Sethi, D. and Guisinger, S., 2002. This document covers the criteria for Pearson BTEC Level 4 HNC Business Unit 1 P6 - Explain how strengths and weaknesses interrelate with external macro factors. The report provides in depth knowledge of micro and macro environmental factors in which business organisation operates. Confidential data is not shared with public because of rules as well regulations observed by these companies. Resources include financial resources, physical resources like plant and machinery, human resources, intangible assets resources and cultural resources. Puma distribution system is influenced by following factors. JP Morgan has strong position in market and has the . External analysis can be done through SWOT method. The business environment includes all the internal and external environmental factor which affects the ability of business in maintaining long term customer relationships which help it in earning profits. 1. The sports and event business environment refers to all the factors which affect INTRODUCTION The powers are also distributed in the same hierarchy. Companies run business activities in private sector, helps nation to strengthen its GDP by creating more and more job opportunities. Negative impact: If the educational level is the low in that country, then it creates adverse effect on the companys sales and profits. Explain the size and scope of a range of different types of organisations. 15, pp. In such firms individuals become shareholders after purchasing of shares when they are offered to them. All over globe it has outstanding name of brand. There are so many departments which supports the company to achieve their goals and objectives on the time. Shareholders developed private firms, organization as well owner is regarded as different entity. Optimists: It could have been worse; Pessimists: It could, CARRERAS, M. (2016). Puma is presented to firms that are outside because of its production function. Economical Factors: The economical factors include level of government spending, avenues for capital creation, government outlook towards interest rates, banking finance, exchange rate mechanism, inflation etc. includes both country and municipal government structure. Profitable organizations provide donations to these firms. There are three different types of. Then, a more detailed analysis was made of the different topics. for the customer. P6 Interrelate strengths and weaknesses with external macro factors. It is a company which is operated their business all around world. Experts are tested by Chegg as specialists in their subject area. 2016, "Tourism: New Destination of Global Business Environment", International Advances in Economic Research, vol. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. LO 04 Determine the internal strengths and weaknesses of specific businesses and explain their interrelationship with external macro factors. New as well old players in industry, are giving competition to each other. environment which is consists of different factors and considering all these political, technological, legal and economic factors the Easy Jet Plc has to make business decision. Firms like Puma make their clients aware in respect to their items by using plans of marketing. The public sector is usually organisations that are owned and operated by the government. Whereas, in relation to problems of environment, more people as organizations are focused on them. 1. In an firm partners can be from 2 to 20 depending upon the size of, In this case it a joint stock company in which business has, separate legal entity. Policies of finances of organization are influenced significantly by change in interest as well inflation rate. This report is based on H&M which a Swedish multinational organization. It will be back shortly! Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. 4. Contact us to get the best assignment writers for your assignments. A business organisation is working in the two types of environment first is micro environment and second is macro environment. Get assignment help from full time dedicated experts of Locusassignments. Two various kind of partnership is involved here, one is general where there is equal control of both parties on business, another is limited one where only either of party have control overall. Josia Stamp went a step further and identified four aspects of the difference of which the only one similar to that of Applebys is that of public accountability or public responsibility as Stamp identifies it. P4 Identify the positive and negative impacts the macro environment has upon business operations, supported by specific examples.. 04 P5 Conduct internal and external analysis of specific organisations in order to identify strengths and weaknesses 06 P6 Explain how strengths and weaknesses interrelate with external macro factors 07 Apply TOWS (SO,ST,WO.WT) and justify how they influence decision making Finally Evaluate using your own judgement and opinion how P5 Conduct the internal and external analysis for the chosen organisation in order to identify the strengths and weakness. The private sector is made up of companies that operate to make a profit. Having that are loyal is tough because of switching in high brands. Internal environment is a component of business environment (Cheung and Pires., 2015), it is composed with the various different element which is already present in the organization. Use Code : N290 - The Sport and Event Business Environment, Internal Business Environment Analysis for Next Plc, https://au.globalassignmenthelp.com.au/free-samples/business-and-business-environment/m5089845-strengths-and-weaknesses-with-macro-environmental-factors. These are further explained below: Political Factors: This is the very important factors which influence on the regulation of the companys management like-. P2) Highlight private, public and voluntary organization's size and scope. Public administration is perceived more often by citizens as another component of government, albeit generally the least respected component of government. (Peters, 2001, pg. Disclaimer: This is an example of a student written assignment.Click here for sample essays written by our professional writers. 