Business Environment: Types, Functions, and Macro Factors Analysis

This report provides an in-depth analysis of the business environment, focusing on different types of organizations, their structures, and functions. It explores public, private, and voluntary sectors, examining their purposes and legal structures. The report delves into the relationship between organizational functions and objectives, highlighting how they contribute to overall business strategies. Furthermore, it identifies the positive and negative impacts of the macro environment, supported by specific examples. The report also includes internal and external analyses of a specific organization, identifying its strengths and weaknesses using PESTLE and SWOT models, and explains how these factors interrelate with external macro factors. The report also focuses on how the PESTLE and SWOT analyses impact decision-making within the organization effectively.

BUSINESS
AND
THE BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P.1. Explain different types and purpose of organisations; Public, private and voluntary
sectors and legal structure...........................................................................................................1
P.2. Explain the size and scope of a range of different type of organisations............................2
TASK 2............................................................................................................................................3
P.3. Explain the relationship between different organisational function and how they link to
organisation objectives and structure..........................................................................................3
TASK 3............................................................................................................................................4
P.4. Identify the positive and negative impacts the macro environment has upon business
operations, support by specific examples....................................................................................4
P.5. Conduct internal and external analysis of specific organisation in order to identify
strengths and weaknesses............................................................................................................6
P.6. Explain how strength and weaknesses interrelate with external macro factor....................7
REFERENCES................................................................................................................................8

INTRODUCTION
In this documentation, this assignment define about analysis of structure, size and scope
of various kinds of organisations which is concerned to the organisational objective and product
and services effectively. Moreover, this analysis also describe about the explanation the
relationship between various organisational functions and they have links to organisational
objectives and structure effectively. Furthermore, this study also describe about to the advantage
and disadvantages of interrelationship between organisation function and structure as well. Apart
from it, this study refer some identification of positive and negative impact of macro
environment on business operation exercises effectively. This assignment also analyse about
internal and external analysis of specific organisations in terms of recognise strengths and
weakness efficiently. This assignment also define about utilisation of appropriate PESTLE model
to support detailed analysis of the macro environment within the organisation effectively and
critically impacts on both micro and macro level upon the business objectives efficiently while
major decision making process of the organisation effectively. This assignment apply appropriate
SWOT analysis and justification of ow they make great impact on decision-making process of
the enterprise effectively within the organisational environment.
TASK 1
P.1. Explain different types and purpose of organisations; Public, private and voluntary sectors
and legal structure
Varied of organisations are working in the country for different-different kinds of
purpose effectively. Business could be defined as the convertible process in which some skills
and materials is used according to the demands and requirements of consumers and furnishing
effective services as per the request of the customers in the industry appropriately (Chesbrough,
H., 2010). Business environment convey several factors such as human resource, physical and
financial resources, distribution channel, industry trends and regulations, government exercises,
competitors and the economy of the country etc. human resource and physical resources is most
appropriate factor of the organisation in more efficient form. Moreover, as business advisor in
GlaxoSmithKline Plc. Ltd., I need to identify the key factors of all kinds of business and the
purpose of organisation as well.
Profitable organisation: Profitable organisations are those companies, who work mostly
for generating high rate of income to the firm from various industry in the country effectively.
1

They might be concerned with several kinds of industries in country's business environment.
They have crystal clear goals and objectives by which enforce them to make major focus on
developing company's profitability and productivity efficiently. They have proper legal structure
and they work in the country according to legislative provisions of the country as well. This kind
of companies have large number of stakeholders within the business environment.
Public sector organisation: This is an economic entity which furnish varied number of
government services within the business environment. These services might be in educational
sector, healthcare sector and military sector as well (Al-Debei, M. M. and Avison, D., 2010). The
public sector organisations are depended and regulated according to the government norms and
legislative provisions of the company in effective manner.
Private sector organisation: This type of organisations are also major part of economy of
the country and they operated in the industry according to individual and group of people in the
industry in effective form. The government of the country does not have right to govern private
organisation in the country. All control of the organisation must have in business owner
efficiently.
Small sector organisation: This kind of organisation also have major impact on the
economy of the country effectively. Multiple number of small sector business is operating in the
country in more effective way and generating small amount of revenue.
P.2. Explain the size and scope of a range of different type of organisations
It has been seen that, varied types of different-different organisations are running in the
country and generating more profitability in effective manner. There are some examples of these
kinds of organisations in the country in effective form.
Childcare support agency: This is an executive agency in department for work and
pension. This is totally public sector organisation in the company in effective manner so that
each of them can generate more profitability for the country's government efficiently (Zott, C.,
Amit, R. and Massa, L., 2011). The major role of child agency is that, they furnish effective child
care services to needer children's in the country in effective manner. The child care agency in the
UK need to furnish efficient services and provide needed things to each child in the country in
relevant form to those children's who is non-residential parents and they do not have parents.
They make efforts to search their parents in the country effective manner and also find out the
place where they live. Moreover, the child care agency professionals work out how much child
2

