Macro and Micro Environmental Impact on Business Decisions

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BUSINESS AND BUSINESS
ENVIRONMENT
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Contents
LIST OF FIGURES.......................................................................................................................3
INTRODUCTION....................................................................................................................4
TASK A................................................................................................................................... 5
LO1&LO2............................................................................................................................5
TASK B................................................................................................................................. 24
LO3&LO4.......................................................................................................................... 24
POSITIVE AND NEGATIVE IMPACT OF THE MACRO ENVIRONMENT ON THE
OPERATIONS OF THE BUSINESS WITH SPECIFIC EXAMPLES..........................24
INTERNAL AND EXTERNAL ANALYSIS OF TESCO AND BFH TO IDENTIFY
THEIR STRENGTHS AND WEAKNESSES................................................................27
EXPLAIN HOW STRENGTHS AND WEAKNESSES INTERRELATE WITH
MACRO ENVIRONMENT FACTORS.........................................................................29
JUSTIFY THE INFLUENCE OF SWOT ANALYSIS ON THE DECISION-MAKING
OF THE ORGANIZATION...........................................................................................30
CRITICALLY EVALUATE THE IMPACT OF MICRO AND MACRO FACTORS ON
THE OBJECTIVES AND DECISION-MAKING OF THE BUSINESS.......................32
CONCLUSION...................................................................................................................... 33
REFERENCES.......................................................................................................................34
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LIST OF FIGURES
Figure 1: PESTEL ANALYSIS.....................................................................................................22
Figure 2: SWOT ANALYSIS.......................................................................................................28
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INTRODUCTION
The assignment consists of a presentation that focuses on the description of the purpose, size,
scope, objectives and structure of various types of organizations that are a public, private or
voluntary organization that are owned and operated by various people such as sole proprietor,
partnerships, groups of people having common interest, government, etc. There are various
functions of the organization that are interrelated to each other on the basis of activities and
responsibilities to be performed by each department in order to achieve the overall objectives
of the organization with coordinated efforts of different members. The second part of the
assignment is a report that would lay its emphasis on the positive and negative impacts of the
environment of the business using PESTEL analysis and conducting situational analysis of
two types of organization in order to assess their strengths and weaknesses using SWOT
analysis and thus, evaluating the impact of internal and external environment of the business
on the decision-making and the goals of the organization.
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TASK A
LO1&LO2
Slide 1
5

SLIDE 2
6

SLIDE 3
The presentation focuses on the various types of organizations explaining their scope and
structure and objectives and purpose of conducting the business. The different types of
organizations are public sector, private sector and voluntary organizations, each of which has
different objectives and structures. The activities of different organizational functions such as
finance, human resource, marketing, production, etc. are interrelated with each other and
thus, provide various advantages and disadvantages to the business and help in achieving the
desired objectives of the organization.
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SLIDE 4
TESCO PLC: Tesco is a retail sector organization founded by Jack Cohen in 1919 in
England UK. The company offers a broad range of products and services for its customers
that includes furniture, software, clothes, internet services, toys, financial services, groceries,
electronics, etc. being sold in the industry through the supermarket, hypermarket,
convenience store or superstore. The company has provided employment to more than
450,000 people until 2019 and operates its business all over the world with more than 6569
retail stores until 2018.
Vision: The organization aims at expanding and innovating the activities of the business by
enhancing the satisfaction level of the consumers and maintaining good relations with the
employees and the society as a whole.
Purpose: The organization’s purpose is to offer good quality of products and services to the
consumers at reasonable prices to increase the competitive advantage and boost customer
satisfaction.
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SLIDE 5
Objectives of Tesco:
 The company aims at increasing its profitability by maximizing the revenues of the
business.
 To improve the online presence of the company by attracting a large population
through the internet and social media
 To provide maximum opportunities for employment in all the countries where the
business is carrying its operations
Size and scope:
 Tesco ranks third in the world in terms of gross revenues.
 Tesco Plc. Is the ninth largest retail company in terms of its revenues.
 Tesco is the leader of the market having a market share of 28.4% in the UK for
offering groceries in the country.
 The company has the scope of expanding the business and its operations in the United
States.
SLIDE 6
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DEPARTMENT FOR INTERNATIONAL DEVELOPMENT:
The department for international development is a public sector organization formed in 1997
that lays its emphasis on the international development of the organizations by giving
projects to the students to focus on important issues of the country such as poverty, equality
AIDS/HIV, health, sanitation, education, peace, etc.
Vision: The strategic vision of the organization is to obtain gender equality in the country as
the organization states that “her potential is our future”.
Purpose: The DFID aims at eliminating poverty from the country in order to protect the
rights and interest of the society.
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SLIDE 7
Objectives:
• DFID aims at promoting equality on the basis of gender and reducing the rate of death
of children prevailing in the UK.
• The organization aims to assure the protection of the right to education for every child
in the country.
• To improve the health of mothers and to ensure the protection of the environment and
its resources.
Size and Scope:
• DFID comprises of various stakeholders in the organization that includes trade union,
government, shareholders, employees, etc.
• The government of the UK is planning to spend £14.5 Billion in the development of
overseas on an annual basis.
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SLIDE 8
BRITISH HEART FOUNDATION:
The British Heart Foundation is a charitable organization working with the help of a group of
individuals having a common interest. This organization was founded in 1961 by a group of
medical professionals who have completed their degree and are successful doctors but also
working voluntarily for this organization with the aim of saving lives of the people suffering
from heart an circulatory diseases by preventing their disease.
Purpose: The purpose of BFH is to conduct research and identify the causes, cure and
treatment of the heart and circulatory diseases suffered by the people.
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