Business and the Business Environment: Overview of Different Types of Organizations and Interrelationship of Business Functions

This article provides an overview of different types of organizations and their legal structures, interrelationship of business functions, and impact of external factors on Admiral using PESTLE analysis. It discusses the types of organizations, their products and services, size and scope, vision and mission, and stakeholders. It also examines the interrelationship of different business functions in Admiral and analyses the advantages and disadvantages of their interrelationship. The article concludes with a PESTLE analysis of Admiral and its impact on the organization.

Business and Business
Environment

Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Overview of different types of organisations and growth of international business environment
.....................................................................................................................................................3
Explanation of selected companies including background details, products and services, size
and scope, vision and mission along with information about stakeholders.................................5
Examining different business functions for the company, using organisational chart to show
the ways in which functions are interrelated and analyses of advantages as well as
disadvantages of the ways they are related and impact of the company.....................................7
PART 2............................................................................................................................................9
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
The organization performance and growth are affected with the changes occurring in the
market. It is necessary to analyses the environmental factors and trends of market as business is
influenced by the environment in which it runs its functioning but there are the several factors
which are out of control for the business. The analysis of environment defines strategic tool
which comprises of micro and macro factors which influence the industry and performance. In
the study the discussion is done on the different types of organization with the size and scope,
legal structure. It also discusses the interrelationship of organization function with its structure.
Further it also discusses PESTEL analysis and SWOT examination of JD Sports.
PART 1
Overview of different types of organisations and growth of international business environment
Different types of organization with legal structures
In the terms of types, size, and scope the business organisation has the different set of legal
structure with the objectives.
The organisation in the economy runs either for maximising the profit or for the welfare of the
society to fulfil their demands. The different type of organisation are as follows:
Public sector organization- This kind of firms on the behalf of public is owned and controlled
by the government which has the purpose to meets the demand of society by serving them
social services. The objective is to supply the desired goods and services to the general
people. Through governmental act or regulations, the public organisation can be formed.

Example- JD Sport which is the public funded health care system where the funds are provided
from the government through taxation. The purpose is to remove the health inequalities from
the patients and to promote the best clinical and business practices.
The legal structure of JD Sport is governed by the act of sports services. The financing is
provided by the government along with the stakeholders. The taxes are collected from the
general public by the central government and community charges are collected from the
local government.
Private sector organization- This organisation is for the profit and wealth maximisation which
is controlled by the stakeholders. The objective of the organisation is to enlarge the per
capita income by generating more sales to gain the profit. In this sector the highly skilled
employees are recruited for the generation of revenue. It is the integral part of the economic
system owned by the private individuals and groups.
Example- Admiral is the private multinational company founded in 1919 which deals in the
groceries and general merchandise retailer. The legal structure of Admiral has diversified
their geographical and retail hold by focusing on the key markets, hypermarkets,
convenience shops.
Admiral have achieved huge financials within private sector. The operations of the business are
expanded in more than 11 countries. The comprises of three structures sole proprietor,
partnership and limited company.
Voluntary sector organization- To have the high standard of living in the community this
organisation supports and helps the people which is its main purpose. The organisation
creates the social impact as it is the not for profit organisation which involves the charities,
small informal community group. The purpose of such organisation is to enrich the society.

To the society various benefits is delivered without gaining any profit. The society wealth is
improved by creating the social welfare which leads to upsurge in the economy growth.
Example- The charitable organisation is the Sports England which is conducted by the own staff
by granting-funded researchers. The campaigns and research is conducted in the society to
prevent the cancer by providing the social services. The awareness is spread in the aim to
remove disease from all the levels.
Explanation of selected companies including background details, products and services, size and
scope, vision and mission along with information about stakeholders
Public sector organisation (JD Sport):
Overview of company: JD Sport is a subsequent legislation.
It is publicly funded system of UK that provides care to patients and range of allied sports
professionals.
Products and services: JD Sport provides wide range of medical products including provision of
sports items. Among with this, JD Sport provides home delivery services, offline services and
online services.
Size and Scope: The size and scope of JD Sport is wide. It is because more than 1093638
workforce including 112031 doctors, 34556 managers and 311380 qualified nursing staff
provides services. In context to scope, it is very wide as the company supports sports people
along with their families worldwide.
Mission and vision: Vision of JD Sport is to enable people to live healthier along with more
independent lives with the help of high quality seamless care. At same time, its mission is to
deliver better health to communities via individually emphasised and population wide initiatives.
Objectives of JD Sport is to maximise delivering better care and preventing accidents.
Stakeholders: Major stakeholders of JD Sport includes commissions who pay the entity to do
tasks, customers are those who acquire together with use products and services, contributors who
acquire content for commodities and collaborators are those with whom the business operates for
developing and delivering services.

