Impact of Business Environment on Organizational Growth

The provided document is an assignment that discusses the significance of the business environment in shaping the success of organizations. It delves into various aspects such as marketing department power, public procurement organization, social responsibility, and innovation strategies. The assignment emphasizes the importance of cooperation and strategic planning in achieving organizational goals, particularly in a turbulent business environment.

Business and The Business
Environment

INTRODUCTION
Business environment is the combination of external and internal factors that help in
fulfilling demand and expectations of consumers (Prajogo, 2016). There are different factors that
affect functioning of business for the future.
Present study will be based upon Cadbury company. It is multinational company that is
owned by Mondelez International. It is the confectionery firm which is the second largest
company in the world. Its headquarters is in Uxibridge, London, England, United Kingdom.
Thus, study will cover types and purpose of different type of organization such as public,
private and voluntary organization. All types ODF organization have different in size and scope
which will be shown in this study. Further, it will also describe importance of all functional
department and interrelationship with each others. By working with each other department all
functional department of Cadbury try to accomplish its organizational goals. Functional units of
this company like marketing, finance, sales and production have close relation with each other
and collaboration among all department is the main reason of this company.
LO1
P1 Different types and purpose of public, private and voluntary sec tor organisation
On the basis of control, Companies are classified into 3 categories: Public Company,
Private Company and Voluntary Company.
Private company: Cadbury is a British multinational company and it is the 2nd largest
confectionery brand after Mars in the world. It is mainly known for its dairy milk chocolate,
roses selection box etc.
Vision: Vision of this company is working together in order to create brand people love.
As per its vision it wants to show that it focuses on ethics and collaboration. It is peaceful, free
from discrimination, equitable society as well as based on the principle of social justice for all.
Mission: Its mission statement is so attractive as it gives every detail about its products
and services. It mission statement is” It is our promise, our reputation is built upon quality. Our
commitment to continuous improvement will make you ensure that our promise is delivered. As
per its mission statement it can be clearly said that, its mainly focuses on quality of products
rather than prices. By giving qualitative products it wants to attract wider range of customers
towards buying products and services.
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In the context of business structure it is stated that all decision are made at the top and
pass down. It is all based on a democratic management style and involves all members in its
decision making process.
Stakeholders: Stakeholders includes all those person or organization that have some
interest in a business. In the context of Cadbury, customer and employees are main stakeholder.
Employees take interest in their job and try to help the company in achieving their goals.
Customers of Cadbury are also known as stakeholders of the company as they take interest in
buying products and services. Government is also a stakeholder of Cadbury's because of the
money they can earn from this company. They take money from the company for taxes. Local
community also wants to know that how this company affect them so it is also called its
stakeholder.
There are various differences between these 3 companies which are as follows -
Type of
Company
Public Company Private Company Voluntary Company
Meaning Public Sector Company is the
company whose control and
operations are in the hands of
central or state government. It
is also known as Publicly
traded company or public
limited company. It issues
securities via an initial public
offering which are openly
traded as well as widely
distributed.
Private Sector
Company is the one
whose control and
operations are in the
hand of individual or
group of individuals or
another firm. It is also
known as private
limited company. It is
just opposite of public
company because its
shares are not offered
to the public for sale.
It is operated under
some legal
requirements that are
Voluntary Sector
Company is the one
whose control and
operations are in
groups of individuals
or trust company for
the purpose of doing
social work (Kolk,
2016). It is a group of
people who voluntarily
come into an
agreement in order to
accomplish a purpose
and to provide services
to people. It may be
incorporated or
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less strict than for a
public company.
unincorporated.
Legal Structure To run the public limited
company, Organization has to
put “PLC” behind their name.
The company must have to
register with companies
house. Public company must
have to prepare memorandum
of association and articles of
association during the
registration.
To run the private
limited company,
Organization has to
put “Ltd.” behind their
name. To operate the
business, Company
must has to appoint
one director and one
secretary. Company
must have a register
office too which can
be anywhere in the
United Kingdom.
