The objective of this report is to evaluate impact of business environmental factors over the organizational operations and decision making practices. Therefore, it is required for an organisation to conduct an analysis process by considering:
- Discuss different types of organisation as well as their size and structure.
- Evaluate the interrelationship between different organizational functions and its impact over business operations.
- Analyze the positive and negative impact of macro environmental factors over business decision making of Helifax Bank.
- Discuss the strength and weaknesses of Helifax bank and its interrelationship with external factors.
Business environment is the combination of the entire internal and external factors which can influence an organization's business. It is the most important aspect and helps in the awareness of the ongoing current changes in market. The factors which are included in the business environment can be explained as company's competitors, consumer groups, government and its laws, customers, technologies, current trends, market conditions, suppliers, etc. It helps to identify threats as well as opportunities for any organization.
In the present report, it will focus on different types of business organization such as sole traders, partnerships, private, public, etc, and their size, structure and scope. It will also explain different internal and external factors which influence the organization and their interrelationship with the macro environmental factors. PESTLE and SWOT Analysis of Helifax Bank and the positive and negative impacts of macro environment on organization are also covered in this report.
Different Types of Organization and their size and scope:
An 'organization' is a group of individuals working together in order to achieve certain goals and objectives. There are various types of organization whose purpose is to meet different needs and wants of the society in which they work. There are many organizations which works for only profit while there are some organizations which serves to promote a social cause or to uplift the well being of society. Based on these characteristics, there are different types of organization present in the market, such as profit and not for profit and non-government organizations (NGOs).
For Profit Organization :
Any organization or business which is set on the basis of generating only profit from is considered as profit organization. These organizations are generally owned by individuals or group of entities and which usually operates in private sector and known as businesses. These are not run by any state or government bodies but still they have to follow the legal and financial framework which has been set by the state government in order to work properly. In this, the profit or revenue which is generated by the organization is reinvested into the business to maintain its consistency and sustenance. The remaining amount is being distributed among all business investors or shareholders, who are working with organization. These can operate in multiple sectors, for example, food, technology, fashion, manufacturing, retail, etc. (Armstrong, G. and et-al. 2015.).
Non Profit Organization :
These organizations work for the improvement and well being of society in which they operate or work. Their sole purpose is to serve people for their better welfare. These organizations do make profits for their business but with the purpose of working for public benefits. In this type of organization, it includes social enterprises and charities. The revenue generated from the business is not distributed among all the members of the organization rather it is used for some public welfare. These usually generate funding through various ways such as, from donations, sponsorship's and other similar investments from different organization. They work in the field of educational sectors, religious, and scientific.