Macro Environmental Influence

This assignment discusses the different types of organizations, including their purposes and legal structures, size, and scope. It also explores the interrelationship between different organizational functions and their linkage with organizational objectives and structure. The impact of macro environment on private and public organizations is analyzed, along with a SWOT analysis for both sectors.

Macro Environmental Influence

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 .......................................................................................................................................3
P1. Different types of organization with their Purposes and Legal Structures......................3
P2. Size and Scope of various types of Organisations...........................................................5
TASK 2............................................................................................................................................7
P3. Interrelsationship between different Organisational Functions and Their Linkage with
Organisational Objectives and Structure................................................................................7
TASK 3............................................................................................................................................9
P4 Positive and the negative impact of the Macro-environment on the private and the public
organisation............................................................................................................................9
TASK 4..........................................................................................................................................12
P5 SWOT analysis for both private and public sector.........................................................12
P6 Inter-relationship of external factor with strength and weaknesses................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Business environment consists of internal as well as external factors which impacts most to
the operations of business. To deal with such influencing factors, it is important for management
to take suitable plans and policies taking support from their employees in decision making
process (Chattopadhyay and Bhawsar, 2017). It can be possible only when specific models will
be used to analyse complexities of business environment such as PESTLE, SWOT etc. The
present assignment report is based on Tesco Plc, BBC, Oxfam which are taken as private, public
and voluntary organisation respectively. The report discusses the different kinds of organisation
including their purposes and legal structures, size, scope etc. The report also briefly explained
the interrelationship between different business functions, SWOT and PESTLE Analysis to
analyse internal and external environment respectively.
TASK 1
P1. Different types of organization with their Purposes and Legal Structures
Organisations are known as the association of human which is made in order to attain
some specific goals and aims. The major aim of these business organisations are to earn profits
and provide welfare to the society. There are variety of organisation which are elaborated as
under:
Public Sector Organizations: These organisations are associated with private sector and
owned by government. The major objective of public organisation is not only to earn profit but
to fulfil needs of society. BBC is known as example of this sector in which the company is
managing their business at global level. Purpose: The purpose of all the public sector organisation is to render services which can
be used by general public by using their own resources in optimal manner.
Legal Structures:
 Central Government : They are having role to collect their funds which is in the from of
advance tax for their public (Deshpande, 2018).
 Local Government: In the from of community charges funds are collected by them.
 State Government: They are having special power which are applied on some specific
departments.

The example for central government owned body is BBC which is working in private sector but
government is having high control in their operations.
Private Sector Organizations: This sector of organisation is associated with those
organisations which are initiated by individuals in private mode. These organisations are owned
and controlled by a single individual or group of individuals. For instance: Tesco is known to be
a private sector company which is executing their business at global level. Purpose: The purpose of these organisation is to attain high profitability and to receive a
distinct position at competitive market due to which they are highly focused on
maximising their efficacy (Evans and et. al., 2017).
Legal Structures:
 Sole Proprietorship: In this legal structure a person is managing all the function of the
business and their major aim is to earn immense profits. Form local authority licence is
required to be obtained so as to avoid any legal implications. For instance beauty salons,
taxi drivers are included in this legal structure.
 Partnership: A partnership is known as the organisation structure which is owned by
more than one individuals. Partnership is a legally bind agreement which is formed along
with pre decided conditions and obligations. All the partners are required to sign
partnership deed so as to show their consent on mentioned conditions. Profit ratio is
elaborated in the partnership deed so as to eliminate any conflicts.
 Limited Company : These type of organisations are required to register their business so
as to known as limited organisation. In this organisation whole the profit can be used by
the company itself no role fro shareholders is being given. On the other hand these
organisations are required to pay corporation tax for the profit which is earned by them.
For instance Tesco is a limited company and operating their business in accordance with
issued guidelines by company laws.
Voluntary Organizations: Voluntary organisations are associated with sum of
individuals those are consensually framed an agreement for some objective. Oxfam is a
multinational voluntary organisation in which they are working to eradicate poverty. Purpose: The major aim of charitable or voluntary organisation is to provide betterment
to the society and eradicate social issues. Social welfare is associated with growth and
development of overall society.

