Analysis of Organizational Structure and Interrelationship

The provided report summarizes the different purposes and legal structures of private, public limited, and voluntary organizations like River Island, HSBC, and Cancer Research UK. It highlights that scope, size, vision, and mission involve operations of these organizations, linking with their objectives.

Business and Business
Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO ...................................................................................................................................................1
P1 Different types of organization, its purpose and legal structure ......................................1
P2 Size and scope of different organization ..........................................................................2
M 1 Different types of organizations, its size and structure link to business objectives and
products and services offered by company ...........................................................................3
CONCLUSION ...............................................................................................................................5
REFERENCES ...............................................................................................................................6

INTRODUCTION
Business Environment is the collection of all individuals, companies and other factors. It
is total of all outside and inside factors that effect business (Menychtas and et.al., 2015). These
elements also affects on performance, profits, growth etc. This report will explain different types
of organization, its purposes and legal structure. It will state size and scope of various
organization. It will analysis size, scope and structure of different organizations link with the
objectives of business.
LO
P1 Different types of organization, its purpose and legal structure
Private Organization: H&M
H&M is the Swedish multinational fast fashion retail company which operates in number
clothings for men, women and children in the worldwide. Firm create affordable luxury,
distinctive and real life fashion for each occasion on daily basis.
Purpose: The purpose of H&M is to become designer brand of high street. Therefore,
firm focus on increasing outlets and offering the best vegetables, fruits and so on.
Legal Structure: The H&M is private company. Private limited companies are small and
family run businesses that are owned by shareholder (Legal Structure of Private Limited
company, 2018). Firm need to register at company house, design an organizational name,
acquired stamp from office and so on.
Public Organization: HSBC
HSBC is the British multinational banking and financial services holding company. It is
7th largest bank in the global. Firm is organized with four business groups such as commercial,
global, investment and retail banking.
Purpose: The purpose of HSBC is to be growth is allowing business to expand and
economies to prosper and ultimately assisting public to fulfil their expectation and gain their
aspirations.
Legal Structure: HSBC is public limited company. It is limited liability company whose
share freely sold and traded to public with minimum share capital of £50000 (Talesh, 2014).
Voluntary Organization: Cancer Research UK
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Cancer Research UK is the cancer study and awareness charity in the UK. It is the world
largest independent cancer research charity that conducts study into prevention and treatment of
the diseases.
Purpose: The aim is to decrease the number of deaths from cancer. Firm focus on
increasing awareness of disease and effecting public policy.
Legal Structure: Cancer Research is charitable or non-profit organization that purpose is
to social health. Firm is formed by merger of Cancer Research Campaign and Imperial Cancer
Research Fund. Organization work is almost wholly funded by public.
Difference between limited and non-limited liability company
Basis Limited Liability Non-limited liability
Meaning It is the primary structure of
business in which limited
persons are operated company.
It is structure in which
multiple persons operates
business.
Liability There is limited liability of
people in the business.
There are unlimited liability of
persons in the organization.
Example For example: River Island. For example: Land Rover.
P2 Size and scope of different organization
Private Organization: H&M
Size: Company has over 4500 stores in 62 nations and 1,32,000 employees are working
in it. Firm direct is to provide services to almost each and every single person. The company
consist of five single brands with apart concepts such as collection of style, ARKET, FaBric
Scandinavien AB, Cheap Monkey and Monki.
Scope: The scope of H&M is promoted fashion through street services in relation to
attract more and more consumer in front of their product and services (Rahman and et.al., 2016).
The H&M has important on-line presences with online shopping available in 33 nations.
Vision and Mission: To provide the hottest new looks for consumers as well as
increasing their experience.
Public Organization: HSBC
2

Size: Bank has around 3900 offices in 67 nations and approximately 38 million
consumers. The total number of 228687 employees work in the organization. Firm is giving
financial services to different customer as per their requirement for improving their present
living of standard.
Scope: The range of HSBC are having very wide compass and trying to become one of
most prime bank across the worldwide through giving best services in financial term to need
customers or society (Ertas, 2014).
Vision and Mission: To be one of the world's great specialist banking group that
impelled by commitment to core value.
Voluntary Organization: Cancer Research UK
The voluntary sector is the duty of social actions undertaken by organizations which are
non profits and non-governmental organization.
Size: There are over 40000 people regular volunteers and 3964 employees are working in
Cancer research UK. The is directed on cancer investigation and implement well-being policy.
Charity own by both employees and grant funded researchers.
Scope: Study actions are carried out in association, educational and medical institutions
across the UK (Nikolova, 2015). Firm direct on apply well-being policy for expanding their
business broad range in relation to provide the best and high standard services as well as
treatment to cancer patients.
Vision and Mission: To keep and cure as well as providing the best treatment to all
cancer patients.
Example of voluntary sector: British Red Cross, Cancer Research UK, British Heart
Foundation etc.
M 1 Different types of organizations, its size and structure link to business objectives and
products and services offered by company
3

