Business Organization Structures and Macro-Environmental Factors

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BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION......................................................................................................................................................... 3
LO1................................................................................................................................................................................... 4
LO2................................................................................................................................................................................... 9
LO3................................................................................................................................................................................ 12
LO4................................................................................................................................................................................ 16
CONCLUSION............................................................................................................................................................. 19
REFERENCES............................................................................................................................................................ 20

INTRODUCTION
Business and business environment refers to the study which helps managers of the
organization to identify various external and internal factors affecting the business activity
or process of the business. The identification of external and internal factors that affects
business activity can be assessed through external analysis and internal analysis of the
business organization (Chang, 2016). The assignment report divided into 2 parts where 1st
part shows the various types of business organization and their differentiation of them
according to their size, scope and purpose and various functions of Bairstow Eves and
interrelation of with each other as well as with organizational structure. The second part of
the assignment presents the understanding of how macro environment affects positively
and negatively on the business activity of Bairstow Eves as well as the connection of
internal strength and external strength with external macro factors.
Bairstow Eves is the brand of Countrywide which is the UK's largest property services
groups. The company is effectively active and working successfully as both Letting agents
and Estate agents. The company having around 100 offices that helps over 8000 customers
to find their suitable residents.

LO1
TYPES OF ORGANIZATION AND THEIR ORGANIZATIONAL STRUCTURE
There are various types of organization and each organization has its own aims and
objectives as well as the purpose for that particular business organization practice its
business activity (Burke, 2017). The general types of business organization are public
sector, private sector and voluntary sector business organization. Following are the
detailed overview of these organizations:
Figure: Types of Organization
Source: Burke, 2017
Public Organization
The public organization more often than not operates and manages by the government of
the country and in some cases; a person owns the majority of the shares of the company
have control over the public company (Padoveze et al., 2017). The main purpose of the
PUBLIC
SECTOR
PRIVATE
SECTOR
VOLUNTARY
SECTOR

public companies is to provide good service and product quality to the customers at an
affordable price.
Example: Bairstow Eve is a brand of Countrywide which provides letting services to the
people of the UK. The company operates its business through many branches which cover
the area of all around the UK.
Size - Bairstow Eve covers the entire UK in order to suggest and offer properties to the
people of the UK.
Scope – As a public company, Bairstow eve has a great scope and a very great chance to
expand its business into multiple countries.
Purpose – The purpose of the Bairstow Eve is to suggest good properties at an affordable
price.
Figure: Organizational Structure of Bairstow Eve
Source: Padoveze et al., 2017
Private Organization

The private organization operates and manages by private bodies that have the ultimate
purpose of increasing business sales and profit maximization. All the decision-making of
the business are done by the owners of the business organization and government has no
right to interfere in the business activity of the private organization unless they have some
illegal elements in their business activity (Panda, 2016).
Example: Iceland supermarket is a private business organization that has a specific aim
which is to increase business sales and maximize business profit. Iceland conducts its
business in multiple countries and effectively covers the entire market of the UK.
Size – The size of the Iceland supermarket is considerably big in size to compare to
Bairstow eve as it has over 800 stores in the UK and business also have its stores in
multiple countries.
Scope – Iceland supermarket effectively covers most of the market of the UK and it has a
great chance to gain a competitive advantage over its arch-rival Tesco supermarket.
Purpose – The purpose of the Iceland supermarket is to provide best quality products and
services to customers and provide the utmost level of satisfaction to them.
Figure: Organizational Structure of Iceland Supermarket

Source: Panda, 2016
Voluntary Organization
Voluntary organization are established for the special vision or motive and works for the
welfare of the society just like public organization but the aim of the voluntary organization
is related to particular issue such as provide education facility for all etc. (Tomczak and
Buck, 2019).
Example: Cancer Research UK and Oxfam is a voluntary organization where the Cancer
Research UK has the purpose of making the UK cancer free. The organization initiates
various campaigns in order to spread the awareness of the cause of cancer as well as join in
their cause. On the other hand, Oxfam aims to make the world discrimination free.
Size – The size of the Cancer Research UK is very broad as 3,964 employees and 40000
volunteers working for it. The organization effective spread awareness in the entire UK.
Scope – The voluntary organization works for the society for that more and more people
join their campaign and help them in order to achieve their objective.
Purpose – The ultimate purpose of the Cancer Research UK is to make the UK cancer free.
SIZE AND SCOPE OF DIFFERENT TYPES OF ORGANIZATIONS
Private, Public and voluntary organization falls under the category of the small, medium
and large organization according to their size. Following are the differences between small,
medium and large organization:
BASIS SMALL MEDIUM LARGE
GOALS &
OBJECTIVES
The business aims to
earn profit in order
The medium
organization aims to
The large business
aims to cover the

