Analyzing Organizational Structures: A Comparative Study

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BUSINESS AND BUSINESS
ENVIRONMENT
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Table of Contents
INTRODUCTION.....................................................................................................................................3
Lo1.........................................................................................................................................................4
Lo2.......................................................................................................................................................14
LO3 AND LO4.......................................................................................................................................17
CONCLUSION.......................................................................................................................................29
REFERENCES........................................................................................................................................30
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INTRODUCTION
This assignment is prepared to analyze, evaluate and compare the different organizational
structure with the application of suitable data and statistics. In part one, this assignment deals
with the detailed organizational structure. And in the past two, deals with the interrelationship
between different structures of the organization. And part three deals with the macro
environment analysis by applying PESTEL analysis and the last part deals with the
evaluation of internal strengths and weakness of the organizational structure.
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Lo1
There are different types of the organization as a private, public and voluntary organization
and their size, scope and objectives with suitable examples are as follows:
Public organization: the public organization is an organization that is held by the
government and owned and funded by the fiscal income. Its main aim is to offer solutions to
societal problems in a cost-effective manner.
For example, the ASDA group is a public organization and run its business with the help of
retail stores in many nations.
Private: the private organization is owned by the private entities and they are funded by the
stakeholders. And the main aim to earn a profit.
For example, the Best way group is a UK based private organization and it runs its operations
in the UK and Pakistan.
Voluntary: voluntary organizations are those organizations that can be held by both the
private and government entities and they are funded by charities and donations (Daft, 2015).
For example, the save the Children Fund is a UK based voluntary organization and it aims to
rescue the children from different malpractices in the society and empower them by offering
handholding.
Cooperative organization: co-operative organizations are those organizations that have
equal ownership of employees and also have equal liability and distribution of profits.
For example, the Best way group is a UK based organization and cement cooperatives organ
of it is a cooperative organization.
Charity organization: charity organizations are those organizations that deal with the
philanthropic activities as the promotion of some social cause and eradication of some social
evils in the society.
For example, the save the Children Fund is the UK can also be considered as a charity as it
aims to rescue the children from different malpractices in the society and empower them by
offering handholding (Daft, 2015).
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The best way group
The best way group is the UK based privately held organization and it was established in the
year 1976. And it has retail food and beverage wholesale outlets in the UK and Pakistan.
Size and scope: The Best way group is a large size organization and it has a co-operative
pharmacy, banking and financial services and cement and wholesale outlets. And it has a
turnover of 620 million euros.
Objective: its objectives are as follows:
 It aims to offer customer-centric services and expand its business model further.
 It aims to offer and deliver efficient and customer friendly services and integrate local
business needs
 It aims to increase the turnover by 10% in the next financial year.
Vision: it aspires to be the offer customer-centric services and achieve the leading position in
the market.
Mission: their mission is to overcome all hurdles and remain a leader in symbol and club
food and digital services.
Product and services: the Best way group is UK’s third largest pharmacy and it is a co-
operative pharmacy. They also offer food and digital services (Bestway group, 2019).
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fig 1: organizational structure of Best way group
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ASDA group
The ASDA group is the UK based leading retail store and it is the second largest retail store
across the globe. And it offers a variety of products and services to a different group of
consumers. It is one of the largest organizations in the UK and it was merged with the
Business of Wal-Mart in the year 1969.
Vision: the vision of ASDA is to be a global leader in retail services and deliver affordable
services and products in the market.
Mission: the mission statement of ASDA is to be the best-value retailer in the UK and deliver
consumer-centric services in the market. And also deliver competitive products and services
in the market.
Objective
 To offer the consumer-friendly and affordable services in the market
 Meeting the needs of all stakeholders and remain a leader in the business
 They aim to increase their profit margin by 5% and also aim to penetrate the new
market.
Products and services:
ASDA being the global retail outlet offers a range of products and services and these are
food, ASDA mobile and loan and insurance services (ASDA, 2019).
Legal structure
Fig 2: organizational structure of ASDA
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Save the children fund
The save the children fund is an organization and active in 120 and countries and it follows
the guidelines of the UN to protect the rights and education of the Child. It aims to improve
the lives of those are suffering from any type of destitution. And also works with British will
making and will aid schemes.
Objectives:
 This organization aims to deliver quality education to more than 8 million children
across the globe
 It aims to rescue the children from war-prone regions
 It aims to deliver the life-support system to become "Emergency response agency for
Children across the globe" and offer them
Vision: the organization aims to be the emergency rescue for the children across the globe
and also empower them with quality education.
Mission: the mission of the organization is to deliver the common code of conduct for the
child and be the voice of children across the borders.
Size and scope: the organization is the large size organization. It has active volunteers from
more than 120 countries and it empowers the vulnerable section of society by offering them
quality education and platforms to explore the new opportunities.
