Analyzing Business Organizations: Structure, Size, and Scope

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BUSINESS AND BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION........................................................................................................................2
TASK 1...................................................................................................................................... 3
CONCLUSION.......................................................................................................................... 10
REFERENCES........................................................................................................................... 11
1

INTRODUCTION
The report examined the different organizations based on their legal structure, style, and
size which are distinguished from each other. The profit and not for profit business
organizations are explained in the report successfully. The medium, small, and
microenterprise which are based on their size are analyzed in the report. The purpose and
scope of the business entity are mentioned in the report along with their legal structures.
Joint ventures, franchising, and licensing are discussed along with their concept and
distinction with others. The interest of stakeholders and their responsibilities are
conceptualized in the report. Further, the role of marketing function along with other
different functions of a business is explained in the report.
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TASK 1
INTRODUCTION
I am working as a Trainee Business Analyst for the North London Chamber of Commerce and
Enterprise (NLCCE). The main purpose of the Chamber is to help the general people to
establish their business in the local, national, and international markets. A report is
prepared by me for the business event or conference organized by the Chamber for
explaining types of various organizations along with their scope, size, objectives, and legal
structure.
BODY
A business organization is a business which started by the management with a specified
legal structure, terms, and conditions of business, and for achieving a common goal or
objective (Wroblewski, 2019).
Profit organization is the business organization which is started with the main purpose of
achieving profits and success. These organizations a profit making as their primary objective
and work for earning more revenues than the costs which include organizations like
Primark, Brightstar limited, The Private Office Ltd., etc.
The not for profit organizations or NPOs such as TLG is registered under section 8 of the
Companies Act, 1956. The main objective of not for profit organizations is to promote
general purpose such as research, commerce, art, the science of any other purposes which
include organizations like TLG, Fair Ways, Touchstone, The Brilliant Club, etc.
The non-government organizations or NGOs are registered as a Society under the Societies
Regulation Act 1860, as a Trust under Public Trust Act, and non-profit company under The
Companies Act, 2013. The main purpose of NGOs is to work for the society and economy,
women empowerment, and human rights which include organizations like environmental
NGOs, Technical Assistance NGOs, International NGOs, Donor Organized NGOs, etc.
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Microbusiness enterprise is the business with not more than 9 employees working in it and
has a turnover of a maximum of £2 million. Matefile is a micro company with 2 employees
and the business purpose of design consultants.
There are around 49 employees and not less than 10 employees work for small enterprise
and has a turnover of a maximum of £10 million. Williams Performance Tenders is a small
company of UK with 36 employees and purpose of manufacturing boats.
The medium enterprise employs more than 50 but not less than 250 employees in its
organization and has a turnover of a maximum of £50 million (Niles, 2012). Tile And Stone
Depot is a medium enterprise with 103 employees and business purpose of selling ceramic
tiles.
A sole trader is an organization where the owner is only responsible for the profits and
debts of the business.
Partnerships is an organization which is set up with a legal agreement between the partners
who share a specified percentage of profits and losses.
Private limited companies are a business organization where the shareholders have limited
liability for the business.
The difference between large, medium-sized and small organizations are given below:
BASIS LARGE
ORGANIZATION
MEDIUM-SIZED
ORGANIZATION
SMALL
ORGANIZATION
Meaning The large
organization is an
organization with
not less than 50
employees and not
more than 250
employees are
working.
The medium
organization is an
organization with
not less than 10
employees and not
more than 50
employees are
working.
The small
organization is an
organization with no
more than 9
employees are
working.
Objectives The main goal is to
take over the
The main aim is to
maximize their
The main objectives
are survival in the
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position of
competitors in the
market.
growth and expand
their business with
more profits.
market.
Growth The growth rate of a
large business is
very high.
The growth rate of
the medium
business is average.
The growth rate of
small business is
very slow.
Sustainability The sustainability
level of a large
business is more
than small and
medium enterprises.
The operations of
the medium
organization are
carried on at an
average sustainable
rate.
The sustainability
rate of small
business is low.
GLOBAL GROWTH AND DEVELOPMENTS OF TRANSNATIONAL, INTERNATIONAL AND
GLOBAL ORGANIZATIONS
The global company is a company which has operations in more than one nation across the
world which have foreign direct investment. These companies face many challenges in its
growth and developments which legal issues and changes in demands and needs in different
markets.
