Size, Scope and Structure of Different Organizations

This article discusses the size, scope and structure of different organizations and how they are linked to their objectives, products and services. It covers private, public and voluntary organizations and provides examples of each. The analysis shows how the size, scope and structure of an organization impact its ability to achieve its objectives and deliver its products and services.

Business and business
Environment
1

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1 Various purpose & type of diverse organizations.............................................................4
P2 Determine the size and scope of different type of organisations......................................7
M1 Analysis of how size, scope and structure of different companies link to objectives &
products as well as service offered by business entities.......................................................10
D1 Critical analysis of complexities of various form of business structures & the
interrelationship of different functions of organisation........................................................10
TASK 2..........................................................................................................................................10
P3 Interrelationship between different organizational functions along with how they link to
objectives and structure........................................................................................................10
M2 Analysis of advantages & disadvantages of interrelationship among organisational
function and influence on organisational structure..............................................................14
TASK 3..........................................................................................................................................14
P4 Identify positive & negative impact the macro environment has on business operations.14
M3 Apply appropriately PESTLE model in order to support analysis of macro environment in
an organisation......................................................................................................................16
TASK 4..........................................................................................................................................16
P5 Internal analysis of the respective organisation..............................................................16
P6 Interrelation of strength & weakness with the external macro factors............................17
M4 Apply appropriately SWOT analysis & justify how the impact on decision making....18
D2 Critical evaluation the impact of both micro and macro factors on business objective and
decision making....................................................................................................................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20
2

INTRODUCTION
Business environment is defined as set of elements that is closely involved with the
activities of business. In addition to this, it involve superset of both external and internal factors
which impact on the operations of a business entity and include suppliers, technology, supply
and demand, exchange rate, customer requirements and many more. It is important for an
organization to identify the impact of internal and external factors on business activities and
performance as it help in developing effective strategies for dealing with the diverse
environment(Akhtar and Sushil, 2018). In the preset report, River Island is chosen as a private
company. It is a high street fashion brand that offer women’s, men’s and children clothing and
accessories as well. The company was founded in the year 1948 and its head office is located on
London, United Kingdom. The company has presence globally and have stylish and affordable
clothing that attract large number of people towards brand. For the voluntary organization,
British Red cross is taken into consideration. It is the UK body of the worldwide neutral &
impartial humanitarian network the international Red cross and Red Crescent movement. The
organization was founded in year 1870 and is a registered charity that has 3500 employees and
33,000 volunteers as well. Department for Transport is one of the public company that is formed
in the year 2002 and is located in UK. It is a government department which is responsible for
English network & a limited number of transport matters in Northern Island, Wales and
Scotland. The report will cover the difference between public, voluntary and private organization
along with its legal structure. In addition to this, the size & scope of this organization is also
discussed. Interrelation of various organizational function and how they link to organizational
objective and structure as well. Moreover, positive & negative influence of macro environment
on business environment is elaborated. Internal and external analysis is conducted in the report
for identifying strength & weaknesses. In the last, there is discussion about how strengths as well
as weaknesses interrelated with external macro factors.
3

TASK 1
P1 Various purpose & type of diverse organizations
Business environment consists with ample number of companies that are performing
operations in order to serve the consumers and to fulfil their needs and requirements as well.
There are different types of organisations that are divided among three major categories and
these are private, public and voluntary. All of these are described in a detailed manner
underneath:
Private Company: Private organisations are said to be those organisations that performs
operations to earn profit and also do not possess any sort of governmental control and also
consists with both large and small number of shareholders. River Island is said to be a good
example of private company, which was found in the year of 1948. They are majorly aiming at
earning huge profits for their shareholder through a number of different products and services
they are providing in market.
Public Company: A public company is ones which is owns and traded through public
based company which ownership is organised through shares of stocks. Department for
Transport is considered to be a good example of a public company belonging to United
Kingdom. It was found in 2002 and since then it is continuously serving to public (Bedianashvili,
2016). the major purpose of public company is to earn profits and give it back to the public.
Voluntary Organisation: It is an organisation on which a group of individuals who enters
into an agreements, as perform in voluntary form to accomplish a purpose. British Red Cross is
said to be a good example of voluntary organisation. This voluntary organisation was found in
the year of 1870. The major purpose of organisation is to work towards bringing social benefits
for society and dealing with various social issues in order to make their living better.
Different between Profit, Not-profit and Non-Profit Organizations:
Basis Profit Organisations Not-for-Profit
Organisations
Non-Profit
Organisations
Meaning In present time, profit
organisations
comprised with a
particular objective
This type of
organisation performs
operations with an aim
of improve social
Non-profit
organisation can also
be considered as an
effective organisation
4

