Business and Business Environment

This document explores the complexities of different types of business structures and their interrelationships with organizational functions. It discusses the advantages and disadvantages of interrelationships between organizational functions and examines the different types of organizational structures. Additionally, it conducts a PESTLE analysis to examine the macro-environmental factors affecting Ryanair and Ford.

BUSINESS & BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................1

·INTRODUCTION
The business and business environment imply all the intrinsic and extrinsic factors or
forces that can not be controlled by the business. Yet, they affect the processes of business
organisation. Such as buyers, rivals, suppliers and the government factors. Ryanair is largest
budget airline established in 1984-85. they conveyance many global passengers then any other
airlines. Ryanair is a low-price airline and there major operation bases in Dublin and London.
Ford motor company is American brand founded by henry ford. NHS is a public company. They
provide health related services. Samaritans is a charity object organisation, provides cerebral
support. Samaritans is founded in 1953-54. Samaritans works in telecommunication helpline
provides it services 24x7. Samaritans also provide private mail support. The report will evaluate
analysis of different types of business structure and contribution in business objectives and
interrelation with different organisational function. This will also evaluate merits and demerit of
interrelation and there impact on business structure, PESTLE to inspect the macro- environment
and its advantage, disadvantage and Inspect the both macro and micro affect the objectives and
decision making and SWOT analysis of Ryanair and ford impacts on there decisions.
Complexities of different types of business structure and interrelationships with organizational
functions. How structure, size and scope of organization link to business objective and
explanation of public, private and voluntary sector and their legal structures.
Complexities of business structure:
Industry complexities:
It includes the complexity which are there in the industry which can be the product complexity,
service complicity or process complexity. Complexities range from business to business. It
depends on the type of business structure. For example bakery company is less complex as
compare to the technology company (Hancock, Ralph and Ali, 2018).
Design complexities:
Each and every business have different designs. They have their own style of doing the business
so their design complexities are also different. These complexities can affect the business. And
the method of solving these complexities are also different.

Stakeholders:
Stakeholders involve public, shareholders, suppliers, employees, government, consumers etc.
company have to take care about all stakeholders while making the decisions. Considering them
company should make any policy or strategy. There rights should be protected.
l壱Interrelationships of different organization functions:
marketing and finance department:
These two department directly connects with each other. Marketing department needs budget to
carry out their advertisement and promotional activities and budget is made by the finance
department. Finance department knows the correct financial position of the company which they
tell to the marketing team. Finance department have the control over monetary things also they
do forecasting for the company (Hogg, 2019). Finance department is not responsible for making
budgets for the marketing departments only, but they make budget for each and every
department of the company.
Marketing and human resource department:
Marketing department is dependent on human resource department for providing skilled
marketing workforce. It is the role of HR to hire such marketing employee who have knowledge
of marketing and also have skills so that they can carry the marketing activity effectively. HR
gives salary to every department of the organization, and they also run incentives programs to
motivate the employees to do the hard work and achieve the objective of the company.
Finance and human resource department:
human resource department is responsible for hiring employees in the company and finance
department deal with the finances and finance related strategies. Finance department expect from
HR team to recruit people who have the knowledge and skill of finance. HR give advertisement
about the vacancy for which they require budget and finance department provide budget to the
HR team so that they can advertise about the vacancy and attract candidates to apply for the
position. If HR select wrong employee for any position then it will cause unnecessary expense
(Tynkkynen and et.al., 2018).
Research and development and marketing department:
Marketing department deal directly with the customers. So they know the demand of the
customers and research and development department do the innovation by doing research on
market trends. Marketing department help the research team in doing innovation as marketing
team know the

