Organizations and Business Structures

urgent

Unit 1

Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Types and purposes of organizations and their legal structure............................................................3
P2 Size and scope of organization...........................................................................................................4
M1 How size, structure and scope of organizations link to the business objectives.................................5
TASK 2.......................................................................................................................................................5
P3 Relationship between organizational functions..................................................................................5
M2 Advantages and disadvantages of interrelationships between organizational functions....................6
D1 Critical analysis of complexities of different types of business structures.........................................7
TASK 3.......................................................................................................................................................7
P4 Positive and negative impacts the macro environment has on business..............................................7
M3 PESTLE model to support macro environment analysis...................................................................9
TASK 4.......................................................................................................................................................9
P5 Internal and external analysis of organizations...................................................................................9
P6 Interrelation of strengths and weakness with external macro factors................................................10
M4 Apply SWOT analysis.....................................................................................................................12
D2 Evaluation of impact on business objectives....................................................................................12
CONCLUSION.........................................................................................................................................13
REFERENCES..........................................................................................................................................14

INTRODUCTION
Business environment is defined as the mixture of internal as well as external factors
which creates an influence on the companies operating situations. It involves employees,
suppliers, wholesalers, vendors and many more. In relation with internal business environment it
involves all the workers, vendors and people who are indulged into the development of goods
and services. In context with external business environment it is considered as a challenging and
difficult situation because there are many certain issues that occur like in terms of language
problems, weather issues and so on (Imbrogiano and Nichols, 2021). There are different tools
and techniques, through which organizations can assess business environment like SWOT
analysis, BCG matrix and so on. The below report is based on boohoo. It is UK based online
fashion Retail Company which was founded in year 2006 by Mahmud Kamani and Carol Kane.
The report includes types and purposes of organization, size and scope, relationship between
different organizational functions, positive and negative impact, internal and external analysis
and interrelation of strengths and weaknesses with external macro factors.
TASK 1
P1 Types and purposes of organizations and their legal structure
Organization refers to various units of audiences which is designed as well as prepared in
such a manner that all goals and objectives are achieved. There are various types of organizations
which are further been explained as below: -
Public organization: - It is implemented by government and all the decisions which are
needed to be taken are done by government officers as well as top level executives. The main
role is to provide various kinds of product and services at low rate. It is described as a self-
funding corporation that provides certain advantages to audiences and customers who buys it.
They perform their roles and duties through the gathering of all the taxes and provide all
products and services to society (Neștian and et.al, 2021). National health services is chosen as a
public organization whose main aim is to provide efficient level of services to all the people
instead of just focusing on earning profits.
Legal structure of public organization: -
 Central government: - In accordance with this the government is liable to make different
policies for whole nation so that all work is done by public departments in an organized
manner and also in proper sequence.
 State government: - In this the government initiates a policy and implements a code of
conduct which is monitored by all public companies who has their level of operations
inside the boundaries of state.
 Local government: - In terms of this the public organizations which works for small area
like cities or towns all laws are followed by local government.

Private organization: - As per the current situation all private organizations helps in
enhancing the economy of country. They are implemented by proprietors that roll their
organization and provide different products and services through which better profits can be
earned. The main purpose of organization is to earn large amount of profits for the business. In
relation with Boohoo they are operating the business around the world and are offering unique
products to all audiences.
Legal structure of private organization: -
 Sole proprietorship: - In relation with this responsibilities are on single person only and
with respect to this all the profits as well as losses that occur is hold by the owner only.
 Partnership: - There are two or more persons involved together to work and undertake
all the business activities. In context with this there are profits as well as certain risks
which provide support in doing expansion at international level (Krishnamurthy, 2020).
Business gets initiated on the basis of an agreement between all partners in which all the
roles and duties are clarified.
 Limited company: - It is considered as a structure in which businesses takes place within
different members. If any kind of loss is faced by the company then the responsible
person would be owner only as the amount is invested by them.
Voluntary organization: - In accordance with this development is done by different group of
people in which they all contribute their efforts so that specific goal can be achieved and various
benefits could be received. To follow a voluntary organization management department needs to
take approval from ruling government in which all business tasks need to be done. For example,
in context with Macmillian cancer support, it is one of the largest British charities group that
provides health care services and financial support to the people who are suffering from cancer.
Legal structure of voluntary organization: -
 Trust: - There are three components involved in voluntary organization and these are
society, trustees and donor (Bulturbayevich and et.al, 2020). It includes a lot of money so
in context with this trust and pledge provide a sequential procedure through which
various benefits are received.
P2 Size and scope of organization
 Private organization: - In relation with Boohoo it is a top online fashion retail
organization. Each company has assorted purpose through which their both size and
scope is unlike from voluntary and public organization. In context with Boohoo, they
developed their company size by enhancing the stores in different countries. Due to this
company is able to receive more profits through which they reached at good level in the

