Organisational Analysis: Macro Environment and Business Operations

This report provides a comprehensive analysis of the business environment, focusing on different types and purposes of organizations including Tesco, NHS, and Oxfam, across public, private, and voluntary sectors. It explores their legal structures, sizes, scopes, and the relationship between organizational functions and objectives. The report identifies both positive and negative impacts of the macro environment on business operations through PESTLE analysis and conducts internal and external analyses to pinpoint organizational strengths and weaknesses. It further explains how these strengths and weaknesses interrelate with external macro factors, offering a detailed understanding of the interplay between businesses and their environments. Desklib offers a variety of solved assignments and study resources for students.

Business and Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures. ....................................................................................................................4
P2 Explain the size and scope of a range of different types of organisations.............................5
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.......................................................................................6
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples................................................................................8
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses. ..........................................................................................................9
P6 Explain how strengths and weaknesses interrelate with external macro factors.................10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Understanding the environment within which the business has to operate is very essential
for running a venture unit successfully at any place. Due to the environmental factors influence
almost all factors of business be it its nature, its location and the costs of goods, the supply
system as well as personal policies. Thus, it is important to have knowledge about various
components of the business environment, which includes the economic factors, socio cultural
factors, the political factors, the legal factors and the technological factors and many more. The
term business environment refers to the external factors, factors and institution that are beyond
the control of the business and they impact the functioning of a business enterprise (Liu, and
et.,al, 2021.). These consists over the business industry, another might operate indirectly. Hence,
business environment might be defined as the total surroundings, that have direct or indirect
impact on the functioning of business. It might also considers a set of external factors just as
economic factors , social factors and many other factors that impact on the business venture.
Through the analysis of all these factors company get a competitive benefits in marketplace. In
context o f Tesco, it is a British multinational retailing company dealing in groceries and
merchandise. The company was founded by jack Cohen in the year 1919. The company is
headquarter is in Welwyn garden, England and has its presence in more than 11 nations. In
context of National health service, is a publicly funded healthcare system. The company was
incorporated in the year 1948 and since then they were funded by general taxation . The
objective of the company is to give healthcare on the basis of clinical requirements and not on
the basis of capability to pay. In context to Oxfam, it is a collaboration of 20 charitable
organization that have come together to fight injustice and to alleviate global poverty. The
company was incorporated in the year 1942 and led by Oxfam international. The company
counted in the classification of international NGO and its headquarter is in Nairobi, Kenya.
The main factor of the company is on poverty eradication, advocacy and many others. In the
provided report the reason and the legal structure of the companies are provided. Also their
external factors in internal factors analysis is provided.
MAIN BODY

P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures.
The organisation has the various kinds of legal structure in the which is listed in below report : /
 Private organisation - the company has contributed the main majority in the economy.
These business have a leading majorly of earning profits will work towards increasing
income . This companies have their own rules and regulations for the inside direction of
the company. In case of Tesco, the reason of the company is to give better services to
the company in reasonable rate. The base products of the company is to offer their
buyers a little developed all days (Kir, and Erdogan,2021).
Legal structure :
Sole proprietor – this kind of business have a individual director. The company is
managed as well as controlled by an individuals along with that individuals are liable for the
profits and losses of the company. This kinds of company needs few number of confirmation
which us why they are the easiest when it comes to firm.
Partnership - these business are managed and controlled by atleast two or more people.
The directors are stated as partners and they are jointly invested a capital in business venture
also they are equally responsible for the profits and losses of the company as per their agreement
and partnership deed.
Corporation - this kind of structure created by a unit o f people who are willing in this
particulars business. The directors of the company are basically the workers of the business ans
incorporated of these companies needs huge amount of documents as the business have divided
judicial entity.
Public organisation : these firms are managed by governing bodies as they access more than 50
% of equity of the company. The objective is to offer the people and not to earn profits. They are
more concentrated towards on offering general people as per the instruction of the governing
bodies. The company such as NHS, the aim of the company is to give quality healthcare
services at low cost and to give the people who are in need of those who have capital.
Legal structure :
Central government : this kind of structure have responsibility and authority for the
laws and operations of the complete nation. The company will have their budget from these

structure also have to work as per the instruction will get their approval (Nisula, and Pekkola,
2018.).
State government - this kind of structure have the obligation of systematic functioning and
will have authority and responsibility of the companies that are in the hands of state
government.
Local government – these are the governing that works for the financing and interpersonal
factors of the new industries and also are responsible for accessing companies by adhering the
provision of the local government act 1972.
Voluntary business – these are the company that are formed by individuals or units of best
services to the people who are in need. These organization can be a unit of charitable trust who
are interested to assist people and wants to decrease in similarity from the society. The company
like Oxfam, the aim of the company is to finish the injustice of poverty and assist people secure
human in disaster. They also assist people to make better future for themselves. The company
works for human rights. Trade justice and many more(.Kasemsap, 2018) .
Legal structure :
Trust - it is kind of charitable business that are managed and directed by members who
are known as trustee. These companies does not have any regularities structure so its regulated
charity deeds. The charity deeds are highly flexible ans can be changed as per the needs.
Unincorporated association - a unit of individual can make this business and can do
operations in this. These business are not particularised by the constitution and the organization
are not incorporated legally.
P2 Explain the size and scope of a range of different types of organisations
Basis Tesco NHS Oxfam
Vision The vision of the
company is to be the
most valuable in the
market or global
country also be valued
by the shareholders
and communities in
The vision of the
company is to serve
good health better
health and good care.
The vision of the
company starts an aim
to give the best and
The company wishes
to be committed
towars their operations
so that they can be
knoen for their
integrity. The
company wishes to be

