In this report, a brief discussion about the different types of organizations will be done. The size and purposes and scope of the different organizations will be defined. How the organization functions are linked with their organization objectives will be discussed. The Advantages and Disadvantages of organization functions will also be discussed. What types of positive and negative impacts the macro environment is doing on the organization will be defined. The PESTEL model will also define. How to strength and weaknesses of the organization are interrelated with the external environment will also be discussed in brief and how the SWOT analysis have the impact on the decision making of the organization will be defined in brief which helps in better understanding about their impact on organization and impact of both the micro and macro environment on the business objectives will also be defined.
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P1 Different types and purposes of organizations
- Non-profit government organizations are those types of public sector organizations that are made with the motive of serving the society without the motive of just earning profit only from it. In this type of organization, the owners focus on how they can better solve the problem of the society by providing them some goods or services without keeping the thing in mind to just earn from it.
The purpose of this organization is to provide the facilities to the people in the society so that they can improve their living and solve their problems and issues which they are facing.
- Small Scale organizations are that type of private organization which is small in terms of the size of their employees and terms of their operation. In this type of organization, the capital input is less and they just start their business with a very small amount of product and they serve in a very small area because they don't have enough funds to put in it.
The purpose of this type of organization is to launch their product or service in the market with the motive of earning and capturing a target market for their product and to earn a profit.
- A sole proprietorship is that type of organization business which is run by the single owner who invested in the business to earn profit and in this type of business, there is only one person that is the owner and maximum 2 people in which one will be the servant.
The purpose of this type of organization is to earn that much money so the owner can survive their livelihood and have money for their expenses (Sani et al, 2018).
P2. The size and scope of the different types of organizations
- The size of the Non Profit organization can be small or big depending on the owner of the organization and their motive and objective of opening such type of business. As this type of organization's motive is to serve the society without having the motive of just earning profit so according to that their market size is also different on their objectives.
- Small Scale organizations are those whose size is not big they have very few employees in their organization which does not exceed more than 50 employees in their organization. They have a small size of investment in their business which depends upon their area of the market and the type of the product.
- The size of the Sole proprietorship business or organization is very small as this is only controlled and run by the single person who is the owner of the company, their market share, profit, and expenses size is very small limited to a small area where they located (Akbar et al, 2020).
Scope of these organizations:
- Non Profit government organizations they established only with the motive of serving the society and they don't have the motive to earn profit from the product or services which they serve in the society and they only serve those things which will be good for the society and which save the environment too.
- The Small Scale organization's scope is vast as they cover a variety of activities in their business and they are also labor-oriented and they also need a small amount of investment in this business and they don't need to use a high level of technology to run their business.
- The Sole Proprietorship is an organization in which the investment made by the owner is very less as they don't need to raise a high amount of funds from the outside, as from their own savings funds help they can start their business. They have less risk and fewer liabilities (Rathi et al, 2017).
M1 Link of business objectives and their product or services with their structure, size, and scope
- All the business have a direct link between their objectives, product, or services with their size, scope, and structure as it can be seen that a small scale organization will start their business with their objective of capturing a small market with their product and services and to earn a small amount of profit from it. The small scale organization's motive is to start their business with small scale and then after their success take to the high level and this how the structure, size, and scope help them to achieve their objectives.
- Nonprofit government organization also have a direct link between this as according to their objective of how much people and what type of product or services they want to serve to the society according to that they make their business size small or big and according to that they make their organization structure so that they can achieve their goals and objectives with the help of this. When the objective will be big to serve a large level of society then their business size will be big according to their needs and wants (Dong et al, 2020).
- In the sole proprietorship, the objective of the owner is to sell their product or service in the small area only where they establish their business and according to that they start their business with the small size only and their business structure is also very simple because it is owned and controlled by the single person only and they have very less risk and liabilities which directly match or link with their objective of earning profit in a very small amount and scale according to their investment (Sanjeev & Natrajan, 2020).
P3. Link of organization functions with their objectives and structures of the organization
- Finance the organization function have a direct link with their objectives and structures as according to their finance of the business they made their objectives that how much they have to spend on which activity and how much they need to get a return on their investment on the business as without finance no business can run and operate their business activities so the finance function of the organization is very important to be done.
- According to the organization objective that why they have open their business and what product and services they have to serve in the market according to that they do design and production function of the organization and this is also directly linked with each other as according to their product objective and structure of the organization they will design their business layout and do that type and many productions of goods which they needed to run their business (Rouhani et al, 2016).
