Comparative Analysis of Business Structures, Sizes, and Objectives

This report provides a comprehensive analysis of different business types, including service, manufacturing, and trading. It categorizes businesses into for-profit organizations, not-for-profit organizations, and NGOs, highlighting their objectives and operational models. The report delves into the organizational functions, differentiating between front-office and back-office functions and their respective roles. It further examines the structure, size, and scope of businesses, using examples like EY, SUI NORTHERN GAS, and the Edhi Foundation to illustrate key concepts. The report compares and contrasts these organizations, focusing on their objectives, services, and management structures, including organizational hierarchies. It also discusses the advantages and disadvantages of different organizational functions and their relationships, providing a detailed understanding of the business environment. This report is a valuable resource for students seeking to understand business operations and structures.

TASK 1
BUSINESS AND BUSINESS ENVIRONMENT
BUSINESS: The word Business is derived from the word “BUSY”, so we can say that any legal activity to
earn profit is called Business. A Business can be an organization where people work together and
generate revenue for that organization. The world has 190 million Companies. A huge number of
organizations and business visionaries are enrolled every day everywhere throughout the world. Just
China day by day checks around 11-13 a great many new organizations and complete number of the
enlisted organizations in this nation surpasses 77 million.
Types of businesses:
There are basically three main types of Businesses.
1-Services:
Any Business which specialize in giving services to people is called services Business such as EY. Their
specific job is to, give prime and supreme consultation to their clients in regards to audit and taxation.
2-Manufactures:
This type of business usually referred to as an organization which not only provide tangible things but
also manufacture them as well. First of all they identify the need of the market/people and according to
the need of their client they manufacture the products and then deliver, supply or sell to them. Such as
Junaid Jamshed or we can also call it J.(dot). Their specific job is to first of all analyze the need demand
and fashion trend of the people. They specialize in Ladies gents and kids clothing, perfumes and body
sprays for both species. They manufacture the products themselves and then sell them to the market.
3-Trading:
If a business or an organization purchases the items or products for resell purpose, then it will be
considered as trading for example Shaheen Chemist. These businesses normally purchase the products
and sell them by keeping their cut. For them, firstly they invest to purchase items and then they put the
price label and resell them.
Now if we talk categorically normally there are three main categories of businesses which differentiate
them from each other. First category of Business is “FOR PROFIT ORGANIZATIONS”. These type of
businesses normally run by private sector to earn money and profit with the help of their services such
as EY. Whatever they sell, their cause has always to earn profit. EY is one of the enormous four firms
which give advisory, affirmation, assessment and exchange administrations to their customers.
The Second main category of business is “NOT FOR PROFIT ORGANIZATIONS”, these kind of
businesses or organizations normally run by government of that country and their cause and objective is
to make the lives of their citizens easier by giving them ease and comfort and also by giving them peace
of mind. And most of the times we see that they provide services nationwide such as, SUI NORTHREN
GAS. Their main goal is to serviced people not just to earn from the people. Whatever they charge for
the people they will invest in order to increase the quality of service which they’re providing.

As everyone knows that if a person is doing any business he must be after profit but sometimes we see
that some businesses not just focus on profit but they focus on the betterment of people or their motto
is to add value to the lives of people. Third category is about “NGO’s” A very famous NGO EDHI
FOUNDATION, they are an organization but their focus is always to prioritize the needy and deserving
and homeless people. Within excess of 1,800 ambulances positioned across Pakistan, the Edhi
Foundation is Pakistan's biggest government assistance association. In 1997, the establishment entered
the Guinness World Records as the "biggest volunteer rescue vehicle association.
We can estimate the worth and goodwill of any business with the help of its size. The broadly
acknowledged meaning of every business size grouping depends on the quantity of workers and yearly
income – and even those order extents can differ. So if a business has 1-9 employees it would be
considered as Micro business. If a business is having 10 to 49 employees then it would be considered as
small. And we consider a business to be a medium size if it has 50 to 249 employees in it. And of an
organization is having more than 250 employees then it will be called Large enterprises. So point being is
that businesses can be of different sizes depends upon their strength of hierarchy.
A Business or organization can be of different level according to their worth and goodwill. But it takes
time to increase the credibility and worth of business by giving supreme and prime services to their
customers and consumers. If an organization is operating domestically in an area or just in a city with
limited facilities or services, then it would be a local business. Only few people know about it.
Then if a business has multiple branches within the country, we can say that this business is running
nationwide such as SUI NORTHEREN GAS, they facilitate the country fellows with prime and supreme
quality gas which they can use at their homes. It is a Public limited Company headquartered in Lahore,
Pakistan. They serve in Punjab, KPK, Azad Kashmir and Islamabad. It has over 5.3 million consumers from
Pakistan. It is also a large enterprise.

