Macro Environmental Influence

Macro environemental
influence

Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
Different types of organisation....................................................................................................1
Size and scope of a range of different types of organisations.....................................................4
The advantages and disadvantages interrelationships of the different organisational functions
.....................................................................................................................................................5
Organisational structure...............................................................................................................6
PART B...........................................................................................................................................7
Application of PESTEL analysis along with its strengths and weaknesses................................7
SWOT Analysis and its influences upon decision-making.......................................................10
Interrelation between micro and macro factors.........................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Macro environment is stated as the accumulation of that factors as well as conditions that
have ability to influence the business in affirmative and pessimistic way. It involves influences
that impact whole business economy. Also, business environment is regarded as the
accumulation of external and internal aspects which influence an entity’s operating situation
(Alrishani, 2020). Moreover, the organisational success is wholly depends upon their potential to
apt modification within macro environment as well as for this firm required to closely observe
several factors of surroundings. This report is based on Marks and Spencer is a well known retail
brand due to their reasonable prices and higher quality. It basically deals into food items, home
items and clothing and having headquarters is in London, UK. The topic which is going to be
described in this report is various kind of organisation along with size, scope, purpose and others.
Moreover, the critical analysis of interrelation of different organisational functions, external
environment with its strengths and weaknesses and SWOT analysis and its influence on decision
making are also described in this report.
PART A
Different types of organisation
Organisational success is effectively based upon experiences and proficiency through target
marketplace. There are several kinds of entity that are categorised as per its objective, vision,
mission, purpose and others. Basically there are three forms of organisation which are described
underneath:
Private sector organisation: This organisation play essential role within system of country’s
economy. It is performed through entity and sole proprietors with intent of gaining higher
profitability (Berger and et. al., 2020). One of the best illustration of it is M&S, it is renowned
British retailer which specialises in selling food, home, and clothing items to their direct
audiences. It was set up through Michael Marks and Thomas Spencer in 1884.
 Vision: Its vision is to develop effective quality of goods and formed trust among
customers.
 Mission: Its mission is to build an aspiration quality items that are easily reached to all,
by deep as well s range of their products.
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 Objectives: Its objective is to develop a benchmark for other as per basis of their goods
and services quality. This includes ore value as creativity, quality and others. Types of Public sector organisation
 Sole proprietorship: When venture is handled through a person, then it is considered
to be sole proprietorship where their business owner has to shares benefits as well as
cost through itself. Also, it is traditional as well as simplest way of operating venture.
Along with this, there is less restriction and can be dissolving easily.
 Partnership: When above two person working in combined way with intent of
gaining expected profit as well as growth is considered to be partnership (Draijer,
2020). These types are made through doing agreement of partners which includes
authorised details of member, progression of capital, profit sharing and others.
 Joint venture: Joint stock firm are those in which monetary resources are limited but
this drives them towards huge burden of risk. It also develops a kind of venture
capital by sale demanding shares.
 Purpose: Its key intent of private entity is to gain profitability as well as be a leader into
their respective industry. Also, the intent of M&S is to render quality goods and services
to their potential audiences for gaining pre defined profitability and sustainability of
enterprise.
 Legal structure: Marks & Spencer comply the Public limited legal structure and having
huge number of working firm where it render good quality services to its potential
audiences.
Public sector organisation: This organisation is that company which is usually regulated
through government of respective country for rendering product and services and also perform
for societal benefits (Kwon and Cho, 2020). National Health Service (NHS) is taken as the best
example of public sector organisation as it render healthcare services to whole region’s citizens
based on the requirements of health care instead of assessing their payment capacity.
 Vision: Its vision is to coalesce 3 key components as good care, effectual heath and
quality values.
 Mission: Its mission is to delivering quality within services of health care for betterment
of potential audience’s health.
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