Organisational Types, Functions and Structures Business Report

This report, prepared for a BTEC Level 5 Higher National Diploma in Business Unit 1, examines diverse organizational types, including profit-based (e.g., Under Armour) and non-profit entities (e.g., Habitat for Humanity), their structures, and functions. It explores business objectives, legal structures (sole proprietorship, partnership, private limited company), and the differences between small, medium, and large organizations. The report analyzes how organizational size, scope, and structure link to business objectives and product/service offerings. It also delves into global growth, international, global, and transnational organizations, comparing franchising, joint ventures, and licensing. Furthermore, it investigates industrial structures, market forces, economic operations, stakeholder responsibilities, and the interrelationships between marketing, finance, human resources, and operations. Finally, it discusses various organizational structures like bureaucratic, post-bureaucratic, and matrix structures, and how these functions relate to a company's mission and objectives.

BTEC Level 5 Higher National Diploma in Business
Unit 1: Business and the Business Environment (15 credits) (L/508/0485)
Assignment 1
Assignment Title: Organisational Types, Functions and Structures
Student Name: Navroop sandhu
Class: BDB15
Assessor Name: Miss Sabrina Tsang
Date issued: 30/08/2021
Completion date:12/10/2021
Submitted on: 12/10/2021
Learner declaration
I certify that the work submitted for this assignment is my own and
research sources are fully acknowledged. I understand that
“PLAGIARISM” means taking and using the ideas, writings, works or
inventions of another as if they were my own and will be treated as
disqualification.
Student signature: navroop sandhu Date: 12/10/2021

Contents
Higher Nationals .............................................................................................................................3
Assignment Brief – BTEC (RQF)..................................................................................................3
Executive Summary.............................................................................................................................11
1)Different Organizations....................................................................................................................12
1.1 Profit Organization........................................................................................................................12
1.2 Non-Profit Organization.................................................................................................................14
1.3 Non-Government Organization.....................................................................................................15
2) Supply of goods and services...........................................................................................................17
3) Micro, small and medium sized enterprises....................................................................................18
4) Business objective...........................................................................................................................19
5) legal structures................................................................................................................................21
5.1 sole proprietorship........................................................................................................................21
5.2 partnership....................................................................................................................................22
5.3 private limited company................................................................................................................23
6) difference between large, medium-sized and small organization...................................................25
6.1 large organization..........................................................................................................................25
6.2 medium-sized organization...........................................................................................................27
6.3) small organization........................................................................................................................29
6.4) Analyse how the structure, size and scope of different organizations link to the business
objectives and product and services offered by the organization.......................................................30
7) Global growth and developments of international, global and transnational organization............33
7.1 international organizations............................................................................................................33
7.2 Global organizations......................................................................................................................33
7.3) Transnational organizations.........................................................................................................34
8) Different between franchising, joint venture and licensing.............................................................35
8.1 Franchising.....................................................................................................................................35
8.2 Joint Ventures................................................................................................................................36
8.3 licensing.........................................................................................................................................37
9) Industrial structures and global competitive analysis......................................................................38
9.1 Porter’s five forces of Under Armour............................................................................................38
10) Market force and economic operation..........................................................................................40
10.1 Scarcity and choice......................................................................................................................40
10.2 supply and demand.....................................................................................................................40

10.3 Income elasticity on demand.......................................................................................................40
11) stakeholders and responsibility of organizations..........................................................................41
12) The role of marketing, finance, human resources management and operations and the
interrelationships................................................................................................................................43
12.1 Marketing....................................................................................................................................43
12.2 Finance........................................................................................................................................44
12.3 Human resources.........................................................................................................................45
12.4 Operation....................................................................................................................................45
12.5 advantage and disadvantage of Interrelationship.......................................................................46
13) How function relate to Under Armour mission and objective.......................................................47
14) organizational structure................................................................................................................48
14.1 Bureaucratic................................................................................................................................48
14.2 Post bureaucratic.........................................................................................................................49
14.3 Parent Organization.....................................................................................................................49
14.4 Strategic business unit (SBU).......................................................................................................50
14.5 Matrix..........................................................................................................................................50
14.6 Functional levels..........................................................................................................................51
Reference............................................................................................................................................55

