Organizational Functions and Objectives: A Business Case Study

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Business and business
environment

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Part 1................................................................................................................................................2
Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures......................................................................................................................2
Explain the size and scope of a range of different types of organisations...................................4
Explain the relationship between different organisational functions and how they link to
organisational objectives and structure........................................................................................7
Part 2................................................................................................................................................9
1. Using PESTLE analysis identify and discuss the various macro environmental factors that
have an impact upon each of the two organisations, highlighting the positive and negative
impacts using specific examples to support your findings..........................................................9
2. Apply a SWOT or TOWS analysis to both organisations to identify their key strengths and
weaknesses. Explain the interrelationships these have with the external factors previously
discussed....................................................................................................................................11
3. Present a critical reflection of key findings and evaluate how they influence the decision-
making process..........................................................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

LIST OF FIGURES
Figure 1: Functional structure..........................................................................................................7
Figure 2: Pestle analysis..................................................................................................................9

LIST OF TABLES
Table 1: size and scope of a range of different types of organizations............................................4
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Introduction
All the business nearly depends on how the business environment will affect organizational
functioning. In an environment, there are various factors that impact the business functioning or
also provide the various opportunities for effective growth and development of the business.
Different kinds of the organization are there that has its own objectives and purpose of running
their business. In the report, the two chosen organization are Mack & Jack and IKEA. The Mack
& Jack is a non-profit organization that operates mainly for social welfare and also prevent an
individual from harmful practices and racial discrimination in the society while the IKEA is a
private organization that is engaged in the business of selling and buying the assemble furniture.
This organization is operating on a huge level in different countries. Both of these organizations
have different objectives and goals along with different purposes to operate their business.
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Part 1
Explain different types and purposes of organisations; public, private and voluntary sectors and
legal structures.
Public sector organisation: A public sector organization is an institution wholly owned and run
by the government. A public sector organization is that organization that is owned at least 50%
by the government. The main objective of such an organization is to provide services to the
public while at the same time earning enough to keep functioning for the employees. Similar to
many large corporations, the government follows more of a divisional structure. The difference
from being a government department is that these organisations are separate entities, have their
boards (Bouckaert et al., 2016). The Board of the directors is responsible for running of any
company, including a PSU. For example, BBC - The world’s oldest and largest broadcasts
corporation. The BBC was established by a royal charter and is funded by a government. The
BBC provides training in business, technology, journalism.
Private sector organisation: Private sector companies are companies which are not run by the
government. They are part of a country’s economic system and is run by individual and
companies to earn the profit. The main objective of such an organization is to maximise the
profit and capture the market share and give the best customer satisfaction. For example, IKEA
is a Swedish multinational organisation that designs and sells ready-to-assemble furniture,
kitchen appliances and home products. Also, provide other useful goods and provide home
services. It has been the world's largest furniture retailer since at least 2008.
Non profit organisation: A nonprofits organization is a non-business entity that is created and
established for a particular social cause (Salamon and Sokolowski, 2016). A non-profit
organisation is an organisation that is created by some individual or government for social and
religious nature whose motive is not to ensure profits.
The main objective of such an organization is to establish accountability, trustworthiness,
honesty, among society and is volunteered towards its mission for society. For an example, The
Creative Science Foundation (CSF) is a non-profit organization, established on 4 November
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2011 in London, England, that establish a relationship between creative art, writing, films, art,
dance, science, engineering, business, socio-political and innovation.
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Explain the size and scope of a range of different types of organisations.