preferences of the consumers. Both department know that if company want top survive for the
long run then innovation is very necessary (Pinz, Roudyani and Thaler, 2018). Innovation is
required to attract new customers and to retain the old one.
Structure, size and scope of organizations link to business objectives and products/services:
Goals of the company depend on the structure and size of the company. Company should have
such motivated employees who help the company in reaching towards their goals effectively. If
small company want to become large company then they have to make such products through
which they can attract large crowd. Based on the structure, size and scope only managers makes
the decisions for the company. Public companies are the large companies. They have wide range
of products and services to offer to the consumers. Ryan air is a large private sector company.
They have big goals which they want to achieve in the future. If companies are large then they
can get competitive advantages and their operating costs also get reduced as they are
manufacturing in bulk. Small business like solely owned business. Its size and scope both are
small.
l壱Public sector:
Public sector is the government owned company. It is controlled by the government. Their aim
is to serve the society and also uses the resources wisely. Example NHS is the public company.
Public companies are the large companies. NHS provide health service to the citizens at the low
costs. Their aim to give medical service to the public by not focusing completely on profits The
management in the public companies are done by the employees of the government. The
objective of the public companies are not making profits but to provide the benefit to the society.
They are funded by the government bodies. There are also such government company in which
51 percent shareholding is of the government and remaining shareholding by other companies.
l壱Public company can medium in size or can be big also. The scope of the company is to achieve
goal but considering the public.
Legal structure: central, and local government manage the legal structure of the public company
like NHS. Government can have full or the partial ownership.
l壱Private company:
private people owned the private companies. These companies are even controlled and made
decisions by private people only. The objective of the private company is making profits only.
Government do not interfere much in the private company. Private company like Ryan air which
is an airline company. It is a big private company (Moullin, 2017). Private companies can be
under partnership as well. They study the market trends and prepare themselves according to the

market so that they can maximize the profits. Their aim is to grow the sales and achieve high
revenue. Private companies can be small private company, medium private company and
large private company. Owner handles the legal structure of the company. Owners of the
company receive the dividends and other benefits.
l壱Ryan air is big in size. Its scope is to provide good airline services to the passengers.
Legal structure: the legal structure is managed by the owners of the company. They are
responsible for all the decisions. They focus on making profits.
l壱Voluntary company:
The aim of the voluntary company is to serve the society. They want to make world a better
place to live. Their objective is not to make the profits but only to serve the society. They solve
the issues which are their in the society only with the feeling to do the social service. Samaritans
is the voluntary company who do the charity. Samaritans is a NGO. They give free telephone
service to the old people or the poor section of the society. This company is always ahead when
it comes to serving the society. Free of cost services is provided by the company. Voluntary
companies got funds from donations or charity. Non profit organizations comes under this. The
legal structure of the voluntary company is handle by the government social welfare. Voluntary
company work on local, national and on international level as well. Voluntary company want to
give good standard of living to the society (Johnston, 2017).
Samaritan is big in size. Its scope is to serve the society without bothering about profits.
Legal structure: trustees handle legal structure of the voluntary companies. They are responsible
for all the legal obligations.
Advantages and disadvantages of interrelationships between organizational functions
Organisational functions are group of activities done within a particular field in
company.
There are various types organisation function which are affected by there interrelationship.
Organisation carry various functions :
l壱Marketing function with finance function
Marketing function and finance function have to work closely for better result because
marketing and finance help in growth and organisation profit if the manager don't understand the
relationship between this functions is a big fault. Finance concern all the elements like profit,
sales, performance of finance, minimize the liabilities, prices at year end where as marketing

function concern with promotion, sales quantity, target market, advertisement and publicity and
more. If the company without the promotion and advertisement the sales of any commodity can
not be enhance and without sales there is not profit earning and finance function will lack behind
. In same way for good marketing of company need adequate amount of finance so that the
marketing expense can be easily beard by company (Šošková, 2016).
l壱Human resource management with finance function
Different organisation have the situation in shaping a fair working between this functions
of organisation. As finance function is concern with money and value whereas human resource

