Relationship between different organisational functions

This article discusses the relationship between different organisational functions such as marketing, finance, HR, and operations. It highlights how these functions are interconnected and contribute to the growth and profitability of a company.

Business and Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
LO1..................................................................................................................................................3
Explain Different types and purposes of organization.................................................................3
Size and scope of a range of different types of organizations.....................................................5
LO2..................................................................................................................................................8
Relationship between different organisational functions.............................................................8
LO3..................................................................................................................................................9
External analysis and its impacts.................................................................................................9
LO4................................................................................................................................................11
Internal analysis and its impacts................................................................................................11
Relation of strength and weakness with external macro factors................................................13
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
This report present the different types and purpose of organizations like NHS, Ryanair and Red
Cross. NHS stands for National Health Service it is the publicly funded healthcare system in the
UK and provide all kind of healthcare services and also available to all irrespective of gender or
age. Ryanair was largest budget airline who carried more international passengers than any other
airline. Red Cross is a volunteers and staff work company who provide relief and support to
people who need help and it also work in emergencies. This report will show the legal structure
of these companies and also explain the scope and size of the companies. It will also explain the
relationship between different operations like marketing, finance, HR, etc. It will also identify
negative and positive impact of macro environment (PESTLE Analysis) upon different business.
In the end it also determine the internal strengths and weaknesses (SWOT Analysis) for specific
businesses and explain how they interrelate with external macro factor (Lea, 2019). It will help
companies to to explore in wide range of opportunities and influence environment.
LO1
Explain Different types and purposes of organization
Public Private Voluntary
Definition
In this sector government
and non-profit organizations
work. They provide
government or social
services (Lampadarios,
2017). This sector operates
with money collected by
taxes.
In this sector organizations
and companies work to
make profits. It run by
private individuals or
groups which is not
controlled by government.
This sector include
NGO (non-
governmental
organizations).
This sector also
consist non-profit
companies that
require public
donations.
Purpose
Purpose of this sector is to
provide service to help
public such as police,
This sector is play
important role in country's
economic. They are an
This sector purpose
is to provide
benefits to people

military, retailers,
healthcare, public transport,
public infrastructure and
more for public betterment.
inbuilt part of country's
economic system which
held by private individuals
and groups (Bull, 2018).
They are running
companies to make profit
and growth of the
company. This sector is
important source of
development in economic
and GDP of the country.
and they not run to
make profits. They
also operate with
donations money or
individuals
investment. It can
be run as social
enterprise.
Example
Taking the example of NHS
(National Healthcare
Service) it is providing all
healthcare services for all
UK citizens according to
their need. It focus on the
patients treatment and
services and how they can
improve and develop their
services. It is delivering a
positive contribution
towards society and country.
Taking the example of
Ryanair it is providing
airline services around
worldwide. It is private
company which run to
make profits. It is largest
budgets airline who carry
international passengers. It
is low cost airline. It
contribute in country's
economic system.
Taking the example
of Red Cross
organisation which
provide and deliver
social services on
large scale. It work
from individuals
investment and also
from public
donations. It work
for society
betterment and
development not
for making profit.
Legal
Structure
In this sector organizations
has limitation and
legalization for their work.
For example NHS has
leading in healthcare society
In private sector company
have some legal laws and
due to these legal laws
company owner have share
limits on their liberality.
This sector has
least legalization.
Red Cross take
some legal
permission from

but it has some legal laws to
operate any operations. NHS
focus on providing best
services. It helps them to
provide a positive
contribution towards society
and also built good
relationship with patients.
Due to this legal structure
Ryanair cannot share their
shares for investment to
other business. Ryanair
can change their sector
from private to public by
selling its shares.
government to start
organization. It has
employees who are
social workers and
wants to help
society (Sheppard,
and Beck, 2020).
Red Cross is non-
legal company. It
doesn't share its
profit with anyone.
Red Cross doesn't
need permission
from anyone it has
all control in
owners hand.
Size and scope of a range of different types of organizations
Micro Organisations Small Organisations Medium and
Large
Organisations
Size In micro organizations
small business works where
employment level is low
with low investment its
turnover is also very less.
Micro companies generally
have 9-10 employees to run
the business with very low
Small organisation owned
by the independent owner
and include small number
of employees to enhance
their business for long
term so therefore they
increase their sales
volume. In these kind of
This kind of
organisations
strength of
employees is large
compare to micro
and small
organizations.
These organization