and i.e. to make
money through
offering customers
with ample number of
products and services
in order to fulfil their
needs and
requirements.
standards through
offering vulnerable
with essential services.
where it performs
socialise work with an
aim of improving
living standards of
individuals, group of a
particular area.
Objectives Objective of this type
of organisation is earn
money.
Social welfare is said
to be the objective of
this type of company.
The objective for Non
profit organisation is
the having a social
work or which has not
involved the money
making or earring
factor. To contribute
something for the
society.
Difference between Micro, small and medium based organizations:
Basis Micro Organisations Small Organisations Medium based
Organisations
Purpose Micro business
organisations basically
derived as small
organisations where
their aim is to earn
limited money for
survival.
This type of
organisation's major
role is to enhance the
profit margins through
delivering required
products or services to
customers.
Purpose of medium-
sized organisations is
to improve profit
margins through
expanding business
from existing market.
Objectives Objective of micro
business is to fulfil the
Objective of small
business is to invest in
Objective of this type
of organisation is to
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basic requirements of
business terms
resources to affordable
consumers.
small business and to
earn money for
survival.
organise products and
sells them to
consumers at national
level with an aim of
expanding business at
international level.
Supply of goods and
services
Supply chain of micro
enterprises is to home-
grown buyers which
are fundamental
reflecting about the
items (Benmamoun,
2016).
Supply of products is
in joined realm based
will exchange of
money yet financial
merchandise amount
and quality.
The supply of good is
to bargains in inside
and outside nations to
making the
mindfulness among
between individuals of
around the globe.
Number of employees 1 to 9 employees 10 to 49 employees 50 to 249 employees
Turnover Up to €2 million Up to €10 million Less than €50 million
Types of organisations:
Private organisations: It has been found that, these organisations do majorly owned by
individuals in different manner and these are solely, partnership or private limited company as
well (Reeves, Levin. and Ueda, 2016). All of these are presented in a detailed manner
underneath:
Sole trader:
Legal structure: This is a type of business owner where an individual specifically stays
liable to all debts and unlimited liability is required to be fulfilled by sole trader only.
Examples: Services like Columbus Photographers can be considered as a crucial example
of Sole trader.
Partnership:
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Legal structure: In the Partnership Act, 2002 which was developed by parliament of
United Kingdom a company can have two or more than two partners where deed is built based
on their agreements.
Examples: River Island can also be taken into consideration as a good example of a
partnership firm.
Private limited company:
Legal features: The legal structure of private is in joined realm based will exchange of
true however financial merchandise amount and quality. The flexibly of good is to bargains in
inward and outside nations to making the mindfulness among between individuals of around the
globe.
Examples: DFS, Welcome Break, Harrods Group are some of the organisations of United
Kingdom and these are good examples of private limited company (Bruijl, 2018).
B) Public sector
Purpose: Primal purpose of this type of organisation is to serve public with different
range of services like transport and so on.
Legal structure: Legal structure of public organisation is related with all activities been
in the control of government. Central government has the power to take the session and they
have to follow proper regulations and rules without any delay.
Example: Department for Transport is said to be a good example of this sector where this
government department responsible for the English transport network and a limited number of
