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Unit 6 Business and Business Environment Level 4 HND in Business

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Work Procedures of Various Organisations

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Introduction

There are the different type of organisations which are differentiated depending on their purpose and functions. However, these organisations are also interrelated to each other. The different type of organisations has their structure and their work procedures at different. It can be said that in this age of globalisation this different type of organisations is changing their pattern according to their customer's convenience. To this regard, it can be said that depending on the stakeholders and their response these organisations are changing their organisational policies. Finally, it can be said that the external business environment influences the various type of organisations. Therefore in this study, the understanding of different type of organizations and their functions and their interrelationship with the business environment will be explained.

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LO1 Explain the different types, size and scope of organisations

P1 Different types of organisations and the growth of the international business environment.

Private organization- The private organisation or company refers to an organisation which is owned by an individual or few individuals. The main purpose of this organisation is to gaining profit from the business process. Most of the private organisations either have one owner or few owners. The role of the shareholders is very important in the private organisation. However, it can be said that the private organisations have their share in the market and the shareholders of these organisations are associated with selling and purchasing these shares (Ojha, 2014). The private organisation can be build up by Corporation, a person, a partnership, Association or agency. However, finally, it can be said that the private organisation is not part of the Government of the country it is mainly privately owned. In addition to that, the individual organisations can be both profit and non-profit organisation. It can be said that the retail stores, local businesses, credit unions are examples of a private organisation (Saleh, 2015).

The growth of the private businesses in the international environment is flexible if enough investment or financial backup is possible. However, a private organisation can successfully develop their strategy for outside the national boundaries depending on the laws of those countries. However, there are few challenges they might face in the international borders those are related to language, human resource, etc. However, with collaborating with the private organisations in the International boundary, they can easily cope up with these challenges and expand their business for developing an international customer base (Ojha, 2014).

Public organization- A public organisation is part of the government. The government develops the public organisations and run for the Welfare of the society. It is operated by the government of the organisation which can be part of any type of government like the Federal government, rural state, local government, etc. However, it can be said that the public sector is referred to the educational organisations, police services, Healthcare services and other central government departments. The public organisations are mainly associated with the development of the country and providing the public of the country all the facilities they required (Nuottila and Kujala, 2016).

The expansion of a public Organisation in the international boundaries is related to the development of the country. However different banks which are publicly owned in the United Kingdom has expanded their business in the international boundaries for gaining more profit from other countries and contributing the profit to their country's development and growth process. However, if a public organisation wants to expand in international boundaries, they had to collaborate with the Government of those countries for the expansion process (Denhardt and Catlaw, 2014). This process is a most complicated process for expanding the business because it takes a lot of time and a good relationship between those countries.

Voluntary organization

The voluntary organisation is a different type of organisation which is associated with only the development of the state. However, these organisations are developed by volunteers with who share the similar belief and together in develop a group for the development of the society. Most of the time staff of these organisations and not have to pay. These organisations can develop with self-governance or can be funded by trustees (Mohiuddin and Dulay, 2015). However, the voluntary organisations are mainly known for their not for profit organisation. These organisations are being also funded by government sometimes. In addition to that common interest in the members of this organisation provides them with a specific place in the country sometimes the voluntary organisations and not always legally structured.

If a voluntary organisation wants to develop outside a country, they have to share a common goal with other countries voluntary organisations. These goals should be related to any social issue or for the development of the ethnic group. However, the voluntary organisations are not for profit organisation, and therefore the contribution of the country’s economy is nearly absent in this organisations (Mohiuddin and Dulay, 2015).

P2 Explanation of background details of the organisation

Private organization

One private organisation of United Kingdom is Marks and Spencer. This organisation has developed their business around 134 years ago in the United Kingdom. Today this organisation is globally spread, and they are associated with clothing, home products and luxury food products for their customers. This organisation is accounted under the Retail Industry and around 84900 employees worldwide (Marksandspencer.com. 2018). This organisation is international organisation and counted under the large size organisation. However, the Vision and Mission of this organisation is to provide the customers with the best quality of products for their daily life. The business objective of this organisation Marks and Spencer is to expand in every corner of the world. The organisational structure of Marks and Spencer refers to the limited level of management. This is associated with one administrative level and Frontline employees. This organisation structure is pyramid shaped, and in the top of the pyramid, the management and the bottom parts of the pyramid different organisational departments are associated (Zokaei et al. 2016). The different stakeholders of this organisation are the customers the employees and the suppliers.

