Macro Environmental Influence

This report explores the macro environmental influence on business operations, including the types and purpose of organizations, the size and scope of organizations, the relationship between organizational functions and structure, and the positive and negative impact of the macro environment on business operations.

Macro Environmental
Influence

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Types and purpose of organisations......................................................................................3
P2 Size and scope of organisations..............................................................................................5
P3- Relationship between varied organizational functions and their connection with
organizational structure & objectives..........................................................................................7
P4- Positive and negative impact of macro environment upon business operations...................8
P5- Internal analysis of specific companies to determine strengths and weaknesses................11
P6 Explaining How Strengths and Weaknesses Interrelate With External Macro Factors of
Business Organisations..............................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Macro Environmental Influence can be understood as an important aspect where
business scenario within various companies are structured in varied phenomenon working
paradigms and also there is strong working aspect behind company working success. The report
explains macro environment working scenario where there is explanation of various types of
organisations which are public , private and voluntary legal structures. Report also explains size
and scope of various types of organisations where there are various factors analysed which make
them stronger within various working fundamentals and how various functions are interlinked
with organisation aims, Report also explains positive and negative impacts macro environment
has upon business operations and how various internal and external analysis enable to bring
working advancement among company structure. It can be also understood that macro
environment correlation works as massive paradigm within working aspects for generating
stronger working goodwill among consumers with various profit parameters. The report also
explains further strengths and weaknesses interrelate with external macro factors within
company parameters and how departments shall be capable for gaining working motivation
(Sivasankaran, Paul and Kannadhasan, 2019).
MAIN BODY
P1 Types and purpose of organisations
There are various types of organisations within business world which can be divided on
basis of their types and purpose factors as public companies, private companies and voluntary
companies within industry. Public companies can be understood as publicly listed companies
whose ownership is organised via shares of stock, intended to be freely traded among people
within stock exchange. Public companies also formulate wider working vision and formation of
stronger working parameters with high innovation among production of goods and services, also
major formation of wide range of investments scenarios. The purpose of public companies where
Asda is one of the biggest retail public company working with wide range of customer goods
and services having strong innovation parameters. Asda superstores are accounted for 339 totaol

stores , where there are 631 stores and also the close competitors within landscape has been
widely growing.
ASDA organisation structure can be understood as hierarchical functional structure as there are
various functional departments with large range of products , services catering to wide
consumers markets. ASDA as public company trades its shares within stock market for people
to invest in, however the public companies do not give access to people for taking part in any
decisions where they can only demand return from shares invested in business. Public
companies also have stronger wide range of business parameters goals, investments of capital
which keenly bring on wider technology exploration among business scenarios for generating
consumer goodwill among wide parameters (Alsulayhim, 2019).
The private companies are types of companies where shares are open for investments only to
limited people who are the shareholders and have strong right to take part in decisions within
company business decisions. Private company do not openly trade their shares which make their
position limited and also there is high focus given to innovation development, technical
parameters of working innovation where there is also high investment interrelated among various
technical aspects. John Lewis partnership is one of the major private retail company within UK
industry where company focuses for generating various innovative products, services and
working exploration for consumer goodwill goals. Purpose of private companies is focused on
profits and capital formation working parameters where focus onto generating new working
domains, stronger synergy onto new quests are worked on which is major aspect differentiating
from other types of structured organisations. The purpose of private companies are also
technically brought on factored parameters where new relative scope is wide, relishing working
innovation to be huge and also for generating stronger profits in business (Boisjoly, Conine and
McDonald IV, 2020). John Lewis partnership is british company which operates stores in
varied parts of world, where there are around third size of normal departures stores and there are
number of employees of 83,000 and revenue is of around 10.5 billion and net incomes of 146
billion in year of 2020.
The retailers' employee owned partnership model operates differently form private
equity backed businesses and stock market listed companies as instead of profits flowing to
shareholders, it flows to staff in forms of annual bonus. Legally It is private company with wide

