Organizational Structure and Performance

This assignment delves into the critical relationship between an organization's structure and its overall performance. It examines different types of organizations, including public, private, and voluntary sectors, highlighting their unique structures and functions. The analysis also considers factors such as micro, small, medium-size, and large enterprises, emphasizing how their objectives, strategies, and market positions influence organizational design. Furthermore, the essay discusses the importance of conducting SWOT and PESTEL analyses to identify threats and opportunities that can shape an organization's success.

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1......................................................................................................................................1
Types, size and scope of business organisations and their interrelations in different enterprise1
SECTION 2......................................................................................................................................4
P4 Pestle analysis of UK retail industry.................................................................................4
P5 Internal and External analysis of Supermarket chain .......................................................6
P6 Interrelation of Strength and weakness with external Macro factors ...............................7
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Business environment can be described as an internal and external factors which impacts
on operational activities of an organisation. It is essential to observe, analyse and evaluate
changes or modifications into these elements to take an appropriate action so that threats can be
reduced to maintain productivity as well as profitability of an enterprise. This report is based on
ASDA which deals into several products such as grocery, general merchandise and financial
services. There are different kinds of companies like private, public and voluntary which are
considered as profit, non- profits and non- governmental (Welter and Smallbone, 2011). Various
firm has their own structures and functions along with unique targets or goals for which they
build effective plans to execute. This assignment will discuss about all factors to be analysed for
running a business properly. Several differences between small, medium and large enterprises
along with positive and negative impacts macro environment on business operations are given
below. PESTEL and SWOT analysis are carried out by companies to reduce threats and improve
benefits of opportunities.
SECTION 1
Types, size and scope of business organisations and their interrelations in different enterprise
There are different types of organisations which are running in in current scenario of
market and put efforts to achieve their desired goals or targets. It includes several types of
companies such as private, public and voluntary having their own aims or objectives. They have
different types of strategies or policies to carrying out their various activities or procedures to
gain desirable outcomes. To begin with is the profit organisation. This can be described as
various types of private companies which are owned and run by single individuals or partners to
get profits from sales of products or services. These firms are responsible for contributing
precious amount to annual income of country and provide number employment opportunities to
citizens (Elliot, 2011). Mark & Spencer is private company which deals in selling of clothing,
home products and luxury food products at global level. They have business of retailing having
an aim to become world's leading volume retailer with global brand and recognition. Supply
chain management of this company is based on policy of buying and dealing directly with
suppliers through establishing partnership spans the whole supply-chain involving producers and
raw material providers. Thereafter come the not for profit organisation. It state that all public
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organisations which owned and run by legal authorities to render goods or services for welfare of
citizens living in country. Various types of organisations which are organised and carried out by
legal authorities to render service for completing necessary needs, wants and demands of
common people of nation (Cotter and Fritzsche, 2014). The goods and purpose of this type of
enterprise is that it works for the maximisation of profit. Public sector includes National Institute
and Care Excellence (NICE) and its main objective or purpose is to boost up social health care of
citizens and prevent infections of several diseases like cardiovascular etc. Supply of goods or
services in NICE is done in advance as it is case of health care so that they can render
appropriate medication to people in emergency cases to save patients.
Non-governmental organisation has their own different working. This can be defined as
those enterprises which includes in voluntary sector and do charity functions to improve standard
of living of country. These are owned by individuals or voluntary team to conduct several events
or programmes to collect funds for implementing that into charity homes for providing essential
goods or services to needy people. Their purpose and variety of goods in which they deal is
entirely different. Welcome Trust is kind of organisation which can includes in voluntary sector
as it deals in charity. There are various kinds of small and medium charity homes are running
like old age homes etc. They carried out several functions to collect funds from willing people
for welfare of poor individuals and provide appropriate goods or services to needy persons. The
mentioned organisations are belonging to different sectors with their aims and supply chain
management to complete targets or objectives.