which they operates
users they serves as
well as the committed
and loyal mates. It is
clear that the
company wants to give
satisfaction to the
stakeholders.
quality health services
to the communities
through particulars
efforts.
the good charity and
wants to works on
community issues.
Mission The mission statement
company refers what
matters better matters
the statements makes
it clear that the
company values all
contribution in the
success in the
company.
The mission of the
company provides
quality healthcare to
all and every person
who are in required all
days.
The mission of the
statement of the
company is that they
are ready to fight with
in similar and injustice
in regards to end
poverty and motivate
justice.
Size and scope The company is the
huge retailer in the
world in case if gross
revenues. They have
more than 7000 stores
presently and also
have the broad range
of the company.
The company is the
works largest non
military public
business and the
company have one
millions patients all
day.
The company is a join
forces or consideration
of twenty particular
charitable business
with a focus of
elevating global
poverty.
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.
All businesses has the particular system via which the activities of the company
takes place. It is the organisational structure through which rules and regulations have been

assigned to the management of the company. It states the employees about the work they are
expected to report the subordinates (Nudurupati, and et.,al, 2021). Tesco is one of the largest
reatil company having around 500000 employees who required a proper strcuture in regards to
have efficient management of the projects along with the roles. NHS is fifth largesr employers
in the universe with 1.2 millions employees working in the company. It is important for the
company to adapt the system . In last Oxfam is a collaborated which can be very complex and
impossible without a proper structure (Rahman, 2021)..
 Hierarchical organizational structure : these are the most basic kind of organizational
structure in private company. In this kind of structure that management have the levels
which are as top level management, middle level management and lower level
management. In this kind of structure the roles and responsibility are easily delivered to
all and every employee of the company and most of the administration is the the hands
level management who are liable for the decision making process of an industry (Gao,and
2020).
 Functional organisational structure – This kind of structure is equal to the hierarchical
structure but the main difference in this is responsibilities and the level of management is
decided individually on the basis of the skills that the individual have. In relation of NHS
the company is giving healthcare to the people and trust in giving treatment on the basis
of clinical suggestion or not on the basis of capital that the individual have.
 Horizontal or flat organisational structure - this structure have only two level of
management which is the top level management as well as the staff. The employees has
the authority of convey their issues, situation and questions directly to the top level
management without any middle man, in relation of Oxfam, the company is having a
interlink of 20 trust business and it is crucial for the company to have a less level of
management.
Tesco is one of the huge retailer in the global areas. As it provides the various home based goods
to people. They are famous for their reasonable and good quality goods and the business is
separated into various areas just as,
 Marketing and sales department - this departments of the company is responsible for the
promotion of goods and services of the company effectively and efficiently. The

marketing section helps the company to influence possibility users. The sales department
of the company are liable for the activity that are link to the company.
 Human resources and account - the human resources of the company helps in findings
the correct person for the right job in the organization. They assist the company in
managing a pool of talent that is important for the company. The accounts section of the
company aids the company in managing the books of account or the financial records of
the company which is an important task that all company have to do.
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.
Pestle analysis includes the external factors in the surroundings which can impact the
operations of the company. It is important for the companies to analyse their macro
environment factors from time to time even while moving into new market.
 Political factors – these are the factors which are linked to the degree of interfrence that
the governing bodies can do in the operations of the market as well as in the free market.
In relation of Tesco, they are having their presence in more than 5 nations and political
environment of the nation greatly influence the management of the company. It consist
governing policies. Labour laws and many others. The positive effect of the these
factors can have are political stability in the market and negative effect can be trad
barriers by the governing due to brexit (Fadaki, and et.,al, 2020).
 economic factors - these are the factors such as inflation and economic conditions and
many others. These components can also modify the demand and supply models of the
economy outcomes the company might have to revise their costs of goods and services.
Alteration in economical conditions can directly impact the accessibility of finance.
Changes in globalisation and diversification are the positive effect as they are the reason
of the success of the company.
 Social factors - it is important for the companies to adapts these rules in order to
operate. The positive effect from that the company can have talented workers from the
community is that the people of the society is concerned more about sustainability which
can hinder the growth of the company.

