Business functions and its environment

Business functions and its environment
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Table of content
Introduction.....................................................................................................................................3
LO 1 Explaining different types, size and scope of the organisations............................................3
P1 Explaining types and purpose of organization with legal structure......................................3
P2 Explianing size and scope of range of differentb types of organization...............................4
LO 2 Interrelationship of various functions with the organisational structure................................6
P3 Explaining relationship between different organizational functions.....................................6
LO 3 Analysing the impacts of macro environment on business....................................................9
P4 Positive and negative impact of the macro environmenty by using PESTLE model............9
LO 4 Determining the internal strengths and weaknesses of the business....................................12
P5 Conducting internal analysis of company by using SWOT analysis..................................12
P6 strength and weakness are linked with macro environment................................................14
CONCLUSION.............................................................................................................................14
REFERENCE LIST.......................................................................................................................16
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Introduction
The organisational structure and functions play a crucial role to run the operational
activities of the firms and it is the responsibility of the leader and the managers to develop
appropriate organisational structure and create effective strategic planning to run their business
in a systematic process (Leeand Ha-Brookshire, 2017). The aim of the study is to analyse the
business size, scope and structures in the private, public and voluntary sectors and analyse the
activities of the firms in doing their business strategically. Interlink between the business
functions and the structure of the business is also discussed in the organisational context which
provides a scope to analyse the activities of the business firms in doing their business
internationally. Moreover, the study also focuses on evaluating the macro environmental factors
as well as micro factors in the business which has critical impacts on the activities of the
businesses. Through the PESTLE analysis, it is possible to conduct the macro environmental
analysis on a particular firm and SWOT analysis is effective to analyse the internal factors of the
business which are important to run the business successfully.
LO 1 Explaining different types, size and scope of the organisations
P1 Explaining types and purpose of organization with legal structure.
There are different types of organization such as private, public and voluntary sector
orgnization. These organization have their purpose and legal structure for work properly in
effective manner. Those explanation are as follows:
Private company:
Private organization is the organization which is individually operates and run the
business. That have main purpose to run business are earn profit in higher level by providing
best quality of services. The private organization is mainlt managed by shareholders such as
owners, individual person or any other person who had the capability to run business in effective
manner (Ji-fan Ren and et. al., 2017). The main purpose of private organization to earn profits
and enhance investors interest by presentating the more stable finanical statements in order ro
fulfill the needs of public in correct manner. For example: Lidi is private supermarket company.
The legal structure of company is to follow flat organizational structure in that their are various
level of management and also the communication decision making power is raised.
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Public company:
Public organization is refers to such organiztaion whcih they equaliy managed company
with proper intergration. That are managed and run by government. The main purpose of public
company is not to eran profits as that of private company as well as maximise shareholders
values by providing the more quality services and also fulfilling tehir needs. For example:
British council is public coampny. The legal structure of company is to consist with borad of
directors and seniors liable to take better decisions. Considering the legal structure British
Council is governed by a Royal Charter and it is also public corporation and an executive Non-
departmental Public Body (NDPB), sponsored by the Foreign and Commonwealth Office.
Through the above mentioned values, the organisation is efficient to serve the people and
enhance creativity in education (British council, 2019).
Voluntry organisation:
This type of organisation is called as union organization which is the main functsion to
be carry the certai rtights of citizen of country. The main purpose of voluntaruy company is to
create values for the social communities as a whole and help to people for settle their life. For
example: Oxfam is volunatry sector organisation (Kozubíková, Homolka and Kristalas, 2017).
The legal structure is trustees are persoanlly liable for any such issue.
P2 Explianing size and scope of range of differentb types of organization.
There are different type and size of organisations, where the sizes are large corporations,
medium sized firm and small sized business and the types are as private and public and
voluntary sector. In private sector, companies are owned by private proprietor and in the public
sector, the organisations are owned by the government of the country. In the voluntary sector,
whereas profit or non-profit firms who are focusing on maximisation of the social welfare as a
whole. In the private sector, the company is Lidl and there are British Council and Oxfam in the
public and voluntary sectors respectively. The organisational size, scope and structure will be
evaluated further.
 Lidl
Lidl is a famous discounted super market chain, based on Germany and it has more than
10000 stores across the Europe for delivering high quality products and efficient services to the
customers. It mainly developed supply chain through discounted super market chains for
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