There are different types of enterprises such as micro, small, medium-size and large
which has their own objectives, strategies, rules, market share, growth, profits, sales and many
more (Zott, Amit and Massa, 2011). These various firms are differentiated as per their size and
scope of benefits in order to grab opportunities and reduce threats to gain better productivity as
well as profitability. To get a clear and detail understanding it is important that each one of them
are discussed in detail. Micro enterprises refer to kind of small firms which are usually observed
in neighbourhood such as ice cream parlour or cafe which has minimal employees as well as
capital such enterprises generally operates with less than 10 staff members and creates value to
economy with improving income and decreasing manufacturing cost. The market shares and
profit Share of this type of firms are less. Micro firms involve bakeries or ice cream parlours
which has very low market share as they do business for survival. These enterprises have limited
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profit share as per their small investment (Hair, 2015). Growth opportunities for micro levelled
firms is negligible and sustainability is very low.
Small enterprises on the other hand has an entirely different share in market. This kind of
companies usually employs small number of workers and does not have high volume of sales.
These enterprises are generally operating independently having limited size and scope as per
revenue depends on firm. Small firms also differentiated in respect of size, revenues and
regulatory authorization. The term market and profits share described as profitability and
goodwill of organisation. Small firms invested up to 25 lacs to operate their business and gain
profits as per that investment to survive in market. The Growth is comparatively low in this
variety of business. Small firms have very less opportunities to grab and attain growth of
business. Such firms include day care, orphanages, retirement homes are heavily regulated,
restaurants, law firms, inns, dry cleaners, engineering and architectural firms. On the other hand
Medium-Size enterprises have 250 or more number of staff members to emerge from slow and
steady growth of successful business. Medium sized enterprises invest more than 25 lacs but less
than 5 corers. The market share of this size of enterprise is also different. Medium firms have
more opportunities than small ones as they can improve their productivity as well as profitability
by beneficial chances of changing trends of market (Low, Chen and Wu, 2011). It can sustain
their position by maintaining their sales or profits of company and grab more opportunities to
attain growth of business. Lastly, come the big and large organisations. The term large
enterprises refer to those businesses which deals at national and global level having different
branches at various places and huge number of staff members to manage regular activities of to
achieve desired targets and objectives. In includes Mark & Spencer, Tesco, Tesla and many
more. Their market share is comparatively high and also investment in huge amount is made by
them. They invest above 2 corers to 5 corers and have very profitable market share with an
effective as well as efficient brand image in front of competitors to attain better profits. Their
growth and sustainability in market also varies in comparison to small and medium size
enterprises. Large firms have several opportunities to improve their productivity to increase
business for achieving growth.
Apart from the nature and type of products which different organisation deal in their
structure also varies to a great extent. There are different types of organisations with their own
differentiated structure and functions. Public, private and voluntary sector have dissimilar
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structure and functions as per their required strategies to conduct operational activities or
procedures (Van Vuuren, Roberts-Lombard and Van Tonder, 2012). Public enterprises have aim
to render goods or services at minimum price to people which is affordable by common citizen.
Private firms provide products for achieving their targets of profit by increasing sales or
customers. Voluntary organisations usually render services for free of cost because it includes
charity homes.
Various kinds of multinational companies are running in present scenario of changing
trends of market to gain their settled targets or objectives. International organisations generally
have large and complex structures which are quite time consuming and difficult to understand for
single individual. There are various kinds of departments such as human resource, finance,
Information technology, sales & distribution and many more. Marketing techniques are essential
to be conducted in appropriate manner so that it impacts positively on productivity of company
through grabbing more number of customers.
Different types of factors included in internal and external business environment which
effects the operational activities of company (Reeves, Love and Tillmanns, 2012). Stake holders,
employees, owners, suppliers, competitors and customers are such people who affects the
decision making for building an accurate strategies or policies to carrying out tasks or procedures
in effective manner. This will render support to improve productivity as well as profitability of
an enterprise. Every aspect is relevant to these people as they play an important role in running
particular business successfully.
