Business and Business Environment Assignment Sample 2

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Comprehensive Analysis of Organisation Types, Structures, Functions, and Environmental Factors

Introduction of Assignment on Business Environment

Organisation different types and their purposes will be discussed and defined in this report. How their scope, purpose, structure, and size matter to the Organisations will also be discussed. This report also defines the link between their sizes and scope with the Organisation's objective. What are the functions of the Organisations and how they are linked to their structure and objectives? How functions of the Organisation will have an impact on their structure and how the functions of Organisations have some disadvantages and advantages to the Organisation will also be shown in this report. The better the understanding of the macro environment will be by Organisation better they will know the negative and positive aspects shown in this report. The macro-environment analysis through the PESTEL model will be covered in this report. Critical evaluation of both macro and microenvironment and how SWOT analysis defines the change in decisions and objectives of the Organisation will be covered.

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(LO1) Alignment of Organisational Structure, Size, and Scope with Strategic Objectives

P1. Types and Purposes of Different Organisations Types

  • Partnership Organisation- The partnership Organisation is that type of Organisation which is formed and owned by 2 or more people involved in it. In this, they can invest a small or big amount of money in it to run their business and all the owners of the Organisation are liable for their profit and loss sharing between them.

Purpose- They form the Organisation with the motive of fulfilling their motive or objective interest in some type of business and to serve something in the market and to earn the profit from it.

  • Private Organisation- The private Organisation is that which is owned and controlled by the private owners only and there will be no share of the government in it till they convert it into a public company. A private company can be started by any person who has the interest to start an Organisation. This can be big or small.

Purpose- The purpose of the private Organisation is to have full control over the business and run the business according to their interest and motive or objective which they want to fulfill and gain (Tariyan, 2016).

  • Medium-sized Organisations- These Organisations are those in which there will be up to 250 employees in it and this can be a family business or privately or publicly owned by a person or government. Their investment is high in the amount and this type of Organisation, there is more complexity in their business operations as compared to small size Organisations.

Purpose- They form to serve the society with the products or services through which they can solve their problem and also want to earn more profit from it and build a good big Organisation

P2. Size and Scopes of different types of Organisations

  • The sizes of the partnership Organisation are mostly medium in size with average investment in the business and they mostly start with the small size of the market in the starting. They have a minimum of 2 people and can have up to 20 people in the partnership of their Organisation. The size of their product line may be big or small both in size.

Scope of the partnership Organisation is that loss, profit, and liabilities will be shared by all the partners of the Organisation. Doing all the things which will lead to the success of the Organisation growth

  • In a private Organisation, the size will be small, medium, and large all and this depends on the type of private Organisation a person starts. The investment also depends on the type of the Organisation they have and their employees differ in size like in small it will be fewer employees and in large there will have more employees (Daud et al, 2018).

The scope of the private Organisation is that they have a different level of legal formalities according to the formation of the business they have in private Organisation. They have limited liabilities which the owners have to bear according to their portion of investment and share in it.

  • The size of medium-sized Organisation employees are up to 250 peoples in it and their turnover and investment will be big as compare to the other small Organisations. They are big so they have high complexity in their Organisation. The size of their production level is also big and the size of their department and structure is also big.

Scope of the medium-sized Organisation is that the level of the risk in this type of Organisation is high and the size of the profit is also high as compared to others. The liability of the owners of the Organisation will be more as they have invested so much money in it.

M1. How Structure, Scope, and Size of the Organisations are linked with their objectives and product or services

  • Every Organisation made their structure, size, and scope according to their objectives of opening or starting an Organisation and the type of product or services they are set to give to their target and in this way, this shows that they all are linked with each other to achieve the main motive of the Organisation.
  • When the objective of the Organisation is to established the business in more than one country then they will make that type of structure and size of their Organisation so that they can meet their requirements of establishing their Organisation in different countries, as to run in a large area they need big structure and size of their business so they can meet and match the requirements.
  • They make the size of their Organisation big if the product which is they are going to serve is technically complex and need the big size of outlet and layout of their Organisation area, in this way also they linked with each other (Mutebi et al, 2020).
  • In private Organisations, the owner can open a small or large Organisation according to their funds and interest and motive for opening their business, and to meet those requirements they formulate that type of structure of the business so they can coordinate all their activities and tasks according to their Organisations.