online retail sector. They have over 36000 products. With the help of cookies the
company provides best shopping experience and connect will all social networks.
 Public organization: - In accordance with these organizations they provide products and
services to overall societies. They need to provide and deliver all the products on large
scale. Through this satisfaction level of customers also get built up. In context with NHS
they provide their services in health sector (Liu, Wei and Xu, 2021). With respect to this
each person lives a healthy life and the reason behind this is that they provide all the
services at minimum cost. By taking an example of United Kingdom, they provide
different range of health care services and many more. There are various options
available in relation with scope as the workforce is working with single public
organization only. Besides this they also provide free health services to low segment
which ultimately defines the scope of a company.
 Voluntary organization: - In context with Macmillan cancer support it is the largest
British charities group which provides specialist health care services as well as financial
support. The main focus of organization is to reach and improve the lives of all the
people who have cancer. The organization also have a move more pack in which a cancer
booklet and physical activity is involved. With the help of booklet people get to know
about physical exercise which they should do and enhance the fitness level.
M1 How size, structure and scope of organizations link to the business objectives
The products and services of an organization have a direct link with its structure, size and
scope. In terms of organizational structure it is defined as certain activities in order to achieve
organization growth. In relation with Boohoo Company their main aim is to lead the fashion e-
commerce market around the globe and at the same point of time maintain amazing customer
proposition, god customer service and latest fashion clothing designs at great prices. They have
around 36000 products and are growing at large scale. The organization structure of company is
considered as functional. In relation with national health care services, their scope and structure
is linked to business objectives as they provide health care services and medical care to all the
people whether a person is rich or poor (Agyapong and Acquaah, 2021). It is the second largest
single payer health care system that improves the quality of life. In context with Macmillan
cancer support, it is the leading cancer care charity which offers cohesive products and services.
They provide financial, emotional and physical support. It is based on both divisional as well as
organizational structures.
TASK 2
P3 Relationship between organizational functions
In an organization there are different types of functions which help in achieving all goals
and objectives. It includes marketing, production, development and so on. In context with the
relationship it is been explained as below: -

