external macro factors.......................11
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment plays an important in the performance of the business it
include external and internal factors and forces like competitors, customers,employees,
government, legal and technological, suppliers, political etc. business environment
helps in analysing the opportunities which helps in increasing the performance of the
organisation. To achieve the goals of the organisation various decision while
considering the business environment so that effective planning can take place in the
organisation. If the organisation will not perform according to the business environment
then it can affect the productivity of the business in the market. Organisation has to
innovate its services according the needs and requirement of the customers so that
profit of the business can be increased in the market. Business environment helps in
analysing the threat which can helps the business to perform effectively in the market. If
the performance of the business will be improved then it will helps the organisation to
gain competitive advantage in the market.
Tesco is the biggest supermarket chain in UK it was founded in 1919 by Jack Cohen its
headquarter in Welwyn garden City,UK . It provides various services to the business
which helps in increasing the profit of the business in the market. Tesco is in huge
demand by the customers in UK due to the services which its provides. It also provides
online services to the customers which helps in increasing the overall revenue of the
business. Tesco has variety of products such as clothing, furniture, toys, software,
petrol etc. which helps in increasing the revenue of the business in the market. In this
report it will be analysed how business environment affects the performance of the
organisation (Shtal, 2018).
Main Body
State various types and purpose of organisations: public, private, voluntary sectors and
legal structures.
Organisational structure is the concept which guide how various activities should
be performed to achieve the goals of the business. It also helps in determining the flow
of information between different levels of the company activities of the business can be
performed effectively. Organisations have different structure depending on which

managers and owners of the business have to take decisions. Below are the various
types of organisational structure:
 Public Organisation: these businesses are managed and managed by the
government these types of organisation has to perform its functions according to
the rules and regulation given the government. Main aim of these companies is
to provide best services to the society so that there needs and requirement can
be fulfilled effectively. Public organisations involves shelter, petrol, water
business etc. HSBC it is the largest bank of UK which comes under the public
organisation because it provides the financial services to the business (Frank,
2019).
 Private organisation: These organisation are run and owned by the individual
with the aim of increasing profit in the market. The main motive of theses
organisation is to increase its market share in the economy by developing the
services of the business which will also helps in increasing the profit of the
organisation. Legal structure of these organisation are as follows:
 sole traders: These are the people who run the organisation without any
partnership. The owner of the business use their own capital to carry out their
functions. They take their own decision without consulting with anyone. Sole
traders have to bear all the risk which is involved in the business so that profit of
the business cab be increased.
Partnership: In partnership profit, loss and all the risk of the organisation is
shared among the partners as mentioned in the contract BMW and Louis Vuitton are the
best examples of partnership firms.
 Private limited: these companies have limited number of shareholders to carry
out the function of the business they have limited numbers of shares which
cannot be sold to earn profit. These organisation does not involve public in
making their decision. Examples of private limited company are JCB and
walmart.
 Public limited: These are organisation which operates in the market with the aim
of developing and providing best services to the customers these organisation