Analyzing Unilever's Organizational Structure: A Business Report

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BUSINESS & BUSINESS ENVIRONMENT
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Table of Contents
List of figures............................................................................................................................3
Introduction............................................................................................................................. 4
Lo1 & Lo2 (Task 1- Essay)......................................................................................................... 5
P1......................................................................................................................................... 5
P2......................................................................................................................................... 8
M1...................................................................................................................................... 11
P3....................................................................................................................................... 12
M2...................................................................................................................................... 14
Conclusion.............................................................................................................................. 15
References..............................................................................................................................16
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List of figures
Figure 1 Legal structure of Unilever.........................................................................................5
Figure 2 legal Structure of Brakes ltd.......................................................................................6
Figure 3 Legal Structure of Wellcome Trust.............................................................................6
Figure 4 Legal structure of CHS Inc...........................................................................................7
Figure 5 Functional structure................................................................................................. 12
Figure 6 Divisional structure...................................................................................................13
Figure 7 Matrix structure....................................................................................................... 13
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Introduction
This report is getting prepared for understanding the organizational structures of different
types of businesses with its nature, scope, background and size. This report will include the
description of different organizations with their legal structure, stakeholders and scope.
This will discuss global development and growth as well as market forces and economic
operations. This report will discuss the difference between the functions of the organization
in the next by linking it with the structure of the organisation. This will also show the
advantages and disadvantages of the interrelationships of the functions of organizations.
This report will be based on the Unilever which is a public British Dutch company which
supplies consumer goods. This headquartered in London, UK and was founded on 2
September 1929 by William Lever (Legal structure, 2019).
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Lo1 & Lo2 (Task 1- Essay)
As a junior business analyst of Unilever, this report has been carried out by me including the
research on the public, private and voluntary companies.
P1
TYPES AND PURPOSES OF ORGANIZATIONS
Public sector (Unilever)
Nature: the company deals with consumer products of beverages, food, beauty products
and personal care. The company is the public limited company which aims to make the
profit for the company in order to satisfy the needs and wants of the customers (Legal
structure, 2019).
Structure:
Figure 1 Legal structure of Unilever
(Source Legal structure, 2019)
Private sector (Brakes)
Nature: the company is the private limited company which is Distribution Company of food,
drinks and other catering products in the UK through 20 centres of distribution. The main
aim of private companies is to earn profit for their own purpose by providing services to
customers (Rhiannon Curry, 2016).
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Structure:
Figure 2 legal Structure of Brakes ltd
(Source Rhiannon Curry, 2016)
Voluntary sector (Wellcome Trust)
Nature: this is a charity firm in the UK which deals in the biomedical research for improving
the health of humans and animals. This is a voluntary sector, which mainly focuses on the
benefit of the humans and animals and no0t aim to make a profit for them (Emma Howard,
2015).
Structure:
Figure 3 Legal Structure of Wellcome Trust
(Source Emma Howard, 2015)
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Co-operative (CHS Inc.)
Nature: it is a type of co-operative sector of secondary agriculture which operates in the
selling of agricultural products and fuels. This comes under the private organizations which
are controlled and owned by the people who also use the products of the company (Brenda
Huesers, 2019).
Structure:
Figure 4 Legal structure of CHS Inc.
(Source Brenda Huesers, 2019)
LEGAL STRUCTURES OF BUSINESSES
Sole traders: these are the businesses owned by one person or maybe with the family
members and he owns his profit (Sihombing et al., 2018).
E.g.: Wettone Matthews Ltd
Partnership: these are the businesses owned by one or more persons who are called
partners and the profit shared between all the partners (Sihombing et al., 2018).
E.g.: John Lewis partnership
Private limited company: these are the businesses which are non-controlled by the
government and are for earning the profit (Sihombing et al., 2018).
E.g.: Brakes
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P2
SCOPE AND SIZE OF ORGANIZATIONS
Unilever (public limited)
Background: it is a public company which deals in consumer products and was founded on 2
September 1929 by William Lever and headquartered in London, UK (Legal structure, 2019).
Size: it deals with its products all over the world and it has over 400 brands and turnover is
of 53.7 billion.
Scope: it has a wide scope in the future as it is a well-known company of consumer products
and serves better for their benefit (Legal structure, 2019).