maintenance should be paid within the agency services provision in the country in effective
form.
Volkswagen group: Volkswagen group is one of the lead ng player in auto-mobile
industry in the UK effectively and they are furnishing effective and innovative technology in
their product and services according to customer demand in the industry in more relevant form.
This is one of the largest auto-maker and revenue generation company in the country effectively
and they have major motive to deliver quality of product and services to their clients and
customers in the market in effective form so that each one of them can generate more relevant
services in the industry in effective form (Laumer, S., Eckhardt, A. and Weitzel, T., 2010). This
is the biggest size of auto-mobile company in the country and there are wide range of scope in
the industry in order to get success in the industry in more relevant manner and crate extreme
competition in the industry effectively.
Pound land retailer: Pound land retailer is small size of organisation in the UK and tey
need to make development in some areas by which they can generate more effective revenue
from the market in effective manner. The company has 10 employees at the workplace who
operate the retail outlets in London effectively and furnishing efficient retail product and services
in effective manner so that they need to make use of some areas by which they can generate
more relevant services in the market in more efficient ways. The organisation is generating more
effective retail services and generating small amount of revenue from the market appropriately.
TASK 2
P.3. Explain the relationship between different organisational function and how they link to
organisation objectives and structure
Varied of organisation function is functioning in the industry in more effective manner
and they have proper interrelationship in the function of the companies in relevant form. Each
organisation has effective particular hierarchy in the industry in more appropriate manner and
this could be organic and internation in the industry for completion of different objectives in the
industry. As we have discussed above about several kinds of industry, all of they have some of
effective function which must be operated in the industry (Ullah, A. and Lai, R., 2011). They
have separated function according to their business sector in the industry in relevant form.
Moreover, in case of GlaxoSmithKline plc organisation, they have different-different kinds of
functioning in the firm and all the function have different kinds of relationship within the
3

business in respect to completion of each task in the company in relevant form and
accomplishment of organisational goals and objectives in appropriate form. These organisational
functions are Human resource department, research and development department, finance
department, marketing department, production and operational department etc. all these function
of the company have interrelationship by which they can make major impact on the profitability
of the business in more relevant form and some issues by which the company can resolve them
within the business environment effectively (Osterwalder, A. and Pigneur, Y., 2010). The
organisation's top management require ensuring that all functions of the company is running
properly within the industry effectively and make use of some areas by which efficient
development can be get within the industry properly. Finance department of the company need to
make sure that all funding is properly furnishing to each employees and organisational functions
as well as in context of proper running of each issues in the industry in relevant form.
Advantage and disadvantage of interrelationships between organisation function and
its impact on organisational structure
 The major advantage of interrelationship of organisation function is that, they can easily
communicate with each other at the workplace and effective resolve the each issues in the
company in effective form.
 Interrelationship between organisational function assist the business to run each activities
in operational and marketing level efficiently.
 The major disadvantage of relationship between organisation functions is that, they make
interference among various departmental works in the company in effective form so that
efficient development can not get in relevant form (Commander, S. and Svejnar, J.,
2011).
 Disadvantage of interrelationship among business function is that, they affect the working
condition to each other in the company which can increase the rate of the company in
relevant form.
TASK 3
P.4. Identify the positive and negative impacts the macro environment has upon business
operations, support by specific examples
In case GlaxoSmithKline plc organisation, they have major impact on the business
activities and operational level of the firm in the industry in more relevant form. The company
4

has major impact on the macro environment has upon the business operational function in more
relevant form and they need to make use of some areas by which efficient development can be
generate in the organisation effectively (Craig, T. and Campbell, D., 2012). These external
environmental factors make great influence on the organisational strategy and decision-making
process of its professionals within the firm efficiently.
PESTLE analysis of GlaxoSmithKline plc organisation:
Political factor: Political factor of the business also have major impact on the
profitability and productivity of the company in more efficient form. This is a pharmaceutical
company in the country and several kinds of medicines and treatment tools in the industry and
they need to make sure that, their each exercises of the business in running according to legal
corporate norms. These norms affect the operational level and decision making process of the
company effectively.
Environment factor: This is also major external factor for the business in order to make
impact in macro environment of the corporation in the industry in effective form. The
organisational professionals need to make sure that, their all pharmaceutical product and services
is being made in the company according to standard of environment in the firm (Carroll, A. and
Buchholtz, A., 2014). May times they have to reduce the production of the company according to
environment department instruction towards the industry.
Social factor: Social factor is also affect the major function of the company properly in
the industry in relevant form. The business professional need to make decision according to
social welfare across the industry and they need to follow the social norms of the communities
while marking major decision towards the company in the industry in relevant form.
Technological factor: Technological factor also plays major impact upon organisation
function in the industry in relevant form and they need to use in appropriate technological tools
and techniques in order to production of pharmaceutical products in the company in relevant
form. They need to use effective technology in order to increase production level at high stage
(Hillary, R. ed., 2017).
Legal factor: The organisation need to make sure that, they are following all legal norms
and regulation's instruction effectively while running business activities in the industry in
relevant form. Legal factor make great influence on operational functions of the firm and they
need to consider all legal norms in the company in effective form.
5

