Different Types of Organisations and their Functions

This article discusses the different types of organisations - public, private, and voluntary - and their functions. It explores the interrelationship of functions within an organisation and how they link to the organisational structure. The functions of Marks and Spencer are analyzed using an organisation chart, highlighting their impact on organisational objectives.

BUSINESS AND BUSINESS ENVIRONMENT
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Table of Contents
Introduction................................................................................................................................3
LO1 the different types, size and scope of organisations...........................................................3
P1 The different types of organisations and the growth of the international business
environment............................................................................................................................3
LO2 The interrelationship of the various functions within an organisation and how they link
to organisational structure..........................................................................................................8
P3 The functions for Marks and Spencer using an organisation chart to show how the
functions interrelate and how they link to the organisational objectives and structure.........8
P4 The macro environmental factors that impact on the business operations, highlighting
the positive and negative impacts........................................................................................12
LO4 The internal strengths and weaknesses of specific businesses and explain their
interrelationship with external macro factors...........................................................................15
P5 The internal and external analysis for Marks and Spencer in order to identify the
strengths and weakness and their influence the decision-making process...........................15
P6 The key strengths and weaknesses, and the interrelationships these have with the
external macro factors..........................................................................................................17
Conclusion................................................................................................................................17
References................................................................................................................................19
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Introduction
In understanding the various type of organisation, it has been found out that the organisations
are different from each other by their purpose. This purpose of this organisation is also
developing different operations and functions for the organisation. However, there are three
types of organisations in the United Kingdom and the rest of the world. These organisations
are interrelated to each other because after all together these organisations contribute to the
country directly or indirectly. Depending on the purpose of these organisations the
organisational structure, legal structure and corporate policies are being constructed.
However, in this discussion, a different type of organisations their structure their function and
the influence of external and internal factor on this organisations will be analysed.
LO1 the different types, size and scope of organisations
P1 The different types of organisations and the growth of the international business
environment
Depending on the purpose of the organisation there is three types of organisations which has
identified in the United Kingdom. Among them, the contribution of this type of organisations
is directly or indirectly related to the country's development and growth process (Drucker,
2017).
Public Organisation
The government of the country develops public organisations for improving the state and
provide service to the general population. However, the civic organisations are wholly
controlled by the government. In addition to that welfare of the society and different public
services is the primary functions in which these organisations are associated. However, the
public organisation can be run by the local government, the national government, the
provincial government, etc. However different public services like police service, educational
services, health services, transport services are part of the operations maintained by the civic
organisations (Hillary, 2017). In the country United Kingdom, some of the public services are
free for the citizens, and the facilities are run by the taxes given by the public of United
Kingdom.
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The public organisations are usually medium or large size and run by the government or
government-sponsored funding. Not all the public organisations internationally spread but if
any public organisation spread globally, then the main reason for this expansion is
contributing to the economy of the country. However, the process of spending any public
organisation into international boundaries is one of the most complicated methods of business
history. Because if a general organisation of United Kingdom wants to expand their business
in another country, then they have taken legal permission from the Government of those
countries or need to collaborate with those countries’ government (Botha et al. 2014).
However, this process is usually more time to consume and also long process in nature. Some
of the business, which used to expand in international boundaries and also public
organisations, are the banks, the public railways, etc.
Private organization
The word private can easily show that the General public owns the private organisation.
However, it is ever done that private organisations can be built up by a private owner or
multiple private owners. The primary purpose of the private organisations is to develop a
business for gaining profit by selling services and products (Hair Jr et al. 2015). In addition to
that, the private organisations have an essential part of their organisational practice which is
their shareholders. Most of the private organisations have their share in a market which has
been sold and purchased by their shareholders. However, this shareholder is counted on the
part of the organisation and stakeholders, and their view and decisions are counted as
necessary as the decision of the owner. In addition to that, a private organisation can be built
by a person, Association, a corporation or a partnership. The private organisation did not
contribute directly to the country, but the contribution of private organisations in the
country's GDP is remarkable. In addition to that in the state of United Kingdom, the private
organisations are majority in number then public or voluntary organisations. A private
organisation can be both not for profit, and in identifying the examples for the private
organisation, the credit unions retail stores a different type of local business can be counted
(Goleman, 2017).
