Organizational Structure and Function

The assignment provided focuses on organisational structure and function, covering various types such as public, private, and voluntary. It delves into how these structures work alongside legal frameworks. The impact of external and internal forces on organisations is also discussed in relation to their functions. This comprehensive overview aims to equip students with a thorough understanding of organisational dynamics.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
P1 Different type of organisations..............................................................................................1
P2 Size and scope of the range of different types of organisation..............................................3
P3 Different functions and their link with functions and organisational structure.....................4
P4 Impact of macro environment on organisation and their impact...........................................5
P5 Internal and external analysis ................................................................................................6
P6 Strength and weakness interrelated with external Macro Factors.........................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment is dynamic in nature it changes because of many factors. That can
be Micro and macro both in simple terms it can say that the surroundings in which companies
exist is business environment (Lee, Olson and Trimi, 2012). Type of the same is two: first is
micro which includes all the small level factors which reflect their impact on enterprise and
another is macro it includes factors like competitor, market condition, political factors and many
more. This report involves type of organisations like public, private and voluntary along with the
company’s is explained with their size like small, medium and large. Impact of various factors
on organisations is also highlighted and way of minimising their impact is discussed briefly.
Coco-cola Company is base of this report which is serving non-alcoholic beverages. Their drinks
are serving in more than 200 companies it is well known and popular brand.
TASK
P1 Different type of organisations
There are three types of organisations public, private and voluntary. Explanation of these
three is given below with their legal structure:-
Public sector: organisation engage in this is inhibited by national, state and local government.
Major purpose of establishing these are rendering services to the resident of that particular
country as an alternative of this such companies are non profit. Best instance of this is child
support agency which is introduced in 1993 on 5th April. Respective organisation provides their
offerings by the appeal of parents or guardians when they are not available in same city or if
there was an agreement. Fund which is blood for daily activities of business can be lift up by
contributions, funds, donations and gift given by citizens of respective country. Products
provided by them are public goods, value and necessary. Its legal structure is described below-
 Central government department: There is some organisation which is directly running by
the government of particular company (Rossi,Vrontis and Thrassou, 2012). It alienated in
state, local and regional sections so when several enterprises comes in these three then
managed by central government of department.
 Local authorities: This is a type of public supervision conventional at lowest tires
underneath state government. For the reason that in some states also have business which
is operating by legal authorities.
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Private sectors: private sector companies are those which are operate by the person who
started it. Main motive of introducing such enterprises is to earn money for raising standard of
themselves or also of their family members (Pham, Segers and Gijselaers, 2013). Coca-cola
Company is introduced in 1886 on 8th May. Several products is offering by them is diet coke,
caffeine free coca-cola, Zero sugar drinks many more. Same firm is working for earning wealth
for their wellbeing. Legal structure of this is explained at lower section:-
 Sole traders- the person who is running this business is individual both have their
separate legal entity. Which simply means company and its owner both are individual
with own identities. He/she is accountable for all the sufferers and liability as well
proprietor of all the income they are earning.
 Partnership- partnership is that when business is started by the investment of two or more
than two peoples. All have ratio of dividing profit and losses this is according to the
amount of capital they have invested for introducing business.
Voluntary Sector: such companies are non profit which is working for social welfare not
with the motive of generating revenues (Gharajedaghi, 2011). Apart from this it is dissimilar
from public and private sector enterprises Wellcome Trust is one of them it is voluntary
organisation of United Kingdom introduced in 1936. Founder of respective firm is Sir Henry
Wellcome they mostly spotlight on Biomedical Research. This is the biggest service supplier for
research and the respective is one of the largest in the world. Legal structure of Wellcome firm is
given below:-
 Trust- for working of business fund is blood without it there is no survival so in this
sector some trustees are there who gives money or it can be said as charity of welfare of
society. As well such organisations don’t have any members but only trustees and for
them deed is prepared this shows appointment and retirement.
 Unincorporated association- these are management committees of company or can also
call as council with them a establishment as well don’t have any detach categorize from
trustees.
 Others- community Interest Company, Royal charter bodies, co-operative society and
community benefit many more along with these.
