Types and Purposes of Organizations and their Impacts on Business

This report discusses different types and purposes of organizations, their impacts on business, and the relationship between organizational functions and objectives. It also includes an analysis of the macro environment using PESTLE for Sheraton Grand London Park Lane Hotel.

Business And The
Business Environment

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures.......................................................................................................................3
P2 Explain the size and scope of a range of different types of organisations..............................3
TASK 2............................................................................................................................................3
P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure........................................................................................3
TASK 3............................................................................................................................................3
P4 Identification of positive and negative impacts the macro environment has upon business. 3
M3 Detail analysis of macro environment of Sheraton Grand London Park Lane by using
PESTLE.......................................................................................................................................6
TASK 4............................................................................................................................................6
P 5 evaluation of strength and weakness of organization through internal and external analysis
......................................................................................................................................................6
P6 Explain how strengths and weaknesses interrelate with external macro factors....................7
M4 Uses of SWOT analysis for influence decision-making.......................................................8
D2 Evaluation of the impacts that both macro and micro factors have upon business objectives
and decision-making....................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Every business follows some sort of structure which helps it the flow of activities and
operations. The organizations adopt such structures or system which fits for their business.
Structure and system also defines the culture and working environment of an organization. There
are different types of organization and they serves the different purposes. According to the
purpose they adopts the cultures, system and structure. For reference purpose this report has
taken an example of a company, Sheraton Grand London Park Lane Hotel. This is a five star
hotel which is located at Piccadily, London. The hotel was opened in 1927. This hotel has its
chain also in several countries also.
This report will discuss about different types of organizations and their purpose. It also
includes the scope and purposes of these organizations. Along with it the report also includes the
link between different types of organizational functions. The advantages and disadvantages of
macro environment has been discussed in this report. Apart from it the internal and external
factors which affects the operations and activities of business has also been mentioned in the
report.
TASK 1
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures.
(Covered in PPT)
P2 Explain the size and scope of a range of different types of organisations.
(Covered in PPT)
TASK 2
P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure.
(Covered in PPT)
TASK 3
P4 Identification of positive and negative impacts the macro environment has upon business
Macro environment is part of environment which is related with external elements of the
atmosphere, these factors are uncontrollable and they directly or indirectly affect the decision
making process of the organization. Thus it is necessary for manager to take brief analysis of
each part of the environment and then formulate policies regarding their future. Sheraton Grand
London Park Lane also affected from their external environment factors. At present they suffers
from loss and reduction in profitability rate, negative image among public to overcome these

entire problem their manager’s use PESTLE analysis technique TO scan the macro environment
factor.
PESTLE: It is a framework of strategic management which has been used for environmental
scanning process. It will help in identifying situation of political, economical, legal, environment
and social factors of the organization. This technique used for formulation of strategies and risk
management purpose. Following are the PESTEL analysis of Sheraton Grand London Park Lane
(Belás, Bartos, Habánik and Novák, 2014).
Political: Theses factors includes action taken by government for formulation of policy,, or
changes on monetary and fiscal policies.
Positive impact
 The Sheraton Grand take advantage of their political factor as it was oldest hotel and it
link with the famous politicians of London thus the goodwill of this hotel is high, and political
parties guest will prefer to stay here and organize meeting and event in this hotel,
 It will help in increases brand value of the hotel in world.
Negative impact
 As it is poplar hotel and most of polities stay here it will be chance of terrorist attack on
this hotel.
 Due to BREXIT agrrement international relation are break and it will result in decline of
sales.
Economical: This factor of external environment play essential part as it includes the demand
and supply of customer, production rate, process, international and national market condition
which directly affect the organization factors.
Positive impact
 With the effect of BREXIT agreement the country reduce their rate of interest in
investment, thus Sheraton Grand can easily expand their business.
 Negative impact
 The value of UK pound was decline due to the recession and the agreement thus they
cannot grant more income as compare to previous ears
Social: Customers are the king of market, this social factors includes the culture, preference,
taste, perception of public with the organization, goodwill of society toward the organization,