Legal Structure:
 Trust: Trust is not bound to be a legal entity as they are not having right to enter or
frame any project or contract on their own name.
 Unincorporated Association: These organisation are not to be known as legal entity in
which they receive unlimited liability as they are possessed with right of entering into
various contract on their own name and for each and every project they are held
personally liable. Oxfam is an example of voluntary organisations as they are working for
society welfare (Golovnev and et. al. 2013).
Growth of International Business Environment
In the current market scenario, so many homogeneous products are available in the
market and this is intensifying international competition. In the current years huge trade barriers
have been removed by government due to which market entry in new international market is
easy for business organisation. On the other hand due to intense competition organisations are
deliberately opting to tap in new international market so as to attain high profitability and
sustainability.
P2. Size and Scope of various types of Organisations
British Broadcasting Corporation (BBC): BBC is a public owned organisation and the
company is known as largest broadcaster in the global periphery. BBC has attained their funds
from license fee form households of UK in lieu of giving them services of broadcasting.
 Background: BBC is a public owned organisation which was founded in 1922, they are
receiving their funds form licence fees of television form households of UK. The
company is providing 9 TV channels in which radio broadcasting is associated.
 Product or Services offered : BBC is providing 9 channels to their service receiver
named as BBC News, BBC One , BBC Two BBC Online, BBC iPlayer etc.
 Size: The number of employees in BBC is reaching to more than 30000.
 Scope: The company is associated with the scope of business expansion in various
market segments such as China, India and many more.
 Vision: The vision of BBC is to emerge an an organisation whose content is innovative
and creative.
 Mission: The mission of BBC Is to entertain and educate their viewers by broadcasting
innovative and conceptual content.

 Business Objectives: The major objective of BBC is to broadcast educational content on
their channels and to showcase real information without any fabrication. On the other
hand the company is involved in engaging their customer by showing them impartial
news and information (Hamilton and Webster, 2018).
 Stakeholders: The company is having their stakeholders in the form of editors, viewers,
local body or community, government, employees and many more.
TESCO PLC: Tesco is a private sector organisation which was founded in 1919. The
company is known as the largest company in terms of revenue. Tesco is having huge range of
products in terms of household items and groceries.
 Background: Tesco is a public limited company in which they are associated in private
sector organisation. This is known as the largest retailer as they are having prominent
product portfolio of grocery and household items.
 Product or Services offered: Tesco is having a market leader as in retail outlet in which
the company is having clothing, eatable items, and many more.
 Size: Tesco is a British multinational retail store in which company is involved in selling
grocery and other items. Tesco is having 6800 stores in which they are employed with
400000 employees.
 Scope: Tesco is having scope of market expansion in which they are operating in selling
of frozen food, and other eatable products.
 Vision: Tesco is having major vision to be known as most valuable organisation to their
customer and to enhance trust and loyalty amongst their clientele.
 Mission: The mission of Tesco is to enhance their profitability and to attain high loyalty
from their customers.
 Business Objectives: Tesco is aiming at reducing prices of their products and rendering
their products on high discounts so as to enhance customer base. On the other hand
company is having objective of enhancing website gateway so as to enhance online sales
as well.
 Stakeholders: The stakeholders of Tesco includes employees, suppliers, customers and
many more.
OXFAM: Oxfam is one of the prominent group of non profit organisation which is
working to eradicate poverty in international periphery.

 Background: Oxfam is a voluntary organisation which is working in global level in
order to eradicate poverty. This is non profit organisation which is dealing with various
societal problems such as disaster reliefs, poverty eradication and many more.
 Product or Services offered: Oxfam is working in order to upkeep societal benefits and
eradicating problems faced by natural disaster, poverty and health issues.
 Size: Oxfam is having their operations in more than 94 countries around global periphery
and they are keeping huge local partners so as to get assistance over their functions.
Oxfam is keeping more than 50000 voluntary employees around global level (Evans and
et. al., 2017).
 Scope: In the current market situation population is the aspect which is increasing in
prompt manner so as to enhance conditions of society.
 Vision: The vision of Oxfam is to make world free from poverty and issues faced in
natural disaster as well. On the other hand the organisation is possessed with view of
creating a free world which is free from poverty.
 Mission: The mission of the organisation is to receive high funds and help people to get
relief from poverty.
 Business Objectives: Major objective of Oxfam is to get solution over the societal
problem of poverty. On the other hand the organisation is empowering people so as to
create fair future opportunities.
 Stakeholders: Oxfam is having prominent stakeholders as trustees, volunteers, suppliers,
communities, society and many more.
TASK 2
P3. Interrelationship between different Organisational Functions and Their Linkage with
Organisational Objectives and Structure
There are different business functions contributes maximum supports to an organisation in
achievement of its organisational goals and objectives. It includes marketing department, HR,
Finance, R&D department etc. Here are the interrelationship between these departments to
achieve organisational goals and objectives of Tesco Plc within pre-determined time period:
Marketing and Human Resource Department: Marketing division promotes the products
and services of an organisation by using an effective marketing channels such as TV

