Positive and Negative Impacts of Macro Environment on Business Operations

Business and business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
LO 1.................................................................................................................................................1
P1) Different types and purposes of organisations with their legal structures.......................1
P2) Size and scope of different types of organisations...........................................................3
LO 2.................................................................................................................................................5
P3) Interrelationship of various organisational functions......................................................5
PART B ...........................................................................................................................................7
LO 3.................................................................................................................................................7
P4) The positive and negative impacts of macro environment on business operations.........7
LO 4...............................................................................................................................................11
P5) Internal and external analysis to identify strengths and weakness ...............................11
P6) Interrelation of strengths and weaknesses with external macro factors .......................13
CONCLUSION .............................................................................................................................14
REFERENCES .............................................................................................................................16

INTRODUCTION
Business environment basically represent or indicate a sum total of all the internal and
external factors that act as force and exert significant amount of pressure and have impact on the
operations and functions of an organisation (Nikitina and Lapiņa, 2019). The main factors
included in business environment of a company are its employees, owners, suppliers, customers
desires and expectations, supply and demand, management, activities of government, political
influence, innovation and advancement in technology, social and market trends, clients, business
associates and partners, economic changes and all other related parties that have significant
influence and effect on business activities and on which the overall performance, success and
growth of a firm depends.
For this assignment and report based on business and business environment two
organisations are selected from two different sectors of economies. The first chosen company is
ASDA stores Ltd which is a privately owned organisation. Another selected organisation is BBC
which is public sector organisation. In this assignment the positive and negative influence of
macro environment is included with the help of PESTEL analysis. Apart from this, a SWOT
analysis is also there to identify the internal strengths and weakness of the organisations. At last,
an interrelation between internal strengths and weakness and factors of macro environment is
also included in this report.
PART A
LO 1
P1) Different types and purposes of organisations with their legal structures
In a country's economic framework various kinds of businesses exist who operates and
functions in the environment so as to earn profits, create employment opportunities, contribute
towards country's GDP, bring innovative products and services in the country either to earn
profits or to provide social welfare etc. Following are some types of businesses that exist in UK:
Basis For Profit (Private
sector)
Not for profit (Public sector) NGOs (Voluntary)
Purpose These organisations are
owned and operated by
These organisations are
owned by the citizens of the
These organisations are
run by a group of people
1

government with the
purpose of providing
welfare services to the
citizens without the aim
of earning profits (Al-
Mutairi, Connerton and
Dingwall, 2015).
country with the main aim of
earning profits by providing
the desired goods and
services to the customers.
who voluntarily take up
the duty of providing
welfare services and
goods to the society so
that the upliftment of
society can be done.
Example BBC ASDA Cancer Research UK
Legal
structure
There are three legal
structures of public
sector:
Central government:
They collect funds from
public of nation through
income tax.
Local government: These
collect funds from
community charges.
State government: They
collect fund from state
taxes.
BBC is a central
government run
organisation.
The legal structures of
private sectors are:
Sole traders: They are the
people who run and operate
their business in their
individual capacity like taxi
drivers, grocery store owners
etc.
Partnership: These are
operated by two or more
people based on partnership
deed in which the allocation
of profits and losses are
clearly mentioned along with
their roles.
Private limited companies:
These are the companies in
which the liabilities of all the
stakeholders are limited
either by the value of shares
or by guarantee.
The legal structure of
voluntary organisations
are :
Trust: This is not a legal
entity and the members
work based on trust
among themselves.
Unincorporated
association: These are
established to achieve a
specific task like clubs,
societies etc.
2