Executive Summary
The purpose of this project is to examine various firms based on their kind, size, scope, and
functions within an organization. I'm mostly interested in entertainment firms. Starting with
kinds of organizations, micro, small, and medium-sized businesses will be examined, with
various company goals, objectives, and supply of goods and services described. Spaza shops
are those that sell a variety of goods, primarily snacks and beverages, that are used to
examine in this section. Different types of businesses, such as sole traders, partnerships, and
private limited corporations, will have their legal structures contrasted. The analysis is based
on Herbalife nutrition, Google, and Kellogg's.
The scale and breadth of organizations come next. There will be a comparison of the
differences between large, medium-sized, and small businesses. Amazon, Captify, and
Cloudera were investigated. Pepsi, Pepsi-Cola, Asia-Pacific Economic Cooperation (APEC),
and Dell will be given as examples of worldwide expansion and development. Also described
will be the differences between franchising, such as Burger King, joint ventures, such as
Kellogg and Wilmar International Limited, and licensing, such as Nestle and Starbucks. Last
but not least, disrupting market dynamics and economic operations, as well as assessing
stakeholders' interests, expectations, and organizational duties.
The final section discusses various organizational functions. The roles of marketing, finance,
human resources, and operations, as well as their interrelationships, will be discussed, and
how they relate to the organization's goals will be illustrated. In addition, diverse
organizational structures will be introduced, and the organizational structure and complexity
of transnational, international, and global organizations will be examined.

1)Different Organizations
1.1 Profit Organization
A profit organization is any commercial entity whose principal goal is to produce profit
through regular activities in order to maximize the wealth of its shareholders. Profit made by
such businesses is either held in the firm, in the form of reserves, for future eventualities, or
dispersed to the owners as a dividend. A sole proprietorship, partnership, Hindu Undivided
Family, joint venture, or corporation can be used as the business structure. Such trade
concerns work tirelessly to reduce costs while increasing revenue in order to improve profits,
expand, and grow. They must keep track of their finances for tax and auditing purposes. In
addition, the tax (surbhi, 2018)
Under Armour is a profit organization it is one of the biggest profit companies in the world
and they have clear goals and good decision making between groups. Under Armour, Inc. is
an American sports equipment company that produce footwear, sports and casual wear.
Under Armour was founded in September 25, 1996, its founder was Kevin Plank. (plank,
2020)
During covid in terms of athletic gear and footwear sales, Under Armour continues to be the
underdog. While Americans cheer for the underdog, stock market investors should be wary of
hoping for a turnaround. Underperforming sales, the loss of its premium brand, and an
accounting fraud probe have hampered the company, which was once a rising star in
performance athletic clothing. That was prior to COVID-19.
Given that Under Armour was already struggling before to the epidemic, it's no surprise that
sales plunged 41% in the second quarter ending June 30, which encompassed the most of the
global lockdown. The majority of this came from wholesale channels, which saw a 58 percent
decline, while direct-to-consumer had a 58 percent increase. Under Armour has also seen
improvement in digital brand engagement and a "meaningful" increase in new users. And an
important development for the company is its inventory reduction, which positions it better
for rebuilding its name as a premium brand. Even with the sales drop, Under Armour is still a
more than $700 million business, and its cash position is a strong $1.1 billion in cash and
cash equivalents.
Under Armour shares are down more than 50% year to date as of Tuesday morning and have
a 40% three-year return. They're selling for less than $10, which makes them cheap if
investors foresee a comeback. But given where the company's holding right now, investors
might want to take a pass. (saibil, 2018)

Under Armour, Inc. is engaged in the development, marketing and distribution of branded
performance clothing, footwear and accessories for men, women and youth. It company sells
its product in North America through its wholesale and direct to consumer channel. In
addition, the company issue its products in North America through third-party logistics
providers with primary locations in Canada, New Jersey and Florida. The most share owner
Wellington Management Co. LLP, The Vanguard Group, Inc., Adage Capital Management
LP. Under Armour. Its revenue was 5.27 billion USD in 2019. (frisk, 2021)
Under Armour is a for-profit corporation that manufactures textiles, sports equipment, and
operates the world's biggest digital fitness and wellness community. Under Armour lost
$589.7 million, or $1.30 per share, compared to a profit of $22.5 million, or 5 cents per share,
a year ago. The firm lost 34 cents per share after one-time costs. The owner, stockholders,
and investors all benefit from the profit. (PLANK, 2021)
Under armour is private company limited by shares, under Armour is still a major participant
in the sports clothing business, with a market value of $9.67 billion as of Dec. 11, 2018. It's
no surprise that the company's top five individual stockholders are all men.
Current and former executives make up the company's top five stockholders. They are as
follows:
Kevin Plank, the company's founder and CEO
President and Chief Operating Officer, Patrik Frisk
Former Chief Digital Officer Michael S. Lee
Independent Director Harvey L. Sanders
Strategic Advisor, Kip Fulks
Plank owns 33.8 million Class C shares in Under Armour through a network of trusts,
making him the company's largest stakeholder. According to the company's Mar. 28, 2018
SEC filing, he holds an extra 34.7 million Class A and Class B shares through stock options,
while only owning 16,738 Class A shares directly. Plank owns 65 percent of Under Armour
and has voting control over the firm.
Last but not least its mission is to make all athletes better through passion, design and the
relentless pursuit of innovation. Under Armour pushes it production of new fabric and design
that help athletes get control of obstacles and to enhance their performance. Under Armour is
one of the leading developer, marketer. The company is one of the freshest sportswear
brands. Under Armour has four important branding ideas that gives them an advantage over

