Business Environment Report: Macro Factors and Organizational Analysis

This report provides a comprehensive analysis of the business environment, focusing on public, private, and voluntary organizations. It begins by defining the business environment and its impact on various business functions. The report then explores the characteristics, legal structures, purposes, and stakeholders of public (Crown Prosecution Services), private (Marks and Spencer), and voluntary (Oxfam) organizations. It examines the scope and size of these organizations, highlighting their key features and objectives. Furthermore, the report delves into the relationships between organizational functions, structure, and objectives, along with the positive and negative impacts of the macro environment on business operations. The analysis extends to internal and external evaluations of specific organizations, including their strengths, weaknesses, and the interrelationships between these factors and external macro factors. The report concludes by summarizing key findings and providing references to support the analysis.

Business and the
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Several types and purposes of organisations like public, private and voluntary sectors and
legal structure as well..................................................................................................................1
P2 Scope and size of a range of different types of organisation.................................................3
TASK 2............................................................................................................................................5
P3 Relationship between different organisational functions and how they link to
organisational structure and objectives.......................................................................................5
TASK 3............................................................................................................................................7
P4 Positive and negative impacts the macro environment has upon business operations with
examples......................................................................................................................................7
TASK 4 ...........................................................................................................................................9
P5 Internal and external analysis of specific organisations to analyse strength and weakness.. 9
P6 How strength and weaknesses are interrelate with external macro factors..........................10
CONCLUSION..............................................................................................................................12
REFERENCE.................................................................................................................................13

INTRODUCTION
Business environment refers to the different types of internal and external factors which
generally comes under the clients, employees,suppliers, supply and demand, owners, innovative
technologies, market trends, changes in economies and so on. These assorted factors directly
affects entire functions and several management activities of an organisation along with it focus
that how firms are working by focusing on environment business situations (Hilton and Platt,
2013). Therefore, business and the business environment is very helpful approach in order to
identify different opportunities in business in order to increase entire performance, profitability
of business, growth etc. This assignment is based is based on public (Crown Prosecution
services), private (Marks and Spencer) and volunteer (Oxfam) organisations in order to known
various size, scope and structure of firms. Along with this, interrelationship of various functions
together with positively and negative influence impact on business operations. At last, internal
strength and weakness of particular business and its interrelationships with external macro factor
will get discussed.
LO 1
Several types and purposes of organisations like public, private and voluntary sectors and legal
structure as well.
Within competitive world there are are different types of firms and business entities that
plays significant role at marketplace and gives better working opportunities to economy. With
the help of this they can achieve its targeted goals and objectives in a proper manner. There are
different types of organisation those are going to be discussed below:
Private organisation:
These firms and organisation considered as the corporation, person, partnership or agency
which are not controlled and managed by a public and make for a profit as well. In order to better
understanding of this concept there is Marks and Spencer has been selected as a private firm
which is a British multinational retailer and headquartered in London, UK. It was formed in the
year of 1884 by Michael Marks and Thomas Spencer (Bharadwaj and et. al., 2013). This brand
has their own unique brand identity at marketplace which is working with large number of
people to achieve organisational goals and objectives. On the other side as they do not have
government pressure so that they can easily take their own decision and able to run entire
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business activities effectively. For example: Apple is one of the most famous and leading brand
which deals with mobile phones, Mac book, personal computer and so. Along with prices of
product from this firm is very expensive. Therefore, the main aim of this firm is to make huge
profits through giving best services and always target high class people at marketplace. So that
private firm generally made for profit.
Legal structure: On the basis of this, Marks and Spencer always followed powerful legal
structure by which they can shapes the way to achieve desired goals respectively. Along with
employees are able to apply different policies and strategies on those necessaries terms by which
they can make organisation effective and productive.
Cooperatives: It is refers to the autonomous firm of person in which they able to meet
their common social, economical and aim to controlled their different types of functions and
values.
Purpose: The main purpose of Marks and Spencer is to provide general stores at market
place by which middle to upper class people can buy anything. Along with they want to have
home décor, clothing and food items in the stores.
Stakeholders: Within the Marks and Spencer stakeholders are employees, management
and customers as well by which firm can easily increase its wealth and able to gain huge profit at
marketplace (Berg and Kilambi, Siebel Systems Inc, 2014).
Public Organisation:
As compare to the organisations public sectors are usually operated and owned by
government bodies in order to provide better services to the citizens. On the other side this type
of organisation do not seek to develop profit, they only helps to give them satisfaction. For
example Crown Prosecution services, refers to the principle public agency for conducting
criminal prosecution within the Wales and England. At current period of time, this firm is having
6,000 around people who works together to give better services to all over employees. For
example: NHS it is refers national health services which is known as public firm as it helps
people to improve their health and gives them different types of safety and healthy tools in order
to achieve targeted goals.
Legal structure: By having appropriate legal structure they generally follows police and
evidence in order to take right decision to achieve better ways for communicate with people in a
proper way.
