Business and Environment Report: Dyson's Organizational Structure

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This report examines Dyson's business environment, organizational structures, and the impact of the macro environment. It begins with an introduction to business and the chosen organization, Dyson, a multinational company based in the UK. The report then explores different types of organizations: public, private, and voluntary sectors, and their legal structures, providing examples like the National Health Service and Oxfam. It further explains the size and scope of these organizations, comparing their backgrounds, sizes, scopes, products/services, visions, missions, and objectives. The report delves into the relationships between various organizational functions, such as marketing, human resources, finance, operations, purchase, and research & development, and how they link to organizational objectives and structure. Finally, it identifies the positive and negative impacts of the macro environment on Dyson using a PESTLE analysis, covering political, economic, social, technological, legal, and environmental factors.
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Business and Business
Environment
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INTRODUCTION
Business is the activity of manufacturing or buying and selling of goods with the motive
of earning profit. It can be defined as the any task is done for the the motive of earning
profitability. Business environment have the significant role in the development of the economy.
It produces the goods and services according the market research (Akinseye, and Adebowale,
2016). Dyson is the chosen organisation for this report. It is a multinational company, which is
established in United Kingdom. It deals in vacuum cleaners, air purifiers. Heaters and hair
dryers. It has 12000 employees worldwide. This report will cover the different types of
organisation, public, private and voluntary. It also explain the legal structure of the various
companies. Interrelationship between different functions of the organisation. furthermore, It also
explain the impact of macro environment on Dyson and strength and weakness of the business
and interrelationship between strength and weakness and external macro factors.
TASK 1
P1. Explain different types and purpose of organisations: public, private and voluntary sector
and legal structures.
There are different types of organisation, which is defined the team of individuals
working together for achievement of the conman objective in the organisation. These can be
classified on two basis, one who has a motive of earning profit and another the organisation is
working for social welfare in the society. Categories of organisation is explained under:
Public sector organisation: These are the organisation which is regulated by the
government with the motive of serving the society. (Allmendinger and et. al, 2017).The
main motive of the these organisation is to contribute in the development of the
economy. National health service is the example of public sector organisation.
Purpose: the purpose of these organisation is to serve the society and help in increase the
standard of individual and Increasing the economy of the country.
Legal structure:
Central government: these are the business which are owned and controlled by the
central government . All the activities and procedures are ruled in government alliances.
All the funds and investment is procure from the general public only.
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state government: Under this, organisation is controlled by state and central
government and the the organisation which are within the state boundaries.
Local government: these are the local communities which regulate the organsiation in
approached manner.
Private sector organisation: These are organisation which owned and controlled by the
single owner of a group of people having conman objective.( Adeola and Ezenwafor,
2016). There is less interference of the government and al the decision is taken by owner
only. Dyson is the British company which deals in hair dryers and electronic products.
Purpose: the main purpose of this organisation to generate maximum profit and expand their
business in to new market place.
Legal structure:
Sole proprietorship: these are the type of business which is owned and controlled by
the single owner. All the profit and losses will be incurred from owner only and
individual is liable for their liabilities in the business.
Partnership: this is the legal agreement of two or more people, who are agreed to do
their business in mutual basis. (Bland and Osterwalder, 2019). The profit will be shared
according to the fixed ratio.
Private limited company: this is the company who have separate entity in the business
and have limited liability for their shareholders.
Voluntary sector organisation: these are the organisation which operates its business
for the general public. There is no profit earning motive. Shelter is the voluntary
organisation which aim is to serve the society.
Purpose: The main purpose of the organisation is to serve the general public by doing charity in
the society. There is no concept of earning profit.
Legal structure:
Trust: In this , there are approaches of the individual who are doing business to do
social welfare of the society.
Unincorporated Association: these are the association which operates its business by
the group of people and doing their work in generalize manner.