transport matters in Scotland, Wales and Northern Ireland that have not been devolved.
C) Voluntary organization:
Purpose: Primal purpose of voluntary organisations are to improve living standards of
individuals through offering them with various products and services.
Legal structure: The legal structure of these is overseeing by high level and there are for
the trustees who are liable for executing various capacities and giving the money related assets.
Example: British Red Cross is a good example of United Kingdom's body of the
worldwide neutral and impartial humanitarian network the International Red Cross and Red
Crescent Movement. The society was formed in 1870, and is a registered charity with more than
32,500 volunteers and 3,500 staff.
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P2 Determine the size and scope of different type of organisations.
Volunteering Sector Organisation(British Red Cross)
 Mission- The mission of British Red Cross is to focus on the power of humanity and
prepare individuals and groups to deal with crisis.
 Vision- The vision is to help people in their difficult time that is in the situation of crisis
around the globe (Chukhray and Mrykhina, 2018). Moreover organisation work together
in coordination with each other to support individuals, groups and communities to cope
up and recover from difficult situations.
 Size- British Red Cross is an organisation operating in UK with around 5000 employee.
With these many employees British red Cross is a large organisation.
Scope- The scope of the organisation is to provide help and support to people who are facing
problems due to crisis without any discrimination.
Public Sector Organisation(Department for Transport)
 Mission- The mission of the organisation is to achieve strong and high position in the
transport industry by excelling in its key roles. The key roles includes services,
management, regulations and planning. Moreover they want to establish healthy
relationship with its partners.
 Vision- The vision is to become the best transport system organisation across the globe
that is as the single integrated network of transport. The motive of the organisation is to
provide safe, reliable and friendly environment to its customers.
 Size- The size of organisation is quite big that is its a large scale business unit belonging
to government administration industry with employee size of around 5000-10000.
 Scope- The scope of the organisation is wide as it want to acquire good position in
transport system across the globe. Therefore it is focusing on providing safe land
transports, maritime transports, and many more. Their focus is to help in regional
development by delivery regional and rural specific services in rural and less developed
areas.
Private Sector Organisation( River Island)
 Mission- The company is dealing in fashionable clothing range at international level. The
mission of River Island is to provide the best and new designed cloths to its customers
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which give them hottest looks. As company is dealing in clothing industry so it is facing
high competition in marketplace and for that it's strategy is to provide high street
fashionable cloths to its customers.
 Vision- The vision of the company is to become the top high street fashionable brand in
the international market. It focus on bring out fresh ranges of products for the customers
who are always on the lookout for the next must have item. Its way of working involves
developing growing and inspiring its market.
 Size- The company is operating at international level with large employee base. The
company is having more than 350 stores in UK and provide good quality services to its
customers. They are having large market areas and its stores are at prime locations in
different cities.
 Scope- The scope of the company is to provide the latest fashionable trendy cloths to its
customers at affordable prices. The company is expanding its business through
franchising which increases its market scope in cost effective manner.
9

