Organizational Structures and Business Environment

The assignment delves into various types of organizational structures, focusing on functional and divisional models. It examines how these structures impact the overall business environment, considering factors like competition, risk-shifting, and international trade. The analysis draws upon academic literature and real-world examples to provide a comprehensive understanding of organizational design and its implications.

BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 & P2 ......................................................................................................................................1
TASK 2 ...........................................................................................................................................1
P3 Functions of United Biscuits, using a chart to show the way in which the functions
interrelate and link to the organisational objectives and structure..............................................1
TASK 3............................................................................................................................................4
P4 Using the PESTLE analysis and highlighting the positive negative impact on UNITED
BISCUIT......................................................................................................................................4
TASK 4 ...........................................................................................................................................5
P5 Strengths and weaknesses of United Biscuit.........................................................................5
P6 SWOT analysis of united Biscuits ........................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
There are three different types of organisation which operate in an economy like
public sector, private sector and voluntary sector of enterprise. All these enterprise are
essential for the betterment of the economy. Some work for the profit motive some of them
work for the betterment of the public and rest of them work for the upliftment of the society.
Without all these kind of industries an economy certainly cant function for a longer duration
of time. A the rules, regulation and the laws imposed by the state should be strictly followed
by all the sector.
TASK 1
P1 & P2
Enclosed In PPT
TASK 2
P3 Functions of United Biscuits, using a chart to show the way in which the functions
interrelate and link to the organisational objectives and structure
UNITED BISCUITS (UB):- United Biscuits was formed in 1948 by a merger of two
Scottish family businesses; McVitie & Price and MacFarlane. Is a British based multinational
food manufacture makers of McVitie biscuits Jacob cream crackers and twiglets. The
company was listed in the London Stock exchange and was once a constituent of the FTSE
100 Indexes and was acquired by Yildiz Holding and now is a part of Pladis.
Organizational functions such as production, research and development, billing,
marketing and sales, finance, operation, supply chain management etc. the organizational
structure identified the relationship and interaction between the part of the business and
defines how the chain of command running through the various level. The United Biscuits
set-up their business structure at whole organizational functions, but even the function does
not structure will affect each other (Worthington and Britton, 2015).
Objective of United Biscuits:-
 To increase the brand value.
 To Achieve higher profitability growth.
 To recognise that cost merchandise and companies alliance are main key driver of
satisfaction.
Functional Structure below discuss:-
1

Many of the companies adopts a functional organizational structure such as
production, research and development, marketing and finance, human resource etc. Different
functions go into individual departments that representing their working to department
managers, and it also reports to higher authority. The company adopts a functional and
systematic structure, it has gain the advantage of clear lines of control. It also allocates works
to individual’s employees according to their ability and capabilities and give them target with
specific time period (Kubasek, Brennan and Browne, 2016).
Function of United Biscuits describe below: -
Finance function: - Finance function is the blood of United Biscuit. Accounts and
finance department keeps manual and electronic records of all transaction of business such as
borrowed, capital invested and outstanding. It manages worker’s pension, salaries, loan,
repayments, etc. Finance department helps the management from this specific information in
terms of managing employees accounts and any other business-related transaction(Hamilton
and Webster, 2015). This finance function help the other departments of UB to form their
budgets finance department will give the money to all the others. Finance department will
identify the financial need of the company as well as the other departments of the company.
Human resources functions: - In this function includes selection and recruitment,
2
Illustration 1: Organization Functional Structure

training and development of employees. The United Biscuit also hire highly qualified and
knowledgable people with the help of structure requirement process in terms of written test,
personal interview. From this, process the company hired able and capable and they people
support to the organization for achieving their aims and objective from effective working in a
right manner. This department support to the workers in terms improving their working
efficiency through providing training and development session themselves (Wijaya and et.al.,
2011). All the employees who are employed in UB and its different department will be
appointed and selected by human resource department only. HR department is responsible to
provide best quality of employee in the organisation so that they can help the organisation to
grow.
Marketing and sales function: - The marketing and sales helps to the company in
terms of identifying customer needs and wants or market trends. It develops strategy
according to the demographic environment of the chosen area. Marketing and sales
department also support to the production in terms of providing specific information about
the market demand and customer needs, then the production department produce unit
according to the given information. Therefore, adoption of this strategy the company reduce
the wastage and meeting their aims and objective (Gropp, Hakenes and Schnabel, 2011). This
department will be helping in achieving the organisational goal of profit maximisation by
selling the products. By marketing of the product organisation can reach out to larger people
in larger areas and then sell the products.
Research and development: - The work of this department is to attributes new
features in the existing products, innovates new other products, developing manufacturing
methods, and innovation in the processes. R&D department also plays significance role in the
success of organization. It helps to the company in terms of introducing differentiate product
in market and improving sales of the organization. Research and development department of
United Biscuits can focus on this strategy then they also achieved its aims and objective and
gain competitive advantage from the market. It also helps in cost cutting and generating more
revenue (Etro, 2011). This will enable UB to get innovation it the products and services or the
methods of baking of biscuit. By research and development department company can grow
and develop its market by introducing some new product or develop the existing product.
Interrelationship among all these functions:- Organisational functions are likely to
manage all functions and activities of company. Managers can easily forms future strategies
and policies with the helps of above mention organizationals functions and meet goals and
3