Voluntary sector organisation (Sports England):
Overview of company: Sports England UK are the charity in UK.
Products and services: The services that are offered by Sports England UK includes clinical
development, funding and imaging.
Size and Scope: Around 3500 employee size work in Sports England UK on permanent and
foxed term contracts comprising of scientists, fundraisers and retail staff.
Scope of Sports England UK is limited to operations in sports field only.
Mission and vision: Vision statement of Sports England UK is to bring forward day on which all
cancers are cured. Mission of the company is to make discoveries which defeat accidents.
Objective of Sports England UK is to focus on efforts towards helping in prevention of accident
at early, optimising existing as well as developing new resolutions through personalising them
together with making more effective.
Stakeholders: Main stakeholders of Sports England UK are supporters, suppliers and
community. All these stakeholders hold certain kind of influences in organisational decision
making.
Private sector organisation (Admiral):
Overview of company: Admiral is international sports retailer of UK. It has expanded its
operations across the globe.
Products and services: Key products of Admiral that are offered in market are sports items.
Moreover, the company have diversified into areas such as financial services, home delivery and
internet services.
Size and Scope: Admiral is among largest sports retailers across the globe with more than 2318
stores as well as employing approximate to 326000 people. Scope of Admiral is related to extent
to which it sells offerings. It has scope for rapid expansion in international market.

Mission and vision: Admiral’s mission is to become champion for customers and help them to
enjoy easier living ways and better life quality. Vision of Admiral is to work as most highly
valued organisation among communities, shareholders and colleagues. Objectives of Admiral is
to maximise profits, grow retail services and grab larger market share.
Stakeholders: External stakeholders of Admiral are creditors, pressure groups, customers,
government, competitors and local communities. Internal stakeholders of the retailer are
employees and management.
Examining different business functions for the company, using organisational chart to show the
ways in which functions are interrelated and analyses of advantages as well as
disadvantages of the ways they are related and impact of the company
In the organisation functions, objectives and structure there is close interrelationship. The
functions of the organisation are based and operated in accordance to the objectives and structure
of the organisation. The overall nature and span of the organisation function is influenced by the
organisation structure. The efficient working of the organisation functions helps in enhancing the
operational efficiency, revenue and performance to benefit the stakeholder. Organisational
structure is termed to a diagram which visually conveys internal structure of venture by detailing
roles, responsibilities addition to relationship among people in the company. Within Admiral,
functional organisational structure is applied in which employees are grouped into functions on
the basis of particular skills and knowledge. In this, departments in which staff functions are
marketing, sales, finance, industrial relations and so on.
Interrelationship of functions at Admiral

 Purchase department and research & development- Within Admiral, function of
purchase is engaged in procurement of raw material and ancillary supplies from suppliers
to meet day-to-day operations by manufacturing. In the R&D department, investment is
made due to the change in technologies and expansion of markets customer requirement
and demand is determined. The activities of product development and diversification,
industrial standard and design is included. In the company, both departments are
interconnected to each another which helps in improving the efficiency in the production
function through the help of the R&D department. Advertising and human resource department- In Admiral, advertising function have
role of acceptance and processing of orders, creating advertisements, developing
advertising plans and using modern communication. At same time, human resource
function has roles to train and develop employees, keeping up to date with compliances
and many more. Human resource function provide training to personnel of advertising
function and set compensation structure. At same time, advertising function assist human
resource function to produce personal specification and other documents to attract pool of
candidates and build an image of company in market.
Analysing the advantages and disadvantages of interrelationships between organisational
functions and the impact that can have upon organisational structure.
Interrelationship of functions of organisation, such as Admiral, have advantage of better
communication among functions, reaching ultimate goals and exchanging information. However,
it is analysed that interrelationship among functions in Admiral have limitations of creating lack
of unity, disruption of relationships among organisational members and occurrence of conflicts.
Interrelations among functions of company impact on negatively on structure of Admiral. It is
due to dividing work in various functions which depends on each other. When a function of
company fails to accomplish its objectives then whole business suffers.

PART 2
Notes –
PESTLE stands for political, economic, social, technological, legal and environmental factors
(Dymitrowski, 2020). It refers to a tool which is used by the companies in order to knowing
about the several external macro environments which are going to effect the business operations.
It is necessary for organisations to analyse all these factors before making and developing any
strategy. All the factors imply positive or negative affect on the business organisation. Below
mentioned are the several macro external factors of Admiral along with their positive and
negative affect:
Political Factor: Admiral is performing business operations in several countries of Asia and
Europe. Hence, they are required to expose all the political factors which may affect their
operations. It includes legislation, tax rates, unemployment rate, economic condition of country
and many more.
Stability in the government policies is the positive factor for Admiral because it provides a
constant phase to the organisation to work which remove the fluctuation and make employees
skilled to perform the tasks in a same manner.
In European Union, government provide Free Trade Agreement which implies positive affect
over Admiral.