Now International business refers to such an organization which has multiple branches around the globe
not only within a country or city such as Ernst & Young also known as E-Y. It is a global help firm
headquartered in London United Kingdom. It is viewed as one of the enormous four bookkeeping firms
and it give administrations, for example, charge, affirmation, review and warning administrations to
their customers. It is a large enterprise because it has 270,000 employees (2019). EY is Limited Liability
Partnership Company because the members of EY have different legal structures.
Presently we will dissect how the structure, size and extent of these three associations connect to their
business goals and the items or administrations which they're advertising. We’re going to compare and
contrast all three organizations with each other which we’ve selected in terms of their size scope
objective and the services.
As we know that EY is Limited Liability Partnership Company whereas SUI NORTHEREN is Public limited
Organization and Edhi foundation is a nonprofit social welfare organization which entirely run with the
help of volunteers. EY has 270,000 workers with in excess of 700 workplaces in 150 nations so it comes
in the classification of enormous endeavor and International level Business. Sui Northern is also a large
enterprise because it has more than 250 employees but it works nationwide so we can’t say that it is an
international level business or organization. If we talk about Edhi foundation, as we’ve already discussed
that it is purely Non-profit organization which works on volunteers. It has around 2000 workers so it is
also a large enterprise and it works nationwide with headquartered in Karachi. If we talk about their
objectives, EY's goal is building a superior working world. The prime and incomparable quality

administrations which they're giving, causes them to fabricate trust and trust in the capital markets and
in the economies worldwide and what they accept is that a superior working world is one where
financial development is maintainable and comprehensive. The objective of Sui Northern is to facilitate
people with good quality gas service at their homes. Its objective isn’t to earn profit. But EY’s objective is
to earn profit as well. On the other hand Edhi’s aim and objective is to help the needy deserving and
poor people of Pakistan with zero profit. If we talk about their services one by one so EY offers
professional services such as audit, tax, advisory services and assurance. Sui Northern provides Sui Gas
facilities to the public of Pakistan as it is a government organization. Edhi services includes 24 hours
Ambulance service, Health care services, shelters for homeless people, emergency services for orphans,
handicapped people, hospital and childcare services. So point being is that all three organizations varies
from one another in regards to services, objectives and scope. If we talk about their management so in
case of EY as it is a private company furthermore, it has a solid worldwide initiative group that sets one
single technique and motivation. To guarantee that their association is working effectively and
impeccably they've sorted out their legitimate substances into 28 correspondingly estimated specialty
units as far as the two individuals and income. They've gathered all these specialty units into four
geographic zones.
1- America
2- Asian region
3- European countries as well as Japan and Africa
Every specialty unit's administration group works legitimately with their Area and worldwide pioneers to
guarantee faultless execution. This structure is smoothed out – it permits them to settle on choices
rapidly, and guarantees that they execute their technique and give high-caliber and incomparable
administrations to their customers around the globe. Now I am going to share EY’s organizational
Hierarchy which operates locally within a country.

The above mentioned picture shows the organizational hierarchy of EY for a country. This organization is
leading by country’s managing director and from there step by step all the positions and designations
are mentioned that how they deliver the order and how it works from top to bottom. It has a complex
business structure because it is a high scale enterprise. Secondly if we talk about Sui Northern gas it is
directly managed by government of Pakistan because it is a non-profit organization and it works in
Islamabad KPK Punjab and Azad Kashmir. There’s a board of directors who manages all the positions and
designations around Pakistan.