department focus on effective human capital and regard as essential asset. The finance function
use to focus on profit and looks the human resource management department as price unit. Both
the department works in achieving the end goal with maximum profit. The manager have look
on the cost of recruitment process and there contribution in objective (Xiao-Hui, 2020). it is
human resource management responsibility to select the effective employees those will improve
the profit of the company.
l壱Marketing function with human resources management
Human resource is not longer restricted to recruitment, development and engagement.
The human resource is working with marketing function to stand out there brand from other in
the market. Human resource are getting better people to upgrade meanwhile marketing made and
deliver the brand message to workers of organisation. For starting any process both department
and function people need to take collectively decision and strategies to get better result. The
collectively decision-making get more audience and more customer's as well. As the people who
will perform the marketing function are appointed by the human resource management so the
efficiency of people in marketing function is made responsible to human resource management.
l壱Different types of organisational structures
The organisational structure also know as series of command as the people according to
this structure make decisions. there are different types of organisational structures :
Functional structure : In this type of organisational structure the employees or worker
are segmented in same group according to there work ans task. This will improve the quality of
communication between the people of particular field or group. There are various department
which have having same level of employees like finance, information technology.
Divisional structure : This structure of organisation arrange the business process in
particular commodity, market, group and service. There motive is to create teams who use to
make same product twinned with want of particular group. There are different sector who use
this structure of organisation mostly food and beverage organisation use this structure.
Matrix structure : It is the collection of divisional and functional structures. This
structure is more productive than those two because in this structure peoples take decentralized
decisions.

Good communication in the employees and overall development of organisation but this
structure is subject to high cost and ambivalence in various functions this is a drawback of this
structure.
Hybrid structure : this is also include functional and divisional structures in it. In hybrid
structure they divide the activities into section which can be divisional or functional. There
functions use the resources. This structure is mostly adopted by big organisation (Shaw and et.
al., 2020). as the large organisation have different various levels of work to perform and they
have to divide the work to get specialisation and effectiveness in the work and leadership.
l壱Ryanair organisational structures
Ryanair is runs on functional structure of organisation. In which the Ryanair has putted all the
same task employees under a common group. So that they can transfer there idea and
information effectively. Ryanair having there functions of finance and information technology
with the same structure. In Ryanair the employees have to report to the chief member. This
organisation structure and decentralize decision help Ryanair to be more efficient. There is a fix
timing to complete the particular task in the Ryanair. The functional structure lead the
organisation to work effectively in that particular area. They use to divide the people so that
they can specialise in there work with time. The functional there is management system
accordingly to the performance by which promotion and skill development of individual is
identified in the same work force which help in achieving the objectives of the Ryanair. The
repeated work will make specialisation and specialisation will lead to more productive level.
There are some point in which the functional structure lack behind as the organisation can be
inflexible as the work has the particular standard high level of formalistic environment. The
Ryanair functional units are performing in best efficiency it will lead to level co-ordination
between different sectors or levels of work. This lack of co-ordination will delay the work and it
will reduce commitment.
PESTLE analysis
The PESTLE analysis helps to inspect the extrinsic environment and factors that are
outside the business but affect the function and process inside the organisation. As Ryanair and
Ford both are very large organisation. With the PESTLE analysis the investigate can be done of
all the macro- environment factors so, that organisation can understand there political,

economical, social, technological, legal and environmental factors effectively (Bienhaus and
Haddud, 2018).

