Impact of Macro Environment Factors on Business Operations and Functions

This report discusses the impact of macro environment factors on the operations and functions of BBC, a public sector organisation. It covers the SWOT analysis and PESTLE analysis to identify and analyse the internal and external factors affecting the organisation.

Business Environment

Executive Summary:
Business environment is the combination of many factors that influence business
operations in a positive or negative way. It is important fort organisation that they should identify
and analyse the business environment so that they can take necessary actions accordingly. It is
important for organisation success and growth as it helps in undertaking of right decision for the
growth. There are two factors that are internal and external both are effect on companies' growth
and success. Internal factors are controllable but external factors are not controllable, companies
need to accept and take strategies accordingly. This report shows the impact of theses factors on
organisation.

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1 ...........................................................................................................................................3
Types, size and scope of organisation.........................................................................................3
Interrelation between organisational functions ..........................................................................6
TASK 2............................................................................................................................................7
Impact of macro environment factors on business operations and functions ............................7
TASK 3..........................................................................................................................................10
Globalisation affect on decision-making and organisational strategy......................................10
CONCLUSION .............................................................................................................................10
REFRENCES.................................................................................................................................12
Books and Journal.....................................................................................................................12

INTRODUCTION
Business environment is the combination of all important factors that surrounded by
firms and they are directly or indirectly affect organisation business and operations (Kurochkina,
Shuvalova and Novozhilova, 2017). It is very important for organisation that they should identify
and analyse the business environment so that they can minimise risk uncertainties. Organisation
has many types that have separate legal identity in the business world. All organisation is make
only on the basis of people that they want. There are mainly three types of organisation present
in business environment that are private, public and voluntary organisations. All these types of
organisation has different legal structures that can be understand with the help of this report. In
this context, British Broadcasting Corporation is undertaken to identify and analyse the internal
and external factors that affect their business. It is the public service broadcaster that
broadcasting news and many more entertainment activities. It started their organisation from
Westminster, London. It is the oldest broadcaster of world. This report covers size and scope of
organisation and interrelation between organisation functions. It also covers impact of macro
environment on business that help to identify the areas that needs improvement.
MAIN BODY
TASK 1
Types, size and scope of organisation
Organisation has many types that bifurcated on the basis of organisational objectives and
goals. They have their own purpose that run their business in marketplace which can be better
understand with the help of explanation of each type of organisation (Chandler, 2017). There are
mainly three kinds of organisation exist in the marketplace that can be mentioned below:
 Public sector organisation,
 Private sector organisation and
 Voluntary sector organisation.
The detail of three organisation explain in below discussion. It is necessary for everyone
that they should understand the meaning of each type of organisation.
Public sector organisations:
It includes all types of organisation that run and manage their whole operations and
functions by government. In this type of organisation, government play a significant role in their

business because government takes all necessary decisions. That means it is highly influence by
government and has great interference in organisation. They provide goods and services for the
welfare of community and society's people. They run their business only with the help of money
that raised through taxes (Héroux and Fortin, 2018). It is very important for organisation that
they should disclose all activities and functions that they perform in public sector organisation
because government is owner of the organisation. BBC is public sector organisation that provide
broadcasting services only for welfare of people.
Purpose: The main purpose of public sector organisation that they provide goods and
services to customers for welfare of society.
Legal Structure: There are three important bodies that decide legal structures of public
sector organisation. All three bodies combined their thoughts and ideas that helps to make the
legal structure of organisation. The detail explanation is given below: Central Government: Central government takes necessary steps regarding making of
legal structure of public sector organisation. They controlling and managing of public
sector organisation functions and operations such as Environment Agency, Department
for International Development, etc. These mentioned organisation are control by central
government. State Government: It decides the legal structures of organisation that comes under the
state territory. State government is also a part of central government but they make legal
structure of organisation so that they can reduce the burden of central government.
 Local Government: It covers municipal corporations, their legal structures is decide by
local government so that they can reduce the burden of both above mentioned
government. They cover local areas of society by making laws and regulations.
Size: BBC has large size of business that they run on decentralised basis because they not
only have BBC news channel, they have many more things that they perform (Barsness and et.
al., 2018). They have approximately 35400 employees that shows the size of operations and
functions of organisation.
Scope: Scope of BBC is very vast because it is the public sector organisation that can do
anything for the welfare of society. BBC provides variety of services to audience such as TV
channels, BBC radios, etc.
Private sector organisations:

It is one more type of organisation that is far away from government interferences. It
doesn't include government influences, because they has separate legal entity in which they
registered their business. Private sector organisation is very important for development of
economy because they contribute a great part in GDP rate. After introduction of privatisation in
economy, private sector is one of the important sector ta hat is necessary for the growth and
development of organisation. Private sector organisation is very important because it enhance the
competition in market. It provides better quality of products and service to consumers so that
they can satisfy their needs and wants (Davies and Doherty, 2019). It becomes important part of
economy that raise their growth by providing employment opportunities, innovation and
invention of new products, development of technology, etc. There is one example of private
sector organisation i.e. John Lewis Partnership.
Purpose: The main purpose of private sector organisation is that they provide best quality
of goods and services to people so that they can earn profits and run their business successfully.
Legal structure: Legal structure of private sector organisation depends on their types of
business that run by people. There are many type of organisation under private sector that
mentioned below: Sole Proprietorship: It is one of the type of organisation that run by a single person
which has unlimited liability and earn all profits or losses by a person. Partnership: It is another type or organisation that run by two or more person. In
partnership all profits and losses are share among partners according to their share in
capital that they introduced in starting of business or on the basis of profit sharing ratio.
 Companies: It is the types of organisation that registered their business in Companies
Act, 2013.
Size: The size of Private sector organisation is depend on the nature of business. For
example, if it is a sole proprietorship then it is very obvious that it has a small business and if
business is partnership or companies type then it depends on their employees strength.
Scope: Scope of private organisation is narrow as compared to public sector because sole
proprietorship has narrow scope.
Voluntary Organisations:
Voluntary organisation is very necessary for benefit of societies because they targeted
only those people that need help. If these type of organisation can not exist then it become

difficult of needy people that how they can get justice or necessary essential things (Kaplan,
2020). National Council for Voluntary Organisations (NCVO) is a example of voluntary
organisation.
Purpose: Objective and purpose of voluntary organisations is that they can provide goods
and services only for helping other people or those people that need help.
Legal Structure: Legal structure of voluntary organisation is categorised mainly two on
types that mentioned below: Unincorporated Association: It is those types in which organisation has common goals
i.e. welfare of society. They are not focusing on earning or maximise profits.
 Trust: Trust organisation mainly focuses on charity and donations to needy people.
Size: It depends on the area and objectives of organisation that how much they want to
cover whether they cover a city, state or at national level.
Scope: The scope of voluntary organisation is very narrow because there is less people
who want to charities and donations or anything that help to complete the needs of needed
people.
Interrelation between organisational functions
Organisation performs many types of functions and operations in their organisation so
that's why each and every function is interrelated with each other. To run a organisation
successfully, it is very important for BBC that they perform each function so nice that help to
achieve their desired target and goals effectively and efficiently. BBC is providing huge range of
services to customers so that's why it is necessary that they synchronize all functions properly
and understand the interrelationship between organisational functions (Barkemeyer and Miklian,
2019). BBC have some important functions that mentioned below:
Human Resource And Marketing: Marketing is important department of organisation
because it help to identify and analyse their competitors strategies that gives suggestions to
organisation that how they improve them. There are number of employees or journalist work in
BBC that need to be perform their services very efficiently. Marketing field needs very talented
employees so that they can analyse the market trends to identify the taste and preferences of
customers. Marketing needs potential employees that they can use their skills and knowledge to
analyse the market situations. It can only done with the help of human resources because it is
only department that recruit and select most suitable candidate. They appoint most talented

employees in the organisation so that they can perform best marketing services. Marketer
provides the trend to Human resource department that they require or not employees and human
resources provide talented marketers that helps to achieve organisational goals and objectives.
Finance and Information & Technology: It is analysed that both are interrelated with
each other. BBC is large organisation that needs a huge amount of funds so that they can acquire
new updated technologies. Finance is very important for organisation it acts like a backbone in
which organisation can purchase new technologies that really help to business development. It is
very necessary for organisation that they arrange funds when they need or when they want to
acquire information & technology. With the help of funds organisation can be purchased new up
graded techniques and tools when they need (Woerkom and Zeijl-Rozema, 2017). Finance is the
only source that helps to purchase equipments, land and machinery, etc. Whereas information &
technology helps to arrange financial accounts in systematic manner in different types of tools
and techniques. Information & technology gives many types of software for recording and
classifying financial data in separate accounts.
Production and Research & Development: Production department is one of the
department that need data of demand of consumer goods so that they can produce goods and
services according to the analyse data. Production department manufacture goods and services so
that they can provide to customers that helps to satisfy consumer wants and needs. It is very
important for production department that they procure and produce goods at right amount so that
they can not face over stock and under stock of goods. Because both conditions are not beneficial
for organisation. They identify the needs of stock with the help of Research & Development
department. It is the department that analyse the need of organisation and then take corrective
actions.
Above discussion really helpful for organisation because it gives clear interrelationship
between functions of organisation.
TASK 2
Impact of macro environment factors on business operations and functions
BBC organisation is large organisation that gets affected through many business
environmental functions that can be both internal and external factors (Aurelia and et. al.., 2018).
Organisation performs functions so that they can achieve their desired results and targets. It is

