Types, Size and Scope of Organisations and their Functions

This report discusses the different types, size and scope of organisations, their functions, and their interrelationship with the organisational structure. It also explores the positive and negative impact of the macro environment on business operations. The case study focuses on JCB, BBC, and Cancer Research UK.

Business
and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A (Covering LO1 & LO2)....................................................................................................3
1 Different types size and scope of organisations.......................................................................3
2. Relationship of functions in a organisation and heir link to organisational structure............7
PART B (Covering LO3 & LO4)....................................................................................................7
3.Positive and negative impact of Macro environment on a business operations.......................7
4 Internal strength and weakness of business and its interrelationship with various macro
factors..........................................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERNCE...................................................................................................................................11

INTRODUCTION
Business is a process which helps in exchange of transactions in form of exchange taking
place of goods & services for increasing its value. Based on motive and objective of a
organisation. organisations are divided into three categories which can be public, private or
voluntary (Pounder, 2015). In this report there are two companies which have been considered
their mission, vision, scope has been analysed so that their overall impact on organisation can be
understood. Various factors inside and outside a organisation are determined. Further there is a
interrelationship present between various organisational function which are also been discussed
in this report.
PART A (Covering LO1 & LO2)
1. Different types size and scope of organisations
Organisation are classified into different categories based on their motives. Different
types of organisations are described below:
Private Organisation : These are those companies which are owned by private enterprises
which can be a partnership, person or a association which have a major motive of earning profit.
Purpose: Major purpose of a private organisation is to earn profit and create value for increasing
their overall market share and expansion of exiting base of customers (Trad, and Kalpić, 2016).
The financial resources available with them are managed for achievement of their overall
objectives. JCB is a private organisation which is having a major motive of earning profits.
Legal Structure of Private Organisation :
Sole Proprietorship : This is a business which is controlled & owned by one individual, that
person is liable for all liabilities, losses or profits occurring in due course of its business.
Partnerships : These business are managed, owned and controlled by two or more individuals
who are commonly regarded as partners they have a mutual decision on how their overall profits
or losses will be divided or shared amongst them.
Limited Companies :These are type of separate legal entities who are managed by a company.
Capital is procured with help of shares which are issued to public.

Public organisation : Public Companies are those which are run and owned by government and
their major objective is not to maximize profits but to do social welfare. For such organisations
funds are provided by government. They have a objective to improve standard of living of people
and enhance equality practises in society (Holden, 2016). BBC is a also public organisation
which is provide funds by Government and operated by government.
Purpose : Main objective is social welfare of society ad upliftment of people living in society.
Legal Structure of Public Organisation :
Central : This is a apex body which is regulated and controlled by economy by giving authority
to various department who work for society's welfare.
State : These are having responsibility for a particular territory and they are given authority
based on which they regulate & monitor different departments which are falling under their
supervision.
Local : These are communities which are managed by a particular locality. They have
responsibility of development which can simplify the life of people living in society.
Voluntary Organisation : These organisations are those which are incorporate for solving a
particular issue (Domazet and Marjanović, 2016). These organisations have those people who
are working with their choice. They provide services to group, individual or a country. Cancer
Research is also a voluntary organisation.
Purpose : Min purpose is providing assistance so that issues can be solved. These are not for
profit organisations who are having motive of welfare of people living in society.
Legal structure of Voluntary organisation :
Trust : These are those organisation who are managing land holdings, property and utilising
funds for achievement of particular objectives.
Unincorporated Association : These organisations have people who are voluntarily engaged for a
short period of time to meet particular objectives.