For the set up of
Voluntary
organization, their
structure should be an
unincorporated
association, a trust and
a company limited by
guarantee.
Example The example of public
company is Highways
England.
The example of
private company is
Cadbury.
The example of
voluntary company is
Charity Bank Limited.
Business
objectives
Highways England's business
objectives are to maintain and
improve the roads of England
and ensure the connectivity
of England's roads to another
countries' road.
The organizational
objectives behind
Cadbury's are as
follows -
 To become the
best
confectionery
company.
 To earn
profitability
and gain
competitive
Charity Bank Limited
Company's aim is to
provide money to the
social and charitable
purpose company in
order to help them in
achieving their goals
and objectives (Belás
and et.al., 2015). Other
objectives of Charity
Bank Limited is to put
their savers money
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advantage.
 To enhance the
market share of
the firm.
where their value lays
and focus on charitable
goals and their savers
finances.
Products and
Services
Offered
Highways England provides
transportation and motors
services. It also provides
consultation services to
people and constructors. The
main aim of this company is
to connect roads and for that
it performs several activities.
Cadbury Company
provides various
chocolate bars, bags,
boxes, rolls and ice
creams, crunchie,
Wispa, caramel etc.
Charity Bank Limited
Company provides
banking services to the
public and
organizations who
needed for the purpose
of social or charity.
They also uses their
savers money to make
loans to charities and
social enterprises.
In the context of stakeholders of highway England it can be said that the main target
audience is people who lives near or those with an interest in the strategic road network. It also
includes all those who uses roads from local residents, tourists cyclists. All tax payers and
decision maker in shaping a new road scheme England are also called stakeholder (Johnson,
Leenders and McCue, 2017).
In the context of stakeholders of Charity Bank Limited includes its borrowers, savers,
staff and shareholders. This bank provides an ethical bank and all supports where there money
are being valued. It gives several support to their stakeholders by providing loans to them.
There were about 1.4 million employing businesses and approximate 4.3 million non
employing businesses. It also shows that SMEs plays an important role in improving the
economy of UK.
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LO 2
P2 Size and scope of different types of organization
On the basis of size and scope, there are various types of organizations which are as
follows: Micro Business, Small & Medium-sized Business and Large Organization. There are
various differences between these types of businesses which are such as -
Types of
Companies
Micro Business Small and Medium sized
Business
Large Business
Meaning Micro Company is the
company which can be
defined as the small
company consists of less
than 10 employees. This
type of businesses can be
run by sole traders and
self employed who does
not have more than 10
employees. In the context
of investment if an
organization requires only
£50000 or less than
$50000 than it can be
counted in micro
business.
Medium sized company can
be defined as the company
whose members are less than
250 and has a turnover above
£ 10 million and below £ 50
million. On the other hand,
small size businesses
includes all those businesses
who consists of approximate
10-50 employees. The annual
turnover has above £ 2
million but less than £ 10
million.
Large business can be
defined as the
company whose
members are more
than 250. It is
generally multinational
company (Eling and
Schaper, 2017).
Legal
Structure
Following criteria must be
followed in case of Micro
business -
Numbers of Members: 0
to 9.
Amount of Turnover: less
than £2 million.
Following criteria must be
followed in case of Small
business -
Numbers of Members: less
than 50.
Amount of Turnover: ss than
£10 million (Kozubíková,
Following criteria
must be followed in
case of Large business
-
Numbers of Members:
more than 250.
Amount of
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Homolka and Kristalas,
2017).
In case of Medium Sized
Business -
Numbers of Members: less
than 250.
Amount of Turnover: less
than £50 million.
Turnover :more than
£50 million.
Example Castle Hill Fire Protection
Ltd. Is the example of
Micro Enterprise in
United Kingdom.
 It is micro
business
organization
which provides
expert fire
protection service
for both
commercial and
domestic clients.
