Analyzing Business Organizations: A Comprehensive Report

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BUSINESS AND BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION........................................................................................................................2
LO1........................................................................................................................................... 3
P1 EXPLAIN DIFFERENT TYPES AND PURPOSE OF ORGANIZATIONS; PUBLIC-PRIVATE AND
VOLUNTARY SECTORS AND LEGAL STRUCTURES..................................................................3
P2 & M1 EXPLAIN THE SIZE AND SCOPE OF A RANGE OF DIFFERENT TYPES OF
ORGANIZATIONS AND LINK THEM WITH BUSINESS OBJECTIVES..........................................4
LO2........................................................................................................................................... 7
P3 EXPLAIN THE RELATIONSHIP BETWEEN DIFFERENT ORGANIZATIONAL FUNCTIONS AND
HOW THEY LINK TO ORGANISATIONAL OBJECTIVES AND STRUCTURE................................7
M2 ANALYZE THE ADVANTAGES AND DISADVANTAGES OF INTERRELATIONSHIPS
BETWEEN ORGANIZATIONAL FUNCTIONS AND THE IMPACT THAT CAN HAVE UPON
ORGANIZATIONAL STRUCTURE............................................................................................ 8
LO3......................................................................................................................................... 10
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 ORGANIZATION.................................................11
LO4......................................................................................................................................... 14
P5 & M4 CONDUCT INTERNAL AND EXTERNAL ANALYSIS OF SPECIFIC ORGANIZATIONS IN
ORDER TO IDENTIFY STRENGTHS AND WEAKNESSES AND APPLY APPROPRIATE SWOT
ANALYSIS AND JUSTIFY HOW THEY INFLUENCE DECISION MAKING...................................14
P6 EXPLAIN HOW STRENGTHS AND WEAKNESSES INTERRELATE WITH EXTERNAL MACRO
FACTORS.............................................................................................................................16
CONCLUSION.......................................................................................................................... 18
REFERENCES........................................................................................................................... 19
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INTRODUCTION
The report analyzed the various purpose and types of business organizations by
distinguishing them in the categories of the various sector according to their nature and
jurisdiction. The various kinds of business according to their structure, size, nature, and
scope are analyzed in the report. The different operations of the business are connected
with each other in order to evaluate their performance in connection with the attainment of
aims and objectives of the business enterprise. The connection between the different
functions of the company such as financing, marketing, production, sales, research, and
development are examined in the report. The macro environment of the company is
analyzed along with identifying their favourable and unfavourable impact on the functions
of the company. SWOT analysis, Pestle analysis, are some of the models which are used for
analyzing the macro environment of the company.
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LO1
P1 EXPLAIN DIFFERENT TYPES AND PURPOSE OF
ORGANIZATIONS; PUBLIC-PRIVATE AND VOLUNTARY
SECTORS AND LEGAL STRUCTURES
The commercial activity which helps in the exchange of goods and products with a motive of
earning profits is known as business (Ward, 2018). The organization which carries business
activities for making the goods and services available to its customers (Business Dictionary,
2019). The activities which are involved in the purchase, sale, marketing, research, and
distributing goods and services along with the exchange of money and its equivalent terms
is known as economic activity (Business Dictionary, 2019). The three types of business
organizations which are explained below:
PURPOSE AND LEGAL STRUCTURE
The aims and objectives of the business organizations for which the business operations are
conducted by the company are known as the purpose of the business. The main aim of
conducting these business functions is the attainment of the objectives of the business
organization. The basic purpose of every business is to earn profits and revenues for the
business. The legal structure is the legal framework of the company under which it operates
its functions. The legal structure of the company is a category under which its workings are
defined and regulated.
Everything Everywhere Limited
Everything Everywhere Limited is a British telecom company which provides mobile network
services to its customers all over the world. Everything Everywhere Limited was established
in the year 2010 on April 1st and has headquarters in Hatfield, Hertfordshire, and England.
The CEO of EE Ltd. is Marc Allera and its stores are managed by the store manager. The main
purpose of Everything Everywhere Limited is to serve its customers all over the world by
providing high-class mobile networking services. The management of Everything
Everywhere Limited
National Health Service
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National Health Service is a company that is regulated by government and founded by
Aneurin Bevan in the year 1948 on July 5th. The headquarters of National Health Service
situated at Richmond House, London, and England. The main purpose of starting the
National Health Service is to make available the medical care to the residents of British
citizens. The management of the National Health Service include managers, CEO, health
committee, infrastructure staff, and other related management staff (Edwards, 2017).
