Business and IT Environment: Analysis of Organizational Structures

This report provides a comprehensive analysis of the business and IT environment, examining different organizational structures, including private, public, and voluntary sectors. It delves into the specifics of each sector, providing examples like Ryanair, NHS, and the Aegis Trust. The report utilizes PESTLE and SWOT analyses to assess the macro-environmental factors and internal strengths and weaknesses of organizations. It explores the interrelationships between various organizational units, such as production, finance, human resources, and marketing, highlighting their impact on business performance. The report concludes by summarizing the key findings and emphasizing the importance of understanding the business environment for effective decision-making and strategic planning. The report also includes an introduction, conclusion, and references to support the analysis.

BUSINESS AND IT'S
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different type and purpose of organisation, public, private and voluntary sector and legal
structures.....................................................................................................................................3
P2 Explaining the size and scope of different types of organisation..........................................4
TASK 2............................................................................................................................................5
P3 Relationship between different organisational structure........................................................5
TASK 3............................................................................................................................................7
P4 PESTLE analysis with positive and negative impact on the organisation.............................7
TASK 4............................................................................................................................................9
P5 Internal analysis to identify the strength and weakness of the company...............................9
P6 Strength and weakness interrelate with external macro factors...........................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment refers to both the internal and external factors which are able to
affect the business by affecting companies different organisational function. It is the collection of
entities, individuals and other factors. This report is based on the factor which has a long term
impact on functions and operations, according to size, scope based on different analysis like
PESTLE and SWOT (Arat and et. al., 2020). I have done this work with my Analyst Mrs
Peacock. She has helped me in reviewing selection of companies on her behalf.
TASK 1
P1 Different type and purpose of organisation, public, private and voluntary sector and legal
structures
There are different types of organisation which are categorised on the basis of ownership and
they are Private sector, Public sector and voluntary sector.
Private Sector- These are the organisation which are driven by profit and are owned by
the individuals. Owners, shareholder and investors are the one who get benefited by the profit.
Private organisations are those which are financed by the money from the bank loans and from
the different shareholders.
Purpose- The main objective of this sector is to earn more and more profit and manage to
develop good brand image (Afonso and et. al., 2020). there is need to monitor and control
different business activities in order to manage the functioning in effective manner.
Legal Structure of Private Organisation
Sole Trader- These are business which are owned by the one individual. Their size is generally
small. Some private sector work areas include Hairdresser, Electrician, Butcher. Colombus
photographed is the sole trader business which having a single owner and is able to get all the
profit and it liable to pay all the taxes.
Partnership- These are the business which are having 2 but having less than 20 partners.
Lawyer, doctor, dental practice and real estate agents operates as the partnership. The partner
who invested in the business but is not active in the day to day activity or business are called as
sleeping partner.

Private limited companies- These are the companies are separated through the owner who has
owned that company. Here, company finance is separated from the personal finances. These
companies are divided into equal part which are called as shares.
Public Sector- This type of sector is owned by the government. These provide effective
benefits to the company for managing . Due to government property they are run by the money
raised from the taxes (Solomon and et. al., 2019). These are involved in managing work of
different business activities properly.
Purpose- The main purpose is to help the community by offering their services to them.
Legal structures- The legal structure of the public organisation related to the highly controlled by
the government. The government has the power to take all the decisions. Public health services
are the public organisation which have the main objective to provide the health care.
Voluntary Sector- These are the sector which is run by the help of trustees and they are
owned and run voluntarily. They are run for the purpose of helping the community and are not
profitable in nature. They are operated with the donation and gifts. Whenever there is any profit
then these profit are reinvested in the organisation (Burgin and et. al., 2016).
Purpose- This type of organisation purpose is to make the world a better place to live.
Legal Structure- The legal structure of this sector is to manage the top level by executing the
various functions with financial resources.
P2 Explaining the size and scope of different types of organisation
Private
Size- Ryanair is a private company which are having the largest private employer in UK. They
are having about 2365 store all over the UK and having 367,000 staffs and about 250,000
employees in the business.
Scope- Company is focusing on the higher value to the customer, where they are needed to
provide the satisfactory services and products.
Purpose- The main purpose of the Ryanair is to earn more profit and increase the high market
share (Hart and et. al., 2017).
Legal Structure- One of the legal structure of the Ryanair is their governance model. Here,
people are dealing with the associated shareholders and are focusing in dealing with the strategy
in the macro environment situations. According to the legal structure they are the part of the
company.