advertisement, Social media platform etc. For this, Marketing division needs members having
sufficient knowledge and skills in marketing field and it can be possible by getting support from
HR division to recruit the same. On the other hand, HR function also requires support from
Marketing division in publishing job advertisement on different platform to recruit skilled
employees (Ji-fan Ren and et. al., 2017). Thus, these both departments of Tesco Plc are very
much interrelating with each other with a clear objective of achieve organisational pre-
determined goals.
Finance and IT department:
Finance department arranges and manages funds to execute business activities in desired
manner. Thus, availability and allocation of funds is important for finance manager in order to
ensure about proper utilisation of financial resources. For this, it requires support from IT
Department to maintain records of funds allocated to different activities using IT systems such as
MIS. On the other hand, IT department brings confidence among finance department to invest
funds whenever requires without having fear of shortage of funds. Thus, these two departments
of Tesco Plc are providing equally support Tesco in achieving its desired goals and objectives
within pre-determined time period.
Organisational Structures of Public and Private Sector Organisations
Hierarchical Organizational Structure -
It is kind of organisation structure where authorities are travelled from superior to
subordinates. BBC follows hierarchical organisational structure where authorities are divided
among BBC trust, Executive Board, Executive Team and Management Board.
Tesco also follows hierarchical organisational structure wherein division at the top of
pyramid has more responsibilities and authorities for example, Regional manager has high
authority at store level organisation structure.
Matrix Organisation Structure –
It is another kind of organisation structure in which there are more than one superior of
the employees due to diversified operations. For example, Syngenta adopts matrix structure also
known as project team structure where there are various team for specific projects. Each team
contains members of different division. Syngenta uses supports from experts from different
division in order to achieve organisational goals and objectives.

Illustration 1: Source (https://research-methodology.net/tesco-organizational-structure/)
TESCO organisational structure is highly hierarchical and this also reflect on the size of
business. All the stores of TESCO are operated with different layers of the management that
helps to manage stores at per organisational level. The typical organisation structure define that
sequential and appropriate structure define the number of stores in order to reflect specific factor
of business in an appropriate manner. Moreover, it also helps to complete operations and
functions with identifying management strategy and task with right approach.
TASK 3
P4 Positive and the negative impact of the Macro-environment on the private and the public
organisation
Tesco
Political factor- Tesco is explained as the term that include political aspect of business.
This defines there are various changes aspects such as change in rules and regulations impacts on
the operations and functions of the organisation.
 Positive impact- With the stable UK government it is identified that Tesco generate
positive aspect for organisation. Like, tax rate are low for organisation which improve
company profits.

 Negative impact- Due to the high import duty changes in the organisation strategy create
complexity to understand political factor.
Economic factor- In context of the Tesco the economic aspects of organisation generates
changes in economic factors which reduce the buying power of UK individuals. Brexit decisions
is an example related with economic aspects.
 Positive impact- UK is a well-developed country so the purchasing power of individuals
are too high which aids Tesco to earn more amount of profits.
 Negative impact- The decision of Brexit generate inflation among UK which directly
raise the price of products and it create a little difference in the economic instability for
each business.
Social factor- With the change in customer behaviour there is a change in the
demographic and geographical aspects also impact on the attitude of individuals.
 Positive factor- Individuals or persons are motivated to work towards the completion of
work according to society requirements. It is positive for Tesco as there is a large variety
exists for business.
 Negative factor- With the negative impact of society it is identified change in behaviour
of employee's create complexity for Tesco to work as per society needs.
Technological factor- By using the advancement technology Tesco management aids to
enhance the value-proposition among products. This leads business to enhance market value of
company by performing operations as per high quality.
 Positive factor- With the online shopping aspect Tesco improve performance of their
company that leads to obtain competitive-edge against rival organisation.
 Negative factor- Tesco directly competes with international and other local organisation
due to this cost for technological equipments is high. It refers that all organisation utilsie
technology so it raise cost for business.
Legal factor- With the change in legal rules and regulations for business it is identified
that specific laws leads Tesco to perform their work in an ethical manner.
 Positive factor- Tesco complete work according to the decided laws which leads
government to generate trust among the consumers related with quality and other
essential requirements.

