Macro Environmental Influence

This document discusses the macro environmental factors that influence businesses and their objectives. It covers the size of organizations in terms of number of employees, turnover, and asset value. It also includes PESTLE analysis for two firms (TESCO and Walmart), SWOT analysis for TESCO, and the application of external factors to strengths and weaknesses. Additionally, it explains how the structure, scope, and size of a firm reflect its objectives, as well as the complexities of different structures and sectors and their impact on objectives.

Macro Environmental
Influence

Table of Contents
MAINBODY....................................................................................................................................3
P2: You need to explain the size in terms of number of employees, turnover and asset value 3
P4: You need to do PESTLE analysis for two firms ..................................................................3
P5: You need to do SWOT analysis for two firms .....................................................................4
P6: You need to apply external factors to the strengths and weaknesses ..................................4
M1: You need to explain how the structure, scope and size reflects on objectives of a firm ....5
D1: You need to explain the complexities of different structures and in different sectors and
their impact on objectives...........................................................................................................5
REFERANCES................................................................................................................................6

MAINBODY
P2: You need to explain the size in terms of number of employees, turnover and asset value
Modern business environment is mainly based on different sizes of organisation with having
their own scope like Micro, small, medium and large business groups.
Micro size business organisations have low capital equity with a maximum of 50 to 100
employees in their workforces to carry out the business operations. The annual turnover of these
micro size companies is between 20 lakhs to 50 lakhs. The role of micro size business in the
economy is revision of basic necessities that provide them with integral part of the whole
economic system. The asset value of the micro size company may differ as there are some micro
size company with asset value of more than 30 lakhs and there are some micro size industry with
asset value of 10 lakhs (Varma, Delahunt and van der Kwast., 2019).
Small and Medium Size Enterprises usually contains employees between 300 to 500 in
number. The small and medium size enterprises are having an annual turnover between 50 lakhs
to 1cr. The asset values of these small and medium sized industry may also differ as many of
them are developing themselves to become a large size industry and they will be having asset
value of more than 50 lakhs and there are also some of the small and medium size industry who
are not developing themselves and they are having the asset value of less than 35 lakhs
Business with large interface usually have more than 2000 employees with greater capital equity to
facilitate the organisation in the long term related with the development of internal infrastructure. They are
having the annual turnover of more than 5cr and they are also having the asset value of more than 1cr
P4: You need to do PESTLE analysis for two firms
The PESTLE analysis of TESCO and Walmart are as follows:
Political – the political factors in UK is very favourable for TESCO and the government over
there is also supporting them by providing them with subsidiary etc. the political factors
regarding Walmart is also good but they are having obstacle and these obstacles are the laws.
Economical – the economical condition for both these firm is bad as the labour rates in those
countries are very high. The labour rate for TESCO is less as compared to labour rate for
Walmart.
Social – the social elements for both of them is good as bot of them having good market share in

their respective countries and this is due to their products and services that they provide to their
customers.
Technological factors – TESCO and Walmart, both are highly advanced with their adaptability to
technology (Orehovec, and et. al., 2017).
Environmental – the working of both TESCO and Walmart is done by keeping in mind the safety
of the environment.
Legal – there are various types of legal complication in the working of Walmart where as
TESCO is having only a little legal paperwork
P5: You need to do SWOT analysis for two firms
SWOT analysis of TESCO
Strengths
 huge and loyal customer base
 technologically advanced
Weakness
 ineffective utilisation of resources
 high turnover of employees
Opportunity
 promoting online shopping
 accepting online payments
Threats
 loyal employees with the competitors
 high level of competition
Strength
 strong brand image
 efficient utilisation of resources
Weaknesses
 bad customer service
 slow growth
Opportunity
 increasing product line
 increasing consumer segment
Threat
 change in customer preferences
 increase in competition
P6: You need to apply external factors to the strengths and weaknesses
the strength of TESCO is mainly related to the social and technological factors. The social
elements help them in gaining huge customer base and advancement of technology helps them in

getting technological element. The strength of Walmart is due to the social factor as they bare
having strong brand image.
The weakness of TESCO is mainly in their social and environmental areas as they are not
effectively utilising the resources and they are also having high employee turnover (Carvalho and
et. al., 2020). The weakness of Walmart is mainly their social and technological area, as they bare
providing very bad customer services and their growth is also very slow.
M1: You need to explain how the structure, scope and size reflects on objectives of a firm
The micro enterprises will only be doing their business in a limited area and many of them are also
not having any intention to grow further their only main aim is survive in this market. They are many
different types of firms that are there in the market micro enterprise market.
Small and medium size enterprise will only be doing their business in a particular city or in a
particular region. Their main objective is to grow more and more by earning their profit and through this
they will be able to develop themselves to the large enterprise. Another one of their objective is that they
can make sure that they fully utilizing their resources.
Large enterprises are doing their business in a very large area and they are also having a big and
complicated structure (Bhandari and et. al, 2021). This is showing that the main objective of the large
industry is that they want to capture the market share and expand themselves more and more
D1: You need to explain the complexities of different structures and in different sectors and their
impact on objectives
The complexity is based on the number of task or the number of the resources that they are having.
In the micro size industry the number of complexity that they will be having is very less due to the fact that
their organisational structure will be very simple and they also don't have that much resources with them.
Their complexity also reduces due to the fact that they are not having any paperwork.
The small and medium enterprises are having a little complexity as they have got much m,ore resources
than the micro enterprise and they are also having a little complex structure. They also need to do some
paperwork regarding their working.
The large enterprise are having complex structure and they are also having abundance in their resources
and for their working they require high paperwork (Benoot and et. al., 2020). Their complexity is having a
huge impact on their objectives as they have to set the objectives likewise so that they can achieve it.

REFERANCES
Books and journals
Benoot, T., and et. al., 2020. A visual report on what is of value for people with intellectual
disabilities in a Flemish care organisation. Journal of Intellectual & Developmental
Disability, pp.1-13.
Bhandari, R., and et. al, 2021. Toxicity studies of highly bioavailable isoniazid loaded solid lipid
nanoparticles as per Organisation for Economic Co-operation and Development (OECD)
guidelines. European Journal of Pharmaceutics and Biopharmaceutics.
Carvalho, F., and et. al., 2020. ESHRE PGT Consortium good practice recommendations for the
organisation of PGT. Human Reproduction Open. 2020(3). p.hoaa021.
Orehovec, I., and et. al., 2017. Impact of the Supramolecular Organisation of Pyrene--Quinoline
Conjugates on their Interaction with ds--DNA. Croatica Chemica Acta. 90(4). pp.603-
613.
Varma, M., Delahunt, B. and van der Kwast, T., 2019. Grading noninvasive bladder cancer:
World Health Organisation 1973 or 2004 may be the wrong question. Eur Urol, 76,
pp.413-5.