(LO2) Organisational Functions and Their Impact on Objectives, Structure, and Performance

P3. Relationships in Organisational functions and link with Organisation objectives and structure

Relationships in Organisations functions:

  • Research and development function of the Organisation has a direct relation with other functions of the organisation as it can be seen that according to the finance of the organisation the money is invested in the R&D function of the business and relates with other functions like Human resource department also as for the R&D they need human resource without them they cannot operate that thing.
  • The sales function of the Organisation is related to all other functions of the Organisation as when the product is invented by the R&D department then only the Organisation will come up with a product and then it will go for the production of that product and to get it in the market they need the sale function of their Organisation.
  • The finance function also has a relationship with all the other functions as without the finance no other function can work out like R&D, Marketing and Sales, Production and other functions as every other function needs money to operate their functions and in this way, all functions of the Organisations have a relationship with each other (Poursafar et al, 2019).

There link between organisation's objective and structure

  • The Organisational function has a link with the organisation objective and structure as according to the objective of the Organisation all the functions are work like when the company wants to establish a big market with their product then they will need finance for expenditure and marketing and sales function for the boost sale of their product or service in the market.
  • All the functions of the Organisations are worked separately in the form of different department and this department coordinate and worked together when they form a structure of their work through which they can share their information and flow a formal way of communication between each other in this way also they are linked.

M2. Advantages and Disadvantages of different Organisational functions and their impact on their structure

Advantages:

  • Increase the speed of the working of the Organisation as when all the functions will work together with the support of every team, then they will better know what they have to do and what they don't have to do and according to that they work fast and this increases their speed.
  • Brings clarity on every level of the Organisation functions departments, as when information is shared timely and right information shared which can be used by all of them then it will automatically bring down the clarity between them. Clarity is the key to success for every type of Organisation (Abdussamad, 2017).
  • The profit maximization motive of the Organisation will be easily achieved, as when the right product will be innovated by the R&D department and it will be timely marketed and sale by the other function department then it will be able to get reach to their customer mind on time and can help them to face competition and can achieve their target market on time.

Disadvantages:

  • Poor Coordination between the Organisation functions, as different functions have their way of doing their work and sometimes there will be the chances of conflicts between them if they don't like the way of working of each other functions.
  • Creating a good bond between the different functions departments are not easy, this is a complex work in the Organisation and most of the times it happens that some functions department have a good bond with one function and having a bad bond with another function which creates a difficulty in the Organisation work.

Their impact on Organisation structure:

  • If the bonding will not be good between the Organisational functions then they will not follow the Organisational structure properly for their sharing of the information and coordinating all activities and tasks between them this will have a bad impact on the structure of the Organisation (San Cristóbal et al, 2018).
  • If the Organisational functions will coordinate their work with each other functions then they will share and do their task with keeping in mind the needs and wants of the other functions and if they do so their operation of the Organisation will be increased through the Organisation structure and this can take a good impact on the structure as they will systematically follow that.

D1. Different business structure and interrelationships of different functions of Organisation critical analysis

  • It can be seen that the more complex will be the operation of the Organisation and the bigger the size of the Organisation then their business structure will be that much complex as to handle a large level of departments with many employees in it then a complex structure will be made by the Organisation to handle it and this increase the complexity of the structure.
  • If the different functions of the Organisation will be well-coordinated with each then it will bring out a good bonding between all of them and it will increase the success rate of the Organisation, as all will be focused towards the one objective of the business and give their full potential in it.
  • The better the business structure of the Organisation will be there, the better the functions of the Organisation will be able to share their information with each and the information will easily flow from top to bottom and from bottom to top which will fulfill the needs and requirements of all the departments. They will be strong in the discipline (Poursafar et al, 2019).

(LO3) Understanding the Impact of the Macro Environment on Business Operations

P4. Macro Environment positive and negative impact on the business operation

Positive Impacts of it:

  • The business will be easily able to expand their business in different countries if the political factor will be in favor of them, as it is very necessary to have a stable political government who made the rules and regulations in the favor of the company.
  • It will help in capturing a good market share through their old and new product in the market, as through the macro environment they will be able to understand their competitors well, that what they are thinking and what they are planning to capture the more market share.
  • Helps in increasing the profit of the business, as when they will properly study their external environment then they will be able to know the new trends and upcoming threats and opportunities for their business and they can capture those things in their business and can increase their profit (Alabsy, 2016).

