Organisational Structure and Functions for Business Success

The assignment delves into the significance of organisational structure and functions for businesses to attain their goals and objectives effectively. It covers various references from books, journals, and online sources, providing a comprehensive understanding of the topic. The importance of organisational structure in managing chaos and complexity is also discussed.

BUSINESS AND
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Covered in PPT.......................................................................................................................3
TASK 2............................................................................................................................................3
P3 Organisational structure and its functions are interrelated for achieving goals and
objectives................................................................................................................................3
TASK 3............................................................................................................................................4
P4 Positive and negative factors of macro environmental factors ........................................4
P5 Conduct internal and external analysis..............................................................................6
TASK 4............................................................................................................................................7
P6 How strengths and weaknesses interrelate with external macro factors...........................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The term business environment encompasses with climate or set of conditions in which a
business operates. It contains various factors which creates opportunities and threats for a
corporation, such factors are – socio-economic conditions, political and technological situations.
A business gives shape to its environment thus to face all challenges and grab growth
opportunities at the same time. For this purpose, it is fundamental for managers to have great
market trends thus to obtain high competitive edge and make imperative business decisions
(Chetwood and et. al., 2014). The present assignment is based upon Flybe, it is a largest airlines
in UK on the ground of fleet size. The present report will describe types, purpose, size and scope
of various business organisations. There will be a discussion on relationship between
organisational structure and its functions to obtain firm's goals and objectives. Negative and
positive impact of macro environmental factors will also define later.

TASK 1
Covered in PPT
TASK 2
P3 Organisational structure and its functions are interrelated for achieving goals and objectives
In this present era, large corporations are trying to manage their operations in more
systematic and adequate manner thus to obtain high competitive edge. For this purpose, they
have decided to follow an appropriate organisational structure which suits their nature and size.
An organisational structure is a framework which outlines specific activities that are required to
accomplish business goals and objectives (Crane and Matten, 2016). Following is defined main
types of organisational structure -
Functional organisational structure – It tend to set up that each portion or unit of an
organisation is grouped as per their roles and purpose. Functional organisational structure can
work effectively in a corporation where each department rely on knowledge and skills of its staff
members and know how to overcome with specific problems easily.
Matrix organisational structure – Its a hybrid of functional and divisional structure
which is typically followed by large corporations. In this, an employee need to follow orders of
dual management at the same time and departments are allowed to interact with each other thus
to make imperative business decisions.
From all above organisational structure, Flybe is following matrix organisational
structure allows different departments to communicate with each other which helps to find best
solution of problems and allows top management to take imperative business decisions.
Different organisational functions are defined as under - Finance – It is a duty to finance department to sharing knowledge or ideas with different
to ensure that whether or not organisations have enough availability of funds or capital
for accomplishing all working activities and tasks in more adequate manner. Finance
manager also formulate budget thus to assess how much amount will be spend on various
working activities. In this field, marketing department requires proper finance in order to
accomplish their research in an effective way. So, finance department provide them funds
in order to achieve sales targets and objectives of the company.

 Marketing – This unit works to promote products and services of Flybe among a large
group of customers. Marketing managers develop attractive advertisement and
promotional campaigns which allows customers to know more and more about the firm
(Gharajedaghi, 2011). In order to perform function of marketing in effective manner, it is
necessary for HR managers to recruit high skilled workforce. It will help in
accomplishing the work in an effective way for achieving firms objectives and goals
regarding attainment of large market share.
 Human resources – In Flybe, the department is responsible for ensuring workforce
requirement at workplace. It is the duty of HR managers to ensure that employees have
enough skills or capabilities in order to accomplish all functions or operations in effective
manner. In this, HR mainly hire the skilled and talented employees for Financial and
marketing departments so that they can achieve the targets and objectives about
improvement of overall quality of organisational processes in an effective manner.

TASK 3
P4 Positive and negative factors of macro environmental factors
Macro environment refers with those external factors that may be uncontrollable and put
a huge impact on decision making process, strategies and performance level of the company. It
can be analysed through PEST analysis which is briefly discussed as below -
PEST analysis of Flybe -
Basis Meaning Positive impact Negative impact
Political
factor
These elements
include changes
in laws,
regulations,
government
policies, taxes,
duties and tariff
rates. Political
UK government is providing
low rate of taxations and
subsidy to travelling companies
as they can easily expand their
business. Due to political
stability in nation, companies
can easily explore or diversify
As a travelling and leisure
business unit, Flybe operates
in dozen countries and expose
itself with diverse political
system risks. The instability
of political factor negatively
affect on business policies of
Flybe. UK government allows
Illustration 1: Functions of Flyve