Public
Size- NHS is a public sector organisation who is employing about 1.6 million people which is a
larger number of people are employed here.
Scope- They are having the wide scope where they like to cater one million of the patients in
only in 24 hours. They are having the four major reforms which are in the England, Northern
Ireland, Wales and in Scotland (Qureshi and et. al., 2017).
Purpose- It is a multiple organisation where each organisation having its own recruitment and
vacancy team.
Legal Structure- National health services (NHS) are contracting with the central government for
providing the mental health related services. The latest focus of government is to focus on the
foundation of the NHS.
Voluntary
Size- The Aegis Trust is the NGO which is non profitable in nature and is founded in 2000.
Scope- They are international organisation which scope is to deliver the peace and stability and
helping the survivors to rebuilt their life.
Purpose- The organisation having the purpose of giving the experience form to the survivors and
to get the experience who are the genocide victims (Gerlitz 2017).
Legal structure- They are trying by using the education, to encourage the peace and make the
world for living. They also research for preventing the genocide and campaign to protect form
the risk
Private limited
The private companies are working within market for increasing profits and money. They
are involved in managing and controlling different functions for sustaining in market. There are
basically following advantages of private limited companies -
Limited liability - These have to face financial trouble and stakeholders and thus , there
are proepr regulations for managing the business activities.
Restricted trade of shares – There are some restrictions for transferring the sales of
shares.
Continued Existence – A private limited company is different from sole proprietorship as
it is owned by single person.

 Background: Ryanair is an Irish low cost airline which was founded in the year 1984.
This company has started operating in Dublin and London Stated airports.
 Vision and Mission: To become one of the best airlines across the world.
 Objectives: The objective of Ryanair is to increase profits and sales.
 Products : This company provides airline service to people across UK.
 Size: Ryanair operates in more than 300 Boeing 737-800 aircraft, with a single 737-
700 used as a charter aircraft, as a backup, and for pilot training.
 Structure: Lean organisational structure is adopted in Ryanair.
PLC (public limited company)
A public limited company is legal designation of a limited liability company (LLC). Companies
which are listed on London Stock Exchange(LSE).
 Background: The Crown Prosecution Service (CPS, or in Welsh: Gwasanaeth Erlyn y
Goron). It is headed by the Director of Public Prosecutions (DPP).
 Products and services: This company provides criminal prosecution in England and
Wales.
 Vision: The vision of this company is to provide prosecution service to clients.
 Mission: The vision of this company is to provide effective management of clients and
help them in legal considerations.
 Size: This provides service across UK.
 Objectives: The objective is to enhance the application of legal authorities.
 Structure: Hierarchical structure of organisation.
Voluntary sector
These are those organisations who work for welfare of society and their motive is not to
earn money or profits. An example of voluntary sector organisation is National Health Service. It
provides healthcare service across UK.
 Vision- “To increase health care conditions.”
 Mission- “To enhance the way in which health services and conditions are provided to
people”
 Size: The services are provided in Wales, England, etc.
 Structure: Matrix organizational structure. .