There is a huge possibility that a private organisation will expand internationally. Most of the
private organisation, who is successful in their country, wants to grow their business out of
the national boundaries. This is considered as a development process of private organisations.
The best part of their expansion is they can very flexible develop their business in other
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countries because only a considerable amount of investment will be enough for the expansion
process (Charter, 2017). Most of the time for gaining profit in abroad these organisations
collaborates with the local organisations of those host countries. But if these organisations
want to expand without any collaboration some challenges in the initial days they have to
fight with. For instance the lack of human resource, the language problem in a foreign
country etc can be highlighted. Most of the time the expansion of private organisation in
foreign nations is successful and this organisation able to develop a more significant
customer base in the international market (Deasy et al. 2017).
Voluntary Organisation
Development of voluntary organisation is mainly related to the growth of the society.
However, it has been seen that a group of people who are interested in some specific issue or
social agenda develop their group to make the change in their similar belief. However, most
of the voluntary organisations are not related to the government, but government funded
voluntary organisations are also seen. It has been observed that these organisations are either
self-governance or established by the funding of trustees or business icons (Crane and
Matten, 2016). In addition to that, the voluntary organisations want to improve the condition
of the society and also well known as not for profit organisation. It can be said that the
common interest of a group of people for the improvement of the nation help to develop a
voluntary organisation. Voluntary organisations have not always paid employees, but they
have volunteers who contribute their work to the development of the organisation and
situation of the society.
In the voluntary organisation, International expansion is limited. It is only possible when no
country or similar voluntary organisations that have the same goal then collaboration can be
made up within them (Bryman and Bell, 2015). It has been identified that most of the
voluntary organisations who are working in different countries is internationally recognised
and work in different countries. However, these organisations have a massive contribution to
the society and the country, but the economic contribution is absent.
P2 The background details of the organisation; the products and services they supply;
the size and scope of the organisation; their vision, mission and business objectives; the
organisational and legal structure; and information about their stakeholders
Public organization
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The United Kingdom has multiple public organisation among them the department of
transport is a significant one, and it is divided into 21 different agencies. Among them the
driver and vehicle licensing agency of United Kingdom he is critical because this
organisation consists of multiple responsibilities related to the database of drivers and
vehicles of United Kingdom (Sekaran and Bougie, 2016). However, this organisation has
found it in the year of 1965. This organisation issue driving licence as well as counted under
the exclusive agency of the department of transport. However different problems related to
the licence of vehicle and individual are being responsibilities of this organisation. In addition
to that, there are various stakeholders of this organisation which is the government public of
United Kingdom, different vehicle organisations, their employees, etc. The future scope of
this organisation is to develop their supervision for issuing the driving licence for both
vehicle and individuals (Kolk, 2016). This is counted under one of the large organisation
operated by the government of United Kingdom. The Vision, mission and business objective
of this organisation is to increase the flexibilities of the road of this country for better
transportation facilities. In addition to that, the organisation has a proper legal structure which
is developed by the government.
Private organization
There are numerous private organisations in the country of United Kingdom. Among them
one of the leading, 134 years old organisation is Marks and Spencer. However, this
organisation is international organisation and spread all over the world (Savrul et al. 2014).
They are mainly famous for the luxurious food products, clothing items and home products.
Except that this organisation has more than 80000 employees globally who are providing the
customers best services in their retail stores. The mission and vision of this organisation are
to be the leader of the Retail Industry by providing the customers best quality of product and
services. However, there another objective is to expand their business in all of the countries
by either opening their stores or collaborating with other local organisations (Islam and
Mamun, 2017). This organisation has a structure which is pyramid shape where the so or
management level are in top positions and the general employees or retail storekeeper in the
bottom. In addition to that, this organisation is internationally spread the legal structure of
this organisation depends on the country; they are operating. Finally, this organisation has
numerous stakeholders which include their shareholder customers, employees, suppliers, etc
(Moro Visconti, 2016).
