Impact of Macro Environment on Business Operations: A Case Study of Next PLC

Unit 1 - Business and
The Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK1.............................................................................................................................................4
P1) Discuss different types and purpose of organisation............................................................4
P2) Size and Scope of different organisations............................................................................5
TASK2.............................................................................................................................................7
P3 Discuss interrelationship among different organisational departments and how they link to
organisational objective and structure.........................................................................................7
TASK3.............................................................................................................................................9
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples................................................................................9
TASK 4..........................................................................................................................................11
P5) Conduct a SWOT analysis of organisation ........................................................................11
P6) Explain the inter-relation of strengths and weakness with external factors.......................12
CONCLUSION..............................................................................................................................14

INTRODUCTION
Business sector is wider and broader which is increasing at rapid scale. Due to impact of
environment business practices are adopted. Business environment is defined as concept which
comprises of internal and external and internal environment that impact organisational structure.
(Abdulaali, 2018). Main purpose of this report is to understand the impact of business
environment within enterprise. Next PLC, a British multinational firm headquartered in U.K.
The firm is located globally & has been operating at both national and international level. NHS
is a public sector company that aims to render effective health care services to individuals within
UK. Further, Oxfam is taken as a voluntary organisation that works to create huge social impact
within country. It has an aim to minimize poverty and provide better lifestyle to individuals
within nation. This report comprises of different types of organisations, size & scope of
enterprise, relationship between organisational functions & link to objectives, positive &
negative impacts of macro environment, internal & external analysis and inter-relation of
strength & weakness with external macro factors.
TASK1
P1) Discuss different types and purpose of organisation
Private-
Companies that are started with the purpose of profitability are known as Private
organizations. These can be undertake in the form of sole proprietorship, partnership, company
and many more. For instance, Next Plc is a private company that functions within UK market by
providing a quality goods in order to earn potential profit margin (Alaloul, 2017).
Purpose- The main aim of these entities is to earn higher revenue and earn higher
profitability by minimizing overall cost. In context of Next plc, the motive of organisation is to
attract more number of buyers in order to sustain in the market place for a longer period of time.
Legal structure-There are different legal structure is used in different companies. It
demonstrates the authority of top management executives to take business decisions that need to
be follow by subordinates. It is analysed that board members of Next Plc take effective decisions
and communicate it to others to ensure smooth functioning of business. It is analysed that Next
PLC uses hierarchical organisational in which it provides authority and responsibility to

employees as per their position within company. In addition, here employees are allowed to give
necessary suggestions and feedbacks to take effective decisions.
Public-
These entities are managed as well as controlled by government and higher authorities of
country to ensure the well being of society. There are several organisations are undertake by
government in different fields such as defence, education, health and many more with the aim to
serve the society. NHS is a public company that was situated in 1948 to provide better medical
facilities to citizens within country.
Purpose-Public organization are started of society and their upliftment. In context of
NHS, the objective of entity is to render effective health facilities to individuals in order to
improve their standard of living (Allen, 2016).
Legal Structure-These companies are controlled by government bodies to ensure overall
societal well being thus all the decisions are taken by higher authorities of NHS to operate
business effectively. It need to be follow by employees in prescribed way so that they perform
assigned task in an efficient manner (Bao, 2019). NHS is an independent body that takes its own
decisions without any interruption of Department of health. It is trust which is going to be
acquired by NHS foundation by trust by 2016.
Voluntary-
It is also known as non profit organisations that are undertake by individuals to create
huge social impact. These entities are initiated by those individuals who have the zeal to serve
society. Here, people with similar aim come and work together to serve the nation. For instance,
Oxfam, is a voluntary company that was started in 1942 and works through ample of charitable
and trust institutions within nation (Ch, 2016).
Purpose-The main aim of these companies is to create the huge social impact by
providing them better facilities to people. It ensures that all individuals within country get basic
necessities and works to improve their standard of living. In this context, Oxfam takes
appropriate steps in order to provide necessary services to needy people so that they get a better
life style.
Legal Structure- Oxfam is owned by trustees who are responsible for its liabilities and
various activities. It was founded by non governmental bodies and operated by trustees in order