Organisation classification on the basis of their size:
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Micro: the organisation which operates their business in limited resources with low
investment and funds and market share of these organisation is is less.
SME: these are the small medium enterprises which operates their business in limit
resources. These are larger than small organisation and In UK, There are so many
business which working as SME.
Global: These are the organisation which works on international level with large market
share and high turnover in the company.
P2. Explain the size and scope of range of different types of organisation.
National Health Service: This is the public organisation which is owned and controlled by the
government only and all the funds and investment is procure from tax of the general public.
Background: It is the healthcare company in United Kingdom and is established in 1948
and mainly working in four countries of UK.
Size: It is the single biggest employer in the UK with 1.7 million workers across
England, Scotland and Northern Ireland.
Scope: The scope of National Health Service is to do charity for the population that
required support for disabled people and their families.
Product and services: The main service of this organisation to serve the disabled
people who are not fine and provide emergency and Urgent care service.
Vision: To provide best health care service that will help in well-being of the
individuals.
Mission: To serve the best treatment which gives better lives in the country.
Dyson:
Background: It is the British company and established in 1991. It deals in household
appliances with good market share.
Size: It has 12000 employees worldwide and generate 1.1 billion euros net income with
large marker segment (Ferra and et. al, 2017).
Scope: organisation is to offer innovation products and promote and sell in 49 countries
across the world and become the market leader in UK.
Product and services: It deals in household appliances like Vacuum cleaner, heaters, air
purifiers, blade less fans and hair dryers.
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Vision: The vision of the company is to inspire the new generation of engineers. It
provide money, mentorship and material so that new talent can show their talent and
learn various new strategy.
Mission: Companies mission is to deals with 21st century with air pollution and to solve
that company is looking in new innovation.
Objective: the main objective of the company is to provide best quality of product with
advance technology.
OXFAM
Background: It is the non-profit organisation which works for eliminating injustice and
poverty in the country. It is a voluntary organisation and works for alleviation.
Size: It operates their business in 94 countries with many local partner in the
organisation. It works with more than 50,000 volunteers in the world.
Scope: The scope is to increase the number of individuals that can contribute in the
development of the organisation.
Product and services: It ensure that education, fair trade and natural disaster related
issues and solve them.
Vision: To make the world with free of poverty and all the people will live with
happiness.
Mission: To make that people like the organisation and initiate to give funds for the
organisation for the further growth.
TASK 2
P3. Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.
There are various department in the organisation which work in different prospective of
the business in their smooth running of business. Each function of the management plays
important role in business. Dyson is the private organisation which need more focus on their
operations and coordination between the departments to achieve the business goal successfully.
The functions of management is explained as follows:
Marketing and Human resource department: Marketing is the department which is
responsible for advertisement of the company's product and services. With the help of
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marketing department, company can attract the potential customer and advertise their
product at large scale. Human resource department is responsible for hiring the
manpower in the organisation.(Gilliland, Tashman, and Sglavo, 2016). This is also
important department which select the potential employee for their operation. When HR
professional hire the potential customer then It will help the marketing department for
the effective marketing of the products and services.
Finance and operation department: Finance department is responsible for allocation
of the funds in the business and manage all the monetary transactions in the company.
Operation department is responsible for managing al the operation of the business for say
production, packaging, delivering and many more. When finance department do the right
allocation of funds in the business then operation department find new ways of doing
business with the funds and do their operation in effective manner so that company can
achieve their business goal.
Purchase and Research&development department: Purchase department is
responsible for dealing with the vendors for purchasing the goods and services for the
various operations. This department is responsible for providing required quantities of
raw material in operations of the business. Research and development department
perform various research to find out new ways of operation and innovation in the
product. When research and development gives new ideas for the business then
purchase department will provide the raw material according to requirement and avail
advance quality of material.
TASK 3
P4. identify the positive and negative impacts of macro environment on Dyson.