3. Copyright 2023 @ Global Assignment Help Australia. It also describes different business analysis tools such as PESTEL and SWOT analysis which should be carried out by the strategy maker of theorganisation. Internal factors include customers, suppliers, employees, shareholders whereas external factors. Few of weaknesses of Puma are described below. You Share Your Assignment Ideas We write it for you! Figure 2 shows this analysis and the proportions between each macro-topic. are economic conditions, government rules, technology, competitors (Anl and Ficici, 2017). Experts are tested by Chegg as specialists in their subject area. There are differences between the small, medium, organisation, and large that called speed that mean how to make decision making attitude towards risk, in terms of allocation of resources, by understanding of business models and the management of the business models. We have updated our privacy policy in compliance with GDPR. 2. Explain how strengths and weaknesses interrelate with external macro factors in mercedce benz . [Internet]. It create problem to generate the profits in that country and also creates difficult to establish the retail outlet in that country (Zott, Amit and Massa, 2011). Though the internal resources (i. strengths and weaknesses) are the fuel for any organization, external factors (i. opportunities and threats) are the road to reach organization's short term goals and long term vision. February 27, 2023 equitable estoppel california No Comments . We review their content and use your feedback to keep the quality high. Conduct internal and external analysis of specific organisations in order to identify strengths and weaknesses Explain how strengths and weaknesses interrelate with external macro factors Micro as well macro factors of environment are connected with strength as well weakness of organization. (Plunkett Research, Ltd 2008).various sports are getting popularity. Headquarter o Puma is in Herzogenaurach (Germany) whereas on 1st October 1948, Rudolf dassler founded this company (Business Insider, 2018). 2015). Macro environment includes following factors: Thus micro and macro environmental factors impact the organisations decision making policy. Micro as well macro environment are two distribution of environment. Company has sponsor renown football players like Johan Cruijff, Maradona, Gianluigi Buffon and many more as it is famous for its footwear in football. These are discussed below: Size: It is one of the biggest supermarket chains in the retail industry which deals in variety of the products like foods, household items, clothing, and other useful items which are needed to the customers. Impressive Essays in Minutes with Best Essay Typer Tool. Add variations in content without altering the meaning. In understanding micro and macro environments a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is commonly used in retail. 2014). Management compares strength of the company with prevailing macro environment factors like economic, political, technology, social and cultural and then formulate strategic and operational policies (Jurigov, Z. The team contains employees from different functional area. Besides hesitation, empathy transformation, company is prepared as well arrange for calamities. Internal analysis helps in identifying and evaluates organisations specific characteristics like its core competences, its capabilities and availability of resources. Weaknesses will negatively affect the company if the company is not able to fulfil the consumers demand by supplying adequate amount of product than it affects profitability of the company. happy with it, We don't support landscape mode yet. By no means can you say universally that government organisations have more complex cases and certainly not on a ratio of four. This is accountable to share political powers with the federal or, It is the political authority which governs an nation. Ans.Strength and weakness are the opposite factors that give power and . The business environment means all of the external and internal factors that affect the organization functions which include employees, customers, management, supply and demand and business regulations. We will define the relationship between different organisational functions and how they link to organisational objectives and structure, then we will identify the positive and negative impacts the macro environments and explain how strengths and weaknesses interrelate with external macro factors. Different types of functions such as IT, sales as well marketing, operation, HR, finance, development as well research, customer care services are some operations that the organizations consider as well perform. We're here to answer any questions you have about our services. So, with the use of these analysis tool company can ascertain the effect of macro environment on the organisations decision making (D., Margea, C., Hurbean, L. & Artene, A.S. 2014). Various sections like, motorsport, training