Stakeholders: employees, customers, agencies, distributors etc. are its main stakeholders.
Brakes (private limited)
Background: it is a wholesale food company which deals through 20 centres of distribution
and was founded in 1958 and headquartered in Ashford, UK (Rhiannon Curry, 2016).
Size: it acquires many businesses and has more than 20 channels of distribution all over the
UK.
Scope: its scope is good as it serves its products to schools, hospitals, caterers, hotels and
various restaurant chains (Rhiannon Curry, 2016).
Stakeholders: its stakeholders are the customers, employees, investors and shareholders.
Wellcome Trust (voluntary)
Background: it supports the understanding of the public. It was founded in 1936 by Sir
Henry Wellcome and headquartered in London, NW1 UK (Emma Howard, 2015).
Size: it has about 2057 employees and donation of £25.9 billion for the benefit of humans
and animals.
Scope: its aim is to achieve amazing improvements in the health of human and animals by
supporting the positive minds which is important for the country (Emma Howard, 2015).
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Stakeholders: its main stakeholders are its donors, Universities, and its members.
CHS Inc. (co-operative)
Background: it was founded in 1931 by Farmers Union which operates in fuels and
agricultural products (Brenda Huesers, 2019).
Size: it has 12157 employees and at 1st in the list of the national co-operative bank.
Scope: the scope is that this company is important for the farmers for increasing agriculture
(Brenda Huesers, 2019).
Stakeholders: its main stakeholders are Ventura Foods, farmers, investors and customers.
DIFFERENCE BETWEEN SMALL, MEDIUM AND LARGE ORGANIZATIONS
Basis Small Medium Large
Objectives and Goals Their objective is to
earn profit
Their objective is to
maximize profit
Their objective is the
business expansion
Market share These have a limited
market share to a
particular region
These coves entire
market share of the
nation
These cover the
nation and market
outside the country
Profit share The companies have
limited profit share
The companies have
a larger profit share
compared to small
organizations
These companies
earn and make profit
higher than medium
and small
organizations
Growth and
Sustainability
The small companies
have less risk and
high growth
The medium
companies have
medium risk and
sustainability and
growth rate is high
The large companies
risk depends on
sustainability and
growth is high
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TRANSNATIONAL ORGANIZATION
These are complex organizations which operate with considerable facilities and do business
in many countries. These organizations do not consider any national income of any
particular country (Smither et al., 2016).
INTERNATIONAL ORGANIZATION
It refers to the business industry which operates with other companies in order to export
and import where they do not have any investment outside their local country (Smither et
al., 2016).
GLOBAL ORGANIZATION
These companies have their locations in other countries, they treat the whole world as a
single market and control overall business all over the world by a centralized head office
(Smither et al., 2016).
MARKET FORCES AND ECONOMIC OPERATIONS
Forces of the market are the elements which influence the convenience and price of the
products and services within the economy of the market. Forces of the market are
responsible for increasing the price as well as the supply and availability of products and
services (Becker, 2017).
Demand and supply: both of these are responsible for changes in price which include as the
demand increases and supply decreases this result in higher the price of the product and
vice versa (Becker, 2017).
Income elasticity: this is responsible for the changing demand as adverse income elasticity is
linked to inferior goods where an increase in income results in an increase in demand of the
luxury goods with a decrease in the normal goods demand and vice versa (Becker, 2017).
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M1
The objectives and goals of the public, private and voluntary organizations which are
Unilever, Brakes and Wellcome trust linked with the sizes and scope of the businesses. All of
these companies get affected by structure, size and scope as these impacts on their
objectives and goals. The public company aims to provide satisfaction to the customers by
providing good quality services at affordable prices and also maintain its sustainability by
earning some amount of profit. The company has to provide effective services to the
customers for which they require a large structure of the organization (Becker, 2017).
The private company aims to make a profit for the benefit of the company in order to
maintain sustainability by providing quality services to its customers. Customers are the
source of their income in which the size and structure of the company ensure that the
company has enough resources to fulfil their aims. Whereas the Wellcome Trust aims not
to make a profit as they want to help the animals and humans for their benefit and their
scope and size helps them in achieving their objectives and goals and conclude and initiate
their campaign for spreading the awareness of the business (Becker, 2017).
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