Relationship between Organisational Functions and Structure

This document discusses the relationship between different organisational functions and how they are linked to the organisational structure and objectives. It explores the advantages and disadvantages of this interrelation and its impact on the organisation. The document also covers the strength and weakness of the organisation in relation to external macro factors.

Business & Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Various kinds of purposes of organisations like public, private volunteer with their legal
structure..................................................................................................................................1
P2/M1 Size and scope of a range of various kinds of organisation.......................................3
TASK 2............................................................................................................................................5
P3 Relationship between different organisational functions and how they linked to
organisational structure and objectives..................................................................................5
M2 Advantages and disadvantages of interrelation between organisational function and
impact that can have upon organisational structure of TRANSCO.......................................6
TASK 3............................................................................................................................................7
Covered in PPT.......................................................................................................................7
P4 ...........................................................................................................................................7
M3 ..........................................................................................................................................7
TASK 4............................................................................................................................................7
Covered in PPT.......................................................................................................................7
P5............................................................................................................................................7
M4 ..........................................................................................................................................7
P6 Strength and weakness interrelation with external macro factors.....................................7
CONCLUSION................................................................................................................................9
REFERENCE.................................................................................................................................10

INTRODUCTION
Business environment is the combination of different types of internal and external
factors which involves employees, clients, customers, owners, innovative technologies, market
trends and changes in economies. All these factors affects business functions and operations in
both negatively and positively manner. Therefore, firms are required to have effective and
accurate knowledge about marketing analysis so that they can grab unique opportunities at
marketplace (Aithal, 2017). That's why business environment is more helpful for any kind of
firm and business industry to analyse overall growth and opportunities at marketplace. Within
the dynamic environment of business, firms are needed to consider on those trends which are
changing day to day. In order to understanding of this topic, present report is based on public
(TRANSCO), private (Marks and Spencer) and volunteer (Oxfam) organisations. Moreover
discussion will be based on several size, scope and types of organisations and interrelationship of
different function within firm and how they are interlinked with organisational structure. At last,
positive and negative influence on business operations along with strength and weakness of
particular business and interrelationship with external macro factors will get unrepentant.
TASK 1
P1 Various kinds of purposes of organisations like public, private volunteer with their legal
structure.
Within the present situation business systems are much complex so that sometimes it can
be difficult for firms to achieve competitive world of business. In order to stay for long term at
marketplace firms are needed to adopt several activities and functions. With the help of this they
can understand their responsibility and able to achieve their targeted goals (Avramenko, 2012).
There are some organisations which played several role in different sectors, those are mentioned
below:
Private organisation:
This type of organisations and business entities generally comes under the partnership,
corporation, person and agencies as well which is not controlled and monitored by any
governmental bodies and generally makes for profit. For better understanding of these sorts of
firm Marks and Spencer is the best example which is one of the best private firm and British
Multinational retailer along with it is headquartered in London U.K. It was established in 1884
1

through Michael Marks and Thomas Spencer. By having famous identity across the world this
private organisation have specific goals and objectives by which they can satisfy its customers
and able to earn huge profit in a perfect manner. Apart from this, M&S do not have any
government pressure so that they are able to take their own decisions and run their business
smoothly (Chi, 2015).
Legal structure: Marks and Spencer generally contains powerful legal structure in order
to shape their business in a innovative style and aim to achieve targeted goals. Therefore,
employees/workforce of this firm is very helpful for them who generally have new thoughts and
ideas to make effective brand image in a proper manner.
Stakeholders: According to the M&S stakeholders are customers, management,
employees and all people who always get in touch with this firm. Therefore, it is easy for Marks
and Spencer to achieve effective profit (Craig and Campbell, 2012).
Purpose: The main aim of Marks and Spencer is to offer each and every product into the
marketplace to target upper and middle class people who interested in their goods and services.
For further development they have purpose to expand its business at much high level.
Public Organisation:
This type of sectors generally manage and controlled by governmental bodies by which
they can provide effective and unique services to their employees as well as customers. On the
other hand, this type of firm always satisfy people wants and needs and make them happy at
every level. For example: TRANSCO is one of the branch of British Gas plc organisation. That
mainly use sophisticated computer guess in order to measure gas goes by meters, valves
compressors and governors within more than 20 million homes, businesses and factories as well.
Therefore, it is very best service which provide gas across the UK.
Purpose: As TRANSCO operated power transmission systems so that the main purpose
of this firm is to provide best services to people by distribution of electric utilities nationwide. So
that they can achieve their desired goals and objectives in a perfect way (Hillary, 2017).
Legal structure: TRANSCO is mainly considered as a multi-level managerial
organisation which always focus on unique systems and structures in the observation of top
management director and chief engineers in order to maintain their rules and policies.
Stakeholders: This firm has been segmented its stakeholders within ten groups but one of
the major stakeholders of this organisation is customers because without their engagement in this
2

