Positive and Negative Impact of Macro Environment on Business

Macro environmental
Influence

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types and purpose of organisation and legal structures.....................................3
P2 Size and scope of range of different types of organisation...............................................6
TASK 2............................................................................................................................................7
P3 Relationship between different organisational functions and links to organisational
structure and objectives..........................................................................................................7
TASK 3..........................................................................................................................................11
P4 Positive and negative impact of macro environment upon business...............................11
TASK 4..........................................................................................................................................14
P5 Internal and external analysis of an organisation............................................................14
P6 Ways in which strengths and weaknesses interrelate with external macro factors.........16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Business environment refers to internal as well as external factors in a business which has
affected the functions of business including their customers, management, employees as well as
demand and supply of business. Business environment can be said to be how are the customers’
expectations made by a business (Hamilton and Webster, 2018). Macro environment factors are
all the factors in the external environment of a business which have a direct or indirect impact on
the business. These usually includes political, environmental, legal, social and a number of such
other factors in the external environment of a business. Following report is carried all Tesco
which is a British multinational company dealing in groceries and merchandise. It’s
headquartered in Hertfordshire England United Kingdom. It is the third largest company in the
industry of retailers. In the following report a number of factors related to business environment
such as different types of companies, structure of companies, size and scope of different
organisations, positive and negative impact of environment upon business, internal and external
analysis of organisation is conducted.
TASK 1
P1 Different types and purpose of organisation and legal structures
There are a number of different types of organisation based on various functions such as
profits, various aims and objectivists as well as ownership of a business. Below mentioned are
such types of businesses-
Types of business
Profit making: This refers to the companies whose basic aim is to earn profits. Such companies
have various number of products and services which they provide in market in order to earn
profits and expand their business further. A number of companies such as retail sectors, sole
proprietors work in order to earn profits.
Non- profit making: A non-profit making organisation are organisations which are tax exempt
and are formed for various religious, charitable, literacy, scientific or educational purposes. The
usual formation of this business is incorporated with trustees who do not use benefit of financial
for themselves. The finance is retained with organisation and they use it for their own expenses
and operations.
Other types of business

Private sector
Private sector are those businesses which include business owned by private individuals
and not by the government (Gaganis, Pasiouras and Voulgari, 2019). There are various types of
sole private sector businesses which include proprietor ship, partnership, private limited
companies and public limited companies.
Figure: Different businesses in Private Sector
Sole proprietorship- Sole proprietor ship refers to a sole trader or an individual
entrepreneur who is owning and running an enterprise by himself. In such businesses there is no
legal distinction between the business and the owner of the business. An example can be taken of
a carpenter who is running a small furniture shop. The shop is owned by the carpenter itself and
has a few employees working under him. The major goal and purpose of the organisation is to
earn profits. The shop and carpenter are the same legal entity and cannot be distinguished.
Partnership- partnership is called as an arrangement between different parties who can
be called as different business partners who have come together and agreed upon mutual interest.