Business and Business Environment: A Comprehensive Analysis of Thomas Cook

BUSINESS AND
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION............................................................................................................................. 4
LO1: EXPLAIN THE DIFFERENT TYPES OF ORGANISATIONS, INCLUDING THEIR SIZE AND SCOPE...5
P1&P2........................................................................................................................................ 5
M1 ANALYSE HOW THE STRUCTURE, SIZE AND SCOPE OF DIFFERENT ORGANISATIONS LINK
TO THE BUSINESS OBJECTIVES AND PRODUCT AND SERVICES OFFERED BY YOUR CHOSEN
ORGANISATION..........................................................................................................................9
LO2............................................................................................................................................... 11
P3 EXPLAIN THE RELATIONSHIP BETWEEN DIFFERENT ORGANIZATIONAL FUNCTIONS AND
HOW THEY LINK TO ORGANIZATIONAL OBJECTIVES AND STRUCTURE....................................11
M2 ANALYZE THE ADVANTAGES AND DISADVANTAGES OF THE INTERRELATIONSHIPS
BETWEEN ORGANIZATIONAL FUNCTIONS AND THE IMPACT THAT THEY CAN HAVE UPON
ORGANIZATIONAL STRUCTURE................................................................................................14
L03............................................................................................................................................... 16
P4 IDENTIFY THE POSITIVE AND NEGATIVE IMPACT THE MACRO ENVIRONMENT HAS UPON
THE BUSINESS OPERATIONS OF YOUR CHOSEN ORGANIZATION.............................................16
M3 APPLY THE PESTLE MODEL APPROPRIATELY TO SUPPORT A DETAILED ANALYSIS OF THE
MACRO ENVIRONMENT THAT AFFECTS THE OPERATIONS OF YOUR CHOSEN ORGANIZATION
................................................................................................................................................. 19
LO4............................................................................................................................................... 20
P5 USING SWOT CONDUCT AN INTERNAL AND EXTERNAL ANALYSIS OF YOUR CHOSEN
ORGANISATION IN ORDER TO IDENTIFY ITS STRENGTHS AND WEAKNESSES..........................20
P6 EXPLAIN HOW STRENGTHS AND WEAKNESSES INTERRELATE WITH EXTERNAL MACRO
FACTORS.................................................................................................................................. 22

M4 APPLY APPROPRIATELY SWOT ANALYSIS AND JUSTIFY HOW THEY INFLUENCE DECISION-
MAKING BY YOUR CHOSEN ORGANIZATION............................................................................24
CONCLUSION............................................................................................................................... 26

INTRODUCTION
This assignment will throw light on the different types of the organisations on the basis of size.
And there will be the comparison of the private company like Thomas cook with the public and
voluntary enterprises. Regional development agency is taken as the example of public
enterprises of UK and Tourism concern is taken as the example of the voluntary sector
organisation. This will be classified which will include the scope, legal structure, size and the
stakeholders. There will be also an explanation of the relationship between the various functions
and their relationship with the organisational structure and objectives. Moreover, there will be
the description of the advantages and limitations of the organisational functions of their
structure. This assignment will demonstrate the negative and positive impact of the macro
environment on the business operations using PESTLE analysis. Further, there will be the
determination of the strengths and weaknesses of the Thomas cook with the relation of external
macro factors.
Thomas cook group is the global travel company which is a British enterprise. It operates in five
main divisions like Central Europe, UK, Germany, Northern Europe and West Europe having
approx. 19.1 million annual customers and it is the second largest travel company in the UK. The
three main shareholders of the company are Standard Life Investments Ltd., Invesco and Guo
Guangchang.

LO1: EXPLAIN THE DIFFERENT TYPES OF ORGANISATIONS, INCLUDING THEIR SIZE
AND SCOPE
P1&P2
INTRODUCTION
This part of the assignment will focus on the comparison of the public, private and voluntary
sector with the example of each on the basis of the size, scope and type of the organisation.
There will be the explanation of the differences between a for-profit organisation, not for profit
organisation and non-government organisation (Hasan and Sultana, 2014).
Following are the differences between the For-profit, not-for-profit and non-governmental
organisations.
For-profit organisations. Not-for-profit organisations. Non-governmental organisations.
 It is a legal entity
which focuses on
earning a profit
 Its area of
operation may be
large or medium
with the sole
proprietorship or
partnership or a
company form
(Subramanian, et
al. 2016).
 This organisation
work for the profit
motive.
 It is being set up to
provide services and
goods to the people
and the member does
not receive the profit
share.
 Its area of operation is
limited.
 This organisation work
for the promotion of
science, art,
commerce or
research.
 It is formed by ordinary
people that operate
independently with no
interference from
government.
 Its area of operation is large.
 This organisation works for
the welfare of the economy
and society (Hasan and
Sultana, 2014).
.

There are different types of the organisations:
Sole trading organisation: It is that type of the organisation which is maintained and owned by
a single person and that is responsible for all profit and loss of the organisation.
Partnership organisation: This is owned and maintained by the two or more people or partners
and both the partners share all profit and loss. For example, FAB.
Limited organisation: The ownership is easily transferable in this kind of the organisation and it
is owned and maintained by the board of directors. Example of this organisation can be the
Associated Foods plc.
Following are the differences between different types of organisation
PARTICULARS PRIVATE COMPANY
(THOMAS COOK)
PUBLIC ENTERPRISE
(REGIONAL
DEVELOPMENT
AGENCY)
VOLUNTARY SECTOR
(TOURISM CONCERN)
DEFINITION This is the type of the
company whose
shares cannot be
offered to the public
for sale and which
works under less
strictness of the legal
requirements. They
may have
shareholders and
issue stocks (Alford
and Greve, 2017)
This enterprise is a
business which is
partly or wholly
owned and
maintained by the
state and is controlled
by the public
authority (Nash,
2017).
The voluntary sector
is also termed as the
non-profit sector and
it is the social activity
which is undertaken
by the organisations
that are non –
governmental and
non for profit (Nash,
2017).
OBJECTIVES This focus on the
profit-making and
The public sector is
set up with the aim of
The main aim of this
enterprise is to do