SECTION 2
P4 Pestle analysis of UK retail industry
There are different business factors that has their direct and indirect impact on the
functions of ASDA. Some of them are present within the enterprise boundary and other
remaining are there in the external environment. It is important that auditing of both are done on
time so that accordingly corrective actions are taken on time which further helps in reducing the
overall risk that may take in future. Retail sector of UK is highly effected by the macro factors
which effects the activities of ASDA and they can be identified using Pestle analysis which is
done in the following report:
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Political – Every nation has their own government and accordingly the polices are also
different. There are places which offer favorable conditions for the retailers to operate and some
are also there who do not allow the retailing business to operate freely. Present political
conditions of UK have their great influence on this sector as the supply chain of business gets
effected by any change that take place in political sector. There is immense regulation on
retailing companies such as ASDA as they have to take care of the surroundings, laws of
employment and many more that restricts the capacity of firm to grow.
Economic factors – Retailers whole business activities are depended upon the flow of
supply and to grow it is required that continuity in same is maintained. Due to change in the
present economic conditions it becomes difficult for retails to maintain stability in the supply. As
UK has a powerful economy retailers are benefited with huge population which helps in
experiencing growth on regular basis. Foreign direct investments have also increased which
shows that the retail market can develop in a long run. Though it is positively affected by distinct
factors there are some elements too which has their negative impact on development of ASDA. It
is important to maintain the maximum price to a limit that restricts the growth and also in case of
less supply of cash in market the purchasing power of customers gets decreased.
Technological factors - There is a continuous change in the present applications which
are used by the different retailers in order to compete with one another. Whenever any change
take place in the present technology same needs to be adopted in same manner as only than
supply in market can be maintained at same competitive level. It has both positive and negative
impact as the capacity to produce develop with the improvement in techniques. On the other
hand, ASDA can adopt strategies similar to retailers like Marks and Spencer, Tesco etc. to
improve productivity as well as profitability of an organization. Funds which can be used to
grow the product variety has to be invested in other areas hence restricts the innovative
developments for retailers.
Social factors – It is a combination of those factors which is different in different
countries. Due to change in trends retailers find fluctuations in its total demand. There is
different element which are includes about the different factors which includes about the growth
of population, age distribution, conscientiousness towards the health attitude toward the different
types of carries which aids to accomplish demand and desire of customer made by the customer
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in proper manner. The chain of different supermarket which leads to accomplish different types
of demand and desire which is made by ASDA.
Environmental factor: This factor is concerned with the different environmental
legislation which is made by organisation by the government in order to ascertain the different
environmental factors which are ascertain by the company ASDA. The different organisation
needs to follow rules and regulation which passed by organisation in proper manner.
Legal environment factor: ASDA needs to accomplish all legal legislation which is
implemented by organization in proper manner. In order to proper running of business.
P5 Internal and External analysis of Supermarket chain
It is very essential for managers to determine then different types of strength and
weaknesses of ASDA. There are different types of strength and weaknesses of organisation in
proper manner. SWOT analysis which is carried out by ASDA is described below: Strength: The company ASDA is having different strength due to implementation of
different types of activities of organisation in proper manner. They shop of highly
recognised in market due to large number of customer attracted in the marketplace. As
there are different shops are having strong brand images. There are different variety of
products which are ascertain by the different types of organisation in order to increase
the sales of different products (Low, Chen and Wu, 2011).
 Weaknesses: There are various kinds of problems and issues which are encountered by
the company ASDA. One of them is that market which needs to consider it about the
different factors which are being out of trends or non-trendy. But it is normally believed
that they are keeping different types of clothes and different products which are
ascertain by different marketplace. They are also not updated in case of technologies
which are ascertain by ASDA in order to maintain by different policies in proper
manner. They are also not update in case of technologies and that is why they are
investing more amount of recruiting more number of employees. Opportunities: Several types of strong points of ASDA should be determined which
create opportunities to recruit various employee in order to perform different functions
of organisation in proper manner. There are different types of strategies which are
ascertain by the organisation in order to create various function and operations of
organisation in proper manner.