Growth of International business environment :
The International environment of business is very competitive as there are rapid and very
fats changes which are taking place in taste, technology and preference of people, there is
increased mobility and major reason behind this is growth (Schaltegger,Hansen and Lüdeke-
Freund,2016). There is availability of funds, liberal laws, labour in abundance in some countries
and are scarce in some countries this leads to a situation of mobility in global environment.
Size and Scope of organisation:
J.C. Bamford Excavators Limited :This is known as JCB which is a largest multinational
brand and is engaged in manufacturing of a variety of machines, waste management, equipments,
they are having operation in approx 150 countries and factories in 22 countries.
British Broadcasting Company : BBC is a public company which is one of oldest broadcasting
company (Geissdoerfer, Vladimirova and Evans, 2018). They are having a annual fee in form
of license fee. They have a intention to create awareness among people.
Cancer Research UK : This is a organisation working for cancer. They have to carry research
which helps doctors in giving treatment to people.
Company Vision Mission Size Scope Stakeholders
JCB Vision of this
company is to
become brand
by offering
something
unique to their
customers.
Mission is to
become a
company
which is
providing
innovative,
strong and
products with
high level of
performance.
Their products
are sold in
approximately
150 countries .
Revenue is
£3.35 in year
2018. Number
of employees
working in
this company
is 15000.
They are
operating in
areas such as
waste
management,
agriculture,
construction.
These are
segment which
are given
major focus by
This is a
family owned
business and
all family
members are
involved in
running an
management
of its
functions.

this company.
BBC The vision of
this company
is they want to
be a
innovative
brand which
can help in
creating a
understanding
with their
customers.
The mission is
to give
authentic and
reliable
information
which is
treated with
their
surroundings
and can be
used in
educating
people.
BBC is having
its operations
in many
countries and
they are
having 20000
people who
are working
with them
which makes
it a large scale
company.
This company
is willing to
extend their
functions by
addition of
more channels
& programs
which can
help this
company in
attracting
more
customers.
They are
having many
stakeholders
which are
external and
internal like
customers,
media partners
etc.
Cancer
Research UK
Their vision is
of curing a
disease which
is very
common
nowadays that
is cancer so
that people
who are
suffering from
this can b
provide help.
Mission of this
company is
that to conduct
research so
that reasons
for this disease
can be find
out, types of
cancers can be
identified and
this can help
in making
people aware
of how such
disease
occurrence can
This company
is having 100
members who
are working
towards
charity and
achievement
of laid
objectives in
this company.
They are
willing to
increase their
market share
which can
help them in
involving
more people in
their
organisation.
CRUK is a
organisation
which is very
committed and
they have
various
stakeholders
such as
beneficiaries,
volunteers
who rae
providing
wide variety
of services.

be prevented
or stopped.
2. Relationship of functions in a organisation and heir link to organisational structure
Role and responsibilities of various functional units:
Marketing : This is department which performs the function of identifying and determining new
products according to requirements if their target customers. This is the most crucial department
in JCB as they are having direct contact with target customers and they can very easily identify
needs and requirements of their customers (Wood,and Logsdon,2017). This is very helpful in
forming various strategies which can help in overall growth of this organization.
human resource: This is a department which performs function of recruiting and selecting
people according to different functions which they are performing in JCB (Kopnina, and
Blewitt, 2018). They also arrange training programs for their employees in case there is need.
Research and development: The research department in JCB helps this company in modifying
and making required changes which are necessary in case whenever there is need for innovation
which has to be done by the company. Also external environment is continuously changing and
this posses effect and sometimes has a pressure on companies as they have to bring necessary
modifications with time.
In every business there are various activities which are performed by various departments
and that has to be aligned so that there is saving of efforts time and resources.
Marketing and Sales: These are two departments which are having high interrelation
with each other and marketing department and responsibility of creating a plan. Sales department
has to maximize their sales and this is dual objective which has to be fulfilled by both these
departments.
Human resource and operations: Human resource and operations departments are
dependent on each other as human resource department has to hire competent people who can

perform business functions in a more effective manner. Operations department has major
responsibility that they have to ensure that all functions are taking place in a effective manner.
IT and Finance: These two are most crucial departments for every organisation (Wach,
2015). Finance department has to arrange funds which are necessary for having updated
technology which is important for having a competitive advantage as compared to other
competitors.
relations of functional divisions with mission:
Organisational Structure: this is a system which is defining how various activities are
carried on in any organisation (Divanbeigi and Ramalho, 2015). It helps in determining
information flow, flow of authority and responsibility channels.
Divisional structure: This is a structure in which functions in which organisation is
divided based on flow of resources and operations. In this product line is described below:
Illustration 1: Divisioonal structure
(Source : Organisational structure, 2019 )
Matrix levels: This is a structure which depicts the relationship between subordinate and
superior in form of a matrix or a grid. They are for a specific project in which a person has to
report in various grids.

