Analyzing Organizational Structures: A Business Report

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BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION.....................................................................................................................................4
LO1........................................................................................................................................................5
Size scope and structure of different organizations............................................................................10
L02.......................................................................................................................................................11
Advantage and disadvantage of the interrelationship between the functions of the organization and
its impact on the organizational structure:..........................................................................................12
LO 3.....................................................................................................................................................13
LO4......................................................................................................................................................17
CONCLUSION.......................................................................................................................................21
REFERENCES:.......................................................................................................................................22

INTRODUCTION
This assignment is prepared to study the different types of organizations besides their size,
scope, legal and organizational structure. And also to deal with the positive as well as the
negative impact of external environment factors on the business operations of an organization
by applying PESTEL analysis on real-life situations within and outside the organization. In
the next segment, various business functions and their interrelationship will be explained with
the help of appropriate examples. And in the end, the impact of internal factors and their
relationship with the external factors is discussed (Winnubst, 2017).

LO1
Organizational structure:
The organizational structure of an organization can be defined as the agenda or outline that
decides the manner, to perform all business operations as a manner of communication, roles,
and duties, etc. it helps in achieving the goals and targets set by the organizations.
Public sector: public sector undertakings can be defined as a business unit, owned by the
government or government is a major shareholder. And the business operations are funded by
the fiscal income (both taxable and non-taxable income etc.). They are mainly set up to meet
public welfare (Winnubst, 2017).
For instance, the national audit office UK is the PSU and funded by the fiscal income. And it
controlled and regulated by the federal authorities.
Private sector: these undertakings can be defined as the business units that are set up by the
private entities. They are owned, funded and controlled by private individuals. Their aim is to
yield high revenue and market share.
For instance, Vodafone is a leading telecom company with leading revenue generation and
market share.
Voluntary organization: the NGOs are the business entities that are set up by both the
private as well as the public sector. And their main aim is to benefit the society at large.
For instance, Save the Children UK is a century-old organization to protect and support the
destitute children across the world with its moments like "Stop the war on the children”
(National Audit office UK, 2019)

National audit office:
The national audit office is a parliamentary body established with the aim to verify the
functioning and maintain the code of conduct in all public and private sector bodies. The
organization is also a member of the UN board of auditors.
Their vision is to ensure the moral code of conduct and ethical standard in the public sector. It
also endorses the idea of good governance and prudent financial management.
The mission is to ensure the compliance of all regulatory mechanisms, offer people-centric
services and good governance. They offer a friendly work culture for their employees.
Scope: the organization holds wide scope as the stakeholders of the organization are
continuously increasing due to the increase in public offices and increased need for
compliance.
Legal structure: the audit office managed by the Comptroller General of the UK and the other
auditors. The auditor is supported by the deputy auditors.
Objective:
To ensure the integrity and accountability in all public offices
To ensure prudential financial management of fiscal money
Fix the accountability on all stakeholders and promote good governance (National Audit
office UK, 2019)
Fig 1: organizational chart of national audit office the UK

Vodafone PLC
Vodafone PLC is a UK based telecom operator and service provider. It offers one of the
fastest networking services in the UK. And it is the second largest network operator by
revenue.
Vision: The vision of Vodafone PLC is to offer connectivity and efficient delivery of services
to improve the lives of users. And the organization also aspires to deliver the services in an
ethical and efficient manner.
The mission of Vodafone PLC is creating chances every day by providing efficient
communication technology. They focus on delivering customer-oriented services and offering
sustainable living.
Objective:
 Their objective is to deliver transformational products and services to meet the gap in
society.
 They aim to manage the efficiency and productivity of operations and manage to
sustain productivity across its business operations to deliver quality services to its
consumers.
 They aim to communicate timely with their consumers in order to solve their queries
easily (Vodafone PLC logo, 2019).
Size and scope: the Vodafone has the largest geographical expanse and one of the leading
telecom organizations with more than 1/3rd market share and revenue generation.
The legal structure of the organization is as follows:

fig 2: Organizational Structure of Vodafone PLC

Save the Children the UK: save the children is UK based organization to save and protect
the lives of children across the globe and it is not for profit organization and pledges to
support the destitute and change their lives.
Vision: the vision of an organization to save the children globally by the optimum utilization
of resources.
Mission: the mission of an organization is to change the life of children by its global
moments and support of the global community (Save the children logo, 2019).
Objective:
 Their objective is to create a safe and accountable society for the children
 Offer them a safe and secure environment to grow in their lives
 And to ensure educational and health supports for them
Size and scope: the organization is the largest volunteer organization across the globe to save
the children. And it has millions of supporters and volunteers (Miesing et al., 2017).
Legal structure: the legal structure of the organization is as follows:
Fig 3: Organizational structure of Save the Children