Table 1: size and scope of a range of different types of organizations
Different kinds
of organization
Scope Industry and
their market
position
Size Its key
stakeholders
Public A public
organization will
operate with a
serving people
scope in order to
provide the
goods at cheap
prices. Also for
example, BBC
will operate with
various
opportunities for
their business
(Witesman,
2016).
BBC is the
leading public
service
broadcaster and
the highest
earning public
radio-television
company in
Europe. It has
gained success by
good counseling
consumer relation
BBC is
headquartered in
London.uk. Its
operating
income has
amounted to
4.82 billion
British pounds
and there are
21000 numbers
of employees.
A stakeholder
will include the
customer,
government,
investor and
community
members who
are expecting a
higher
investment
return.
Private A private
organizations
scope is
different for
their different
legal structures.
Like for
instance, IKEA
Market share of
IKEA is vast and
more than 780
million customers
visit IKEA stores
every year.
The organization
will operates
with an
approximately
of 424 numerous
stores. Their
revenue is 35
billion Euros
The suppliers,
shareholders,
employee and
consumer are
the main IKEA
stakeholders
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will operates
because a
private
organization as
well as is abided
through certain
regulations. This
operates with
the business
opportunities to
expand the
business at
different
industries and
locations.
and employs
208000 numbers
of employees by
the year 2018
(Bromley and
Meyer, 2017).
Voluntary
organization
A voluntary
organization is a
vital part in
terms of making
the greater
society. The
numerous of an
organization is
enhancing and it
will shows
increasing in the
society in right
manner.
Creative Science
The foundation's
main MODEL is
sponsorship of
vacation-schools,
workshops,
seminars,
conferences,
journals,
publications and
projects.
The organization
awareness for
science and
innovation and
creativity is
vastly
acknowledged.
Currently it has
40, 000 of the
volunteers.
The main
organization
stakeholders
include
corporate
partners,
government,
patients, doctors,
volunteer and
employees.
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Foundation
(CSF) is an
example of a
volunteer
organization in
the UK which
operates because
the NPO and its
aims of serving
creative art and
innovation
(Prajogo, 2016).
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Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.
The objectives of an organization are an ultimate purpose by which an organization is conducting
and operating the operations of the business. Some of the following objectives of both these
organization are as follows:
The organizations both of them are focused on expanding their business function and activities in
the different countries rapidly all across the world through using the various aspects that can
impact on overall profitability effectiveness. In term of enhancing the process of an organization
a product that is produced must be in improved and effective manner. Also, there is a need to
adopt new and efficient technologies which are beneficial for both of the organization. So to
make the organization production process time and cost-effective is also helpful in enhancing the
organizational profitability (Adegbite et al., 2018). Even for the efficient and effective
implementation of regulatory and legal requirements in an organization which can provide
benefits to an organization as well as also lead in generating the effective results of the external
and internal environment both.
Figure 1: Functional structure
The link between organizational objectives and organizational functions is essential and puts an
impact on overall organizational effectiveness because, in such functions, it also impacts on
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overall achievement and performances of objectives and goals of the business. The organization's
functions are also focused in order to achieve organizational goals and objectives which may be
achieved through leading an effort in the direction of gaining the objectives and goals of the
organization. Both these organization is following the strategic and effective management in an
organization so that it is effective to lead their functions in the direction of gaining the objectives
and goals of the organization on time. Also, various factors are there that may impact on overall
organizational effectiveness that is related to the macro and micro factors.
Both organizations have their objectives and mission to operate their business as well as different
functional units also ensures business organizational success and growth. In an organization,
different functional unit are there such as customer support, marketing, distribution, human
resources, administration and production and thus collaboration and coordination of all such will
ensure in the accomplishment of an objective and mission of the organization systematically.
Also, an organization can face several difficulties to achieve the objectives and mission only
when such functional units are not effectively collaborating and coordination with each other
(Rahim, 2017).
The effective organization structure will also help in building both coordination and effectively
reporting among the different business units. The organization choice structure must be made
only after considering the business operation and requirements level. Also, it will help in
managing the business areas effectively as well as also helps in analysing each functional unit
performances. Both their organization management get expertise in various functions as well as
also get several benefits in terms of completing the different business functions together because
this will provide an interrelationship between an organizational function effectively.
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