TASK 2
P3 Relationship between different organisational structure
There are different functional units in an organisation which works parallel in the organisation
gives a productive result in increasing the business.
Production unit
It is the unit which main work is related to the production of the goods and services which is
produced according to the requirement or the demand from the target market. Production Process
has made the Ryanair one of the most selling and successful food retail company in the UK. By
having the other brand product, the company also produces its own brand product to meet the
requirement of the customer. The production unit in the Ryanair has became one of the most
important unit because it is the unit which is able to fulfil the requirements of the customer
which are likely to have the good quality product in less prices. The company having the
interrelationship with the other unit like finance department and the marketing department of the
company. This helps in the forecasting the demand of the customer in the marketplace and helps
in the effective production of the company (Mills and et. al., 2019).
Finance unit
It is the department which is used to take care about all the financial activity within the
company where all the financial activity is recorded in the ledger, cash-book and balance sheet.
Each company and department requries the financial resources for the effective function in
which this department is used for maintaining the such activity. The company Ryanair is also
having its financial unit which maintain all its record and help in the functioning in well manner
in the organisation or company where it is required for the proper functioning of the TESCO.
HRM unit
Within an organisation, HR department is one of the most important that helps in
managing and controlling work associated with employees. Ryanair is the company which is
helping the Human Resource department. Which is good for the company where the one of the
main work is to provide the company well and active eimplo9yees which are able to work in the
company and can help in increasing the profitability of the company. They are able to hire the
best worker for the Ryanair which directly or indirectly helping in the productivity of the
company.
Marketing and sales unit

It is the main unit which is required to the company for taking to the customer mind to have their
shopping from their company or supermarket. Marketing department is the unit which is able to
aware the customer in the market to make their purchase from their brand. Ryanair is having the
best marketing unit in the country which are well aware that the people of the country for their
brand and company which directly promotes the sales of the company and here sale department
is the full fill the stock for the purchase. The sales of the product is totally depends on the
marketing technique which is directly associated with the marketing unit (Baines and et. al.,
2017).
The structure of any of the organisation which are having different structure for the
proper functioning of the company which helps in increasing the brand value or the productivity.
The structure depends on defined as the way through which various activities are performing
well in their departments. Ryanair is having different structure for the different functional unit
like for the governance it is having the hierarchical structure and for the store it is having the
layer of the structure which helps in the proper functioning in the large stores. These structure
are different which is depending on the different size of the store (Bergh and et. al., 2016).
Financial structure- It is the type of structure which functions have to performed by
different department like sales and service departments.
Divisional structure- It is the structure which is related to dividing the organisation
functions which is according to the various categories of the product.
Matrix structure- It is the structure which is the combination of the divisional and
functional organisational structure. In this there are many applications for various product of
categories according to functional department.
TASK 3
P4 PESTLE analysis with positive and negative impact on the organisation
PESTLE analysis is the framework which is used to analyse the macro environment of
any organisation as well as their factors and effect which can influence operation of the business
unit. Here, Ryanair is the multinational company which is having its business in the different
country as well as in the UK.

Political factor-Since, the company is multinational and operates its business worldwide,
so the global political factor highly effect or influence the Ryanair business. It may include the
different act of legislation, political stability and the tax rates of the country where the company
is running its business. Due to in this COVID effect the world is facing the financial problem, so
the government is asking these company to provide some job for the domestic population. The
company is able to increase the employment which is also the reason for having more business in
the market. Due to having the multinational company it is having more employee and more
department in it which is able to adjust easily whenever there is any change in the current and
future legislation and able to adjust in the policy accordingly (Manning 2017).
Positive effect- The change in tax due to having the multinational brand they are able to
maintain the profit but competitors and not able. Ryanair has to follow all legal regulations while
providing service in any country.
Negative effect- This stability is the cause of decreasing the profit of the company. It is
seen that Ryanair will have negative impact due to some of the political rules.
Economic factor- It is the main factor which are able to effect the business. As discussed
above in this COVID situation, there is negative impact on the global economic and due to this
the economy of the all the countries are facing recession. The earning of the individual has gone
down and many of them have loose their job. This effect them in not spending more in the
market which ultimately decrease the demand and sale of the company.
Positive effect- The competitors are not able to maintain their economy for the business
which is beneficial for the TESCO.
Negative effect- It company is facing problem in sales. If UK economy declines, then it is
not easy to conduct the business operations.
Social factor- It is the factor which also effects the Ryanair business in this the people are
having their own schedule which don't allow to give their time in shopping physically because it
needs more time, so, they try to buy the product online in which the delivery is done according to
their appropriate time which include the fast delivery and flexible return policy. Obesity is one of
the big issue now a days in the society where customer want organic product which have not any
side effect on their health. So the company is trying to provide such type of product in their
supermarket to full fill the customer needs (Kraft and et. al., 2016).

