Business Environment: Macro Factors and Organizational Analysis

This report provides a comprehensive analysis of the business environment, examining various organizational structures including public, private, and voluntary sectors, with examples like Google, Royal Dutch Shell, and Woodland Trust. It delves into the relationship between organizational functions such as marketing, finance, HRM, and production, and how these functions connect with company objectives. The report further explores the positive and negative impacts of the macro environment, including political, economic, social, technological, environmental, and legal factors. Additionally, it discusses the interrelation between internal and external analysis using SWOT and PESTLE frameworks to understand how strengths, weaknesses, opportunities, and threats interact with the macro environment. The analysis covers the sizes, scopes, and structures of different business types, and concludes with an overview of the key factors influencing business success within the dynamic global landscape.

Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Business's with legal structure and their purpose..............................................................1
P2 Business's organisation and their size and structure.........................................................3
TASK 2............................................................................................................................................4
P3 Relationship between various organizational functions and their connection with company
objectives................................................................................................................................4
TASK 3............................................................................................................................................6
P4 Positive and negative impact of macro environment........................................................6
TASK 4............................................................................................................................................9
P5 Internal and external analysis of an organization .............................................................9
P6 Interrelation between strength and weakness with macro environment.........................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Environments have a major impact on entire corporate world because policies and norms
of an enterprise are based on micro and macro elements. However, it is essential to study the
various components in order to attain organizational goals or objectives in a defined time frame.
Beside this, number of things get changed such as; choice or preferences of society, rules and
regulations of advisory bodies hence forth. In order to understand each or every aspect of
business environment Company needs to analyse indispensable elements so that they can run
their enterprise in appropriate manner (Avramenko, 2012) . Therefore, assignment is going to
throw lights on various types of organizations such as; private, public and voluntary with
relevant examples. For example; Google is a most leading private corporation whose main
motive is to gain maximum benefits by satisfying the needs of distinct clients. Along with this,
size and scope of several type of associations are also outlined in this project as well as
determine their company structure in order to assist them towards corrective path. Furthermore,
focussing on impact of macro environment on company success and interrelationship between
SWOT or PESTLE is also described in this report.
TASK 1
P1 Business's with legal structure and their purpose
There are various types of organisation that exist in the environment and each have of
them have different purpose. Thus, based on which they are categorised on the basis of public,
private and voluntary section in order to fulfil the respective target affectively. It basically offer
immense employment opportunity by attaining the overall purpose of an organisation
successfully. The role of public company is to facility the society and deliver effective policy in
order to enhance the economic condition of the state. It basically involve the interference of
government to improve the infrastructure, construction services as well as local educational
facility to promote the functioning of overall country. Like Royal Dutch Shell is the oil and gas
reserve which is the one of the largest companies that help to preserve the natural resources and
develop sustainably. Therefore, it is established for the legal functioning and in order to do so
they receive the funding from legal community.
Along with that private sector is distinct from public sector as within this the owner run
the business in order to maximise the profit and diversify business in national as well as
international boundaries. In relation to Google it directly directly help the firm to conduct
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portfolio investment and mitigate the chances of risk by earning huge income source for business
and within stipulated time period. There are different types of private firm whose nature differ
from one to another like the role of Sole proprietor is to run the small business just with the
purpose to attain adequate living standard instead of taking risk to diversify the business. Along
with that within partnership business two or more than two partners work together in order to
share profitability. They basically function after the preparation of partnership deed that consist
the name and share of each and every partner. Further, within limited company the large
company like Google which is multinational company gains the huge amount of revenue and
offering a platform to people and engage with them successfully.
Thus, Voluntary organisation includes the role of non government body that incorporate
its actions in order to look after the specific purpose of society. They basically functioning toe
enhance the living condition of unprivileged part or weak section of the society such as
Woodland Trust helps to create and restore the heritage with the help of afforestation.
P2 Business's organisation and their size and structure
As there are three sectors of business and each of them has its own size and scope
depending upon the purpose of business like the objective of multinational enterprise is to
expand and serve worldwide area. Similarly, voluntary organisation rather than expansion
focuses on the coverage of the society for which they exist. Thus, in relation to Royal Dutch
Shell which is a public organisation cover the oil and gas area and indulge into activities like
transportation, distribution, trading , power generation and so on. Thus, it operate in various
countries which is approximately seventy countries that have expanded the size as well as scope
of company. Like it offer employment opportunity around eighty thousand employees and have
assets of worth around US $399.2 billion. Along with that the size and scope is Google which is
private company is widely expanded globally. The reason of expansion is to gain edge and earn
huge amount of profitability and catering the changing need and requirement of customer all
over the world. So to remain competitive Google enhances its services like language translation
or voice messages which help the customer to provide convenience and maintain their interest.