 Negative factor- Tesco face the challenges related with ethics of company that relates
with employee's (Wetherly, 2014). This determine that Tesco authorities discriminate
between local and migrant workers which reduce ethical aspect for business.
Environmental factor- The individuals who are engaged in operations of Tesco
understand importance of social responsibilities which also leads organisation to manage work
according to the environment law for safety of natural resources.
 Positive factor- With increase in social awareness this is easy for customer's to
minimise the number of waste from their store.
 Negative factor- The competition among retail organisation of UK is to not effective to
influence the environment policies.
BBC (British Broadcasting Corporation)
Political factor- The UK governance and the laws such as international broadcasting of
services reflects on all essential aspects of business. Further, BBC is controlled by Board of
governance which generate its operations as per public interest.
 Positive factor- With the Brexit decision BBC will need to follow the rules and
regulations related with EU so it helps to manage services with more efficiency such as
to make fast decisions in all Europe.
 Negative factor- According to the political environment BBC face challenges to
demonstrate the news which is not in favour of government.
Economic factor- It include the inflation rate, income and interest rate related with
business corporation (Springer, Cham.Hillary, 2017). This determines economic factor directly
impact on cost of operations related with business.
 Positive factor- With the perspective of UK GDP it is identified that the license and
other tax are not increased which leads BBC to expand its business easily.
 Negative factor- Due to increase in cost of the rights for offering services in UK directly
impact on company.
Social factor- The culture aspect of organisation relates with society and it is also used
for managing work as per external environment.
 Positive factor- Individuals who are engage in society perform work with the motive of
influencing employee's to work as per market requirements.

 Negative factor- People who are from different religion create complexity because of
change in the language of communication.
Technological factor- The term technological aspect include level of innovation as well
as research perspective to generate awareness among organisation about high-tech services of
BBC.
 Positive factor- The ease of internet lead individual to expand the business with use of
various digital platforms.
 Negative factor- There are constant changes are monitored in the technology field which
create complexity for BBC to work as per current technology (Singh, 2012).
Legal factor- This include the laws that undertakes about anti-trust law, employment law
and other property rights to perform all work in a legal manner.
 Positive factor- It include all the laws that work as BBC is a public organisation which
helps to get license freely.
 Negative factor- Due to minimum licensee fee it is easy for governance to work as per
the whole dependent body.
Environment factor- BBC require focus on all environmental factors as it is used in
managing work with social welfare.
 Positive factor- BBS support utilise all aspects that leads in managing work as per
centralised system.
 Negative factor- Due to change in the cover aspects it is related with the aspect of
business.
TASK 4
P5 SWOT analysis for both private and public sector
SWOT analysis of BBC
Strength
 BBC is a largest and oldest broadcaster
which work as per global business.
 With the strong image and goodwill of
BBC it is easy to work with strengh.
Weakness
 Sometimes news are based on the
opinion.
 The threat for the employee's and
journalists it is difficult to work in the
war zone.