costs. Its turnover is also
less than EUR 2 million
(Larson, and Foropon,
2018).
organizations have less
employees but in compare
to micro organization it
have more. Small
company have less than
50 employees. These
companies run by
individuals, partners and
groups of individuals. In
these organisation
employees work to
achieve their target and
increase profit margin. Its
turnover is less than EUR
10 million.
generally have 250-
300 or more than
300 employees.
These organizations
have a large
management team.
It also involves
multinational
companies that have
possibilities to
increase profit and
growth of
companies at a fast
rate. Its turnover is
greater than EUR 50
million.
Scope Developing countries
represent this type of
organization in a large
number where all the needs
fulfil by micro
organizations. These adds
value in economic on those
countries. They also
widening the scope for
better income opportunities
and growth of the business.
In these organization it
supplied goods and service
to local market and local
people. Profit share of these
These are the private
companies which are
work in partnerships and
its company size varying
with according to its
revenue's structure.
Ryanair is the example of
these kind of organization.
Objective of the company
is to increase the number
of employees so that they
can generate high
production services these
can give the result as
increasing in profitability
These include
multinational
companies that
work as a part of
government sector
that's why they earn
huge revenue (Badi,
S, 2020). In this
sector organization
income is used for
future development
purpose and internal
factors of the
company. Income
generation is high

kind of organizations is very
low such as Red Cross
organization. It profit is low
because it is run for
betterment of society.
and growth of company. on these
organizations. NHS
is suitable example
for this sector. NHS
net profit is approx
250million.
Examples Red Cross is the best
example for micro
organization. It is not only
large in their numbers but
also want to increase their
income and growth
opportunities for developing
their countries. Red Cross is
voluntary based organization
it requires low investment
but it wants to work with big
organizations to spread their
social services. Its biggest
advantage is freedom and
satisfaction of employee and
customers needs which help
them to grow. Disadvantage
of Red Cross is it have
financial risks and presence
of competitions which
causes big problem.
Ryanair is work under
these kind of organization.
They also want to increase
their profit and business.
It have the advantage of
strong management and
control by owners.
Disadvantage of Ryanair
is it has limited source of
finance (Asrar-ul-Haq,
Kuchinke, and Iqbal,
2017).
It includes example
such as NHS which
is provide
healthcare service in
UK. It is working as
a non-profit
company that's why
they help customers
and provide
emergency services.
Advantage of this
company is
flexibility and close
relationship with
customers. Its
disadvantage is they
it face issues to
maintain loyalty
with customers and
difficulties in term
of funding.

LO2
Relationship between different organisational functions
Organization consist different types of department such as Marek ting, Finance , Operations,
Human Resource Management(HRM) etc. They are related to each other and they play important
role in any organization. Marketing department is important in any organization it help to
develop a string relationship and interaction with consumers and other companies. Finance
department are important that controls the different expenses of the company and also manage
their investments. Human Resource Management is an effective and strategic department of the
company. It use all business resource effectively. Their main focus is on recruitment process they
hire best employees for the company. They also take care of employees need and expectations
from the company. Operations department observe entire production process. They take care the
customer need and expect ions toward the product or services. They responsible for smooth and
profitable production.
HRM & Marketing: Human Resource Management and Marketing department are both essential
for any organization. Marketing play important role in HRM. It help HRM in the growth of
organization. They together help company to achieve their objective and help to increase
profitability of the company. It promote the product or service and target together and mange to
achieve the target. They carry out strategic management of organization internal work process.
They both help in company's benefits and help them to increase productivity.
Finance & Marketing: They both are most integral parts of the business operation which help
them to develop an relationship with customers. Marketing help finance in financial
management. It controls various expenses of organization. They help company to fulfil their
objective. They also help in growth and development of the company. Finance department
decide the budget of every department (Shayo).
Finance & HRM: These both departments important work is to provide funds for necessary
activities. HRM helps to handle employees productivity. It also help organization to achieve
their goals. HRM provides employee incentives and bonus.
Operations & Marketing: Operations department help to manage all operation of organizations.
Marketing department help operation departments to analysis of market. Marketing is the
creation of customer demand and operation management is a supply and fulfilment of that
demand. That's why they are connected with each other and help company to achieve their goals.