Size scope and structure of different organizations
The size and scope of the National Audit Office are expanding as the private as well as the
public sector is growing and the organization is also gaining support due to increasing
awareness and support in the masses. The size of the organization supports its business
functions effectively.
The Vodafone PLC holds immense scope for growth and development. And the organization
is also expanding its business further by the increasing purchasing power of the consumers in
the market. The organizational structure of Vodafone PLC is also it supports the smooth
functioning and communication at all levels of the business unit. And the Vodafone follows
divisional as well as functional structure to manage its operations.
The save children are managed by the board of trustees and the operations are further
managed by the executives within the organization. it follows the divisional as well as
flatarchy organizational structure (Save the children logo,2019).

L02
Organizational structure can be defined as the outline with which the business unit manages
and supports its business operations and also communicate with all stakeholders to ensure the
effective delivery of services. The organizational structure followed by the Vodafone PLC is
a combination of functionality as well as divisional structure. There four different types of
organizational structure (Miesing et al.,2017).
The functional structure:
The functional structure of an organization deals with the different functions and operations
managed by the organization. They can be HR, Account, financial, sales, marketing, and
promotion and production department.
Financial function: the financial department is accountable to ensure the quality of financial
services and effective management of accounts and budget of the organization. t also deals
with the budget allocation and accounts management task.
HR function: the HR department in any organization deals with the effective interface
between the employees and the management. The senior leadership in the Vodafone PLC
deals with the HR unit and convey their messages and policies to them. They also ensure the
implementation and compliance of employee-centric policies.
Marketing Function: the marketing unit of the organization is responsible to plan and
manage the effective marketing methods to promote the products and services of the
organization and fetch more business for the organization in order to serve its ambition.
Sales Function: the sales unit of an organization promotes growth by preparing effective
methods to increase the sales of Vodafone. Advertisement is also part of the marketing
strategy of Vodafone. And the use of marketing tactics promoted the growth of revenues and
market share globally (Vodafone PLC logo,2019),
Quality function: to ensure the quality of products and services of the organization is also
the core responsibility of the quality department of the organization. In Vodafone PLC the
quality cell ensures the quality by constant evaluation and modification of the products as per
the demand.

Advantage and disadvantage of the interrelationship between the functions of the
organization and its impact on the organizational structure:
The organizational structure can have mix impacts on the functioning and operations of the
organization and the operations can further be improved with the help of modifications in the
structure as per the need of the market. The link between the different segments of the
business unit can serve the business ambition further (Vodafone PLC logo,2019).
Benefits:
It encourages the organization for the effective implementation of both the short-term and
long-term policies of an organization.
It promotes effective management and cooperation amongst the employees and leads the
unity and teamwork.
It enhances the confidence of all the participants of the business: leader, manager, consumer,
etc. in business functioning and future growth.
Negatives:
 It may lead to conflicts in some cases as the increasing degree of contact lead to
disagreements also.
 It may lead to delay, confusion, lack of clarity and troubles in managing the business
operation
 It may also impact the performance indicators of the business operations and
functions.
 It reduces the uniformity and centralization of the organizational structure and the
management and the subordinates accorded with more responsibility to manage their
operation (Erik Devaney, 2019).

LO 3
PESTAL ANALYSIS
The macro environment of any business covers all the factors that affect the business to a
great extent as a whole and not in a particular area. There are many factors which affects
directly to the company and some affects indirectly to the company. Moreover these factors
have negative impact and positive impact on the company. To overcome these factors there
are various measures and steps that re being taken by the company and government has given
aid to the company for its smooth functioning. The private company like Vodafone also gets
affected by the various factors which affects it directly which can be evaluated by the help of
PESTLE
Political factor : Political factor plays a significant role in the growth of the Vodafone
because these are the external factors that are not under control of Vodafone and it can
directly impact the revenue generation due to implementation of various political policies.
The political factors like
 Legal framework of contract enforcement
 Political instability and importance of wireless communication
 Trade regulations and tariffs related to telecommunication industry
 Product labeling and other requirement costing
These factors directly affect the operation of Vodafone as the company has to abide by these
policies in order to operate in the telecommunication industry.
Positive impact of political factor: It helps Vodafone to go along with the governmental
policies and promotes smooth functioning which also helps in creating a goodwill in the
market in terms of the authenticity. This policies also helps to analyze the position of the
company to invest in any kind of new venture.
Negative impact of political factor: The changes in the political factors and coming up of
the new policies many a times incur cost to the company in order to abide the policies as
Vodafone need to arrange for all the documents and make changes in the business strategies
and estimations also.
Economic factor: The economic factors like inflation rate, saving rate, foreign exchange
rates etc. directly affects the monetary and financial value of the company. Vodafone