Business Report: Business Structures, Functions and Objectives

This business report provides a comprehensive analysis of various types of organizations, including public, private, and voluntary sectors, with a specific focus on Marks and Spencer. It examines the size and scope of these organizations, exploring their legal structures and objectives. The report delves into the interrelationship between different organizational functions, such as marketing, finance, and human resources, and how these functions contribute to the achievement of business goals. Furthermore, it analyzes the linkage between organizational structure, size, and scope, and their impact on business objectives. The report also critically assesses the complexity of business structures and their interrelationship with various organizational functions, providing insights into how these factors influence overall organizational performance and sustainability.

Business report

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1.......................................................................................................................................3
1. Different types and purpose of organisations; public, private voluntary and legal structures.
.....................................................................................................................................................3
2. Size and scope of different types of organisations..................................................................5
3. Relationship between different organisation functions and its link to organisation objective
and structure................................................................................................................................6
4. Analysis of structure, size and scope of different organisations linkage to business
objectives.....................................................................................................................................7
5. Critical analysis of complexity of business structure and interrelationship with different
organisational functions..............................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
.......................................................................................................................................................11

INTRODUCTION
Business is an entity or an organisation where group of people work together to sell
product and services and thereby earning profit. Organisations exist in the environment which
consist of various factors that affects operations and functions of business. It consist of internal
and external factors which are very complex in nature and changes from time to time. In this
report chosen organisation is Marks and Spencer which is a British multinational retailer
headquartered in London, UK. It deals in luxury home and food products. This project will
discuss about the size and scope of the respective organisation as well as interrelationship
between different organisational functions. In addition to this it also analysis the complexities of
different types of business structures.
MAIN BODY
TASK 1
1. Different types and purpose of organisations; public, private voluntary and legal structures.
Business organisations plays a crucial role in satisfying the individual needs by catering
different types of products and services. The purpose of business is to earn income by meeting
individuals demand.
Public sector organisation
It consist of all those organisation which are owned and operated by government to
provide services to general public (Deasy, and et.al., 2015). Government raises fund through
variety of sources such as by charging fees and tax to individuals. For example – National health
service (NHS) It is public health service in UK.
Legal structure- NHS has working with state, central and state government to meet the
requirement of individuals at reasonable rates.
Types of legal structure
Local government- Local government has control over the specific geographic region
and cannot enforce laws on wider area. They are responsible for health of local population.
State government- Government specifically make laws for the state and are responsible
for fulfilling the needs of people within it. They have specific power and responsibilities for
welfare of individuals in particular state.

Central government- They have the responsibility and power to pass laws for the whole
country and hold absolute power of the whole country.
Purpose of NHS
The main purpose of NHS is to provide health care services to the individual patients and
their families. It also focus on providing different range of services according to the needs and
preferences (Gupta, 2013).
Stakeholders of NHS- Academy for health science(AHCS), National school of
healthcare science( NSHCS), North west healthcare science network and Heath science
professional bodies etc..
Private sector-
These are the enterprises which are run by the private individuals rather than government.
As Marks and Spencer is private British multinational retailer company which is founded by
Thomas Spencer and has specialises in clothing and luxury food products.
Organisational structure- M&S have flat organisational structure which has limited
levels of administration and management. This encourages employees to take active part in
decision making process.
Types of legal structure
Trader- Here, the individuals makes their own decision of starting the business and are
responsible for managing the business and have full control on business assets. They are solely
responsible for all the profits and losses of company.
Partnership- When two or more parties cooperate to manage or operate business they
share profits and losses equally and have same liabilities towards business.
Purpose of Marks and Spencer
The main objective of Marks and Spencer is provide standard quality products related to
home, and luxury food products to satisfy needs of customer and maintains long term
sustainability in market (Hilton and Platt, 2013).
Stakeholders of Mark & Spencer- Employees, customer and owner care the majot
stakeholders.
Voluntary association- It is a union of group of members who voluntarily enters into an
agreement to work for the specified social purpose. These associations made by the group