- To achieve any objective the organization need the Human Resource which is also another function of the organization, no business can run without the help of the people in it, as they are the ones who give the business a direction and they are the ones who will run and achieve every objective of the organization and with the help of the human resource the structure of the organization is made.
- Marketing and Sales function of the organization is also linked with their objectives and structure as every organization objective is to make the high sales of their products and services which they build and with the help of the good organization structure and good marketing and sales of those products and services they will be able to achieve their set goals and objectives of the organization as in this way this can be said that organization functions are directly linked with their objectives and structures (San Cristóbal et al, 2018).
M2. Organizational functions interrelationships advantages and disadvantages and their impact on organizational structure
- Operational Speed- With the interrelationships between the functions it helps the organization in the speeding of their operational as when all the functions departments work together then there will be more accuracy in the work and all the tasks will be complete on time without any delay.
- The clarity in the work- This brings good clarity in the work when all the functions of the organizations will be interlinked and worked together with the focus on the single objective of the organization.
- Specialization- This brings the specialization in the work of the organization as when all the employees will be worked on the functions according to their skills and knowledge then it will bring specialization in their job work (Lin et al, 2020).
- The weak bond between the different functions of employees as everyone has a different specialist in their work will reduce the strong bond between them because of different knowledge and skills and their job profile.
- Coordination will not be good between the functions group of the organization, as everyone has a different way of doing their job so different functions group people have their way of doing their work in their time and this will lead to lack of proper coordination between them.
Their impact on Organizational Structure
- They may have a good or bad impact on the organizational structure depending on the type of the relationship between the different functions group that how they coordinate and work and behave with each other and according to that it will have a direct impact on each other.
- The command chain of the different functions department will flow systematically then it will have a good flow of the information in the organization structure, as when all finance, marketing and sales, and production department will share the necessary information well then their work will be done on time and in an effective manner (LETKOVÁ, 2018).
D1. Critical Analysis of different business structure and different organizations functions
- It can be seen that the type of the business structure will be there that type of impact they have on their organizational functions. As every structure of business have their way of working and flow of information and most of the time creates complexity in the organization.
- If the business structure of the different departments will be coordinate in a good way with each other then they will be able to manage all the organizational functions properly and this can lead to the achievement of the organization objectives (Remeikien? et al, 2019).
- Every organization follows a different business structure according to the size of the business and this also affects their functioning of the business. As if the size of the organization will be large then it will have more complexity in their functions and if the size will be small then they will have less complexity in it.
P4. Positive and Negative impact of Macro Environment on business operations
- When the government brings out the new changes in the industries which come into their favor of the business firm then they have a positive impact on its operations as they will be able to launch their new or old product in some other country also which they may not be able to launch before.
- New Technology brings out new ways of producing or making products for the organization which helps them to reduce their overall cost of the product and increase the profit of the company.
- When the purchasing power will become good for the consumer then this will have a positive impact on the business operation as now the consumer will buy more and business will produce more and sale more (Pupo Kairuz et al, 2020).
- If the business product doesn't suit the environment and the society then they will be a risk and negative impact on their business operation. As if people start thinking that the company product harms their environment and that is against society then the people will stop buying their product and businesses face issues in their operation.
- When the country economic condition will not be good then it will have a direct negative impact on the business operation as if the country may face the situation of inflation and deflation the condition of the market will be bad and not stable and then people will buy less and this will have a direct negative impact on the business operation (Phadermrod et al, 2019).
- If the government change the legal laws for the organization of any type of industry and it will not be in favor of the organization then it will negatively impact their operation, as government changes the law like from now the prices of this particular raw material will be high and this sort of products can't be sell in this country.
M3. Macro environment analysis within the organization with the help of PESTLE Model
PESTLE stands for:
Political- The political factor has a direct good or bad impact on all the types of organization operation and working in various countries. The amount of instability of the current government, stability, and policies of the government impact on the organization objectives, goals, and success
Economic- The economic condition of the country also affects the organization's operation as if the economic growth will be slow down then there will be less movement of the money in the country and the people will spend less and there will an impact on the organization sales. So the economic condition of the country in which an organization operates have impact on their operations.
Social- The social factor includes the attitudes and beliefs of the society people in which the company operates their business, so if there will be any change in their thoughts and thinking about the product and services of the company then this will affect their business.
