Macro Environmental Influence

Macro Environmental
Influence

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Different types and purposes of organisations, public, private and voluntary sectors and
legal structure...............................................................................................................................3
P2 Size and Scope of different types of organisation..................................................................5
LO2..................................................................................................................................................6
P3 Relationship between different organisational functions and their link with organisational
objectives and structure...............................................................................................................6
LO3..................................................................................................................................................8
P4 Positive and negative impact Macro environment has upon business operations..................8
LO4................................................................................................................................................10
P5 Internal and External analysis..............................................................................................10
P6 Strengths and weaknesses and their interrelation with external macro factors....................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment refers to all internal and external factors affecting and influencing
functioning and operations of the business organisation (Gaganis, Pasiouras and Voulgari, 2019).
Environment of business has been mainly divided in two parts that is internal environment and
external environment. External environment further has been divided into two parts that is micro
and macro environment. Internal environment of the organisation consists of factors and elements
within a organisation. These factors are controlled by organisation such as organisational culture,
human resources, structure of the organisation. Micro environment consists of customers,
competitors, regulators, these factors are partially controllable. Macro environment consist of
political, social, cultural environment and this environment and its factors are uncontrollable for
environment, organisation requires modifying internal factors to deal with changes in macro
environment. This report will discuss about business environment and different types of
organisation. This report will also discuss about positive and negative impact of macro
environment on business and interrelationship between internal and external environment. The
business has contexualised
LO1
P1 Different types and purposes of organisations, public, private and voluntary sectors and legal
structure
There are different types of organisation and these organisations operate with different
purposes and their legal structure also differs from each other. These organisations also differ on
the basis of their legal structure, this is also known as business ownership structure. Mainly
business are divided in public, private and voluntary organisations.
Public Organisation
Public organisations are those organisations that operate with purpose of providing social
services. These organisations are not-for-profit organisations and seek to deliver governmental
services and public goods. National Health Service is one of the examples of public organisations.

This is publicly funded healthcare system this means that government provide funds to operate
these organisations through the means of general taxation (Sacchetti and Borzaga, 2020).
Concerned with legal structure NHS is owned by and operated and controlled by UK government
through department of health and social care.
Additionally, legal structure of the public organisations, these organisations has ownership
of either local or state or national government. Organisations when have partnership in that 51
percent or more ownership remains with government.
Private Organisation
These organisations are privately owned organisations. These organisations operate with
the motive of earning and increasing profit and also seek to provide valued goods and services to
public with motive of earning profit. These organisations are important contributors in national
economy and its growth. Tesco, British Multinational retail organisation is an important example
of this type of organisation. Different legal structures for private organisations are sole
proprietorship, partnerships, and limited companies. Tesco is public limited company in which
public buy ownership by means of shares and stake in Tesco. In this legal structure anyone who is
over 18 years of age can buy its shares (Kim and Takashima, 2019). Legal structure of private
organisations can further differ on the basis of size and nature of the organisation.
Voluntary Organisation
Voluntary organisations are another type of organisation in which purpose of organisation
is to operate for helping and benefiting public and society and these organisations. There are
different forms in which voluntary organisations operate, these are for profit, not-for-profit and
semi-profit organisations. Profit organisations are those operate with profit and then this profit
again is invested for running and operating organisations. Not-for-profit is those that do not earn
any profit through organisational activities. Semi-profit organisations are those who only earn a
portion of the profit, this means the goods and services to community are provided at
comparatively less prices. Oxfam is example of this kind of organisation.
. Legal structure of voluntary sector also has different types that are based on membership
and mainly there are trusts, unincorporated associations, company limited by guarantee and