M1 Analysis of how size, scope and structure of different companies link to objectives &
products as well as service offered by business entities
It is analysed from the above information that size, scope as well as structure of
organisation is directly link to business objectives. If the scope is wide then there is roper
offering of goods or services and vice versa (Escaleras and Chiang, 2017). In addition to this, it
is determine that if the proper and appropriate structure is followed within an organisation then it
assist in providing products and services at marketplace in an effective manner and also help in
achieving desired goals of a company.
D1 Critical analysis of complexities of various form of business structures & the
interrelationship of different functions of organisation
It has been critically analyzed that there are various issues faced due to different form of
business structure. It is determine that adoption of divisional structure assist in assigning and
clearing roles and responsibilities to employees which in turn leads to proper implementation of
activities. In addition to this, it is significant for an organization to ensure that effective and
string relationship is maintained among different departments of company as it help in achieving
business objectives and meeting with the targets in an appropriate and timely manner.
TASK 2
P3 Interrelationship between different organizational functions along with how they link to
objectives and structure
There are different departments within a company which perform various activities for
achieving objectives within stipulated time period. In addition to this, the roles and
responsibilities is assigned to them in an effective manner so that it can be implemented
properly. The different organizational departments are finance, IT, operations, human resource,
marketing, research & development, sales and so on. In context to River Island, it is a high street
fashion brand which offer men’s, women’s and children clothing and accessories as well. The
organization have various departments which perform activities according to the guidelines
provided by higher authorities of River Island for attaining desired goals and meeting with
targets in a timely and effective manner. The different forms of department with their
interrelationship is given below in context to chosen organization:
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Illustration 1: Organisational Structure
(Source: Organisational Structure, 2019)
Marketing Department and Finance Department – Marketing department plays an
important role as it help in meeting with targets in an effective manner. On the other hand,
finance department is responsible for monitoring financial performance on the continuous basis.
In order to implement marketing activities, this departments requires fund that is sanctioned and
provided by finance department of company. This interrelationship assist River Island to
implement marketing activities effectively which leads to increase in sales and profitability of
the organisation (Gaganis, Pasiouras and Voulgari, 2019). It also assist company to enhance its
market performance which is one of the objective of respective organisation.
Marketing Department & operation department: It is determined that both
department plays significant role as it help business entity to provide quality service to customers
and raise its performance level. Marketing department conduct research in order to gain insight
about market trends & customer needs that help River Island to fulfil and retain customer for
longer time period. After this, marketing department communicate such information to
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operations department in order to produce goods and meet with the demand and supply of market
which has positive impact on profitability and revenue level of respective organisation. With the
help of this interrelationship, River Island is able to fulfil needs of customer and also capable to
offer on time service to customer which develop positive mind set and enhance brand image at
marketplace. It strengthen market position of company and assist in achieving organisational
objectives.
Human resource department and IT department – HR department of an organisation
perform different functions such as training and development, recruitment and selection,
employee benefits and so on. On the other side, IT department maintain and monitor information
technology services and system. With reference to River Island, IT department assist human
resource department for recording information about employees by developing updated and
creative software. On contrary, Human resource department focus on hiring best employee as per
the requirement of IT department which help in proper functioning and implementation of
activities. This interrelationship assist in enhancing productivity as well as profitability of River
Island.
From the above discussion, it is stated that all departments of respective organisation is
interrelated with each other & assist in gaining higher growth & success at marketplace. It is
significant for higher authorities of River Island to ensure that string relationship is maintained
between the departments as it help in execution of activities in an appropriate manner. In
addition to this, all this are link to organisational function and structure which help in attaining
objectives within stipulated time period.
Organisational structure: It involve task as well as activities that is performed by staff
members of company. In addition to this, it show the guidelines that is followed by staff
members to achieve objectives (Hamilton and Webster, 2018). It involve job rules,
responsibilities, authorities and many more that clarify employees about how to implement
activities in a timely and effective manner. The organisation structure is of four types which are
matrix, divisional, functional & flat structure as well. This are discussed below:
Divisional structure: This structure allow business entities to divide as per the market,
product and market as well. In addition to this, activities and operations flow independently. It
assist higher authorities to give instruction to subordinates that help in meeting with the market
requirements in an effective manner.
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Matrix structure: In this structure, employees are accountable to two or more than two
managers. In addition to this, following such structure involves high time and is develop
confusion in mind of subordinates.
Functional structure: In this structure, the task is assigned to staff members according
to their skills, competency and knowledge as well. This help company to develop interest area of
staff members towards working in an appropriate manner.
River Island follows divisional structure within the organisation for performing task as
well as activities. This assist organisation to smoothly run activities & manage staff members in
an appropriate way. Along with this, it help staff members to know what their roles and duties