Public organization

One of the public organisations of United Kingdom is higher education funding Council for England. This organisation is associated with the educational funding for the public of United Kingdom. This is part of the Department of Education of this country which is mainly developed for students funding for higher education. This organisation provides funding to many of the colleges and Universities of United Kingdom as well as they also contribute to researchers in those academic sectors. This organisation is a medium sized organisation who is only associated with providing funding for different researchers and students. However, the primary objective of this organisation is to the growth of the educational area of United Kingdom and helps this colleges and Universities to grow and innovate (Nuottila and Kujala, 2016). The organisational structure is a subdivision of the education department of England. The different stakeholders of this organisation are the students, college, university and the government. This organisation is highly related to Charity regulations because the government develops the entire structure and they have to report to the government directly or to the educational department of United Kingdom (Denhardt and Catlaw, 2014).

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Voluntary organization

One of the voluntary organisations in the United Kingdom is the Cancer Research UK. This organisation has developed in the year of 2002 for research on cancer and also providing awareness charity all around the United Kingdom. This organisation is associated with conducting studies on cancer and reducing the number of the cancer patient. In addition to that this is the world largest Cancer Research charity which is associated with prevention treatment and diagnosis of the disease. This organisation has around 40000 of volunteers. The mission, vision and objective of this organisation us to research on cancer for minimising the number of the cancer patient in the United Kingdom as well as other countries (Mohiuddin and Dulay, 2015). This organisation does not share any proper organisational illegal structure because the main structure of this organisation is dependent on laboratories and health centres. However, different doctors are part of this association from all over the world who are together working on achieving the vision of this organisation. The different stakeholders of this organisation at the public of United Kingdom, the doctors, the staff or employees working in this organisation, etc(Mohiuddin and Dulay, 2015).

LO2 Demonstrate the interrelationship of the various functions within an organisation and how they link to organisational structure

P3 Functions the chosen organisations, using an organisation chart to show how the functions interrelate

The Marks and Spencer is one of the biggest retail organisations in the United Kingdom. The organisation has credit all over the world with around 900 stores worldwide. The organisational structure of this organisation is large and associated with the functions or operations of the organisation. However, in the top of the organisation chart, the CEO of this organisation belongs. It has to understand that as this organisation is globally spread the structure follows for each of the areas of its expansion. However, under the CEO of the organisation, there are three major areas, which are essential. The first of them is a business analyst manager. Following that, the development manager and quality assurance manager works (Marksandspencer.com. 2018). There are different products which are selling by this organisation to the customers and therefore for every different product managers operate. Under the business analyst manager, there is a different business analyst who is associated with each of the product. Under the Development Manager, different developers work for each of the products sales by Marks and Spencer. Finally, the quality assurance manager has various employees who work as the tester of the products.

However, the organisation Marks and Spencer is mainly a shop oriented organisation; therefore, the role of the retail shop is essential. The organisation is working in different regional areas. Consequently, the staffs of the shop are mainly the local population of that area who can efficiently cooperate with the customers of the shop.

Organizational objectives- The main organisational objective of Marks and Spencer is to gain leadership in the clothing and food selling industry. However, they also targeted to provide their customers with the value and quality products. Superior quality is the main objective of this organisation. In addition to that, the organisation also shares objective which is associated with employee orientation (Zokaei et al. 2016). The organisation provides their employees best way to their career growth and also helps them to gain more achievement in their professional career. However, the organisation is associated with motivating attracting and providing the best care for their employees. In addition to that for improving the performance of the employees, they constantly provide training to their employees who are not only for organisational objectives but also for their career growth (Nuottila and Kujala, 2016. Finally the organisation has their sales objective which is to develop or improve their cells for gaining more profit from it.

