Size, Scope and Structure of Different Organizations

Business and business
Environment
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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
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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.
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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
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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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