Illustration 2: Matrix structure
Functional levels: This is a structure which is followed in JCB is a functional structure. This is a
type of structure in which organisation is divided into various smaller groups which are
according to specific functions. Each function has manager which is managing these units.

Illustration 3: Organisational structure of JCB international
(Source : Organisation Chart of JCB International, 2013)
PART B (Covering LO3 & LO4)
3.Positive and negative impact of Macro environment on a business operations
Micro factors are those which a re having affect on strategy of a business and their
overall decision making process. They posses a effect on various Individual business as capacity,

resources, strategies affected by various changes which take place in external environment and
are controllable factors.
Macro factors are those which have a negative and positive impact but there is no control
on such factors by organisations (Chiadamrong, and Sophonsaritsook, 2015). To make a
analysis of such factors is necessary to understand various opportunities which exist and also
minimization of any threats present in external environment.
PESTLE analysis: This is a analysis which is used by companies so that they can make a
analysis of various external factors which are prevailing in the environment and posses a impact
on internal functioning of a organisation.
Political : This is a factor which is related with intervention of government in business
operations.
Positive :UK's government is having a very strong focus towards management of waste, power
stations etc. this helps in sustainability in their country.
Negative: Public expenditure is reducing on infrastructure which may lead to decrease in demand
for construction equipments in which JCB is dealing.
Economical: This includes various factors such as interest rate, unemployment rate.
Positive: There is expectation that in future construction industry may grow this will give a
opportunity to this company that they can expand their business operations.
Negative: Financial crisis has resulted into slow down of market growth which leads to
investment & construction work also getting slow down.
Social: These factors are related to preferences and taste of consumers.
Positive: With increasing urbanisation construction industry will be experiencing a boost which
will lead to increase in profits for JCB.
Negative: continuous changes in taste and preference of people affects the company as they have
modify their business practises very frequently.
Technological: This factor is related with various technological advances which take
place in external environment.
Positive: When a new technology is adopted then there is increase in safety measures for their
employees.
Negative: Adoption of new technology will lead to very high cost and investment which has to
be incurred by company in adoption of new technology.

Legal: This is related to factors which are related with legal rules & regulations which
have to complied by all companies on which it is applying.
Positive: When there will be more compliance then it will lead to more safety measures being
adopted by JCB (Boda and Zsolnai, 2016).
Negative: Many legal compliance leads to lot of rigidity in the overall working of company.
Environmental: This factors is related with external environment in which bsuinss is
functioning.
Positive: JCB is responsible company and they are using those machineries which are emitting
less carbon and waste.
Negative: People and government is becoming more concerned for having environmental
measures so that there is adequate safety for environment in which company is functioning. This
leads to lot of measures which have to be undertaken by company.
4.Internal strength and weakness of business and its interrelationship with various macro factors
SWOT analysis:
JCB BBC
Strength JCB has a wide range of goods
which can be used in waste
management, agriculture etc.
this can help in occupying a
large share in market (Trad,
and Kalpić, 2016).
They have existence in
different territories which
leads to large distribution
network.
This is one of oldest
Companies having a strong
brand image and that have a
marketing campaign which
helps them in updating people
about their work.
Weakness They have a weakness that this
company is dependent on
European market and any
crisis taking place in this
There is very high cost of
functions which leads to
insufficient funds.
Many times they get involve

market affects operations of
this company.
They have very less
diversification in their area of
business which leads to shrink
in their share of market.
into some controversial issues
which affects their image.
Opportunities There is a opportunity for JCB
they can expand their
operations as there has been
increase in opportunity for
government projects.
Expansion of their warehouses
will lead to increase in their
overall customer base.
They have opportunity that
they have stable cash flows
which can help them in smooth
carrying down of their
functions.
Threats Threat is that this is a company
and its growth is depended on
growth of other industries such
as construction industry.
They face a very high
competition which leads to
getting affected by changing
taste & preferences very
frequently.
Interrelation of strength and weakness with various external factors
For a organisation it is very important fir making such a analysis as it is very helpful in
identification of various opportunities which can be availed and overall threats can be minimized
(Couto, Lopes,and Sousa, 2015).
Impact of macro factors on JCB :
Political impact
 Strengths : UK government is having policies related to management of waste which are
offered by JCB.
 Weaknesses : with the increase in public expenditure there is a crisis in which has lead to
decrease in demand for construction equipments.