 They provide
various services
such as fire
stopping, fire
boarding, fire
curtains, acoustic
stopping, air
sealing,
intumescent paint
to concrete,
Example of Small and
Medium sized business in
United Kingdom is Chic By
Choice.
 Chick by choice is
medium sized
organization which is
a kind of hire
destination that
allows women to
access the most
breathtaking designer
dresses, straight from
the catwalks.
 They provide various
services like designer
dresses, rent dresses,
provides luxurious
rental designer
dresses.
Tesco Company is
considered to be large
enterprise in United
Kingdom.
 Tesco is a large
enterprise that
deals in selling
groceries and
other items i.e.
is a general
merchandiser.
 Their
headquarters is
in England,
United
Kingdom.
 They are the
ninth largest
retailers in the
world and
serves in more
than nine
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intumescent
painting to
steelwork.
countries.
 Their four main
products are:
supermarket,
hypermarket,
superstore and
convenience
shop.
So, it can be said that all these types of organizations have different size, scope and legal
structure which plays an important role. It is stated that there were approximate 5.6 million small
businesses at the start of 2018. It is accounted 99.3% of all private sector businesses at the start
of 2018 and approximate 99.9% were small or medium size. This ratio shows the importance and
increasing growth of small and medium sized business. This provides employment opportunities
to people of UK and increase the economy.
LO 3
P3. Relationship between different organizational functions and their relation with objective and
structure
Organizational function is the process of running the set of activities of business which
carried out in the area of company and different departments. Thus, each organizational function
interrelate to each other as all the function is done according to the proper structure and
guidance. Therefore, each department is need to communicate closely with each other for
achieving the particular task and objective. All functions are required to played in an effective
manner. If an organization wants to achieve its pre determined goals then it is important for all
functional departments to work together as all functions all interrelated. For example, marketing
function have a close relationship with purchasing department, sales department and customer
service department. Human resource department is also interrelated with all functional
department such as purchasing, marketing, financial, sales and budget department etc. There are
several common function of organization which include research and development department,
human resources, operations, marketing, ,IT, finance (Rofiq and Pramono, 2019).
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Human resource management
Human resource is an employee that works and play several functions with the main aim
of accomplishing organizational goals. They are mainly responsible for recruiting of skilled
employees, selection and training of existing as well as new employees. After recruiting they are
also responsible for motivation and development of employees in order to make them able to
complete their tasks effectively. The function of human resources interlink with each department
functions of Cadbury. Thus, to manage each activity, Cadbury needs manpower and human
resources for accomplishing the task of each department whether it is marketing, sales,
production, finance, research and development. Therefore, the purpose of HR department is
select the best candidate that helps to meet the objective of Cadbury. Thus, employees of the
Cadbury effectively utilize the resources and make the quality of goods And services to enhance
the profitability and sales of the organization.
Marketing
Marketing are mainly responsible to gather informations from customers and influence
them to buy their company products and services. Marketing department gives all informations
to purchasing department about customers needs and demands as what they are demanding in
their products. After getting this informations, purchasing department orders and make products
accordingly with the main aim of satisfying their customers (Feng, Morgan and Rego, 2015).
This department is interrelated with production and sales department. Thus, research is done
through marketing that helps to identify the actual requirements of customer and demand of
product. This marketing research helps to production department that they able to make the
product according to the requirements and demand of products so this activity helps to achieve
the objective of production department of Cadbury (Dey, 2019). On the other side, marketing
also aids to achieve the objective of sales department as marketing is successful through
promotional activities of chocolate product of Cadbury. Thus, marking helps to enhance the
demand of Cadbury products. The biggest advantage of Cadbury is that it leads the revenue and
income of the firm.