PESTLE ANALYSIS
It refers to analysing the factors which influence an organisation and helps to improve there
decision making process. (Michaelson, 2016).It basically helps the organisation to develop
there marketing skills.
PESTLE Analysis of Dyson Limited is mentioned below, it has following factors;
Political- It covers all the matters related to political stability, tariffs, taxations, trade related
aspects and many more.
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Positive Impact- As Dyson is the home company of UK it is easy for them to deal with
the local laws of that area so any political change does not affect the working of the
company and the government of UK is always supportive towards new technology and
innovations so it merely helped out Dyson as well. As emerging of Dyson in BRICS
market(Brazil,Russia,India,China and South Africa) is also helpful as they are
developing countries establishing market over there is a good deal.
Negative Impact- In recent years UK government is facing some unstable conditions
which has affected the supply chain and production of that area and as Dyson is a Private
company all these things directly affect the production and working of company.
Economic- It covers all the matters related to exchange rates, inflation, employment rates and
others.
Positive Impact- As in certain companies there is higher growth rate which increases the
market value of the product and helps to raise the profit for the company and also as
Dyson started dealing with a Malaysian company where it has low labour and production
cost and it has a huge supply of the product.
Negative Impact- At times there is higher Inflation rates which automatically decreases
the buying power of the customer which tends to make a huge loss to the company, and
also there arises some fluctuating demands of certain products which is quiet difficult for
the company.
Social- It covers factors like population taste, preference, age distribution, culture, attitudes and
many more.
Positive Impact- Dyson always tries to give something new to customers and also deals
with the high changing demands efficiently they tries to cover members of all age groups
whether kids or adults (Inigo, Albareda and Ritala, 2017). They have a high revenue
rates as and also tries to be innovative.
Negative Impact- With changing demands and change in people's lifestyle it is
somehow a big pressure on the company to deal with it and they also have to pay a
heavy amounts for getting the license which somehow decreases the profit rate.
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Technology- It mainly comprises of all the new technology and innovations with there better
and advance versions.
Positive Impact- Dyson has followed a digital revolution which is being trending in
today's time and it also emerged out with all new technology and innovations as it has
grown continuously with new advanced products.
Negative Impact- As for giving better and advance versions sometimes there arises a
problems in the products and company has to suffer losses for that. Dyson somehow in
various reasons uses old and outdated version which are not up to the mark.
Environmental- It mainly covers all the ecology, sustainable resources, ethical sourcing and
many more.
Positive Impact- The company is trying and working to launch certain ecofriendly
products which does not effect the environment.(Ngai and et. al, 2018).They had also
launched a vacuum cleaner for the cleaning purpose as by keeping hygiene in mind.
Negative Impact- They had not raised any environmental issue and also they didn't pay
any thing for saving the environment and as company has never dealt with any projects
related to environment.
Legal- It covers the law matters like change in legislation, resources and all the legal matters in
a company.
Positive Impact- As Dyson deals with several countries so they have proper patent,
trademarks, registration and all the legal formalities which needed and as it is a
technology based company they provide cyber space security by registering in IT Act
which makes them easier to get in another country and also this secure there brand image
Negative Impact- Every countries have there different laws and norms so it is quite
difficult for them to operate business in all the countries.
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TASK 4
P5. Analyse the internal and external environment of the organisation using SWOT analysis.
It is the framework of analysing the strength, weakness and opportunities and threat for
the organisation. .(Pal and et. al, 2016). It will help in finding new ways to overcome from the
natural problems of the macro environment and SWOT analysis of Dyson is as follows:
Strengths Weaknesses
Company produce innovative products
and enhance the standard of living in
the society.
Dyson have huge work force across
the world. It has 12000 employees in
different nations.
Company manufactures unique design
of products for their potential customer.
Company is manufacturing best quality
product which involve high cost on
production.
Company is facing controversies in the
market about the product quality and
high price.
Company is facing problem in adopting
all the requirement of the customers.