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Voluntary Organisation
The purpose of this organisation has made it unique because this organisation is associated
with preserving The Heritage culture of the United Kingdom for a particular geographical
region. This organisation is essential for their non-profit nature, and their contribution to
conserving the natural beauty of United Kingdom is remarkable. However, this organisation
fully names at National Trust for places of historical interest or natural beauty. This
organisation is counted as one of the greatest charities of United Kingdom, and there are
61000 volunteers of this organisation (Islam and Mamun, 2017). In addition to that, there are
Board of trustees who are associated with the financial backup of this organisation. However,
the national trust has developed in the year of 1894, and the original vision and mission of
this organisation are forever for everyone. In identifying the total staff of this organisation
more than 4900 stuff is listed. In addition to that, the organisation is also well known for their
work. The stakeholders of this organisation are the population of the United Kingdom and the
government (Moro Visconti, 2016).
LO2 The interrelationship of the various functions within an organisation
and how they link to organisational structure
P3 The functions for Marks and Spencer using an organisation chart to show how the
functions interrelate and how they link to the organisational objectives and structure
Marks and Spencer is one of the oldest retail organisation which is initially founded in the
United Kingdom. This organisation is currently a multinational organisation nearly situated in
every country of the world. However, this organisation has around 979 retailing stores
worldwide (Marksandspencer.com. 2018). In addition to that for their expansion in every
country, they had to maintain the illegal structure of that country. Except that, in each of the
country, they have individual CEO under them different department’s works. As it is evident
the organisations mainly have their retailing stores for food items, home products, and
clothing items. There are five different departments of this organisation. Among them, for
especially observing the products there are other services. Except that there are four different
departments under the CEO those are the security department, the administrative department,
the retail shop and the Logistic department (Drucker, 2017). In each of this department, there
is a different type of employees and management systems.
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Figure 1: Departments of Marks and Spencer
(Source: Marksandspencer.com. 2018)
However, for the product management, the organisation has a different structure. The product
management section the organisation has three different managers. Those are Development
Manager, Quality Assurance manager and business analyst manager. As the organisational
structure is a pyramid-shaped structure therefore under the business analyst manager, there is
a different business analyst for each of the product they sell. Similarly, under the
development department, different developers are associated with developing the total
package item. And finally, the quality assurance manager works with different taster who is
associated with one product each.
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CEO
administrative
department
SENIOR
MANAGER
GENERAL
MANGER
EMPLOYEES
security
department
SECURITY
EMPLOYEES
Logistic
department
WAREHOUSE
STAFFS
retail shop
SHOP KEEPERS

Figure 2: organization chart
(Source: Marksandspencer.com. 2018)
Another important structure of this organisation is the retailing shop (Hillary, 2017). The
organisation Marks and Spencer have their retailing shops which have a unique structure of
the different type of stuff which is associated with maintaining shop only and initially
connected with the customers of the shop and ready to give them service.
Organisational objectives- this world-famous organisation has three different type of
objective related to the organisation. The main or primary objective of this organisation is to
develop this organisation as a leader in the industry. Except that the organisation also takes
care of their main two selling items and one to grow their business in clothing and food
selling. In addition to that, providing the customers of the organisation the best quality of
product with the value of their money is also important (Botha et al. 2014). The second
objective of this organisation is their employee orientation. The organisation wants to expand
their business but also want to develop the career of their employees. For providing the best
quality of work environment, they have given their employees flexibility and also provide the
opportunity to grow their career and for achievements of their professional life. Besides, the
organisation also provides motivational lessons and development training to their employees
not only for meeting organisational objective but also for their career development. The final
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CEO
business analyst
manager
business
analyst
PRODUCT 1
business
analyst
PRODUCT 2
development
manager
developer
product 1
developer
product 2
quality assurance
manager
tester
product 1
tester
product 2

objective of this organisation is to expand their business globally and gaining profit from
their business (Hair Jr et al. 2015).
Interrelationship between the organizational objectives and functions- Marks and
Spencer is one of the growing United Kingdom-based organisations who is known for their
best quality of products and customer service. However, this organisation has some specific
objective which has been developed by the multiple owners of this organisation. For
developing these corporate objectives the leaders of this organisation has done their research
on the market of the United Kingdom and rest of the world, especially in the Retail Industry.
However, it can be said that these objectives have been developed by the leaders to develop
their business strategy and business planning for the organisational future (Goleman, 2017).