Interrelationship between the organizational objectives and functions- The organisational leaders are developing the corporate objectives for focusing on a specific area of development. By developing aim for the organisation, the strategic planning for the organisational future become easy and focused. However, the business objectives of Marks and Spencer has broadly evaluated in the section. It can be said that for achieving the objective of the organisation the organisation has to function accordingly. The organisation Marks and Spencer is associated with different functions. For instance, the organisation has to collect the products from the suppliers and delivered the products to the retail shops of various locations. Collecting the products and delivering it to the shop is part of the different operations operated by Marks and Spencer (Nuottila and Kujala, 2016). However, the main objective of this function is to provide the customers with their best quality of products which is part of the main organisational objective of this organisation.

However, it can be said that this biggest retail organisation always check the quality of the food and clothing products they are selling to their customers. For that this organisation has a business analyst, developer and tester who has the main responsibility is to check the products fail by Marks and Spencer to their shops. However, these functions of these employees are also associated with the main objective of the organisation to provide the customers with the superior quality of products. With this superior quality of products the organisation wants to become the leader of the Retail Industry in the United Kingdom (Zokaei et al. 2016).

LO3 Using examples to demonstrate negative and positive influence over business operations

P4 PESTEL analysis of Marks & Spencer

The Marks and Spencer is a retail chain that provides essential services regarding the food market over the global sectors. The marketing and performances if the Marks and Spencer are mostly depended on their marketing strategies and identification of factors that influences their operations and marketing activities. The factors mostly the external factors that are mostly enhancing the company's marketing operations and revenue generations. Thus a PESTEL analysis is required for the developments of the company’s marketing operations and strategies for financial operations.

  • Political factors

The political factors of the UK includes several aspects that needs to be followed by the companies in order to maintain suitable marketing operations in the market. In this context it is to be added that the UK governments had provided several regulations regarding the Health and Safety British Standards (Thompson and McLarney, 2017). These standards includes identifications of sudden hazards, risk assessments and controls. This is to be followed by each of the companies that are operating in the British market or they will be fined and may face several charges by the governments.

This factors forces the company to maintain these standards and thus the organisational structures of the company needs to be modified and developed according to the needs of the standards and regulations of the government.

  • Economic factors

Currently the economic section of the UK market regarding the retail sales are downwards. As the customers do not have sufficient amount money to afford clothing’s and foods and thus the marketing operations of the company have been hit with certain loss during the year.

As a result of the economic fall down of the customers the company had to close several number of their stores across the UK market (Cipd.co.uk. 2018). The employees cut off were 2% on their total 70000 employees.

  • Social factors

Recently the social factors have changed for the company as the market trends and demands are quite different that they were used to be. The market trends and preferences mainly provides online shopping and introductions of fresh items regarding the clothing aspects. The social contributions are also required to be accomplished by the companies in order to gain the modern market preferences (Thompson and McLarney, 2017).

As a result the company developed several aspects and factors in their organisational structures in order to meet the marketing and social obligations of the market. They developed new services regarding online marketing and started competitions with ASDA.

  • Technological factors

The technological factors are the most important aspects of the retail marketing operations. The companies operating in the UK market must develop their brand image and customer selections with the appropriate usage of the technologies during the year. In this context it is to be added that the UK market requires advanced technological applications in order to ensure goods services quality and time managements.

As the applications are quit essential the company has also developed their marketing and organisational practices with the applications with the advanced technologies. Several brands and fashion item s are also provided by the M&S during the year.

  • Legal factors

The legal factors are includes the changed legislation of UK that has been evident after the Brexit. These included the changes in the exchange rates, in the policies and legislation regarding the export or import of products, human resource transfer and the like (Cipd.co.uk 2018). After Brexit, the organisation had to change its organisational policies in order to avoid the negative impact of Brexit. However, there are yet changes to come within the legislation and legal bodies of UK which is going to impact the organisational operations.

Hence the applications of the legal factors required several modifications and developments in the organisational structures in order to maintain the legal changes and factors if the UK market.

  • Environmental factors

The environmental aspects are considered as a big factor by the companies for suitable environmental management and product production procedures are to be adapt in order to protect the environmental assets and other aspects.

Thus the M&S has developed practices of managing waste management product quality, productions safeties in order to keep the environment clean and harmless.

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LO4 Determining internal weaknesses and strengths and explaining interrelationship with macro factors

P5 Internal and external analysis of the Mark and Spenser UK

In order to identify the strengths and weaknesses of Mark and Spenser, the internal and the external analysis of the organization is done through the employment of the analytical tool that is SWOT analysis which includes the following:

Internal analysis

Strengths

· High brand recognition in the retail industry of UK (Thompson and McLarney, 2017)

· High level of quality and wider range ranges of products that has created a perception of “value for money” among consumers

· Huge global presence with over 1000 outlets in 40 countries (Thompson and McLarney, 2017).