firm they can not take action properly. Therefore, they always listen first to its customers and
meet their requirements as well.
Voluntary Organisation:
This type of firms mainly considered as a group who comes with the agreements within
volunteers form to fulfil organisational goals and objectives (Ifinedo, Pyke and Anwar, 2018).
On the other hand it is the combination of trade unions, associations, learned societies and so on.
For example Oxfam is one of the best volunteer organisation which is considered as a type of
alliances, wherein 20 independent charitable trust works together and able to reduce poverty
from the nation. It has been launched in 1942 by Cecil Jackson-Cole in England. Most important
thing is, this firm always works to make people happy by reducing crime not for earning profit.
Stakeholders: Employees, founder, developer and volunteer can be stakeholders of
Oxfam in order to make each decisions better.
Purpose: The main aim of this organisation is to offer unique and fruitful alternatives to
their people within society by overcome poverty from the nation (anita and Miranda, 2013).
Legal Structure: In order to formulate trust, belief and norms into the people minds they
are following hierarchical structure, some of them are discussing below:
A Trust: It is essential for firm to create trust in people minds so that they can
understand their services and make organisation successful.
Legal needs: This organisation has numerous laws and legislations like legal advice,
checklist, charity that help firm to do their every operation in a better way.
An Unincorporated association: With the help of lots of people and their contribution
firm is able to take better decision at every movement and attract large number of societies and
nation in a single time.
P2/M1 Size and scope of a range of various kinds of organisation.
To gain successful growth in marketplace firms are needed to have different types of size,
scope, aims and objectives to achieve targeted goals (Palepu and Healy, 2013). There are
different types of elements which plays significant role in several firms, discussed below:
Private Organization:
These firms mainly work for earning profit in order to gain effective sales and revenue
they always deal with unique goods and services. Herein, Marks and Spencer is also makes
better product to satisfy consumers wants.
3

Background: It deals with households items, clothes, food items and so on. As it is
international brand so it also provide financial services.
Mission: To provide world's best quality of items globally.
Vision: To achieve targeted goals and objectives through increasing successful growth of
their business.
Objectives: To create effective sales and get effective and growing marketing strategies
properly.
Products: It deals with so many goods and services like home appliances, households
and so on (Palo and Tähtinen, 2013).
Size: As it is international brand so that it has numerous activities therefore, size of this
firm is brad.
Structure: This organisation mainly followed flat organisational structure by which they
can give better ways to employees for interacting people at marketplace.
Scope: With the help of ample counting of employees they work internationally and have
good scope for future enlargement.
Public Organization:
TRANSCO is one of the best leading gas British industry which is able to cope up with
current market trends and provide best service to people into the economy.
Background: It is based on Gas which can transported reliably and safely at
marketplace. It mainly needed by business firms, industries, small businesses and homes.
Products and services: Deals with Gas and power energy systems.
Vision: To formulate best gas systems within the nation (Shenkar, Luo and Chi, 2014).
Mission: To offer safety tools for employees while measuring gas elements.
Size: They are working with huge people and attract large number of customers.
Objectives: To increase its sales 20% in to next 2 years through applying innovative
techniques.
Structure: This firm follows Hierarchical structure to take better decisions.
Scope: It is a broad concept that offers securities to people.
Voluntary Organisations:
4

According to Oxfam, as it is mainly considered as 19 independent charitable trust or
agencies in order to overcome poverty from the world. It is launched in 1942 globally. Therefore,
Oxfam works for give huge satisfaction to people.
Vision: To reduce poverty worldwide.
Mission: To create variants and strategies to make every people happy.
Size: By having lots of people they can sustain for long time at marketplace.
Objectives: In order to provide multiple alternatives to improve living standard of people
(Schaltegger, Lüdeke-Freund and Hansen, 2012).
Structure: They used organizational structure by which they can bring few innovative
tools.
TASK 2
P3 Relationship between different organisational functions and how they linked to organisational
structure and objectives.
The organisation has different kind of department as there must effective communication
within the organisation as to provide better services to the consumer. This also improve the
efficiency of the employees working in the organisation. Hence this is the prime duty of
management of TRANSCO to look after the environment of the company and make changes if
required. With the interconnection of different department organisation can make quality
decision which assist in providing competitive advantages. Here are some of the interrelation of
department which are explained down below:
Marketing and HR: Human resource department is consider as the important role in the
firm and there main role is to provide effective employees to the organisation. This will assist
company to improve their efficiency and quality in products as well as services effectively.
However marketing department have the role to promote the product and its services to larger
customers base (Tynan, McKechnie and Hartley, 2014). There main role is advertise and do
promotional activities for capturing larger market share. So HR have the responsibility to provide
efficient employees in marketing team which help TRANSCO to make more profit and market
share.
Marketing and finance: Finance department is one of the most important department in
the company as they look after all the financial requirement of the company. In the context of
5

