These differences seem very fundamental and very valid in the light of our own exploration of the subject in previous articles. 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. Both the factors are interrelated to each other and they may increase the risk of external macro factors in the organization. Micro environment includes factors like competitors, suppliers, stakeholders, investors, customers etc and macro environment includes economic environment, technological environment, and cultural environment etc factors. Strengths are things that add value or offer your organization a competitive advantage. According to Paul H. Appleby, the public administration is different from the private administration in three important aspects, the first is the political character, secondly the breadth of scope, impact and consideration and public accountability. With respect to technologies, popular games as well personal tastes, this sector is in evolution continuously. After World War 1, programmers that were initiated by Red Cross include wellbeing of water, nursing well-being general program, and treatment during emergency during that time a very positive as well affective achievement was accounted in relation to this organization. out in an organization so that business can be expanded smoothly in the competitive world. JP Morgan has strong position in market and has the . So, company should regularly make efforts in improving its weaknesses (Gupta, J.L. Management compares quality of the particular organization variables in economic, political, technology, social and social etc.. . Accessories, shoes as well attire are part of puma production, and SE Puma is involved in sports sale items of lifestyle related to sports. Scope of the company also decides where they want to go and how much they have to earn more profits with their strengths (Gharajedaghi, 2011). The struggle for resources, personal conflicts and a variety of influence tactics used by these social entities assists in obtaining them. 1, pp. 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. types of organisations mentioned below with their purpose: Organisations performing their business activities in Private organisations are mainly, owned and run by an independent person or in a partnership with a common purpose to earn, more and more profit (Anl and Ficici, 2017. In the external environment new risk factors are arises regularly and they difficult to identify for the managers of the business. The more involvement these agencies and administrators have within the political system directly correlates to the public activism in politics as well. The swot analysis of Apple presents the analysis of innovative company and how it is leading to the market technology. 2014). Companies run business activities in private sector, helps nation to strengthen its GDP by creating more and more job opportunities. 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. e.g. Doing this allows you to gain a better understanding of the strategic choices that you face. Daily management is not looked after by one partner while investment in business is equal for inactive member. To perform different activities of business, individuals as well group of people make use of mediums as well various channels. Strengths can be exploited, built upon and made key to accomplishment of mission and objectives. SWOT analysis is a dynamic part of an organization's business and management development process. I am going to talk about two organisations and how they operate. For this, financial strong foundation needs to be building up. Macro environment includes following factors: Thus micro and macro environmental factors impact the organisations decision making policy. Both the factors are interrelated to each other and they may increase the risk of external macro factors in the organization. Confidential data is not shared with public because of rules as well regulations observed by these companies. Analysis of economic factors whether there is any change in interest rate, inflation rate and inflation rate. In figures it is 1, 40,000 workers are employed and make its contribution to the company. Internal factors include customers, suppliers, employees, shareholders whereas external factors are economic conditions, government rules, technology, competitors (Anl and Ficici, 2017). .. P6) Explain strengths and weaknesses inter-connected with external macro factors. The other three are Principle of uniformity, Principle of external financial control, and Principle of service motive. Contact us to get the best assignment writers for your assignments. Trades of day today decides companys value in market, whereas fewer shares may float in starting state of company. 17, no. Apply TOWS (SO,ST,WO.WT) and justify how they influence decision making Finally Evaluate using your own judgement and opinion how Furthermore, these factors may either be . 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. Whereas, SWOT (Strengths, weaknesses, opportunities and threat) analysis is carried out. Big and major changes in the macro environment factors are usually outside the control of business so it is necessary that management of the company should be able to analyse the effect of these factors so they could make good decisions. Public organization- A public organization is the organization which is controlled and managed by the government authority of that country where it is establish. 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. | All rights reserved. LO4 Determine the internal strengths and weaknesses of specific businesses and explain their interrelationship with external macro factors. 2015). P6 Explain how strengths and weaknesses interrelate with external macro factors. P1) Discuss public, private and voluntary organization's purpose and legal structure. Puma is required to make amendments in financial policies as well plans of budget because of continuous as well rigorous competition in market which is affecting policies of Puma in regard of war in price (Cumming and Zahra, 2016). Explain different types and purposes of organisations; public, private and voluntary sectors and legal structures. SWOT Analysis: Bringing Internal and External Factors Together. and controlled by a single person who is mainly termed as sole proprietor. For manufacturing, designing, developing as well selling of watches, glasses as well perfumes it also provide license to partners that are independently authorize e.g. 2014, "Payment Discipline in Business Environment", Procedia Economics and Finance, vol. Jurigov, Z. It is very expensive organisational structure (Andrejovsk, A. Puma is not able to assess macro factors of environment; tactical as well strategic plans are influenced if it failed to consider basic strength as well weaknesses. Various kind trading firms exist these have varied disadvantages as well advantages. Free resources to assist you with your university studies! There are mainly two types of partnership namely, limited partnership and, Organisations performing there functions in this form of private legal structure run, their business activities with a motive to run more and more profit and did not offer their or issue. These factors may either be internal to a company or external. Cultural and social analysis helps in identifying current trends, lifestyles, fashions and other components of culture. Having that are loyal is tough because of switching in high brands. Development and research group of Puma is very strong as well brand has proved to innovative. P5 Internal and external analysis of H&M in order to identify their strengths and weaknesses. Copyright 2023 @ Global Assignment Help Australia. Some other political elements consist of tariffs as well restriction trade. IKEA also affected with these external environment forces. This is mixture of functional organisational structure and divisional organisational structure. Cumming, D.J. Change in consumers taste and preferences, change in interest rates, change in government policies are the example of macro environmental factors. A basic determination of a firm's relative strengths and weaknesses is often the first step in the internal evaluation. With the analysis of resource availability organisational capability can easily identified. 2014). | All rights reserved. It receives funds from outsider of the organization. Puma distribution system is influenced by following factors. Whereas, in relation to problems of environment, more people as organizations are focused on them. *You can also browse our support articles here >. The company I work for would fall under the private sector, our company has directors and business partners who put money into the company or use our services to benefit their own companies. With state collaborating, such firms get developed as well established (Sethi, and Guisinger, 2002), Explain the size and scope of a range of different types of organisations, One of organization that is private is Puma. 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. This report will University: UK College of Business and Computing. 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. There are many factors included in micro and macro environment. Introduction: Macro environment in a business refers to the external influences to the business in any given situation. This is accountable to share political powers with the federal or, It is the political authority which governs an nation. Business environment can be describe as a collection of macro and micro factor that has impact over organisation as well as its decision making (Babu, 2012). And administrators have within the political authority which governs an nation they operate & M in order to identify strengths! The other three are Principle of uniformity, Principle of uniformity, Principle of service motive make its contribution the. 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