Business Environment: Analysis of Organisations and Macro Factors

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This report provides a comprehensive analysis of the business environment, focusing on different types of organizations (public, private, and voluntary sectors) and their legal structures. It examines the size and scope of various organizations, linking their structure to business objectives and product/service offerings. The report explores the relationship between organizational functions and their connection to objectives and structure, analyzing the advantages and disadvantages of these interrelationships. Furthermore, it identifies the positive and negative impacts of the macro environment on business operations, utilizing the PESTLE model for detailed analysis. Finally, the report conducts internal and external analyses of specific organizations to identify strengths and weaknesses, interrelating them with external macro factors and applying SWOT/TOWS analysis to influence decision-making, using Genius Sports as a case study.
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Business and business
environment
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Table of Contents
INTRODUCTION ..........................................................................................................................4
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures......................................................................................................................4
P2 Explain the size and scope of a range of different types of organisations.............................6
M1 Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisation................................................7
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.......................................................................................8
M2 Analyse the advantages and disadvantages of interrelationships between organisational
functions and the impact that can have upon organisational structure........................................9
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples..............................................................................10
M3 Apply appropriately the PESTLE model to support a detailed analysis of the macro
environment within an organisation..........................................................................................11
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses..........................................................................................................11
P6 Explain how strengths and weaknesses interrelate with external macro factors.................13
M4 Apply appropriately SWOT/TOWS analysis and justify how they influence decision
making.......................................................................................................................................15
CONCLUSION .............................................................................................................................15
REFERENCES..............................................................................................................................16
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INTRODUCTION
The functioning of an organisation is managed through the conduct of internal and
external factors in order to maintain a positive environment within the workplace. The
employees are the main asset of organisation that helps in maintaining the structural framework
by fulfilling the needs and demands of customers and even enables in managing the social and
economic changes in an organisation. There are various kinds of factors that determine the size,
nature and environment of business in an organisation. There is an immense need to upgrade the
activities of an organisation according to the changing environment and upcoming trends. The
organisation chosen in this report is Genius sports which is a sports data and technology
company with its origin in United Kingdom (Aker, and Aghaei, 2019). It was founded in
London in 2016 with its ownership acquired by National Football League. It mainly provides
integrity services to sports leagues with the version of video streaming, media companies and
bookmakers. This report will cover the size and scope of different kinds of organisation in
business environment. It will cover the positive and negative impacts of micro-environment with
relation between the different market functions in order to achieve the objective of organisation.
It will further cover the internal and external factors with determination of strengths and
weakness of an organisation.
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures
An organisation consists of different and varied functions which are mentioned below:
Public organisation: The organisations that are administered and managed through the
functioning of government are referred as public organisations. The money that is
obtained through taxes are managed through the operational functioning of public
organisation (Barykin, Smirnova, Sharapaev, and .et.al 2021). The organisations where
there is no profit of its own consists of public organisation such as hospitals, schools, etc.
The organisation of Genius sports is also a public organisation that provides sports
services to the public in general.
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Purpose – The main objective or purpose of Genius sports is to provide the best sports services
to the public and to stand out in the crowd. It helps in bringing people together that are
passionate about their interests in the field of sports.
Private organisation: The organisation that are run through individuals or a private
person is known as private organisation. A person with two or more individuals can own
or acquire a private organisation. It may consist of small and medium enterprises with
ownership of corporations and multinational companies.
Purpose – The organisation of Genius sports play a huge role in generation of income for the
country of UK. The economy of a country is regularised through the generation of income
acquired by a private company. The main purpose of private organisation is to generate income
or profit for benefit of an organisation.
Voluntary sector – A sector which is owned and acquired without any gain of profit is
referred as voluntary sector. An organisation that is different and varies from private
sector within a civil society is voluntary sector (Bedi, 2019) . The major area is covered
through charities where the income generated is given for the welfare of needy people.
Purpose – The main objective or purpose of voluntary sector is to provide benefit to public
without any personal gain or benefit. There are wide range of activities through which the
objective and aim of voluntary sector can be achieved. It mainly works on benefiting the public
through providing of services of social welfare in order to fulfil he needs of the aided people.
Legal structure of an organisation – The foundation of any organisation is the root base for
building the structural framework of an organisation. It is very essential for an organisation to
build its legal structure in order to survive in the market for long run. The organisation of Genius
sports has build its legal structure through imbibing of legal functioning in an organisation.
The legal structure of private sector organisation consists of private companies, sole
proprietorship, partnerships, etc.
Legal structure of voluntary sector – The structure through which there can be formation of
trust and is administered through trust deed contains the legal structure of voluntary sector
(Cravo, and Piza, 2019). The main aim and goal of an organisation is defined through the legal
structure of organisation.
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P2 Explain the size and scope of a range of different types of organisations.
There are different types of organisations through which the size and scope of
organisation can be determined. Different types of organisations work towards different aim or
purposes in order to acquire benefit of organisation. It is not necessary for an organisation to
work on a large scale with inclusion of a great workforce (Deme, Ewusi-Mensah, Olagbaju,
Okeke, and .et.al 2022). The small, medium and micro are different types of organisations that
specifies the different structure and functioning of working in an organisation.