very necessary for organisation that they can identify and analyse the factors that help to reduce
the uncertainty of risk. It can be identify with the help of PESTLE and SWOT analysis.
SWOT analysis:
SWOT is very important analysis of identifying and analysing internal factors that helps
to handle them easily. It is acronym of strength, weaknesses, opportunities and threats. SWOT
analysis of BBC help to analyse the internal factors of organisation. It can be better understand
with the help of below mentioned table:
STRENGTHS WEAKNESSES
 BBC has old reputation because their
journey starts from 1922 that takes so
much efforts.
 It is the world's largest broadcaster that
have approximate 35000 employees
presently work in company.
 BBC has very high operating cost i.e.
the main weakness of organisation.
 It can be seen in the news that is has
biased views. They already face a big
debate in their organisation that they
takes only biased news.
OPPORTUNITIES THREATS
 There is one important opportunity that
help to grow their business is that they
can become trendy.
 They can be try for unbiased because
they are facing a controversy of biased
news that they can show.
 BBC is the strongest broadcaster but
their success invites new entrants and
raise competitions such as CNN
(Liedong, 2017).
 Because of many viewership on other
channels, it becomes difficult for BBC
that how they can maximise their
viewers.
PESTLE Analysis:
PESTLE is important for identifying and analysing the external factors so that BBC can
make strategies according to the situation that overcome the fear of risk. It is very important for
organisation that they analyse each factor that cover under PESTLE analysis (Tsao and Laszlo,
2019). There are six factors that cover in PESTLE analysis are economical, environmental, legal,
technological, social and political factors. The detail explanation is mentioned below:
Political Factors:

It consists all political factors such as political stability, trade tariffs, etc. It is very
important factor that should be analyse by BBC so that they can run their business successfully.
In UK, Brexit becomes one of the important issue that affect the business operations of BBC. It
becomes threat for organisation because they make possibility of risk situations. It is very
important for BBC that they develop strategies so that they can overcome with political factors.
Economical factors:
It is the factor that consist individual's disposable income and other factors. BBC has
number of employees work in their organisations that affects economic conditions of country.
Due to COVID-19 it is analysed that country face a very critical time and because of that it
declines the economic conditions of organisation (Langfield-Smith and et. al., 2017). BBC gets
affected with the downfall of growth of country that become threat of their success and growth.
It becomes hard for organisation that how they can pay their employees.
Social factors:
BBC is non trendy organisation that's why they face some issues of social factors. It is
also analysed that they show biased informations to audience and hurt sentiments of many
religions that become threat of organisation. It is very important for organisation that they use
this opportunity to become trendy so that they can overcome with the situations.
Technological factors:
It consists all upgraded and updated technologies so that they can make the problems
easy by BBC. Technological factor is opportunity for BBC that they can update their
technologies so that they can make their process easy and use them for journalism that helps to
increase their business opportunities (Bastas and Liyanage, 2019). It is very important for
business, if organisation want to run with dynamic nature of business world then they should
focus on technological development so that they can not become under obsolete categories.
Legal Factors:
It is the most important factor for organisation that they can follow all rules and
regulations related to their organisation so that they can reduce their legal issue. It is very
important to analyse for Bc because they run their business only on the basis of sentiments of
people that if they provide wrong information so they violate the laws.
Environmental Factors:

In nowadays it is become more important for organisation that they run their business
sustainable so that they can provide something revert back to society. It can only done through
with the help of providing best quality of goods and services which can not harm environment.
In case of BBC, they can provide right and correct information to audience or society so that they
can trust on them blindly. It is an opportunity for BBC.
TASK 3
Globalisation affect on decision-making and organisational strategy
Globalisation is the important concept that very organisation want to know. Every
organisation has a vision that they can run their business at a global level. So if organisation can
do this then they have to develop those strategies that increase the level of organisation.
Globalisation refers to trade on across borders (Martínez, Galván and Alam, 2017). It is very
necessary for development of country as well as organisation. Globalisation has great imp cats
on organisation and countries image because if they export more than import then definitely it
lead the global market. BBC is the large organisation that run their business from 1922 that
means they present from long period. It is not easy for every organisation because in between
years they face many ups and downs in their path. In nowadays. It become the worlds largest
broadcaster and oldest al;so that lead the market.
Globalisation influence decision making process of BBC because company provide
services to all over the world that affect each and every state. If there is any downfall in global
economy it directly or indirectly affect the organisation decision making process. Organisation
have to make more focus on their decision that which type of news the can delver that it will be
relevant or not. After pandemic situation it becomes for difficult for organisation that how they
can take decision right. It is analysed by BBC that they can take decision only with the help of
good strategies that reduce the uncertainties of risk and they can handle all the situations that
affects organisation. Organisational strategies plays a significant role in business because it helps
to reduce the difficulty level of organisation (Boone, Kurtz and Berston, 2019).
CONCLUSION
It is concluded from the above discussion that organisation has many factors that can
internal or external factors affects organisational operations. It is very important for organisation
that they can analyse all factors with the help of tools and techniques that are PESTLE and

SWOT analysis. Both are very important for identification of internal and external factors. It is
also analyse that organisation has mainly three types that have different size and scope that are
public sector, private sector and voluntary sector organisation. It is analysed that all types of
organisation plays different different role that should be consider so that they can take decision
right. Globalisation is one of the factor that should be consider if organisation wants to expand
their business more. It helps to make their business globally so that they can grow more and get
success. It affects on organisational strategies and decision making process.

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