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P2 Size and scope of the range of different types of organisation
Organisations are of different types and these can be classified on the basis of their size
like small, medium and large. Their explanation with help of example is explained below:-
Public Sector Company and its description: Child Support Agency is public sector
organisation which is introduced in 1991for care of children. Whose parents are not in same
country then they give responsibilities to CSA to take care of their son or daughter. Apart from
this it can be done when there is an agreement between guardian of kids and CS Agency. In
some situation if someone doesn’t have parents then government gives fund to the respective
company to taking care of health and safety of them. Moreover and those have their parents pay
same organisation for their services (Crane and Matten,2016). Mission, vision and value of same
is given below:-
 Mission- hiring most excellent people, Fund and resources through which support to
government is easy and bring latest idea, cost effective. So there will be positive
outcomes and provide better services to children and families to which they are joined.
 Vision- when families are spending money of CSA for their child then they have to do
fair practices with their customers and clients as well guide also if they require. Instead of
this assist father, mother and family member in achieving success.
 Values- customer focused, loyal, ethical, accountable and reliable.
 Size and scope – this organisation was introduced in 1991 as well CSA arrears
accumulated since 1993 was just only £3.8bn this was not changed between 2008 and
2011. On 1 Nov. 2008 child maintenance and enforcement commission take
responsibility for the management of child support agency. The same organisation is
providing their services in United Kingdom only. Their address is Brierley Hill DY5
1YL, UK.
CSA is executive agency of department for work and pensions and in this parents pay amount for
services they are grabbing. This is given in the situation when parents have divorce, marital
separation and annulment or can me many more reasons.
Private Sector- coca-cola is private sector industry they are offering several drinking
items. It is founded in 1886 on 8th May, founder of this company is John Pemberton. Serving
worldwide there are large number of employees working with same firm are 61,800
approximately. The sector in which coca-cola company involve is wide in and having many
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competitors in market. Many enterprises are entering in this industry with their innovative
products and services. Same firm is all the countries having their online sites also because some
customers of this respective business are not able to go store and purchase products.
 Mission- to serve better quality of products and services the are offering internationally.
Main motive of these is to satisfy customers by serving their goods in effective manner
because it assist in grabbing customers in beverages enterprises.
 Vision- offering best quality at minimum price then their competitors with something
different from others. Moreover main is to cover overall market. Satisfaction of buyers is
important for administration.
 Revenue information- according to data of 2017 total assets is US$87.896 billion, Equity
US$17.072 and net income is US$ 1.248.
 Size and Scope – coca cola is the company which is serving world wide. Founded in
1886 by John Pemberton. There are approximately 61800 employees currently working.
Headquarters is in Atlanat, Georgia, U.S., United States.
Voluntary Sector- This sector involves such companies which is for social welfare
which work with no motive of profit. Generally it can be said that they are non profit
organisation Wellcome trust is an firm work for welfare of society it is founded in 1936 and
founder of this organisation is Sir Henry Wellcome. Their main work is Research of Biomedical
as well only serving in United Kingdom. Respective business is described by Financial times
which is gives funds for non-governmental mainly for the purpose of research and it is largest in
world. Value of Wellcome trust is to improve health of their ever customers for whom they are
working (Welter and Smallbone, 2011). Uses their resources, fund, talent and energy in
appropriate way so they can carry out mission of enterprise.
 Vision- Same organisation vision is to attain surplus betterment in health of human
beings and animal for whom they are doing research.
 Mission- Wellcome trust companies mission is to provide such services to their clients so
they can bright their name in the field of biometrical research.
 Size and scope – Wellcome Trust is founded in 1936 as well founder is Sir Henry
Wellcome. They are serving in United Kingdom and overseas along with this currently
employees working are approximately 2,057. there website is www.wellcome.ac.uk.
Main motive of introducing this organisation is to providing Biomedical research.
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P3 Different functions and their link with functions and organisational structure
Food industry is wide having many companies which fulfil requirement of breverages
Coca-Cola is serving their drinking items overall the world. In same sectors there are some more
enterprises like Pepsi, Red Bull, Diet Coke, Fanta etc. organisation are of three types public,
private and voluntary these all are different from each other in nature and objectives. To
understand this let take an example: public companies charge minimum amount of the services
they are providing but private companies are with the motive of profit so they charge amount
including their profit margin. On the other hand, voluntary firms don't charge any amount
because they are for welfare of society. Thus, Coca-Cola is private company known by everyone
all over the world. Their motive is to become most famous in the whole countries they are
serving. This can be possible only when they satisfy customers with products serving by them by
maintaining quality.