range of services catered with investments as planned by investors, where public cannot take
active decisions in shares handling nor the shares are listed.
The voluntary companies on other hand are types of companies focusing onto
development and better formation of society values by providing service fundamentally onto
improving living aspects of women within various phenomenons. Voluntary companies are
widely focusing for generating innovation for people at valuable cost effective services, with the
least focus on profit business goals which make them separate form other kinds of organizations.
The voluntary organization do not have shares formation working fundamentals which make
their legal identity limited at certain functional parameters. The British Red Cross is an
organisation body of worldwide humanitarian network w where society was framed in 1870,
and is registered charity with more than 32, 500 volunteers. This organisation has widely created
best working aspects for providing poor people globally better living conditions with creation of
harmony and respect among society within various paradigms where working innovation is high
among major paradigms. Purpose of voluntary companies is not to create profits within business
as worked among public or private companies, but to work with donations and charities as an
important goal to create stronger working aspects among people and in generating strong
cooperation (Le, 2019). The society was formed in 1870, and is registered charity company
having 32,500 volunteers and 3500 staff within various centres and heart of working is provided
for various services among communities.
P2 Size and scope of organisations
The various organisations can be divided among each other based on size and scope of
organisations where it can be understood that there are major parameters which are worked on
among major phenomenon for generating wide scope and also potentially reach stronger working
aspects. Public companies are large in size as well as scope where it can be understood that large
shareholders look for investing in best public companies who have high goodwill where Tesco
is one of the best example within UK retail industry. The scope is wide as reach for stronger
creativity and higher investment potentialities are huge making high scope available within
business scenarios. However people cannot involve in meetings of public companies or
shareholders cannot take part in decision making which makes the approach weak and limited at
some certain working aspects. Public companies business scenario scope is huge and also there is

wide functional reach for generating new consumer growth among working segments within
business parameters. ASADA is one of the best public company widely having strong
infrastructure and innovation fundamentals among goods an services production, which makes
enhanced market structure, stringent working aspects and wider technical exploration parameters
onto where scope is larger for bringing on new metrics (Mistary, 2020). Size of Asda, public
sector company is wide and also varied focused on larger number of stores which has legally
made it high acclaimed public company whose shares are also available for people to invest in.
Purpose, legal structure, size and scope of ASDA ( public company) are based on aspects where
with huge market structure among shareholders being open for investments makes it widely
expanded among global levels. Legally there is also wide scale of operations as capital is wide
and also larger competent pace to use scope of innovation is wide. ASDA is involved in
marketing of grocery products, merchandise of financial service and is alo expanding into new
industries specifically in financial services making scope widely expanded. The main scope and
aim of promotional activities are low price strategy.
The size of private companies on other hand is large with vast investment opportunities and
shares being given to potential investors who are also liable to take part in active decisions,
meetings within shareholders among company paradigms. Private Companies business goals is
to invest in business with high capital range of shares and also widely function with stronger
innovation, creativity to reach wide diverse people preferences. John Lewis Partnership is one of
the best private company within Retail UK industry where business scenario actively focuses for
leveraging innovation and higher investment into new working aspects for generating new
growth into competitive domains with higher consumer goodwill goals. Scope is wide as it uses
best technology metrics to reach wide range of consumers within global arenas and also new
working exploration is competitively huge. Private companies working functional structure is
also focusing onto bringing on new working scenarios, for technical exploration goals and to
generate wider profits scenarios within various potential aspects. Size of private companies is
also wide, functionally oriented among varied parts of world, with its innovative products and
services and legal operations widely segregated among new scenarios.
The size and scope of voluntary companies are limited where it enables us to understand
that the functional scope of bringing new functional innovation and creativity within services is

also limited. There is only focus developed onto developing strategies for generating new
innovation, leveraging focus onto how society can be served better and for gaining new working
aspects working paradigms with wider technical exploration. Voluntary companies are also
widely focusing for bringing on new working scenarios with limited capital structure which is
also pertaining impact on business scenarios. The British Red cross is also one of the best
voluntary organisation within world paradigms focusing onto generating best working services
for higher society standards, stronger working involvement of innovation but spread being
limited however keep scope limited among working paradigms. It can be also understood that
there are no shares worked on among Voluntary companies which also do not potentially focus
for generating new relative working goals among business scenarios where competition is huge.
Voluntary companies are specifically focusing onto generating new consumers working
paradigms, with high focus for leveraging services among working potential parameters where
limited capital many times make business limited scoped (Pakdel and Ashrafi, 2019). Voluntray
scope and legal status is based on operations and varied number of scenarios widely worked on
with its yielding force of services among communities.
P3- Relationship between varied organizational functions and their connection with
organizational structure & objectives
Marketing interrelation with IT-
Marketing department with in ASDA or in John Lewis partnership has always worked in
collaboration with other operational functional units. They work and collaborate with
Information technology department to work effectively with advanced technologies (Bai and
et.al., 2017). It can make marketing team able to promote products or services in front of buyers
successfully. As IT team is capable to solve technical issues in machines and systems. The role
of IT department is to make marketing procedure easier for workers by maintaining and updating
existing systems at workplace.It is possible when both section work together; it will allow them
to achieve set aims and objectives of company on timely manner.By working together marketing
and IT functions make work smoother in organizational structure.
Marketing and Production-

