Business Environments: Macro and Micro Factors for Business Operations

This report provides a detailed comparative analysis of two distinct business entities: Primark, a profit-oriented company, and Action on Rights for Children (ARCH), a non-profit organization. The report commences with an introduction to the concept of business environments, differentiating between macro and micro factors and their impact on business operations. It then categorizes different types of organizations, including sole traders, private companies, public companies, and charitable organizations, setting the stage for the subsequent case studies. The report delves into the background, products, services, size, scope, mission, vision, and business objectives of both Primark and ARCH. It highlights Primark's global presence, low-cost business model, and its suppliers, while contrasting it with ARCH's mission to protect children's rights and welfare. Furthermore, the report explores the functions of organizational structures, including functional, divisional, and matrix structures, and their relevance. The report examines the macro-environmental factors influencing Primark, such as political, legal, economic, and environmental factors. The analysis provides a comprehensive understanding of how these factors shape the strategic decisions and operational environments of both organizations, offering valuable insights into the dynamics of profit and non-profit business models.

Introduction
The main motive of this assignment is to discuss the types of business environments in which
the operations of business are developed. The environments are called macro and micro
environments of business. In macro environment, the business is considered with the factors of
outer environment as the factors to technology, social values, economy, political, legal and
environmental factors. In macro factors, they are related to the internal situation of business
that is closely related to the business as the micro elements can be competitors, dealers,
stakeholders and shareholder of the company. An assessment has been done in this assignment
between a nonprofit and profit oriented company.
P1 Different types of organizations
The businesses are developed to get certain objetives. The businees can be different by their
nature and size and the types of busineeses can effect the overall situation of profitalbity if the
businesses are profit oriented. The following are the companies and busiess types that can be
discussed on follwing lines.
Sole Trader
In sole trader company the business and operations are managed by one person as he is the
only owner of the company. He is responsible for all the assets and liabilities of the company.
The tax values, management of records, preparations of the accounts are not imposed on the
owner of sole trading business. The companies of sole trading business are easy to establish
and they are also managed easily as the size of business is not that huge and the investments
are also reasonable in this type of business. (Completeformations n.d.).
Private company
The small groups of owners operate the private company and it is owned on private terms by
non government companies. The main motive of these companies is make marketing plans,
competitive strategies and the policies of company. The policies of these companies don’t

allow them to reveal their private data in public due to the restrictions of the policies and ways
suggest by the management of the company. The financial values are kept on secret terms with
private records.
Public Company
The owners of the companies are the operations of the company as public company side are
different. The operations are done on the other side and the investments are made by the
shareholders of the company are made with legal values. These companies have been
registered in stock exchange and they come into the business of trade on free values. The aim
of these companies is to give values to their shareholders and the get the profits of business
with capital invested by the shareholders.
Charitable Organization:
These companies are developed to do the work of charity and the groups of people come
together for a cause to work for the betterment of society. The purpose of these companies can
come in this way that they can arrange facilities of education, shelter, religious work and their
main aim is to work for humanity. The motive of these companies is to remove the values of
poverty and also they secure the standards of religions.
P2 Background details; the products and services; the size and scope; their vision, mission and
business objectives
Primark
The company Primark was developed in the year 1969 as Penny’s in the country Ireland. It is the
subsidiary company of the group of British Foods (ABF). It has been observed in the year 2000
that there are over 100 stores of Primark are in UK and Ireland. The company gained more
stores as to see the findings of the year 2012 that company has developed more stores as 238
in United Kingdom, Ireland and EU. The company is popular for its products of with innovative
features and modernism.