For achieving the organisational objectives, the leaders develop different operations within
the organisation which are being performed by the employees. The different functions of this
organisation are related to the objective. For example, it can be said that all of the products of
the organisation is being stored in the warehouse. From the warehouse of Marks and Spencer,
the products are being delivered to the retailing store from where the customers can easily
buy it. However was the objective of this organisation is to provide the customer best quality
of products and for meeting this objective the organisation has developed the functions of
delivering the product to retail shops and storing the product in the warehouse (Charter,
2017). However one of the objectives of this organisation is to provide the customer best
quality of products and for meeting this objective the organisation has developed the
functions of delivering the product to retail shops and storing the product in the warehouse.
In addition to that for providing the customers best quality of products, the organisation has a
structure which has different business analyst developer and tester who has the responsibility
of testing the product before storing it in the warehouse. Finally, it can be said that this world
famous retail organisation of United Kingdom has developed the organisational function for
achieving the organisational objective just like other organisations (Deasy et al. 2017).
LO3 Both the positive and negative influence/impact the macro environment has on
business operations
P4 The macro environmental factors that impact on the business operations,
highlighting the positive and negative impacts
For understanding the external factors of an organisation, six different major external forces
need to analyse. However, by doing a PESTLE analysis the external business environment of
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Marks and Spencer can understand. The external environment includes the political,
environmental, social, technological, economic, legal factors of the organisation. However,
after appreciating this external environment or macro environment the positive effect and
adverse effect of these factors can be easily understood.
Political factors
The political situation in this country impacts this UK based retail organisation. However, the
governmental regulation of this organisation refers to free trade policy which helps them in
providing sourcing cost at a low rate. In addition to that, the situation of Brexit has also
influenced the sales and other functions of this organisation (Crane and Matten, 2016).
However, the Government of this country is stable but changing Government and the taxation
rules of the government will be going to affect the organisation anytime.
Economical factors
This country is one of the most economically stable nations in all over the world. Instead of
that, the organisation is associated with different type of suppliers from home they purchase
their products. However, different small conflict also is seen in their suppliers and even
sometimes in the retailing shops due to the impact of economic factors. In addition to that, the
Brexit situation has impacted on the currency of this country which has negatively impacted
on this organisational development (Bryman and Bell, 2015).
Social factors
Marks and Spencer is one of the famous retailing stores in the United Kingdom; however, the
existence of different communities in this country is evident. Instead of that sometimes the
supply chain of the products create other kind of negative social trend in the organisational
process. In addition to that if the organisation was not able to change the product with the
social trends, then it will also affect their sales pattern (Sekaran and Bougie, 2016). However,
the income of the society can also affect the organisational profit because if high price
product is the sale by the organisation, then most of the population will not going to purchase
their products.
Technological factors
It has been identified that technological advancement is a necessity in any organisation
including Marks and Spencer. However, the organisation Marks and Spencer need to develop
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better infrastructure which is technologically developed in both of their warehouse and
retailing stores. The main specification needs to do in their risk management and security
issues(Kolk, 2016).
Legal factors
Marks and Spencer need maintain a proper legal structure because in every country they
expand their business they need to cope up with a new set of laws and regulations. However,
therefore, different laws related to the organisation like health and safety law, discrimination
law, gender equality law, diversity law, labour law need to maintain in every part of the
world in they are operating.
Environmental factors
As this organisation is associated with food products, they need to provide the customers best
quality of food with his dependent on the environmental condition of the country (Savrul et
al. 2014). Therefore for providing the best quality of food to the customers, they also need to
maintain different environmental factors within the organisation. In addition to that, the
warehouse facility needs to develop more for keeping the food items in a healthy condition.
Instead of those different environmental issues like energy consumption, waste management,
and pollution need to maintain them for maintaining their corporate social Responsibility
properly. Finally, if they want to enhance their organisational position in the market, they
need to produce more environmentally friendly and sustainable products.
However for this organisation Marks and Spencer this external factors somehow positively
and negatively impact the organisational functions and growth process.
The positive impact- according to the current situation the political factors of the
organisation positively enhancing the business by their free trade policy. Instead of that the
technological advancement and legal facilities are also helping this organisation in their
Rapid growth. These positive external factors sometimes also act as a negative factor because
they are ever changing (Moro Visconti, 2016).