Production and marketing functions always work closely and together in order to drive
firm at global level by achieving their set objectives. For example, marketing department can
share information about consumer’s needs and preferences with production to make them able to
manufacture items accordingly, which is actually quite essential and beneficial for company. The
role of marketing function and its team to aware production function about current trends in
market that help to serve things accordingly and exactly what people wants from them.
Production department then taking all data start overall process and give their best to satisfy
buyers after each purchase and that is the main objective of firm which can be achieved like this.
Marketing and production functions related to ASDA structure because they work with each
department in many cases.
Marketing and consumer service department-
Buyers are willing to even pay more for a better consumer’s service experience.
Marketing and customers service functions by working together provide excellent experience to
people in context of this activity. Marketing department after reading negative and positive
comments of people about products or services inform other function to solve people issues by
communicating with them in regard to their issues.
It can be said that by working together all department provide several benefits to firm in
term of increasing their sales and profitability.Marketing, customers service department,
production and information technology are different types of departments that has been
connected and linked with structure of ASDA in term of increasing productivity and then
performance level even better.For example, customer service department by solving problems
and queries of consumers enhance their satisfaction level which in return increase customers
base and that is the most important objectives of company. Increasing sale means increasing
structure of firm as it define the link up between departments work and entire firm structure.
Analytically this can be understood that marketing interrelationship with IT, customer
service department and production section, is very important and beneficial for company. It
enhance productivity level of staff and business as well. The interconnection is related to
organizational structure and service. For example, all the departments work with existing

structure or formate of firm and conduct practices by working with each other, which enable
company to grow business even better than last few years or months.
P4- Positive and negative impact of macro environment upon business operations
PESTEL analysis-
External factors ASDA John Lewis Partnership
Political factors Tax rates, political instability,
stability, trade policy etc, are
considered as political factors.
They directly impact on sales
and growth of any brand in
UK market. In context of
ASDA, changed in trade
policies can affect firm current
business activities in negative
manner because it imports
some inventory from outsider
nations like East Asia and
China.
In regard to this organization,
decreasing corporation tax is
one of the political factors that
affect its growth and success
positively. UK government is
deciding to minimize
corporate tax from 30 to 28
percent that aid company to
increase their profitability and
sales in future more than
competitors.
Economic factors As global economies have
been severely affected by
pandemic named COVID-19,
it is expected that many
people’s earning are to go
down and many of them lose
their jobs. This factor put
positive impact on ASDA, as
it allow management to hire
skilled and talented people in
company who are able to work
COVID- 19 also affects this
company in same manner. As
it give them the best
opportunity which turn into
increasing productivity and
performance of John Lewis
partnership even better. Firm
can select and hire local
people’s who lose his or her
jobs.

hard and always contribute to
make things better.
Social factors Changes in lifestyles of
consumers make change in
their buying behaviour which
directly impact on inventory
management and sales of
Asda as in negative manner.
When people demand
products according to lifestyle
and health habits it impact on
production and sales activities
of company negatively and
they need to do all the things
from starting.
Consumers shifting
preferences correspond to
chance for firm. It put positive
impact on John Lewis
partnership sales and profit
margin because firm always
sell their products according to
the preferences of people by
conducting market research. It
allows them to know more
about like and dislikes of its
target market.
Technology factors Technological advancement
put positive impact on revenue
and consumers experience of
firm as well as upon its overall
business activities.
Organization has benefited
greatly from this factor over
years. They can gain attention
of new consumers via
promoting service or products
on the latest digital marketing
tools or platforms, especially
Facebook and Instagram.
Raise of internet is one of the
technology factors that affect
John Lewis partnership profit
margin and relations with
consumers positively. For
example, with the help of
internet management can
provide online shopping
experience to people, those
who are not able to go out of
shopping because of busy
work schedule.
Environmental factors Consumers as well as
government concern to reduce
Demand for environmental
friendly raw materials for