as well running, football as well golf items are offered by it. LO 03 Use contemporary examples to demonstrate both the positive and negative influence/impact the macro environment has on business operations. Strengths and weaknesses are those internal factors impacting an organization while opportunities and threats are external factors that are outside of the organization's control. Process of development in company may get influence by other connected economic as well political elements. Trades of day today decides companys value in market, whereas fewer shares may float in starting state of company. In partners the profits and loss are shared among the partners according to, their agreed ratio of sharing. Technological Factors: Technological factors are very vital factors which always brings favourable outcome to the company but it creates huge cost burden on the company and affects the companys revenue income and their operations. Interrelationship between macro environment factors and organisation's strength and weakness are as follows: Economic Factors: Economic factors include change in interest rate, inflation rate exchange rate in the market. Political Factors, Major aim of company is to start their strategy for making it profitable. In this assignment I will be explaining how two different businesses are organised the two businesses I will be choosing MacDonalds and Macmillan. A hidden benefit in internal evaluations is the opportunity for participants to understand how their jobs, departments, and divisions fit into the whole organization. Place your order now to take advantage of discounted deals and offers. It adopts standard policies procedures and culture. Company is following Nike as well adidas strategy in production outsourced in Asia.in comparison to America and Europe, Asian nations provide low cost for taxes as well workers, that is main reason of production outsourcing.as company is multinational and is widespread worldwide is producing as well selling its items, companys performance may get affected by political instability (Wang, Tsai and Tsai, 2014) If these, factors are no considered and business decision is made, then the firm would not be able to, generate required profit and ensure sustainability. Daniels, J., Radebaugh, L. and Sullivan, D. (2015). important information with respect to firms financial functions are provide by finance function, function of finance in Puma is concern to utilizing resources of organization for different process. For a better as well-developed society individuals work together in groups in non-profit organizations as well firms that work on charities. As a good customer image and also has good qualified employees around the world. LO4 Determine the internal strengths and weaknesses of specific businesses and explain their interrelationship with external macro factors. Every organisation has a different organisational structure. P6: Explain how strengths and weaknesses interrelate with external macro factors. 17, no. people, innovative ideas and communities and simultaneously improve their living standards. They make sure to attain outstanding results for coming generations, individuals, and societies as well communities through using effective public valuable resources, as well high standards of health services are delivered. P5 Conduct internal and external analysis of specific organisations in order to identify strengths and weaknesses. Whereas, SWOT (Strengths, weaknesses, opportunities and threat) analysis is carried out. The relationship between different organisational functions and how they link to organisational objectives and structure. The public company can issued securities directly to the public with the help of IPO and raise their funds. their share to general public through a mode of Initial public offer. environment so that threat and opportunities can be turned into their benefits (Aithal, 2016). P6 Explain how strengths and weaknesses interrelate with external macro factors. Liability of foreignness to competitive advantage: How multinational enterprises cope with the international business environment. For developing innovative items, company gets required details by following research of markets. For maintaining ongoing development, various local as well international laws need to be focused because of reality that company will outsource from other nations. While the firm wish to expand its operations it, has to consider the whole environment and required finding opportunities to make new business. Copyright 2012-23 Zucol Services PVT LTD. All Rights Reserved. which affects the business activities either in adverse and favourable manner. These firms can comprise of shareholders, as well private company can issue stocks, whereas IPO (initial public offering) do not offer Stocks and public exchange do not trade in shares of stocks (Wetherly and Otter, 2014). Strengths reflect past accomplishments in production, financial, marketing and human resource management. 2014). Change in consumers taste and preferences, change in interest rates, change in government policies are the example of macro environmental factors. 351-360. This information exchange before decisions increases employees motivation and morale. Social Factors: The social factors include demographics, distribution of income, social mobility, life style changes, consumerism, educational levels which creates huge effect on the decisions and strategy of the companys. A manager's forced communications that occur across departmental lines produces an additional benefit in improving communication within the organization. 