Analyzing Organizational Functions and Structures in the UK

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Business and Business Environment
Task 1
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Executive summary
The underlying study in this report aims to provide the readers as well as learners the basic
concept and understanding of the various kinds of organizational functions and their
objectives and scope of growth in the market economy. The report also includes a brief study
of the different internal and external factors and the advantages-disadvantages of the same.
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Table of contents
Introduction................................................................................................................................4
LO 1: Explain the different types, size and scope of organisations...........................................5
LO 2: Demonstrate the interrelationship of the various functions within an organisation and
how they link to organisational structure.................................................................................11
Conclusion................................................................................................................................13
References................................................................................................................................14
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Introduction
The business culture in the United Kingdom is one of the most developed across the world.
The country since the beginning of the industrial revolution is committed in creating the most
supportive business environment across the region which has helped the nation achieve
prosperous business led environment. In this study, the three vivid sectors of UK’s economy
have been studied initially. These are the public, private and voluntary organization. The
background details, size, scope and various other related concepts of these organizations have
been stated. Also, the small, micro and medium scale organizations have been studied for the
purpose of examining how these sectors also form a part of the United Kingdom’s huge
business economy. The growth prospects, the market forces and operations and the
international business environment scenario are also studied.
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LO 1: Explain the different types, size and scope of organisations
Explanation of the different types of organization, the growth prospects in international
business environment, its market forces and economic operations.
United Kingdom is one of the developed nations in the world with respect to the size and
scope of the business environment. In this context, three organizations namely a public,
private and voluntary is explained in brief below:
Public sector
In the UK’s economy, the public sector companies are a shared ownership sector where in a
public can purchase its shares without any hurdles and complications. British army and
British council are an example of the public sector based out of UK.
Private sector
In the UK’s economy, the private sector companies are eventually those who focus on the
profit and revenue margin and as such these companies are basically owned by private
individuals. Greenergy and Swire can form the examples of such private companies based out
of United Kingdom.
Voluntary sector
In the UK’s economy, voluntary organizations form those companies that are basically
operating on funds and donations and unlike the private sector, these organizations are not
profit oriented and in fact these organizations serves a greater good for humanity across the
entire region of UK. The British Heart Foundation, Wellcome Trust is one such example of
voluntary organization.
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Evaluation of the three chosen public, private and voluntary organization with respect
to its background details, size and scope, objectives, legal structures and their respective
stakeholders
Aspects Public organization Private
organization
Voluntary
organization
Name of the
organization
Child maintenance
service
Brakes group Bernardo’s
Background details The company
basically deals with
providing child’s
everyday living costs
The company is a
leading food
wholesalers
company.
The organization is a
charity house based
out in UK.
Objectives The objectives
include providing a
child its various
needs from clothing
to food.
The objectives of the
company is to
broader its
productivity in non-
specialized wholesale
food (Hamilton and
Webster, 2018).
The objectives of the
organization are to
provide care for
vulnerable children.
Size The organization is
full of qualifying
representatives and is
a large organization
The size of the
company is by and
large covering the
areas of different
schools, hospitals
and hotels.
The size of the
organization involves
its 17000 volunteers.
Scope The scope of the
company relates to a
broader concept of
providing daily
essentials and a home
to the children in
need
The scope of the
organization is wide
and aims to cover a
larger retail as well
as whole sale’s
market in UK.
The scope of the
organization relates
to its implications
involving the
recovery of British
children that are sent
abroad as child
slaves.
Legal structures The company is
based out of United
Kingdom and all its
legal structures
involve the use of
entity of public legal
structures since the
organization is a
leading public sector
company.
The private company
involves in its legal
structures all set of
private rules and
regulations.
The legal structure
involves policies and
regulations covered
by its trustees and
donors.
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Key stakeholders The key stakeholders
are the various
government agencies
and the government
in power itself.
The key stakeholders
are its partners and
various customers.
The donors and fund
organizers are its key
stakeholders.
Table 1- Different types of organizations
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Structures of small, micro, medium and large enterprise
Small Micro Medium and large
enterprise
Size
The size of the
organization is small
as such and employs
only 50 employees.
They occupy not
more than 5% of the
market share and
turnover profit
accounts for 480
billion pounds per
annum (Prajogo,
2016).
The micro scale
industries generally
employ less than 10
employees and their
size of operating
business is somewhat
larger than that of the
small scale
organizations. They
occupy not more than
2% of the market
share and expected
turnover profit results
for 100 billion
pounds per annum.
The medium and the
large scale industries
employ around 250
to 350 people. These
companies market
share accounts for an
overall 17% to 25%
and their market
turnover profit results
for around 590 to
1600 billion pounds
per annum.
Scope
The scope of the
industries belonging
to the small scale
sectors are scattered
to the forms of
focusing of short
term goals and as
such their goals are
not as broad as any
large scale
organizations
operating in UK.
The scope of the
micro scale industries
is its focus on short
term profits.
