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Impact of macro factors on business environment

   

Added on  2021-01-01

18 Pages5504 Words278 Views
BUSINESS ENVIRONMENT

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1LO 1.................................................................................................................................................1P1. Types of organization............................................................................................................2P2 scope and size of different organisations ...............................................................................3LO 2.................................................................................................................................................5P3- different type of organizational function and interrelationship.............................................5LO 4.................................................................................................................................................7P4 Impact of macro factors on environment ...............................................................................7Impact of macro factor - .................................................................................................................7LO 4...............................................................................................................................................10P5 SWOT of BBC......................................................................................................................10P6 Interrelation of strength and weakness with macro factors..................................................11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13

INTRODUCTIONBusiness environment is intangible atmosphere for an organisation consist external andinternal factor. An organisation has direct and indirect affect of these factor upon decisionmaking power and process of the organisation. This report explaining type of organisation andfactor which affect that particular organisation. It specially focuses on public sector organisationBBC. This report also contain SWOT and PESTEL analysis to identify factor affecting BBC andstrategies used by BBC to deal with business environment by making balance between itsstrength and weakness. Different organisation have different functional so an effort is made toknow the policy of different functional unit to achieve the organisation vision and mission.LO 1P1. Types of organizationPublic organization-Public sector organization are governed by the government of the contrary or the state.These organizations get their fund from tax and fee collected by the governments. Publicorganizations are works for providing essential product and service to the people of the countryfor example – public transportation, electricity, postal services, gas and oil, healthcare etc.Purpose of public sector organization is insured supply of essentials to the public at low cost,Infuse employment opportunities, infrastructure development in underdeveloped areas of thecountries and basic service to weaker section of the society. For example BBC is working aspublic firm (Bah and Fang, 2015).The main advantage of being public firm is that it gets fundsfrom government and board members are not responsible for the liability of company. On otherhand it is fully government by governed thus, lack poor focus over generating profit. It easilygets franchise in other location.Private sector –private sector companies are operated by the private person or group of persons.it has main objective of profit maximization. Government has no control on the functional part ofthese entities but government regulates its legal structure. Type of Private sector organization areindividual proprietors, joint ventures, partnership ,NGO etc. private sector mainly gives servicein hospitality services, financial services, I.T services, production of luxurious items. Mainobjective of private sector organization is to earn profit to further growth and expansion.Another objective is to choose organizational structure as per its need .it also aim for maintain1

privacy of financial reports, market plan, strategic decision. It shares all the information to itsstakeholders only (Botha, Kourie and Snyman, 2014). The main advantage for business is that itcan expand into other location without looking at government intervention. It can chosen ownstrategy for expansion such as joint venture etc. But board of members are responsible forliability of company.Sole proprietorship, partnership, limited liability partnership( LLP) are the common legalstructure followed by private organisation.Sole proprietorshipIn Sole proprietorship individuals start its own business as self employment. They don'trequired to register their business as company under company act. But they need to pay tax ontheir earning. And, for this they required HMRC number for self assismenet.Partnership: In partnership framework, two and more than two people come together for samebusiness purpose. Members has to pay tax on their profit earning and partners also responsible topay liability obligations too. But company (separate legal entity) is not liable to pay corporatetax.Limited liability partnership :There is only one and significance difference between ordinary partnership and LLP, thatin LLP member are not legally bound to pay debts and liberalities personally. Voluntary sector organization- these organizations have faith to work for society. Theseorganizations use its earning for social benefits or to make adequate arrangements toorganization itself. Type of voluntary organizations are environment safety groups , freeeducation, health awareness, advocacy groups, foundations, community groups, charitable trustworks etc. these are non profits as well as nongovernmental in nature. Main objective of thesesectors are work for social accomplishment and welfare of the weaker section of the economy.Paid and unpaid voluntaries both work in it for social cause (Cai and Yang, 2014). Its mainadvantage is that it can fund from big organisation thus, it needs not to think much about fundsand expenses. But it is difficult to gather volunteers and expand operations. Legal structure of public sector organization-Legal structure for BBC-2

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