Positive effect- There is need of customers to have more secure environment due to
COVID 19. Ryanair has to take more effective precautions for providing services.
Negative effect- The cost of the company has increased which give the less profit.
Technological factor- In this changing and updating technology world, Ryanair needs to
have change in its technology which is online shopping and fast delivery. The self-service
checkout is one of the best tech update for the customer. In this, customer is able to save their
time and it also helps in the reducing the labour cost in the company which is beneficial for both
company and customer. The different online payment option also give the large number of
option for paying their bill amount.
Positive effect- It save the time and labour cost. When new technologies are used within
this Airlines then it is easy to manage the customer satisfaction level.
Negative effect- Need huge amount for being update to the technology. Lot of fund is
required to adopt new technologies.
Legal factor- It is the factor which includes the changes in law or policies which effect
the business of Ryanair where the company is need to follow all of them. Few year before in year
2006, 17 workers of the Ryanair has filled the discrimination charges on the company which was
bases on gender and age.
Positive effect- It gives the competitive advantage to the company.
Negative effect- It need to invest more amount in maintain the new laws.
Environmental factor- With addressing the environmental issues, Ryanair has taken
different steps for protecting the environment. The pressure in not only form the government but
also from the public which make them to decease the waste in production and also the company
has changed their packaging material which was often used the plastic. Ryanair is encouraging
their customer to shop with tesco.com in this the van uses the fuel-saving route and also it
collects the plastic bag from the customer and they recycle them (Al-Kaabi and et. al., 2019).
Positive effect- Due to taking different action for protection, people like to buy their
product.
Negative effect- The cost of the company has increased due to resolving the plastic
issues.

TASK 4
P5 Internal analysis to identify the strength and weakness of the company
Swot analysis
SWOT analysis is defined as a framework used for analysing internal strength and weakness of
an organisation. It explains different opportunities of company within marketplace.
SWOT analysis of NHS
Strength Weakness
NHS has effective performance due to proper
management of business functions and
activities.
There are organisational factors which have
increased costs within NHS functions. This has
become weakness as company has to invest a
lot in providing healthcare facilities.
Opportunities Threats
There is opportunity of new business initiatives
present within NHS for managing and
controlling expansion in other countries.
Main threat is that negative organisational
performance can affect the company's
performance.
SWOT analysis of Ryanair
Strength
 It is a well reputed airlines providing service in UK.
 With using the optimal technology they are having different product line.
Weakness
 To become the price leader brand, Ryanair is using the strategy which is cost leadership
which sometimes gives the loss in profitability to the business.
 The company having the poor operational performance and also in targeting market
which can said as the weakness of the company.
Opportunities
 They are having the opportunity for growing their business as online and home delivery
will increase their business more.

 Due to having a big brand the company have the opportunity to expand its business in
other country and also having the opportunity for take the business on track where the
business in not performing well (Capuder and et. al., 2020).
Threat
 Flight prices are getting higher around the world which make the customer to buy less
price or cheap product which is offering by Ryanair competitors which can be a big
problem to the company later on.
 Rising in raw material cost leads the company to make less profit which is a greater threat
for the company in longer period of time.
P6 Strength and weakness interrelate with external macro factors
Political
Strength- Ryanair follow all the rules and regulations which are made for the business and are
able to implement which are the part of political factor which can ultimately able to affect the
business. They are able to support the political party for smooth run of the functions of the
business.
Weakness- Increasing in the tax rate which are affecting the business and cause the less profit in
the business.
Economy
Strength- Serving the nation by selling the product, it helps in the economic contribution in
different country where this company is available.
Weakness- The Brexit referendum and COVID has affected more in the economy which leads to
the negative impact.
Social
Strength- The main objective of the Ryanair is to work on the expectations of the customer
which gives them the profit. They are tying to sell their product on low cost to get more and loyal
customer for their business which is also beneficial for the society (Gill and et. al., 2017).
Weakness- The is continuously changing in the need and demand of the product which is taking
lots of adjustment for the company which ensures the survival on long term.
Technology