to maintain
sustainability in the
business (Burke,
2017).
maximize its profit
and provide a good
level of satisfaction
to the customers.
market share of the
entire world.
MARKET SHARE The market share of
the small business is
small and generally
limited to region
specific.
The medium
organization market
shares are
comparatively large
and their share is
limited to the entire
country (Padoveze et
al., 2017).
The large industries
cover the market
share of multiple
companies and keep
expanding.
PROFIT SHARE The profit is very
less as they conduct
business to remain
in the market and
maintain
sustainability.
The profit share is
comparatively bigger
than small business
and profit is not
limited to region
specific.
The profit of a large
business is very
large as they earn
profit from multiple
countries.
GROWTH AND
SUSTAINABILITY
The business has low
risk and can grow in
quick time (Tomczak
and Buck, 2019).
The medium
business has
medium risk and
business is good at
maintaining
sustainability.
The risk is very high
as equal to reward
and growth rate is
also very high as
business use
effective methods of
globalization (Panda,
2016).

LO2
ORGANIZATIONAL STRUCTURES
Functional Structure
The functional structure is the most common structure used in most of the organization as
it group employees of the same field such as marketing, finance etc. (Bresnan et al., 2015).
Figure: Functional Structure
Source: Bresnan et al., 2015
Divisional Structure
This is a structure in which organization group employees according to the product or
service of the company not by their skills or department (Hunter, 2015).

Figure: Divisional Structure
Source: Hunter, 2015
Matrix Structure
In a matrix, structure employees have to report to the multiple supervisors as their skill or
work benefits multiple activities of the organization (Langr and Tvrdik, 2015).
Figure: Matrix Structure
Source: Langr and Tvrdik, 2015
ORGANIZATION FUNCTIONS OF THE BAIRSTOW EVES AND THEIR INTERRELATION
Marketing
The marketing function of the Bairstow eves ensures that the business is reaching to its
target customers and is responsible for using effective marketing strategies that benefit the
business. The marketing department is directly linked with the HR department and finance
department of the business as the finance department provides funds for the marketing
activity whereas HR department hires a human resource for it (Padoveze et al., 2017). The
marketing department is a functional department but sometimes had to follow matrix

structure as well which helps the business to achieve its aims such as increase customers
and business sales (Langr and Tvrdik, 2015).
Operation
The operation function of the Bairstow Eve follows the functional structure as they have to
directly report to the upper manager about their operation, Operations such as fulfilling
legal forms about the properties etc. that directly connected with interested parties and
upper management or owner (Panda, 2016).
Finance
The finance department of the Bairstow business is also related to all department of the
business and follows more often than not matrix structure as they produce a budget for all
the department of the organization which ultimately helps business in achieving goals and
objectives. Such as creating a budget for marketing, HR etc. which minimize cost and
maximize the profit of the organization (Hunter, 2015).
Human resource
Human resource department plays a very important role in order to help the business to
achieve their goals and objectives as the HR department of the Bairstow is responsible for
hiring skilled employees for the entire departments of the business.
Advantage and Disadvantages of Interrelationship of Functions of the Bairstow Eve
Following are the advantages and disadvantages:
Advantages
Interrelationship increases the performance of the employees which ultimately benefits the
business in order to achieve business goals and objectives. Interrelationship also increases
team coordination that helps in completing the tasks and activities more effectively.
Disadvantages

The interrelationship can lead to a rising in conflicts between departments as all
departments have their own working pattern. The interrelationship also leads to the
overburden of work and confusion among the employees (Bresnan et al., 2015).