Impact of Macro Environments on Business Operations

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BUSINESS AND BUSINESS
ENVIRONMENT
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Table of Contents
INTRODUCTION............................................................................................................................. 3
LO1.................................................................................................................................................4
PURPOSE AND CATEGORIES OR TYPES OF THE ORGANIZATION AND THEIR LEGAL
STRUCTURES 4
LO2............................................................................................................................................... 11
INTERRELATIONSHIP OF VARIOUS FUNCTIONS 11
ADVANTAGES AND DISADVANTAGES OF INTERRELATIONSHIPS 15
LO3............................................................................................................................................... 16
PESTLE ANALYSIS 16
LO4............................................................................................................................................... 20
SWOT ANALYSIS 20
CONCLUSION............................................................................................................................... 23
REFERENCES.................................................................................................................................24
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INTRODUCTION
This assignment is based on the different types of business that works in the market with
different structure, purpose and size. This assignment will cover all such points which are
related to different types of business which will mainly include a public, private and voluntary
company which will include its legal structures, size, scope and other different types of
organizations operating. This assignment will also cover how the purpose and size of the
business help the business to meet the business objectives. Further, the assignment will also
cover the interrelationship of various organizational functions and how they are linked to
organizational objectives. Another part of the assignment will explain the impact of the
environment on the company and its operation followed with the various analysis like SWOT
will be covered in this assignment (Prajogo, 2016).
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LO1
This part of the report will include the main three different types of organization which will
reflect different categories, background, scope, purpose, services offered etc . will be discussed
in this section which is as follows:
PURPOSE AND CATEGORIES OR TYPES OF THE ORGANIZATION AND THEIR
LEGAL STRUCTURES
There is mainly there sector under which all the different types of the organization fall under
these categories:
Private sector: The private sector is the sector which is privately owned and is not interfered by
the government in any form. The private firms are controlled by the private partners of the
company. The private sector is operated and managed by two or more directors where the
company has to follow the rules and laws that are framed by the government for the smooth
functioning of the company. The partners who are into private business have limited liabilities
(Bason, 2018).
The main agenda of the private company is to make high profit and revenue generation by
understanding the needs and expectation of the customers by the optimum utilization of the
resources.
For example Body Shop which is a private subsidiary company
Public sector: The public sector companies are those which are governed and owned by the
government. The public sector managers and owners have limited liabilities. The main agenda
of the public sector of the is the growth, development and welfare of the society and generally,
these sectors are capitalized by the government (Mazzucato, 2015).
For example, Apple is a public company which is located in California.
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Voluntary sector: This is the sector where the main aim is to help the needy one with an
objective and aim of serving society. These organizations do not work to earn money but strive
to help as many as people they can help to.
For example, Oxfam is the organization which helps the famine affected people (Levitt, 2016).
Explanation of organization
APPLE
Apple is an American multinational technology company which is headquartered in California.
Apple designs and sells consumer electronics it also provides computer software and online
customer services. Apple is one of the big players all over the world among Amazon, Facebook,
and Google. Apple was found in the year 1976 by Steve Jobs it has 500+ retail stores all over the
world as it serves worldwide. Apple has known for its continuous innovation in its technology
an product which enables the company to make a revenue of about $ 265.595 billion. A total
number of employees working Apple is about 132000 worldwide. The company ‘s main
products are the iPad, iPod, Airpods, iPhones, Apple watch, TV etc (Apple, 2019).
SCOPE: Apple has a wide scope in future as it is a big brand in the world and it is one of the best
company all over the world which provides the latest technology with best features in its
products.
Size: The size of Apple is very big as it is having a big organizational structure and so many
employees working there.
Mission: The mission of the company is to stay connected with technology and give excellent
products to the customers and to the world.
Vision: The vision of the company is to work on the fundamental, product execlellation and
innovation.
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Objectives: The objective of the company is to keep on doing innovation by delivering the best
products to the customers
Stakeholders: The main stakeholders of the company is the customers, employees, partners,
franchise owners etc.
LEGAL Structure: The organisation structure of Body Shop is as follows where a proper
hierarchy is being followed with a systematic flow of information
[Figure 1: Organizational Structure of Apple Inc].
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[Source: Apple, 2019]
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BODY SHOP
The Body Shop is a British cosmetic, skincare and perfume company which is privately held and
is a subsidiary company. It was founded in the year 1976 by Anita Roddick, the company is
headquartered in London and it serves worldwide with more than 3000 outlets all over the
world. The number of employees working in the company is about 10,000 (The Body Shop,
2019).
Products: The main products are cosmetic, skincare and perfumes.
Scope: The scope of Body Shop is very huge as the demand for cosmetic products and perfumes
is being increasing day by day among the people.
Size: The size of the Body Shop is very big as many employees are working in the company and
it is serving worldwide.
Mission: To dedicate the business for a social change and to make ensure the business is
sustainable by contributing to a national and international market
Vision: To tirelessly work on the gap between the principle and the practice, passion and take
care part of our daily lives.
Objective: The objective of the company I to passionately campaign for the protection of the
animal right against the testing of the cosmetics and toiletries and to deliver the nest and
natural products to the customers.
Legal structure: The organisation structure of Body Shop is as follows where a proper hierarchy
is being followed with a systematic flow of information
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[Figure 2: Organizational Structure]
[Source: The Body Shop, 2019]
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OXFAM
BACKGROUND
Oxford Community for Famine Relief was founded in 1942 in England it is an international non-
governmental organization that works for the famine relief, poverty eradication etc. the
director of this organization is Winnie Byanayiam and it serves worldwide (Oxfam, 2019).
Products: It focuses on the poverty eradication, disaster relief etc who are affected by the
famine.
Scope: The scope of this organization is very huge as the planet has become more prone to
famine and calamities due to which many lives are getting affected in such situation Oxfam will
help those affected people.
Size: The size of the organization is quite big as it involves so many stakeholders and a proper
hierarchy in the organization.
Mission: The mission of the organization is to create lasting solutions to the problem of poverty
and give relief to the people affected by it.
Vision: Want a world without poverty where people can enjoy their rights.
Objectives: The objective of the company is to cater the best to the people affected by famine
Legal Structure: The structure of the Oxfam is in the following manner where a flow of
communication is there and the hierarchy is followed for smooth functioning
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[Figure 3;:Organizational structure]
[Source: Oxfam, 2019]
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LO2
INTERRELATIONSHIP OF VARIOUS FUNCTIONS
The organizational structure of Apple is very big and it follows a proper chain in the
organization as there are so many employees working in the company it is very important to
keep a proper chain and hierarchy on the organization so that discipline is maintained and no
mess is created in the organization.
The organizational structure of Apple is as above which keeps a proper flow of the orders and
clear communication with all the departments. Apple is working on such a big level; have to
maintain the relationship with all the other department s all the departments are interrelated
with each other in order to fulfil the organizational goals (Prajogo, 2016).
RELATIONSHIP BETWEEN DIFFERENT FUNCTIONS OF ORGANIZATION AND THEIR LINK WITH
EACH OTHER
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