others. Purpose driven, focuses on function, innovation over image and keeps it branding
simple based in reality. (melville, 2021)
1.2 Non-Profit Organization
As the name implies, a non-profit organization is a legal entity whose primary goal is to
promote public benefit rather than profit. These are established by a group of people who get
together for a same goal, namely, to give service to members and the general public. The
managing committee is in charge of the organization's management, which is made up of a
group of people chosen by the members from among themselves. They are intended to
support a social cause or a certain point of view.
Sports clubs, public hospitals, religious institutions, cooperative groups, literacy societies,
and other organizations fall into this category. Non-profit organizations make money as well,
but the money they make is put to good use.
The Internal Revenue Service (IRS) has granted a non-profit organization tax-exempt status
because it promotes a social purpose and delivers a public benefit. Individuals and businesses
who donate to a non-profit organization can usually deduct their contributions from their
taxes, and the non-profit pays no tax on the money it receives from donations or other
fundraising operations. Because of the provision of the tax code that allows them to exist,
non-profit organizations are sometimes referred to as NPOs organizations. (KENTON, 2020)
Habitat for Humanity is a non-profit organization and its main key is to serve the society who
are homeless and are in need of a shelter they cover a wide range of areas. Since the founding
in 1976, Habitat for Humanity has helped more than 22 million people and in 2018 more than
8.7 million people served. (linda, 2021)
The one thing that can down the business is donation. If sponsor do not donate. They cannot
help homeless people and there is other problem they face is the high cost of land and
materials. As houses are sold at no profit and owners are provide with down payment. (adam,
2015)
under Armour has over 1,200 stores worldwide, with 300 of them opening in the previous
year, the majority of which are in Asia/Pacific. they operate in 60 countries, covering almost
10 kilometres of retail space, or 170 football fields. So, they alive and well, but they are
always mindful that you have to bring it to life every day.

Their purpose is to alleviate poverty by assisting those in need and providing them with a
house where they may live comfortably.
Its aim is for people to be able to live in decent conditions, and their value is to provide
shelter to those in need, develop affordable housing, and promote dignity and hope. (fuller,
2021)
Habitat for Humanity (Habitat for Humanity) is a Hong Kong applauds the HKSAR
Government's efforts to enhance housing supply and make housing cheaper and more
accessible at all levels of the housing ladder, particularly for low-income residents. They
applaud the government's ongoing focus on housing as a critical problem, as well as the
realization that "fulfilling Hong Kong people's housing requirements is a goal too vital to
abandon." [1] They recognize the multifaceted challenges of Hong Kong's housing issue. To
guarantee that everyone in Hong Kong has a decent place to live, they fight for a rights-based
housing strategy and policies. (Habitat for Humanity Hong Kong, 2020)
Habitat for Humanity is a public-sector organization that collaborates with all sectors—
community, government, private, and civic—to make a meaningful impact in the lives of
people by providing sufficient, affordable housing. It is committed to raising awareness and
funding to fulfil the needs of families for quality, affordable housing. It sells goods and
accepts donations to assist individuals who are in need. This charity is entirely funded by
contributions, and only donations can assist individuals in need. Their major goal is to assist
homeless individuals in constructing shelters. (fuller, 2021)
1.3 Non-Government Organization
A non-governmental organization (NGO) is a non-profit organization that operates outside
the government. NGOs, sometimes known as civil societies, are non-governmental
organizations (NGOs) that are organized on a local, national, and international level to serve
a social or political aim such as humanitarian issues or the environment. You may have a
better grasp of what a popular NGO does or intends to accomplish based on the popular
NGOs that have been discussed, but there are many different sorts of NGOs, which are
classified by their orientation (charitable, service, participative, empowering) and level of
cooperation (community based, city wide, national, and international). (ANDERSON, 2011)
Mercy Crops is a Humanitarian Aid Organization and this organization is a global network of
humanitarians working on the front lines of today's most critical matters is to build a better
future where everyone could thrive.

