Business Environment Report: Impact of Macro Environment on Businesses

This report provides a comprehensive analysis of the business environment, focusing on public, private, and voluntary organizations. It examines the types, purposes, and sizes of these organizations, with specific examples including McDonald's, Oxfam, and Public Sector Audit Appointments. The report explores the interrelationships between different organizational functions, such as finance, human resources, and marketing, and their links to organizational goals and objectives. Furthermore, it identifies the positive and negative impacts of the macro environment on business operations. The report also includes internal and external analyses to identify strengths and weaknesses, and how these relate to external factors. The conclusion summarizes the key findings, emphasizing the importance of understanding the business environment for successful operations.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Types and Purposes of organisation of Public, Private and voluntary..................................3
P2 Size and scope and range of different types of organisation.................................................5
TASK 2............................................................................................................................................6
P3 Relationship in different organisation functions and link with organisation objectives and
goals............................................................................................................................................6
TASK 3............................................................................................................................................8
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples................................................................................8
TASK 4..........................................................................................................................................10
P5 Internal and external analysis of organisation in order to identify strengths and weaknesses
...................................................................................................................................................10
P6 Strengths and weaknesses interrelate with external factors.................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Business Environment consist of all factors that enables to operate a business smoothly.
For smooth function of business every attribute play a crucial role such as finance for that
organisation have to depend on financial institutions. To operate smoothly in society
organisation have to depend on society and for proper market conditions they require market. To
sell in market it require customers and completion for task requires labour class. So these factors
build environment which play crucial role in organisation existence. These factors are dynamic
and change time to time. In this report chosen organisation of public sector is Public sector Audit
Appointments and private sector organisation is McDonald's and voluntary organisation is
Oxfam. This report elaborate whole about all organisation which report demands and their scope
in future (Cantwell and et. al., 2010). It also explains different functions within organisation and
their interrelation with one another. Moreover it give knowledge about Micro and macro factors
that affect to organisation.
TASK 1
P1 Types and Purposes of organisation of Public, Private and voluntary.
Business environment consist of factors which enable to organisation to compete in
dynamic environment and help to achieve business objectives and goals of organisation. So
business environment play a crucial role in organisation because with help of factors
organisation can grab a big market share. There are three types of organisation which operates
that are public, private and voluntary organisations.
Private sector organisation:

Private sector is contribute in economy that' main motive to earn profit and run by
company and individuals and not owned by government. It encompasses all profit associated
activities which help to get support and profit. Main motive of private owned organisation is to
earn revenue and employs large no. of workers than public sector. Businesses in private sector
drives towards low prices than while competing with customers (Carroll and Shabana,2010 ). In
this report private sector organisation is McDonald's is an American company that deals in food
and beverages sector in multinational markets. Its headquarter is in USA. Legal structure of
private organisation are as follows :-
 Sole proprietorship: It is simplest form of business in which one can operate a business.
It is not a legal entity and sole person is responsible for whole debts and responsibility in
organisation.
 Partnerships: Partnership is a formal agreement between two or more than two partners
to operate in business. Various partnership agreements are passed between parties in
which responsibilities and profit are share in them (Cavusgil and et. al., 2014).
Purpose of McDonald's:
McDonald's has largest food chain in market. It main focus on providing experience to
customers and to provide these experience it work on global strategies to attain targets. The
other motive of McDonald's is to supply food and beverages with help of sustainability,
freshness and with accountability in market. Today consumers become more health conscious so
they have to ready and deliver healthy food chain that increase their market share in market
(Chavis, Klapper and Love,2011).
Public sector organisation:
Public sector is usually consist of organisations that owned and operated by government
and provide services to citizens. Funds raised by government organisation through many sources
such as tax, fees and other transfers from other government levels. In this report chosen public
sector organisation is Public sector Audit Appointments which is replaced by Audit commission
that are work till 1 April 2015.
Purpose of Public sector auditing:
Work and purpose is unbiased assessment of that public resources is fully utilised in
proper manner and effectively utilised. With improve workings and bring confidence in
shareholders.