Finance & Operation: Operation department helps company to analyse the finance, expenditure
and other resource. They has to monitor the company's performance and financial position. They
help company to maintain their financial position stable and also help in growth of income.
Operation & HRM: Strategic human resource reacted to operation management. It help company
to analysis their employees strength and interest. Operation Management help HRM to create
good strategies to fulfil company's goal and target.
LO3
External analysis and its impacts
PESTLE analysis:
Its is an analysis of external environment which could affect the company or functioning of the
company. PESTLE analysis helps the company to evaluate the impact of different environment
over the company and also helps the company to know that how to cope with those impact along
with achieving its objectives or goals. Pestle analysis helps the company to overview the entire
framework of the business environment and make the policies or planning accordingly.
Pestle analysis of Ryanair:
Political forces:
The different political conditions as well as political situations of the different countries
in terms of rules and regulations also affect the business of Ryanair. Similarly, due to the drastic
impact of Brexit over the UK and as a result of Brexit in terms of restrictions regarding the
European union also affects the Ryanair business at a great extent (Çitilci and Akbalık, 2020).
Economic factors:
Economic factors in terms of increase in the prices of oil, inflation conditions or increase
in interest rates or imposition of restrictions due to Brexit in UK as well as due to Covid-19 has
negatively affects the whole functioning and running of Ryanair.
Social forces:
Changing in the habit of customers regarding the spending of money by passengers over
other mode of transportation offering same services along with more need towards short distance
services shifting the passengers of Ryanair to other modes which is adversely affected the profits
of Ryanair.
Technological environment:

With the making of advancement in technology and buying of technologically advanced
flights along with using of digital platforms consisting of various services by Ryanair attracting
its customers and helps the Ryanair in raising its business and improvement in its sales so that
the objective of profit achievement can be done.
Environmental factors:
Adopting those technologies which emits or decrease the emission of carbon-dioxide in
the environment and following of environmental rules may help the Ryanair to environmentally
conscious and able to attract more passengers who are more careful and aware about the
importance of environment towards us and which ultimately leads to raise in the business of
Ryanair.
Legal environment:
Due to the continuous imposition of restriction regarding the travel and airline industry
due to the negative impact of Brexit regarding the European union in terms of restrictions as well
as due to Covid-19 pandemic the sales or profits of the Ryanair has been affected at severe stage.
Pestle analysis of NHS:
Political environment:
There are no such major impact of political environment over NHS expect the Brexit
which creates many problems to NHS in terms of import of machines or technology from
European union along with shortage in the staff of NHS because of the more dependence of NHS
over the skilled employees of European union.
Economic factors:
Due to changes in the economic conditions in terms of decrease in the flow of money or
economic crises, the NHS may face difficulty in terms of funds or in terms of payment of salary
to their professional staffs which even may leads to the decrease in the retention of the
professional employees in NHS.
Social forces:
Due to increase in the expectation among the customers because of awareness or
education along with an increase in the aged people proportion with many diseases are some
social factor which may affect the NHS and its services at certain positive as well as negative
level.

Technological environment:
Improvement in the technology along with using of advanced equipments and machines
are some positive factors of technological environment in the favour of NHS. Also, with an
advancement in technology with the level of improvement in the knowledge of clinical staffs as
well as patients are also the positive impact of technological environment over NHS (Yusop,
2018).
Environmental factors:
Since the changes in environment are quite obvious and acting according to the
environmental changes adequately and fairly affect the NHS in neutral form.
Legal environment:
Legal environment in the form of legal actions taken by patients towards the hospitals
regarding the bad services or not good treatments are easily be avoided by any healthcare unit or
NHS by providing the best and professionalized services to the patient with full attention and
care towards the patient.
LO4
Internal analysis and its impacts
Swot analysis:
Swot analysis is the analysis of the internal functioning of the business which helps the
companies to identify their capabilities or strengths along with its weak points which again helps
the management to take decisions regarding the expansion of business by using those strengths
and considering those weaknesses. This analysis also provides the information and awareness to
the companies by which companies can grab future opportunities and avoid the future threats.
Swot analysis of Ryanair:
Strength:

Large numbers of aircraft along with running over various routes and due to providing
the flights at low cost are taken as some strengths of Ryanair which again helps the Ryanair in
growth and development of its business.
Weakness:
Low refund policy of Ryanair with some controversial issues and strikes and lay-off by
the employees or labours of Ryanair are taken as some weakness which it has to overcome to
efficiently run its business (Sarsby, 2016).
Opportunities:
Due to continuous getting of government assistance as well as availability of talented and
skilled staff along with good financial structure in comparison to other airlines helps the Ryanair
to grab the future opportunities and expand or develop its business.
Threats:
Covid restrictions over the airline industry or restriction which was imposed due to the
outbreak of Brexit and different regulations of different countries regarding the airline industry
may be taken as a threat to Ryanair which could affect its business and its working.
SWOT analysis of NHS:
Strength:
Specialised services along with good loyalty and trust of customers in the market
regarding the paramedical or medical services and providing of the best treatment, are some
strength of NHS which make it unique and important apart from other competitors.
Weakness:
High acquisition of beds or sometimes non-availability of beds, high demand of staffs
regarding compensation with less recruitment which sometime also leads to shortage of staff

during the emergency situation are considered as some weakness of the NHS which it has to
overcome for even better functioning (Gürel and Tat, 2017).
Opportunities:
Removing boundaries and adapting the private or commercial sector regarding services
or increase in the number of recruitment along with some extent of allowance of private sector
may be considered as future opportunities which NHS can avail and achieve more success.
Threats:
Financial instability or shortage of finance or funds or instability in the economic
conditions along with competition in the market may be treated as some threats to NHS which
may affect the NHS and its working (Teoli and An, 2019).
Relation of strength and weakness with external macro factors
Political factors:
Since due to the strength of Ryanair in terms of wide network along with low cost flights
helps the Ryanair to deal and cope with political situations which includes restrictions which
means by more wide-spreading its network it can at some level decrease the impact of political
factors and achieve its objective in terms of raising the profit (Vlados, 2019).
Technological forces:
Due to the using of advanced and updated technological driven aircraft by the Ryanair it
becomes very easy for Ryanair to meet the technological forces by using its strengths which
again helps the management to take decision regarding the adoption of newer technology or
decrease in the level of existing technology which again at certain extent affects the profits and
objectives of the Ryanair.
Economic factor:
Due to economic changes and their impact in the form of increase in the prices of crude
oil or imposition of restriction in the economy regarding the trade along with the controversies

regarding the Ryanair in terms of low refunds or lay-off would at some level affect the
management of Ryanair in terms of decision-making regarding the expansion of business and
running of business which again adversely affects the Ryanair in goal achievement.
Social factors:
Due to continuous changes in social factors and taste and preferences of passengers and
due to the providing of cheap rate flights apart from considering the needs of customers by
Ryanair which are some strengths of Ryanair, helps the Ryanair and its management to further
more success of the business and achieving high profits.
Legal factors:
Legal environment basically includes the laws or regulations, which by proper study and
understanding by the management of Ryanair helps the Ryanair to act accordingly and grab the
opportunities regarding the achievement of its goal or expansion of its business activities.
Environmental forces:
Due to adopting the environmentally friendly machines or technologies in the aircraft by
Ryanair may helps the management of Ryanair to take decision regarding the use and grabbing
of benefits of environmental factors (Prichinet and Le Duc, 2020). This will helps the Ryanair in
the achievement of its objective regarding the improvement in sales by more attracting the
customers who are more aware and conscious about the environmental factors.
CONCLUSION
Thus, from the above report it is concluded that business environment plays major role in the
organization. Different types, scope and size of the organization helped in accessing the
company's overall structure which is formed. Interrelationship of various functions of the
organization that is how HR , Marketing, Finance are related to each other in each one of the
context. The positive and negative aspects on the macro environment of the business operations
helped in assessing the abilities and loopholes of the organization through PESTLE analysis. The
internal and external analysis of the organization which was described through the SWOT
analysis gave major points of what the company's strengths, weaknesses, opportunities and

threats are. The internal strengths and weaknesses which defines the external macro factors were
analysed which proved that the company has what all factors in which they gain strength and
determine the weakness. Thus, business environment of the company helps to verify different
prospects in which the organization works so that it lead its step more towards the efficiency and
effectiveness of the company.

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