their relationship, all these factor help in taking decision whatever organization survive for long
period of time within the organization of not
Positive impact
 Sheraton Grand hire people from different placed to provide best service to their tourist,
it thus the rate of tourist which stays in Sheraton Grand hotel has been increases in past year.
Negative impact
The hotel uses old strategies and provide poor service it will affect customers choice as they need
to enjoy technologies and advance facilities
Technological: It includes that element which is related with the technologies, skills and
knowledge. Theses factor directly effect on level of productive and its quality, as well as useful
for promotions of organization (Tho and Trang, 2015).
Positive impact
 Management department use digital plate from to promote their hotel as well as they
book rooms in advanced through online mode by their customers.
Negative impact
 Cyber crime has been increase in recent years and due to the prestigious hotel of London
it has been always a risk to save data on online mode.
Legal: Theses includes that factor through which organization can comply their ethical status.
Legal factor includes laws and rights recommended in the constitution which is require o follow
by organization.
Positive impact
 By using legal aspects hotel can protect themselves with cyber, crime, and illegal
activites
 Negative impact
 Sheraton Grand needs to follow each ethical law and pay high tax amount as well as
contribute in social responsibilities policies.
Environment: Every business organization needs natural factors to run their organization .
Environment factors includes forest, mineral, pants, tree, all these factors directly affect the
organization (Chuang and Huang, 2015).
Positive impact

 Sheraton Grand is situated in London which attracts the world wide touristic thus due to
establish a famous tourist spot the earning increase of the Sheraton Grand.
Negative impact
 With the effect of global pandemic COVID 19, all the cities are lockdown it will directly
affect the received cycle of the Sheraton Grand as it is not open for their customers ending in
upcoming months it will be decreases due to foundation of international travelling.
M3 Detail analysis of macro environment of Sheraton Grand London Park Lane by using
PESTLE
Macro environment includes all the external factors and elements of the atmospheres of the
organization which have at the capabilities to control and ruin the overall business .Manager of
Sheraton Grand uses PESTLE technique to take information regarding their external
environment factors, political, social environment factors positively as well as negatively affect
the organization, As it provides facilities to customers thus atmosphere in London will positive
impact and social relation with the politicians it helps increasing sales the dales and build as
strong relation within the all 5 stars hotel in London. Sheraton Grand get benefits of the external
factor on the other side, using of absence t4chnolfoy needs to change all the structure of world
wide it will increase cyber crime of the Sheraton Grand as well as due to the BRETIX
agreement and recent pandemic of COVID 19 have been widely impacted on the Sheraton Grand
.
TASK 4
P 5 evaluation of strength and weakness of organization through internal and external analysis
External and internal environment both factor directly and indirectly affect the decision taken by
the management department of the organization it is necessary manger to environment scanning
by suing various method. SWOT is in of the famous methods which uses by organization to
determine their position.
SWOT analysis: It is a technique of environment scanning which is used by organization for
identify their strength, opportunities and threats for their future project. It includes specifying
the objective of the business venture and identifies favourable and non favourable condition of
the organization special hotel in London. Manager of Sheraton Grand use SWOT analysis to
analysis their organization value in upcoming year. It will help in finding out that which
organization as the ability to fulfil all the prescribe in the vision mission and object statement, it
also depicts their strength as well as weakness of the workforce of the business entity.
SWOT analysis of Sheraton Grand Hotel

STRENGHT
 Sheraton Grand provides best
qualities of services they provides neat and
clean rooms, best food facilities, luxuries
lifestyle to their customers.
 It will also provide employment to
many local individual on the basis of their
skills.
 Due to brand the of prestigious
Sheraton Grand earn high profits. And cover
large market area.
WEAKNESS
 Sheraton Grand is a five star hotel
thus the hotel room rate is very high and not
normal tourist can able to take benefits of
their services.
 Due to included inhospitality sector
Sheraton Grand give high tax to
government.
 Heavy expenses incurred on
maintain of the each part of Sheraton
Grand.
OPPORTUINTIY
 Sheraton Grand have opportunity to
attract more international tourist by
promoting their hotel ant digital platform,
 With the effect of BREXIT
agreement the Sheraton Grand can cover up
local market area of London
 Sheraton Grand can expand their
business by starting more social academic
event in their hotel premises.
THREAT
 Due to COVID 19, the future rate of
earning goes down as their will be no
international tourists are come and stay in
Sheraton Grand.
 Sheraton Grand suff3ers from high
funding and lack of budgetary problems.
 Threat of cyber crime (Westrenius,
and Barnes, 2015).
P6 Explain how strengths and weaknesses interrelate with external macro factors.
The internal business factors receives all the opportunities and challenge accumulated by the
external environment and their by it does not receive a direct impact from global factors. Theses
impacts are taken by factors which affect the realisation of enterprise because realization has
been determine role for successful operational and future development of the Sheraton Grand.
External and internal environment factors link within each other and an organization molly work
effect earn it combined both the factor of the organization. In order to take loan or invest in other
machine and land or expansion of the business, manager need high amount of financial resource
and they can only get it when they grant loan from financial factors, like, bank, insurance,
financial resource. On the other side , with the change of organization will directly impacts on