 Marketing and production function: - In order to enable business organization for a long
period of time both marketing as well as production department is needed. In accordance
with the aspect of production company manufactures their goods and services for all
consumers and the marketing department does promotion of all those products. They also
help management in making certain forecasts about needs and wants of customers and
give the information to production department in relation with developing the products
and built up the level of customer satisfaction (Ismoilov and et.al, 2020). In relation with
Boohoo, all members of marketing department evaluate and predict about the demands of
consumers which is beneficial for whole production department. Through this products
get developed so that they can match up with all the objectives and in relation with
private organizations it is significant because the main objective is to earn profits only.
 Human resource and sale department: - To run an organization in an efficient way the
most important department is of human resource. To complete all tasks and activities
manpower executes all the efforts in the procedure of organization that ultimately helps
in achieving all the targets. In context with human resource management team they are
responsible to hire best candidates so that they can achieve success. With the help of all
the employees the value of company products and services also get increased. In context
with Boohoo, large number of employees is required as it’s an online fashion retail store.
It is considered as a best resource because through this only organization can reach at top
level. With respect to this the management system of Boohoo hires employees on the
basis of earning better competitive advantage and give best performance.
 Resource and development along with finance: - To expand a business in large sector
area the role of research department is crucial because they explore all kind of business
opportunities. To enable this they require huge amount of investment so that exact needs
and wants of consumers can be determined. Through finance department management is
able to determine exact amount which is required to find out the demand of customers. It
is the role and responsibility of finance team to provide all the economic assets in relation
with the different areas of company so that all business operations can be effectively
tackled. In accordance with Boohoo, they also had to face competition from all local and
international companies who need all the resources on regular basis. When all tasks and
activities get completed the manager of Boohoo is able to achieve the business objectives
and receive income by selling all products on online basis.
M2 Advantages and disadvantages of interrelationships between organizational functions
Advantages Disadvantages
Due to the interrelation between organizational
functions the team member work together
through which knowledge also get built up and
skills get enhanced ( Mesquita and Silva,
2021).
Due to segregation workers from different
teams does not get an opening to discuss their
perceptions which can lead to a risky situation
due to which a negative impact would be
created on the business development.

Employees stay for long period of time
because they get promotion on the basis of
different functions.
Due to lack of coordination the
interrelationship between the organizations
gets affected and the reason behind it is that
there is no standard mode of communication.
The team is managed by experienced people
who have high level of skills and abilities.
Many arguments and conflict get occur in
context with all the differences over certain
objectives and budgetary competition.
Organization involves a sales department so if there is a good interrelation between both
marketing as well as sales department then the communication to marketing officials can be
implemented. It is an advantage because market strategies would be made in a better way. If
there is a good connection between research and development departments then the feedback
from all the customers can be communicated and would build up an innovation in products of the
brand.
D1 Critical analysis of complexities of different types of business structures
 Complexity in public sector firm: - In comparison with another business they have to
face more complexity and it is to satisfy the stakeholder in public sector organizations. In
today’s world it is difficult to manage the customers demand because it gets changed very
quickly.
 Complexity in private organizations: - These companies have to manage everything by
their own only (Pavlykivska, Marushchak and Oleksandra, 2020). The profit and loss all
depends on the way they work. The biggest issue which is considered is to manage
finance. The government executed many rules and regulations which is difficult for
private sectors to follow. Besides this diversification is also very low in the firms.
 Complexity in voluntary organization: - These companies main aim is for social purpose
and the main problem is internal control. All the trustees should be good and the reason
behind it is that the success of company lies in the hands of trustees only. There are
certain other complexities also like risk management, proper documentation and many
more.
TASK 3
P4 Positive and negative impacts the macro environment has on business
Macro environment is mainly concerned with regard to all the external factors which
create a direct and indirect impact on the working of a company. Due to this it becomes difficult
for an organization to control all the external factors in an efficient way so the focus should
always be on properly evaluating all the factors so that negative impacts can get reduced. In
context with Boohoo it is been explained as below: -

