Macro-Aided Business Environment

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Types and Purpose of Organisation.......................................................................................1
P2 Size and Scope of Different Organisation.............................................................................2
TASK 2............................................................................................................................................4
P3 Relationship between different organisational functions and its link with organisation
objectives ....................................................................................................................................4
TASK 3 ...........................................................................................................................................5
P4 Positive and negative impact of Macro environment on Business operations.......................5
TASK 4............................................................................................................................................7
P5 Internal and External analysis of Walmart.............................................................................7
P6 Interrelation of Strength and weakness with external Macro factors....................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment can be defined as collection of individual , firms and and many
other factors that may or my not under the control of the organisation. These factors have an
effect on profitability, growth and survival of organisation. There are so many types of
organisation which operates in different types of environment as the activities that are performed
in the companies are different (Agarwal, Grassl, and Pahl, 2012). It is considered as an effective
part of business management. It is considered as a combination of internal and external factors
that handles the operating activities of the company. The company that has been referred here is
Walmart. It is world's largest multinational retail corporation that operates as a chain of
hypermarkets , supermarkets, discount department stores etc. this report will discuss about the its
size and scope, their market structure, impact of external and internal environment factors on
business environment of Walmart and internal strengths and weaknesses of company and its
interrelationship with external macro factors.
TASK 1
P1 Types and Purpose of Organisation
Each organisation is having different types of purposes and goals that they aim to achieve
while establishing themselves in the market. There are types of firms that operates just to earn
profits by performing various functions and there are other firms too that tries to meet the
requirements of the customers by getting to know their needs and demands. Therefore, it can be
said that the intentions of all the companies are not same. There are different types of
organisations that are existing in the market namely; Private organisation, Public Organization
and Voluntary organisations. The types and purposes of business organisation are -
 Public Organisations- These types of organisation is owned and controlled by central
government as well as Local government. This is considered as a pert of economy which
provides various types of government services. This sector plays an important role in
achieving the goals and objectives of the organisations associated with it. In UK, public
sector organisations plays an indispensable role in providing employment tom large no.
of people (Aterido, Hallward-Driemeier and Pagés, 2011). Minimum no. of people to
start this company is seven and maximum is unlimited. They are having various options
to raise funds like from taxes, duties, revenues received and penalties etc. Various areas
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that are associated with this sector are Army, healthcare, agriculture, electricity etc. there
are several benefits that are given to people who are working in pubic organisations like
they are having a job security, pension facility, medical allowances etc.
 Private Organisation – It is that type of organisation that is established mainly to gain
profits from the market (Auzair, 2011). In recent years, there are various companies that
are expanding globally at a fast space. It is that type of organisation where goods and
services are distributed by individuals and it is not considered as a part if any
organisation. These types of companies are allowed to issue shares and have
shareholders but these shares are not traded in public exchanges are are not issues
through an IPO.
 Voluntary Organisation – It is a type of association or a union in which the group of
individuals enters into a agreement voluntarily to achieve a common goal or objectives.
This sector basically works for the socio economic development of the country and helps
in enhancing various types of culture, art and other activities in the society. They are also
having a legal structure as they can be in the form of a trust, limited company or an
unincorporated association. Its main purpose is to work for the betterment of the society
but is it is a profit oriented company then making money is considered as their main aim.
In UK, there are so many voluntary companies but only 1800000 is registered . This
sector also helps the other organisations by improving the factors of society. They aim to
provide good quality services and products at lowest prices so that more and more people
are able to make use of these products and services.
The difference between Profit and Not-for Profit Organisation are:-
For Profit Organisation Not-For Profit Organisation
 It is a large organisation that is
operating mainly to earn profits for its
owner.
 Its source of revenue is from sale of
goods and services.
 The financial statements that are
prepared here are income statements,
Cash flow and Balance sheet.
 It is a type of organisation which is
conducting its operations just to serve
the society.
 Its source of revenue is Donations,
subscriptions, membership fees etc.
 The financial statements prepared here
are Receipts & Payments A/c, Income
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