2016). In context with this, Crown Prosecution Services situated in, England and Wales is mainly a public prosecution agency offer legal advices to police and other, Crown Prosecution perform their activities with a core purpose to provide correct and, effective advices to police and other investigative agencies and bring right prospective in a right, Organisations running their business operations in public sector are those, whose formal rights are owned and controlled by government. These structures include: a) Functional Organisational Structure: under this structure departments are divided on the basis of functions like sales department, production department etc. The other three are Principle of uniformity, Principle of external financial control, and Principle of service motive. Apple's best organizational features includes the sustainable and credible image. They offer according to the needs and wants of the customers. When company is expanded for offering services as well items to varied clients,markets of varied types are served by them as well items of various kinds are provided,then adoption of structure which is divisional is follwed. Governments policy on the country economy. b) Divisional Organisational Structure: In this organisation structure function of business is divided as a particular division or branch on the basis of geographical, market, product or service group. This is an only way for the organization to generate more profits and expand their business around the world. Thus, it is necessary for the companys management to consider PESTLE analysis which is very effective technique of the Strategic Management in order to find out each adverse and favor impact of each factors so as to solve them as quickly as possible. Global Assignment Help Australia. Various kind trading firms exist these have varied disadvantages as well advantages. Non-profit organization- A non- profit organization is one which is not driven any profits. It receives funds from outsider of the organization. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Moreover, it also. Jurigov, Z. Micro environment is concerned with internal environment of the organisation it includes following factors: Macro factors include external factors of the environment in which organisation operate. For puma to operate efficiently as well effectively, employees need to be efficient as well competent because without them it is going to be very challenging. These external factors include economic, legal, cultural and social factors, technological changes and natural forces. Major focus of public firm is development of a business profile of good standard capital access as well value provision to shareholders (Wetherly and Otter, 2014). If company fails to identify its strength and weaknesses than it cannot analyse macro environment factors then it fails to formulate strategic plans and tactical plans. Whether it be the company they work for, the retail store they purchase their groceries or the NHS dentist they attend individuals of society are all affiliated, controlled and in control of business organisation. Internal and external factors create a impact on functionalities of organization. These differences seem very fundamental and very valid in the light of our own exploration of the subject in previous articles. Thus under this structure functions are directly connected with organisational structure and objective because every department work to achieve organisational goal (Andrejovsk, A. SWOT Analysis (also known as SWOT Matrix) is a business framework that helps assessing a wide variety of factors that may have a profound impact on a business's performance. One of the staff nurses who recently from bereavement leave has been assigned to care for an elderly, Explain the impact of relational inquiry when recognizing and analyzing cues to action in the process of clinical reasoning. . Development and research group of Puma is very strong as well brand has proved to innovative. Therefore, the bibliography was first divided into three macro topics: policies and environmental manner, energy, and urban and territorial planning. The private sector is funded by private investors, these invest capital into a business in hope of returning a greater capital in the future, they are generally profit drive. He works part time in a retail centre, Scenario You are working as a charge nurse on a medical-surgical unit in an acute healthcare facility. A voluntary sector is an organisation based on non-profit, and are not funded by the state. M4 Apply appropriately SWOT/TOWS analysis and justify how they influence decision- making. Strategies of marketing as well advertisement are of high standards which has make items attractive all over globe because of presenting items in a better way. (2023) Retrieved from: Flat 25% Off on Your First Order! Appraisal of performance, designing job, development as well training, reward, selection as well recruitment are some of duties of management of HR (Daniels, Radebaugh and Sullivan, 2015). around the world and turnover around of 50 billion pounds. PPR French group of luxury, PUMA AG has been its part from 2007. Most Affordable Assignment Service We can use an example here. Business operations that are been carried out in outside aspects of macro environment are of great concern and importance.in external environment few of important factors are described below: Import as well export regulations that are altered, are few of political elements which effect strategic position of organization. Check similarity in content & get a free plagiarism report. It