Business and Business Environment: Macro and Micro Analysis Report

This report provides a comprehensive analysis of the business environment, examining different organizational types (profit, non-profit, non-governmental) based on size, scope, and purpose. It explores the relationships between organizational functions (HRM, marketing, IT, finance, customer service) and structure, including functional, matrix, and divisional structures. The report also delves into macro-environmental factors using the PESTLE model, assessing their impact on the retail sector. Furthermore, it applies SWOT analysis and Porter's Five Forces to evaluate the internal and external strengths and weaknesses of the UK supermarket sector, demonstrating their influence on decision-making processes. The report covers both positive and negative impacts of various factors, offering a detailed examination of the business landscape.

Business and Business Environment

Table of Contents
INTRODUCTION..........................................................................................................................3
SECTION 1 ....................................................................................................................................3
Comparison between the different type of organizations. .........................................................3
Size and Scope of organizations.................................................................................................5
Discuss the relationship between the different organizational function and how they link to the
organizational structure and objectives. .....................................................................................6
PART 2...........................................................................................................................................8
a). Discuss about the Pestle model to analyse the positive and negative impact the macro
environment in the enterprise operations. ..................................................................................8
b). Describe the internal and external strength or weakness of retail sector by using the
SWOT/ Porter's five forces to analysis and also justify that how they influence the decision
making. .....................................................................................................................................10
CONCLUSION.............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment is a collection of all type of external and internal factors such as
expectations, employee, demand management and consumers needs by the government. These
are different type of factors that affect the functionality of organization and how it work
indirectly and directly. This essay will discuss about the different kind of organizations such as
public, profits and non-profit based on their scope, size and purpose. Furthermore, this
documentation will describe the interrelationship between the company structure and functions
within the enterprise. Moreover, it will discuss about the pestle model to analyze that how macro
environment impact on the UK retailer sectors. This report will describe the SWOT analysis and
porter's five forces to analysis the UK Supermarket to identify that how they influence in the
decision making.
SECTION 1
Comparison between the different type of organizations.
Profit organization Non Profit
organization
Non- governmental
organization
Definition A profit organization
is a type of
corporation that
generate more money
and also expanded the
business across the
world (Aydiner and
et.al., 2019).
A non profit
organization is a group
for purpose other than
generating profit and
in which no part of
income distributed to
its officer and other
members.
A non-governmental
organization is a type
of non-profit and
citizen based group
that functions
independently of the
government.
Business purpose The main goal and
purpose of profit
organization to make
money or profit. It
allow the business to
expand its desire
operations in different
The purpose of non
profit organization
raise the money but
they spend it to further
their mission and not
benefits. This
organization has
The purpose of NGO
to improve the state of
natural environment
and also encourage the
observance of human
rights.

location. provided the facilities
and services to
communities or
society.
Legal structure The profit enterprises
are generally used the
different type of legal
forms such as limited
liability and
unincorporated etc. In
unincorporated firm. It
can be sole proprietor
in the partnership and
it has owned by one
person. It is equally
responsible for the
enterprise.
Non profit
organization allow the
enterprise to protect its
staff and directors at
certain type of liability
(Becker, 2018).
They are following the
specific legal policy
and procedure to
maintain the enterprise
operations in proper
manner.
This organization can
be registered as
societies, trust and
private limited which
established the legal
structure where the
staff member can help
the other people
regarding the legal
matter.
Example John Lewis
Partnership
Automatic Weapons
Establishment
Europe Against Drugs

Size and Scope of organizations
Micro Small Medium Size Large enterprise
Size Micro enterprises
are less than 10
employee
working within
organization.
Small enterprises
are 10 to 49
employee
working within
organization
(Begg and et.al.,
2018).
Medium size
scale enterprises
are 50 to 249
employees
working within
organization.
Large enterprise
employ 250 and
more employee
working within
organization.
Scope The scope of
micro enterprise
will cover the
large range of
activities which
require less
sophisticated
innovative
technology.
Small enterprises
will have limited
technology to
explore their
business
according the
facilities and
services.
Medium scale
enterprises will
use the
appropriate
technology,
equipment and
other resources
that help to
maintain their
services.
Large scale
enterprise will
cover the
different type of
operations and
functions which
required the
proper innovation
in the
development.
Market share This enterprise
will operate the
minor amount of
capital and
specialize in
providing the
product for local
nearby areas.
Small enterprises
will operate the
small amount of
capital and
specialize in the
providing the
good and services
of particular city.
Medium
enterprises will
operate the
medium or
average level of
amount in the
capital.
Large enterprises
will operate the
wide range of
enterprise and the
economy of
country depend
on the business.
Growth and
Sustainability
Micro enterprise
will expand their
business in local
Small enterprise
will expand the
business in one
Medium scale
business will
explore the
Large scale
enterprise will
expand the