International company is an organization which sells goods and services in foreign nations
by export and purchase from import activities. The issues in the growth and development of
international companies include regulatory, legal, and customs issues.
The transnational organizations are the combination of global, multinational, and
international companies. These companies face manpower issues along with different
internal organizational problems.
Franchising is the agreement where the franchisor allows the franchise to use the brand
name of the company. The company law is applicable to the regulations of franchising and
its registration is mandatory.
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Joint ventures are the agreement for carrying on a common purpose between two business
enterprises. Both the parties in the joint ventures have common goals and objectives to be
achieved which unlike franchising and licensing cannot be achieved by one party separately
(Jensen, 2019).
Licensing is an agreement where the right to use the intellectual property is allowed in
exchange of royalty by the licensor to the licensee. The contract law is applicable to the
regulations of licensing and its registration is not necessary and optional.
INDUSTRIAL STRUCTURES AND COMPETITIVE ANALYSIS
The industrial structures and competitive analysis are also known as the components and
factors of strategy development for business organizations and other different business
firms. The grasp of the industry can be gained with the help of these practical set of
strategies and methods. The performance of the industry is affected by different factors
which have a direct and indirect effect on the performance of the industry are measured
with the help of industrial and competitive analysis. The structure of the industry plays an
important role in deciding the future performance and growth of the organization. The
resources are allocated effectively for reaching the strategic goals and in order to improve
the performance of the industry with the help of industrial structures and competitive
analysis.
MARKET FORCES AND ECONOMIC OPERATIONS
Market forces are the factors and components of the market which affect the flow of
products and services of different companies in the market (Business Dictionary, 2019). The
market forces increase or decrease in the demand and supply of goods affect the sales and
profitability of the companies. The scarcity of resources affects the production and different
economic operations of the business. When income is more elastic, it results in a higher shift
in demand of the customers which affect the sales and revenue of the business. The change
in choice and availability of products and services affect the business operation in both a
positive and negative manner. When the supply is more and demand is less, the price of
goods and services are reduced and vice versa.
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STAKEHOLDERS AND RESPONSIBILITIES OF ORGANIZATIONS TO MEET DIFFERENT
STAKEHOLDER INTERESTS AND EXPECTATIONS
Stakeholders are the parties involved in the business and have direct or indirect interest in
the decisions of the company such as customers, managers, employees, donor, investors,
etc. (Rouse, 2017). Once the stakeholders of the company are identified, the next step is to
find out their interest in the business. There are many factors which affect the interest of
stakeholders which include brand considerations, risk of losing creditability, the desire of
innovations, benefits, and threats to their organizations, etc. The expectations of
stakeholders can be met by the management by communicating the positive aspects of the
project with them and asking for their participation in the decision-making process. The
changing market condition also affects the expectations of stakeholders where the
managers can open less formal line of communication for the stakeholder for meeting their
involvement in business (Li, 2019).
THE ROLE OF MARKETING, FINANCE, HUMAN RESOURCE MANAGEMENT AND
OPERATIONS WITHIN AN ORGANIZATIONAL CONTEXT AND THE INTERRELATIONSHIPS
The functional departments of the business include marketing, finance, operations, and
human resource management which play their respective roles in the company. The
financing department makes budgets for marketing, sales, production, HR department, and
other functional departments of the company. Marketing department promotes products
and services of the company which increases sales and profitability of the business and
helps the production department in making necessary modifications in the products. The
HRM department help in managing the human resource of different departments such as
sales personnel, finance managers, and other employees of the company. This department
deals with the most important resource of the business that is the human resources and
keeps the employee turnover ratio under control (Rodrigo, 2012).
FUNCTIONS RELATE TO OVERALL ORGANIZATION MISSION AND OBJECTIVES
The structure of the organization and its mission and objectives are affected by the
functions and operations of the company. The divisional structure of the company has
different divisions which are carried by different personnel which is managed effectively by
human resource management function. The main objective of a company is to earn profits
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which can be earned by increasing the sales and marketing department along with R&D
department help the company in enhancing the sales and profitability of the company. In
the matrix structure, the personnel work in the function based departments and adopts
changing requirements of the company for achieving its objectives effectively (Sherman,
2019).