carbon foot print affect
running operations of Asda
positively. As firm to respond
this factor has taken a number
of initiatives which are quite
beneficial for them. They
vowed to remove one billion
pieces of plastic wrapping by
end of 2020.
manufacturing clothes is an
environment factor. It affect
production and marketing
tactics of company in positive
manner because firm already
uses chemical free items while
producing things, which is
really very good for its
business.
Legal factors Government legislations and
policies impact on ASDA
directly. For example, EU and
UK competition law prohibit
anti rivalry activities and
therefore, company cannot
merge with and purchase
another superstore of their size
in United Kingdom as nation’s
rivalry can block such actions.
It put negative impact on
expansion strategy and plan
for firm negatively.
National legislation has been
stiffen for health & safety in
term of production and
consumers rights of natural
renewable resource for
manufacturing apparel. This
factor affect sales in positive
manner because firm follow
all the regulations and rules
appropriately.
P5- Internal analysis of specific companies to determine strengths and weaknesses
SWOT analysis-
Here this model is used to identify strengths, opportunities, weaknesses and threats of
ASDA and John Lewis partnership firms. It is one of the best strategic frameworks.
Internal analysis Basis ASDA John Lewis Partnership

Strengths The biggest strengths of this
organization are that they use
the latest and advanced
technologies to enhance
shopping experience of
consumers (Wang, Hu and
Zhou, 2017). This strength
influence decision making of
company in positive manner.
For example, firm uses RFID
enabled barcode system as
technology that help
management to identify which
product selling number is
highest. It can aid manager to
take decision for
manufacturing those items and
pay more attention of its
quality.
Each organization has some
strengths and weaknesses that
may impact on its current and
further practices. Highly
qualified management groups
is one of John Lewis
partnership firm strength that
affect strategic decision
making by permitting
administration to create plan
for global expansion. This
judgement is quite beneficial
for company in term of
increasing their sales and
brand image in market more
than its competitors.
Weaknesses ASDA is well known in
United Kingdom market as
price leader, but their pricing
strategy can lead to reduce
profitability. They use low
cost strategy that may be
affect consumer buying
behaviour. Due to this tactic,
people can think that firm can
provide poor quality. This
weakness affect decision
making of company related to
Lack of transparency is one of
its weaknesses that affect
working environment and
workers performance in
negative manner (Stafford and
Stapleton, 2017). With sharing
information about business
with staff and engaging
employees in decision making,
management would not be
able to retain talented people
with them that affect

pricing structure of each
product.
productivity of organization.
This weakness can decrease
staff motivational level.
Opportunities Technology advancement is
one of the biggest
opportunities for ASDA. With
this opportunity firm can take
decision to provide better
online shopping experience to
consumers. They can inform
people about new and
innovative items, firm will
launch in market. Supermarket
can avail chance by growing
and upgrading their home
delivery services and online
shopping venture.
Adoption of healthy life styles
by consumers presents
achance for John Lewis
partnership to sell healthy food
products and sports gear. With
the help of this opportunity
organization can strengthen its
brand image in market rather
than the other brands and can
increase customer’s base
effectively.
Threats Competitive rivalry between
existing players within retail
supermarket industry is high.
It possess greater threat for
ASDA as it affect decision
making of organization and its
management. It can be said
that due to rising performance
and growth of WalMart, Aldi,
and Carrefour, firm can be
threatened. It impact decision
making of manager in term of
making plans to overcome
Changes in taxation policy and
procedure are the biggest
threat for John Lewis
partnership firm. It affect
business expansion tactic of
company negatively and create
barriers in their growth and
success.

threat.
P6 Explaining How Strengths and Weaknesses Interrelate With External Macro Factors of
Business Organisations
Strengths and weaknesses of business organisations such as Asda or John Lewis have a
direct relationship with the factors present in the business’s external macro business
environment. The strength of ASDApertaining to the ability of the business organisation to make
effective use of new technological solutions presents various new opportunities to the business to
grow and expand their business operations within the external business environment of company.
Through new, innovative and advanced technological solutions ASDAnow has the opportunity to
effectively service its customers through new digital stores on the internet, which can allow for
the retail busines organisation to significantly improve and enhance its overall productivity and
generated profit margins. On the other hand, the weakness of ASDA also directly interrelates
with the threats present to it from the external macro business environment. Company operating
as the price leader within the retail industry of UK to make its manufactured goods and products
affordable to increased customer segments of UK also has a direct impact on the threat it faces
from the external macro environment relating to the extreme competition within the retail
industry of UK (Jelassi and Martínez-López, 2020). Due to the high number of large sized retail
business organisations such as Walmart, Aldi, Sainsbury’s etc., all operating in a highly
competitive manner within the retail sector of UK. This increased competition has an adverse
impact on the overall profitability of firm within the retail sector of UK, which the profit margins
of organization already being considerably less owing to its competitive pricing strategy.
The internal strengths and weaknesses of John Lewis also interrelate directly with the
factors present within its external macro business environment. The strength of John Lewis
relating to its possession of highly skilled, experienced and qualified management within the
retail industry of UK has a direct relationship with the opportunity present to the business
through its external macro business environment. It is through the skilled, qualified and
experienced management possessed by John Lewis that allows for the busines to effectively
make use of the opportunity present in its external macro environment through which the
business is able to encourage the adoption of healthier lifestyle by its customers and sell them