Over 5,600 team members work with people affected by poverty, catastrophe, violent
conflict, and the severe effects of climate change in more than 40 countries across the world.
We're devoted to making a global difference via local impact, which is why 85 percent of our
employees are native to the countries where they operate.
They take a holistic approach to every situation, looking at it from several perspectives. We
also work with local governments, forward-thinking companies, social entrepreneurs, and
residents of vulnerable communities to build innovative solutions that last. (Crops, Mercy,
2020)
They provide financial assistance, education, and mentorship to small business owners in the
Pacific Northwest. Over the last two decades, we've provided over $11 million in financial
assistance and hundreds of hours of culturally relevant business training to local
entrepreneurs as they do not work for profit, they help those who are in need. (Crops, Mercy,
2020)
• A donor relationship in which we directly assist the development of small companies and
the private sector as participants/beneficiaries in programs.
• A restricted corporate social responsibility (CSR) initiative in which a private sector player
contributes money or materials solely to achieve social or public relations objectives.
• A business transaction involving the purchase or sale of products or services with program
participants.
• A material assistance connection with the private sector, which donates products to our
teams or program participants.
Mercy Corps Northwest is a member of a number of volunteer networks that help
communities prepare for natural disasters: NVOAD (National Voluntary Organizations
Active in Disaster) - NVOAD is an acronym for National Voluntary Organizations Active in
Disaster. Mercy Corps is one of network of national organizations focused on disaster relief
and recovery in the United States. Mercy Volunteer Corps strives to develop and is
passionately devoted to fostering a community in which each individual's human dignity is
respected and cherished. Our objective is to create a mechanism for each member to
contribute to the life of the whole, a contribution that is appreciated in the same way that each
person is cherished. (mercyvolunteerscrops, 2021)
2) Supply of goods and services

The core business of Under Armour, Inc. (UA) is the creation, marketing, and distribution of
branded performance clothing, footwear, and accessories for men, women, and children of all
ages. Moisture-wicking technology developed by the company offers a performance
alternative to standard goods. Customers of United Armour, or UA, are mostly athletes. UA
also caters to the sportswear sector and those who lead active lifestyles. Non-traditional
performance textiles are designed and developed by UA. They're promoted throughout the
sports goods, outdoor, and active lifestyle industries and merchandised based on gear lines.
Several licensees develop apparel and accessories products for Under Armour, in
collaboration with the firm’s product, marketing, and sales teams that each play an active role
in the design process. This collaboration helps control brand and product consistency. These
products include socks, team uniforms, baby and kids’ apparel, eyewear, and inflatable
footballs and basketballs. (SONI, 2019)
Habitat for Humanity Non-profit organizations serve the general public and are founded by
pioneers and founders, with the majority of labour coming from volunteers willing to help the
organization. There is a need for boards that are thought to offer basic rights to persons in
terms of guaranteeing that people are not harmed by the poor performance of such
organizations in terms of meeting their requirements via cultural and social services. Habitat
is an organization that is of great help to the society because it makes sure that the homeless
are provided with houses at an affordable cost, and also the resources in these areas are used
in the right way. This also ensures that the society is able to cater to the people in terms of
ensuring that they get the services at the right time, and those mainly who are not able to
build their own houses are catered for in making sure that they get the houses at the lowest
cost. Organizations mainly the non- profit cater to the needs of the people in that they ensure
that the basic needs are provided. Such an organization provides needs like the right to stay in
a country and carry out your activities and also other things like houses at a lower cost. The
organizations are based on the needs of the local people who have no access to the needs due
to their state of being unable. (studycorgi, 2020)
Mercy Corps focuses on three areas: (1) providing humanitarian assistance to conflict-
affected populations to meet basic needs, maintain human dignity, and facilitate self-
empowerment; (2) supporting income-generating opportunities that help individuals and
households transition from financial dependency to financial independence while facilitating
market-system approaches; and (3) working with young females and youth. (4) Strengthening
conflict management and prevention methods and increasing social cohesiveness to promote
reconciliation and develop trust across community divides. (reliefweb, 2021)
3) Micro, small and medium sized enterprises
Small and medium-sized businesses, or SMEs, are defined differently all across the world.
The nation in which a firm operates determines the specified size of a SME. Depending on