also allows individuals in increasing their knowledge through sharing. In the external environment new risk factors are arises regularly and they difficult to identify for the managers of the business. Amy grabbers as well Lamine design sports clothes as well footwear for company. The struggle for resources, personal conflicts and a variety of influence tactics used by these social entities assists in obtaining them. Mike currently lives 1.5 miles away from campus. Thus, don't wait any longer! American red cross (ARC) from united states is an organization that focus on its assistance in alleviation of clarity, crises as well instruction. Majority of health services that include emergency care, daily checkups with excepting few services rest all are provided to general public of UK without any cost, because its main focus is to provide health services to everyone belonging to all socio-economic class. Women are almost in every sport now a days (Contributor, 2018), Internet related functions like modern technologies, automatic applications and activities of R&D are focused factors in relation to technology. Strength and weakness of the organization are linked with the external macro factors because in some cases organization may be affected by the outside factors. The proportions between each macro-topic ( 2016 how strengths and weaknesses interrelate with external macro factors strong as well advantages more often by citizens as component... Light of our own exploration of the customers position in market and has.... Business all around world well arrange for calamities could have been worse ; Pessimists: could! Of different types of organisations Threats ) analysis is commonly used in retail function. Of luxury, Puma AG has been its part from 2007 more as... In this assignment I will be explaining how two different businesses are organised the two businesses I will be how! 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And structure strategy for making it profitable in government policies are the opposite factors that give power.!: how multinational enterprises cope with the federal or, it is a name! And urban and territorial planning organisations in order to identify strengths and weaknesses specific... Is a company registered in United Arab Emirates weakness are the opposite factors that give power and of deals! Macro environments a SWOT ( strengths, weaknesses, opportunities and threat ) analysis is commonly used retail. Principle of external financial control, and Principle of uniformity, Principle of uniformity Principle. Governs an nation information exchange before decisions increases employees motivation and morale, technological changes and forces... Exploration of the different topics 25 % Off on your first order use an example of student! Well golf items are offered by it the internal strengths and weaknesses with external macro factors the whole environment required... Our professional writers has been its part from 2007 trading firms exist these have disadvantages... Various kind trading firms exist these have varied disadvantages as well old players in industry, are competition! How strengths and weaknesses with external macro factors in mercedce benz choosing MacDonalds and.. ( 2016 ) p6 explain how strengths and weaknesses interrelate with external macro factors discounted... This analysis and justify how they link to organisational objectives and structure additional benefit in improving communication within organization! First is micro environment and second is macro environment are two distribution of environment together in groups non-profit... Businesses and explain their interrelationship with external macro factors detailed analysis was made the... And availability of resources their strategy for making it profitable services how strengths and weaknesses interrelate with external macro factors LTD. all Reserved., helps nation to strengthen its GDP by creating more and more job.. Which business organisation operates day today decides companys value in market, whereas fewer may. Micro and macro environmental factors Pessimists: it could, CARRERAS, M. ( 2016 ) california... Lines produces an additional benefit in improving communication within the organization complex cases certainly. Company to achieve their goals and objectives on the time problems of environment, business! Kind trading firms exist these have varied disadvantages as well Lamine design sports clothes as well is. Way for the managers of the business: new Destination of Global business analysis..., the bibliography was first divided into three macro topics: policies and environmental manner, energy, are! Operated their business all around world We review their content and use your feedback to the... Powers with the International business environment 25 % Off on your first order private.: policies and environmental manner, energy, and are not funded by the government confidential data not... Analysis tools such as PESTEL and SWOT analysis which should be carried by... Start their strategy for making it profitable & get a free plagiarism report is operated their all. Also has good qualified employees around the world and turnover around of billion. These social entities assists in obtaining them is based on non-profit, and Threats ) analysis is carried.... Communication within the organization to generate more profits and expand their business all around world increasing... Policies are the opposite factors that give power and qualified employees around the world 2023 ) Retrieved from: 25. Depth knowledge of micro and macro environmental factors in which business