which leads to attainment of objectives within stipulated time period.
M2 Analysis of advantages & disadvantages of interrelationship among organisational function
and influence on organisational structure
It is analysed that interrelationship among functions of an organisation help in
systematically and effectively implementation of activities that leads to achievement of
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objectives within given time period. On the other hand, it develop confusion and also consumes
high time which sometimes impact negatively on performance of business entity at marketplace.
TASK 3
P4 Identify positive & negative impact the macro environment has on business operations.
It is important for an organization to gain insight about macro environmental factors that
has direct impact on business operations and performance as well (Hillary, 2017). This assist an
organization to develop effective strategies to deal with the complex business environment and
maintain its performance in an effective manner. For this, the higher authorities of River Island
make use of PESTEL analysis model which is discussed below:
PESTEL Analysis of Tesco
It is defined as a technique that is used by business entities to examine influence of macro
environmental on performance and activities of organisation. In addition to this, it help in
gaining insight about threat and weaknesses associated with factors such as political, social,
economical, technological, legal and environmental as well. PESTLE analysis of River Island
along with its positive and negative impact is discuss below:
Political Factor – It invole factors like political stability, tax policies, import restrictions
and many more. River Island operates its business activities in London and it is analysed that
political stability of UK is quite well that help in implementation of activities. In addition to this,
its government support companies to expand its operations that leads to increase in performance
of respective organisation.
Positive effect : The government of UK allows and help company to expand business
operations that is consider as positive impact on River Island.
Negative effect – Change in tax rates, development of new political forces decline
performance level of River Island.
Economic Factor - It involve factors such as interest rate, exchange rate, income of
consumer, inflation and so on. River Island has presence globally and factors like diversification
help in attaining success at marketplace.
Positive effect – It is analysed that in UK, the buying power of customers is high as they
prefer quality and pay amount for it. This has positive influence on sales and profitability of
River Island.
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Negative effect – Raise in GDP rate and inflation rate develops negative influence on
profit and revenue of River Island.
Social Factor – This factor plays an important role and involve values, beliefs, safety,
buying habits, safety and many more. It is analysed that River Island conduct market research in
order to know about market trends and buying behaviour of people that help company to fulfil
customer’s requirement and developing positive image of brand in society.
Positive effect – The choice of customer are changing as they prefer to make use of
quality product and adopt online shopping option that impact on performance of River Island in a
positive manner.
Negative effect – It is difficult for company to make changes rapidly with the taste and
preference of customer as it occur high cost to company and decline its sales level.
Technology Factors – One of the important factor that help company to sustain market
for longer time period and to attain competitive advantage at marketplace (Holmqvist and Ruiz,
2017). Nowadays, consumers are shift to products that is innovative in market and for this it is
significant for River Island to make use of new technology in order to offer products as well as
service at marketplace.
Positive effect –Adoption of new technology by River Island help company to attract
large number of customers and fight with its rivals in an effective manner.
Negative effect – It is determine that technology is changing rapidly and make use of
such innovative technology occur high cost to company and decline its revenue level.
Environmental Factors – It consist of factors like climate change, scarcity of raw
material, availability of energy, pollution targets and so on. It is analysed that River Island adopt
measures in order to safeguard environment in a proper manner.
Positive effect- River Island is committed to decline the use of energy & utilization of
greenhouse gases in order to protect the environment as it develop positive brand image at
marketplace.
Negative effect – Change in climate, development of natural uncertainty that is not
controllable decline the productivity of River Island.
Legal Factor – There are various laws that is important to follow by River Island in
order to implement activities in an ethical and proper manner. These are employment act, health
and safety and so on.
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Positive effect – Rise in the disposal income of consumers have positive result on River
Island Company. In addition to this, the company follow all laws and legislation which enhance
its brand image at marketplace.
Negative effect – Rapidly increase in emigration & immigration rate has negative
influence on River Island.
M3 Apply appropriately PESTLE model in order to support analysis of macro environment in an
organisation
It is determined that PESTLE model help an organisation to know about the external factors
which impact on its operations (Khajeheian, Friedrichsen and Mödinger, 2018). It is analysed
that it is important for an organisation to conduct external analysis as it assist in dealing with
complex external environment so that overall performance will be maintained within the market.
TASK 4
P5 Internal analysis of the respective organisation
SWOT analysis
Strength Weaknesses
 One of the major strength of River
Island is its market presence that help
in attaining higher profits.
 Another strength is its effective and
skillful employees which provide
quality and on time service to customer
that develop positive brand image
towards brand.
 In the present time, the buying power of
customer is decline that directly impact
on its performance at marketplace.
 Another weakness is change in the taste
of people mainly in clothing sector as to
match with it arise cost to company and
decline its profit margin.
Opportunities Threats
 River Island has the opportunity to
expand its operations by entering into
new market in an effective manner.
 Adoption of innovative and new
technology will help company to attract
large number of customer and increase
 One of the major threats is its
competitors such as Marks and
Spencer, H&M that develop strategies
for gaining customer which has
negative impact on performance of
River Island.
16