Technology- The technology helps the organization in updating their internal and external operations and by updating this they will able to find new ways of the production of the goods and services and this will help them gain more profit (Pupo Kairuz et al, 2020).
Legal- The legal factor shows that the organization should follow ethical standards in their operation or production of their products and the organization should provide safety and healthy workplace for the employees and workers. The legal laws are made by the government to support and help the people.
Environmental- This environmental factor creates the challenges for the organization to sell their product in the market, as nowadays the population is updated so much that they want only those products which don't harm them in any way and want that product which also doesn't harm the environment as some companies use chemicals whose dispose of creates problems.
P5. Strength and Weaknesses of the organization identified with the help of internal and external environment
- With internal analysis, the organization gets to know that how many over and below the workforce in their organization to get a balanced workforce.
- They can know about their competitor's policies and actions from the external analysis.
- They can know their market position how good they are in their target market.
- Able to know about new opportunities in the market.
- They will be able to plan their training and development program for their employees by internal analyses which help them to increase their employee's skills and knowledge to deal with the new tasks in the job.
- If the company finds the new technology opportunity for their business but their financial position will be weak then they will not be able to capture the new opportunities.
- Sometimes while doing the internal analysis the manager doesn't focus more on finding out the problems in their employees then it will create issues further.
- Improper prediction about the future market through external analysis can lead to their loss of finance (Abdel-Basset et al, 2018).
P6. Strengths and weaknesses interrelate with external macro factors
The strength and weaknesses of the organizations are directly interrelated with their external macro environment which is Political, Economical, Social, Technological, Environment, and legal factors all this external environment shows how much they have strength and weaknesses.
In this Strength for the organization can be like if new political government come into power and their new rule and policies can become a good opportunity for their business expands and growth and this can be the strength for the organization as same, we can see the Technological factor also be a strength for the company as new technology can bring new ways of production of the product for the organization which can boost their production and sale of the product (Nakhratova et al, 2017).
In this Weaknesses can be like legal factors or legal laws made by the government to control the operation and activities of the organization, as if government launch new law to any industries like food industry like this standards will be regulated new then their old procedure will be slow down and this can become a weakness for the organization.
M4. SWOT analysis impact on the organization decision making
The SWOT analysis stands for Strength, Weaknesses, Opportunity, and Threats.
- The SWOT has an impact on the decisions of the company as if the organization is seeing an opportunity in the external environment that by adopting new technology they can boost their production and also they can reduce their overall expenses or cost of the product but the company is weaker in the terms of the financially then this has a direct impact on their decision making.
- If the company has a strength in terms of their marketing and sales department then they can do the marketing of their product in a very good way to capture the good target market but at the same time the organization has the threats in terms of their competitors as if their competitors are already providing a good same product with more features in it then their marketing will not become effective and this is also an impact on the decision making of the organization (Sutrisno et al, 2016).
D2. Macro and Micro both impact on organizational objectives and decision making:
- If the organization's objective is to expand their business in a new market with their existing product but they don't have enough finance and funds internally that they are not able to meet their objective and their decision making to do so get affected.
- The organization takes the decision making to have a new skills and knowledge development training program in the organization but the employees of the organization are resisting to organize that then their decision making gets affected by them.
- The organization decides to achieve their profit maximization objective by expending their business in some other countries also and when they get ready to do so suddenly the government of that country gets changed and they bring new rules and regulations which brings obstacles in the front of their new objective (Remeikien? et al, 2019).
- The organization decides to produce more goods for the future demand by predicting the market and decides to do so, but in the future, the economic conditions of the country go down due to which the income of the peoples also goes down and they decide not to buy many products this time and this how the decision making of the organization is getting affected due to the change in the condition of the economy.
- The organization has good strength in terms of their human resource and they are deciding to take new more projects for their organization but somehow such conditions arise that they workforce decide to leave the organization and due to this their decision making of new projects get affected due to the human resources (Nakhratova et al, 2017).
From the above report, it can be concluded that every organization has their objectives and motives which decide their size of the organization and purpose of the organization, and their size, scope, and purposes are directly linked with their objectives which creates their future. The organization's functions are also linked with their objectives as the functions of the organization will be done according to the needs and wants of the organization so that they can achieve their objectives which they have set. The macro-environment has both positive and negative impacts on the business operations and their decision making and their strength and weaknesses also. Their strength and weaknesses are directly linked with their macro environment. It is also found that the SWOT analysis of the organization is also having an impact on the decision making of the organization.
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