Interrelationship between Organisational Functions and Structures

Unit 1

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
TASK 1............................................................................................................................................4
P1 Determining different types & purpose of organisations relating to public, private,
voluntary and legal structures.....................................................................................................4
P2 Size & scope of different types of organisation within chosen company context.................6
M1 Analysis of different organisation's structure, size and scope link with business objectives
.....................................................................................................................................................7
TASK 2............................................................................................................................................8
P3 Determining interrelationship between different organisational functions & their company
structure or objectives.................................................................................................................8
M2 Analysis of various advantages & disadvantages of organisational function
interrelationships and their impact on company structures.......................................................10
D1 Critical analysis on complexities of different type of business structures & their
interrelationship with variolous organisational functions.........................................................10
TASK 3..........................................................................................................................................11
P4 Identifying negative & positive impact of macro environment on business operations with
specific examples......................................................................................................................11
M3 Application of PESTLE model for detailed analysis of impacts of macro environment. 13
TASK 4..........................................................................................................................................13
P5 Conducting internal & external analysis of organisations for identifying their strengths and
weaknesses................................................................................................................................13
M4 Application of Swot/Tows analysis to justify influence of decision making within an
enterprise...................................................................................................................................14
P6 Interrelation of external macro factors with strengths & weaknesses of organisation........14
D2 Critical evaluation of macro & micro factors impact on business objectives & decisions. 15
CONCLUSION..............................................................................................................................15

INTRODUCTION
Business environment affects various forms of businesses and their structure in both
negative & positive way. These include both internal & external factors that are being analysed
by managers to know strengths & weaknesses of organisation such as Morrisons, a multinational
supermarket company with being fourth largest chain in United kingdom. Chosen firm has its
major products that are food or drinking beverages, clothing items, magazines & audio books
etc. with across more than 400 stores spread at various places. The below report mainly consist
of two major parts in which first part discusses about different functions & structure adopted
within organisation with interrelationships. Whereas second part describes about impact of
macro & micro environment of business operations.
MAIN BODY
TASK 1
P1 Determining different types & purpose of organisations relating to public, private, voluntary
and legal structures.
Organisations are of different types and therefore their functions are also related to
various sectors. Major sectors are voluntary, public and private sectors that determine actual
structure of organisation adopted by top management to carry out various operations
successfully. Some of important types of organisations with key advantages, disadvantages &
differences are mentioned in following points:
Sole trader/ proprietor organisations
This form of organisation is solely owned and managed by an individual who is owner of
organisation. Inventory of the company is maintained too under ownership of sole proprietor or
small group of individuals appointed by him. Sole proprietorship firm is a privately controlled
business firm having no such separate legal existence from it's sole proprietor owner (Perera and
et. al.,2017). These form of private entities incorporate under a trade name selected by single
proprietor of organisation. A very less capital requirement is needed in such small business start-
ups, therefore it has less burden of legal paperwork requirements in comparison with other type
of organisations. The owner of the firm is personally liable for various business activities such as
delay in payments. This form of enterprise are not working under control of government.

Legal structure: The structure of such organisation follow a hierarchy of top to bottom
structure with sole proprietor being only decision maker of all activities in business.
Objectives: Main objective behind starting up such businesses is fulfilment of consumer
requirement inn particular sector or domain through limited goods & services provided by sole
trader (Berghoff and Rome, 2017).
Sector:This type of organisation are mainly operates as a private business enterprise that
is owned by a single person & monitored by limited no. of shareholders, board directors of
organisation.
Partnership firms
A partnership firm is defined as involvement of more than two individuals as owners or
stakeholders business. Therefore such organisations prefer conducting a firm with two or more
individuals who are willing to distribute profits as per their shared capital contribution in
business ( Lam and Wong, 2018). Partners in a type of organisation share both profits & losses
together with also sharing certain responsibilities tat includes payment of machinery, paying off
axes according to their share of profits etc.
Legal structure: Depends on choice of function, departments & mutual consent of all
partners of firm to decide structure of organisation.
Objectives: Objective behind froing a Partnership exactly means building relationship
between individuals who are willing to conduct business activities top achieve a common goals
with objective or earning profits in future.
Private organisations
Private organisations majorly are businesses who are not under control of government of
country. The net revenues earned by chosen private firm that is Morrisons yearly was £513
million in year 2020 (Niemimaa and et. al., 2019). The individuals or sole owner who is liable
for firms liabilities & gaining profits are privately owning these enterprises. Also this entity has
has capacity to employ a huge number of people with current workforce being more than
100,000 staff for conducting daily business activities in retail sector.
Legal structure: Private type of organisation are owned or managed by board members,
limited number of shareholders or large parent companies not functioning under government
control.