Impact of Macro Environment on Business Operations

Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART 1............................................................................................................................................3
Purpose and type of organisation................................................................................................3
Size & scope of the organisation.................................................................................................5
Organisation structure and Functions..........................................................................................6
PART 2............................................................................................................................................8
Positive and negative impacts that macro environment has on businesses operations...............8
Internal and external analysis of respective organisation.........................................................10
Interrelation of strength and weaknesses with external macro factors......................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment is defined as collection of entities, individuals and many other
factors as well that many be or not may be in the control of a company, but can impact on the
overall performance, growth as well as profit of an organisation. Business environment consist of
internal and external factors that impact both positively and negatively on business performance
and productivity level (Bruijl, 2018). It is important for an entity to focus on analysing the
factors which has influence on business activities so that improvement and strategy is developed
on time period. In the present report, Sainsbury's is taken into consideration which is a private
organisation. It is the second largest supermarket chain of UK, which was founded in the year
1869 by John James Sainsbury. The company has presence in more than 15 countries and has
1430 shops globally, which shows it has high market share and performance as well. Along with
this, National Health service is taken as a public company that was founded in year 1948. It is
mainly a public funded healthcare system that was established with a motive to provide free
health service to people. IN case of a voluntary organisation, Oxfam is chosen that was
developed with an aim to remove poverty and enhance the conditions of society. The report will
cover various types & purpose of organisations along with their legal structure. In addition to
this, there is discussion about size as well as scope of types of organisations. Further, relationship
among various organisational function and how it link to business objectives is covered.
Moreover, internal and external analysis of chosen company is describe along with their positive
and negative impact. At last, interrelation of strength & weaknesses with external factors is
elaborate in a proper manner.
PART 1
Purpose and type of organisation
Private organisation: It is any corporation, partnership, agency which main aim is to
earn profits. Sainsbry's is a private organisation which offer quality high quality grocery at
marketplace. In addition to this, it is the second largest supermarket that has more than 1430
shops globally (Damarwulan and Farida, 2018). It is analysed that the financial strength of
company is high due to which it is able to manager all its activities as well as operations in an
appropriate manner.

Purpose: The main objective of the company is to provide high quality products in
market that satisfy customer needs. In addition to this, the purpose is to attain competitive
advantage at marketplace and enhance their brand image in an effective manner. Moreover, the
higher authorities of company is expanding its market which help in attaining higher profits in an
appropriate manner.
Legal structure: Sainsbury's legal structure is based on the top level authorities such as
chief executive officer and board of directors of company. It is analysed that the company take
big decisions by considering laws and legislations so that all the activities is implemented
systematically and effective way. All the decisions within the Sainsbury's is taken by higher
authorities that is directly communicated to subordinates and staff members of company. It has
been indulge in formulation of laws and regulations in order to maintain integrity in the
organisation.
Stakeholders: It is mainly those people who are interested in an organisation and can
affected by the business activities (Fernandes, 2017). The stakeholders of Sainsbury's are
employees, customers, shareholders, government and many more. It is determine that the
behaviour of stakeholders is depend on the performance of company.
Products and services: Sainsbury's offer wide range of products from different mediums
that is online and offline which include convenience shops, hypermarkets, supermarket and so
on. It offer almost all types of groceries and also provide loan and other banking services by
Sainsbury's bank. The company also offer home delivery on time which assist in attracting large
number of people towards the brand.
Public organisation: It is a form of organisation which is fully owned and controlled by
government of a particular country. In relation to a private organisation, National Health service
is taken, which was founded in year 1948 in order to provide health service to people who cannot
afford it.
Purpose: National Health service was established with a motive to provide free health
service to poor people who did not have the capabilities to take better health service because of
insufficient money. The organisation mainly focuses on improving health conditions of people in
an appropriate manner.
Legal structure: In relation to National Health Service, their decision is made by state
and central government (Gaganis, Pasiouras and Voulgari, 2019). This taken decision are the