Analysis of Organisational Types, Functions and Structures: Report

This report provides a comprehensive analysis of different organisational types, including private, public, and voluntary organisations, and their respective structures and functions. It explores the growth of the international business environment and its impact on organisations. The report delves into the specifics of Morrisons plc, a UK-based food retail company, examining its operations, functions, and stakeholder relationships. It also includes an analysis of macro factors influencing Morrisons' operations, a SWOT analysis, and an examination of internal and external factors impacting decision-making processes. The report offers insights into the legal structures, mission, vision, and purpose of various organisations, illustrating the complexities of the business landscape.

Organisational Types, Functions and
Structures

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Introduction to the different organisation and the growth of the international business
environment................................................................................................................................1
2. Explaining the detail of different organisation........................................................................3
3. Explaining the function of Morrisons Ltd. And the way it interrelates and relate to the
structure.......................................................................................................................................6
4. Identifying the negative and positive impact of macro factors on Morrisons plc operations. 8
5. SWOT analysis of the Morrisons plc and their interrelationship with the external factors....9
6. Explaining the internal and external analysis and their influence on decision making
process.......................................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment can be defines as any individual, organisation or any factors which
can help in controlling the operations of business operations, that would assist in increasing the
revenue or profitability of the organisation. In business environment there are lot of factors
which helps in constituting the business environment for the organisation. This factors includes,
customers, distributors, employees, market and economic condition etc. It very essential for a
business organisation to consider this factors as it can affect the operations of the business
organisations and its profitability. The present report will help in understanding different
organisational types its functions and structures which will help in understanding the analysis of
business environment and its impact on the organisation. The present report will discuss about
Morrison’s plc, a food retail company based in UK. Further, an overview of different
organisation and its function will be discuss.
MAIN BODY
1. Introduction to the different organisation and the growth of the international business
environment.
There are many organisations which varies as per there operations, functions,
organisational as well as legal structures and purposes.. The main three types of organisation and
there differences as per the structures are as follows:
Private organisation: It can be termed as the business entity which are run by a private
owner or privately held entity rather than government. The main intension of private
organisation is to make profit and maximizing its market share. The private sector company are
the one that are engaged in selling of goods and services to their target customer in market. The
main source from which the private organisation raise their funds are from issuing their shares
and debentures in capital market (Storey, 2016). Morrison supermarket plc can be the example of
private organisation. Morrison plc is the one of the largest chains of supermarket in united
Kingdom.
Public organisation: This type of organisation are owned and run by the government of a
country. Their main purpose is to provide the services to the citizen. Public organisation does not
operate to make profit, despite they created revenue in order to rum the business function
effectively. One of the main purpose of the public organisation is to serve the people and the
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country's citizenship, generating employment opportunities maintain infrastructures in country.
These organisation played a great role in developing and increasing the country's economy. The
example of public organisation in UK can be British Broadcasting Corporation (BBC).
Voluntary organisation: such organisation are one which combines many organisations
which aims and purpose is to provide benefit and enrich to the society. They have no motive to
make profit but only aims to serve the human kind (Goffee and Scase, 2015). This type of
organisation has little or no interference of government. The profit they earned in their
operations are invested back to enlarge their operations for the good being of the society and
human kind. One of the example of voluntary organisation of UK is Well-come Trust.
Sole-proprietorship: This organisation are also known as sole-trader, such organisation
are unincorporated business which are being operated by one single owner who are liable for all
the losses and also enjoys the profit. The sole proprietorship does not have a separate law to
govern it. It is the most easiest business type to start and operate. It doesn't require to formally
register in order to start the organisation. Book-keeper, home healthcare, financial planner are the
example of the sole-proprietorship.
Growth of international business environment:
Over the past three decades, the organisation over the world has started expanded its
operations over the World, which are resulted from liberalisation. International business can be
simply defined as business transactions that take place across the national borders. International
business has grown rapidly in current environment as the markets has become global in order to
attract majority of products and services and the financial tools. With the increasing in the
technological advancement, the international trading has become more effective and assist
several companies to trade in different part of the world (Taylor, Bulak and Morrison, 2016).
Expansion of companies on international platform is beneficial as they provide wider market to
target sand offer their products or services to more customers than in local market.