Like, the company hire eighty five thousand employees who remain connected with the firm and
help to resolve the remedy of people. The company has successfully covered both developing
and developed part of an economy. Further, in context to Woodland trust which is the part of
voluntary organisation makes vital effort to expand their size with the purpose to conserve the
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natural resources. Here the company makes affirmative effort in order to protect the forest and
conserve them by controlling deforestation in order to maintain the economic stability. Like, the
company UK area and there are around two lac member who are the valuable part of association.
TASK 2
P3 Relationship between various organizational functions and their connection with company
objectives
Business environment of an organization needs to be studied for understanding the each or every
aspect of an enterprise as well as relationship between various department. For example; all the
other functions of an association have a major connection with each other like ; presence of
capital is necessary for adopting modern methods of marketing. In fact, structure and objectives
of an enterprise is also based on various department of Google as if there is absence of any initial
target then company don't have any path towards success (Bovee, Thill and Raina, 2016) . Apart
from this, one thing is also determined that there is a major difference between two of the
organization such as; Google and Woodland trust are totally distinguish from each other. Thus,
relationship between various organizational functions are discussed as follows:-
Marketing and finance:- Sales of an organization increased due to effective marketing
strategies. Thus, for designing modern technique of promoting organizational products and
services company needs to have sufficient amount of funds to accomplish their job role in
proper manner. It shows the direct connection between marketing and finance team in order
to gain maximum benefits.
HRM and marketing:- Advertisement of vacancy at marketplace is only possible by acquiring
help from sales team because all the promotional activities are done by them only. For
example; awareness about the vacant position of an enterprise is only circulate with the use
of marketing strategies in order to update society about the company empty position.
Production and marketing:- It means manufacturing department of Google is based on their
promotional tools. For example; merchandising team of an enterprise is engaged in assessing
the needs or requirement of consumers in order to direct manufacturing group towards
correct path. As a result, it helps in controlling extra or unusual stock and further regulate
the long term losses of an association.
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Thus, all the above elements shows that organizational functions are fully interlinked
with each other in various manner and plays crucial role in attaining set objectives in a defined
time frame (Cavalcante, Kesting and Ulhøi, 2011). Apart from this, structure of a firm is
segmented into several basis which is described as underneath:-
 Function based:- Design the structure of an enterprise as per various functions such as;
HRM, finance and so on.
 Geography:- As per this element company may classified on the basis of several regions
of nation in order to offer best suitable products and services.
 Consumer:- Behaviour of consumers are determined for designing the company so that
company may design their goods as per current choice or preferences.
Hence, it has been understood that objectives of an association are based on distinct
elements in order to run association in effective manner by satisfying the needs of clients.
TASK 3
P4 Positive and negative impact of macro environment
Macro environment is all about studying various changes occurred in distinct elements
across the international marketplace in order to attain set objectives or goals. Google is a
multinational organization whose main objective is to acquire maximum return on their
investment by coming with creative ideas (Hair, 2015) . In fact, number of factors are falls under
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macro environment such as; Political, economical, environment, technology, legal and social. At
the same time, it has been understood that these elements are not controlled by organization due
to the involvement of advisory bodies and so on. On the other hand, one thing is also determined
that all the external elements are having a major impact on company performance either in
negative or positive manner. Thus, proper description of positive or negative influence of macro
factors are discussed as follows:-
Political: - Governing bodies are playing very crucial role in company success as policies
of Google are based on norms set by government. In fact, political parties are engaging in
designing an appropriate plans and strategies to encourage corporate companies towards
expansion in order to develop the economy of a nation. Apart from this, this elements also
influence company in negative as well as positive manner which is described as follows:-
 Positive: - Governing bodies are supporting an organization while expanding their
business across the international boundaries by introducing free trade policies as well as
aids in protecting rights of buyer and seller (Hamilton and Webster, 2015) . Google is
following all the necessary norms of governing bodies due to which they get succeeded
in launching innovative ideas in proper manner.
 Negative: - On the other hand, sometime rules or regulations of governing bodies restrict
companies to launch more advancement which automatically affects their growth and
sales. Additionally, demand extra charges while involving in any international contract.