 Political factors: - In context with Boohoo, the high political stability provides a constant
and responsive business environment with regards to all market growth trends. As per the
current situation it provides the services in many countries and each one has their own
political issues. Due to the occurrence of instabilities in the global political environment
it direct affects the industry growth. Due to the quick changes in the policies of
government business performance gets affected in a negative way and ultimately leads to
uncertainty. It is significant for Boohoo also to look upon all the recent trends in the
political scenario (Dzwigol, Dzwigol-Baros and Kwilinski, 2020). Besides this, through
close collaboration with other groups the ability of Boohoo Company gets enhanced and
is able to achieve all goals and objectives.
 Economic factors: - It is significant for Boohoo to properly understand about all the
economic factors like in relation with inflation, saving rates and so on. The GDP growth
rate will assess the ability in order to pursue all long term growth strategies. When in a
marketplace there is high level of unemployment then the availability of surplus labor
would be lower wages and due to the company production cost would also be less.
Besides this, company should properly determine interest rate and the influence towards
investment. So, with respect to this the high interest rate will increase growth
opportunities of company. The expansion strategies of Boohoo are influenced by the
financial market through which their ability to enter into markets got more developed.
 Social factors: - Due to changes in certain demographic factors like socio-economic
variables they have the importance for company also so through this they should choose a
correct market segment with high growth. Due to the developed usage of social media
online shopping is very much encouraged this was beneficial for company also. So,
Boohoo should consider all the differences regarding customer demands. They should
spend more time in understanding about social trends that define the consumption
behavior.
 Technological factors: - Due to the development of communication technologies it was
beneficial for Boohoo because it enhanced their collaboration level with all customers.
So, it was an opportunity for them to start implementing certain social media campaigns
to stay ahead of all the competitors (Lo and et.al, 2021). All research and development
activities are very much important so company should invest in disruptive technologies in
order to enhance all the profits. Through online operations the potential level of company
got developed.
 Legal factors: - There are certain strict rules and regulations imposed by the government
so Boohoo Company should follow all laws in order to assure labor safety. As the biggest
issue is with respect to data protection so there are certain laws to set everything and
protect customers from all fraud market. When legislation imposed a new tax on
advertising the products Boohoo accepted it by creating certain changes on all their
online products.
 Environmental factors: - Due to the changes in weather conditions it creates an impact
on business efficiency also. Due to this consumers spending patterns also get changed

and Boohoo need to modify their marketing strategies. As there is a trend of eco-friendly
products the companies take it as an opportunity to adopt green business practices.
Besides this there is a negative impact also as due to high resource depletion Boohoo can
create undesirable responses from media and all the audiences.
M3 PESTLE model to support macro environment analysis
Political It helps in providing stability to Boohoo
Company and the political environment
supports all exports and imports in efficient
way.
Economic If all economic factors are positive then it will
create an influence on increasing productivity
level.
Social It helps in the diversification of products and
services in the best possible way (Yu, 2020).
Technological Due to the usage of new technologies business
efficiency gets developed. Besides this it also
increases cost and complexity level.
Legal It is necessary to follow all laws imposed by
the government as it will create good
impression but at the same point of time it is
time consuming.
Environmental They will use eco-friendly products and all
renewable resources.
TASK 4
P5 Internal and external analysis of organizations
It is significant for company to have identification of all the strengths and weakness and
through this Boohoo Company would be able to stay ahead of competition. To determine the
internal and external factor SWOT analysis is used which is been explained as below: -
Strengths: -
 The company has a strong distribution network and through this it enables them to
respond immediately on all demands of customers and smooth deliveries of product is
done.
 It has maintained focus on all the customers as satisfaction of audiences is set to be a top
priority (Elmo and et.al, 2020). It allowed the company in performing the operations
effectively and also built up customer loyalty.

 Boohoo Company also maintained a good leadership position in fashion retail industry
and also enhanced competitive advantage.
Weakness: -
 The company has faced reduced liquidity position which created a difficult situation for
them in carrying out all business operations.
 The organizational structure of company is only attuned with present business model due
to which there is lack of expansion.
 There are certain gaps which occurred in the range of all products that are being sold by
the company.
Opportunities: -
 The influence of new technologies creates an opportunity for company in context with
differentiated pricing strategy in new marketplace. It will also help them in maintaining
customer loyalty with effective services.
 Due to the new trends in consumer behavior they can open up a new market for company
through which Boohoo can build up effective revenue systems and provide new unique
products also.
Threats: -
 The biggest threat for company was currency fluctuations. As the company is operating
in different countries they face a difficulty in managing the political climate.
 The growing development and strengths of local stores is a threat for them because they
are paying high margins than those companies (Elf, Isham and Gatersleben, 2021).
P6 Interrelation of strengths and weakness with external macro factors
The strength and weaknesses are interconnected with overall macro factors full stop in
any organization if it is raising growth and successful in knowing then it would be able to better
making decisions in order to achieve all goals and objectives. Relation of macro factors with
strength and weaknesses is been elaborate as below:
Political factor: - According to this relation the trade rule and enforced by the government of the
country. The political factor is having the main strength in context of Boohoo company that they
doing the business operation on various segment within the world that has no stronger customer
base but the weaknesses of political factors that if a business is limited to the boundary region of
a country then they could not any unable to help that particular business.