factors have
crucial role on
affecting long
term profitability
of Flybe.
themselves (Gilboy, 2016).
This includes legislation
relating to price transparency,
passenger rights during flight
disruption, access to air travel
for passengers with reduced
mobility, unfair contract terms
and requirements to trade
fairly.
new air control regulations
and beef up client security
which needs huge
expenditure.
Economic
factors
It includes
inflation rates,
saving rates,
economic cycle
and foreign
exchange rates
identify the
actual demand
and necessary
investment to an
economy.
As UK is a developed nation,
here income level of people is
high, they are ready to spend
high amount on leisure
activities. The growth rate of
the nation is also high which
ensure long term survival and
sustainability of companies.
Economic crisis in 2008
effects on European Unions
like the globe has been
evident; it leads weakening
pound than Euro reduces
revenues of Flybe.
In past years, oil prices were
also high whereas cost cutting
by both customers and
business resulted drastic
reduction in number of
visitors and business
profitability.
Social
factors
It refers with
culture, values,
beliefs and
morale of society
in which a firm
operates. Shared
beliefs and
behaviour of
Flybe has an option to obtain
interest of wide range of
customers as it is highly
focused on market research and
willing to create travel plans.
The business association is also
involved in fulfilling its
corporate social responsibilities
Travelling needs of clients are
changing at fast pace; now
they want eco-friendly
services which are more
expensive in nature.
Economic meltdown generate
critical stages of
unemployment and price

population
greatly influence
business
operations.
towards society (Kian Chong,
Shafaghi and Leing Tan, 2011).
comparisons that may
increase competition.
Technologic
al factors
In this present
era, technology
is developing
rapidly; it affect
product offerings
of travelling
companies.
Online comparisons between
prices has made easier for
customers to opt best deals or
offer. Online booking facilities
and check ins which is
advantageous for travelling
companies like Flybe.
Due to increasing
competition, prices of
products are fluctuating. At
this time, Flybe is forced to
offer low prices service to
customers. Needs of
maintaining technological
awareness within company is
also require high expenditure.
Environmen
tal factors
Environmental
standards are
different as per
marketplace
which puts a
large impact on
profitability of a
company. In
context with
Flybe, due to
natural disasters
and weather
conditions,
business of this
company affect a
lot. Therefore, it
is necessary for
Following environmental laws
and norms, helps in carrying
business activities in smooth
manner. It includes laws related
to environmental, air and water
pollution. As Flybe deal in
Travel and Leisure industry so,
it should concern on these
regulations.
Laws under environmental
factors generally put a large
impact on profitability of
business. As due to this, Flybe
have to develop strategies as
per laws.

managers to
analyse these
standards
carefully while
making policies.
Legal
Factors
Due to intense
competition at
marketplace,
every
organisation seek
to gain
advantage from
other. Thus, in
this regard, it is
necessary for
Flybe also to
protect
intellectual
property rights
of business
before
implementing
the same.
As Government of UK has
made various laws to protect
confidential information of
business in safe manner. It
includes Copyright, Patents and
more, therefore, using this
Flybe can prevent its strategies
and policies from illegal
activities.
Legal factors also include
Discrimination Law,
Employment Law and more
which directly impact on
decision-making activities
conducted by HR managers of
a company in negative
manner.
P5 Conduct internal and external analysis
Internal and external analysis of Flybe can be done through SWOT analysis of the
company which is stated as under -
STRENGTH WEAKNESSES
Having experience of almost 25 years, Flybe
has a great market knowledge which helps it to
The shorten flight length is major weakness of

develop effective strategies and policies to
sustain at market place for long run.
Flybe is known for its quality and innovative
services at lower prices; as it is the main reason
behind having wide client base which supports
firm to generate high revenues.
Being a regional airlines of UK, there is no
intense competition which allows high
spontaneous brand recall (Kaufmann, Kraay
and Mastruzzi, 2011).
Flybe is having credible and socially
committed image in UK. Additionally, the
business organisation has an effective scheme
of earning via advertisements and promotions.
the company when it comes to average fares.
Business model of Flybe get blurred at the time
of competition as well as consolidation within
industry.
Low load factor of only 68% despite having a
small fleet capacity.
Despite an innovative nature, auxiliary revenue
of company is small, i.e. stand only at 5%.
Flybe is depended only on few aircraft
suppliers which may be a risky proposition
when suppliers will raise their prices.
OPPORTUNITIES THREATS
The airline business practice, follows region
based model has an opportunity to explore its
functional areas into other European nations.
Globalisation and technological advancement
helps to facilitate the process of bookings and
reduce production costs as well.
After Brexit, number of business class is
expected to be increased cause of
entrepreneurial activities.
Acquisition of Flybe with British Airways will
made a venture of having new routes.
Catastrophic loss and threat of terrorism
activities resulted lesser in air travel activities
as well as loss of infrastructure of the nation.
Another detrimental for Flybe is imitation of
products by adding some frill features into
them which are already offered by rivals.
Risk of political stability and increasing fuel
costs (Li and et. al., 2011).