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Sole Trader: It is considered as a self-employed person who has their own business and
doesn't have any legal identity along separate to their owner and work for society.
Partnership: It is a kind of business where two or more people work together and
responsible to manage overall functions and operations within firm.
Purpose: The main aim of this organisation is to reduce crime from the nation which
help police and share lots of new ideas by which they can provide better policies and few
knowledge about particular topics in order to attain accurate information effectively to achieve
goals (Ballard and et. al., 2012).
Stakeholders: Within the Crown Prosecution services it comes under the different types
people which is generally associated with financial institutions, government agencies that affect
people to take effective decisions towards betterment of future.
Voluntary Organisation:
It refers to the particular group who mainly enters into an agreement mainly as volunteers
to form a organisation in order to accomplish a purpose. Trade unions, learned societies,
Professionals associations and environmental groups as well. Herein, Oxfam has been selected as
an volunteer organisation, it consist different types of alliances in which 20 independent
charitable trust always works together to overcome poverty from the nation. It is formed in the
year of 1942 through Cecil Jackson-Cole into the England. Therefore, this firm is not related
profit but it seeks humans profit by reducing crime from the nation. For example: NGO's are the
best way who are able to give better services to people through fulfilling their needs and wants
without thinking any kind of profits.
Legal Structure: Oxfam follows hierarchical structure in order to create trust, beliefs
and norms in the people mind to make communities crime free. Some of the aspects under this
point covered below:
An Unincorporated association: It is large number group of people who come together
in order to achieve targeted goals and objectives(Schaltegger, Lüdeke-Freund and Hansen,
2012).
Legal needs: It consist different laws or legislations for example checklist, charity, legal
advice which is helpful for firm to manage overall activities effectively.
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A Trust: It is much essential for people to make trust towards this respective firm, with
the help of this they can develop better ways by investing more funds to make services for
people.
Partnership: With the help of legal structure Oxfam is able to have large number of
people in their group so that they can work in partnership to make people happy.
Purpose: To offer better alternatives and solutions for different types of issues which is
generally faced by people into the society. So they probably wants to develop unique solutions to
reduce poverty properly.
Stakeholders: It can be founder, volunteers, employees and so on. So that Oxfam take
help from all of these sorts of people and make good decisions towards better ways.
Scope and size of a range of different types of organisation.
Scope, size, aim, mission and objectives are most appropriate helpful approaches for
firms to make unique goals to achieve desired aim. To make unique image of brands firms are
required to following these assorted aspects to gain successful growth (Janita and Miranda,
2013). There are several organisations, those are explained in beneath:
Public Organization:
This sorts of firm usually governed and managed by various government sources like
central, state as well as governmental agencies. There are some points in reference with Crown
Prosecution services, mentioned below:
Background: CPS also considered as the principle of entire public agency to conduct
criminal prosecution and registered in England and Wales. It is opened in the year of 1986 that
have 6,000 people into the business place. Along with it involves so many rules and policies to
make better environment.
Products and services: This firm deals with various aspects which is used to helps
people at every level.
Vision: Main vision of this firm is to formulates best organisation worldwide.
Mission: To provide better and proper safety tools for humans so that they can enjoy
their life.
Size: They have large workforce so that they can easily attract numerous people together.
Objectives: Is to offer numerous protective tools to reduce various issues globally.
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Structure: Hierarchical structure is followed by this firm to increase people confidence
towards work and make effective decisions.
Scope: It is a broad concept that offers securities to people (Werbach and Hunter, 2012).
As per the different types of size and scope of this public organisation this can be said
that it comes under the large organisation which is always able to reduce crime from the nation.
Private Organization:
This type of firm always want to earn huge profit with high sales and revenue within the
marketplace through satisfying all over customers needs and wants. In context with Marks and
Spencer, there are some basic aspect which is followed by them, they are following as:
Background: Marks and Spencer considered as a major retailer of household items,
foods, clothes along with financial services as well. As it is international brand and provide its
product and services globally so that they have good brand image.
Mission: It reflects on overall business of an organisation so the mission are to make
inspirational quality that is accessible to others.
Vision: Main vision is to work towards achieving goals in order to gain successful
growth in a proper manner.
Objectives: In order to develop lots of improvements within the sales by which they can
get operational objectives to growing ahead.
Products: Goods and services of this organisation includes food items, clothes,
household items and so on.
Size: This firm operates its overall functional activities worldwide, so that size of this
organisation is very wide (Vitale, 2011).
Structure: Marks and Spencer always used flat organisational structure in which they
have limited levels of management as well as administrative level by which they can encourage
employees towards making effective decision process.
Scope: By having lots of product and services in every market globally so that they have
large scope to achieve its organisational goals.
This type of firm mainly works for profit so that it comes under the micro factor in which
they have minimum 10 employees and less than more in order to achieve targeted goals in a
perfect way.
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Voluntary Organisations:
In context with Oxfam, it is a confederation of 19 independent charitable agencies or trust
which is helpful to remove poverty across the globe. It is established in 1942 through Oxfam
international. This is because it is considered as a non profit firm.