Economical impact
 Strengths : In coming period JCB can experience increase customer base.
 Weaknesses : Recession has lead to low investment which will affect demand of
products in JCB.
Social impact
 Strengths: with the urbanisation JCB has opportunity they can expand themselves in
business in Asia.
 Weaknesses : The overall wage rates are very high which is leading to low demands for
products.
Technological impact
 Strengths: JCB can cater in increased number of countries which will help in meeting up
of various technological requirements (Pounder, 2015).
 Weaknesses : Technological changes lead to increase in maintenance cost for JCB.
Legal impact
 Strengths: JCB can satisfy all their customer requirements in various locations as they
are having compliance with various safety requirements.
 Weaknesses: When all legal requirements are fulfilled then it may lead to increase in
research cost which can finally lead to increase in process of their goods.
Ecological impact
 Strengths: Innovative technology is helpful for JCB in reduction of carbon emission.
 Weaknesses: Each country has their own legal requirements which have to fulfilled by
JCB.

CONCLUSION
It is being concluded from above report that there are various departments in every
organisation and it is affected by all factors which are external and internal. Every organisation
has to deal with such issues. There are various tools which are used by companies for making a
analysis of their external and internal environment factors. Such as PESTLE analysis is used for
analysis of external environment and SWOT analysis is used for analysing internal environment.
Further there are various types of organisational structure which also posses impact on way
organisations are functioning.

REFERNCE
Books & Journals
Pounder, P., 2015. Family business insights: an overview of the literature. Journal of Family
Business Management, 5(1), pp.116-127.
Trad, A. and Kalpić, D., 2016. The E-Business Transformation Framework for E-Commerce
Architecture-Modeling Projects. In Encyclopedia of E-Commerce Development,
Implementation, and Management (pp. 733-753). IGI Global.
Holden, A., 2016. Environment and tourism. Routledge.
Domazet, I. and Marjanović, D., 2016. 1.11. IMPROVING THE BUSINESS ENVIRONMENT
IN SERBIA THROUGH TAX INCENTIVES FOR FOREIGN
INVESTORS1. IMPACT OF ECONOMIC POLICIES ON ATTAINING RESILIENT
GROWTH BOOK OF ABSTRACTS, p.59.
Schaltegger, S., Hansen, E.G. and Lüdeke-Freund, F., 2016. Business models for sustainability:
Origins, present research, and future avenues.
Geissdoerfer, M., Vladimirova, D. and Evans, S., 2018. Sustainable business model innovation:
A review. Journal of Cleaner Production, 198, pp.401-416.
Wood, D.J. and Logsdon, J.M., 2017. Theorising business citizenship. In Perspectives on
corporate citizenship (pp. 83-103). Routledge.
Kopnina, H. and Blewitt, J., 2018. Sustainable business: Key issues. Routledge.
Divanbeigi, R. and Ramalho, R., 2015. Business regulations and growth. The World Bank.
Wach, K., 2015. Entrepreneurial orientation and business internationalisation process: The
theoretical foundations of international entrepreneurship. Entrepreneurial Business and
Economics Review, 3(2), pp.9-24.
Chiadamrong, N. and Sophonsaritsook, P., 2015. Relationships between supply chain
capabilities, competitive advantage and business performance: an exploratory study of
the food industry in Thailand. International Journal of Logistics Systems and
Management 8, 20(4), pp.447-479.
Boda, Z. and Zsolnai, L., 2016. The failure of business ethics. Society and Business
Review, 11(1), pp.93-104.
Couto, E.S., Lopes, F.C. and Sousa, R.D., 2015. Can IS/IT governance contribute for business
agility?.

Online
J C Bamford Excavators Ltd., 2019.[online] Available through :
<https://www.jcb.com/engb/about>
Pestle Analysis of Construction Industry, 2019. [online] Available through :
<https://lawaspect.com/pestle-analysis-construction-industry-2/>
Marketing Environment, 2019. [online] Available through :
<https://www.marketingtutor.net/marketing-environment-definition-factors-and-
examples/>
Organisational structure, 2019 [online] Available through :
<https://study.com/academy/lesson/what-is-organizational-structure-of-management-
types-examples-quiz.html>