Analyzing Organizational Structures and Macro-environmental Factors

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BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION.......................................................................................................................................3
LO1..............................................................................................................................................................4
L02.............................................................................................................................................................10
L03.............................................................................................................................................................12
L04.............................................................................................................................................................14
REFERENCES..........................................................................................................................................15

INTRODUCTION
This assignment is prepared to understand the different types of organizations and their
objectives along with their detailed structure and it will be based on the data and statistics
available from various sources. And in the second part covers the relationship between the
different departments of the organization. And in the next part, the macro-environment factors
are to be assessed with the help of PESTEL analysis. And in the last part interrelationship
between the internal and external factors affecting the functioning of business units (Johnson,
2017)

LO1
The different types of organizations are a sole trader (individual business), partnerships, private,
public and voluntary organizations. Their illustration with examples is as follows:
Sole trader: a sole trader can be defined as an individual business in that individual is
responsible for all legal and financial aspects of the business. For example, Kurt Geiger is the
famous sole proprietor of the UK, and the brands he has created are Schuh, dune, etc.
Partnerships: Partnerships can be defined as the alliance between two business entities, in order
to share profit and generate revenue. They may be both privately held and owned by the public
unit or can be an alliance between private and public organizations. For example, a social chain
is founded to serve the online community of students by using the twitter handle.
Private the private sector organizations are those organizations that are owned by the private
entities and their main objective is to generate profit by offering valuable products and services
in the market. They are funded by the owners and shareholders (Johnson, 2017).
For example, Metro Bank is registered as a private bank and offers a range of banking and
financial services.
Public: the public organizations are those owned by the government. Their main aim is to serve
the public by offering products and services at minimum cost or free of cost at all. And they are
funded by the government from their fiscal income.
For example, the BBC is the oldest broadcasting media house and funded by the government of
England.
Voluntary: voluntary organizations are mainly privately owned. Their main objective is to serve
mankind and eradicate the problems of society like poverty, hunger, and inequality. They get
their funds by charity and donations (Johnson, 2017).
For example, Oxfam is the not for profit, non-governmental organization based out of the UK.
And it works for child education, reducing poverty and inequality in society.

Metro Bank:
Metro bank in the UK is a retail banking and financial service provider and established in the
year 2010. It offers valuable business banking services as well as many smart saving plans to
attract consumers with diverse needs.
Scope: the banking and financial services are constantly becoming desirable by the changing
business needs and environment.
Objective:
 To provide excellent banking services and building trust in consumers.
 To serve society by offering various social welfare services.
 To achieve the leading position in the industry by constant up gradation of products and
services.
Vision: they envision being a leading bank and charitable organization to have a significant
impact on social development.
Mission: the metro bank aspires to be excelling in the banking sector by financially empowering
its consumers and also engage with them in a way it will provide a strong consumer base to it.
Size: the company is a large size company with more than 2800 employees. And it also one the
leading organization by revenue and the market share (Metro Bank Logo, 2019).

Figure 1-Metro Bank Legal Structure
[Source: Metro Bank Logo, 2019]

BBC: BBC (British Broadcasting Corporation) is the oldest public broadcasting company in the
world. It is funded by the government of England. And more than 20,000 employees work here.
They aspire to empower people through media coverage.
Vision: it aspires to eradicate ignorance by providing information and create a healthy, safe and
inclusive world.
Mission: it aspires to offer responsible media globally and empower the people and encourage
them to put their opinion on their welfare.
Objectives:
 Their aim is to offer people-focused services and to empower the global community.
 They aim to deliver the information after extensive research by their experts.
 They aim to remain the leading news agency across the global by constantly changing
their business model.
Size: BBC is the largest organization and more than 20,000 employees work here. They aspire to
empower people through media coverage. And they also offer various educational services in
order to expand their customer base further (BBC logo, 2019).
Figure 2-BBC Legal Structure
[Source: BBC logo, 2019]