Negative Impacts of it:

  • If the Organisations don't do proper research of their macro environment on a timely basis then they will be able to lose good opportunities which are available in the market and due to which this can affect their business operation, as those opportunities will be capture by the other business.
  • If they don't keep an eye on their existing competitors and the new competitors who can come into their market and capture their well-settled business market, then they will lose their old captured market share, so it is very important to have an eye on the macro environment otherwise it will negatively impact your business (Okeke et al, 2020).
  • Technology adoption is the key to success and if the business will not adopt and follow the new trends in the tech market, then they will lose the race of the business, as with the help of the new technology they can boost their production and sales and if they don't adopt it they will harm their business.

M3. PESTLE model for the Macro environment analysis within an Organisation

  • Political Factor is any Organisation who is dealing in various countries so any change big or small in any country in which they operate the company has a direct impact on their business due to a sudden change in the policy related to the food industry. So they have to follow and adopt all the political changes in their business on time.
  • Economic Factor is related to any change in the consumer budget that is the targeted market of the company that can affect their business. As they operate in various countries so any sudden change in the prices of the raw material due to the country's condition will affect their business directly (Rizal et al, 2017).
  • Social Factors related to any change in the needs and demands and lifestyle of their targeted customer then they will face problems in the selling of their products. As they have to need to adopt different cultural according to the different target markets so that they can best suit their product to the customer.
  • Technological Factor states that companies have to adopt new ways and innovations in their technology so that they can make the quality of their products good and can reach their customer in a short time by understanding them and adopting the e-Commerce will help them to grow business. The better timely adoption of technology helps the company to survive and face competition.
  • Legal Factor means if there will be any change in the government regulations related to the laws of the food industry can affect the company whole operation work, as different countries have different laws and standards for the food quality and they have to meet with that to operate and survive in the market.
  • Environmental Factor states that the Organisation that to have a good image in the minds of the customer they also need to do some sort of cooperate social responsibility like by donating something to the society needed people, providing the best and healthy products in the recycling packet which can save the environment (Fosher, 2018).

(LO4) Analyzing Organisational Strengths, Weaknesses, and Their Interrelation with Macro External Factors

P5. Analysis of Internal and External environment to identify strength and weaknesses of the Organisation

Organisation Strength:

  • To develop new products or to innovate in the existing product with the help of analyzing the external environment.
  • Helps in expanding the business operation in other countries by understanding the new opportunities in the market.
  • To adopt the new way of increasing their marketing and sales of the products and services by knowing the new ways and matching and updating old ways of doing that.
  • They can know about the upcoming threats from the external environment which can harm their business (Matovic, 2020).
  • The research and development department can be a strength for the Organisation by researching the ways of upgrading their existing product to retain the customers.

Organisation Weaknesses:

  • Lack of proper support from the top management can lead to a delay in the operation of the Organisation and can reduce the productivity of the employees if they don't focus on their internal growth and development of the employees.
  • Sometimes the manager neglects the external environment opportunities and threats and due to which they can hard their Organisation's operation in the future when they were not able to gain profit in the future period.
  • Financially not strong as compare to their competitors then it can become an issue and weakness for the Organisation, as due to this they will not be able to face the competition properly and this will lead to their loss of the opportunities (Hajizadeh, 2019).

P6. Macro external factors interrelate with weaknesses and strength

Every Organisation can find out its strengths and weaknesses when they can research about their external environment in which they are running their business, as then only they can know that in what things they are superior form its competitors and in what things they are weak in comparison to their competitors, in this way they are interrelated with each other.

When they keep their eyes on the external environment then only they can know the economic conditions of the country in which they are running their business and after knowing the condition then only they will be able to know that if this condition can become their Organisation strength or weakness.

The legal laws or legal factor which is governed by the government which is external environment and out of the control of the Organisation, so when they update themselves about this after analyzing the external environment they can know that if this can be their strength or weakness which can help or harm their business operation, in this way macro external factors are interrelated with weaknesses and strength (Abdel-Basset et al, 2018).

M4. SWOT analysis influence the decision making of the Organisation

  • The SWOT analysis which is S for Strength, W for weaknesses, O for Opportunities, and T for threats always influence the Organisation decision making related to their various departments like marketing and sales, finance, etc, as when the Organisation is financially low in budget then their decision to do high marketing will not be a success or achieve.
  • New product opportunity is seen by the Organisation and they make the decision to develop that but they have weakness in their R&D department as they don't have enough good employees who can capture that opportunity and this way their decision will be influenced (Nwakoby et al, 2017).