Opportunities Threats
Dyson can expand their business in to
new market segment where the
potential customer can be approached.
Company can enter in to online
business by introducing their
application for the easy shopping.
In UK, people are more likely to use
home appliances that help in expansion
of business.
There are market fluctuations in the UK
that will leads to slow down of
business.
When there is a delay in the launching
of new product. It take over the
opportunities by other companies.
There is a strong competition in the
market and that will leads to fall down
in market share.
P6. How strengths and weaknesses interrelate with external macro factors.
In organisation, there are various external factors which affects the operation and
performance of the business.( Swani and et. al, 2017)The strength and weakness of the each
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factor have greater impact on business. Affect of macro environment on external factor and their
strength and weaknesses are follows:
Political factor- These factors include government stability and rules and regulation of
the government. As Dyson is the home company of UK. It is easy for the company to
work in that country with the proper study of United Kingdom. This is the strength of the
political factor and company can expand their business.
Economical factor- Dyson is manufacturing a innovative product and serving on lareg
scale. This will leads to increase in the market share of the company.(Tseng, Yi, and
Yeh, 2019).
With high inflation in the UK, company will face problem in developing new products.
Social factor- Company always tries to give all the innovative product to increase the
standard of living off the society. Changing current scenario of the customer's choices
and performance makes the low demand of the product of the company.
Technological factor- Dyson is manufacturing the unique and innovative product and
always launch a new product that can satisfy the customer wants and demand. On other
hand Increasing cost of production by using expensive equipment for the manufacturing
of goods leads to incurred high operation cost.
CONCLUSION
It is conclude from the above report that business environment have significant impact
on economy. When the any organisation perform their task to achieve the business goal It will
contribute to the economy of the country. In this report there various types of organisation,
public, private and voluntary, small,SME and Multinational organisation. Dyson is the British
company which deals in wide range of household appliances like hair dryers, vacuum cleaners,
air purifiers and heaters. There are different legal structure of each type of organisation.
Furthermore, It has covered the interrelationship between various department of the company
and Dyson is a private organisation that need more ordination in the business. External
environment have major impact on Dyson. There is a positive impact of economical, social and
environment factors and there is a negative impact of political and legal environment. It also
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covered the interrelationship between Strength and weakness of the Dyson in relation to external
environment.
REFERENCES
BOOKS AND JOUNERALS
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in Supporting Entrepreneurs in Nigeria. Ife PsychologIA, 24(2).
Allmendinger, R. and et.al, 2017. Surrogate‐assisted multicriteria optimization: Complexities,
prospective solutions, and business case. Journal of Multi‐Criteria Decision
Analysis, 24(1-2), pp.5-24.
Bland, D.J. and Osterwalder, A., 2019. Testing business ideas: A field guide for rapid
experimentation. John Wiley & Sons.
Ferro, C.,and et. al, 2017. Validating a framework of stakeholders in connection to business
sustainability efforts in supply chains. Journal of Business & Industrial Marketing.
Gilliland, M., Tashman, L. and Sglavo, U., 2016. Business forecasting: Practical problems and
solutions. John Wiley & Sons.
Inigo, E.A., Albareda, L. and Ritala, P., 2017. Business model innovation for sustainability:
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Michaelson, C., 2016. A novel approach to business ethics education: Exploring how to live and
work in the 21st century. Academy of Management Learning & Education, 15(3),
pp.588-606.
Ngai, E.W.T.and et. al, 2018. Business sustainability and corporate social responsibility:
casestudies of three gas operators in China. International Journal of Production
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Pal, R. and et. al, 2016. Business health characterization: A hybrid regression and support vector
machine analysis. Expert Systems with Applications, 49, pp.48-59.
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Swani, K. and et. al, 2017. What messages to post? Evaluating the popularity of social media
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Management, 62, pp.77-87.
Tseng, H., Yi, X. and Yeh, H.T., 2019. Learning-related soft skills among online business
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