The negative impact- however because of the Brexit situation the economic factors of this
organisational microenvironment are regularly fluctuating. Most of it is negatively impacting
on this organisational business. Instead of that, the social factors of this organisation are
somehow disrupting this business process. Supply chains and ever-changing trends of the
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society can any time negatively affect the organisation. Finally, it can be said that it is not
always possible for this organisation to develop environmentally friendly and sustainable
products; however, due to the environmental changes sometimes the food items also generate
unexpected conflicts in the retailing stores (Islam and Mamun, 2017).
LO4 The internal strengths and weaknesses of specific businesses and
explain their interrelationship with external macro factors
P5 The internal and external analysis for Marks and Spencer in order to identify the
strengths and weakness and their influence the decision-making process
The SWOT analysis of the organisation Marks and Spencer help to understand the strengths
and weaknesses of this organisation.
Strengths
The organisation is one of the oldest and most reputed organisations in United Kingdom.
Instead of that, the organisation always offer latest trend of the industry. The infrastructure of
the E-Commerce system is also stronger than other retailing organisation. In addition to that,
the organisation is highly associated with maintaining their corporate social responsibility.
Finally satisfying the customers is another positive strength of this organisation (Moro
Visconti, 2016).
Weaknesses
The financial performance of this organisation is more than others retail stores. Instead of
that, Marks and Spencer did not concentrate on the local market of United Kingdom. The
expansion in China is one of the biggest failures in this organisational history
(Marksandspencer.com. 2018). Finally it can be said that the organisation is associated with
frequent product recalling. This frequent process is reducing the confidence of the customers.
Opportunities
The organisation wants to enhance their online presence for better performance in the Retail
Industry which is going to increase the opportunity. In addition to that, investing or
expanding in growing developing country like India will be beneficial for their future. The
organisation is mainly known for their clothing line which needs to reshape for better
performance. Finally, the operating model of this organisation is complex in nature which
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needs to simplify by the leaders for enhancing the flexibility of the employees
(Marksandspencer.com. 2018).
Threats
The Brexit situation is a big thread for this organisation. Because if it will result as a heart
breaks it then the organisation is going to affect massively. Instead of that the competition in
the UK food sector is increasing which can affect this organisation in future. The trends of
the society are changing and depending on it the clothing space of this organisation need to
develop and improve (Drucker, 2017).
The strengths and weakness of this organisation are usually related to the organisational
decision-making process. For instance, it can be said, that the organisation has failed in their
China expansion which they want to restructure again but in analysing the future opportunity
in the Indian market the organisation is going to invest on the country India without
following the previous plan. However, depending on the changes in the strength and
weaknesses the organisation develops their strategy or changes it to get more benefit from
their new policy (Botha et al. 2014).
P6 The key strengths and weaknesses, and the interrelationships these have with the
external macro factors
The external factor of the organisation Marks and Spencer and the internal factor or strengths
and weaknesses of this organisation are interrelated to each other. It is understood, that the
external elements of the business environment are affecting the organisational performance
either positively or negatively. Depending on this impact or influence of external factors the
internal factor of this organisations are highly related. For instance, if the Brexit situation of
the country United Kingdom will emerge as hard Brexit, then it will and hence the
weaknesses of the organisation. However, it can be said that if the organisation able to
introduce more technological advancement for their customers in the retailing stores which
can simplify the way of shopping then this advantage of this retailing store will be counted as
the organisational strength (Hair Jr et al. 2015).
Therefore, it can be said, that the strength and weaknesses of the organisation develop
depending on the external factors affecting the business environment of the organisation
Marks and Spencer.
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Conclusion
In light of the above study, it can be concluded that like every other country in the world
United Kingdom has three type of organisations public, private and voluntary. These
organisations have different size, scope and functions which have developed they are a
distinct identity for organisational structure legal structure mission vision and various
stakeholders from each other. However, in these business organisations, there is a significant
impact on the external business environment. Instead of this, these organisations have their
strength and weakness which are interrelated with these external factors. Finally, it can be
concluded that if these organisations want to develop their current status in the market, they
have to properly examine their external factors for enhancing their strengths and reducing
their weaknesses.
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