Relationship between Organisational Functions and Structure

This article discusses the relationship between different organisational functions and how they are connected to the organisational structure and objectives. It also examines the positive and negative impact of the external environment on business operations.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Describe different types and purposes of organisation with their legal structure. ...............1
P2. Demonstrate scope and size of different types of organisation. ..........................................3
TASK 2............................................................................................................................................5
P3. Describe relationship between distinct organisational functions and how t hey are
connected to organisational structure and objectives. ................................................................5
TASK3.............................................................................................................................................6
P4. Examine positive and negative impact of external environment on business operations. ...6
TASK4.............................................................................................................................................7
P5. Examine external and internal analysis of specific information to analyse strengths and
weaknesses. ................................................................................................................................7
P6. Describe how weaknesses and strength are interrelated with macro factors........................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment refers to combination of internal and external factors which
affects functioning of enterprise by directly and indirectly way. By studied all factors in order to
gain competitive advantage in world against rivalries. By use of these forces this leads to attain
best results and maximisation of profit (Belas and et. al., 2018). When business whether small or
big they have to evaluate this factor continuously which helps operations to survive for long
term. In this report, it includes public (BBC), private (Aldi) and voluntary organisation (Save the
children) are considered. In addition, this report covers mission, vision, size, legal structure,
scope, stakeholders, objectives and so on. Furthermore, it also involves PESTEL & SWOT
analysis which helps in grab the opportunities and designing them which helps in prevailing
world wide. It also includes business functions, their benefits and drawbacks. It also involves
how business is inter connected with each other's structure of company which is explained.
TASK 1
P1. Describe different types and purposes of organisation with their legal structure.
The difference between public ( BBC), private ( Aldi) and voluntary organisation ( Save
the children) are considered which includes their vision, mission, size, scope, targeted customers,
stakeholders and so on are discussed below:
Basis Public Organisation (
BBC)
Private Organisation
( Aldi)
Voluntary
Organisation ( Save
the Children)
Meaning This type of
organisation are under
control of government.
In terms of this case
about 51% shares are
in hands of state and
central government.
In this type of
organisation, owner
has complete control
with aim of
maximisation of profit
for issuing shares in
market segment. In
this type, there is no
control of government
This type of enterprise,
people with keen
interest come together
as part and made
agreement. In this
type, people are not
issue nor they are
making any revenue.
There main is to
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bodies. provide social welfare.
Aim The main aim of this
sector is to provide job
opportunities to people
of nation.
The aim of this sector
is to maximisation of
profit by their services
and products in global
market.
The main goal of this
organisation is to serve
their best services to
society which leads to
up gradation of every
aspects globally.
Benefits to employees
who are working in
firm
Individual who are
working in this sector
enjoy pension, gratuity
etc.
Employees who are
engage in this sector
are having good salary
packages, competitive
environment and
career growth.
People who are living
in society and
community are
received respect,
honours and gratitude.
Minimum number of
individual need to
form organisation
About seven members
are considered in this
type of firm which are
supervise under
government bodies.
In this firm almost two
members are required
to develop a company.
For opening voluntary
firm or NGO at least
seven members are
required.
Issue of Prospectus These type of
organisation which are
control by state and
central government
were not allowed to
issue shares in market
segment (Grunzu,
Chiriac and Beregoi,
2020).
When business is work
under issue of shares
in open market they
have enough power for
inviting public in their
shares of subscription.
In Voluntary
organisation they are
not issuing prospectus.
They receive monetary
money from charity,
donations, clubs etc.
Methods which are
required to increase
monetary value
For growth and
development of
business funds are
Funds in this sector are
collect by issue of
In this type of
organisation money
can be accumulated by
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gathered by tax duty,
penalties etc.
shares and debentures. contribution of
multinational
corporations, charity,
donations and so on.
Private, public and voluntary organisation's at international business environment in
terms of growth are affected by legal and taxation issues, tax, cultural differences, exchange
risks, political risks and so on large scale. By continuous changes in external forces which effects
directly the development and growth of business in competitive environment (Hamilton and
Webster, 2018). For overcome these impact organisation have to make effective tactics which
helps in smooth functioning of business activities all over boundaries. By not considering
international business environment can leads to big loss in open market place. Rivalries can
through easily these operations from market if these business environment are not scanned
before formulation of business strategy.