National Trust for Places of Historic Interest or Natural Beauty
National Trust is a voluntary company which has the purpose of conserving the natural and
cultural heritage of the nation and to preserve the natural beauty of different areas and
geographical region. The National Trust for Places of Historic Interest or Natural Beauty was
the first national trust which was started in England in the year 1895. It was the membership
charity trust which has the largest membership trust in the United Kingdom. The
headquarters are located at Heelis, Swindon, and Wiltshire and mainly located in the United
Kingdom. The management of the National Trust includes the director general and chief
operating officer who is Hilary McGrady, and the Chairman of National Trust is Tim Parker.
P2 & M1 EXPLAIN THE SIZE AND SCOPE OF A RANGE OF
DIFFERENT TYPES OF ORGANIZATIONS AND LINK THEM
WITH BUSINESS OBJECTIVES
The business organization is distinguished based on their size and scope which separate one
organization from another. There are different sized business organization which serves
different types of customers in different regions. The legal structure of the company has a
variety of business which includes sole traders, partnerships, and companies (Limited and
unlimited). The purpose of the business organization is defined by its size and scope which
can be distinguished from other companies. The scope of the company is defined by the
operations and workings of the business organization. The size of the company can be
measured with the help of its revenue, expenses, costs, number of employees, market
share, etc.
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Everything Everywhere Limited
Everything Everywhere Limited is a telecommunication sector industry which serves its
customers with a large mobile network all over the world. There are around 29.6 million
customers and became the largest mobile operator of 4G mobile network services. Fixed-
line telephony, broadband internet, mobile telephony, and digital telephony are some of
the products served by Everything Everywhere Limited. Orange and T-Mobile were acquired
by Everything Everywhere Limited who is held by BT Group. EE Ltd. has 700 retail stores all
over the United Kingdom after acquiring Orange and T-Mobile.
National Health Service
National Health Service is a public service providing company that has expanded its
operations in many countries which include Scotland, Wales, England, and Ireland. There are
around 11 percent physician workforce working for the National Health Service. In the year
2015-16, the National Health Service has employed around 1.6 million employees along with
691000 nurses. There was around 2165043 workforce working for National Health Service
with 1789586 in England, 198368 in Scotland, 110292 in Wales, and 66797 in Northern
Ireland.
National Trust for Places of Historic Interest or Natural Beauty
The National Trust for Places of Historic Interest or Natural Beauty has around 5.2 million
membership in the year 2017. Currently, there is around 12000 staff working for National
Trust for Places of Historic Interest or Natural Beauty along with 61000 volunteers. England,
Wales, and Northern Ireland are the main regions of operations of the National trust. The
National Trust for Places of Historic Interest or Natural Beauty has become the largest
membership charity organization which is located in the United Kingdom.
RELATIONSHIP OF STRUCTURE, SIZE, AND SCOPE WITH BUSINESS OBJECTIVES OF THE
ORGANIZATION
The goals and objective of the business organizations are achieved by defining the company
with its size and scope. Following are the examples of voluntary, public, and private
organization which analyze the relationship with the size, scope, and structure with the
goals of company:
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Everything Everywhere Limited
The main objective of EE Ltd. is to provide world-class network services to its customers all
over the world. The size and scope of the company which is operating in different nations of
the world are very useful in attaining the goals of Everything Everywhere Limited. The
employees of the company keep a healthy relationship with its customers and help in
satisfying their needs and demand.
National Health Service
The main aim of the National Health Service is to promote facilities related to medical for
the needed people in different parts of the world. There are different qualified physicians,
nurses, and doctors which promote the objectives of the company. The goals and objectives
of National Health Service are achieved with the vast areas of operation in various countries
such as Scotland, Wales, England, and Ireland.
National Trust for Places of Historic Interest or Natural Beauty
The main aim of the National Trust for Places of Historic Interest or Natural Beauty is to
provide protection to the areas which have a historic interest and to provide permanent
benefit to the nations which include Wales, England, and Northern Ireland. The motto of the
National Trust for Places of Historic Interest or Natural Beauty is ‘Forever, for everyone'.