The medium and the
large scale
organizations scope
are broader. These
organization set
different agendas and
focus on their
respective revenue
margin.
Objective
The only vital
objective of the small
scale organizations
are to survive and
sustain in the intense
market competition.
The objectives of the
micro scale industries
cater to the need of
various upcoming
near future profit and
their production of
quick goods and
services (Hillary,
2017).
The objectives of the
medium and the large
scale organizations
are basically
customer oriented.
These organizations
set varying objectives
during different
stages of production
to generate the most
out of it in the form
of profit and revenue.
Table 2- Small, micro, medium and large enterprise
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Legal Structure
The legal structure of any organization provides an important style and structure to all the
business sectors operating based out of UK. Such structures form a basic format of all the
organizations on a timely manner based on appropriate legal considerations.
Size and scope of organizations
Global growth and developments of Transnational, International and global
organizations
The global growth refers to the overall economic growth in the economy that is measured in
the country’s total productivity output. The transnational organization refers to the
organizations that cater internationally and surpasses the idea of nation-state. The
international organizations relates to international business structures along with international
scope and membership (Ji-fan et al., 2017). The global organizations cater its business
operations to many countries including international alliances.
Differentiation between Franchising, Licensing and Joint venture
Franchising
Franchising is a procedure of using a brand name and business models for conducting another
business with prior assistance from the franchiser and with appropriate legal measures.
Licensing
Licensing is a right that companies own. According to the hold of such legal licenses, a
company has the sole and absolute moral to sell the right to use its intellectual property to any
of its desiring customers who have asked for it.
Joint ventures
Joint ventures are way different from what franchising and licensing is. A joint venture is
generally an agreement between two companies who has either agreed to aid each other’s
company with resources or with assistance. Such a form of agreement is basically taken
under consideration when companies are largely seen to be interdependent on one another
(Nohria, 2017).
Industrial structure and competitive analysis
The strategy development of organizations is dependent largely on the industrial structure and
its competitive analysis. The industrial structure refers to the numbers and size distribution of
the varying companies and the competitive analysis involves the criteria of identifying an
organizations different competitors and examining their respective strategies to develop better
strategies of their own kinds (Meyer et al., 2016).
Market forces and economic operations
The market forces refer to the various economic factors that affect the prices, demand and
availability of the different kinds of commodities and services that an organization excels in.
The goods and services are always to an extent influenced by the economic operations that
are the different economies of scale which an organization takes into its systematic
processing for the company to perform better in their respective business segments.
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Growth of International Business Environment
There are certain factors that could be named as economic, social, political and
environmental factors that influence the growth and development of international business
environment. An organizations form, course of work and structure is greatly influenced by
these external factors which effects positively or negatively its performances in the
international market segment (Dyllick and Muff, 2016).
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LO 2: Demonstrate the interrelationship of the various functions within an organisation
and how they link to organisational structure
The interrelationship of the various functions within an organization and the linkages of
the same with their respective organizational structure
Various functions within an organization
Marketing
The marketing department of Brakes group generally woks on the various strategies and
agendas to market their products and services and create an awareness of their brand.
Finance
The finance department of the Brakes group ensures the generation of funds and revenue to
operate different capital activities.
Human Resource
The Human Resource department of Brakes group provides a formal framework to its
employees in order to generate profitability.
Relationship with their mission and objectives
The various mission and objectives of the organization refers to the strategies that it adopts
and the interlink ages between them that creates way for various growth and development
prospects.
The structures of the organizations
Bureaucratic and post bureaucratic structure
The bureaucratic and post bureaucratic structures are the formal style and forms of the
business organizations. Such structures follow identification of a hierarchical structure of the
concerned organization and both of these structures decision making capabilities are formed
out of a democratic process (Schaltegger and Burritt, 2018).
Parent structure
A parent structure is a form where the company which is referred to as the parent company
holds enough of stocks in all the other companies that it legally owns. It is important to note
that no parent company produces its own goods and services.
Strategic Business Units
The strategic business units are basically those industrial sectors which have an autonomous
division of a very large company which operates entirely as an independent body and takes
into consideration the sole responsibility only for the particular range of goods and services it
produces.
Matrix structures
The official structure that Brakes group follow is definitely the matrix structure for carrying
out a large number of international business worldwide (Geissdoerfer et al., 2018).
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Functional levels
The functional levels refer to the company’s involvement in the identification of the various
hierarchical structures.
Organizational structures and complexities of Transnational, International and Global
organizations
The various organizational structures of the Brakes group involves the functioning of
operational , sales , functional , matrix and bureaucratic and post bureaucratic
structures .These structures forms a basic structure and format under which the company
undergoes various functions and operations. For instance, the functional structure identifies
the hierarchy which helps to break down and closely examine the different levels and stages
in its operations. These help to check regularly the use of technology and the need of various
other things if required. Again, the transnational, international and global organizations help
to understand the various prospective of the organizational structure and aims towards better
business environment (Chandler, 2017).
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