Economy: - GDP rate, fluctuation in currency involves in this elements which aids in
assisting organization while engaging in global contract. In fact, by study this factor Google can
get aware about the current reformation in marketplace which helps in directing organization
while dealing with several problems. Some of the benefits and drawbacks are;
 Positive:- Analysis of currency helps an organization while managing things in
appropriate manner such as; assist company at the time of agreement in order to acquire
more or more benefits.
 Negative: - Influence the profit of business entity due to changes in currency rate as well
as inflation or deflations affects the company performance by fluctuating sales of an
enterprise (Karagiorgos, Drogalas and Giovanis, 2011) .
Social: - Google is a multinational organization whose main objective is to grab the
existing opportunities by introducing advanced technology for facilitating consumers. However,
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society is seen as most indispensable factor because users are liable for consuming products
which resulted in maximization of company sales. For example; in today’s advanced world
maximum clients are addicted towards internet for accomplishing their day to day activities. It
shows that usage of advanced technology get increased which is beneficial for company success.
Apart from this, their positivity and negativity are described as follows:-
 Positive: - Analysis of consumer taste or preferences is essential for organization because
it helps an enterprise while designing company products and strategies by considering
necessary facts or figures about the consumers.
 Negative: - At the same time it might increase the production cost of an organization due
to reformation in consumer taste and current market trends.
Technology: - Emergence of modern technology is advantageous for company success as it
helps an enterprise while handling various complicated activities (Kolk, 2016) . Apart from this,
Google is involved is surrounded with standardized equipments for accomplishing their business
functions. Thus, usage of digital tools are beneficial for company performance in various
manner. On the other hand, it may influence the organization in two ways:-
 Positive: - Complete the business activities in minimum time period, aids in capturing
the attention of millions of clients, helps in creating positive relations with long
distance consumers and so on.
 Negative: - It’s very difficult for employees while performing their job role due to
complex features and hard to understand. In fact, sometime it may create possibilities
of accidents.
Legal: - Legitimate bodies are playing beneficial role for overall nation because it aids in
controlling probabilities of wrongful conducts. For example; amendment of strict laws and
orders which is applicable on overall country such as; right to privacy acts and so on. As a result
Google can easily perform their job role in effective manner (Nishitani and et. al., 2012) . But
sometime legal laws affect the company in both manners that is discussed further:-
 Positive: - Fraudulent activities get minimized because of legal laws as most of the
cheater or criminals get scared and avoiding to do wrongful activities. Along with this,
company can easily expand their business across the international borders without any
fear.
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 Negative: - Long process is framed by legitimate bodies which create problem for
organizations while running their associations. In fact, sometime it may restrict enterprise
for involving in a certain contracts which affects the company profit.
Environment :- Resources are seen as most indispensable component for organization because
company is depend upon various types of assets such as; land or building, plant and machinery,
men power, capital and so on. Thus, it is essential for organization to acquire necessary resources
for running their organization in most suitable manner.
 Positive :- Google can easily acquire benefits with the use of necessary resources such
as; employees are liable for accomplishing business activities.
 Negative :- Affects the company success due to uncertainty as shortage of resources
create problem for an enterprise while attaining their goals in a defined time frame.
TASK 4
P5 Internal and external analysis of an organization
Google is engaging in various types of large project for expanding their business across
the global marketplace because their motive is to continue this enterprise for long duration. In
fact, company is getting succeeded also by using modern technologies as well as coming with
modern tools as consumer choices are getting changed. Along with this, company is engaged in
facilitating society with high tech equipments for attaining set objectives or goals in a defined
time period (Osterwalder and Pigneur, 2010) . Apart from this, managers of company is trying to
get aware about their strength and weakness in order to make changes as per current position.
Thus, proper assessment of SWOT is described as follows:-
Strength :- Potentially of Google is described
as follows:-
 Expanded across the global
marketplace due to maximization in
consumer demand.
 Easy to access due to which most of the
illiterate and unskilled people can also
use it for their day to day purpose in
more effective manner.
 Acquired information in seconds.
Weakness :- Drawbacks of company is going
to discussed as under:-
 Difficult to understand due to complex
features.
 Internet is required which is not possible
in all the situations and absence in most
of the villages.
 Requisite extra knowledge.
 High range of money is required for
using Google.
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 Easily operate in mobile phones also
because of which an individual can
easily use it while travelling.
 Helpful for women’s in various
dangerous situations by giving instant
information without any delay.
 Lack of communication between
employees because all the activities are
controlled through modern technology
on online processing.
 Chances of fraudulent activities.
Opportunities: - Probabilities of growth are
described in this element.