International business environment is multidimensional as it is including the political
risks, cultural differences, exchanging risks, legal and taxation issues. International business has
wide scope as it focuses on the particular issue and opportunities that appears in business
environment for the organisation that are operating at global scale. It can be said that
International Business environment comprises of the political, economical, regulatory, tax, social
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and cultural, legal and technological environment. It affects the growth of an organisation on the
international platform. This covers various aspects which affects a profitability of any
organisation. Political factors includes the changes in the political condition of a country that
may have direct impact on the operations of an organisation in that country (Castle, Morrison
and Barger, 2011). Such political factors includes political stability, level of corruption, the level
of interference of government rules and regulations in the retail industry. The level of tax, trade
regulations and tariffs are also included in the political factors of the country.
Economical factors of any country includes its growth rate, inflation, exchange rate and
stability are some economical factors that can affect the organisations functions and its revenue
in country. The level of infrastructures, skill level of workforce, education level are also some
factors. Social factor are the Country's culture and social values also affect the operations of
company. Such social factors are compromise of demographic and skills of the people, beliefs
and attitude of the society, class structure etc. Along with this, there are many technological
factors that needs to be analysed like, development on technological advancement in operation,
impact on cost structure, impact on product offering etc. which also affects the operations and
profitability of the company. Different legal framework of a country includes are the legal
factors which can affects a company are discrimination law, consumer protection law,
employment law, intellectual property law (Trinh, Chong-Morrison and Sauka-Spengler, 2018).
This law can affect the profitability of that company in country.
Environmental factors that are concerned with the environmental sustainability and the
ethical factors. Such factors includes the reduction using plastic, laws regarding waste
management in consumer services. This factors impact as the consumer are conscious for the
company for adapting environmental healthy practices. It will assist in making goodwill in
market which helps in attracting more customers towards the company.
2. Explaining the detail of different organisation.
Different type of organisation has different operations, functions, way of governing.
These organisation also varies based on their organisational and legal structure also. The three
types of organisation that varies on different aspects are as follows:
Private Organisation: These are the organisation which are privately held by individual,
non-governmental organisations or by small group of owners. Morrisons supermarket plc is a
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privately held retail company based in UK. Morrisons plc has more than 500 stores all over the
UK.
Product and services: It is a retail company which are engage in selling and offering food
products. They also provide services of online home delivery services. The main products
offered by the company are food and drinks, clothing, Books, magazines, CD etc.
Size and Scope: Morrisons plc has over 500 stores which serve in almost all part of United
kingdom and over 10 manufacturing sites across Britain. It has over 7 distribution centre in UK.
Scope of Morrisons plc is wider as it operates across the United Kingdom and on the global level
also.
Mission and vision: To satisfy the customers wants and demands through offering the best
quality food products (Wellin, 2016). To acquire the profit and enhance market share through
adapting new technological advancement in operations.
Purpose: The main aim of the company is to maximize its profit and revenue by increasing
market share and customer base. And to expand its business operations in international market.
Legal structure: Morrisons Plc has article of association, Memorandum of association and after
getting the certificate of incorporation the company started its operations as a private limited
company.
Organisational structure: Morrison plc is private limited company and follows the hierarchy
organisational culture. As per the hierarchy culture, company has to follow the formal rules and
regulation that are being made buy the top executives of the organisation. Morrison plc has
around 130000 employees that are working in ore than 500 stores.
Key stakeholders: The main stakeholders of Morrisons plc is their shareholders, customers,
employees, suppliers, distributors etc. Morrisons aims to return the higher capital to their
shareholders (Quigley and et.al., 2018). The company focuses on providing the customers by
offering them quality products at effective prices. Morrisons plc has a huge workforce of 130000
employees.
Public organisation: British Broadcasting Corporations (BBC) is a government owner
public organisation. It is a public service broadcaster, its headquarter is in Westminster, London.
It is one of the world's oldest national broadcasting organisation.
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Mission and Vision: To enrich the people's life with programmes and services that inform,
educate and entertain them. To be the most creative organisation in the world.
Purpose: to provide the entertainment, education and knowledge to the people.
Legal structure: The BBC Company has been established by the British Broadcasting
Corporation by royal Charter (Saunders and Lewis, 2012). Its governance and funding
arrangement are carried by the Royal Charter and the government.
Organisational structure: British broadcasting corporation is world's one of the oldest
broadcasting organisation and the largest in the world by the number of employers. The
organisational structure of BBC consists of the board of governor, Executive Board, Creative
Board, the Journalism Board, and the Commercial Board. All the boards will give their reports to
the Executive board which was taken to the Board of Governors. The board of governors will
ultimately reports to the queen of England. The Board of Governors are appointed by the queen
herself, that comprises of 12 trustee. The Executive Board has 9 directors who reports to the
director-General.
Key stakeholders: the main stakeholders of BBC comprises of its viewer and customers, its
employees, shareholders and government of UK. BBC has over 20950 employees. Being a
public organisation , it is one of the main source of income for the government of UK.