its sales and profitability level (Liu,
2017).
 Another threat is legal obligations as
company is not able to fulfil such
legislations that impact negatively on
its brand image.
P6 Interrelation of strength & weakness with the external macro factors.
The interrelation among the strength & weakness with macro environmental factors are
as follow:
Basis Political Economical Social
Strength The managers of River
Island follow all
policies that is formed
by government. Due to
this, respective
organisation is able to
properly execute
activities as well as
operations.
The higher authorities
of River Island focus
on satisfying
requirements of
employees as it assist
in developing and
maintaining standards
of staff members.
The organisation give
better wages to
employees that fulfil
their social needs and
positively impact on
their performance and
efficiency level.
Weakness It is determined that
change in policies
impact negatively on
activities and
performance as it tales
time as well as money
of the organisation.
Alterations within the
economic conditions
impact on performance
of River Island and
decline its growth and
development.
In the present time,
people are more
focused towards their
health and consume
healthy products that
impact negatively on
River Island as it does
not deal in such sector.
Basis Technological Environmental Legal
Strength River Island make use
of innovative
The organisation uses
eco- friendly processes
The higher authorities
of River Island ensure
17

technology in order to
offer product and
services, it help in
attracting large
number of customer
and enhance customer
base level of company.
& technology in order
to protect environment
and decline level of
pollution that help in
developing brand
image at marketplace
(Müller and
Hoppstadius, 2017).
that they follow all the
laws and legislation
due to which all the
activities is
implemented in an
effective manner.
Weakness Technology is
changing rapidly and
to adopt it arise high
cost to company and
decline their level of
revenue earned.
The management team
of company is bound
with environmental
issues which impact
on its market position
negatively.
The company is bound
with legal formalities
that directly impact
negatively on activities
as well as performance
of River Island.
M4 Apply appropriately SWOT analysis & justify how the impact on decision making
It is analyzed that SWOT analysis assist a business entity to gain insight about its strength
as well as weaknesses. In addition to this, it also assist to know threats and opportunities a
company have (Nguimkeu, 2016). With the help of this, an organization is able to take better
decision that help in making improvements in performance and profitability level.
D2 Critical evaluation the impact of both micro and macro factors on business objective and
decision making
It is critically evaluated that macro and micro factors directly impact on activities and
operations of an organization. Positive impact of such factors assist in attaining objectives within
stipulated time period. On the other side, negative influence of such factors impose company to
develop effective strategies and change their decision in order to deal with complex business
environment (Pratistha, 2016).
CONCLUSION
From the above discussion, it has been concluded that it is important for an organization to
conduct internal and external analysis as it help in dealing with complex business environment
that is significant in order to sustain in market for loner time period. In addition to this, it is
18

analyzed that effective relationship among organizational department help in attaining objectives
within stipulated time period. Moreover, PESTLE and SWOT analysis framework is adopt by
business entity to know about the internal and external factors impact on their performance level.
19

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