Opportunities
 It is used to expand the business into
another areas specifically in developing
countries (Prajogo, 2016).
 This promote about the emphasis
relates with channel of fashion and
technology because they are in
emerging sector.
Threats
 It is facing strong competition due to
which challenges reduce for business.
 Domestic channel are expanding the
area which reduce the viewership for
BBC.
BBC Strength- It is leading organisation to perform all work and operations as per the largest
entertainment service provider. So it is used in managing business with more efficiency by
performing all task according to requirements of customer's. Moreover, high goodwill is also
beneficial for charging high price for BBC service.
Weakness- The weak aspect define work that the changes among organisation define the
challenges relates with biased news. Apart from this challenges related with business
demonstrate that complex conditions impacts on overall market.
Opportunities- With motive of increasing the business size it is analysed by organisation that in
order to enhance among specific areas such as market of developing countries offer a place to
improve business size of BBC.
Threats- Ownership for business is one of the major threat which is related with BBC as it is
complex for management to take unfavourable conditions in market.
SWOT analysis of Tesco
Strength
 Tesco is a leading organisation in retail
sector. So it work as a strength factor
for business.
 Due to the diversify range of products
Tesco manage its store at overall world.
 Market area of Tesco is geographically
expanded which make presence of
organisation at global level.
Weaknesses
 Tesco is totally depend on UK market
so the sale in other areas is a complex
factor for business.
 The operations of Tesco is failed in
country such as Japan due to local
market business.
 The share price of Tesco is reduced
which reduce operating profits for

 Strong market within Europe and Asia
market also work as a strength for
Tesco to improve customer's base.
organisation.
 High debts, loans and credit liability
impacts on the financial profits of
organisation.
Opportunities
 Merger and joint-venture leads Tesco to
accomplish opportunity in untapped
geographical area.
 Online shopping application is an
effective term for increase in company
profits.
 TESCO introduce Jacks, a new
discount store which provide
opportunity to market for improving
their area.
 Tesco operate their stores in different
country but market such as South
Korea, Indonesia and Turkey provide
opportunity to organisation to increase
sale of products.
Threats
 The fluctuations among countries
currency generate loss for Tesco.
 Due to price war among rival
organisation it is complex to earn
average profits.
 Brexit referendum with Britain is a no
longer European Union which
demonstrate trade deals and cost work
as a threat for Tesco.
 TESCO face competition with the
giant supermarket that included merge
of WalMart and ASDA, Aldi and many
more. This threat market position of
TESCO in market.
P6 Inter-relationship of external factor with strength and weaknesses
TESCO Plc Political- Due to the low price of import duty it is easy for Tesco to export all products in
other country (Johnson, 2015). So import duty provide strength for organisation and other
side weakness demonstrate with Brexit decision.
◦ Strength- One of the major strength that relates with political environment undertakes
the functional level strategy as it improve organisation activities.

◦ Weakness- This is mandatory for Tesco that internal department must be efficient but
in case of respective organisation it is complex because of diverse workforce
engagement in company. Economic- With the recession time period retail goods are sold constantly so it work as a
positive factor which work as a strength for Tesco. Further, weakness refers that sales of
Tesco only depend on UK market.
◦ Strength- The strategy improve the possibility to improve opportunities as with
economic environment cost leadership work as a strength for all departments of
Tesco.
◦ Weakness- In bad economic conditions it is complex for TESCO to manage and
perform business with an appropriate manner because of Brexit conditions. Social- Due to diversify range of product private organisation accomplish strength which
fulfil needs of different customer's. On other side, weaknesses that each social aspects is
different from previous one which create challenges for organisation.
◦ Strength- TESCO plc overcome from the challenges through performing task with
understand of society need. So it also work as a strength for business to improve
business.
◦ Weakness- Market conditions and society needs are too dynamic which demonstrate
that it is complex to understand environment of business. Technological- The employee's of Tesco are skilled and trained which work as a strength
to work with technology aspect. Further, weakness refer to the cost and change in the
needs of customer's.
◦ Strength- Technology aspect work as a strength for business because it is used to
manage and perform operations at global level.
◦ Weakness- One of the major weak point related with technology aspect define
challenges related with adopting technological changes.
CONCLUSION
According to the above report it is concluded that each organisation follow legal rules
and regulations that prevails management to perform their work according to the existing
environment. Moreover, with the proper coordination among all departments within a business
an organisation accomplish long term objectives in an organised and sequential manner. In the

last, with understanding the macro-environment. An organisation perform their work as per
decided goals that also helps in analysing strength and weaknesses with each aspect of
organisation.

REFERENCES
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Analysing The Organisational Structure. 2019. [Online] Available
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structure-of-syngenta.php>./
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(TESCO SWOT Analysis)