You can see that this organization is controlled and managed by board of directors and their
responsibilities towards the betterment and empowerment to this organization. If we talk about Edhi
foundation, the founder of this organization was Abdul Sattar Edhi(late). He started off this organization
in 1951 from Karachi as a dispensary and then he built his first welfare center in 1957 and then Edhi
trust. It has grown to 300 centers around Pakistan and just in Karachi it has 8 running hospitals. It has 6
zonal offices and every zonal office is under the director of that office. Then there’re deputy directors
and managers who rules the zonal offices and these zonal offices are links to those 300 centers in
Pakistan. Every center has its own center head and then there are several teams and committees who
have given certain task according to the need and demand of society.
Organizational Functions:
An authoritative or business work is a center approach or procedure or bundle of exercises did inside a
division of any organization. For instance Human Resource division manages recruiting, recruiting, firing
or administration functions. Operations deals with the workforce, sales, and revenue of organization.
Finance has to deal with all the salaries, expenses, profit and losses, depreciation, tax, EOBI funds, pety
cash, Budget and many other matters related to finances of the company. Marketing department deals
with the advertisement or marketing of both company and its products or services in order to gain
publicity and popularity. Customer support department is always there for prime and supreme support
to their clients. Their main objective is to upsell or retain the clients as well. And warehouse

department’s duty is to keep an eye on both demand and supply of their products and to keep balance
in inventory and to make sure that there’s no run short of Inventory.
Now let’s move one step ahead and discuss different types of organizational functions, their
relationships and advantages or disadvantages of their relationships. First of all we need to know about
those organizational functions that incurs within the organization. There are mainly two types of
organizational functions.
1- Front-office Functions &
2- Back-office functions.
Front-office functions involve functions that has direct dealing with the clients, market place, or
suppliers. Such as marketing, Customer support, Sales. Because they have to face the market, clients,
customers and suppliers.
Back office functions are normally considered to be those functions that deals with the internal matters
of the organization. Such as HR, Finance, and warehouse. They help front end office functions with
smooth and streamline activities.
RELATIONSHIP BETWEEN BOTH FUNCTIONS:
At this point we have to know the relationship between both Front and back end office functions. As far
as I have searched or believe that there’s a strong bond between front and back end functions. In fact
they can’t work without mutual collaboration. Back end functions help and support and manage all the
implementation and work environment, where people work together so they make sure that they’re
providing not good but best environment to the people. They help Front end functions to execute
smoothly. For example if we talk about Marketing and Finance department, Marketing is a front end
function and finance is back end function. Now if there’s a vacancy available or there’s a new product to
be launched or any promotion which has to be shown up to people, marketing department will make an
advert or marketing campaign and then they’ll launch it but they will need fund or marketing budget to
utilize into the marketing campaign so they need to ask for the budget to finance department. Same in
the case of Operation and HR, if there’s any problem come up either with the employee or staff or even
with the manager, they will have to consult or check with the HR department. Same goes with the Sales
and warehouse departments. If there’s a customer who ask for a specific product in bulk, or if someone
order anything sales department will have to ask warehouse department whether they have that much
amount of inventory or not. So point being is that both functions are strongly interrelate with each other
for the smooth and perfect execution of employer’s goals.
ADVANTAGES OF RELATIONSHIP BETWEEN BOTH
FUNCTIONS:
There are more benefits and less disadvantages of the relationship between both front end and back
end office functions. If we talk about advantages:
 It helps an organization in regards to a pure, transparent and streamline work system.
 It also help colleagues to communicate with each other.
 Because of this relationship workers and co-workers learn from each other’s experience.

