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Impact of Macro Environmental Factors on Decision Making Process of Organisation

   

Added on  2020-12-18

14 Pages4499 Words393 Views
Business Development
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Businesses and businessenvironment
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Table of ContentsINTRODUCTION...........................................................................................................................1Different types, size and scope of organisation......................................................................2Interrelationship of different functions within company and their relations to organisationalstructure..................................................................................................................................3PESTLE analysis to identify the various macro environmental factors and impact onorganisation............................................................................................................................5SWOT analysis of Toyota......................................................................................................7Impact of micro and macro factors on decision making process of organisation..................8CONCLUSION ...............................................................................................................................9REFERENCES..............................................................................................................................10
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INTRODUCTIONAn organisation is the place and all the activities where goods and services that areexchanged for one to another in order to earn money. Business environment includes the externaland internal factors that impact on an operating situation of company. Internal factors include allthose conditions, entities and all the factors within the organisation which influence its activities(Barik, B. and Kumar, S., 2018). Toyota is a multinational auto manufacturer, public company.There are about 369,124 employees work in that company. Its products are auto mobile, luxuryvehicles, commercial vehicles and engines. This study shows the types of organisations and theinterrelationship between of the various fictions within the organisation. The functions likefinancial functions, research and development functions how they impact on differentorganisational structure like financial structure, matrix structure and divisional structure. It alsoshows the positive and negative impact of macro environment on business operations. Thisreport shows SWOT analysis of Toyota by which the company remains strong in the globalautomotive market. 1Illustration 1: Toyota(Source: Toyota:Car manufacturer, 2016)
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Different types, size and scope of organisationAn organisation is the association of the person who work for achieving certainobjectives. Organisation refers a structure that is made up the of group of people that have thesame purpose and work for it. There are mainly three types of organisation such as Sole proprietor, partnership andcorporation. According to size they are classified as small businesses, medium size business andlarge size business organisation.Sole proprietorship- Sole trader is a type of organisation which is a small businesshaving one owner. They produce one type of product and has unlimited liability for any claim.These business serve a community but they are restricted and prohibited to local boundariesbecause of their size. The purpose of sole traders is to survive and being in the competition byearning money. For example: Hair dresses, plumber etc.Partnership- It is also a type of organisation that is larger than sole proprietorship. Allpartners posses similar unlimited liabilities as a sole proprietor. Because of different owners, itcan produce many types of goods and services but it is also prohibited to set a location becauseof its size. An example the of partnership firm is John Lewis partnership, UK company.Corporation- It is the third type of organisation. This type of organisation is much largerthan sole proprietor and partnership. Because of the ability of transfer and stock ownership it canpossess unlimited owners. These type of owner do not have liability regards any claims againstthe business.According to size and scope there are three types of organisation which are small,medium and large.Small size businesses- A business that is owned and run by a few numbers of people orwhich are privately owned companies, sole proprietorship and partnership. There are generallyfewer than 100 employees work. Employees more than ½ all private sector employees work.Medium size businesses- A business with 100-999 employees are called medium sizeorganisation. This type of businesses are well established and track record in that help them infinancing decisions by investors.Private sector- Private sector businesses are those whose control and maintenance arenot in the hands of government. In other words those businesses which is run and owned byprivate owners. Sole trader which is covered into the private sector. Partnership is also covered2
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