(PDF) Selected Approaches to the Business Environment

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
1.Different types of organisations and their purposes public, private, voluntary and legal
structures.....................................................................................................................................1
2.The size and scope of these organisations................................................................................2
3.Relationship between different organisational function and their link to different
organisational objective and structures.......................................................................................3
4. The structure, size and scope of different organisations linked to their objective of business
and the products and services offered by them...........................................................................4
5.The complexities of different organisational structures and the interrelationships of different
organisational functions..............................................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
As being employed as Business Analyst of a large multinational organisation I am required to
explain and investigate the different types of organisations including public, private, and
voluntary organisations. The below report investigates their size and classification which
highlights the differences between them. Along with it, it includes their legal structures, scopes
and sizes and their key stakeholders. It explains the various functions within the business of car
manufacturer Jaguar and explores an organisational chart to explain the interrelationships
between these different functions. The report puts light on the critical analysis of the
organisations and their complexities of their different types of business structures and their
interrelationships of different organisational functions.
1.Different types of organisations and their purposes public, private, voluntary and legal
structures
Public Private Voluntary
The public sector organisations
such as British Council is
owned by managed by
government only. These
organisations do not hold any
other ownership. The
government itself manages and
take care of everything within
these organisations. There is
no other party involved/
The private sector organisation
such as Jaguar are completely
owned and managed by a
private ownership. There is no
control of government and or
any other party except its
ownership. Companies owned
by individuals are known as
private companies. In private
organisation the goods and
services provided are outside
of the government.
The voluntary organisations
are different from the other
two organisations as they are
non-profit organisations and
the government has no control
over them. Organisation such
as charities, civil societies,
community sectors, come
under voluntary sector
organisations. An example of
voluntary organisation is
Redcross.
The purpose of a public
organisation is to provide
services to public and help
them in their welfare.
The purpose of a private
organisation is to earn profits
while supplying its goods and
services to public.(Leih,
The purpose of a voluntary
organisation is to create a
social impact instead of
providing any services or
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Linden, and Teece, 2015.) earning profits.
British councils legal structure
makes it a separate legal entity
.Its assets and properties are
owned by the government. The
annual report of the company
is submitted to the central
government.
The legal structure of Jaguar
makes the company sole
proprietorship. In this legal
structure, the company owns
and operates its business. The
income from the business and
its profits are taxed as personal
income.
Redcross is a limited company
by guarantee. In a company
which is limited by guarantee
such as red cross, there are not
any shareholders involved and
none of the profit is re-
invested in the company as
well. All members are
guaranteed in paying a small
sum which is usually £1 and
not any more than £5.
2.The size and scope of these organisations
Public Sector: The Public Sector organisation is owned and managed by the government and
also it operates within a country. But few organisations which operates with the purpose of
providing education and human welfare also operates outside the country as well. British Council
is one of the example of such organisation, the organisation aims to provide wider knowledge of
United Kingdom and the British Language. In this context, the organisation keeps increasing its
bases all around the world to explore more opportunities to reach its aim. The British council
today has its reach over 100 countries and it is exploring more ways to reach all around the
world. The organisation seeks to provide employment to a variety of people across these nations
and helps other to learn more about the United Kingdom and the overall English language.
(Stacey, 2016)
Private Sector: The private sector organisation is aimed to earn profits and increase its business.
The size of a private sector company can be small, medium, large and very large. The companies
grow from small to large with the practices followed by them and their capabilities. Any private
sector organisation has an aim to earn more profits by selling more commodities and gather more
consumers by using various selling techniques. For example, company such as the car maker
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Jaguar, operates with the motive of increasing its sales by regular promotion and selling
techniques. The company wants to stand as a successful car maker within its consumers base and
its competitors as well. The company sells its car worldwide within its name and manages to
have a good reputation as well. These cars are brought by consumers worldwide and as per its
reputation these cars are special in their categories as well. The company has to manage its
consumer base by promoting them and along with it, they have to keep increasing their sales to
earn more profits.
Voluntary Sector – Voluntary sector organisations can be small, medium or large. These
organisations operate to serve a purpose of public welfare. Voluntary organisations are operated
within a small community or can be spread throughout the world. Some organisations serve a
purpose of providing its services in a small community and other organisations serve to increase
themselves to serve a community of larger amount of people. Being a Humanitarian organisation
Red-cross chooses to deliver its services in service of human welfare worldwide. It constantly
strives to increase its organisation base by gaining funds from different government and
organisations as well. (Cairncross, 2014)
3.Relationship between different organisational function and their link to different organisational
objective and structures
Different organisational functions:
To produce or sell a car it is important for Jaguar to undertake these six key functions.
11 Production and Design11 Human Resource Management11 Marketing and Sales11 Finance11 R&D11 Administration
It is important for these functions to operate together so that the overall organisation
consists of the same goals and objectives. The key activity is to achieve communication within
these departments. To start with this, the organisation need a set objectives and to make each
function aware of them. Later, these objectives are broken in specific objectives which are going
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to be carried by these functions. The regular review of how each function performs against the
objective provided and along with it how the company is going with its objectives will determine
the organisation's overall goal.