Same enterprise functions is linked with its objectives and structure. In companies there
are so many department like finance, human resource, marketing and many more activities of all
these are different. Finance department take care of available funds and also if there is more
requirement to fulfil daily production or other activities need. Marketing department apply
several tool and techniques related to marketing and promotion so everyone know about the
product coca-cola is offering (Elliot,2011). Human resource is for taking care of employees
working in given organisation related to their wages, allowances and many more. All these work
together with the motive of achieving pre determined goal and objectives also for profit
maximisation.
Every administration have their stakeholders they can be external (suppliers, community
etc.) or internal (owners, workers and management) and are of two form primary these are inner
who is straight away entangled in the operation and decision making of company. Play critical
role in the prosperity of enterprise. On the other hand, secondary stakeholders are not that much
important and involved indirectly. Every type of holder have variety of need like profit, growth,
salary, quality of products serving by firm, clean and long term agreement, interest, deposit, tax,
donation, fair trade many more.
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P4 Impact of macro environment on organisation and their impact
Macro environment is related to economy and gives major impact on company when
these change. Moreover the international environment consider disposition in gross domestic
product (GDP), enlargement, employ, payment, and money and fiscal policy. Macro
environment is large in nature and when there is alteration this gives wide impact on operation of
company and necessitate day to day investigation. The macro environment is aggressively
affiliated to the communal work as conflict to the presentation of a single business sector.
Lower given is PESTLE of Coca-Cola company:-
 Political factors: when law of distribution drink which coca-cola is serving change that
problem occur and respective organisation have to do modification in their existing so
they can deliver products to customers. Factors that alter in political factors are
accounting, taxes, internal marketing. Apart from this main is labour law their
modification can give major impact on Coca-cola company (Reeves, Love and
Tillmanns, 2012).
 Economical Factor: same company is serving in approx hundred of countries and each
have their own different culture, customs, desires and taste. How respective firm can
manage all these when they create new flavour according to requirement of customers. It
can be related to competition also which is entry and exist of industries.
 Social factors: majorly coca-cola is distributing in cultured countries and fulfil demand
of customers (Cotter and Fritzsche,2014). For example in Japan they are serving 30
flavoured to appeal client, in china they are trying to do the same. But America's are
health conscious as per their preferences they launched Zero sugar drinks or diet coke.
 Technological factors: technologies are major factor when production is done with help
of latest machines then it is appropriate in quality and quantity. But this is expensive
when company need updation or implementation of technology. For example when
respective firm put name of their company on bottle then customers line up to that for
taking images of coca-cola. These images trended on internet or social media like
Facebook, watsapp help in social proof of organisation foe encouraging sales. But when
these gives major impact on day to day working of company and its to expensive work
also.
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 Legal factors: every company have their own laws and legislation which must be
followed by the companies who set up their business. If they are not following that rules
then government can charge some amount of money for this. They may be modify by
government and as per that organisation also have to make changes in their existing
policies and laws on which they are working.
 Environmental factors: environment factors includes water which is important for
production of beverages. Sometimes when climates change then it give major impact
entire activity of business. As per the modification in environmental factor enterprise
have to take care of all the factor as well implement such modification in company.
P5 Internal and external analysis
SWOT analysis of coca-cola company is given below:-
 Strength- as it is already discussed coca-cola is famous brand and they have highest brand
equity in 2011 as well most valuable enterprise it was valued approx 79.2 in 2011. don't
have too much competitor only Pepsi and both are largest firm in beverages. Although
marketing strategies they are using is finest because target client is youngster along with
this same administration have loyal customers (Van Vuuren, Roberts-Lombard and Van
Tonder,2012). Good distribution network because they are serving world wide.
 Weakness- Pepsi is its competitor, low product diversification compare to Pepsi because
Pepsi diverts their product and start dealing in snacks also like kurkure and lays. They are
not offering too much health beverages, sometimes faced problem related to water which
is necessary for production.
