Macro Environmental Influence on Business Operations

MACRO ENVIRONMENTAL
INFLUENCE

Table of Contents
INTRODUCTION...........................................................................................................................3
P1-Varied types and purposes of companies and their legal structures......................................3
P2-Size & scope of range of different types of firms..................................................................4
P-3 Relationship between several organizational functions and its connection to structure &
objectives of company.................................................................................................................5
P4- Positive and negative impact of macro environment has upon operations of business........6
P5- External and internal analysis of specific companies...........................................................7
P6- Interrelation between strength & weaknesses and external macro factors........................10
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Environment of business consists of all entities, individuals and other factors that can be
impact on companies in positive or may be in negative manner. The current study will explain
about different purposes and types of companies as well as their legal structure. It will describe
scope and size of public, voluntary and private firms and also justify the relation between varied
functions of business that are connected to organizational structure & objectives. Furthermore,
this report will also clarify positive and negative impact on firm operations and explain external
& internal analysis in context of two companies. Beside this, it will define connection of
strength, weaknesses with external elements.
P1-Varied types and purposes of companies and their legal structures
Here, different types of business, companies and their aims as well as legal structures will
discussed below.
Types of business-
Profit making-
This type of business or company makes a profit after selling their products or services to
target market. They seek to increase profitability rather than business rivals operate in same
sector.
Non profit making-
It refer to form of firm or enterprise that does not earn profits, they serve for social well
being. It is tax exempt company formed for charitable, artistic and religious purposes.
Types of legal structure-
Sole trader-
It is business structure whereby one person runs and manages whole business into
specific market.
Partnership-
This legal structure is come into two forms limited & general. In general partnership both
business owners invest their profit, workers and property and are both equal liable for company
debts.
PVT Ltd company-
Private Ltd firm is a kind of privately held small business entity, in which owner liability
is limited to their profit.

Public Lid organization-
It is another type of Business Company that operates as separate legal entity from their
business owners. Public ltd firm is owned and formed by shareholders, share of this business are
traded and listed at stock exchange market effectively and freely.
Public sector firm-
It refers to part of nation's overall economy which is managed and controlled by different
government bodies. In can be said that State government runs this sector for local people. Aims
of this sector is to cater important public services and to use assets in the best way so that they
can make a profit for community or society. For example, ESPO is a company from public sector
operating within UK (Antoniou and et.al., 2019). The main purpose of this organization is to
based upon commitments and current declarations on sustainable palm oil in Europe. It has
membership structure on national level and it can be completed by governance work stream. The
aim of company is to provide public service more than with making money or increasing sales.
Voluntary sector company-
This sector refers to companies whose main purpose is to create social impact more than
profit. British red cross is voluntary sector firm in UK, it was formed in 1870 and registered
charity with over 3,500 staff and 32,500 volunteers. It is a volunteer led humanitarian firm that
aids people in crisis. The purpose of this company is to mobilize power of humanity so that
communities and individuals can prepare for difficult situations and deal with from a crisis that
affect living standards of a person (Rushton, 2018). British Red Cross can follow sole
proprietorship as legal structure that is quite beneficial for its business activities in context of
public well fare. The aim of this firm is to help local people in crisis or difficult in difficult
situations such as COVID 19.