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Positive and Negative Impact of Macro Environment on Business Operations

   

Added on  2020-12-26

17 Pages5221 Words54 Views
Business And BusinessEnvironment
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Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1 ...........................................................................................................................................1P.1 Different types and purpose of organization.........................................................................1P.2 Size and scope of different type of organizations.................................................................3TASK 2............................................................................................................................................5P3. Relationship between organisational functions and their link with structure of organisation.....................................................................................................................................................5TASK 3............................................................................................................................................8P4 Positive and negative impact of Macro environment on Business operations.......................8P.5 Internal and external analysis to identify strength and weakness.......................................10TASK 4 .........................................................................................................................................12P.6 Strengths and weakness are related with external macro factors .......................................12CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................15
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INTRODUCTIONBusiness and business environment consists of different internal and external factorswhich can affect the company in drastic manner (Andersson, Forsgren and Holm, 2015). Hencecompany has to create strategies and policies so that firm can adopt these factors. This also helpsthe organization to earn more revenues and enterprise can increase the market share. As a resultbusiness can give competition to other firms and company can also expand their business.Assignment describes about the Skoda Autos which is a auto mobile manufacturer firm. It wasestablished in U.K. in 1895. Report explains about the different types, size and scope of variousorganizations. It also discusses about interrelationship of various functions in company and theirrelation to organizational structure. It also describes about various contemporary examples todemonstrate both positive and negative impact of business environment on the businessoperations. It also explains about internal strength and weakness of specific business and theirrelation with external macro factors. TASK 1 P.1 Different types and purpose of organizationBusiness environment consists of different external and internal factors which impact thecompany. Hence firm has to create effective strategies and policies so that company can adoptthese factors. This increases the efficiency and effectiveness level of organization. Henceenterprise can increase their production and can earn huge profits (Business environment, 2012).This also helps the organization to enhance the market share (Botha, Kourie and Snyman, 2014).Various enterprises have different purpose and hence all create unique and distinct policies tobecome the market leader. Types and purpose of different organizations are described below:Type Overview PurposeLegal structure Skoda Auto is aprivate limitedcompany whichoperate freely inbusiness environment.These companies haveless power ascompared to publicSkoda Auto is aprivate auto mobilemanufacturercompany. It is limitedby liability companyand they do not haveproper directions towork and forTheir main purpose isto become marketleader and expert sothat firm can satisfy allcustomers. It helps thecompany to earn moreprofits and to enhancethe market share.There is soleproprietorship inwhich a single personperforms all activitiesand share the profits orlosses. Limitedcompany is limited byshares or by guarantee.1
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companies. These firmare limited by debt,equity etc. performing theoperations. It is crucialthat company isregisteredincompanies Act. Thishelps the organizationin maintaining positiveimage in minds of allusers and in society. Hence organizationcan easily accomplishtheir short term targetsand objectives. Thishelp the company tomaintain competitiveedge on other firms. It is of three typespublic, pr8ivatecompany limited byshares, privatecompany limited byguaranteed.Partnership is a legalentity between two ormore persons whoshare profits andlosses. Skoda Autosfollows partnershipbusiness and companyshares the profit andlosses with each other.There are some partieswhich can deal withsuch kind of businesssuch as school, legalauthority etc. NHS is a publiccompany which isowned and controlledby Govt. sector. It isnot a private companyand their main work isto solve all issuesrelated to all people.They have a singlemotive that is toprovide effectiveNHS is publiccompany which iscontrolled by Govt.sector. It wasestablished in 1944 byHenry Willink in U.K.It provides effectiveservices to all people.Itselectsapproximately 1.6million and had budgetNHS main purpose isto improve the qualityand productivity andstop distracting theclinical disciplineswithnoncareproductive activities.Company also wantsthatpropermanagement,contractualism andLegal structure isdivided into 3 classes:Central Govt.: Powerand authority ofcentral Govt. isdesignated at differentgrounds. State Govt.: It helps ineffective functioningor working of businessactivities towards state2
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