members work for the society only not for earning income. For example Oxfam is voluntary
organisation which works for social cause and not foe earning profit.
Structure- Members are responsible for all legal structure and works for the welfare of
general public. They also take responsibility for debts and works for the social welfare of public
at large.
Types of legal structure:
Trustee- Individuals to whom legal right is provided for the benefit of beneficiary for charitable
purpose. They provide funds to the organisation to perform business operations.
Charity- Organisation which provides money, food and clothes to the one who are in
need. It also raises money in order to help sick, poor or disabled people to provide them certain
facilities(Kew and Stredwick, 2017).
Purpose of Oxfam
To provide services which benefits society at large by providing daily necessaries but not
with the motive of earning profit. Its main aim is to remove poverty from the country and helps
in maintaining sustainable economic development in the country.
Stakeholders of voluntary associations- Generally the stakeholders are investors,
lenders, local communities and local authority.
2. Size and scope of different types of organisations
Scope of organisation consist of different activities of business. Marks and Spencer is a
well established brand name through out the world for its luxury home and food products. It
deals in various food product lines as well as clothing and luxury home products in United
kingdom.
Size and scope of M&S
Marks and Spencer has began to increase its size of its food halls and cut back to
fashionable clothes and its sales continue to rise. They can increase their product lines to food
products category as well employ more staff to carry out the production process.
Mission
Its mission is to make superior quality products which is accessible to all its customer
(Klem, 2013).
Vision

Its vision is to experience superiority in its quality and improve its competitiveness by
meeting changing needs of customer.
National health services
NHS it is publicly funded health service which provides health care facilities to all
individuals according to their needs and requirement.
Size- It determines with the world's biggest employer with approx 1.7 million workers
across England.
Scope- To integrate core staff values with high quality and safe care for its patients and
communicating with them properly (Luo and Zhao, 2013).
Mission- To provide best services to individuals according to their requirements.
Vision- Enabling people to stay fit and healthy through quality service.
Oxfam
Oxfam in UK is providing services to the society not for earning profit but for the social
cause and support in the enhancement of living standard of people. Its main aim is provide food ,
money and shelter to the needy people and helps in maintaining standard of living.
Size and scope of Oxfam
Oxfam performs its operations in around 90 countries in the whole world to achieve goals
and objectives by working for society. Main scope is to eradicate poverty by helping poor and
disabled people and to maintain economic stability in the country.
Mission -To eradicate the poverty and provide help to the needy people (Pulver, 2012).
Vision- Its main vision is to provide healthy living condition to all individuals in society
and make the world free from poverty.
3. Relationship between different organisation functions and its link to organisation objective
and structure.
Organisational structure
It is the hierarchical arrangement of lines of authority , responsibility and duties of an
organisation. It defines how the roles, power and responsibilities are assigned, controlled and
coordinated and also analyses the flow of information between the different levels of
management. There are different types of organisational structures such as functional structure,
matrix structure and the flat hierarchical structure which can be adopted by Marks and Spencer.

Hence Marks and Spencer follows flat organisational structure with minimum level of
management and administration.
Organisations have different departments which progressively functions and contribute in
the accomplishment of organisational goals. Functional department in an organisation are
interconnected with each other which is defined as follows-
Marketing department
The main objective of this department is to identify the needs of potential customer and
providing goods accordingly. Marketing department of MARKS and SPENCER is properly
evaluating the customer by analysing their needs and wants to design products accordingly. For
this purpose managers of M&S connects with the finance department and human resource
department. With the help of finance department they properly analyses the budget with them
and start thinking for production as finance department is responsible for providing funds for
carrying out production process and with human resource department they are able to find
prospective candidates which can face challenging situations of the market and able to create
brand loyalty of the firm (Sena, Ferreira and et.al., 2012).
Finance department
It plays a important role in functioning of other departments by providing adequate funds.
It properly analyses the fund available with them and helps in proper auditing, accounting and
controlling company's finances. Finance people are responsible for assigning budgets to other
departments and increasing revenue while marketing department helps in effectively promoting
goods and services of firm so that more sales can be generated. Finance department provides
funds to all other departments so that their operations can be performed in an effective way and
objectives can be attained.
Human Resource Department
HR department is responsible for recruiting and selecting the prospective candidates for
properly conducting the business operations. It performs various functions such as
compensation, hiring and selection of employees. HRM department of Marks ans Spencer
provide information to all other departments related to employee knowledge and skills and which
helps them in proper transfer of employee in departments. This type of interrelationship among
the departments in organisational structure helps in proper execution of task and helps in
attaining business goals.

