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Positive and Negative Impacts of Macro Environment : Assignment

   

Added on  2020-06-03

11 Pages3472 Words81 Views
BUSINESS AND THE BUSINESS ENVIRONMENT

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Different types of organisation and their legal structure...................................................1P2 Size and scope of various kind of firms............................................................................3P3 Relation between different functions of organisation regarding objectives and structure6TASK 2............................................................................................................................................7Covered in PPT.......................................................................................................................7CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8

INTRODUCTIONBusiness environment is basically composed of two words 'Business' and 'Environment'.Business means primarily the human activities such as manufacturing, buying or extraction orsales of goods and services which are performed to earn money. At the other hand, environmentrefers the aspect of surroundings. It consists of two elements like internal and external factors.Internal may involves mainly 5 M's such as management, money, machinery, material and man.And external can include several components such as demo graphical, socio cultural, political,geo-physical, government and legal. Overall, Business environment is set of situationsinstitutional, political, economical, legal or social which is not controllable and affects functionsof organisation (Auzair, 2011). It pays an effective contribution to different internal and externaland it's factors making impact on overall performance of company. This report will describestypes and purposes of firms like public, private and voluntary and various kind of size or scopein them. It also contains relationship between different functions and their link with objectives orgoals. Positive and negative impacts macro environment on business operations by conductingSWOT and PESTLE analysis in this assignment. TASK 1P1 Different types of organisation and their legal structureThere are various kind of organisations which are classified into categories such aspublic, private and voluntary and according to that their purpose are not same. Public sectorfirms are generally owned and run by government of country for benefits of people. In this case,groups have to pay taxes to government and that money should be utilised to finance most ofpublic divisions. They have main purpose to render important public services and to useresources well for welfare of community. Private division of business industry are basicallycarrying out and run by private individuals (Avramenko, 2012). There are several examples ofthis sector like franchise, companies, partnership and sole traders. They have main propose tomake profit, growing their business, improving market share and maximize sales. At last, there isvoluntary sector which are owned by any person and it will responsible for ensuring that it setstargets and budgets. It is observed that, in more instances they try to support specific types ofpeople like guide dogs for blind or no more than they in though fund raising, grants donationsand so on. 1

Public sector:- This can be described as that part of business industry which mayconsider government authorities as they have right to own and run them. It is that sector whichrefers as broad and somewhere that has a nucleus government. It has such calibre to overlap theprivate and not for organisation too. It is considered that funding collected by them is generallyfrom direct or indirect taxation too, revenue activities that plays an essential role in upliftment ofdifferent economies (Burns and Winter, 2011).For example:- National Institute and Care Excellence (NICE) which can be described ashealth care organisation to improve social welfare by maintaining standards of services. Thisfirm is working in United Kingdom which help in guidance with social service with public healthcare promotion.Purpose:- NICE have main aim to provide better information about to guide people andtake care of standard of quality to enhance health care services. This firm utilised various kind ofdata and record and work on them to improve the heath care services in that particular area.Legal structure:- There is almost fixed structure of public sector companies which isnecessary to do management in such organisations, it may consider several stages based on suchas local, regional, central religion and so on. This is generally decided by government of countryas per rules and laws. These are divided into several divisions that are given below:Local government:- It may refers that contains of administration of publi8c serviceshaving objectives to fulfil economic territory with local agencies. It separates some ofmoney or funds for the purpose of safety and security as well.State government:- This is relevant to the industries of regional level and comes undervarious rules or regulations in company. It also follow several laws of central onebecause it comes under that level (Chow and et. al., 2011). Central government:- It is defined as with institutional units and there are few roles ofgovernment that works under rules or laws of central government. It also contains bothregional and local level firms as well. Private sector:- This can be described as various firms which are carrying out and runby private persons to make more profits, growth and improve sales in market along with clientsto grab more market area as well as shares. This sector contributes to annual income of nation tomake strong economy of country so firms growth is directly proportional to economy of the2

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