Macro Environmental Factors and Its Impact on Business : Report

Added on - 21 Jul 2020

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INTRODUCIONIn this report the explanation of organizations types and its purposes are focused indifferent sectors like public, private, voluntary and legal structures which are evaluated sincerely.The introduction of size and scope of different types of organization is also involved in variousmethods and well explained. In addition to that it includes the analyzation of interrelationshipbetween organizational functions, their advantages and disadvantages with impact upon SKODAstructure. In this report it has an identification of different macro environmental factors with itsimpact on business operations and also the positive and negative impact by PESTLE analysis. ASWOT analysis of SKODA is also conduct the internal and external analysis of organization.Finally, the strengths and weakness interrelation with external macro factors within SKODA.P1 Explain different types and purposes of organization’s; public, private and voluntary sectorsand legal structuresPUBLIC SECTORThe public sector is that in which an economical system is controlled and managed by thelocal government or national and state provincial. Public sectors work for the services not for theprofit or earnings. The funding of public sectors is managed by a different kind of methodswhich are raising the tax rates, petrol prices and fees. Governments are different for all thecountries and they have their own methods and services to provide. For example, in UK thelottery corporation is an organization which is owned by the head operator and still have abilityto act like a public organization (Drucker, 2017). The lottery corporation generates 1.17 billiondollars that it is able to invest back in its organization. Sometimes the public sectors merged withthe private sector and its called public private partnership. These organization work together forproviding best services for the business ventures or communities. Examples of public sectorsinclude education, electricity, fire services, gas and oil, healthcare, police, law, infrastructure andsocial services and much more.
PRIVATE SECTORThe private sector is a part of economic system of a country which is operated andmanage by any individual or company. There is no role of government in this and private sectorsworks for making profit and earnings. The private sector is freer from the public sectors thatgovernment impose a few restrictions on it. An organization starts its business in any sector andmay move to the other sector like turning a public organization into a private is calledprivatization. At the other end if a private organization turns into a public sector is called asnationalization, municipalization or it depends on the involvement of government. Examples ofprivate organizations includes partnerships (legal, accounting), large multinationals (apple,Disney, tesla), trade unions (American postal employee union), sole proprietors (developers,plumbers, repairmen, designers).VOLUNTARY SECTORThe voluntary sectors are those who have no policies of making profit or earnings theyjust work to provide benefits and services to the people who are not able to earn them or acceptthem in term of money issues or any other (Carroll, and Buchholtz, 2014). It collects money frompeople to help people in many ways that means organization invests itself to run the business.The purpose of voluntary sector is to create social wealth rather than managing material wealth.Examples of voluntary sectors includes charities, foundations, community groups, social welfareorganizations and recreational sports.LEGAL STRUCTUREBusiness structures has different ways legally. The best structure for a business dependson its decisions which made for choosing the best one. The help of solicitor, accounted orfinancial adviser can make an effective business structure for SKODA to avoid the legal, tax andfinancial issues. Each business structure has its own requirements which need to be fulfill.Examples of business structures includes sole proprietorship, general and limited partnership,business trusts and professional corporations.P2 Explain the size and scope of a range of different types of organizations.There are five types of organizations generally such as private, public, government,cooperatives and charities and NGOs. Generally, the organizations have their own legalizationand scopes to their own rights. The properties and the assets of the company generally owned bythe company not its employees or members. On the other side the assets of individual employeeor a member is not for the organization use. The liability of a member is sometimes limited. Thelimited companies are run by two or more than two members. The private companies shouldhave a one shareholder of their own company but company can offer any amount of share to themarket shareholders or purchasers. The public limited company maintain their rules andlegalization according to their businesses (Prajogo, 2016). The scope of any company depends onthe products of the company. In example the coco cola company supply soft drinks but it alsofocusses on fruit juice, coffee, tea, sports drinks to explore its business with the help of sectors.t
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