Their link to the organisational objectives and structures:
11 Functional Structure: In Functional structure, the variety of functions of separate
departments get reported to their department managers. These department managers
reports to the one who is higher up. The adoption of functional structure has an
advantage of having clear lines of the authority, and the key decision makers in these
departments sets the overall tasks and missions. It allows every employee to focus on his
particular task. This structure holds no drawbacks.11 Divisional Structure: In divisional organisational structures the functions of an
organisation are spread across different departments or branches. If the company have
different products, the set division for every product category would be having its own
functional group that can include research and development, accounting, sales and
marketing. The divisional approach holds the advantage that each division of an
organisation has a personnel to carry its important functions. Also, each of its divisions
can operate its business operations more or less autonomously. The disadvantage of this
approach is that the employees in each of the division will perform identical functions
and one can end up with a lot of inefficiency. (Ayios, 2018)11 Matrix Structure: The usage of matrix structure in a business can provide the
organisation with a higher flexibility in the functions of business. In this structure, every
employee works in a department which is function based. These departments can include
marketing and finance, sales etc. These are assigned to the projects under a variety of
manager personnels and are teamed with employees with different functions.
4. The structure, size and scope of different organisations linked to their objective of business
and the products and services offered by them
Public Sector organisation: In public sector organisations the size is based on the public which
the organisation is serving. In case, if the organisation is serving to a particular community in
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any given country then it would depend on the size of that community. The structure of the
organisation would deal with a headquartered building in its selected place and its different
properties in which the organisation choose to provide its services from which can range from
any number. In case of British council the organisation is providing its services in 100 different
countries and it has its bases in those countries. It is headquartered in London and with serving
the people of United Kingdom it is also providing its services in other countries as well. These
factors demonstrate the size of British council and its scope of increasing itself more.
Private Sector Organisation: In private sector organisation such as Jaguar the company size is
depended on the consumers it is serving. The organisation is serving consumers from worldwide
and its production base is situated in Coventry, England. This is where the company produces its
cars and later they are delivered worldwide. In organisation such as Jaguar the size can be small
or they might contain a small area because they produce goods and production only requires a
facility as the produced goods are being served in the market after. The structures of the
organisations might vary from the type or number of goods they are producing and the kind of
demand as well. In jaguar, their factory's structure covers a large area, as the manufacturing of
cars requires participation of different activities in its plant. The company's scope is based on its
overall market demand and consumer likelihood for the product. Or how the company manages
to promote it.(Ross, 2016)
Voluntary Sector Organisation: The size of voluntary sector organisations depends on the
causes for which they are serving for and the particular community they have targeted. This
overall suggests its growth. For organisations such as Red-cross their motive is to serve all
human beings and protect the human life on the planet. This ensures their goal on objective is
big. For such organisation, to have a better scope it becomes necessary to have better funding
from government and the ones who are investing in it, this can ensure the organisations' growth
and to meet its goals and objectives. The structure of any voluntary organisation is based on the
community which it is serving and its funding from which it can increase its infrastructure and
can meet its overall goals and objectives.
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5.The complexities of different organisational structures and the interrelationships of different
organisational functions
Different business structures has different complexities, and when taking them into
operations it becomes necessary to understand and evaluate the complexities to overcome
hurdles and make sure smooth business operations. Below listed are the complexities based of
these business operations.
Sole Proprietorship: The advantage of sole proprietorship is that the owners can establish it
instantly, very easily and it is less expensive as well. Along with it, it carries little formalities and
the sole proprietor does not need to pay the tax of unemployment. The disadvantage of it
includes its owners are being subject to liability for losses, debts etc. They cannot raise capital by
selling the interest in business.(Sodeyfi, 2016)
Partnership: The advantages of partnership includes it owners can start is easily and also with
very fewer expenses. It does not require any annual meetings and formalities which are ongoing.
Its disadvantages include that all the owners of partnership are subject to debts, liabilities and
losses which can be unlimited. Also, partners which are individual can bear the responsibility for
other partner's actions. Partnerships can lead to disputes as well. (Van der Wagen and White,
2018)
Interrelationships of different organisational functions
Production and Human Resource: The interrelationship is important between production and
human resource because for production department human resource will provide them will the
required skill personnels. Also, the department would make sure about the employees bonuses,
required leaves etc.(Jeston, 2014)
Marketing and R&D: The marketing department needs to ensure the smooth operation's
research and development in organisation. The Marketing department tracks the progress made
by the R&D and supplies them with the necessary trends and forecasting for their research on the
required products. Later, the R&D supplies the information to production.
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Finance and Sales: The finance department needs to be in cooperation with sales to ensure the
ongoing selling of the products and services. The finance then makes the report of everything
needed and then captures the data of accounts and sales in the organisations' system. This helps
the organisation to gather the statistics on its sales and finance as well.
CONCLUSION
The above report investigates sizes and classifications of different organisation such as
public, private and voluntary which highlights the differences between them. Along with it, it
includes their legal structures, scopes and sizes and their key stakeholders. It explains the various
functions within the business of car manufacturer Jaguar and explores an organisational chart to
explain the interrelationships between these different functions. The report puts light on the
critical analysis of the organisations and their complexities of their different types of business
structures and their interrelationships of different organisational functions.
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REFERENCES
Books and Journals
Sodeyfi, S. (2016). Review of literature on the nexus of financial leverage, product quality, &
business conditions. International Journal of Economic Perspectives, 10(2).146-150.
Jeston, J. (2014). Business process management. Routledge.
Van der Wagen, L. and White, L., 2018. Event management: For tourism, cultural, business and
sporting events. Cengage AU.
Ross, D.F., 2016. Introduction to e-supply chain management: engaging technology to build
market-winning business partnerships. CRC Press.
Ayios, A., 2018. Trust and Western-Russian business relationships. Routledge.
Cairncross, F., 2014. Green Inc.: guide to business and the environment. Routledge.
Leih, S., Linden, G. and Teece, D., 2015. Business model innovation and organizational design: a
dynamic capabilities' perspective.
Stacey, R.D., 2016. The chaos frontier: creative strategic control for business. Butterworth-
Heinemann.
Morecroft, J.D., 2015. Strategic modelling and business dynamics: A feedback systems approach.
John Wiley & Sons.
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