Interrelationship Between Different Functional Departments of Organization

Khalid Ramzan
S0272665
Unit 1: Business
and Business
Management
[4897]

Contents
INTRODUCTION...........................................................................................................................3
Explanation of different type and purpose of organization with their legal structure.....................3
Size and Scope of two different organization..................................................................................5
Interrelationship Between Different Functional Department of organization.................................6
Human Resources Department....................................................................................................6
Finance Department.....................................................................................................................8
Marketing and Sales Department.................................................................................................8
Operations and production...........................................................................................................9
Macro Analysis (PESTEL) of Aviva Private Limited...................................................................10
Political Factor...........................................................................................................................10
Economic Factor........................................................................................................................10
Social Factors.............................................................................................................................11
Technological Factor.................................................................................................................11
Environmental factor.................................................................................................................12
Legal Factor...............................................................................................................................12
SWOT Analysis.............................................................................................................................13
SWOT of Aviva.........................................................................................................................13
SWOT of The British Heart Foundation....................................................................................14
Impact of Micro and Macro Factor on Decision Making and Business Objectives of organization
........................................................................................................................................................15
Impact of Macro Factor on Business Objective and Decision Making.....................................15
Impact of Micro Factor on decision Making and Business Objective.......................................15
Interrelation between SWOT an PESTEL Factors........................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Business environment can be defined as those internal and external factors that can affect
business. These factors can affect performance of business. So company must lay special
emphasis on all external factors that is going to affect business. Present report will lay emphasis
on Aviva. Aviva plc is a British multinational insurance company headquartered in London,
United Kingdom. It has about 33 million customers across 16 countries (Turnbull and Haddud,
2018). Company also have been listed in London Stock exchange. The purpose of these
assessment is to develop critical knowledge of the organization and its functions that are
interrelated to each o.ther Present report will lay emphasis on various type of enterprises and on
their purpose. Assignment will also lay focus on the size and scope of different type of
organization. It will also provide organizational structure of Aviva and will also explain their
inter-relationship with other functional units. Report will also lay emphasis on the macro
environmental factors which can affect business. It will also explain SWOT analysis of two
different business.
Explanation of different type and purpose of organization with their legal
structure.
There are various types of organization and also these firms have different purposes. This
includes following:
Private organization- Organization contains a number of units created by company to
handle company operations that help achieve goals. There are including several kind of business
that is run by an individual to generate profit. This structure mainly concentrate on the desire of
customers and wants. After that measure satisfaction of customers for their different types of
products. An organisation can be categorised into different types of sectors like sole Private,
public and voluntary sectors (Eller, Fischer and Diedrich, 2016). There are defined different
sectors and their purposes -
A profit organisation are businesses that use a variety of plan of action to generate a
profit. The main goal of the company to make money as conflicting to a non profit organization
which focuses on a goal like support to community and is afraid with money only much as
necessary to keep the organization operating. For instance, Aviva is a British multinational
insurance company which is being engaged in making profit, attaining and retaining large
number of consumers. (Armeanu, Istudor and Lache, 2015).

Purpose – The main purpose of the Aviva is to provide international savings, retirement
and insurance benefits to the consumers of company and also to their shareholders, communities
and employees working with them.
Legal structure- It has been analysed that Aviva is being engaged in following various laws,
rules and regulations. Like for example they make sure that every employee in company is being
provided with safe and secure environment so that they can create employee loyalty.
Not for profit organisation (Public) – These types of organization that do not earn
profits for its owners. All of the money earned by or donated to a not for profit organization is
utilised in pursuing the organization's objective and keeping it running. Not for profit
organization consider as tax exempt charities and other types of public services and they are not
required to pay most taxes. For instance, Crown Prosecution service is the public agency that is
being engaged in doing criminal prosecutions that to in England and wales (Michalski,
Illustration 1: Organizational Structure of Aviva PLC