P2. Demonstrate scope and size of different types of organisation.
Private Organisation
Aldi
Background of Aldi:
Aldi is common brand which is made by two German family owners as discount
supermarket chain which covers world over 10000 stores in 20 countries. This is retail sector
company which have headquartered in Essen Germany founded on 10 July 1946. This company
mainly known for its lowering in prices and no frill designing in stores. It also limits store sizes
by focusing on efficiency by lowering the cost of labour (Sorreda and Philippe, 2020). Jason
Hart is recently CEO of Aldi US.
Services and products offers to customers: Services provided by respective company is
offering products as of daily household items and direct selling on online services for managing
customer. With help of social media for fulfil customer experience and influence of decision
making for satisfy wants and desires of customers (Čepel and et. al., 2018).
Size: Aldi is global empire which have 80$ billion estimation of annual revenues and
having big plans for expanding their business in America. The aim of company is to become
third largest grocery store by 2022.
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Scope: Aldi have scope by offering platform at wide range to other incorporation this
leads to easily selling their services on online websites.
Vision: Aldi's vision is to enable Australian shoppers for live richer lives no more. All
individual who are surrounding should have opportunities to have good quality of products at
lower price. It provides customers a smarter way to shop.
Mission: Aldi's mission is to offer cost and value effective products to their customers by
simplified, implementing and streamlined supply chain structure by offering limited catalogue
having private labels on them.
Administration objectives: The main objective of Aldi is to offer customers by good
quality of products buy regularly and sure that those products are of having highest quality
products on low cost. (Calabrese and et. al., 2018).
Organisational Structure: In terms of Aldi it has functional organisational structure
which helps in consideration of company's managerial control and focus with limited expansion
in global market. It creates capabilities which enables strong control on managerial despite
growing in international business. Growth increases challenges and complexities.
Information related to stakeholders: Aldi has stakeholder such as employees,
investors, shareholders, suppliers and customers are served for company. These have interest in
growth and profitability of business. Corporate social responsibility approach helps in long term
strategies which helps to transform the new products in market segment.
Public organisation
BBC
Mission and Vision: BBC's vision is to take appropriate and effective pride by delivering
quality and advanced services which offers customers having value for money. In addition,
mission of BBC is to offer its product in effective manner to their customers having proper
information and news which helps include support of people as learning of individual at every
segment (Chukhray and Mrykhina, 2018).
Size and scope: In context of scope and size the company has huge staff which have
number 35000 employees. In addition, all staff members are recruit on contract basis which leads
to helps in governing good talent.
Organisational Structure: In BBC hierarchy starts by its trust which is most
authoritative and respected group in company, which plays vital role in examining performance
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of executive board. These individual are responsible for accomplishment of functions and
objectives of company. This involves the directors of finance, news and strategy.
Voluntary Organisation
Save the Children
Mission and Vision: The mission of organisation is to improve live of children by
provide them health care, better education and economic opportunities also by providing
emergency aid in natural disaster. In addition, vision of organisation children of world myust be
attain the rights of protection, development, participation and survival.
Size and scope: Scope of this organisation is serving their facilities to protect children
from effects of violence and war. It covers about 25000 dedicated staff over 117 countries by
delivering innovative development activities for ensuring to heard voice of children for better
future of them (Zhu and et. al., 2020).
Organisational Structure: Structure of Save the Children is includes national member
organisation which have their activities from their home territory and also works with donors for
development of programmes.
Corporate sector: It is a part of economy which is concerned with transaction of
businesses in which there is income receive by supply of services and products which influence
working of economy with use factor inputs and investment decision. It can be personal, financial
or private sector in which they are deals with main motive earning profit and satisfy customer
needs and wants.
TASK 2
P3. Describe relationship between distinct organisational functions and how t hey are connected
to organisational structure and objectives.