From the above information it has been concluded that human resource, finance and
marketing department of Marks and Spencer are interconnected with each other and helps in
achieving respective organisation's objective (Siewiorek and et.al., 2012).
4. Analysis of structure, size and scope of different organisations linkage to business objectives.
Structure outlines the certain activities that need to be executed in the organisation to
achieve desired objectives. It also includes various roles and responsibilities of employees and
determines flow of information in management.
Size and scope of respective organisation depict its its capacity to expand its business
operations and achieve increase sales and revenue for respective company by satisfying
consumer demands. There are different organisational structure such as matrix structure,
functional structure as well as flat hierarchical structure. As discussed Marks and Spencer
follows flat hierarchical structure which involves minimum level of management and allows
employees to take part in decision making process of the company as well as makes the integral
part of organisation (Siewiorek and et.al., 2012).
Organisational structure helps in achieving business objectives
Private sector-As it promotes faster decision making allows respective company to
quickly respond to any issue or concern which avoids delay in task and allows company to
achieve its objectives.
Public sector-It also requires less dominance and supervision as government regulates it
and by assigning them roles and responsibilities to achieve targets of respective company.
Government undertakes all the responsibilities for the execution of business operations and help
company to achieve high profits.
Voluntary organisations- They just follow simple methods and practices which benefits the
society. Their objective is to serve the society and not making profits. The services provided by
them helps in serving the society as well earns the objective of increasing the standard of living.
The structure is flat which have no administrative level and requires very little time in execution
of business operations.
Size and scope of different organisation help in achieving business objectives
Size and scope of different business firms can directly helps in learning business
objectives as they can increase their product lines such as marks and Spencer which can increase
their product lines and increase their scope worldwide which in turn increases their potential

customers as well as increases the scope of the respective organisations. Increase in the size of
firm in context to number of employees it helps in generation of more ideas and increases
productivity and helps in achieving business objectives.
5. Critical analysis of complexity of business structure and interrelationship with different
organisational functions.
There are different types of business structures which the organisation can adopt are as follows-
 Sole proprietorship- It is the simplest business structure which is carried by a single
individual who is responsible for managing and taking decisions. Sole proprietorship
comes under the private sector enterprises which has many advantages and
disadvantages.
Advantages
It is easy to start and there is independent decision making and facilitating flexibility of
operations hence there is no linkage to any department as they carry out all operations
individually (Kew and Stredwick, 2017).
Disadvantages
There is no managerial level in the sole proprietorship and hence there is requirement of the
same for taking decisions effectively.
 Corporation- It is a bit complex organisation which comes under the control of
government. Government run these business organisations and provide services to
general public. These comes under the public sector enterprises (Deasy, and et.al., 2015).
Advantages
All the individuals are provided with same level of service irrespective of income and
status and works in relation to other departments of organisation to achieve goals.
Disadvantages
There is always a monopoly of the government to impose heavy taxes and duties on
public by a way of exploiting them as there is no managerial decision.
 Non profit- This type of business structure comes under the voluntary sector of the
organisation where business is run for serving the society and not with the motive of
earning profit.
Advantages

It helps in achieving its business objective of serving the society and not for earning
profit. It has no linkage to other department in the organisation.
Critically analyse the interrelation among different business firms
Their are different business firms which operates their business in the form of
partnership, sole proprietorship and non profit business firms which regulates their business
accordingly and it leads to disturbances in its practices as because of different hierarchy structure
and leads to difficulty in attaining business goals. Moreover, organisational function are
interrelated with each other and help in achieving goals and objectives of company. Explanation
of these are as follows :- Finance department – This is the division which prepare budget for marketing, research
and development as well as allot them fund also for their daily basis activity.
 Marketing department – It is the department which is related with sales and distribution
because products will be sale with assistance of marketing division as well as funds are
given by finance department for their daily activity.
CONCLUSION
From the above report it has been concluded that business organisations play an
important role in providing goods and services to the individuals and earn profit by satisfying
their needs and wants. Apart from this business organisation has several departmental functions
which are interlinked to each other and helps respective company to attain its goals and
objectives. Moreover it also analyse the scope and size of different business organisations and
their linkage to organisational functions and helps in attaining business goals.

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