The company Primark doesn’t make its products by its own. They get the products from outer
sources as the other companies make products for Primark and the main focus of the company
is to seek the demands and needs of the customers and then after getting the values of the
customers, the company make orders of the products are per the demands of the clients. The
company deals with the values of right products for the perfect price on right place. The
company gets profits from its sales. The costs of the products are low and it helps the company
to get more customers and more revenues with sales. The distribution values of the company
are effective and they help to keep the prices of low values.
The company’s suppliers are from Europe and Asia that supplied products to the company
Primark. The main sources of the supplier companies are from the countries Turkey, China,
India and Bangladesh. The job ways have been opened in these nations with the values of
productions for Primark.
Mission of Primark:
The mission of Primark is clear as the company has a mission to give better quality and lavish
products to the common people at lower prices.
Vision:
The vision of Primark Company is to get more and more places in the hearts of people to be the
best in business by getting number one slot in business and to give the perfect working
environment to its employees by giving them better working atmosphere.
Goals and objectives
To give quality products to the customers at low price. To introduce quality products in market.
To make innovations in products on continuous basis. To be the first choice of the clients. To be
a leader of market. To be a company that will stay for longer in business. To have edge over the
competitors.

Primark makes plans to be on the top of the business and to give the life to their plans, the
company works hard as Primark wants to be a leader of business market. The main rivals of
Primark are Zara, H&M and Pantaloons. (Alexis, 2012, p.67).
Action on Rights for Children (ARCH)
ARCH is the company that was developed in the year 2001 and it is company which is based on
internet and the main working of the company is to complete its objective to work for the
betterment of the children. This company is made with the help of lawyers, academies, groups
of families, state liberties of chidden with the help of government policies. The mission of the
company is to get the sure values that the children are in safe hands, they are healthy, they are
getting good education and they are having good moral values with their lives plus they are
growing well with the guidance of the families and communities.
ARCH is a company that has been developed on national basis to work for the betterment of the
children and it is backed by federal state. The company deals with the values of care for the
children to be a powerful voice for them. This company deals with the helping values for the
children of UK. It has its focus on the values of needy children like poor, disable and the children
who are discriminated due to their color and nationality. This company also deals with the
children whose families are broken or who are alone in the society. (Folger, 2017).

P3 Functions of Organizational Structure
The structure or design of a company is important as it gives the values to the designations and
operations in a company. The function of a company are arranged in set of values that give
each function of company a disinvite value the operations of a company are developed in
systematic way with proper functions in effective design of company. There are different
structures of company that can be defined as under.
Functional Organizational Structure:
In this structure, the departments of the company are managed in better system and all the
values of their working are assigned in them. There are functions of marketing. HR. sales, IT and
production. The more functions are be described in this way with the needs of the company.
The functions of a company have their operations in their departments and they keep the
working as it has been assigned to them. A. & Bánociová, and A. 2014.
With these functions in a company, the workers are very well connected and they share the
information regarding work so the more refined and proper work can be seen in all the
departments with these functions.

Divisional Organizational Structure:
In this structure as its name shows, the divisions are made. One product of the company is
selected for each selected division. All the working and management of each division is
different from others and there is no share of information develops here as every division does
its own work for the products and each division has its staff. There can be different products of
the company and each product can have its own values of staff and production. This design is
run by the companies when they have different products and they cannot handle the work of
all the products in same time. The issue with this structure is that as the staff of each portion is
different than other and the management is not the same. The problem can be arrived as the
management of each portion can hire the workers of their own choice and they also can give
favors and incentives to the employees of their own will.
Matrix Structure:
This is the best example of structure of a company as it is the amalgamation of functional
structure and divisional structure. The matrix structure is mostly used by the companies as the
all the products of a company comes at one point and one management deals with them on a
wider scale. The benefits of the structure is that the company won’t have to pay more amounts