Production
After getting demands of customers' production department produces products and
services. On the basis of demand and maintaining supply they require to order raw materials
accordingly. On the other hand finance department is responsible for managing money of the
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company. For this, it makes plan, organize, audit, accounting and controlling. For working
effectively, it is important for finance department to cooperate with production department and
get the informations about demanded products for calculating money. This functions interlinked
with finance department. Thus, without production departments, firm cannot identify the
requirements of raw material also without enough funds production department can not manage
their work as they cannot purchase the raw material and machines for making chocolate and
other products of Cadbury. On the other side, if production activities is done properly with an
efficient manner it helpful for achieving the overall objective of Cadbury. Thus, while making
the best and quality products it helps to attract the number of customer. So, it can be said that by
working together and collaboratively, production and finance department can help the company
in accomplishing their goals and increasing overall productivity.
Finance:
The function of finance department is linked with all the departments of company. For
example, finance departments is interlinked with promotional and Advertisement function as
without enough money marketing department cannot identify the needs of customer and cannot
do the promotional activities as they couldn't arrange enough money or fund for the
advertisement expense (Gaganis, Pasiouras and Voulgari, 2019). For example, if the company
wants to launch a new products then marketing department will require to make enough
investment in advertisement and promotional activity. By making understand to finance
department about its functions and investment and by cooperating with finance department, it
can perform all its activities efficiently. On the other side, finance function is also interlinked
with the human resource function as without proper funds the HR department cannot pay the
wages and rewards to the employees . Thus, finance function essential because they manage all
the funds on timely as it helps to fulfil the financial objectives of the Cadbury.
Sales:
Sales department is mainly responsible for company's success by selling products and
services of the company for which it works. They are also responsible for maintaining
relationship with potential customers. An effective relationship with customers plays an
important role as it supports the company to retaining its existing customers and attract new
customers (Locander, Weinberg and Locander, 2018). This department is interrelated with
marketing and technology department. Customers are increasingly interacting and preferring to
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connect with the company via digital channels. So, by providing products via digital platforms
and online, sales department is increasing its sales. So it can be said that with the help of
technology and by cooperating with information technology it can perform its functions
effectively.
So, in the context of interrelation of all functional departments it can be said that they
have close relationship. By collaborating and working together rather than working individually
they can provide better services to customers.
CONCLUSION
From the above study it can be summarized that there are different types of organization
that help in providing various aspect to consumers in satisfying their needs and wants. Different
sectors of organizations like private, public and voluntary help in providing different perspective
and ensure effective utilization of resources for the future. In the company several departments
are there that help in providing various services to its customers. Further it has also shown the
importance of each functional department of the company such as production, finance, marketing
and sales. All the departments are dependent on each other for their work in the company as
marketing department depend on finance for promoting product in the market. By cooperating
and working with each other they helped an organization in accomplishing their personal as well
as overall goals. There are internal and external factors that affect functioning of an organization
and less growth in the future. All functions with cooperation played a vital role and helped the
company in accomplishing its personal as well as organizational goals.
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REFERENCES
Books and Journals
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selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management.
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productivity and efficiency of European life insurance companies. European Journal of
Operational Research. 258(3). pp.1082-1094.
Feng, H., Morgan, N.A. and Rego, L.L., 2015. Marketing department power and firm
performance. Journal of Marketing. 79(5). pp.1-20.
Gaganis, C., Pasiouras, F. and Voulgari, F. 2019. Culture, business environment and SMEs'
profitability: Evidence from European Countries. Economic Modelling. 78. pp.275-292.
Johnson, P.F., Leenders, M.R. and McCue, C., 2017. Public procurement organization: a
comparison of purchasing’s organizational roles and responsibilities in the public and
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Routledge.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
Kozubíková, L., Homolka, L. and Kristalas, D., 2017. The effect of business environment and
entrepreneurs’ gender on perception of financial risk in the smes sector. Journal of
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Locander, D.A., Weinberg, F.J. and Locander, W.B., 2018. The Mediating Role of Sales
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Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
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pp.241-249.
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Rofiq, A. and Pramono, S. 2019. The Role of Strategic Planning and Flexibility in Shaping SMEs
Market Orientation in Turbulence Business Environment. European Research Studies
Journal. 22(1). pp.221-236.
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