· Huge workforce over 80.0000 employees with that is multicultural as well

· 90 percent if the revenues are generated from the stores of UK.

Weaknesses

· Strong competition within the retail industry of UK

· The organization is highly reliable in the UK retail market that makes it vulnerable to risk like fluctuation of the domestic market

· Product recalls in the recent past is yet another weaknesses (Thompson and McLarney, 2017)

External Analysis

Opportunities

· New market segments can be invented by M&S for more profit.

· Market development is yet another opportunity in the developing yet populous country like China and India.

· More focus on the development of the food segment is required as 52 percent if the revenues are generated from there.

· Focus on the facility of improving online shopping is yet another opportunity

Threats

· New government policies and rate of rate of foreign exchange is alarming after Brexit.

· The bargaining power of the consumers is high owing to several other substitutes

· Increase in the scourge of shoplifting is an external threat

· Crime in the retail industry

· Rise in the labor cost is yet another threat to the growth and sustainability of the organization.

P6 Explaining the strength and weaknesses that interrelates with the external macro factors

The strengths of M & S that are identified above needs to be utilized in order to minimize the threats that is impacting and may further impact the growth and the organizational operations of the company. Product recall is the impact of the macro environmental factor that is economic environmental factor on the particular organization. The strengths of the organization includes the brand image that can be threatened by the macro business environmental factors that are identified above in relation to the UK retail industry for Mark and Spenser. The macro environmental cannot be controlled by the organization and thus the internal operations are determined by the external macro factors.

These macro environmental factors can impact the company in both positive and negative way (Grundy, 2017). However, this is dependent on the way the organization has been able to keep align with all the factors that are analysed above. For instance, the social factor should not be taken lightly as this is the factor that is influences the consumer behaviour in relation to the purchase intention which is going to determine the strength or the weakness of the organisation in terms of sales or revenue growth. This is the reason that the organization needs to go for the evaluation of the impact of the macro factors and then strategies the internal plans (Fernie et al. 2015).

This reveals that the macro environmental factors impacts the internal environment of the organization and determines the ability to become or possess weaknesses as well. Therefore, the weaknesses can be mitigated through the channelization of the impact of the impact of macro environmental factors. For instance the impact of the political factors that is macro environmental factor can be cannot be avoided or totally mitigated (Grundy, 2017). The organization can minimize the political impact after Brexit through competitive pricing strategy that is already a strength of the organization.

Conclusion

In light of the above study, it can be concluded that there are three different type of organisations who are successfully working in the United Kingdom. However, the private organisations are directly contributing to the country’s GDP. In addition to that the public and voluntary organisations are mainly showing their impact in the growth and development of the country. However, the mission of these organisations and their functions are being interrupted by the external business environment. But with time these organisations are developing their strategies to grow in this disruptive business environment.

References

  • Denhardt, R.B. and Catlaw, T.J., 2014. Theories of public organization. Cengage learning.
  • Fernie, J., Fernie, S. and Moore, C., 2015.Principles of retailing. Routledge.
  • Grundy, T.D., 2017.Dynamic Competitive Strategy: Turning Strategy Upside Down. Routledge.
  • Mohiuddin, M. and Dulay, M.G., 2015. Employee motivation in non-profit: Evidence from a community based voluntary organization. International Journal of Business and Management, 10(11), p.74.
  • Nuottila, J. and Kujala, J., 2016. Challenges of adopting agile methods in a public organization. International Journal of Information Systems and Project Management, 4(3), pp.65-85.
  • Ojha, A.K., 2014. Public private partnerships: analysing the network form of organization. Public–private partnerships. Routledge, New Delhi, pp.1-19.
  • Saleh, Z., 2015. The effects of staff training on the performance of private organization: a case of Umma university Kajiado campus.
  • Thompson, J. and McLarney, C., 2017. What effects will the strategy changes undertaken by next Plc have on themselves and their competition in the UK Clothing Retail Market?.Journal of Commerce and Management Thought,8(2), p.234.
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