Vision: Main vision is to overcome poverty globally.
Mission: To develop better strategies and variants to make each and every people happy
in a right manner.
Size: With the help of large number of people firm has good scope.
Objectives: Main objective of this firm is to offer multiple services to improve living
standard of people.
Structure: In order to bring more improvements into their services they generally used
organizational structure.
Therefore, this can be said that if all of the above given firms follows all these key
elements properly then they are needed to have effective workforce in order to run their
businesses functions or operations in a proper way (Weiss, 2014). In addition to this it would
help firms to achieve desired goals and objectives in an effective manner.
LO 2
Relationship between different organisational functions and how they link to organisational
structure and objectives.
Interrelationship between several organisational functions always shows the firms value
and identity at marketplace. With the help of various marketing departments firms can easily
make better decisions and able to gain competitive advantages effectively. Therefore, there are
some different departments which are interrelated with other functional units in context with
Marks and Spencer, those are giving below:
Marketing and HR: Human resource department plays very important role within the
organisation which help firm to recruit, select and hire knowledgeable and skilled employees so
that they can perform well and able to achieve goals towards organisation. Whereas, marketing
department provide job vacancies to HR in order to select right people who can fulfil firm's
requirement and needs on time (Prins and Cybercrime, 2011). In context with Marks and
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Spencer, HR department and marketing all are interrelated with each other and able to gain better
identity by selecting high skilled employees who always make firms productive.
Marketing and Finance: Financial department has its own place within firm, with the
help of this firms can get appropriate and effective budget statement to achieve its appropriate
operational cost to further manage and controlled marketing activities. In reference with Marks
and Spencer, financial department generally provide funds to marketing department by which
they can make better ways to gain competitive advantages by applying new policies and
strategies. So the overall interrelationship between different functional units makes firm
attractive.
Therefore, interrelation between different functional units is most necessary for each and
every business firm in order to gain huge profits and productivity in an appropriate manner. For
example: Marks and Spencer has good interrelations between so many functional units by which
they can develop various strategies and sources to achieve targeted goals. Along with it helps
them to make clear techniques to take future decision. Apart from this if respective firm is not
able to have interconnection in functional units so that they can not properly communicate their
desired to people as well as not able to achieve goals.
Organisational Structure:
Illustration:1 Organisational structure
Source: Organisational structure 2018
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From the mentioned organisational structure there are so many marketing functions in
firm those are explained below:
Human resource: This is one of the best function within firm which help them to recruit
and hire knowledgeable candidate who can fulfil firm's requirement on time.
Finance: With the help of this function company can take sufficient fund in order to run
their business activities in a perfect way.
Production: Through this function manager of firm needs effective process to maker
their production process best therefore it is necessary for firm to achieve desired goals in a
perfect manner.
All of these functions are related with marketing department of respective firm because
without taking permission from marketing department they can not do their work and able to
produce their services within marketplace. Therefore, it is essential for them to achieve desired
goals in a perfect way.
Bureaucratic Structures-
This is a formalised structure and it is also known as the combination of set of rules and
roles which is based on few specifications such as what, when, how. Therefore, it comes under
the normative structure that is not based on decision making process. Along with it consist
Scientific management theory which determines different types of workflows. Therefore, the
main objective of this method is to modify economic efficiency through increasing lower
productivity.
SBUs :
It is generally considered as a computer bus system which is mainly used in the different
types of computers through microsystems. It can also be used by firms in order to make their
system updated so that they can achieve their desired goals properly.
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LO 3
Positive and negative impacts the macro environment has upon business operations with
examples.
Business environment is the combination of different types of internal and external
factors which consist several kinds of factors like client, customers, technologies and so on.
Within an organisation there are various Macro factors which directly affects on the business
performance so it is very much crucial to evaluate positive and negative aspect of respective
factor to gain potential outcomes.
Political factors:
Each and every country has their own business rules and regulations which is strictly
given by the government of UK and them they expect from all type of business they should
follow them as well. In reference with Marks and Spencer, as it is known and famous brand so
that there is not much issues from this factor but for safe side they should consider all those rules
towards betterment of future.
 Positive: In context of M&S different types of laws and rules given by government will
definitely impact hem in a positive way as they have been already following every
governmental rules and policies.
 Negative aspect: AS they majorly operates in UK marketplace in which various kinds of
trade regulations operated that directly affect on their business performance in adverse
manner.
Economical factors:
Respective factors in which consist of the growth rate of economy, GDP and interest rate
and many more attributes which directly affects the business performance. In context of M&S it
is very crucial to evaluate the positive and negative side of respective factors. Along with this if
respective firm is able to put affordable price on their products then they are able to attain their
desired goals across the globe.
 Positive: Exchange rate is one of the most crucial factor that one of most crucial source
of income for an organisation in order to gain higher level of profitability in marketplace.
 Negative: Due to high rate of inflation in marketplace that impacts on the purchasing
power of consumers in negative way that directly affect on organisational profitability.
Social factors:
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