Positive and Negative Impact of Macro Environmental Factors on Business Operations of WALMART

Business Environment

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types and purposes of organisations; public, private and voluntary sectors and
legal..............................................................................................................................................1
Structures.....................................................................................................................................1
P2 Size and Scope of a range of different types of organisations...............................................2
TASK 2............................................................................................................................................4
P3 The relationship between different organisational functions and their linkages to................4
Organisational objectives and structure.......................................................................................4
TASK 3............................................................................................................................................5
P4 Positive and Negative Impact of various macro environmental factors on the......................5
Business operations of WALMART...........................................................................................5
TASK 4............................................................................................................................................8
P5 Internal and external analysis of WALMART in order to identify strengths and weaknesses
.....................................................................................................................................................8
P6 Strengths and Weaknesses interrelationship with external macro factors..............................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment is a very crucial aspect of any business and organisation around
the world. A business environment consists of internal environment as well as external. But both
of these environments a dynamic in nature and therefore continues evaluation of both shut
Dayton in and if active and officiant, so that the business can we efficiently run and the various
factors that are within these environments and influence of those on business activities of the
company can be ascertained. WALMART is an American multinational retail store which has its
retail outlets in different parts of the world. It was founded in 1962 and now has covered 28
countries (Beaty and Naik, International Business Machines Corp, 2015). It is earning maximum
revenues and is a part of private sector. The following report will talk about tools to analyse the
various factors of the environments, these include PESTLE analysis for external environment
and SWOT analysis for internal environment.
TASK 1
P1 Different types and purposes of organisations; public, private and voluntary sectors and legal
Structures.
There are different types of organisations. These types are defined on the basis of their
structure and also on the basis of their purposes. The role of people within these organisation
changes based on the structure of the organisation for e.g., a role of manager would not be that
much in a corporate structure but the same manager will play a vital role in the working of a sole
proprietorship. The different types of organisations and their purposes are discussed below:
 Sole Proprietorships: These are those organisations which are owned and operated by a
private individual with no sharing of profit and resources of the company. This kind of
structure is suitable for those individuals who do have enough money to spend and also
does not want to take much risk (Bobek, Rohadia and Sternad, 2016). The growth of such
companies is also restricted as the resources are not quite high enough to compete with
big companies. The main purpose behind this type of organisation is to supplement
family income or to manage the family through income of the business, as the income is
not that large from such kind of business that it can be applied in the business again to
grow and prosper, especially when there is other commitments of an individual also.
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 Partnership Organisations: A partnership is a mutual agreement between two people to
come together and do business; it is usually created for the purpose of making profits and
increasing the overall growth of business. The liability of a partnership is usually
unlimited and therefore partner’s personal assets can be put to stake if a partnership goes
bankrupt or unable to pay its dues. The purpose of such kind of partnership is to expand
the resources by coming together and also share knowledge and expertise of each other to
make business grow over period of time. The ultimate aim is to supplement family
income and earn enough to put back in the organisation make it grow.
 Limited organisation or company: Under this type of organisation, the liability of the
owners is restricted to the face value of shares held and they cannot be forced to sell their
personal assets in case of default of the company to pay its dues. WALMART comes
under this type of organisation. A limited company has the scope to grow large as it can
manage a large number of resources. There is a divorce between owners and management
and Board of directors of the company own proper management of company in an
effective as well as efficient way. The main purpose of this kind of organisation is to
grow business and increase the overall profitability of the company at the same time
ensuring that customer satisfaction is achieved and a value creation to the society has
been done effectively. It is managed and owned by a number of individuals and therefore,
the objective of the company is quite wide and narrowed like other organisations such as
partnerships and sole trading.
P2 Size and Scope of a range of different types of organisations.
The size and scope of two business organisations will be discussed in this section in
detail. The first company that is taken is WALMART, which is a fairly large company and the
other company that has been taken for the purpose of comparison is Zaffirson Food (Ferraro,
International Business Machines Corp, 2013).
The measure of WALMART is worked with in excess of representatives. Alongside that,
Walmart has 11,718 stores and clubs in 28 countries. The scope of their work is to serve broadly
and in addition global clients with their diverse business fragments like Grocery, sugar, fixings,
retail. The extent of Zaffirson sustenance is worked with just ten representatives. Their income is
£17000, and their working pay is £950. Their extent of work is to serve distinctive sort of
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