The Impact of Macro Environment on Business and Business Environment

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
Presenting different types and purpose of organization........................................................1
Explain the size and scope of range of different types of organization.................................2
Presenting the relationship between different organizational functions.................................4
Presenting the positive and negative impact of macro environment using PESTLE............7
Presenting SWOT analysis of TESCO and KFC................................................................10
Explaining how the strength and weaknesses interrelate with external macro factor.........13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Business environment is the total sum of external as well as internal factors that directly
affect the overall performance of business. The report main aim is to understand different
business environment factor that affect the business in negative as well as positive way. The
chosen firm for this report is TESCO which is one of the top and leading retail firm in UK who
provide all the products at reasonable rates. The present study explain different types and
purpose of organization such as private, public and voluntary sectors with their size, scope and
legal structure. Further, it also explains the relationship between different organizational
functions and how it links to organisational objectives and structure. By using SWOT and
PESTLE analyses, report helps to understand its internal and external business environment.
Further it also explains how the strength and weaknesses are interrelated with external factors.
Presenting different types and purpose of organization
In UK, there are different types of organization and their purpose are as follows:
Private organization: This type of sector is basically run by private individuals, whose
main purpose is to earn profit and this is not controlled by state. Moreover, the business in the
private sector also drive down the prices for their goods and services while competing for their
consumer's money (Jayne, 2019).
For example: KFC is American fast food restaurant who operates its unit in more than
123 countries as it have around 20000 locations at global level. The quoted firm provides
Chicken, salads, desserts, shakes etc at reasonable rates.
 Vision: To provide the best quality of products with excellent customer focused.
 Mission: To sell the good quality of products in friendly environment with the best
customer service that deliver sustainable growth in every year.
 Legal Structure: This sector is run by the Board of Directors and further they are headed
by the Chairman. The company's name must be ended with Limited and have Certificate
of Incorporation which allows the business to trade as a Private Limited.
Public Organization: This are those companies who are controlled by the government
and its main aim is to serve for the welfare of the people rather then generating high amount of
profit. Moreover, these are self- financing commercial enterprise that comes under the public
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