Micro enterprise – A company or organisation that does the business of buying and
selling of products in the local market. Micro credit is financed through the business of
micro enterprise.
Size – The normal size of a micro enterprise comprises of a minimum of 10 employees with
accumulation of less than a million of income.
Scope – The main purpose or scope of an organisation consists of a wide range of employment
that is provided to employees in an organisation. It is also working towards uplifting the people
of backward area with opportunities in their organisation.
Small enterprise – The operational functioning of small enterprises is done through less
investment with even lesser use of technology. There is generally single ownership of
such small enterprise with sole control and ownership in business. The resources
available in such enterprise is easily available which helps in easy functioning of its
business.
Size The size of small enterprise consists of less number of 50 employees with the
accumulation of a turnover which is less than 10 million.
Scope – The main aim of such enterprise is to conduct the operational activities of sports with
equivalent services in the area of sports. There is less requirement of civil technologies with
more work done by the labour (Fragoso-Campón, Quirós, and Gutiérrez Gallego, 2020) . The
activities of construction, manufacturing, finance and retailing are involved in the area of small
enterprise. There has also be announcement of reservation policy through the regulation o
government in small enterprises.
Medium enterprise – The business of medium enterprise includes a business that is
owned by a private person and is also independent. The limit of medium enterprise does
not exceed the limit of 50 million and has a medium limit in the accumulation of income.
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Size – The size of employees of medium enterprise is almost less than 250 employees has a
turnover of almost less than 50 million.
Scope – The main objective of medium enterprise is that it aims towards working for funding
through private equity. There is also a major contribution through innovation and marketing in
order to contribute in the development of market.
Large enterprise – The organisation of large enterprise involves a huge manpower with
huge amount of capital investment and raw material (Gray, O’Mahony, Hills, O’Dwyer,
and .et.al 2020). The production or manufacturing of goods is also done in large number
with involvement of large enterprise.
Size – The strength of large enterprise involves a total of almost 5000 employees and also has a
turnover of almost 1.5 billion with consideration of its size and structure.
Scope – The main objective and scope of large enterprise involves a huge generation of income
in order to combat the needs and demands of millions of workers working in the organisation.
In context to Genius sports, it is a medium enterprise with strength of almost 1500 employees
working in the organisation. It is a public company with net profit of more than a million dollar
in the upcoming years. The company mainly provides services of data management in sports
industry with selling of data to huge companies of media and sports books.
M1 Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisation
The structure and functioning of organisation is developed through the relationship of
goals and objectives in a particular organisation. There are different kinds of functional areas in
an organisation through which the roles and responsibilities of leaders and managers is directed
and administered. The systematic structural framework of an organisation enables in
accomplishing the goals and objectives of an organisation through production of quality products
and services (Hernandez, and Haddud, 2018). The size, scope and structure of organisation
enables in differentiating it on different roles and responsibilities attained by them.
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P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.
The activities through which the enterprise operates in a systematic manner is considered
as the activity of functioning of business. The organisation of Genius sports involves various
functions of providing data through video networking with providing of services through online
mode with the generation of income through marketing and sales (Hietler, and Pladerer, 2020).
The relationship between an organisation and structure is determined through following things
which are discussed below;
Marketing – The needs and demands of customer are satisfied and fulfilled through the
department of marketing that also helps to runs the business for a longer period of time.
The success, growth and development of business is improved in such a way that it involves;
1. The participation of complete workforce in order to consider the needs and demands of
customers through implementation of marketing strategies through its employees.
2. The affirmation of produces in order to cater the needs of customers.
3. The marking of affordable prices in order to have an increase in the number of its sales
and services.
4. The promotional growth and development of such enterprise through various promotional
programmes in order to increase its cost of production.
Finance – The income, money or assets gained through this business is management and
administered by the department of finance (Ho, Pittet, Fukumura, and .et.al 2022) . The
organisation of Genius sports manages its finance by being updated about its financial
activities in order to maintain the economic growth in the market.
The finance department of Genius sports co operates with its other departments in a very smooth
and established manner by:
1. Establishing a capable and knowledgable staff with expertise in finance.
2. Preparation of proper funds through conduct of trained activities by the people of
department.
3. Having an investment plan to further grow and develop the economic structure in the
market.
4. Having a better understanding in order to fulfil its targets of sale with more accumulation
of income.
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Human Resources – The department of HR plays a major role in combating the needs of
enterprise with the availability of various skills and functioning in organisation that aims
towards:
1. The availability of enough resources in the organisation of Genius sports in order to
manage the cost of production in larger market.
2. The management of various activities with handling and managing of disciplinary
activities in the organisation.
3. The compliance of health and safety of its employees in consideration of their safety in
organisation.
