Business Environment Analysis: Organizational Structures

This report provides an in-depth analysis of the business environment, exploring various organizational types and their characteristics. It differentiates between profit, non-profit, and non-governmental organizations, detailing their purposes and structures. The report further examines the size and scope of different organizations, including micro, small, medium, and large entities, using examples like the Boss Brewery Company and the Dorchester Hotel. It also discusses global growth and developments, covering transnational, international, and global organizations, as well as the differences between franchising, licensing, and joint ventures. Additionally, the report outlines the relationships between different organizational functions such as finance, marketing, and human resources, using the Dorchester Hotel as a case study. Finally, it explores organizational structures including functional structures and strategic business units. The report concludes by emphasizing the importance of understanding the business environment to effectively manage functions and operations.

Business and business
environment
TASK 1 and TASK 2

Table of content
 Introduction
 Different types of organizations
 Size and scope of different types of organizations
 Relationship between different organizational functions
 Conclusion
 References

Introduction
Business environment refers to
aggregation of diverse influences,
situations and events which surround
and impact a company. The
presentation is based on distinct
organisational types and purposes.
Further, it explains size and scope of
organisational type ranges.

Different types of organizations
Organisations are group of people that puts things or
ideas in coordination and logical order to attain
objectives. There are wide types of organisations having
different objectives.

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Differences among some are as follows:
Basis of
differences
Profit organisations
(Dorchester Hotel)
Not for profit organisations
(Brilliant Club)
Non- governmental organisations
(Amnesty International)
Definition Profit organisations are those entities which
operates to make money and gain
recognition.
Not for profit organisations are
that which set up businesses in
order to provide services for
welfare of society as well as
promotion culture of nation.
Non- governmental organisations are those
companies that are independent from any
government and these are the subgroups which
are established to provide premises, services
along with benefits to the member.
Purpose Profit organisations work with purpose to
gain maximum market share and huge
profits.
These organisations operates
for providing public
commodities on time for
welfare of community.
Non governmental organisations works with
purpose to solve specific cause and make
improvements in welfare of citizens.

Size and scope of different types of
organizations
Difference basis Micro organisation Small organisation Medium sized organisation
Definition Micro organisation are those which employs small
people, that is 0-10 candidates and makes turnover
below £ 2 million. Boss Brewery Company is
example of micro organisation.
Small organisations are those
institutions which employs 10 to
50 people and have turnover
around £ 10 million. Amnesty
Internation is example of small
organisation.
Medium sized organisation are
described to firms which have
less than 250 people as working
and turnover around £ 50 million.
Brilliant Club is medium sized
organisation.
Purpose The purpose of micro organisation is to boost
purchasing power and create jobs.
Purpose of small organisation is
to create meaningful employment
and foster local economies.
Medium sized organisations have
purpose of facilitating financing
decisions by investors.
Objectives Objectives of micro organisations is to earn living
for family.
Objectives of small organisations
is to survive in market.
Medium sized organisation
posses objectives of attaining
growth and expansion of existing
operation.

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Differences basis Large organisation
(Dorchester Hotel)
Medium sized organisation
(Brilliant Club)
Small organisation
(Boss Brewery Company)
Objectives and goals Large organisation such as Dorchester Hotel
have objective and goal of increasing sales
volume and maximising revenues.
Brilliant Club have objective and
goal of enhancing fair access to
huge chosen universities to help
children that belongs to low
income background.
Boss Brewing Company have
main objective of promoting its
products and supporting
communities within the state.
Market share Dorchester Hotel has captured wide market
share of UK along with other nations
through its luxury services.
Brilliant Club has acquired 3000
secondary along with 17000
primary schools of England.
Moreover, they have acquired
20% educational market of the
nation.
Boss Brewery Company has
captured limited market shares of
the UK as it is small company
which focuses on satisfying needs
of local area only.

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Differences basis Large organisation
(Dorchester Hotel)
Medium sized organisation
(Brilliant Club)
Profit share Dorchester Hotel has huge profit
shares as it charges huge money from
customers for offering luxury services.
Brilliant Club is not for profit
company that only works to widen
access for students belonging from
under-represented groups.
Size and scope Dorchester Hotel have approx 3500
employees which performs activities
in different locations. It has wide
expansion scope within multinational
market.
Brilliant Club has around 75
employees that works in different
department for rolling out charity
provisions. It has huge scope for
improving education in UK.

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 Global growth and developments of transnational, international
and global organisations:
Transnational organisation are the businesses which transcend idea
of nation state. They invests more in foreign operations, research and
development along with have central central corporate facility that
assist in global growth addition to developments. However,
international organisations are generally importers and exporters
which attains growth and development through maintaining relations
with domestic population and investing at international market.

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 Differences among franchising, licensing and joint
ventures:
Franchising is mentioned as commercial association contract
that is formed between two independent along with legal
companies for providing commodities by a business model
against royalty fee. However, Joint venture is an agreement
that is related to stratagem alliance among interested parties
which have similar goals to attain.

Relationship between different organizational
functions
 Organisational functions are the set of activities which are
carried out within areas along with departments of company.
Major functions involves human resource management,
customer service, operations, finance, warehousing marketing
and information technology.

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In case with Dorchester Hotel, each of its functions have some roles and
interrelations with each other which are as explained below:
 Finance and marketing: In the company, role of marketing is to
build a brand, run promotions, conduct market research, building
relationships, maximising customer awareness and promoting facilities.
 Human resource and marketing: Within the business, human
resource management have role of recruitment, employment law
compliance, ensuring health and safety, staff training along with
development.

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Organisational structure: It is the system which generally
outlines ways within which departmental activities are
directed for attaining goals of enterprise. It is set by
managers as per the size and scope of company. Following
are some of organisational structures:
 Functional structure: The structure of organisation in
which employees are grouped on the basis of their
specialisation along with similarity in roles and tasks.

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 Strategic business units: In this structure, entities focuses for
product offering along with segmenting market. Within the
structure, companies have different departments that have own
objectives and directions. An organisation having small
employee size and limited scope generally adopt this structure.

Conclusion
The presentation concludes that understanding business
environment is important to deal with situations which
impacts functions and operations to huge extent. Profit,
not for profit and non governmental organisations are
few organisational types which have different purpose
and follows distinct legal structure.

References
 Aithal, P.S., 2016. Study on ABCD analysis technique for
business models, business strategies, operating concepts &
business systems. International Journal in Management and
Social Science. 4(1).
 Burton, F., Yamin, M. and Young, S. eds., 2016. International
business and Europe in transition. Springer.

Thank you