In each and every organisation there are many business functions depends on their types
of company. Every function of business are inter-connected with each other which is helpful in
smooth functioning of operation that can be carried out easily. For growth in business in high
competitive world so there must be transparent and strong relation with various department.
Some examples of functions are marketing, sales, human resource, customer support service,
finance and so on (Newman and at. al., 2020). In terms of Aldi there are various functions which
are discussed below:
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Sales and marketing department: In Aldi these two sections are inter-connected with
each other. These department create strong connection which leads sales department to get rough
idea about sales targets through marketing. This leads to achieve advantage in cut throat rivalries
for achieve profitability. This department have impact on structure of Aldi in positive manner.
Having healthy relations between employees and superior for achieve objectives in effective
manner. Advantage of this department is needs and desires of customers can achieved by setting
standard which can be accomplished in competitive world. While disadvantage is due to loss of
capital which leads to mismanagement between marketing and sales department. In addition,
there is conflict takes place which leads to decrease in turnover of employees.
Finance and Human resource department: It is important for every organisation that
they have faith in working premises. In Aldi, finance and human resource departments are
interrelated among each other to carried out activities of business in significant manner. Aldi
finance department give information about amount of funds which are required to carry out
human resource activities that can be carried out effectively (Safar, L. and et. al., 2018).
However, human resource give rough information to finance department so that sources of funds
which are available can be identified. When there is effective connections in departments helpful
in carry out all activities in effective manner. Advantage of this point is company is not facing
any problem of funds and human resource activities so by this Aldi have ability to develop tough
competition in marketplace. Disadvantage of this point is having imbalance between human
resource and finance department. In addition due to unhealthy and miscommunication in
departments leads to not achievement of goals.
TASK3
P4. Examine positive and negative impact of external environment on business operations.
PESTEL Analysis is define as a framework which examines political, economic, social
technological, legal and environmental factors which influence organisation externally. In terms
of Private ( Aldi) and Public ( BBC) organisation which helps in better scenario of market
segment that can be understand. Business use these forces which can be framed according to
tactics. PESTEL analysis of Aldi are discuss below: Political Factor: This element is related to stability in political factor in country and its
impact on company (Akhtar, M., 2018). In includes foreign trade, tax policy and so on.
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In UK, as there is ongoing instability in order to political factors due to pandemic
situation as Brexit. In addition, it causes issue for company in dealing their services by
EU regulation. So this factor has negative impact on firm. Economical Factor: This factor considers economic performance of world. In context of
UK and Aldi, country faces huge downfall in economy. Furthermore, rate of pound is
decreased substantially so there is high inflation due to increase in interest rates. So for
this when online business is considered there must be analysis of economical forces.
However, in terms of company this leads negative impact all over business (Aldi PESTEL
Analysis, 2020). Social Factor: Society rituals, traditions and so on are included in this factor. In terms of
UK, due to online trend it has been positive impact in customers (Hair Jr, J.F., Page, M.
and Brunsveld, N., 2019). This factor is positive for organisation and also contribute
effective which have impact on enterprise which leads to offering products and services
in appropriate manner. Technological Factor: This element involves effective advancements in technology in
industry and also influence the functions and operations in business. So for this respective
company should adopt the emerging needs of customers by using advance technologies.
When company uses old products of groceries which act as drawbacks for company does
not help in attainment of goals. Hence, by this factor it could be positive impact on Aldi. Environmental Factor: Climate, weather, PH level of water and so on are included in
this factor. In UK, communities and government are highly shift towards environmental
protection and by lowering carbon footprint emission. In terms of Aldi, when they wants
to survive for long time period they adopt unique strategies that does not harm
environment. Hence, this factor leads to positive impact on organisation.
 Legal Factor: This factors include copyright law, consumer law and so on. There are
many laws like consumer protection act, 1987 & Equity Act, 2010 which are important to
effectively and appropriately through company for ensure support of government. For
retaining capable and skilled staff in organisation managers and leaders have to follow
legal factor (Tajeddini, K., Martin, E. and Ali, A., 2020). So this leads to positive impact
on company.
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TASK4
P5. Examine external and internal analysis of specific information to analyse strengths and
weaknesses.