 Opportunities- coco-cola can diversify their products in food items also, developing
nation because people are health conscious so respective company is moving towards
healthy drinks. Can deal in packaged drinking water, have to do marketing of the product
which is less in demand (Zott, Amit and Massa,2011). Instead of this they can improve
their supply chain.
 Threats- raw material is not proper like water, there are some indirect competitor of coca-
cola like Starbucks, Costa Coffee and many more.
P6 Strength and weakness interrelated with external Macro Factors
Environment is full of competition factors involved internal and external both elements in it.
When there is modification in these it gives both negative and positive impact(Hair,2015). It
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gives impact on decision making of company as well internal and external both factors are
associated with each other. For instance- major strength of coca-cola is that they have highest
share value in market and equity as well. It is serving in several countries they must have to
follow all rules and regulation of respective nations in which they are serving their gods and
services. An fast modification in environmental aspects grouper managerial decisions.
 Economic Factors: it involves several factors like inflation, deflation, tax rate, foreign
direct investment in market and exchange rate as well (Low, Chen and Wu,2011). Coca-
coal is financially strong company they can easily overcome with these factors.
 Political and legal factors: respective firms is serving worldwide and every country
have their own law and legislation related to export and import which must be followed
by them. If their any variation then also it should have to be followed.
 Technological factors: this is most dynamic factor which require changes and when
latest technology is implemented it provide fine quality of products to their customers. If
there is lack of latest technology then company is not able to achieve their pre determined
goals and objectives. With assistance of latest equipment firm can introduced new
products in market.
 Environmental Factors: environment have its major impact on manufacturing of
product many of times coca-cola face lack of natural resources like water. Which is main
for production of beverages as well production should be done in such manner so their
will be no harm to natural resources.
So external factors is wide and give major impact on working of company. For minimising
negative impact and gaining positive factors company have to do PESTEl analysis which is
market research.
CONCLUSION
From the above mention assignment it has been concluded that business environment is
dynamic is nature. It is of two type micro and macro factors which give major impact on
activities of business that can be positive and negative. For minimising affect of these negative
elements organisations have to use several tools and techniques. Organisation is of three type’s
public, private and voluntary their working along with legal structure is explained. Impact of
external and internal forces is explained linked with function as well structure of organisation.
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REFERENCES
Books and Journals
Lee, S. M., Olson, D. L. and Trimi, S., 2012. Co-innovation: convergenomics, collaboration, and
co-creation for organizational values. Management Decision, 50(5), pp.817-831.
Rossi, M., Vrontis, D. and Thrassou, A., 2012. Wine business in a changing competitive
environment–strategic and financial choices of Campania wine firms. International
Journal of Business and Globalisation, 8(1), pp.112-130.
Pham, N. T., Segers, M. S. and Gijselaers, W. H., 2013. Effects of work environment on transfer
of training: empirical evidence from Master of Business Administration programs in
Vietnam. International Journal of Training and Development, 17(1), pp.1-19.
Gharajedaghi, J., 2011. Systems thinking: Managing chaos and complexity: A platform for
designing business architecture. Elsevier.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Welter, F. and Smallbone, D., 2011. Institutional perspectives on entrepreneurial behavior in
challenging environments. Journal of Small Business Management, 49(1), pp.107-125.
Elliot, S., 2011. Transdisciplinary perspectives on environmental sustainability: a resource base
and framework for IT-enabled business transformation. Mis quarterly, 35(1), pp.197-
236.
Cotter, R. V. and Fritzsche, D. J., 2014. The business policy game. Developments in Business
Simulation and Experiential Learning, 21.
Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future
research. Journal of management, 37(4), pp.1019-1042.
Hair, J. F., 2015. Essentials of business research methods. ME Sharpe.
Low, C., Chen, Y. and Wu, M., 2011. Understanding the determinants of cloud computing
adoption. Industrial management & data systems, 111(7), pp.1006-1023.
Van Vuuren, T., Roberts-Lombard, M. and Van Tonder, E., 2012. Customer satisfaction, trust
and commitment as predictors of customer loyalty within an optometric practice
environment. Southern African Business Review, 16(3), pp.81-96.
Reeves, M., Love, C. and Tillmanns, P., 2012. Your strategy needs a strategy. Harvard Business
Review, 90(9), pp.76-83.
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