the nation, a company's size or classification as a SME might be based on a variety of factors.
Annual revenue, the number of workers, the amount of assets held by the firm, market
capitalization, or any combination of these characteristics are among the characteristics.
SMEs are also defined differently in the United States depending on the industry. The
majority of businesses functioning across the world are small and medium-sized enterprises
(SMEs). They are usually small businesses with less than 50 employees. The maximum
number of employees, on the other hand, varies from nation to country. The top limit for
most businesses is about 250. The total number of employees in certain countries is capped at
200. An SME is defined in the United States as a company with less than 500 employees,
among other things. (corporatefinanceinstitute, 2021)
A microenterprise, sometimes known as a microbusiness, is a tiny company with a small
workforce. A microenterprise employs fewer than ten people and is founded with a small sum
of money borrowed from a bank or other institution. The majority of microbusinesses focus
on delivering goods or services to their immediate communities. (TEAM, 2021)
Spaza shops are example of micro enterprises, unpretentious convenience stores that sell a
range of items, mostly snacks and beverages. Shebeens are similar establishments that focus
primarily on the selling of alcoholic beverages. Small food stores and shebeens provide
useful information on what things are available in the community as well as product cost.
This information was incredibly beneficial when it came to purchasing and pricing potential
kiosk goods. While these micro-businesses gave excellent examples of how to start an
informal business, they also had significant downsides. Many of these businesses, for
example, are unlawful, limiting their potential to grow. Our project team set out to file all
necessary papers and follow all legal procedures in order to create the groundwork for
success. A micro-enterprise is a well-established business concept in Lang rug and other
informal settlements. While this approach was not chosen for our project, it did teach us some
valuable things. A micro-enterprise is a small-scale, informal business that functions
similarly to a small business. Spaza shops and shebeens are two prominent examples of
extensively used micro-enterprise concepts. (WPI, 2015)
SMEs have more resources than MEs as cloudera Inc. is example of small and medium
enterprise. Cloudera Inc. is a commercial provider of Apache Hadoop open-source software
solutions. Several investors, including Accel Partners and Greylock Partners, have provided
the firm with a total venture capital financing of US$141 million since 2008.
Its headquarters are in Palo Alto, California. It works with companies in a variety of
industries, including financial services, government, telecommunications, media, advertising,
energy, retail, healthcare, oil and gas, and gaming. As of 2013, it employed around 250
people. Cloudera's Distribution Including Apache Hadoop, or CDH, Cloudera Enterprise, and
Service and Configuration Manager Express are among the software solutions available.
(technavio, 2014)

4) Business objective
“A business objective is a precise representation of an action you intend to take to accomplish
a specified goal.” Although the terms objectives and goals are sometimes used
interchangeably, they are not synonymous. Goals are the headlines; they are the end
destination you want your company to attain, whereas goals are the details of the trip.
Objectives are specific, quantifiable actions that address questions like which mode of
transportation you'll use, how long the trip will take, how much the ticket will cost, and so on.
Under Armour private business purpose is its aim is to improve all athletes via
enthusiasm, design, and a never-ending quest for new ideas. Under Armour is pushing the
development of new fabrics and designs to assist athletes overcome hurdles and improve their
performance. Under Armour is a well-known developer and marketer. The business is one of
the most innovative sportswear companies on the market. Under Armour has four key
branding concepts that set them apart from the competition. Purpose-driven, emphasizing
function over image, and keeping branding simple and grounded in reality. (melville, 2021)
Under armour private objective is this firm wants to increase profits by producing high-
quality clothing and improving their goods. They do more study on how to produce good
things that will allow them to generate more money. It assists Under Armour in tracking
progress and achieving their objectives. All of Under Armour's objectives are specific and
clear, making it easier for employees and managers to manage and focus on their goals. It
also assists them in identifying skill development and training requirements, allowing them to
expand their business globally and earn more money by selling high-quality products. (fuller,
2021)
Under armour private supply of goods and service, UA designs and develops non-
traditional performance fabrics. They're merchandised based on gear lines and promoted
throughout the sports goods, outdoor, and active lifestyle sectors. Several licensees work with
Under Armour to create garments and accessories in conjunction with the company's product,
marketing, and sales departments, all of whom are involved in the design process. This
partnership aids in maintaining brand and product consistency. Socks, team uniforms, infant
and children's clothing, eyeglasses, and inflatable footballs and basketballs are among the
items available.
Habitat for humanity public business purpose, Habitat for Humanity's job is to restore and
remodel the apartments in order to provide a stable and safe environment for young people.