to settle the management for each products as all the operations can be managed at one place.
So most of the companies go with the ways of matrix structure.
All the structures are there for the companies and they have their merits and demerits. It is all
about the top management of the companies that which structure they can adopt to see the
situation of company with its objectives and nature. (Moldoveanu & Dobrin, 2012).
P4 Macro environmental factors
The company Primark has its major share in the business values of UK as it is the famous
company in terms of fashion, innovations and low price for the common people. The factors of
macro side can be in favor of the company and they can also go somewhere against when they
can be changed on outer values. The macro factors deals with the external environment of
society that deals with the values of business in different ways. The factors of macro
environment for Primark can be discussed on following notes.
Political and legal factors: The laws of the state can be changed for business of the companies
or the taxes can have their impacts on the business values as the change in government can
create changes in the policies of state for the business of the companies. In UK, it has been seen
most of time that government gives the facilities to the companies to run their businesses in
effective way. The changes in taxes can create some issues for the companies and the legal
terms somewhere can affect the business of the company.
Economic Factors: The people can change their ways of shopping when the economic changes
are happened. As in the time of economic recession, the people can buy less products of the
company as they can have the trends to save money. The rate of interests can also create the
problems for the company. When there is a situation of unemployment in the country then
people will think about their jobs rather than buying the products. With good jobs, people can
earn money and then they can spend it on buying. Thanks to the price factor of Primark that
they have managed their prices in proper way and people can afford them easily.

Environmental Factors: The trends of the people have been developed to use eco friendly
products as this thing has been developed over the years that people go to buy the products
that are friendly to the nature and they have no side effects plus they are reusable or easily
disposable. For Primark the ways are open to deal with the needs of people on environmental
ways that they can make more products with the use of cotton so that the eco friendly
measures can be adopted to avoid the use of artificial materials.
Technological Factors: e business: The technology has been seen on growing values as it has
been developed on wider side in UK. Primark didn’t lose the chance and they have involved
technology in their business as they have made their marketing ways on social media as
internet and social media is widely used these days. The business of Primark is developed on e-
business side as well. The customers give online orders and get the products of Primark with
effective and easy use of online shopping. (Andrejovská, A. & Bánociová, A. 2014).
Social and cultural forces: As to see the values of social and cultural forces, the people in United
Kingdom have been on getting older on huge values so this can be the threat of Primark as the
company deals with the products for young people like the ranges from 15 years to 34 years.
This situation is a threat but it can be an opportunity for the company as Primark can introduce
the products ranges for old people as well. This segment of the company can be developed with
proper understanding and design.
Pestle analysis can be used to see the situation of Primark on external values of the business
environment so the situation of the company can be checked in the terms of external business
environment. (Kaliba, 2011).
P5 Internal and external analysis
When the situation of internal ways has to been for the business situation of a company then
the strengths of a company can be checked in internal environment and the weaknesses of the

company also comes in internal values of the company. To see the external environment of the
company, the threats are checked and the opportunities of the company are also assessed that
what ways are open for the company that can be used to overcome the threats.
As to see the situation of Primark, the strengths and weaknesses of the company can be
discussed on following lines.
Strengths: The Company is enjoying its big share in business market of UK. Primark is offering
their products on low process so the people buy the products of Primark in huge trends as the
prices are reasonable and the common people are targeted by the company so they are being
strength on overall scenario. Primark care for their labor and the management of Primark gives
value to the employees and give them incentives and rewards. (Pandey, A. 2013)
Weaknesses: The main issue with the company is that they have poor customer service. The
employees in customer service don’t deal with the customers on positive notes as the
customers have to wait to get their issues resolved. When the customers make orders then
they have to wait for long to get their packages. So it has been observed that the customer
service of the company is slow and less efficient.
P6 Key strengths and weaknesses along with the interrelationships with the external macro
factors
The changes for the external side of the company that cannot be controlled by the company are
called macro factors of environment. The internal environment deals with the factors that can
be controlled by the company. Both the factors are important for Primark to see the strengths
and weaknesses of the company. The outer factors deals with the overall situation of
environment and they have impacts on the decision making process for the company.
(Viswanathan, et. al., 2014).
The macro factors have an overall impact on wider scale as they deal with the values of society
on larger scale with different aspects. (Gupta, J.L. 2013).