 It gives a friendly environment and empowerment to the hierarchy up to the grass root level.
 This relationship encourages and keep the employees motivated.
DISADVANTAGES OF RELATIONSHIP BETWEEN BOTH
FUNCTIONS:
There are few disadvantages of this relationship as well such as
 Back office functions are very important be that as it may, they will in general get less open
acknowledgment.
 Pressure at some point exists in organizations where bolster capacities get less spending plans and
manage steady control measures.
 Troughs in back office capacities protect the worth their groups give inside to make sure about fair
pay and satisfactory subsidizing.
 It causes a lot of wastage of time when a manager has to make decision upon getting permission or
verification from the higher authorities.
 It also effects worker’s empowerment and demotivation and also they don’t get that much
exposure.
ORGANIZATIONAL STRUCTURE:
In this global world where we see different types of organizations, we also get a chance to see how the
organization is working and on which pattern they’re adopting for smooth execution. Organizational
structure means a set pattern of carefully planned strategies that are being followed in any organization
for streamline execution. It is a fully managed methodology that help the employers in getting ease of
doing business. Now if we get into more details of any organizational structure we come to know that
management experts use six fundamental components of hierarchical structure as follows
 Departmentalization.
 Chain of command.
 Span of control.
 Centralization.
 Decentralization.
 Work specialization &
 The Degree of Formalization.
From now onwards we’re going to discuss some of the organizational structures and we’ll see which one
is being followed by one of our selected organizations. Organizational structures includes:
 Functional.
 Divisional.
 Regional.
 Matrix &
 Customer.

Let’s get into more details about some of the structures.
A- Regional: If an organization or business plans to expand or scale itself up to one extra level or
if they plan to start a new branch or franchise on national or international level, then they adopt
this regional structure. For example if we talk about EY, it was started off from London UK and
now it has expanded to 150 countries with 700 offices around the world. They are using regional
structure that is why they’ve divided their organization into four different regions. Such as
America, Asia-pacific region, Europe middles east and African region and Japan.
B- Functional:
This type of is mostly use by every other organization nowadays. It is a flowchart which shows
every position and designation from top to bottom. Such as Executive at the top, then middle
managers and so on and so forth. Sui Northern is also using this type of structure, although it is a
government organization but each and every position and designation is in the proper order
such as from Board of directors to lower level employees. Everyone’s duty and responsibility to
the betterment and good cause of the organization is crystal clear. This type of structure helps
employers with crystal clear, prime and supreme command.
C- Divisional:
A variant of the functional structure is the Divisional structure, which is designed for just larger
companies. Again this is a flowchart in which a group of the highest ranks sit at the top, while
different services or products are separated into mini units or companies. EY is also using this
structure, like I explained above that they’re working in 150 countries with 700 offices and
regions that’s why they’re using this structure. They’re offering different services to different
clients such as tax, advisory, insurance, and audit.
TASK 2
BUSINESS ENVIRONMENT:
Sum of all internal and external factors like workers, suppliers, supply, clients or customers,
management, market trends, economic and geographical or climate changes, employers, and activities
by government is called Business environment.
When we categorize the business environment we come to know that there are two types of Business
environments
1- Internal Environment:
Internal environment includes those factors that plays important role for the betterment of
organization while working within the organization such as HR, Value system, Vision mission and
objective, physical resources and technological capabilities, organizational culture, policies and
corporate culture.

2- External Environment:
External environment is sub divided into two main sub-categories.
 Micro Environment:
Micro Environment of a business or organization mainly depends upon those factors which
are manageable or controlled by the management of that organization for example,
contenders, providers, open, advertising go-betweens, workers and their association.
Typically small scale condition doesn't influence all the organizations similarly in view of the
limit, extension and sizes of the organizations.
 Macro Environment: Macro environment of an association comprises of those
elements which are uncontrolled by the administration and that can effect organization’s
decision making, its performance and plans. These factors indirectly effect organization’s
operation. It includes Political, Environmental, Social, Technological, Legal, and Economical.