In legal structure of public sector consist of local, state and central government.
 Local government: Local government is public administration in cities, villages and
towns.
 State government: A state government is subdivision of federal in a country which
accomplish powers and policies in country.
 Central government: Central government is responsible and have power to over a large
area or whole country.
It provides growth in business environment with help of functions and attributes in firm and give
goals and missions to reach its objectives.
Voluntary organisation:
Voluntary organisation is work for social cause and their primary motive is not profit
making. They work for needy people and alleviation of poverty, neglected, orphan etc.
Oxfam is the voluntary organisation of UK, associated with 20 which work for social cause of
public and its primary goals is not earning profit but to serve people (Chesbrough,2010).
Legal structure:
Trustees:
Trustees consist of person or firm that holds property for benefit of third party.
charitable foundations: charitable foundations are those who work for charity purpose and devote
for social cause.
P2 Size and scope and range of different types of organisation
Size and scope of different type of organisation consist of opportunities for future in
market. In private sector McDonald's is well established brand name through out whole world in
food and beverages. Size of its business consist of world's leading food and beverages in world
consist of approximately 30,000 restaurants and serving 52 million customers in 100 countries
approximate world wide.
Mission and vision:
McDonald's corporate mission is respond to change in global environment and faviorate
place and way to eat and drink.
Scope of McDonald's:
McDonald's is a leading organisation in field of food and beverages and it aimed to
expand its market share by launch some new products so that it can beat its competitors. Today

consumers become more hygiene and health conscious that create both opportunity and hurdles
in market. Hence McDonald's plan to expand its market share by launching some new products
in market to expand its healthy drinks and food varieties so that consumers base should be
increase (Chow and et. al., 2011).
Size and Scope of Public sector audit appointments:
PSAA is responsible to appoint to auditors and local police and government bodies in
organisation. It has work at 495 principals and 500 local government and police bodies within
organisation. In scope of public sector audit appointments consist of implement new rules and
policies n regard to benefit of organisation development and benefits.
Mission and vision:
To liberally audit and report on basis of public resources of country and people and use as
an example. And vision is to become an independent apex institution that provides
accountability, transparency and confidentiality.
Size and scope of Oxfam:
Oxfam has confederation with 90 countries in whole world and all work to attain goals
and objectives in social stable of people (Commander and Svejnar,2011)
Mission and vision:
Vision of Oxfam is world without poverty and degradation. They want to create world
that treated everyone in equal manner.
Mission of Oxfam to provide lasting solution of in respect of poverty. They want to bring
changes and bring free environment from poverty.
In scope of Oxfam they plan to eradicate poverty and other hindrances in economic stability of
country. So it work on to help poor and disable people in arena. This help to enhance economic
stability in economy and support in enhancement of living standard.
TASK 2
P3 Relationship in different organisation functions and link with organisation objectives and
goals
Organisation structure:
Organisation structure consist of hierarchy of power and responsibilities in organisation
which directs whom to inform and inquire and who have to report in organisation. Organisation

structure play a very crucial role in McDonald's in achieving goals and objectives by understand
roles and responsibilities of every member in organisation. There are many types of
organisational structure in organisation such as functional structure, functional structure, matrix
structure and flatarchy structure (Drucker, 2017).
In typical business organisation have different departments and functions which
contribute in accomplish of organisational goals and objectives. Functions are as follows:
Production, research , purchase, Human resource management, marketing, sales and finance
department.
Finance department:
Finance department connected with managing of money. In functions of finance
department consist of planning, organising, auditing and accounting of money and resources in
organisation (Gecevska and et. al., 2010). It usually accountable for making statements of
finance department. Finance department accountable for all works and behaviour related to
accounts and directly connected with other departments. Finance department carry out data and
information from other departments and helps in sum up it helps in measure profits and revenue
with help of expenditures in McDonald's. Finance department also connect with marketing
department that all sales and marketing expenses connect with finance department and they
calculate it and then report higher authorities.
Human resource department:
Human resource department is work for well being of manpower in organisation. In
responsibilities of HR consist of recruiting, selection, payroll, compensation, hiring and firing of
employees in organisation (Iskanius and et. al., 2010). It plays crucial role in organisation
development and increase efficiency of organisation that increase its value in McDonald's. HRM
department help to finance department by giving information about employees and Finance
department also give information about salary and other benefits that helps in revenue
calculation to finance department about employees that are useful for both departments.
Marketing department:
Marketing department enables to promote goods and services in market. It provides
obligatory research and findings that requires for grab potential consumers. Strong marketing
department helps to advertise product and make publicly known and faviorate in eye of
customers. So marketing department is very important part of department which helps to increase