objectives. Along with this, in United Biscuit organisational functions are supportive for
improving flow of production. It is the duty of marketing department to promote their
companies products and services, so as to increase the sales (Colciago and Etro, 2010).
Because sales and marketing is also the important function of the company in order to
achieve target customer and market reach.
Production and designing also plays significance role in achieving business objective
in terms of Labour, capital, energy, raw material and information are the necessary factors of
products; with these elements' production manager can produce efficient product for their
customers.
TASK 3
P4 Using the PESTLE analysis and highlighting the positive negative impact on UNITED
BISCUIT.
It includes the political, economical, social, technological, legal and environmental
factors affecting the business of UB.
Political these factor determined the extent to which a government may influence the
economy or the industry. The government imposing a new tax or duty due to which entire
revenue generating structures of UB may change. Political factors include tax policies, fiscal
policy, trade tariffs that the government may levy on the food industries (Bourne and et. al.,
2013).
Economical these factor determine the industries performance because of inflation
rate of the economy. This will also affect the purchasing power of a consumer and change in
demand and supply of the product of UB. Economic factors include inflation rate, interest
rate, foreign exchange rate, economic growth patterns and foreign direct investment(Chor and
Manova, 2012).
Social these scrutinize the social environment of the market like cultural trends,
demographics, population analytics, etc. This will also influence the growth of UB in the
industries (Worthington and Britton, 2015).
Technological these factors pertain to innovation in technology that may affect the
operations of UB. These can refer to automation, research and development and the amount
of technological awareness that market possesses.
Legal customers laws, safety standards and labour laws also affect the working of the
4

company. These factors have both external and internal sides. External are law formed by
government and internal are laws formed by the company or the industries.
Environmental they include all those factors that influence and determined by the
surrounding environment. They include tourism, farming and agriculture and not only limited
to climate or weather or geographical location or global changes in the climate.
PESTLE analysis of UB needs to increase the sale, demand and the supply of the
company they should be more focused on this. It may be so that the importance of each of the
factors may be different to different industries but it is imperative to any strategies a company
develop that they conduct the PESTLE analysis as it forms a much more comprehensive
version of the SWOT analysis (Bourne and et. al., 2013). All the aspects of this technique are
crucial for any industries a businesses might be n. more than just understanding the market
this framwork represents one of the backbone of the strategic management that not only
define what a company should do but also accounts for organisation goals and the strategies
stringed to them (Wijaya and et.al., 2011).
TASK 4
P5 Strengths and weaknesses of United Biscuit.
As the company is one of the leading company in the industries they are embraking on
the new phase of growth under new leadership with renewed focus on the core brands. It the
world's 3rd largest food and beverage in Turkey with over 320 brands in 49 different
categories. UB is engaged in the manufacturing and the marketing of biscuits and snack food.
Strengths which it includes are
The biggest advantage of UB is its 100 years old history which makes it a trustworthy
brand in the world. There was a time when it was the only brand manufacturing and
supplying the biscuits of its own kind. Today England is well known in the world because of
its bakery based biscuits all the credit can be given to UB (Koos, 2011).
It is also very easily available in the market now the business is now spread all over
the world. As it is producing bakery based biscuit which is purely a non seasonal product i.e.
available in all seasons. It is having very well trained bakers with it which are well qualified
to make every possible product. Also, using good quality of raw materials and use of
technology is also growing in the industries. They are looking forward to new innovation in
the industries so that they can apply it. People of all the generation are liking the product as it
is very easy to digest. They are now also making health concise product which help you to be
5