Basis Public Organization (HSBC Private Organization
(H&M)
Voluntary
Organization (Cancer
Research UK)
Structure The company is used
divisional organizational
structure, because there are
four mainly four divisions
such as commercial banking,
global, retail banking and
wealth management.
Therefore, it is difficult
achieve the organization
objectives and goals.
H&M follow
functional
organizational
structure, because there
are many functions in
the firm such as
finance, design, human
resources, marketing,
information technology
and so on. Effective
functioning of every
activities in the
workplace which help
to achieve objectives
of organization that is
increasing sales and
consumers experience
to business.
Cancer Research
follow functional
structure, because there
are many functions
such as grant advisor,
IT, HR, Finance etc.
This function aid
achieve the goals of
firm.
Size and
Scope
HSBC has around 3900
offices in 67 nations and
areas across Africa, Asia,
North America and around 38
million consumers. This help
to achieve the objectives that
is increasing sales and
making profits of business
(Menychtas and et.al., 2015).
Company operates in
62 nations with over
4500 stores and online
shopping available in
33 nations. In this
context, H&M tries to
expand their business
in another nations for
achieving the
The company has
offers their services to
cancer patients for
achieve the social
goals.
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objectives that is
increasing the sales
and generate the
revenue of business.
Product and
Services
HSBC offers banking and
financial services to the
public. This can help to
achieve the objectives and
provide the support to
consumer for fulfil their
financial requirements.
H&M offers the
clothing for women,
men and children,
fashionable hand bags
for women and other
accessories across the
world. This help to
achieve the objectives
of firm that is sales
increasing and making
profits.
They are offering the
services to reduce the
number of death from
cancer.
M 2 Advantages and Disadvantages of interrelationship between organization functions and
impact on structure
There are many functions in the organization and these are interrelated with each other in
the business. This interrelationship is beneficial for organization and positively impact on
organization structure. But some time, this interrelation is not good for business and negatively
impact on structure of business.
Advantages of Interrelationship between functions:
The interrelationship between the functions are beneficial for increasing speed and clarity
in operations such as marketing, sales, human resources, finance and IT in the business
(Kyriazis, Stanoevska-Slabeva and Varvarigou, 2014). Effective communication between all
functions which positively impact on organizational structure. This aid to increase consumers
satisfaction towards products and services of firm.
Disadvantages of Interrelationship between functions:
5

The interrelationship between functions are highly effected on organization structure in
terms of lack of coordination, increasing chances of conflicts etc. This impact negatively on
organizational structure.
D 1 Critically analysis of complexities of different organizational structure and interrelationship
of different functions
The complexity of functional organizational structure is to increase conflicts, lack of
coordination and segregation of departments in the business. In critical analysis, department
segregation is highly influenced on objectives, because there is no scope of employees of helping
and meeting one department to another. Therefore, they are not exchanging the informations
which help to accomplish the objectives.
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CONCLUSION
This report has summarised that different purpose and legal structure of private, public
limited and voluntary like river Island, HSBC and Cancer Research UK. It can be concluded that
scope, size, vision and mission that involves operations of River Island HSBC and Cancer
Research UK. It can be discussed that size, scope and structure of public, private and voluntary
organization link with their objectives.
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REFERENCES
Books and Journals
Ertas, N., 2014. Public service motivation theory and voluntary organizations: Do government
employees volunteer more?. Nonprofit and Voluntary Sector Quarterly. 43(2). pp.254-
271.
Kyriazis, D., Stanoevska-Slabeva, K. and Varvarigou, T., 2014. 4caast marketplace: An
advanced business environment for trading cloud services. Future Generation Computer
Systems, 41, pp.104-120.
Menychtas, A. and et.al., 2015. Managing voluntary and non-profit organizations: Strategy and
structure. Routledge.
Nikolova, M., 2015. Government funding of private voluntary organizations: Is there a
crowding-out effect?. Nonprofit and Voluntary Sector Quarterly. 44(3). pp.487-509.
Rahman, S. A. and et.al., 2016. Enhancing the wellbeing of base of the pyramid entrepreneurs
through business success: the role of private organizations. Social Indicators
Research. 127(1). pp.195-216.
Talesh, S. A., 2014. Institutional and political sources of legislative change: Explaining how
private organizations influence the form and content of consumer protection
legislation. Law & Social Inquiry. 39(4). pp.973-1005.
Online
Legal Structure of Private Limited company. 2018. [ONLINE]. Available through. :
<https://www.s-cool.co.uk/a-level/business-studies/business-organisation/revise-it/legal-
structure>.
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