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 Threats: As companies also have the different rivals present in the marketplace. This
leads to accomplish different types of strategies which are ascertain by the ASDA. So
these organisation aids to accomplish different types of strategies which are ascertain by
ASDA to compete the different rivals present in the marketplace.
P6 Interrelation of Strength and weakness with external Macro factors
There are some strength and weakness of these companies which provide different types
of services to the different customer in order to generate large number of revenues of the
organization in proper manner. External factors are impact the growth and economic condition
on the different company. As they are generating large number of revenues of organization in
proper manner. These company are facing different types of hurdles in order to expand its
business in proper manner. ASDA is concerned with the different factors which are ascertain by
the organization in proper manner they implement an effective plan in order to perform various
activities of in proper manner. They need to adopt different types of strategies in order to
accomplish different types of functions in proper manner. Brand equity of the such super
marketplace is very effective. They are considered as one of leading brand in the different sector
which is companies are providing different types of organization in proper manner. By
implementing different types of strategies and making change in the policies company can
accomplish different types of functions of organization in proper manner. There are different
types of external factors which are aids to enhance the growth of the economy of organization in
proper manner. ASDA is required to implement different types of strategies in order to determine
the demand and desire of organization. Due to implementation of weak logistic is the main
weaknesses of these supermarket chain the management needs to determine these weakness and
they aids to ascertain different types of strategies which are used by the organization in proper
manner. They need to accomplish different types of demand and desire made by the. As these
company operating in different nations so they organization needs to accomplish various types of
strategies which are ascertain by the organization in proper manner. They implement effective
pricing strategy in order to accomplish in order to attract large number of customer in proper
manner. These needs acquire various strategies which aids to maximize the level of profit of
companies in proper manner. They need to accomplish demand and desire made by different
customer in proper manner. These strategies which aids to perform various strategies in order to
accomplish different functions and operations in stipulated manner. There are different types of
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strategies which are ascertain in proper manner. It aids to accomplish goals and objectives of or
in effective manner. They provide different types of strategies in order to provide different
functions organization in proper manner. These functions and operations are performed by
organization in proper manner (Reeves, Love and Tillmanns, 2012). It aids to accomplish
demand and desire made by the ASDA in proper manner.
CONCLUSION
The above essay had concluded that it is essential to observe, analyse and evaluate
changes or modifications into these elements to take an appropriate action so that threats can be
reduced to maintain productivity as well as profitability of an enterprise. There are different
types of organisations which are running in in current scenario of market and put efforts to
achieve their desired goals or targets. There are different types of enterprises such as micro,
small, medium-size and large which has their own objectives, strategies, rules, market share,
growth, profits, sales and many more. Public, private and voluntary sector have dissimilar
structure and functions as per their required strategies to conduct operational activities or
procedures. SWOT and PESTEL is conducted by companies to determine threats and
opportunities to sort out them by taking appropriate actions.
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REFERENCES
Books and Journals
Cotter, R. V. and Fritzsche, D. J., 2014. The business policy game. Developments in Business
Simulation and Experiential Learning. 21.
Elliot, S., 2011. Transdisciplinary perspectives on environmental sustainability: a resource base
and framework for IT-enabled business transformation. Mis quarterly.35(1). pp.197-
236.
Hair, J. F., 2015.Essentials of business research methods. ME Sharpe.
Low, C., Chen, Y. and Wu, M., 2011. Understanding the determinants of cloud computing
adoption. Industrial management & data system.111(7). pp.1006-1023.
Reeves, M., Love, C. and Tillmanns, P., 2012. Your strategy needs a strategy. Harvard Business
Review. 90(9). pp.76-83.
Van Vuuren, T., Roberts-Lombard, M. and Van Tonder, E., 2012. Customer satisfaction, trust
and commitment as predictors of customer loyalty within an optometric practice
environment. Southern African Business Review. 16(3). pp.81-96.
Welter, F. and Smallbone, D., 2011. Institutional perspectives on entrepreneurial behavior in
challenging environments. Journal of Small Business Management. 49(1). pp.107-125.
Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future
research. Journal of management.37(4). pp.1019-1042.
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