P4 Identify positive and negative impacts of macro environment upon operations

Business And The Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types and purposes of organisations.......................................................................1
P2 Different types and scope of organisations............................................................................4
TASK 2............................................................................................................................................5
P3 Relationship between organisational functions and link with structure and objectives........5
TASK 3............................................................................................................................................8
P4 Identify positive and negative impacts of macro environment upon operations...................8
TASK 4............................................................................................................................................9
P5 Internal and external analysis of JP Morgan..........................................................................9
P6 Interrelate external macro factors with strengths and weaknesses......................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment includes internal and external factors which directly and indirectly
influence organisation and its operations. It is essential that management design system and
implement appropriate technologies and equipments to execute business activities effectively to
achieve business goals and objectives. Companies provide variety of products and services to
satisfy and fulfil demands and requirements of people. This help executive to establish and
maintain position and reputation in market in respect to rival firms (Business Environment.
2017). Present report is based on JP Morgan which is multinational firm which provide financial
and banking services to people. It is largest and leading firm established in UK and other
countries. This assignment defines different types and purpose of organisation which have
variance size, structure and scope. There are various functions which are present in firm and
have interconnection with other department. Management of JP Morgan conduct PESTEL and
SWOT analysis which help them to have complete information about internal and external
environment. This help them to make changes in system and formulate strategies to make system
function effectively.
TASK 1
P1 Different types and purposes of organisations
In present fast development, business environment of company is upgrading at fast rate.
This help firms to have large opportunities to implement innovative and creative ideas and gain
good amount of profit from business. Public, private and voluntary are different kinds of firms
which conduct activities for enhancing conditions of country. For this, companies increases
employment opportunities, deliver products and services in market for development of society
and generate adequate revenue to sustain its position in market. These are different types of
organisation which are described below (Bryman and Bell, 2015):
Public organisation: This industry includes enterprise which are controlled and regulated
by local or central government to strengthen and enhance economy of nation. These organisation
are funded by authorities to increase job opportunities to give facility to people to generate
income for maintaining their living standards. Bank of England is public bank of UK which is
main authority regulating country's operations by issue of currency and other financial services
to other financial institutions and public.
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Purpose: Bank of England aim is to raise funds, provide money to other banks and keep
gold reserve as custody to maintain and sustain economic conditions of UK. Along this, bank is
lender of last resort and regulator of nation for which monetary policies are framed by
authorities.
Legal structure:
Local government: This tactic includes organisation which need to function in according to
policies which are formulated by state authorities. It is necessary that adequate products and
services are provided to people to fulfil their demands and needs.
State government: It is another segment which comprises firms and business operations that are
conducted by authorities for development and enhance conditions of state (Buckley and Casson,
2010) .
Central government: This structure defines organisation which are run by authorities to govern
the unitary state of country. For this, government formulate rules and regulations which state and
local authorities require to follow for betterment of nation.
Benefits: Public organisation conduct business for betterment of society by providing
them appropriate facilities that is education, health care, electricity, transportation services such
as road, rail and other things to public.
Disadvantage: Government require to have skilled staff to provide appropriate services
to people. For this, tax is only source of income for authorities which determine quality of
services that are provided and operations conducted by them.
Private organisation: This sector comprises firms which are started, managed and owned
by either individual or group of people or shareholders which invest money in business to
conduct operations and gain good amount of revenue. For this, companies deliver products and
services in market to satisfy demands and requirements of people and sustain its position in
market. Primary, secondary and tertiary are three forms in which private firms conduct business
to provide products and services to satisfy demands and needs of people (Commander and
Svejnar, 2011).
Primary sector includes agriculture business which is to provide raw material to other
firms and people. Besides this, secondary industry comprises firm which manufactures and
produces products for fulfilling demands and demands of customers. Third segment is tertiary
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