Voluntary organisation: Well-come Trust is the biomedical research charity based in
London, United Kingdom. The organisation indulge in supporting the scientist and researcher in
more than 70 countries to improve the new ideas to improve the health of human kind and
animals.
Mission and vision: to achieve the extraordinary improvement in health by supporting the
brightest mind.
Purpose: to improve the health of everyone by helping the great ideas to thrive.
Legal structure: The Wellcome Trust is governed by its constitution. The trust is a charity
registered in England and Whales (Types and Forms of Business, 2018). The sole trustee of the
Wellcome Trust is The Wellcome Trust Limited, a company limited by guarantee registered in
England. It is registered as per the article of association and Memorandum of association.
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Organisational structure: The Wellcome Trust is the independent, global charitable foundation.
It is regulated by the charity commission. It is one of the most wealthiest charitable foundation in
the world. Most of the decisions are taken by the Board of Governor. This board is responsible
for all working activities of Wellcome Trust. The day to day management is operated by the
Executive team members. They follow the flattered organisational structure.
3. Explaining the function of Morrisons Ltd. And the way it interrelates and relate to the
structure.
The organisational structure of Morrison’s plc is in hierarchy form, which had 6 levels.
There are various departments that have completely separate functions, which consist of:
Finance, Human Resource, Market Research, accounting, administration, Production etc.
however, it can be said that despite of having different organisational functions this departments
interrelates in order to take out the smooth operations of the organisation. The top executives or
Board of directors make the policies and decisions for the future growth and target off the
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company (Stare, 2011). This policies and objectives are communicated to all levels of the
organisations through hierarchy form. In order to increase the revenue of the business, marketing
team will conduct their market research in order to find the demands of good and the customers
need. Marketing team required effective marketers for their functions, in order to fulfil their
requirement HR department will perform their functions to hire and give training to the efficient
candidates. The marketing team will help the HR department to make the job description.
After completing the task both the department will depends on the Finance department. In
order to make the market research, the mark,et team will require funds and in order to make the
hiring and training process HR department will also requires funds. The finance department will
perform their functions to make budget for both HR and marketing department and allocate them
funds accordingly (Fisher, Campbell, and Svendsen, 2012). The finance department will take the
information from accounting department regarding the expenses and revenue in order to make
budget reports. The market research team will give the information to the production department
regarding the need of the inventory. Based on this information, production department will
manufactured the inventory. The sales team and distribution team's function is to make this
inventory available to all retail stores and increase the sales of the products in order to increase
revenue which will assist in achieving the desired target and goals of the company.
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4. Identifying the negative and positive impact of macro factors on Morrisons plc operations.
PESTLE analysis is an important tool which assist the management in making effective
strategies in order to analyse the impact of the macro business environment factors on Morrisons
plc. However, it can be said that this impact could be negative as well as positive at some times.
The PESTLE analysis of Morrisons plc are as follows:
Political: It is the change in the political condition or policies of a country that may have
direct impact on the operations of Morrisons in that country. Such political factors includes
political stability, level of corruption, the level of interference of government rules and
regulations in the retail industry (Taylor, Bulak and Morrison, 2016). The level of tax, trade
regulations and tariffs are also included in the political factors of the country. The positive and
negative impact of such factors on Morrisons plc are:
Positive: Low interference of government in retail industry will assist in smooth operations of
the company. Low tax and tariff rates will increase the profitability of the company and
maintaining the export and import of the company's product.
Negative: The situation of Brexit are affecting the operations of Morrisons plc and changes in
government policies are impacting the profitability of the company.
Economical: this are the factors that affects the investment value of a company. The
growth rate, inflation, exchange rate and stability are some economical factors that can affect the
organisations functions and its revenue in country. The level of infrastructures, skill level of
workforce, education level are also some factors (Yang and et.al., 2014). This factors have both
positive and negative impact on Morrisons plc.
Positive: The skilled workforce and better educational level on country will assist the company
to have more productive outcomes from its operations which help in contributing in the overall
growth of the company.
Negative: Due to the Brexit, the rate of inflation in country has increased it results in affecting
the profitability of the company(Yang and et.al., 2014). Declining in the exchange rate has
increased the cost of product in import which results in declining the revenue from the selling of
product.
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Social: Country's culture and social values also affect the operations of company. Such
social factors are compromise of customers need and demands, demographic and skills of the
people, beliefs and attitude of the society, class structure etc. such factors have both positive and
negative impact on Morrisons plc:
Positive: The favourable culture of the society will assist in increasing the skills and behaviour of
the people which make a good organisational culture and increase the growth rate of the
company.