l壱PESTLE analysis of Ryanair
l壱Political factors
This factors tell the government interference in the organisation of Ryanair and ford.
The government involution is in different forms as Ryanair having there large operation they
have to follow international rules and laws, most critical of such day of COVID-19 the rules of
travel has been restricted by the government. The health authority announce the guidelines for
travelling so that virus spread can minimize. The uncertainty of Brexit is been very challenging
for the Ryanair business (Green, Taylor and Ford, 2020).
l壱Economic factors
This factor have an important role have significant affect on the work of the
organisation and there ability to earn the profit. Ryanair passengers rate is dropped due to
restricted rules in COVID-19 by which the Ryanair have to bear great loss. Then they cut there
human resources to minimize the loss. Ryanair will continuously economic reverse in future
months. The oil pricing are increasing in this situation that is also affecting the Ryanair. Ryanair
have to face negatively as there potential and fresh both customer get reduced (Volodymyr,
2019).
l壱Social factor
Social or cultural factor are those element which check the attitude of there customers.
Population increase, distribute age, occupation cognition. Ryanair customer's in COVID-19
shifted from airlines to speed railways for short path. The society needs safety and comfort,
Ryanair have to focus on the safety more in this pandemic period so that tourism get to know the
safety features and these will act as opportunity for Ryanair to reach there customer back
(Westphal, 2019).
l壱Technological factor
The technology plan a great role in the marketing of any product or service. Ryanair is
increasing the consumption of service with enhancing the digital site of mobile application to
improve the consumer experience. Customer can easily book there travel seat online with the
phones, it will help in reaching more customers.
l壱Legal factor
This factors are make keeping the customer's safe and healthy also there rights towards
the product safety. The organisation need to understand the legal so that they can business
successful.

Ryanair is following laws set by European committee to get there aid in European airfields. The
Ryanair used the Brexit to follow the united kingdom and European regulation.
l壱Environmental factor
Environment factor plan vital role in the function of organisation involves climate,
pollution and weather in which organisation is running. Ryanair use to provide transportation
facilities so they use greenhouse gas more. Generally EU rules of emission for airways led to
increase the prices of Ryanair. The Ryanair is using eco friendly equipments so that they not
harm the environment much with there services and they satisfy buyer needs (Ahmady,
Mehrpour and Nikooravesh, 2016).
PESTLE analysis of NHS
Political Factor
Brexit has become is big things for Great Britain as the uk have left the European union is
one of consequence of the uk society peoples of NHS. Different article and newsletter are
published for how Brexit have impact on NHS as it serve different peoples.(Prichinet and Le
Duc, 2020).
Economical factor
NHS used to be active in changing economic environment. NHS used to identify the
opportunities to grow faster. The employment rate is comparatively low in the pandemic period of
COVID NHS used to provide health facilities to different peoples of the society.
Social factor
NHS get the benefit from social side as they used improve health of peoples. NHS is helps
the people in the panic time of COVID-19 provide needed help to all the peoples how are in need
of help to overcome from the virus. NHS organization continuous serving the people who are
facing the problem as per there age. The NHS patient also have a high expectation to overcome
from their particular disease.
Technological factor
Improvement in healthcare is slowly but being done in NHS. With the help of better
education regerding the COVID-19 people get more aware to get safety. Increasing in usage of
mobile will help NHS to grow. NHS also increasing there online service so that the customer not
have to wait, and they can apply directly though phone. NHS have the opportunity to build its
technological factors so that more customer get attracted with the service and join the
organization.
Legal factor
litigation is generally sort of following circumstances. If the patient are not being
satisfaction with the service then they are taken to court . So NHS is doing its activities keeping in
mind all the laws which are as under COVID and Brexit of Britain government and treating their
patients very well.
Environmental factor
Britain national health service is a main spot with Brexit uncertainty they face
various struggles related to finance, ageing population and different legal claims all the
things are become very difficult and nothing is going right foe NHS. ITS Techniques lead

NHS to provide a quality of healthcare facilitates in united kingdom in COVID situation,the
climate and weather changes make opportunities and threat for NHS in macro-environment.
l壱
SWOT analysis
l壱SWOT analysis of FORD:
l壱Strength:
The brand value, huge investment in research and development, wide offerings, huge
network with global presence and using of latest technology for marketing are some strength of
Ford which helps it to rule over the market (Gürel and Tat, 2017).
l壱Weakness:
Due to diversification in the operational areas, and less focus over the particular product,
the efficiency and effectiveness of the products of Ford decreases which become one of its
weakness and affects the brand image of the company. Also, by less adoption of safety devices
in its products and more dependence on US market it faced many difficulty in terms of decrease
in its sales.
l壱Opportunities:
Adoption of the latest marketing techniques including the digital marketing and
producing environmental friendly products would become opportunities for Ford because by
doing this it leads to more attraction of customer and this could help the Ford to make the global
presence