DIFFERENT STRUCTURES DEPENDING UPON THE SIZE AND SCOPE OF THE ORGANIZATION,
INCLUDING BUREAUCRATIC AND POST-BUREAUCRATIC, PARENT, STRATEGIC BUSINESS
UNITS (SBUS), MATRIX AND FUNCTIONAL LEVELS
The bureaucratic structure is the structure is used by large and complex organization mostly
in government. There are clear formal lines of command where subordinates are
answerable to their senior management.
The post-bureaucratic structure is the modified form for the bureaucratic structure which as
central board of command who takes all the decision for the company. Employees are also
involved in the process of decision making by taking their suggestions in the company.
The parent company is the company which controls the decision making process and
management in another company by taking substantial shares of the subsidiary company
(Aldridge, 2019).
Strategic business units (SBUs) is a business unit of the company which has its own mission,
vision, and objectives.
Matrix organizational structure is known as the hybrid structure of functional organizational
structure and projected organizational structure. There are two command structure in the
matrix organizational structure which are horizontal and vertical (Writing, 2019).
Functional organization structure is the structure where the human resources of similar
skills are grouped together in one functional department such as sales, marketing, and
finance department of the company.
ORGANIZATION STRUCTURES AND COMPLEXITIES OF TRANSNATIONAL, INTERNATIONAL
AND GLOBAL ORGANIZATIONS
8

The organizational structure of the firm using transnational organizations is a combination
of product divisional structure and characteristics of the worldwide geographic structure.
The complexities involved in the transnational structure affect its decision-making process.
There are different types of organizational structures of international organizations which
involves Expo-documents against acceptance Department, International division structure,
Global Organizational Structures, and Evolution of Global Organizational Structures.
There is a lot of complexities involved in an international organization which has multiple
speeds and layers. The structure of a global organization is another organization which
involves a huge amount of complexities where the manager focuses on different market and
organizational segments.
CONCLUSION
As a Trainee Business Analyst for the North London Chamber of Commerce and Enterprise
(NLCCE), I have prepared the report for describing types of businesses as per their size and
scope. My report includes organizations such as partnerships, sole proprietorship, and
company, private, public, and voluntary. The organization which is operating in the
secondary, primary, and territory sector are described in the report.
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CONCLUSION
The distinction of different types of business entities is explained in the report along with
the description of their size and scope. The organizations based on their size are distributed
as small, micro, and medium business entities. The economic operations and market forces
which affect the functioning and operations of business organization such as elasticity of
income, supply, and demand, etc. are analyzed in the report. The human resource
management, finance, marketing, and other functions of business enterprise are discussed
in the report. The complexities involved in different types of business organizations such as
transnational, international and global organizations.
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REFERENCES
Aldridge, C., 2019. What Is the Difference Between a Parent Company & a Holding
Company? (Online) Available at: https://smallbusiness.chron.com/difference-between-
parent-company-holding-company-17310.html (Accessed on 12th June 2019).
Business Dictionary, 2019. Market forces. (Online) Available at:
http://www.businessdictionary.com/definition/market-forces.html (Accessed on 12th June
2019).
Jensen, K., 2019. Difference between a Franchise and a Joint Venture. (Online) Available at:
https://smallbusiness.chron.com/difference-between-franchise-joint-venture-20245.html
(Accessed on 12th June 2019).
Li, A., 2019. How Do the Needs & Expectations of Stakeholders Influence a Program's Plan?
(Online) Available at: https://smallbusiness.chron.com/needs-expectations-stakeholders-
influence-programs-plan-36119.html (Accessed on 12th June 2019).
Niles, C., 2012. What is an SME? (Online) Available at:
https://www.thecompanywarehouse.co.uk/blog/what-is-an-sme (Accessed on 12th June
2019).
Rodrigo, 2012. The Role of Human Resources Management in an Organisation. (Online)
Available at: https://writepass.com/journal/2012/11/the-role-of-human-resources-
management-in-an-organisation/ (Accessed on 12th June 2019).
Rouse, M., 2017. Stakeholder. (Online) Available at:
https://searchcio.techtarget.com/definition/stakeholder (Accessed on 12th June 2019).
Sherman, F., 2019. What Is the Relationship Between Organizational Functions &
Organizational Structure? (Online) Available at:
https://smallbusiness.chron.com/relationship-between-organizational-functions-
organizational-structure-18571.html (Accessed on 12th June 2019).
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