Economic factor: The business entity also get affected by economic condition of the
country effectively. They need to provide effective product and services at the range in which
each person can afford their products in the company in more relevant form.
P.5. Conduct internal and external analysis of specific organisation in order to identify strengths
and weaknesses
SWOT analysis of GlaxoSmithKline organisation:
SWOT analysis is most necessary thing in order to examine internal strength and
weakness of the organisation in more effective manner. With the assistance of this assessment in
the industry, the organisation professionals need to know that, they have some areas by which
effective analysis of company can be executed effectively (.Chavis, L. W., Klapper, L. F. and
Love, I., 2011).
Strength of GlaxoSmithKline company:
 The major strength of this company is that, they are furnishing effective and quality of
product and services rather than their competitors in the market. The business entity has pool of production level in the industry and they have flexible
hard working employees which increase the productivity of the company efficiently.
Weaknesses of GlaxoSmithKline company:
 The company has major weaknesses is that, they have very small internal market in the
industry and they need to expand it effectively. The industry need to make implementation of innovative technologies in respect of
production of various pharmaceutical medicines at the workplace at effective rate.
Opportunities of GlaxoSmithKline company:
 The government of the country has been increasing its effectiveness in policies of
pharmaceutical companies' operation in the industry in unique method (Wild, J. J., Wild,
K. L. and Han, J. C., 2014).
 The company has very effective framework in the industry and they haver alternative
option to make equation with several other brand in same industry. The company has main opportunity is, the country has strategic hub of pharmaceutical
medicines in the country and they have change to increasing their quality and
effectiveness in the industry in relevant form so that efficient development can be
generated in more relevant form.
6

Threats of the company:
 Its competition in developing countries is increasing in frequent manner. They need to
make use of some strategic approach to compete their competitors in the market.
 This industry has extreme expenses on the research and development department in order
to figure out new medicines for various disease in the country effectively.
P.6. Explain how strength and weaknesses interrelate with external macro factor
The major strength of the company is that, they have major respective employees have
more hard worker employees at the workplace who furnish effective pharmaceutical services in
the company. They are also making efforts in order to assist the company to keep up ahead in the
competition of this complex industry in the country in effective manner (Turban, E., Sharda, R.
and Delen, D., 2011). Their employees are fully dedicated to their hard works in the company in
order to raising production level of the company and also generating more revenue from the
market. It directly makes influences on the external macro factor of the country. This activity
increases the sales of the production in more relevant form. Moreover, the company professional
require to make expansion of their internal market in the industry in more relevant form so that
effective outcomes can be gained in more appropriate form. They need to utilisation of
innovation at the workplace while manufacturing several kinds of pharmaceutical medicines in
the industry in more relevant form. With the assistance of innovation, the company will be bale
to increase their profitability and productivity efficiently.
CONCLUSION
From the analysis, this study concludes that, they have some areas by which
GlaxoSmithKline company can increase their productivity and positive value in the business in
more relevant form. Moreover, it is also concluded that, there are various types of public, private,
profitable and small organisations are running effectively and generating sufficient revenue form
the market in relevant manner. The company has major impact on the external factors of the
industry in the country appropriately.
7

REFERENCES
Books and Journals
Al-Debei, M. M. and Avison, D., 2010. Developing a unified framework of the business model
concept. European Journal of Information Systems. 19. 3. pp. 359-376.
Carroll, A. and Buchholtz, A., 2014. Business and society: Ethics, sustainability, and stakeholder
management. Nelson Education.
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. 2-3. pp. 354-363.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics. 93. 1. pp. 309-337.
Craig, T. and Campbell, D., 2012. Organisations and the business environment. Routledge.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Laumer, S., Eckhardt, A. and Weitzel, T., 2010. Electronic human resources management in an
e-business environment. Journal of Electronic Commerce Research. 11. 4. p. 240.
Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Turban, E., Sharda, R. and Delen, D., 2011. Decision support and business intelligence systems.
Pearson Education India.
Ullah, A. and Lai, R., 2011. Modeling business goal for business/it alignment using requirements
engineering. Journal of Computer Information Systems. 51. 3. pp. 21-28.
Wild, J. J., Wild, K. L. and Han, J. C., 2014. International business. Pearson Education Limited.
Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future
research. Journal of management. 37. 4. pp. 1019-1042.
8