Business Environment: Types of Organization, Organizational Structure, and Macro and Micro Environmental Factors

Business Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
PART 1- Essay.................................................................................................................................3
Different types of organization....................................................................................................3
Difference between different types of organization based on size and scope.............................4
Organizational structure and functions........................................................................................5
Complexity of organizational structures......................................................................................6
Interrelationship of different organizational functional areas......................................................7
PART 2 – REPORT.........................................................................................................................8
Critical evaluation of macro and micro environmental factors on business decision making.....8
Interrelation of strength and weaknesses with macro factors....................................................11
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment is the collection of internal and external factors which includes
customers, suppliers, owners government, economic, political factors etc. For example, health
and safety which is and external factor that influence the internal environment. In this report
Tesco is taken as an organization. It is a British multinational retailer, headquartered in
England,UK. It provides diversified products such as books, clothing, electronics, home products
etc. This report covers the different types of organization and comparative analysis based on the
size and scope. The interrelationship of different functions in an organization and their link to
organizational structure. It also includes positive and negative impact of macro and micro
environmental analysis. Also, it includes interrelation of strength and weaknesses with the macro
environmental factors.
PART 1- Essay
Different types of organization
Organisations can be described as groups or structures set up with the purpose of
achieving certain goals or objectives (Hamilton and Webster, 2018). There are different types of
organization and a detailed analysis of the same is done below.
Basis of comparison Profit Organization Non- profit
organization
Non- governmental
organization
Meaning It refers to the
organization which has
been set up with the
core objective of
generating profits
(Clampitt and Dekoch,
2017). Such
organizations
generally operates in
the private sector.
These are the
organizations which
are established with
purpose other than
profit making (Worth,
2018).
These are the
organizations that are
operated
independently by the
government even
though they still
receive funding.
Objective The objective is to
generate profits.
Their primary
objective is to work
The purpose is to
achieve social or

for public benefit
(Zhu, Wang and Bart,
2016).
political goals.
Legal structure and
purpose
They are subject to
financial and legal
framework set by
relevant authorities.
For example: Tesco is
a private retail
company in UK and is
owned by the
shareholders who fund
the company. Its
purpose is to provide
high quality provides
to its customers with
the aim of increasing
profits.
These are the
voluntary association
and governed by the
NPO laws. For
example British heart
foundation which is an
NPO in UK, It is a
registered charity in
England. The purpose
is to reduce the fear of
heart and circulatory
disease.
These are formed
voluntarily and usually
have a document
setting out their
mission and objective
(Walker, 2019). For
example: The Aegis
Trust UK, which is an
independent group
formed to fight
genocide.
Difference between different types of organization based on size and scope
Basis of
comparison
Micro
Organization
Small
organization
Medium
Organization
Large
organization
Meaning Micro
organization
refers to a
business in which
number of
employees are
fewer than 10 and
either their
Small
organization are
those in which
number of
employees are
less than 50 and
either their
turnover is up to
Organizations in
which number of
employees are
less than 250 and
either their
turnover is up to
€50 million or
total balance
The large
enterprises in UK
needs to fulfil at
least one of the
two conditions,
that is, having at
least 5000
employees or