food products that are increasingly healthy, nutritious and beneficial for their customers health
and life (Magagula and Zondo, 2018). On the other hand, the weakness of John Lewis also
directly interrelates with the threats present to it from the external business macro environment.
Due to John Lewis’s inability to effectively retain its skilled and talented employees, the overall
morale and motivation levels of the employees possessed by John Lewis within the retail sector
of UK is considerably less. This has a direct impact on the growth and expansion opportunities
available to the business organisation from its external macro business environment because
failure of John Lewis’s to retain their skilled and talented employees negatively affects the
business expansion tactics of the company and exacerbates the barriers already present to their
overall growth, expansion and success.
CONCLUSION
The report can be concluded with conclusion that there are major factors of working
aspects among various types and structures of organisations where report in detailed analyses
public company, private company and voluntary company infrastructure with their purposes and
types being highly different on various parameters. It can be also concluded within report that
wider functional detailed working exploration are huge among public companies as shares are
also traded among public, with high goodwill and capital investment business opportunities.
Report concludes private companies have shareholders who take active part in decisions of
business and also there are voluntary companies where functional wide focus is only governed
onto bringing on new services among people which highly enhances living standard. Report also
analyses internal and external business factors impacting company business levels within
functional scenarios, for leveraging stronger synergy of innovation and competitive growth
factors. There is wide correlation among external and internal business factors where there is
also new competitive strength, enhancing stringent working aspects focused and also relatively
new factors shall be worked on which shall pertain high focus among larger industry
parameters (Sawarni, Narayanasamy and Ayyalusamy, 2020).

REFERENCES
Books and Journals
Alsulayhim, N., 2019. The Relationship between Working Capital Management and
Profitability.
Bai, W and et.al., 2017. Organizational structure, cross-functional integration and performance
of new product development team. Procedia engineering. 174. pp.621-629.
Boisjoly, R.P., Conine Jr, T.E. and McDonald IV, M.B., 2020. Working capital management:
Financial and valuation impacts. Journal of Business Research, 108, pp.1-8.
Jelassi, T. and Martínez-López, F.J., 2020. Internal Analysis: e-Business Competencies as
Sources of Strengths and Weaknesses. In Strategies for e-Business (pp. 97-124).
Springer, Cham.
Le, B., 2019. Working capital management and firm’s valuation, profitability and
risk. International Journal of Managerial Finance.
Magagula, M. and Zondo, R.W., 2018. Uncovering the strengths and weaknesses of outsourcing
core business deliverables: the case of selected state-owned enterprises in South Africa.
TD: The Journal for Transdisciplinary Research in Southern Africa. 14(1). pp.1-7.
Mistary, V., 2020. Working Capital Management.
Pakdel, M. and Ashrafi, M., 2019. Relationship between Working Capital Management and the
Performance of Firm in Different Business Cycles. Dutch Journal of Finance and
Management, 3(1), p.em0057.
Sawarni, K.S., Narayanasamy, S. and Ayyalusamy, K., 2020. Working capital management, firm
performance and nature of business. International Journal of Productivity and
Performance Management.
Sivasankaran, N., Paul, S. and Kannadhasan, M., 2019. Measuring impact of working capital
efficiency on financial performance of a firm. Journal of Indian Business Research.
Stafford, A. and Stapleton, P., 2017. Examining the Use of Corporate Governance Mechanisms
in Public–Private Partnerships: Why Do They Not Deliver Public
Accountability?. Australian Journal of Public Administration. 76(3). pp.378-391.
Wang, Z., Hu, H. and Zhou, W., 2017. RFID Enabled Knowledge‐Based Precast Construction
Supply Chain. Computer
‐Aided Civil and Infrastructure Engineering. 32(6). pp.499-
514.