sales and productivity in market. Marketing department helps to both departments giving
information to finance department by accessing demand of product and to know about that
adequate finance is available or not (Klapper, Lewin and Delgado, 2011). So it helps to know
that particular strategy can be implemented or not. Hence there is close relationship among
departments in McDonald's.
TASK 3 Covered in PPT
TASK 4 Covered in PPT
CONCLUSION
From above report it has been concluded that business environment is crucial factor while
operating in competitive environment. In business environment consist various factors such as
market, competitors, customers, labour and employees and society which enables to McDonald's
to compete in business environment and lead in fierce market conditions. Above report focuses
on different organisation which operating in different fields and their role in economy. Moreover
it emphasise on scope and contribution of different organisation which deal in market. It also
explains external and internal factors of McDonald's to access its market share and its impact on
strengths and weaknesses of McDonald's by concluding it that factors both internal and external
play very important part in McDonald's.

REFERENCES
Books and Journals
Cantwell, J. and et. al., 2010. An evolutionary approach to understanding international business
activity: The co-evolution of MNEs and the institutional environment. Journal of
International Business Studies. 41(4). pp.567-586.
Carroll, A. B. and Shabana, K. M., 2010. The business case for corporate social responsibility: A
review of concepts, research and practice. International journal of management reviews.
12(1). pp.85-105.
Cavusgil, S. T., and et. al., 2014. International business. Pearson Australia.
Chavis, L. W., Klapper, L. F. and Love, I., 2011. The impact of the business environment on
young firm financing. The world bank economic review. 25(3). pp.486-507.
Chesbrough, H., 2010. Business model innovation: opportunities and barriers. Long range
planning. 43(2). pp.354-363.
Chow, A. T., and et. al., 2011. Broadband network with enterprise wireless communication
system for residential and business environment. U.S. Patent 7,944,948.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics. 93(1). pp.309-337.
Drucker, P. F., 2017. The Theory of the Business (Harvard Business Review Classics). Harvard
Business Press.
Gecevska, V., and et. al., 2010. Product lifecycle management through innovative and
competitive business environment. Journal of Industrial Engineering and Management.
3(2). pp.323-336.
Iskanius, P., and et. al., 2010. The traditional industry sector in the changing business
environment–a case study of the Finnish steel product industry. International Journal of
Electronic Customer Relationship Management. 4(4). pp.395-414.
Klapper, L., Lewin, A. and Delgado, J. M. Q., 2011. The impact of the business environment on
the business creation process. In Entrepreneurship and Economic Development (pp.
108-123). Palgrave Macmillan UK.
Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Storey, D. J. and Greene, F.J., 2010. Small business and entrepreneurship. Financial
Times/Prentice Hall.
Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Trkman, P., 2010. The critical success factors of business process management. International
journal of information management. 30(2) pp.125-134.
Welford, R., 2013. Hijacking environmentalism: Corporate responses to sustainable
development. Routledge.
Wild, J. J., Wild, K. L. and Han, J. C., 2014. International business. Pearson Education
Limited.Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a handbook
for visionaries, game changers, and challengers. John Wiley & Sons.
Wirtz, B. W., Schilke, O. and Ullrich, S., 2010. Strategic development of business models:
implications of the Web 2.0 for creating value on the internet. Long range planning.
43(2). pp.272-290.

Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future
research. Journal of management. 37(4). pp.1019-1042.