Economical: - On the basis of this factor it emphasizes actual financial position as well as the
performance of economy growth in behalf of company performance. The main strength of
economic factors that supply and demand and other business opportunities investment rates can
be a positive factor of Boohoo Company. They are doing their businesses and accept the
innovation changes in order to improve the customer experiences. The weaknesses of an
economic factor is that they are facing high turnover as well as upset is that enhance low
employee satisfaction. Apart from some negative outcomes also like inflation and recession is
are uncertain factor it can be race due to lack of investment and not having proper growth in
economy.
Social: - In the organization it is a successful implementation of product and services by entitled
all the beliefs and values customer through which they are able to gain high strength. On the
other hand the customer was also facing certain health issues which became necessary to
establish Strategies and various plans ( Biswas, 2021). The strength of social factor can be
considered as approaching better product and services terms of demographic factors such as age
gender income factor and so on. The income can be generated on the way of attracting more
customers effectively.
Technological: - .In this relation with the Best Technologies that enhanced by economy. The
major strength of Technology factor provides Innovation and ideas in which country like Boohoo
can growth the businesses into online shopping and other form of business. On other hand the
weaknesses can be calculated unable to provide security all the customers in terms of data
privacy and contain all types of information audiences in which the processes of organization
getting affected on negative way.
Environment: - There are different methods which is taken by company to save an consider the
environment in which involves making plan for recycling and risk in plastic materials and
implemented delivery place which would be safe use as well as energy. This is can be strength of
environmental factor for Boohoo Company. Apart from at the weaknesses relation with external
environment which main involves more challenges or risk that ultimately creates difficult
situation for business growth.

Legal: - On the basis of Boohoo Company it was unable to make plans as per the right of
workers in an organization stop it means that there is proper benefits and salary was not given to
employees and they were resigning from their jobs. Boohoo need to concern for their
employment law that they must apply payment of bonus right of employees and certain
regulations which has to create their work process in systematic manner. This can be strength
and provide positive outcomes. The weaknesses can be e legal factor of Boohoo company e
without employment law there would be there would be less employee retention with no growth.
Evaluation
From the above analyzation of pastel strength and weaknesses is able to make better decisions in
order to control over all work challenges and benefits. For the company consideration Boohoo is
highlighted where they would achieve some external and internal sort of outcomes effectively.
M4 Apply SWOT analysis
Strengths Weakness Opportunities Threats
Boohoo provides
unique products and
services to all the
customers and
enhances customer
satisfaction as well as
loyalty.
Due to high level of
rules and regulations
huge cost gets
incurred and as an
online fashion retail
market there is large
number of
competitors also
(Prayag, Ozanne, and
de Vries, 2020).
Due to maximum
number of customers
it is an opportunity for
Boohoo to apply more
efforts on efficient
management.
The business is facing
high competition in
the marketplace.
D2 Evaluation of impact on business objectives
In relation with suppliers business gets affected because by maintaining the quality of
raw materials is all dependent on the trust of suppliers. In terms of competitors the organizations
has to be aware of what competitors are there in the marketplace and in accordance with that
build up some market strategies ( Harel, Schwartz and Kaufmann, 2020). In context with macro
factors the company should come up with advanced technologies because through that only they
will be able to survive in the market place.

CONCLUSION
From the above report it has been concluded that proper business analyzation is very
much important. The company should make certain plans in order to achieve profits and control
business environment. There are different types of organizations like private, voluntary and
public and all have their own plans and strategies.

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