Oxfam: Oxfam is not for profit, non-governmental organization and it aims to offer educational
services to the deprived population of the world. They also aim to reduce inequality and their
reports on increasing inequality fetched the attention of global media.
Size: it is one of the largest voluntary organizations in the world. And has more than 10,000
participants globally. It urges people to offer a donation in the time of national calamities.
Vision: they envision making the world free of hunger and poverty. And empower the people so
that they can be an equal participant in the decision making, and can exercise their rights.
Mission: their mission is to eradicate all types of inequality in a society and bring positive
changes in the life of the poverty-stricken populations.
Scope: this is one of the largest organizations and the level of global poverty, hunger and other
social barriers provides an immense scope of developing its operation across the globe (Oxfam
International Logo, 2019)
Figure 3-Oxfam International Legal Structure
[Source: Oxfam International Logo, 2019]

Objective:
 To make the world free of discrimination.
 To bring equality of rights, education, and status by offering various social welfare
services.
 It mainly focuses on economic justice in society (Johnson,2017)

Size, scope, and structure of different organizations and their link with the objectives of the
business
The Metro bank is a private, retail banking and financial service provider. And it aims to lead in
the banking sector and yield more revenue and change the experience of banking for global
consumers. It also participates in charity in order to fulfill its social obligations and it is visible
in the agenda set by it (Metro Bank Logo, 2019).
BBC is one of the biggest media houses in the world and it expanded its coverage across the
globe after the digitization of services. And it being a media house aspires to empower more and
more people and expand its business further. It aspires to offer responsible media globally and
empower the people and encourage them to put their opinion on their welfare (BBC logo, 2019).
The objective of Oxfam is to deliver its products and services for the welfare of society. As it is
not a profit making organization, its size and scope and mission are acknowledged globally. And
due to its recent operations, it is accredited as the evolving voluntary organization for social
welfare (Oxfam International Logo, 2019).

L02
Organizational structure can be defined as a framework within the organization followed for the
exchange of information, and interaction between the different segments within the business. OS
also includes the effective formulation of policies and procedures.
There are different types of organizational structure as functional, divisional, flatarchy and
matrix. And functional matrix is mainly focused on marketing, sales, and other services. In the
Metro, the bank is the leading retail bank and act globally and the explanation of its divisional
organizational structure is as follows (Goncharuk, 2016).
Division organizational structure of Metro Bank
Commercial division: the commercial division of metro bank focuses on the product and
services development and marketing operations, handling the clients is also part of the
commercial division.
Retail division: retail banking division focuses on delivering the services according to the need
of clients. It also focuses on the production and accounts of the products.
International division: it focuses on all of its consumers residing outside the country. And it
offers the same services to them. It also in its international division provides social welfare
services outside the country (Fairfield, 2016).
The functional organizational structure of Metro Bank:
Information technology: the IT department of Metro bank mainly focuses on the networking
and the online services of the bank. It also focuses on e-services and network infrastructure and
cybersecurity.
Financial division: the financial division in the banking focuses on all transactions and balance
sheets of the bank; it also creates and updates the data of all creditors, debtors and the banking
partners. The cost to the bank for managing the operations, many other charges by the central
bank is also managed by it (Goncharuk, 2016).

HR division: the HR segment of the bank deals with the number of employees, and the policies
for the management and effective interaction between the leadership of the bank and the
employees,
Customer service function: The metro bank satisfies its consumers by delivering efficient
services to them, they have a separate division for handling complaints and resolve them as fast
as they can (Goncharuk, 2016).
Advantage and disadvantage of the interrelationship between the function of the
organization and its impact on organizational structure
There are several advantages and disadvantages of the interrelationship between the different
entities of the organization.
Advantage:
It enables the organization to make effective policies for the long-term growth of an
organization.
It promotes teamwork and cooperation between the different layers of employees.
It instills confidence any unity among the different stakeholders of the organization and that is
good for the business profitability (Johnson et al., 2017).
Disadvantage:
The conflicts may arise with an increasing level of communication because different employees
can have different opinions.
It can also lead to some delay and lack of productivity.
It may go against the uniform structure of an organization (Johnson et al., 2017).