Organisational structure – The operational functioning through which the activities and
conduct of business is managed and controlled is referred as the organisational structure
(Hofmann, 2019). The organisation of Genius sports involves various structure such as Divisional structure that comprises of enormous branches – Genius sports manages its
divisional structure through divisional functioning of it in different groups with different
lines and structures. Matrix structure that enables in providing stability – The matrix structure provides
flexibility in the field of business with assigning of different tasks and functions in the
organisation.
Functional structure that separates department The functional structure of an
organisation is managed through being updated about the activities in organisation with
timely reporting to its managers.
M2 Analyse the advantages and disadvantages of interrelationships between organisational
functions and the impact that can have upon organisational structure
There are positive and negative aspects of every functioning of organisation in relation to
its structure of working. The functions done through individuals and groups is performed in a
systematic manner. An organisation is able to cater various skills and opportunities in order to
get benefit of different functioning of an organisation (Höpken, and Rehm, 2019). The negative
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element in assigning of different functions is the arousal of various conflicts and disputes among
the members of organisation due to lack of communication and management.
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.
The environment of Genius sports organisation can be determined through various internal and
external factors that are determined through PESTLE model which are mentioned below:
Political factors – The policies and actions of government enables in determining the
political factors of an organisation. The organisation of Genius sports is mainly affected
with the increase or decline in services in the field of sports. The strategy of decision-
making is also affected with the change in policies of government.
Economic factors – The aspect of finance with the factors of rates of employment,
inflation are determined through economic factors. Genius sports helps in strategising its
decisions through stabilisation of economic things with accumulation of relatable income
in the organisation.
Social factors – The social aspects of commercial activities helps in stabilising the
functioning of business. The organisation of Genius sports focuses on prioritising the
needs of its customers with the availability and use of services in order to cater the needs
and requirements of people in general. As per the changing time, people are being more
inclined towards a healthy lifestyle which in turn helps in growing the social factor of
change in an organisation.
Technological factors – The factor of technology plays a very significant role in
growing the services of sports in larger market. Genius sports has managed its services
with providing of facilities through data management and implementation of secured
services with protection of data through the organisation. The organisation is constantly
working towards increasing its technical security in order to provide quality services to
people who are aligned in the field of sports.
Legal factors The factors of licence, permit with imposition of various laws
determined the legal factors of an organisation. Genius sports is majorly affected with the
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factor of changing norms and regulations in the field of sports with increase or deduction
in its policies. The legal factors and aspects of an organisation are also majorly affected
with the change and development in organisation.
Environmental factors – The factors of climatic and weather conditions with carbon
footprints and inclusion of natural resources determines the environmental factors. The
customers and users of Genius sports are being more inclined towards security of
environment in order to fulfil the needs and demands of people with changing time.
There has been a sense of protection of environment in the minds of people which has
enabled them to make less use of things and resources that majorly affect the
environment.
M3 Apply appropriately the PESTLE model to support a detailed analysis of the macro
environment within an organisation.
Even after facing several changes by Genious sports, there still lies a potential to attract
the investors by having remarkable profits. The company has adopted the Pestle model with the
view to understand and analyse the external environment of business organisation. This is very
essential and important for conduction of business operations. This model helps in making
analysis about positions of a company including its growth graph and risk factors. Therefore,
acknowledging the the external factor directly opens many opportunities existing in the external
environment.
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses.
To make analysis of internal strength and weakness of a business organisation, tool which
is used to measure internal strength SWOT. Even for the Genious Sports SWOT analysis
important because it enables them to understand internal strength and weakness through which
they can control the internal affairs of the company except threat ad opportunities because they
are outside factors.
Strength: it signifies the area where company excel and performs well having strong
customer base and uses innovative measures for its operations.
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Weakness: These are the limitation which stops company from growth and to perform
well. It is the area where company needs to focus more in order to bring improvement for
remaining competitive.
Opportunities: it brings an option for a company to expand its business activities at large
level. It helps in expanding market and customer base.
Threats: It negatively impact on the status of a company as it brings down the
functionality of a company (lai, Hiew, Tee, and .et.al 2021 ).
SWOT analysis of Genious sports
STRENGTH
Genious sports deals preparing various
data on sports sector in association with
media company which creates unique
portfolio for its business profile.
It has strong brand value as it provides
its software to sports leagues and
organisation. (Zorpas, 2020)
its clients and customers are media
company which pay them huge
amounts for preparing data through
their software.
WEAKNESS
for Genious sports there are many
existing competition as there are many
employees form different countries
making which make comunication
harder.
The other weakness demand of data in
different language which makes them
difficult to prepare data in other
language.
For preparing data it is essential that it
provides perfect information, but
sometime it lacks in providing effective
information.
OPPORTUNITIES
The opportunities it can attract
expanding its their business profile
associating or partnering with other
tech and software development
companies.
It can ensure that all its employees can
communicate in same language.
THREATS
the greatest threat is that it may not able
to attract potential funding as there is
high competition in the market.
The other threat is the language barrier
for the company because due to this the
company can go down to dangerous
path (Tang, Liu, He,and .et.al 2019) .
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