Negative: Brexit has also affects the spending and purchasing power of the people that has affect
the profitability of Morrisons plc. The level of education will also affect the growth of the
organisation.
Technological: With the increase in use of the technology, there are many technological
factors that needs to be analysed like, development on technological advancement in operation,
impact on cost structure, impact on product offering etc (Giljum and et.al., 2011). The impact of
technological factors on Morrisons plc are:
Positive: adapting the new technology in operations will help in reduce the cost and time which
leads to remove the waste efforts and helps in increasing the efficiency level of the operations.
The use of digital technology in operations also assist in increasing the customer satisfaction
through analyse the recent trend and market needs.
Negative: By implementing the technology in company's operations will increase the cost to the
company, hence reduced the net profit. Company needs to hire new skilled employees which also
creates cost burden on the company.
Legal: Different legal framework of a country is very important factor which affects the
operations of the company. Some legal factors which can affects Morrisons plc are
discrimination law, consumer protection law, employment law, intellectual property law. This
law can affect the profitability of Morrisons plc.
Environmental: These are the factors that are concerned with the environmental
sustainability and the ethical factors. Such factors includes the reduction using plastic, laws
regarding waste management in consumer services. This factors impact as the consumer are
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conscious for the company for adapting environmental healthy practices. It will assist in making
goodwill in market which helps in attracting more customers towards the company.
5. SWOT analysis of the Morrisons plc and their interrelationship with the external factors.
SWOT analysis of Morrisons plc and its interrelationship with external factors are:
Strength :
 The key strength of Morrison plc includes its efficient supply chain and distribution
network which assist it in increasing sales and revenue of the business.
 It provides a vast range of products to the customers which helps in attracting more and
more customers.
 It has increased its operations through online retailing and shopping with helps in
increasing its business (Messai and Jouini, 2013). It can interrelate to the technological
factor through implementing and enhancing the product and services through adapting
technological advancement. Morrisons has good brand value in UK retail industry. Thus, changes in the political
factor will not affect the operations of the company.
Weakness:
 Morrisons is not expanded to the global level, it can results in limited market share and
limited customer base. Company is facing some legal issue which results in its brands image, company has to
consider different legal factor that can affect its operations and revenue.
Opportunities:
 Company can expand its operations in the foreign market as it has good brand image in
retail sector of UK.
 Company can provide discount and online shopping in order to attract the customer. Morrisons has opportunity to expand its business in other sectors as well.
Threat:
 Other competitors in market are expanding their business in global level.
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 Changes government laws, taxes and other political factors are affecting the operations
and overall profitability of Morrison’s plc.
 With the incensing in the technological factors like online shopping and e-commerce,
other companies can affect the business of Morrison plc
6. Explaining the internal and external analysis and their influence on decision making process.
From the analysis of the macro and micro factors of Morrisons plc which impacts its
overall operations and decision making process (Quail and Joyce, 2013). This factors are
interrelated to each other and will affect the decision making in following ways:
 Not being a cost leader company, will affect its operations at the time of inflation, the
social factors like less spending power will also affect the sales of the company.
However, being the leading brand and good customer base can help the company to
maintain its revenue level.
 The increasing of the technological factors also affect the internal factors as the customer
can rate and review the prices of the company through website. With continuously
adapting new technology company can achieve new methods of promotion and attracting
more customers.
 With the increasing in the factors related to environmental factors like different laws are
becoming threat for the company (Bitektine and Haack, 2015). With adopting several
techniques and strategies like reducing using plastic bags can reduce the threat of the
laws and increase goodwill in the market.
CONCLUSION
By summing up the above report, it can be concluded that in any business organisation.,
its structure, culture, functions plays a vital role. There are different types of organisation which
differs on the basis of their functions and activities and their structures. The present report has
concluded different types of organisations and effectively explained the differences in them on
the basis of their functions, purpose, legal structure, organisational structure. The report has also
concluded their potential stakeholders, their scope and size. It can also be analysed from the
report, the interrelationship between different department and their functions and their
relationship with the Morrisons plc.
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REFERENCES
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biological soil crusts: a comparison of solvents for spectrophotometric determination. Soil
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Taylor, B. E., Bulak, J. S. and Morrison, J., 2016. Dominance of invasive mollusks in the
benthos of Lake Marion, a large impoundment in South Carolina, USA. Fundamental and
Applied Limnology/Archiv Für Hydrobiologie. 187(3). pp.247-261.
Trinh, L. A., Chong-Morrison, V. and Sauka-Spengler, T., 2018. Biotagging, an in vivo
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