D2. Critical evaluation of micro and macro factors impact on business decision making and objectives

  • If the internal Organisation people will not be well coordinated and supportive then they will not be able to achieve their objective of the Organisation.
  • The Organisation's decision of new launch of the product and sudden change in government and change in the rules related to those products which they decide to launch will stop to launch in the market.
  • If the top management and manager both don't trust and focus on the marketing team research then they will lose the market and their objective of capturing a new market and retain the old market will be not successful properly (Hajizadeh, 2019).
  • With the help of micro and macro factors, the business can achieve its objectives and fulfill their decision making which they made for the Organisation.

Conclusion

The conclusion from the above report brings out that every different Organisation has a different size, scope, and purpose, and objectives, and all these are linked with each other. The Organisational structure and objectives are linked with the various Organisational different functions which coordinate and help each other to fulfill the requirements of each other. The functions of the Organisation are linked and they also have their disadvantages and advantages to the Organisation structure. Every Organisation observes their external environment as this macro-environment have both its negative and positive impact on their operation. The PESTEL model shows and describes the external environment of the business more perfectly. Both the internal and external environment brings out some weaknesses and some strength for the Organisation and that also shows how they are interrelated with those factors of the environment in the Organisation. The decisions which Organisation make and objectives which they set are influenced by the SWOT analysis of the Organisation.

References

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Abdussamad, Z, 2017, 'The role of leadership functions and Organisational culture improving employee performance', Management and Business Review, pp.24-29.

Alabsy, N, 2016, 'Macroenvironmental Factors Affecting the Choices of Mobile Phone Subscribers: Evidence from Saudi Arabia and Yemen', Journal of Marketing and Consumer Research23, pp.57-62.

Beltramino, N,S, Lema, D,G,P,D, and Juárez, L,E,V, 2020, 'Impact of the human capital on the performance of micro-enterprise: an empirical study in Argentina', International Journal of Entrepreneurship and Small Business40(4), pp.439-464.

Daud, S, and Asha'ari, M,J, 2018, 'Sustainable Marketing and Corporate Sustainability Performance: Moderating Role of Organisation Size', Global Business and Management Research10(3), p.919.

Fosher, H, 2018, 'Understanding the Marketing and Management of trails using PESTEL Analysis'.

Hajizadeh, Y, 2019, 'Machine learning in oil and gas; a SWOT analysis approach', Journal of Petroleum Science and Engineering176, pp.661-663.

Matovic, I,M, 2020, 'PESTEL Analysis of External Environment as a Success Factor of Startup Business', ConScienS, p.96.

Mutebi, H, Muhwezi, M, Ntayi, J,M, and Munene, J,C,K, 2020, 'Organisation size, innovativeness, self-organisation and inter-organisational coordination', International Journal of Emergency Services.

Nwakoby, N,P, Ezejiofor, R,A, and Ajike, A,K, 2017, 'Effect of SWOT Analysis on Performance of Manufacturing Firms in Nigeria', International Journal of Innovative Finance and Economics Research5(4), pp.40-51.

Okeke, A,U, and Onyemechara, C,C, 2020, 'AWARENESS LEVEL OF THE INFLUENCE OF MACROENVIRONMENTAL FORCES ON THE OPERATIONS OF SMALL AND MEDIUM SCALE ENTERPRISE IN ANAMBRA STATE', Journal Of The Nigerian Academy Of Education14(1).

Poursafar, A, Rezaei, S, and Mahalle, A,H,S, 2019, 'The Mediating Role of Job Satisfaction in Relationship between Mentoring Functions and Organisational Commitment among Hospital Personnel', Depiction of Health10(4), pp.287-299.

Rizal, O, Suhadak, M, and Kholid, M, 2017, 'Analysis of the influence of external and internal environmental factors on business performance: A study on micro small and medium enterprises (MSMES) of food and beverage', Russian Journal of Agricultural and Socio-Economic Sciences66(6).

San Cristóbal, J,R, Fernández, V, and Diaz, E, 2018, 'An analysis of the main project Organisational structures: Advantages, disadvantages, and factors affecting their selection', Procedia computer science138, pp.791-798.

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Organisational Functions and Their Impact on Objectives, Structure, and Performance

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