areas. city. enterprise in one
county.
business across
the world.
Discuss the relationship between the different organizational function and how they link to the
organizational structure and objectives.
Organizational structure and objective are the important factors that considered to
increase the productivity and profitability in marketplace. There are different type of functions
and operations performed by the organization and they always link with the other functions in
terms of objectives (Calabrese and et.al., 2018).
Organization function is a type of process and set of activities that carried out within the
department of enterprise. There are some common functions include Human resources, customer
service, marketing, information technology and warehousing and finance etc.
Human resource Management- It is the central part of organization that performed
different activities such as labor relations, development, staffing and health or safety etc. It is
important for organization to maintain all the details of employee and new candidates in proper
manner. HR manager is coordinates with the marketing team to determine the need and
requirement of consumer in marketplace. In this way, it is creating a relationship between HRM
and Marketing team.
Marketing- It is the most common approach to promote the products and services in
marketplace. It is helpful for organization to determine the potential sources for the purpose of
promotions. They operate on and then marketing them by differentiating from the other
products. Marketing team has coordinated with the IT team to use the different type of
marketing tool and platform. It help in the promotion to share information of product in
marketplace.
Information Technology- IT department has performed different functions to install and
maintain the computer network system within organization. Information technology has become
the major driving force in the organization which seeking to get IT application which help them
sell their products and services effectively. It is interconnected with the marketing team to use
the tools for increasing the marketing concepts (Cepel and et.al., 2018).
Financial – It is a part of organization to calculate the overall estimation and budget of
project. Financial management is concerned about the planning and controlling the financial

resources. It involves to utilize the fund which are necessary for the efficient operations and
functions. Finance manager has decided where to put the organization funds and their decision
related to the management of working and making decision of budgets etc. they also connected
with the human resource management to easily determine the requirement of investment in
particular products and services. In this way, it is beneficial for organization to increase their
fund because they understand where the profit earn through global marketplace.
Customer service- It is important of organization to provide the customer services
where the employee is directly communicated with the consumer to resolve their queries and
issues regarding the items (Gaganis, Pasiouras and Voulgari, 2019). It help the consumer with
complaints and questions, give the customer information related the products or services. It is
possible when the employee's interlinked with the marketing team to determine the review and
view point towards the services. In this way, it has established the relationship between the
marketing and consumer services.
Organization Structure:
The organizational structure determines that how the power, roles and responsibilities are
assigned, coordinated and controlled in proper manner. It help to maintain the information flow
between the different level of management within organization. It can be divided the
organizational structure such as divisional, functional and Matrix etc.
Functional Structure-
This type of structure is based on the enterprise which being divided up into the small
groups and also provide the specific role. Each department has manager and leaders to maintain
the level of business operations and functions.
Matrix Structure-
It is a type of hybrid structure when the employee may create report depend on the
situation and conditions. In this way, it can easily share the knowledge across the different
functional divisions which allows for the proper communication between workers.
Divisional Structure-
Tesco uses the divisional structure to organize the different type of enterprise activities
such as customer service, marketing etc. This organization organized on the divisional line that
could operating the groups of nations. Each division contain the complete set of functions. This
approach will help in the decision making at the divisional level to react more quickly. This type

of structure useful when the organization has many markets, products and regions etc. it causes
the higher costs and generate small results or outcome.
PART 2
a). Discuss about the Pestle model to analyse the positive and negative impact the macro
environment in the enterprise operations.
The retail industry is the fastest growing enterprise that can use the modern technology
to increase their productivity and profitability in marketplace. Pestle analysis is a tool or frame
work that can use to analyse or monitor the macro environment factor. It may influences to
impact on the performance of business (Geissdoerfer, Vladimirova and Evans, 2018). It help to
understand the positive and negative impact on the macro environment in the organization.
Political Factor-
The government has developed the multiple legal forms related the laws and regulations
to carry the enterprise activities. The political activities in the retail sector affect in their running
position and other impact on the sale or purchase of retail product in marketplace. There are
some trends in the retailing and shopping of products which are depended on the debates, the
government tasks through its political process.
On the other hand, political factor may positive impact on the retail business because the
organization has used the employment laws to safeguard of employee. It is needed to consistent
supply the safety regulations which positively impact on the business process.
Economical Factor-
If the economic condition and situations within the nation is strong because it help to
control the flow of enterprise and run will be smooth. The retail business depends on the supply
chain when government has made an appropriate regulation of retail products and services
(Hamilton and Webster, 2018). In this way, it is positively impact on the business operations and
functions.
On the other hand, The situation of economy has directly impact on retail sector when it
affects with the change in economic stabilities of nation. It is negatively affect foreign exchange
due to the recession as buying the habit of customers. In this way, it has decreased the profit rate
of retail industry.