the working condition of the organization, manager change policies time when winter season has
been stet, at present time due to the CORONA, Sheraton Grand step their services as government
taken decision of lockdown. It is essential for the business organization to maintain the level
between using of both factors as both are the sources through which organization may gain
strong position in market place as well as they can overcome the chance of uncertainty. It will
also help in innovation and create new products and services process. Internal and external factor
help in utilization of resources effectively specially in Sheraton Grand they manager use their
human resource to provides best services by using sources of external factors. By adopting of
internal and external factors managers can convert threat into opportunities. Political factors
affect the decision taken by product rate and services price by the Sheraton Grand. Manager only
take decision after analysis all the rival industries rate and also provide effective offer to attract
their customers. Interrelation of internal and external factors help implementing of new features
and introduce new products and services and launching event and maintain coordination between
all the stage of organization. Strength of the Sheraton Grand is they have great skills team
member through which they can able to completes their task within the prescribe time limit it
will give tem competitive advantage. Thus all the factor help in providing sustainability within
the market.
M4 Uses of SWOT analysis for influence decision-making.
SWOT analysis is play essential role in decision making process manager of Sheraton Grand will
conduct SWOT scanning method through which they can Easley identify all the factors and
resource which proceeds them opportunities as well as they can evaluate sectors which is risky
for their future activities. By sing SWOT technique manger finds it the rate, strategies of their
competitor industries and on the basis of that they take decision regarding their pricing policies
of their serves. It will also have benefits to increase position to the Sheraton Grand. They have
good customers services providing skills thus manger of Sheraton Grand take advantage and
provide done them training in order to
increase their inner capabilities through which they can attain competitive advantage. SWOT
analysis provide a strong basis to overcome the threat of eternal environment factor for the
organization (Gavurova, Packova, Misankova and Smrcka, 2017).
D2 Evaluation of the impacts that both macro and micro factors have upon business objectives
and decision-making.
Macro factors includes those factors which are not controllable for organisation and theses
factor also known as general environment factors it includes economical , social, legal, political
and international environment factor on the other side micro environment factors are those which
directly relate to the Sheraton Grand and theses can be control, it also known as operating
environment, Both factors were affect the operating activites of the Sheraton Grand. Due to high
competitions, and political factors the organization faces problem regarding lack of tourist, and
declining rate in sales , they also suffers from not getting good quality of material for provide
hospitality services to their climate but by using micro and macro factor as basis of advantage the

manager of Sheraton Grand can overcome th4rse problems and get opportunity to rebuild their
position within the market place.
CONCLUSION
This report discuss about how functional departments of a company is inter related with
each other. Apart from it the report gives SWOT and pestel analysis of Sheraton hotel which
helps it in gaining some insights of their internal as well as external activities. According to these
analyses, the business can make its further decisions or goals.

REFERENCES
Books and Journal
Alotaibi, Y., 2016. Business process modelling challenges and solutions: a literature
review. Journal of Intelligent Manufacturing, 27(4).pp.701-723.
Belás, J., Bartos, P., Habánik, J. and Novák, P., 2014. Significant attributes of the business
environment in small and meduim-sized enterprises. Economics & Sociology, 7(3).p.22.
Tho, N. D. and Trang, N. T. M., 2015. Can knowledge be transferred from business schools to
business organizations through in-service training students? SEM and fsQCA
findings.Journal of Business Research, 68(6). pp.1332-1340.
Chuang, S. P. and Huang, S. J., 2015. Effects of business greening and green IT capital on
business competitiveness.Journal of Business Ethics, 128(1). pp.221-231.
Westrenius, A. and Barnes, L., 2015. Managing complex business relationships: Small business
and stakeholder salience. The Journal of Developing Areas, 49(6). pp.481-488.
Gavurova, B., Packova, M., Misankova, M. and Smrcka, L., 2017. Predictive potential and risks
of selected bankruptcy prediction models in the Slovak business environment. Journal
of Business Economics and Management, 18(6). pp.1156-1173.