(Sarsby, 2016). Also, as Ford is already meeting the needs and dealing in big countries which
made very easy for ford to deal in other smaller countries which again become an opportunity for
it.
l壱Threat:
Competition is one of the biggest threat that Ford is facing and affecting its business
operations. Apart from competition, continuous increase in the prices of raw material with the
abiding and following of laws or rules and regulations are some common threats of Ford which
it faces (Teoli and An, 2019).
l壱SWOT analysis of Ryanair:
l壱Strength:
Offering the low cost flights is one of the biggest strength of Ryanair because Ryanair is
the only company who offered such low cost flight to the passengers. Also, Ryanair is the only
company who offered short distance flights covering many destinations which is again its
strength because due to this it is able to attract the businessman towards it who often need to
travel for short distances (Jurevicius, 2017).
l壱Weakness:
Due to its low refund policy it pays a very small proportion of ticket in case of
cancellation puts a negative impression among its passenger which becomes one of its weakness
and affect its business. Also, the labour relation and not satisfying the employees in terms of
compensation are also some weakness of Ryanair.
l壱Opportunities:
Ryanair is one of those companies, who got covid finance which is one of the
opportunity for Ryanair to operate its business during such pandemic. Also, with the presence of
good and efficient staffs Ryanair can grab many future opportunities. Also, as Ryanair is more
focussed towards its passenger which again become an opportunity for Ryanair to proves itself
best.
l壱Threat:
Covid and its restrictions are one of the biggest threat for Ryanair as it restrict the
movement of flights in many countries which severely affect the business of Ryanair. Also, due
to Brexit the prices in the market would lower down which is again become one of the threat for

Ryanair (Prichinet and Le Duc, 2020). Continuous fluctuation in the oil prices with
uncertainty

and competition among the similar company offering similar services are also some threats that
Ryanair is currently facing or may face in the coming future.
Impact of strength and weakness on external macro factors
l壱Political factors:
As Ford is a technology driven company which is one of its strength and due to
continuous support by the government in technological advancement proves as an opportunity
for Ford. Also, due to the global presence of Ford and due to government support regarding
international trade also benefited Ford.
l壱Economic factors:
Due to continuous increase in prices or inflation situation of any country proves as a
weakness for Ford and may leads to threat to the company. While economic growth create
opportunities for Ford which may lead to expansion of its business.
l壱Technological factor:
Adopting the latest marketing technology and techniques by Ford proves as technological
strength for it. While using of some low safety techniques in its products or less technological
advancement towards safety measure is one of the weakness of Ford which could badly affects
it. Social factors:
Due to more increase in the demand and attraction of customers towards latest and
updated auto mobile proves as a strength for Ford which create many more opportunities to it.
Also, the good attitude towards customers is one of the strength of Ford which again leads to
success (Shtal, 2018).
l壱Legal factors:
This factors can either become strength or weakness for Ford which means if Ford will
do all its work by following the various laws and regulations then this will become strength for
Ford to meet the legal factors while in case of non abiding by laws may become threat for Ford
in terms of legal factors.
l壱Environmental factors:
Due to more awareness among the people towards the environment and production of
environmental friendly products with less carbon dioxide emission, by Ford become one of its
strength to meet the environmental factors and creating opportunities for it.

·CONCLUSION
Through this report it can be concluded that there are complexities in the different
business structures and there is interrelationship between different organization functions. The
link is analysed between structure, size and scope of the organization with the business
objectives and the products and services offered by them. Detail explanation of the public
company, private company and voluntary company is done. Advantage and disadvantage of the
interrelationships between the organizational functions and their impact on the organizational
structure are accessed. To evaluate the macro environment of the company pestle analysis is
done and also mentioned the positive and negative aspects of the external environment. And in
the last swot analysis is done to know the strength, weakness, opportunities and threats of the
organization in the decision-making.
·
·

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