Social Factor-
Social Factor is changing the current life style of shopping and retail enterprise because
the consumer demand has been transformed and also change their habits. In this way, it is
negatively affect the business profitability and productivity in global marketplace.
The government has created the social norms regarding the rate of population growth,
income distribution which affect the business (Ifinedo, Pyke and Anwar, 2018). It help the retail
sector to change their style of products to maintain the durable packing and excellent availability
on time. In this way, it is positive impact on the retail business to increase the demand in global
marketplace.
Technological Factor-
This is the time of technological changes in different aspects of life. The retail sector use
the modern technology to expand their business for the purpose of invention and development.
The retail sector has developed its websites to receive the online order. In this way, it is
positively impact on the enterprise to increase the buying, selling and weighting of products.
Sometimes, it negatively affect the retail enterprise because online website has been
crashed due to the overloaded. Many consumer has specified mind set related the privacy and
security so that they cannot buying the product through online website.
Environmental Factor-
The retailers may uses the multiple form of energy and it become conscious about the
change of environmental. The product provided through the retail stores are prepared according
to the environment so that they affected with changing the trends of environment. In this way, it
is negatively impact on the health (Kasemsap, 2018). The government imposes to ban in
different type of products related the gases and sprays. It can affect the human body.
On the other hand, the retail enterprise should follows the proper environment rules and
regulations which are made to secure or protect the life of people. In this way, it is positively
impact on the consumer and employee therefore, the retail industry will be expanding the
business across the world.

Legal Factor-
There are different type of legal factors that may affect the retail industry in positive
manner. It useful to save it from the smuggling of product and manipulation. The government
has determined the legal implication and also check the illegal issues of retail industry. This
industry has allows to implement the customer protection regulation and procedures for
providing equal rights. In this way, it keep to maintain the environment conditions and ensure its
safety policy in proper ways.
On the other hand, The Legal factor is negatively affects the enterprise as a consequences
because direct relation with the government laws. It plays important role to crack down on the
misinformation in the product discounting. In this way, consumer may be confused from
changing the price without informing.
b). Describe the internal and external strength or weakness of retail sector by using the SWOT/
Porter's five forces to analysis and also justify that how they influence the decision
making.
SWOT Analysis
SWOT Analysis is a type of strategic planning technique that can help to identify the
strength, weakness, threat and opportunities related the business in the competitive global
marketplace (You, Dal Bianco and Amankwah-Amoah, 2019). By using SWOT analysis, The
Tesco look at the weakness, strength and opportunities which are the most important part of
business to handle negative or positive situation in proper manner.
Strength
It is the starting step of SWOT analysis in Tesco which identify the strengths. The
possible strength may be the financial backing of it has plenty in the access of bank loans.
Another strength of Tesco is that when it may provide the cheaper wholesales products to the
consumers. In this way, client can easily compare the product to another retail firm.
Weakness
A Tesco should determine the most intense weakness through the SWOT analysis . In
global market, the retailer has checks the brand image and competition in global marketplace. In
this way, it can determine the lack of defined place in the customer minds. Generally, it has
expanding the all market segments which has no competition advantages to the retailers.

Opportunities
The Tesco is finding the key value opportunities by using SWOT analysis. It also check
the review of organization's market research as well as sale forces. Opportunities may include
the consumers those who have not fulfilled their need and requirement (You, Dal Bianco and
Amankwah-Amoah, 2019). It is the greatest opportunities to give the products and services
according to their demand. Tesco added some more value in the service to increase the market
share through the analysis.
Threat
Tesco has found the certain threats which includes the demand of consumer, price wars
and decrease the profitability due to recession. It also increases the competition in global market
which affect the retail business. Another threat, even it has changed the shopping habit of
consumer that affects on the retailers in marketplace.
SWOT analysis for decision making
SWOT analysis help for retail industry in the decision making because it can easily
identify the strength, weakness, threat and opportunities of enterprise. It is integrated with the
retailer to consult with the potential manager to complete SWOT analysis on the business
process. It has suggested and justified that retail manager's takes the better decision regarding
the business development or growth (You, Dal Bianco and Amankwah-Amoah, 2019). In this
way, it always influence the potential manager to handle the business tasks and implement
concept through the better decision.
Porter's Five Forces
Michael Porter's Five forces model always help in identifying the Tesco attractiveness
and also analyzing the opportunities or growth in the competitive marketplace. It is a type of
strategic tool that can use to determine the potential aspects of business.
Buyer power
It is the initial step of bargaining power of buyers those who can choose to push down
the prices. In case of retailers, buyer power has relatively large force while products are
generally consumer with the limited direct bargaining power of buyer.
Supplier Power
In Tesco, the supplier power is relatively small because many other organization source
the product through manufacturer and they receive the profitability. Supplier has limited control

over tesco so that they can easily swapped out. In this way, it has generated the low price of
inputs and also close up the global development.
Competitive Rivalry
Tesco is the fastest growing sector so that it easily analyze the intense competitive
rivalry. Tesco has selling the large number of product and also same type. Nowadays, there are
little innovation in the space (You, Dal Bianco and Amankwah-Amoah, 2019). In this way,
market has becoming saturated with the same type of products. This organization is very
difficult to maintain and becoming a low level.
Threat of New Entrants
The New retailer can enter in the marketplace and compete according to the location,
convenience and specialty. In this way, the new entry of retailer is easily achieved the presence
of giants such Tesco
Threat of Substitution
The threat of substitutes has weak intensity that affects the environment of Tesco. It also
offers the wide range of goods and services but have no substitutes. Moreover, the external
factors has lower variety of substitutes which makes difficult for customer to move towards the
another retailer.