fit and control the weight which are becoming more and more popular.
Weaknesses includes
The marketing and advertising of the products is costing much to company as it needs
to invest on the innovation of the machines of the company. Many new competitors are
arriving in the markets now which is gradually decreasing the company's sale. The serious
threads are the local bakers which are causing harm to the sales of the UB's product. The
market capitalisation of the company is about one third to that of Nestle. Its share value in the
market are now going down because of Nestle (Colciago and Etro, 2010). Before it was on
the top of the industries but now other companies are taking the market and they are doing
good. The profit are also decreasing which leads to lower profit margin higher risk that are
decline in sales will erase profits and result in a net loss or a negative margin. It is an
indicator of company's pricing strategies and how will it controls cost. So as compared to the
competitors its profit margin are also decreasing. An illegal strike of the workers of the New
Delhi factory on February 2013 lead to down fall of the sale of the company which was a
drawback on the company. Today as the general public prefer more healthy food so there was
some issue regarding the health in the processed food and they are more concern about this
(Levchenko, Lewis and Tesar, 2010).
P6 SWOT analysis of united Biscuits
This SWOT analysis of UB provide a full SWOT analysis of the company businesses
and operations. The profile show a comprehensive view of the company key strength and
weaknesses and the potential opportunities and threats.
S-Strengths are
The company is having about 100 years history which also make it a reliable company
in the market and in the customers eye also. Brand name is accepted across different
countries and across different generation. The food which it produce mainly include biscuits
which are a non seasonal and hence make it available through the year. Even in remote areas
the distribution network it very much strong it is available in almost every part of the world
(Bourne and et. al., 2013).
W-Weakness are
The company needs to invest highly in technological improvement and in advertising
and marketing. The market capitalisation of the company is about one third that of Nestle. An
illegal strike of the contract workers at New Delhi factory had a partial impact on the
6

business. It is having very low profit margin compared to competitors. There is always a
concern of the public with regards to consumption of processed food leading to heath issues
(Gropp, Hakenes, and Schnabel, 2011).
O-Opportunities are
Growth of Indian economy and improved lifestyle of Indians will provide opportunities for
products like Good Day Chunkies. Because of the engaged schedule of the working class
population they prefer these kinds of products which are easy to consume and are easily
available. They are also nowadays producing the products which before they were not
producing which include cakes and rusk (Feenstra, 2015).
T-Threats are
There are many small and local competitors who are offering lower price same
products. The raw materials which they use are becoming costlier now days so there Is a
problem with the purchasing of the raw material. Now almost all the cities of the world are
having their own small and local bakeries and dairies providing the same product that too in a
good quality as they mostly fresh. Besides these local bakeries some new domestic and
international players are also coming in the markets (Manova, 2013).
CONCLUSION
In the following report about the different types of enterprise we have leant about
public sector, private sector and the voluntary sector enterprise. And also about the top most
private sector company of United Kingdom i.e. United Biscuits. About UB's SWOT and
PESTLE analysis how company is using these analyses to increase the profit and decrease the
loss of the threads in the company.
7

REFERENCES
Books and Journals
Bourne, M and et. al., 2013. Generating organisational performance. The contributing effects
of performance measurement and human resource management practices.
International Journal of Operations & Production Management. 33(11/12). pp.
1599-1622.
Chor, D. and Manova, K., 2012. Off the cliff and back? Credit conditions and international
trade during the global financial crisis. Journal of international economics. 87(1). pp.
117-133.
Clifton, J. and Díaz‐Fuentes, D., 2010. EVALUATING EU POLICIES ON PUBLIC
SERVICES: A CITIZENS'PERSPECTIVE. Annals of Public and Cooperative
Economics. 81(2). pp. 281-311.
Colciago, A. and Etro, F., 2010. Endogenous market structures and the business
cycle. Economic Journal.120(549). p. 1201.
Eaton, J., Kortum, S. and Kramarz, F., 2011. An anatomy of international trade: Evidence
from French firms. Econometrica. 79(5). pp. 1453-1498.
Etro, F., 2011. Endogenous market structures and strategic trade policy. International
Economic Review. 52(1). pp. 63-84.
Feenstra, R.C., 2015. Advanced international trade: theory and evidence. Princeton
university press.
Gropp, R., Hakenes, H. and Schnabel, I., 2011. Competition, risk-shifting, and public bail-
out policies. Review of Financial Studies. 24(6). pp. 2084-2120.
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford
University Press, USA.
Koos, S., 2011. Varieties of environmental labelling, market structures, and sustainable
consumption across Europe: A comparative analysis of organizational and market
supply determinants of environmental-labelled goods. Journal of Consumer Policy.
34(1). pp.127-151.
Kubasek, N. K., Brennan, B. A. and Browne, M. N., 2016. The legal environment of
business: A critical thinking approach. Pearson.
Levchenko, A. A., Lewis, L. T. and Tesar, L. L., 2010. The collapse of international trade
during the 2008–09 crisis: in search of the smoking gun.IMF Economic
8

review. 58(2). pp. 214-253.
Manova, K., 2013. Credit constraints, heterogeneous firms, and international trade. The
Review of Economic Studies. 80(2). pp.711-744.
Wijaya, S. and et.al., 2011. Web 2.0-based webstrategies for three different types of
organizations. Computers in Human Behavior. 27(4). pp. 1399-1407.
Worthington, I. and Britton, C., 2015. The business environment. Pearson Education Limited.
Online
Functional and Divisional Organizational Structure 2017. [Online]. Available through:
<https://commerceatease.com/types-of-organisation-structure-functional-and-
divisional/>.
9