Macro Environmental Influence.

Macro Environmental
Influence
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Explain different types of organisation and their purpose...............................................3
P2. Size and Scope of different types of organisations..........................................................5
TASK 2............................................................................................................................................7
P3. Determine the relationship between different functions of organisation and their link with
organisation's objectives and structure. .................................................................................7
TASK 3............................................................................................................................................8
P4. Positive and Negative impact of macro environment on business operations.................8
TASK 4..........................................................................................................................................10
P5. Explain internal and external analysis of organisations in order to identify strengths and
weaknesses...........................................................................................................................10
P6. Explain how strengths and weaknesses are inter-related with external factors.............12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
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INTRODUCTION
When an organization functions in an economy and a society, there are factors in its
environment on which it has no control (Birnleitner and Student, 2013). Therefore, the success of
the organization depends on it's ability to adapt to the changes in the external environment and
for that company need to closely monitor the various factors of environment. The organization
chosen for this report is Marks & Spencer. Marks and Spencer was established by Michael
Marks and Thomas Spencer in year 1886 in Leeds England. The company is one of the leading
retail brand because of its high quality, affordable prices and core British values. The report
covers following topics that are different types of organizations along with its purpose and legal
structure, their size and scope, relationship between different functions and their link with
organization's objectives and structure, impact of macro environment upon operations, internal
and external analysis to identify strengths and weaknesses, and how external factors interrelate
with strengths and weaknesses of organization.
TASK 1
P1. Explain different types of organisation and their purpose
Organisation is defined as groups or structures set up with the purpose of achieving
certain goals and objectives (Cherunilam, 2016). In this modern business world different types of
organisations are set up to serve something unique and to meet the various needs of the society.
The types of organisations are as follow-
Private Sector Organisations
The private sector organisations refers to that part of economy which is set up and run by
individuals with the profit earning motive and is not controlled by government. For example:
Marks & Spencer is an private sector organisation established by Michael Marks and Thomas
Spencer with the profit earning motive.
Purpose
The purpose of Marks & Spencer is to become sustainable and international multi-
channel retailer with motive of enhancing lives of their customers.
The types of private sector organisations in UK
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 Sole Trader- A sole trader refers to the business which is owned by one person, who rely
on their own savings and size of firm is usually small in this case.
 Partnership- Partnership refers to that type of private organisation where minimum of
two or maximum of 20 partners do business together. The terms of partnership are set out
by the deed of partnership document.
 Private limited company- Private limited companies are the one which has limited
liability and ownership is divided up into equal parts (Craig and Campbell, 2012). The
owners of the company are not personally liable for debts and have their own legal
identity.
Legal Structure
Marks & Spencer fall in the category of public limit company with the motive of
becoming largest retailer in marketplace. The shares of company are offered to general public
with the help of stock exchange and its share prices are displayed in the daily press. The
company first started as a sole trader but with the time and success it has able to become public
limited company.
Public Sector Organisations
Public sector organisations are owned and run by the government where goods and
services are provided for the benefit of the community. For example: NHS refers to National
Health Service which is a government funded medical and health care services, provided to the
people of UK.
Purpose
The purpose of the NHS is to improve the health and well-being of the UK population
and having professional staff with innovation and excellence in care.
The types of public sector organisations in UK
 Public corporations and nationalised – Public corporates and nationalised are those
type of public sector companies which functions for the interest of public and use funds
provided by the government (Gimbert, 2011).
 State Services – A state owned organisations is a public sector entity are created by a
government in order to perform commercial activities on the behalf of government.
 Local Authority Undertakings – Local authority undertakings are the undertakings
which are directly or indirectly dominated by public authorities.
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