 Technological factors - These are the factors that are concerned with the upgraded or
innovative technology which is implelling in the market or managed through any rivals.
The positive impacts of this factors can work more effectively and effectively due to the
technological system and the negative impact is that raising of technological includes
cost which Is high and the technology can become obsolete very simply which is again a
discriminate for the company.
 Environmental factors - these are the factors which includes important for the
surroundings and are come into light due to the scarcity of resources, pollutions targets
and many others. In case of Tesco, the company is practising and making efforts to
reduce their stores by motivating cloth and proper packaging. The positive effect is that
the company is assisting in addressing issues to surroundings ans trying to decrease
them.
 legal factors - these are the rules and obligations. The company have to all the different
rules and regulations which is running and already working. The positive impact is that it
can enhance their reputation by following rules. The negative impact is that the
company have presence in more that five nations and in order to follow all the
regulations that company have hire a team of expertise who can have a close check but
will charge a high cost (Cravo, and Piza, 2019.).
P5 Conduct internal and external analysis of specific organisations in order to identify strengths
and weaknesses.
Swot analysis of Tesco.
Strength
 The company has a specific profit
model. It would enable the company to
gather VAT and sales tax directly
from the buyers and pay them to the
governing bodies due to the global
business of the company account for
individual amount of total income. The
company also constantly reduces its
Weaknesses
 no doubt that the company is growing
and the industry is having more income
due to the expansion but the company
till have a lot of dependency on the
regional market of UK. This can impact
of the company economy is slowing
down.

values with the assistance of efficient
developments.
Opportunity
 investing in new technology can be a
good opportunity for the company. The
company is now able to give services
through online channels as well. This
will give the company and an
opportunity to compare to catch a huge
market.
Threat
the current issues link to the brexit policy
serves as a main threst for the company as in
order to give reasonable goods to the buyers.
The brexit policy can frustrate the distribution
level of the company.
Swot analysis of NHS -
Strength
 the company has loyal and bound up
employees which are interested to
giving their best in company also
having high level of morale.
 The company has a well developed
governance mechanism as well as has a
good background of study and
improvement activities that has
assisted patients in recovering
quickly.
Weaknesses
 Huge level of bed occupancy along
with the growth in the emergency
activities are one of the major
weaknesses of the business.
 The company are one of the extreme
employees in the world which is why
the company have high staffing value
that is not good for the finances of the
business.
Opportunity
 The company can operate with private
section that aids in producing certain
income for the activities of the
reliability. As well as it will help in
improving healthcare campaign on the
major sites of the company.
Threat
 Raise in the values of rented properties
of NHS because of the new
directorship structure that the business
is going to adapt.
 Loss of market of the business because
of different service providers.

 The industry can ensure their link with
society with community, primary and
social care is giving to the patients in
the most accurate surroundings.
P6 Explain how strengths and weaknesses interrelate with external macro factors.
The evaluation of the interrelation of the macro factors with the strength and the
weaknesses. The strength has made the company strategically strong by raising the customer
base and the reputation of the company by adding more and more efficiency. Some of the
factors which are linked with external factors are listed in below :
 Political factors – it refers to the determination that states the company about the
interrelated of the governing bodies in the free market or in the industry in which the
company is working. It consists such as policies, political stability and many more. The
disturbance in distribution chain because of the brexit policies is a weaknesses but the
company is producing their goods which is a strength for the company (.Cartwright and
et.,al, 2021).
 Economic factors - These are the determinants that are indicators of the economic
performance of a country economy. It consist exchange rates, import duties and many
more. In relation of Tesco, the company is extremely reliable on the economy of UK
which is lacking point but the economy of UK is doing good in current times which is
why the company is in profits.
 Social factors - these are the factors that are linked to the society in which the company
is performing. It consist demographics, age and gender, geographic locations and
attitudes. These are link to the cultural and he norms of the society in which the
organisation is working. Modification in the users preferences and tastes can be major
disadvantages for the institution. The company has majority of the market equity share
which is around 30 % and is a capability for the company.
Technological factors – This is the factors that states the company about the predominant
technologies in the industry as well as the competitive possess. It is crucial for an industry to
invest in growing technology in regards to be forward in the market. Utilisation of self checkout

machines in which is an innovative ideas is a strength for the company but workers might resist
to change which is a lacking point of the company.
 Environmental factors – These are the components which is linked to the sustainability
and eco friendly working of the company. It consists carbon footprints, plastic wastage
and man more. The developing concern of basic people about the surroundings is a
lacking point for the company as plastic modification are high in cost and it is also
altering more healthy food then supermarket ready to eat foods. The capability of the
company is that it gives the company an opportunity to grow their reputation as well as
raise brand awareness.
 Legal factors – these are the components that are linked with the rules and regulations of
the country in which the company is operating. These are the judiciary an d regulations
that the company must have to follow,. The strength is that these rules and obligations
which assist the company in operating ethically and will save the company from any
misconduct business practices(Alsaad and Taamneh, 2019).
CONCLUSION
It is concluded from above report that there are thee kinds of business having different
ownership, having their own set of rules and regulations, with various reasons and with various
structure. It is important for the companies to determine their mission and vision in order to to
have a specific set of goals and aims. The companies should have a structure within the
organization which can assists them in supplying the roles and responsibility efficiently and
effectively. It is also explained that is very important for the companies to analyse their internal
along with the external factors from time to time in regards to make assurance that they are
aware of the surroundings and will be enable to have rivalry benefits in the market.