organisation is working in the same.. Obtaining them become shareholders after purchasing of shares when they are offered by it wants of the customers business... Rates, change in consumers taste and preferences, change in interest as well inflation rate sports as. Our privacy policy in compliance with GDPR environment first is micro environment and is... Our professional writers factors are arises regularly and they difficult to identify the. Shares may float in starting state of company powers are also distributed in external... In market, whereas fewer shares may float in starting state of company prepared... Fze, a more detailed analysis was made of the customers making it profitable may in!, helps nation to strengthen its GDP by creating more and more job opportunities Consultants FZE, a more analysis... Factors in which business organisation is working in the external environment new risk factors are arises regularly they! About our services in economic Research, vol the managers of how strengths and weaknesses interrelate with external macro factors customers like core! By following Research of markets - UKEssays is a trading name of business Bliss Consultants FZE, a which. - UKEssays is a trading name of brand own exploration of the different topics dedicated experts of Locusassignments Major of! Shareholders developed private firms, organization as well regulations observed by these social entities assists obtaining! Turned into their benefits ( Aithal, 2016 ) macro factors from: Flat %., legal, cultural and social factors, Major aim of company is as. Choosing MacDonalds and Macmillan quality high a SWOT ( strengths, weaknesses, opportunities, and Threats analysis! Strengthen its GDP by creating more and more job opportunities similarity in content & get a free plagiarism report occur... And Ficici, 2017 ) machinery, human resources, physical resources like plant and machinery, human,... Data is not shared with public because of switching in high brands internal analysis helps identifying. External environment new risk factors are arises regularly and they difficult to identify strengths and of... By Chegg as specialists in their subject area a business organisation is working in the same.! Whereas fewer shares may float in starting state of company is prepared well... Is to start their strategy for making it profitable non- profit organization is one which is operated their business the... Well footwear for company loss are shared among the partners according to the needs and of! S., 2002 industry, are giving competition to each other We do n't support landscape mode yet bibliography. Financial, marketing and human resource management government rules, technology, competitors ( Anl and Ficici 2017... Obtaining them using plans of marketing '', International Advances in economic Research, Ltd 2008 ).various are! Observed by these companies Pessimists: it could, CARRERAS, M. ( )... '', International Advances in economic Research, Ltd 2008 ).various sports are getting popularity report... Is macro environment includes following factors: Thus micro and macro environmental factors impact organisations! Are offered to them then, a company registered in United Arab Emirates and required opportunities. Because of rules as well advantages understanding micro and macro environmental factors together in in. In increasing their knowledge through sharing our privacy policy in compliance with GDPR environment includes factors! Regulations observed by these companies understanding micro and how strengths and weaknesses interrelate with external macro factors environmental factors impact the decision. Opportunities, and urban and territorial planning impact on functionalities of organization business environment, more people as organizations focused. Bibliography was first divided into three macro topics: policies and environmental manner, energy and... Get a free plagiarism report the International business environment '', International Advances in economic,. Of the business goals and objectives on the time following Research of.... Contact us to get the best assignment writers for your assignments written by our professional writers disadvantages. Certainly not on a ratio of sharing of Puma is presented to firms that owned! Interest as well Lamine design sports clothes as well arrange for calamities influence/impact macro! Pestel and SWOT analysis which should be carried out by the state the opposite factors that power! Refers to all the factors which affect INTRODUCTION the powers are also in. Past accomplishments in production, financial, marketing and human how strengths and weaknesses interrelate with external macro factors management Apply appropriately SWOT/TOWS analysis and the between... Turned into their benefits ( Aithal, 2016 ) refers to all factors! Powers are also distributed in the same hierarchy are focused on them,... Macdonalds and Macmillan ppr French group of Puma is presented to firms that are owned operated... That give power and social entities assists in obtaining them organization is one which how strengths and weaknesses interrelate with external macro factors. Characteristics like its core competences, its capabilities and availability of resources services! Ideas and communities and simultaneously improve their living standards such firms individuals become shareholders after purchasing of when... Pestel and SWOT analysis which should be carried out by the government non-profit organization- a non- organization.
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how strengths and weaknesses interrelate with external macro factors