Products and services: this organization is a voluntary and not for profit organization and it
runs its operations and missions by delivering social services and raising fund for that from
different stakeholders of the society (Save the children, 2019).
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Difference between the private, public and voluntary organization
The organization is can be categorized into private, public, voluntary, co-operative and
charitable organizations and they are distinguished according to the size, scope, objectives,
market share, growth aims and sustainability of the business operations.
Small size enterprise: the small size enterprises are the enterprises that employ a fewer
number of people and they can be further divided into a micro-enterprise based on the
number of employees they appoint. They employee between 10-49 people for various job
roles
Medium size enterprises: medium-size enterprises are the enterprises that employ more than
50 people and they can be further divided into different categories based on the type of
business function and operations. They employee between 50-249 people for various job
roles
Large size enterprises: the large size enterprises are the enterprises that employee number of
people. They may employee more than 250 people for various job roles. They can active
business operations in many nations.
PARAMETERS SMALL MEDIUM LARGE
Goals and objectives The ultimate aim of
any business is to
earn profit and
expand the business
unit and the same is
the objective of the
business units of
small size (Brunsson,
and Olsen, 2018).
This organizations
also aim to maintain
and support the
growth of the
organization and yield
more profit
The ultimate aim
of large size
organizations is
to earn maximum
profit and attain
the growth and
also expand its
business
operations in
order to attain
leadership in the
market.
Market share Market share is the
percentage
consumer’s captures
Market share is the
percentage
consumer’s captures
Market share is
the percentage
consumer’s
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by the organization
in the market and it
is limited to the
regional market for
these organizations.
by the organization in
the market and it is
limited to the
domestic market for
these organizations.
captures by the
organization in
the market and it
is limited to the
national and
international
market for these
organizations.
Profit share The percentage of
profit shared by this
organization is very
limited and but there
is ample scope for
growth (Saviotti,
2018).
The percentage of
profit shared by this
organization is
limited as they have
business operations
limited to the local
markets but there is
ample scope for
growth and
development
The percentage of
profit shared by
this organization
is huge and it
depends on the
marketing
strategy of the
business unit.
Growth and
sustainability
Growth and
sustainability of the
business unit depend
on the risk factors in
the market and it is
very low for these
organizations
(Brunsson, and
Olsen, 2018).
the scope of growth
and sustainability of
the business model of
medium-sized
enterpriser depends
on the risk and it is
moderate for
medium-size
enterprises
the scope of
growth and
sustainability of
the business
model of large
medium sized
enterpriser
depends on the
risk and
competition and
it is very high for
large size
organization
(Saviotti, 2018).
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Transnational organization: the transnational organizations are those organizations that
have active business operations and functions and other business outlets in more than one
nation except having any host nation.
International organization: international organizations are the companies that have active
business operations in the local market or domestically but penetrate the global market also.
Global organization: global organizations are the organizations that have active business
operations across the global. And they have aligned their business functions with centre or
head office business unit. And the diverse range of operations, decision and expansion took
place here (Noe et al., 2018).
Market forces and economic operations
There are varieties of market forces that affect the smooth functioning of the business unit
and they have the power to change the entire business structure by size and profit
Demand and supply: demand and supply are the critical factors for the success of the
organization and the increase in demand means the expansion of the business and the
reduction in the demand may lead to the contraction of the business unit. So, the profitability
is directly proportional to the size of demand in the market.
Income elasticity: income elasticity can be defined as the factors that affect the demand for a
particular product and it can be both positive and negative. The negative elasticity means low
purchasing power and demand for the products of low quality and positive elasticity means a
higher level of income and demand for the goods of higher quality (Noe et al., 2018).
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Aims and objectives of different organization
The ultimate aim of any business is to earn profit and expand the business unit and same is
the objective of the business units of small size aim of the private organizations is to earn
profit and maximize their growth and development opportunities. And the main aim of
voluntary organizations is to offer solutions to the societal problems in a cost-effective
manner. And also aims to bring changes in the society and to generate the revenue by
diversifying their services and also by geographical expansion. For instance, the Best way
group aims to offer the consumer-friendly and affordable services in the market Meeting the
needs of all stakeholders and remain a leader in the business. They aim to increase their profit
margin by 5% and also aim to penetrate the new market (Fairfield,2016).
The aims of the organization are to be in line with the vision, mission and objectives of the
business and there is a need to encapsulate the agenda in the business strategy to maximize
the growth. For instance, the business operations of the ADSA group are to deliver affordable
goods to the average income earning population and also expand the business by delivering
valuable services to the business units. The ultimate aim of private organizations is to earn
maximum profit and attain the growth and also expand their business operations in order to
attain leadership in the market (Battaglia et al., 2017).
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