The management of Admiral have to adjust their operations as per the rules of government of
different country. It creates the various fluctuations at work place and do not implies the
effective result. It implies negative effect on the operations of Admiral.
Economic Factor: Majorly, the UK market get effect by the costing of Labour (Ibnugraha,
Nugroho and Santosa, 2021). The minimum wage rate has been change in 2018. The
diversification in the international market can be consider as the another economic factor which
influence the operations of organisation.
Increment in the minimum wage rate negatively affect Admiral as it leads to the increase in the
cost of organisation because the organisation has to higher cost to labour for the work done.
In order to doing some innovation in the organisation, they are required sufficient amount of
capital (Irbo and Mohammed, 2020). Increase in the borrowing cost implies in the decrease in
the profit of Admiral as they have to pay high interest and charges on the money they borrow
from outside. Hence, it also affects negatively to the organisation.
During pandemic people start spending the money only on essential products and services which
result in the decrease in purchasing power of people which is also a negative factor for Admiral.
Social Factors: Admiral company is effecting by several social factors which include cultural
impact, social market, employment opportunities. It is an essential factor to provide products and
services as per the needs and requirements of people as it will result in gaining higher profit to
them (Lüdeke‐Freund, 2020).
It has been analysed that the trends of doing shopping of consumers are continuously changing
which works as negative factor for the organisation as they are required to analyse the demand of
consumers constantly.
Strong presence of Admiral company on several social media platforms work as positive point
for them as it attracts the customers towards the organisation and the products offered by them.
Technological Factor: Now a day’s, introduction of advance technology brings several changes
in the business (Markovic and et.al., 2020). Advancement of technology result in providing a
great experience to the customers which also result in building a positive reputation in the
market.
Introduction of new technology provides good in store experience to their customers which is a
positive factor for Admiral as it leads to create brand image.

Environmental Factors: As the government is increasing pressure on companies of removing
the environmental issues by adopting various operations which will implies positive effect on the
society (Mosteanu, 2020). Admiral also launched Remove, Reduce, Reuse and Recycle plan so
that they can improve their production by removing all the environmental issues.
Admiral is delivering the products at the doorstep by vans which reach to the customers from
fuel saving routes and collect unwanted plastic bags from customers for the purpose of recycling
them which is a positive point for the organisation.
Admiral is creating a good brand image in the market as they are committed to use renewable
sources which also effecting them positively.
Legal factors: It has been found that the legal factors are also effecting the performance of
organisation. It is a challenge for Admiral to follow all the rules and regulations of government
as these rules are not same in all countries (Shams and et.al., 2021). For instance, Britain is no
more the part of Europe. This law is not applicable in United Kingdom but it is actively followed
in European Countries.
They had faced legal actions on accounting frauds which implies negative effect on the
customers.
Admiral is restricted to operate their operations according to the retailing Commission. It effects
the customers positively as the organisation is focusing on the quality of food.

Notes-
For the purpose of Internal analysis, it is quite important that the use of a model is made. SWOT
analysis is an important model which can be used here so that the appropriate level of
conclusions and recommendations can be drawn by the organizations in a proper manner
(Akpan, Soopramanien and Kwak, 2020). Therefore, the SWOT analysis is as follows-
SWOT analysis
Strengths
The company has a substantial base of customers in the market which therefore can help it a lot
in ensuring that it can manage out its needs and requirements.
The company provides a wide range of products and services to the customers in the market
which can therefore be quite helpful in enhancing the overall level of profitability in a proper
manner (Shayganmehr and et.al., 2021).
Weaknesses
The organization is weak in the application of certain marketing strategies which therefore can
affect it a lot.
The firm is affected a lot by the lack of innovation which creates a particular level of impact on it
and therefore affects its different types of activities.
Opportunities
The organization has to make sure that the identification of the opportunities related with
expansion can be done so that the management of needs and requirements can be done in a
proper manner here.
The organization needs to make sure that the identification of the opportunities of making the use
of innovation can be done which will therefore help a lot in enhancing the overall profitability
level in the future in a proper manner.
Threats
The organization faces a threat from the increase in the tax rates which can create an impact on
the profitability level and can affect the level of operations.
The organization also faces a threat from the entry of the new players in the market which can
create an impact on the overall level of profitability by affecting it (Ufua and et.al., 2020).