 Emergence of high tech modern
equipments is highly beneficial for
company and act as a great opportunity
to expand their business because
Google is surrounded with digital tools
(Osterwalder and Pigneur, 2010) .
 Development of economy due to
upliftment of common people as
education is increasing day by day
because of Google use. It means,
company can easily promote their
organization with advancement.
Threats :- In this factor success drawbacks are
going to highlighted in this component:-
 High range of competition get increases
as most of the alternatives are identified
such as; books and journals,
newspapers, articles henceforth.
 Complexity of advanced technology
creates problem for company success.
 The process to complete organisational
long work is time consuming due to this
organisation need to engage in this for
longer period.
 Usage of internet and technology is a
complex process. So to complete it
effectively organisation need to invest
longer period in it.
Throughout the assessment it has been understood that company is going through major
problems and issues due to which it is essential for organization to take corrective actions. Along
with this, assist managers towards corrective path so that they can overcome organizational
problems in a minimum time frame. Basically, it is not easy to run a large business entity due to
fluctuation in several elements which have a major impact on company performance (Pikka,
Iskanius and Page, 2011) .
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P6 Interrelation between strength and weakness with macro environment
Micro and macro environment are interrelated with each other because company is
surrounded with all the major elements such as; political norms aids in assisting organization
while designing company policies and so on. It is indispensable for organization to make
changes as per consumer needs or demand for attaining set objectives or goals. Beside this,
Google believes in generating high range of return on their investment by launching several
types of modern technologies. Along with this, selected firm is having their outlets across the
worldwide due to which they get affected with numerous of factors (Pulver, 2012) . Macro
environment have a major impact on company performance as these elements are playing
eminent role in designing organizational policies in order to control possibilities of mistakes.
Google is fully influenced by external elements but at the same time few components act as a
major strength for company because number of activities are incurred which is not controlled by
managers. For example; any fraudulent acts are only regulated by legitimate bodies only by
imposing some of the major laws and acts. It means, micro and macro factors are fully connected
with each other in various extent (Shigang, 2010) . Thus, various things which shows the
relationship between macro elements are discussed as follows:-
Political :- According to this element company
needs to analyse the stability of governing
bodies in order to expand their business in
several new regions. Additionally,
modification in rules and regulations assist
company to make new policies as per current
changes.
Strength:- By analysing the role of political
parties it is identified that political norms,
beliefs and regulations is directing whole
association towards corrective path.
Furthermore, control the possibilities of losses.
Weakness:- While assessing all the situations
company feel restricted in some cases such as;
extra charges while expanding the business is
seen as major obstacle for company success.
Economy:- Fluctuation in currency or any
changes in taxation process is falls under
economy because it is going to influence the
business activities.
Strength:- Google is having their outlets in
various nations which are having stable and
outstanding economy like US. Thus, it act as a
major strength for organization.
Weakness:- Alteration in currency rates affects
the profit of an enterprise (Business
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Environment. 2018).
Social:- Cultural aspects, changes in consumer
attitudes, choices and preferences influenced
the company products because services are
finally consumed by society.
Strength:- Research and development team of
Google aids an enterprise by determining the
trends so that company can design their
products as per societal choice.
Weakness:- Because of cultural differences in
employees number of disputes arises at
workplace. Sometime fluctuation in societal
demand increase the production cost of an
enterprise which shows the major weakness.
Technological:- Digital technologies are
highly beneficial for organizational success
and development because it aids employees
while accomplishing business activities.
Additionally, safeguard the confidential
information from getting misused (What
SWOT Analysis is in simple words. 2016).
Strength:- Completion of business activities in
a defined time period as well as minimize the
time period.
Weakness:- Complex features of advanced
tools act as a major drawback of an enterprise.
CONCLUSION
From the above report it has been summarized that study of business environment is
indispensable for company development as well as aids in generating maximum return on their
investment. In fact, almost entire corporate world is getting affected by changes in micro and
macro environment because policies of business entity are based on several components only.
Thus, over the study one thing is determined that while running a firm managers needs to focus
on each or every aspect in order to control possibilities of mistakes and drawbacks. For example;
Google is getting succeeded in improving their company performance with the use of micro and
macro factors. For example; by getting aware about the legal norms is advantageous for firm
while involving in several types of contracts or agreements. Additionally, all the intrinsic and
extrinsic elements are interlinked with each other as well as success are depending upon them
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only. Last but not the least it has been understood that large number of companies is emerging
but different in various aspects such as; purposes, size, scope and so on.
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