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LO2
P3 EXPLAIN THE RELATIONSHIP BETWEEN DIFFERENT
ORGANIZATIONAL FUNCTIONS AND HOW THEY LINK TO
ORGANISATIONAL OBJECTIVES AND STRUCTURE
The functions of the organization help it in attaining the goals and objectives which is carried
on by different areas of the company. The functions of the business organization include
production, sales, financing, research and development, marketing, and other related help
the business in attaining its goals and objectives. The research and development functions
are related to the marketing department where the marketing strategies are developed by
the business organization by analyzing the results of research and development of the
company. The demands and requirements of the customers which were predicted by the
research and development function of the EE Ltd. which will be used by the marketing
department for modifying its market strategies. The sales department are interrelated with
the marketing department where the turnover and revenues of the business can be
increased by the marketing function. EE Ltd. has decided to lower its marketing cost for
converting 3G customers to 4G customers effectively. The external and internal analysis of
the market is done by Everything Everywhere Limited for serving best quality services. The
market analysis is carried on by Everything Everywhere Limited in reference to the functions
of department of research and development.
The marketing, sales, research and development, and production functions are mainly
related to the finance department of the business organization. The budgets are prepared
by the finance department of Everything Everywhere Limited for its sales, production,
marketing, and other functions of the company. The activities of different functions are
carried on within the budgets set by the business organization. Marketing of Everything
Everywhere Limited can be very expensive and they require lots of funding from the
company. When the functions of marketing and promotion are carried on within the
budgets set by the financing department, the expenses of marketing can be reduced so that
the profits of the business can be increased (O'Farrell, 2019).
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Human resource management is another function of the business which helps in
coordinating functions of the different department by ensuring proper skill utilization of the
employees. Training is given to the employees of different sectors of Everything Everywhere
Limited for managing human resources effectively and reducing the workforce turnover.
M2 ANALYZE THE ADVANTAGES AND DISADVANTAGES
OF INTERRELATIONSHIPS BETWEEN ORGANIZATIONAL
FUNCTIONS AND THE IMPACT THAT CAN HAVE UPON
ORGANIZATIONAL STRUCTURE
Various functions of the business which are interrelated with each other for achieving the
goals and motive of the company. Without interrelationship between the functional
departments of the company such as financing, marketing, production, selling, human
resource management, etc. the success of the business cannot be ensured. Everything
Everywhere Limited has the objective of providing the high-class mobile network for its
customers which required a high amount of funding for its promotional activities and
marketing which need to be related with the finance department for maintaining the
expenses of the marketing department within the limit. Everything Everywhere Limited has
a strong corporate culture which controls the functions of the company effectively. The
disadvantages and advantages of the connection between the organizational structures with
the functions of departments are explained below:
ADVANTAGES DISADVANTAGES
1. There will be strong communication
between different functional
departments of the company which
will help in maintaining a healthy
relationship.
1. The process of the company along
with the reaction to the external
environment can be slow.
2. The skills and specialized knowledge
of the employees can be utilized
effectively by providing them
efficient role by the organizational
structure of the business enterprise.
2. The communication between various
departments will be rigid which will
delay the action and response of the
business.
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3. The management of operations of
the company is made very easier
with the organizational structure.
3. There can be confusion in the work
performance and accountability set
for the different employees in the
business organization.
4. The resources are effectively utilized
without any wastage by the company
in different functions and operations.
4. There will be unhealthy competition
between different functional
departments of the company due to
lack of understanding and
combination.
5. Productivity and specialization are
increased in the different areas of the
business by ensuring transparency in
the duties and responsibilities of the
employees.
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LO3
P4 IDENTIFY THE POSITIVE AND NEGATIVE IMPACTS THE
MACRO ENVIRONMENT HAS UPON BUSINESS
OPERATIONS, SUPPORTED BY SPECIFIC EXAMPLES
Macro or the external environment greatly affects functions as well as operations of the
business organization and produce many challenges in developing marketing strategies of
the business. The external environment of the business enterprise is known as the macro
environment which has six main factors Technological factors, Political, Socio-cultural,
Ecological, Economic, and Demographic (Claessens, 2015). There are many uncountable
components of the external which affect the functions of the company and its operations.
The risk of external factors cannot be eliminated but can be reduced to a minimum by
analyzing external environmental factors. The positive impact of the external environment
of the business organization are explained as follows:
 The opportunities which can be used by the business organization by evaluating the
macro environment of the business.
 By analyzing the social environment of the company the diversify nature and the
needs and demands of the consumers can be understood by the business for
developing products and services.
 The technological advancements help the company in improving the process and
operations of manufacturing goods and services which will reduce the cost of
production and increase revenue.
 The analysis of legal regulations of the company will reduce the chances of legal
liabilities and other litigations on the business.
 By fulfilling the corporate social responsibilities, the business organization can build a
strong positive image within the society and thus the sales and profitability of
business can be increased.
The negative impact of the macro environment of the organization are explained as follows:
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