Notes -
The Strengths and Weaknesses of an organization can be identified through making the proper
use of a SWOT analysis. It is therefore quite important that the analysis of these Strengths and
Weaknesses can be carried out in quite an appropriate manner quite effectively and efficiently
(Amankwah-Amoah, Khan and Osabutey, 2021). The interrelation with the external macro
factors can be assessed in the following manner-
The strength of substantial base of customers can be interrelated with the external macro factors
because a change in these factors can create an impact on the different types of customers of the
organization. Thus, the impact on the level of profitability of the organization can be create due
to this factor.
The strength of wide range of products and services can be interrelated with the external macro
factors because a change in these factors can lead towards ensuring that the products and services
are changed which will help in enhancing the overall level of profitability level in quite a proper
manner in the organization.
The weakness of application of marketing strategies can be interrelated with the external macro
factors because a change in these factors can lead towards creation of a particular level of impact
on the profitability of the organization. Therefore, it can be stated that this can impact the profits
of the company (Viriyasitavat and et.al., 2020).

The weakness of lack of innovation can be interrelated with the external macro factors because
due to a change in these factors the impact can be created on the profits of the organization.
Thus, it can be stated that due to this particular reason the attainment of the goals and objectives
can be impacted.
Thus, in this way it can be stated that it has to be ensured that the impact created by these
factors has to be assessed. Thus, in this way interrelation can be established in quite a proper and
appropriate manner which therefore can help in the attainment of the future goals and objectives.
The importance of establishment of interrelation can be explained in the following manner-
The establishment of this type of interrelation can be made because in this way the overall
management of the needs and requirements can be done in a proper manner. Thus, in this way
Admiral can make sure that it can take the right decisions quite effectively and efficiently in this
manner (Baber and Ojala, 2020).
The establishment of this type of interrelation can be helpful in ensuring that the attainment of
the goals an objective in the future can be done. Therefore, for the managers of Admiral it is
highly crucial as well as essential so that it is able to help in the enhancement of the overall level
of efficiency and effectiveness (Iglesias and et.al., 2020).
Thus, in this way it can be stated that a company like Admiral can make sure that it can attain its
goals and objectives through managing this interrelation in a right way.

Notes-
Application of SWOT and TOWS analysis
It is highly necessary that the right use of SWOT and TOWS analysis can be made so that
the management of the appropriate needs and requirements can be done in quite a proper manner.
Therefore, in this way it can be stated that an organization like Admiral is required to make sure
that the attainment of the future goals and objectives can be made which will therefore help it a
lot in enhancing the overall level of profitability in a proper manner.
Critical evaluation of the impact of macro and micro factors
These are the factors that are quite important and it is highly necessary that they should
be considered within the organizations (Zhang, Lu and Zheng, 2020). Therefore, it becomes
quite essential that the appropriate level of goals and objectives can be attained and thus this will
lead towards ensuring that the enhancement in the efficiency and effectiveness level can be done.
This will thus help an organization like Admiral to be able to make sure that the right decisions
can be taken for the particular purpose of management of the different types of needs and
requirements.
Notes-

Akpan, I. J., Soopramanien, D. and Kwak, D. H., 2020. Cutting-edge technologies for small
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Amankwah-Amoah, J., Khan, Z. and Osabutey, E. L., 2021. COVID-19 and business renewal:
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Baber, W. W. and Ojala, A., 2020. Change of international business models during COVID-19.
In COVID-19 and International Business (pp. 103-112). Routledge.
Bint-Tariq, M. N. and Nobanee, H., 2020. Business Ethics and Finance: A Mini-Review.
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Dymitrowski, A., 2020. Investigations on business model innovation and company’s
development. Ekonomia i Prawo. Economics and Law. 19(2). pp.233-247.
Ibnugraha, P. D., Nugroho, L. E. and Santosa, P. I., 2021. Risk model development for
information security in organization environment based on business perspectives. International
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Iglesias, O. and et.al., 2020. Corporate brand identity co-creation in business-to-business
contexts. Industrial Marketing Management. 85. pp.32-43.
Irbo, M. M. and Mohammed, A. A., 2020. Social media, business capabilities and performance:
A review of literature. African Journal of Business Management. 14(9). pp.271-277.
Lüdeke‐Freund, F., 2020. Sustainable entrepreneurship, innovation, and business models:
Integrative framework and propositions for future research. Business Strategy and the
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Markovic, S. and et.al., 2020. Priorities when selecting business partners for service innovation:
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Mosteanu, N. R., 2020. Artificial Intelligence and Cyber Security–A Shield against Cyberattack
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Shams, R. and et.al., 2021. Strategic agility in international business: A conceptual framework
for “agile” multinationals. Journal of International Management. 27(1). p.100737.

CONCLUSION
From the above discussion, it is concluded that different types of business have their legal
structure which also contains the size and scope and business is regulated in the society with a
specific purpose. This report also discusses the interrelationship with the organization’s functions
and structure. It also debates the micro and macro influences of the organization with the
PESTEL and SWOT analysis to get knowledge of the adverse and optimistic impression. To
expand the organization’s operations in the competitive market it considers the entire
environment and customers’ requirements to have better opportunities for customer satisfaction.

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