TASK 4
P6 How strengths and weaknesses interrelate with external macro factors
Impact of macro environmental factors relies upon strength and weaknesses of a business
association. It is essential for managers to recognise both aspects in order to gain high
competitive edge. There is given interrelation between strength and weakness and macro
environmental factors of Flybe, such as - Political factors – Flybe has strong political relations and the firm adhere all government
laws, policies and legislation in ethical manner; it also willing to adopt changes in certain
laws which can be applicable. In UK, there is less political interference in business
industries; it shows that all business organisations can easily survive at there for long
(López-Gamero, Molina-Azorín and Claver-Cortés, 2011). The government of United
Kingdom make changes in its policies with in short period of time and for this there is a
requirement to company modify its policies. It is main weakness for an organisation. On
the other hand, strengths is that United Kingdom has been more popular destination for
foreign direct investment (FDI). Government announced to reduce tax from 19% to 17%. Economic factors – As the economic condition of UK is strong and the economy is
developing at high growth rate. It is can be a great opportunity for Flybe to expand its
functional areas over there. There is high disposable income of British people which is
the main reason behind increasing sales revenues and profit margins of companies. Social factors – Due to changing customers' taste it is quite difficult to satisfy their needs
and wants in best possible manner. As Flybe operates in regional areas thus it may have
less areas to gain profit; which can be a weak point for company because generating new
and innovative services all the time is too expensive.
 Technological factors – Changes in technology may change production policies and
demand – supply process of companies. Another threat with technical advancement is it
may hinder management and marketing in several ways as well as implementation of new
technologies also require high costs.
CONCLUSION
From the above mentioned report, it get analysed that public, private and voluntary
business organisations plays a crucial role in economic growth and development of a nation.

Most of the multinational companies follow matrix organisational structure thus to effectively
perform and obtain their goals and objectives as well. Under this report studied about
organisational structure and functions are interrelated for attaining goals and objectives. Strength
and weaknesses both are interrelated with external macro factors has been discussed in this
assignment.

REFERENCES
Books and Journal
Chetwood, M. K.,and et. al., 2014. Transforming a legacy IT infrastructure into an on-demand
operating environment. U.S. Patent 8,775,232.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Gharajedaghi, J., 2011. Systems thinking: Managing chaos and complexity: A platform for
designing business architecture. Elsevier.
Gilboy, G. J., 2016. The myth behind China's miracle. In SEEKING CHANGES: The Economic
Development in Contemporary China (pp. 1-16).
Kian Chong, W., Shafaghi, M. and Leing Tan, B., 2011. Development of a business-to-business
critical success factors (B2B CSFs) framework for Chinese SMEs. Marketing
Intelligence & Planning. 29(5). pp.517-533.
Kaufmann, D., Kraay, A. and Mastruzzi, M., 2011. The worldwide governance indicators:
methodology and analytical issues. Hague Journal on the Rule of Law. 3(2). pp.220-
246.
Li, Q., and et. al., 2011. Towards the business–information technology alignment in cloud
computing environment: anapproach based on collaboration points and agents.
International Journal of Computer Integrated Manufacturing, 24(11) pp.1038-1057.
López-Gamero, M. D., Molina-Azorín, J. F. and Claver-Cortés, E., 2011. Environmental
uncertainty and environmental management perception: A multiple case study. Journal
of Business Research. 64(4). pp.427-435.
Meiners, R. E., Ringleb, A. H. and Edwards, F. L., 2014. The legal environment of business.
Cengage Learning.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
Wild, J., Wild, K.L. and Han, J.C., 2014. International business. Pearson Education Limited.
Yoon, J., 2012. Detecting weak signals for long-term business opportunities using text mining of
Web news. Expert Systems with Applications. 39(16). pp.12543-12550.
Zeng, L., Li, L. and Duan, L., 2012. Business intelligence in enterprise computing environment.
Information Technology and Management. 13(4). pp.297-310.
Online
Business environment. 2018. [Online]. Available through:
<http://www.investorwords.com/19252/business_environment.html>.