SWOT ANALYSIS OF Aldi
STRENGTH WEAKNESSES
 This aspect of analysis in terms of Aldi
deals with strength which contribute
growth and improvement of
organisation.
 As Aldi has strong brand image that
attract customers which leads to
increase in profitability of company.
 Aldi transformed a way in which
travelling can be done by innovative
ideas (SWOT analysis of Aldi, 2020).
 Company have very strong control on
production process as they manufacture
components which are needed to
produce a products.
 Biggest weakness of Aldi is low
profitability as comparing sales
volumes.
 Company also faces problem of market
expansion outside UK. It also faces
problem of limited supply chain and
also they are unable to produce
products that are in desires (Hasan,
M.M. and et. al., 2019).
 One of biggest weakness for Aldi is not
providing fair price to average
consumers that leads to drawback for
company.
OPPORTUNITIES THREATS
 Biggest opportunity for Aldi as
expanding their business in developing
markets.
 There could be increase in ability of its
supply chain for examine new demand
and sales (Tallman, S., Luo, Y. and
Buckley, P.J., 2018).
 Aldi have opportunities by expanding
their products and services in other
types of markets and business. So this
 Due to aggressive competition, big
companies are now observing demand
of consumers and they build their own
electric cars. So this become threat for
Aldi.
 One more problem that Aldi faced as
overcoming the regulation in some
states like Texas and Virginia that are
not allowed to sell directly their
products. In this terms respective
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leads to reduce in their vulnerability to
possible downturn in economic terms.
company have not dealership
operations at these states.
P6. Describe how weaknesses and strength are interrelated with macro factors. Political Factor: SWOT analysis is interconnected with macro forces. Company uses
their strength on political factor for raising business in market segment. Economic Factor: This factor is consider under external forces that is prevailing in
marketplace. There is vital inter-connection between external forces and SWOT analysis.
This creates weak segment for organisation so for this policies should be consider to
overcome it in working environment (Beynon-Davies, P., 2020). Social Factor: This force of external analysis build strong connection with SWOT
analysis so that emotions and feelings of society does not hamper. It react has
opportunities in open market segment. So for this proper research is conducted for
converting opportunities so that vigorous competition can be developed for other
rivalries.
 Technological Factors: In this factor, it creates interconnection with SWOT analysis
with macro forces which leads to emergence of needs of buyers that must be fulfilled.
And by this future threats can be examine and strategies are also respectively formulated.
Critically reflects on key findings and also examine impact of decision making process.
When PESTEL analysis is conducted by firm it is helpful to understand current trends at
market segments. The critical reflection of all key findings is done in effective and efficient
manner. By analysing political, economic, technological, legal, social and environmental factors
wants and needs of consumers are examined (Nilsson, A. and Robinson, D.T., 2018). When any
company not analyses PESTEL of their company they must be considers SWOT analysis for
consideration of strength and weaknesses and also grab opportunities and threats for enhancing
overall profitability and productivity of firm.
CONCLUSION
From above report it can be concluded as PESTEL analysis is done in company so that
strategies are framed according to it. So by study these competitive advantage that can be
achieved against competitive rivalry. In addition, SWOT analysis are performed effectively for
examining strengths and weaknesses of firm and also threats and opportunities which is
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prevailing in market segment can be examined. By efficiently and effectively completed of
business work which leads to survive of organisation in long time period. Furthermore, it also
considers size, scope, legal structure and so on are focused to make attainment of goals in
appropriate manner. Along with it also highlights weaknesses and strength of company and their
interconnections so that it helps in reduction of error and improvement can be taken. Moreover,
report also includes scope, mission, standards and stakeholder of public, private and voluntary
organisation which are individually analyse to gather more information about them on large
scale.
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Sorreda, T. and Philippe, X., 2020. “Business is business”: a journey into a French suburban
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Online
SWOT analysis of Aldi, 2020. [Online] Available through<https://www.marketing91.com/swot-
analysis-of-aldi/>./
Aldi PESTEL Analysis, 2020. [Online] Available through<https://businessteacher.org/pestel/aldi-
pestel.php/>./
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