Positive Impacts of Macro Environment on Businesses:
Any business is directly get effected from the macro environment because these are such factors which
cannot be controlled by the organization. But in this global world as technology and economy is
increasing day by day so they are making sure that they affect every business positively because by
doing so eventually the economy of that country would increase and a lot of people will get
opportunities. If we talk about Political factors, generally a government is a political institution but it has
a social purpose as well. It provides different methods of expanding social benefits and eliminating social
important role and effect the business because if the country is rich in economy it gives opportunities to
businesses so that they can work more efficiently. Many companies can get loans from that government.
If we talk technologically, many businesses rely on technology, if a country is expanding technologically
then it can provide good services and opportunities to businesses. Now legal factors also have positive
impact on businesses because we know that a business cannot run without any approval of legal
authorities so if with the help of legal factors, businesses can register themselves and can get ease of
doing business in that area. Social variables comprises of individuals or buyers. They buy items
dependent on a wide range of components. This incorporates segment position, societal position, and
way of life masteries.
Negative Impacts of Macro Environment on Businesses:
The legal and political factors can create hurdle for a business in regards to tax deduction or in opening a
new branch. Also, if the government changes polices and rules and regulations in a different way, it can
cause damage to the businesses. If the taste of people gets changed, it could cause problem for the
business and it comes in social factor. Technologically if a country isn’t advanced in technology then it
will affect every business badly due to bad technology. Economy also affect businesses badly, like if the
country’s economy isn’t that good then it won’t be able to give loans to businesses for their execution or
operations.
Pestle Analysis:
PESTLE examination is an apparatus that was structured by Professor Francis Aguilar of Harvard to lead
brief outside investigation of a business domain of any association for which information is accessible.
PESTLE is a blend of different variables that influence EY as well as the whole business. More or less
these components are in particular Political, Economic, Social, Technological, Environmental and Legal.
PESTLE investigation gives important insights concerning the working difficulties that any organization in
the business may look in future. Now step by step we’re going to discuss these factors that can affect EY.
1- Political Factors that Impact EY: To appropriately assess the degree of the general
deliberate political hazard that EY might be presented to, the accompanying elements ought to
be considered before participating in any ventures:
 The level of political strength that the nation has as of late.
 The respectability of the legislators and their probability to participate in demonstrations of
defilement, as the outcome may prompt potential acquiescence’s of significant level
government representatives

 An elevated level of tax assessment would demotivate organizations like EY from growing
their benefits.
 A low the lowest pay permitted by law or pay would bring about higher benefits and, along
these lines, higher odds of endurance for EY.
 The danger of military assault by foe nations may cause divestment from adventures and
tasks.
 As now Pakistan’s government is focusing over tax deduction and proper rules and
regulation so it will be a good opportunity for EY to work with Pakistani government in
regards to audit and tax and advisory for the big national sectors.
2- Economic factors that affect EY: The monetary variables that EY might be influenced
from, and thus ought to consider before contributing may incorporate the accompanying:
 The financial framework that is as of now operational or being followed in the area or nation
being referred to whether it is an imposing business model, or something like an ideal rivalry
monetary framework.
 The expansion pace of GDP in the nation will influence how rapidly EY is required to develop
sooner rather than later.
 The loan fees in the nation would influence how much individuals are happy to acquire and
contribute. Higher rates and proportion would bring about more noteworthy ventures that
would mean more development for EY.
 An elevated level of joblessness in the nation would result a more prominent stockpile of
occupations than request or need, it implies individuals would work for a lower pay or pay,
which would bit by bit bring down the expenses of EY.
 The cash conversion scale of the nation EY works in would affect the benefit of EY,
particularly if EY works in worldwide exchange. The soundness of the cash is likewise
significant a flimsy money debilitates or make the worldwide financial specialists
uninterested.
 Due to CPEC numerous huge brands and organizations are moving to Pakistan for
speculation, so it would be a distinct advantage open door for EY to work for additional
customers.
3- Social factors that affect EY: The social factors that sway EY and ought to be
remembered for the social part of the PESTEL investigation incorporate the accompanying:
 EY should be totally mindful of what wellbeing measures, responses to badgering cases and
significance of natural insurance are there in the business all in all, and in this manner are
normal from any organization as they are viewed of course.
 The class dispersion between the populaces is particularly vital or significant. EY would be
neglected to advance or acquaint a great item with the overall population if most of the
individuals was a lower level; rather, they would need to depend on very specialty
showcasing.
 The socioeconomics of the individuals, which means their ages and sexual orientations,
extraordinarily sway whether a specific item or administration might be promoted to them.
Beautifiers is generally taken into account ladies, so focusing on a for the most part male
populace would be less populace than focusing on a populace that is lion's share female.