Macro Environmental Influence

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.