Business Environment: Understanding Organizations and Macro Factors

Business and the Business
Environment
5/12/2018

Table of Contents
Introduction.....................................................................................................................................3
Task 1.............................................................................................................................................4
LO1: Explain the different types, size and scope of organizations.....................................................4
P1: Different types of organizations............................................................................................4
P2: Size and scope of the organizations.......................................................................................6
Task 2.............................................................................................................................................8
LO2: Demonstrate the interrelationship of the various functions within an organization and how they
link to organizational structure.......................................................................................................8
Task 3...........................................................................................................................................10
L03: Use contemporary examples to demonstrate both the positive and negative influence/impact the
macro environment has on business operations..............................................................................10
P4: Using PESTEL model, identify the positive and negative impacts the macro environment has
upon the UK retail sector.........................................................................................................10
Task 4...........................................................................................................................................12
LO4: Determine the internal strengths and weaknesses of specific businesses and explain their
interrelationship with external macro factors.................................................................................12
P5: Conduct internal (SWOT/TOWS analysis) and external (Five forces model) analysis of a UK
Supermarket to identify its strengths and weaknesses.................................................................12
P6: Explain how strengths and weaknesses interrelate with external macro factors........................12
Conclusion....................................................................................................................................14
References.....................................................................................................................................15

Introduction
Business environment is the regarded as sum of whole outside plus interior component that
determine a commercial enterprise. It should support in cognition that extraneous component and
interior component could determine all different activity in collaboration to impact a business
organization. For illustration, a wellness and condition ordinance is an extraneous component
that determiner the interior surroundings of business organization function. In addition, several
outside factors are on the far side of the activity. These components are frequently named
extraneous restraint. Business organization might be appreciated arsenic that arranged attempt of
endeavour to demand customers with goods plus facilities for a earnings. Commercial enterprise
are divergent in size, as plumbed aside the figure of worker or otherwise by the income
production. But, each enterprise portions the aforesaid intention: is to gain profits. The intention
of enterprise goes on the far side also to gain profit. In that respect to that these are follow
aspects that businesses follow:
1. Society regards it as important institution.
2. For the supply of goods plus services it is regarded as the one.
3. Initiation of job possibility
4. Work life balance and quality of life.
5. Helps to increase GDP of a nation (Pandey, 2013).
Therefore, it's appreciated that the function of business organization is important as society is
nothing without a business. It’s necessarily no importance that business organization needs
society to be established.
Environment depicts to each outside forces, which individual is supporting and is connected in
regards to operation of the business concern. Environment component “are mostly if not wholly,
extraneous plus on the far side the powerlessness of individualistic commercial enterprise also
their administration. The business concern is for the surroundings as it positions danger towards
the firm and offers huge possibility for possible marketplace development. In this report we will
be discussing in brief related to various kinds of organization with the size and the scope of the
organization. Later in the same report we will be discussing the internal and external strength
related to the macro factors (Andrejovská & Bánociová, 2014).

Task 1
LO1: Explain the different types, size and scope of organizations
Administration could be depicted as classification system or cognition which is fixed up with the
intention of succeeding a definite goals or else objectives. The contemporary commercial
enterprise has a international characteristic and various kind of administration, each one had been
set up towards serving a unique intention also towards meeting the different requirements of the
community inside which they run. The few common path of distinguishing between
administrations is by looking at the goals and purpose (Andrejovská & Bánociová, 2014).
P1: Different types of organizations.
Based on those different types of organizations are:
For Profit Organizations
Any business organization, firm or administration which is set up with special function of
creating income could be represented by a for profit administration. These administration
normally function in the cliquish sphere, by that it is defined that the organization are purchased
by individualist or unit entities also it is not owned by state or governance body plus it is referred
towards as commercial enterprise. Nevertheless, it is not defined that the state did not have a
control over the organist whereas all the state has control over such organizations.
Not for Profit Organizations
These kind of administration stands as those company that are established for a goal different
than of fiscal increase. This administration could be distinguished from the profits administration
connected at foundation that the original causative was not towards rendering clannish profit for
business organization proprietor but instead towards activity for state-supported welfare. The
organization that spill subordinate for non-profit kind could consider foundation also social
organization.
Non-Government Organizations