Report on Effect of Macro Environmental Factors of Business

Business environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types of organisations and their purposes with example........................................3
P2 size and scope of different type of organisation....................................................................5
P3 Organisational functions on the basis of organisational structures and link them with
organisational objectives of Nestle.............................................................................................8
TASK 2..........................................................................................................................................10
P4 PESEL analysis of Nestle....................................................................................................10
P5 SWOT analysis of Nestle.....................................................................................................13
P6 interrelate the SWOT and PESTEL analysis.......................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Business is regular profession of a person which help them to earn money. Business
environment is the environment of business which includes the external and internal factors that
affect companies’ operations, employees, management, customers, management and business
regulations. In this report, effect of macro environmental factors of business have been
discussed. Also, we discuss about different purposes and size and scope of private organisation,
public organisation and voluntary organisation. Nestle is a private organisation in which we
determined that the organisational functions and link these functions with organisational
objectives. PESTEL and SWOT analysis of Nestle company is done..
TASK 1
P1 Different types of organisations and their purposes with example
Organisation is a group of persons who join together to achieve the organisational goals.
The organisation includes the employees, management, customers etc.
Private sector organisation: The private sector organisations are those which are formed by
persons with a main objective to earn profits. These organisations owned and controlled by
private individual. Examples of private sector organisation in united kingdom is Nestle UK Ltd
which produces food products and beverages. Nestle aim to provide the good quality food with
good tastes. They provide wide varieties of choices to their customers.
Types of private organisations: Sole proprietorship firm: it is the simplest business organisation in which one person can
start business. It is not a legal entity and owned by an individual who is responsible to
pay off all the debts. Partnership firm: it is a firm which can be formed by 2 or more partners who are agreed
to share profits and losses of the firm which is carried by all or by any one of them who is
acting for all.
 Private companies: Private companies are those in which the government do not hold
more than 51 % share of companies. The legal requirement of these companies is very
less.

Purposes of private firms:
 Profit earnings.
 Increasing market share.
 Growth.
 Maximises sales.
Public sector organisation: The public companies are owned and operated by government and
government institutions. This organisation work with main motive to provide their services to
public. These organisations are funded by national and local government. Example of public
sector organisation in United Kingdom is Tate and Lyle which is a food processing company.
Tate and Lyle is very popular for their innovative techniques which converted the raw material
like corn, oats and tapioca into ingredients. Their ingredients have good taste, texture, are very
nutritious.
Types of public organisation:
 Regional development organisation: These are the organisations work for the
employment and wealth generation in the regions and also work to reduce the regional
disputes.
 Public corporations and companies: They invite public to purchase their share and 51%
of shares are hold by the government.
Purposes of public sector firms:
 To provide services to public.
 Optimum utilisation of environmental resources.
 Use the funds only for benefits of society.
Voluntary organisations: The voluntary business organisation do not work for earning profits.
They are funded mainly by the members of organisation, entrance fees, fund raising and
donations by government and individuals or companies. The main aim of these organisations is
to achieve that objective for which the organisation is prepared. These are prepared to promote
some cause like prepared for charities, or trusts. The staff of this organisation includes the paid