TRANSCO there must be effective communication among these two department because
marketing team requires financial support in order to carry out their activities such as promotion
and campaign. Here finance department will provide the funds and marketing people have to
work according the requirement .
Marketing and IT : IT have its own importance in the company as they manage all the
operational activities going in the organisation. For the organisation like TRANSCO the
marketing department have the responsibility to be in regular touch with IT so that they can
promote there services to consumer at a larger scale. Along with this is also the inter relation
help firm to gain rival edge in the limited time frame.
M2 Advantages and disadvantages of interrelation between organisational function and impact
that can have upon organisational structure of TRANSCO
The major advantages of interrelation among the organisation is the specialization as it
ensure the dependable level in the organisation. Along with this it improve the operational speed
and help to manage the demand and supply of the market effectively (Berg and Kilambi, Siebel
Systems, 2014). Another major advantages is clarity as this eliminates the duplication of
assignments that waste time and effort and makes it easier for management to direct work to
appropriate employees. This help in improving the performance of the individual as this help
gaining more and more for TRANSCO.
The major disadvantage are segregation as department in which skills employees are
working are separated which slow down the performance of the company. Employees are
different from one another and due to interrelationship it will directly effect the working of the
employees. The another disadvantage is that it reduces bond and relationship with the other
employees which effect the morale and capacity of output of individual. A further disadvantage
of a functional organization nearly related to the failure of functional groups to collaborate with
one another is the possibility of region disputes which reduces the efficiency of the company.
6

TASK 3
Covered in PPT
P4
M3
TASK 4
Covered in PPT
P5
M4
P6 Strength and weakness interrelation with external macro factors.
Decision making process is one of the main aspect in every firm to make better ways for
gaining successful growth at marketplace. In context with TRANSCO British gas plc can get
affected from macro factors in both positive and negative manner. Interrelation of SWOT and
PESTLE analysis in macro environment has been discussed below:
Political: Within the changes in government policies British gas plc faced few problems
by which they get lose at that time. But after considering all these things they applied unique
strategies so that they are able to offer appropriate services to people. Therefore, strength and
external factors are interlinked with each other.
Economical: It mainly affects by currency impact on firm in which respective firm faced
few issues like money crises and so on but now a days TRANSCO is providing effective services
to their people.
Social: By facing so many issues and problems within the societies British gas plc as
they have large number of services by which they can satisfy people needs and wants timely. So
it help to overcome negative impact on firm (Werbach and Hunter, 2012).
Technological: It refers to the different types of tools and technologies which can be
adopted by firm in order to get effective image at marketplace. In context with TRANSCO this
7

can be said that, for overcoming negative impact of this factor can bring opportunities for them
so that they can expand their business and able to achieve targeted goals.
Therefore, interrelation of PESTLE & SWOT analysis mainly affects business situation
in both positively and negatively but somewhere it is helpful for firm to achieve goals.
8

CONCLUSION
According to the above representative report it has been concluded that, business and the
business environment is the activity of different types internal and external factors combination
which is generally used to identifying SWOT and PESTLE analysis through companies to know
accurate information as per the market scenario. Along with this there are so many factors which
directly influence overall business performance in both positive and negative manner. Therefore,
in order to take appropriate decision towards business, so that they can achieve their goals in a
proper way.
9

REFERENCE
Book and Journal
Aithal, P. S., 2017. Impact of Domestic, Foreign, and Global Environments on International
Business Decisions of Multinational Firms: A Systematic Study. International Journal
of Management, Technology, and Social Sciences (IJMTS). 2(2). pp.93-104.
Avramenko, A., 2012. Enhancing students' employability through business
simulation. Education+ Training. 54(5). Pp,355-367.
Berg, E. and Kilambi, K., Siebel Systems Inc, 2014. Method and apparatus to facilitate
development of a customer-specific business process model. U.S. Patent 8,639,542.
Chi, T., 2015. Business contingency, strategy formation, and firm performance: An empirical
study of Chinese apparel SMEs. Administrative Sciences. 5(2). pp.27-45.
Craig, T. and Campbell, D., 2012. Organisations and the business environment. Routledge.
Hillary, R., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Ifinedo, P., Pyke, J. and Anwar, A., 2018. Business undergraduates’ perceived use outcomes of
Moodle in a blended learning environment: The roles of usability factors and external
support. Telematics and Informatics. 35(1). pp.93-102.
Janita, M. S. and Miranda, F. J., 2013. The antecedents of client loyalty in business-to-business
(B2B) electronic marketplaces. Industrial Marketing Management. 42(5). Pp,814-823.
Palepu, K. G. and Healy, P. M., 2013. Business analysis and valuation: Using financial
statements, text and cases.
Palo, T. and Tähtinen, J., 2013. Networked business model development for emerging
technology-based services. Industrial Marketing Management. 42(5). pp.773-782.
Shenkar, O., Luo, Y. and Chi, T., 2014. International business. Routledge.
Schaltegger, S., Lüdeke-Freund, F. and Hansen, E. G., 2012. Business cases for sustainability:
the role of business model innovation for corporate sustainability. International Journal
of Innovation and Sustainable Development. 6(2). Pp,95-119.
Tynan, C., McKechnie, S. and Hartley, S., 2014. Interpreting value in the customer service
experience using customer-dominant logic. Journal of Marketing Management. 30(9-
10), pp.1058-1081.
Vitale, R. P., 2012. Business to business marketing. Pearson Education India.
Wetherly, P., 2014. The business environment: themes and issues in a globalizing world. Oxford
University Press.
Wheelen, T. L. and et. al., 2017. Strategic management and business policy. Pearson.
Weiss, J. W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-
Koehler Publishers.
10