This unit develops information about different kinds of business that exist in the market along with their operations
- Explain different types, size and scope of organizations.
- Develop interrelationship between various functions and their link to organizational structure.
- Demonstrate positive and negative impact/influence of external environment is to be demonstrated.
- Internal strength and weakness of a business are identified along with explaining their relationship with external micro factors.
Business environment is identified as the mixture of external as well as internal forces which affects functioning and operations of business concern. It is a sum total of macro & micro components that may impact positively or negatively on profitability and performance of company (Asif, Garvare and Ahmad, 2011). Various forces that exists in business environment involves customers, competitors, suppliers, technological changes, political, social, legal, environment factors etc. Managers are required to consider all these factors as it assists them in designing appropriate policies and plans which provides them direction for their future course of actions. The present assignment is based on Halifax bank which is operating as trading division of Scotland bank that itself a fully owned subsidiary of Lloyds banking group. The report includes purposes and types of various organisations as well as their size and scope with their legal structure. It also discusses about various organisational functions and their interlink with its objectives. Apart from this, negative and positive impact of external factors along with analysis of strengths and weaknesses of firm is defined. At last, interrelationship of weaknesses & strengths with external macro factors are defined in this project.
P1 Different type of organisation and its purpose
An organization can be define as an entity made up of multiple people that has a common goal and also linked with external environment. In simple words, it a social unit of individuals that is managed and structured to fulfil a collective need. The main purpose of each business association is to accomplish higher profitability ratio and competitive edge by providing innovate goods and services to target group of customer. So as to maintain long term existence and sustainability in market, it is crucial to fulfil needs and needs of clients. There are three common type of industry in which an organization operates namely primary, secondary and tertiary. Primary sector deals with acquisition of raw material like oil drilled from ground, rubber trapped from trees. Secondary deals with assembly and production process. It encompasses converting raw material into finished goods and services. For example: Making plastics from oil. Lastly, Tertiary sector refers to commercial services that support distribution and production process like advertising, warehousing etc.
Legal Structure of private organization:
Sole proprietorship: When a business is operate and manage by single individual it is known as sole-proprietorship. They appreciate all benefits however in the meantime, they need to hold up under all misfortunes of organization exclusively. As the firm is solely controlled by owner, its decision making is very effective and quick as compared to others which also aid in its smooth functioning.
Example: Gary J Harding is a sole trader firm that gives professional and payroll advice to its customers. It deals in Secondary Sector.
Partnership: When any business is begun by at least two people then it alluded as organization firms (Cavusgil and et. al., 2014). For beginning such sorts of firm, an authoritative report or an agreement is marked by every one of its partner which considers as a lawful evidence of business proprietorship. Benefits and misfortunes are partitioned equally among all partners on the ground of their respective share in the company.
For Example: Clark's International Ltd deals in secondary sector
Limited Company: It is a private company whose founders are legally responsible for its debt and also the amount of debt is extent up-to the capital invested by them. It can be classified as limited by shares and limited by guarantee.
For Example: Burberry Plc and it deals in tertiary sector
Public Sector Organization: These are the associations that are completely overseen and controlled by lawful specialist of particular country. They underscore more on improvement and welfare of society rather then procuring benefits. It normally include electricity board, health care institutions etc.
The example of public sector firm is TESCO which deals in tertiary sector.
Voluntary Organization: It is a voluntary based firm which works and perform capacities to decline neediness from society. Volunteers exceedingly contributes in smooth running of tasks of firm. They satisfy fundamental needs of penniless populace of society by giving them sustenance office.
For Example: Oxfam and it also deals in tertiary sector
P2 Size and Scope of different organization
Mark and Spencer
Size: It is a British multinational retailer that is situated in Westminster, London. It bargains in offering garments, family unit items and luxury food product. It was established in the year 1884. It is operating in more than 10 countries worldwide covering Austria, Dutch, Germany etc. It has solid market and customer base in UK including in excess of 615 stores that exclusive offers only food items (Gharajedaghi, 2011). Number of workers work in M&S is close around 84,939 and its yearly income starting at 2017 was figured as £10.622 billion.
Scope: It spend significant time in conveying family unit items, apparel, nourishment items to immense number of clients. It's fabric run regularly arrange into lady, youngsters and men and in addition food and household items. Aside from these, M&S likewise offers items that is made under its home image including Indigo Collection, Collection Junior. It had 6 sub-mark inside its men wear range and 10 sub-marks inside its ladies wear run.
Vision: "Serving great quality items to target client that qualities their every single penny".
Mission: "To make items that are made of optimistic quality and receptive to all".
Size: Presently, the firm is operating in overseas market with near around 4,400 offices. It has positioned themselves in the list of leading and most respected bank in UK.
Scope: It deals in providing services related with investment banking, commercial banking, market personal financial services and other financial product or services.
Vision: “To render financial services that are of high quality and fulfils customer needs and requirement”.
Mission: “To make strong customer and market base”
Size: It is an autonomous charitable trust that is comprised of 20 individuals or volunteers who give administrations to people of the nation. It have practical experience in furnishing administrations that is mainly related with decreasing the level of poverty from all across the world.
Scope: It also render services related with policy research, removing poverty, advocacy, pro-migration etc. All work is finished with the best possible help and commitment of its volunteers.
Vision: "To minimise the level of poverty worldwide”
Mission: "Giving administrations that expansion the expectation for everyday comforts of household person of the nation"
P3 Interrelationship of different organisational functions & their link with objectives
Halifax is a British bank which is a subsidiary of Lloyds Banking group. It is one of the leading and well renowned bank that offers financial services to its potential customers. Main objective of company is to deliver high quality services to their customers and maintains large consumer base (Gilboy , 2016). Various departments are there working in the firm such as marketing, human resource, finance, operations etc. All these are working collectively with common purpose to attain objectives & goals of company in an effective and better manner. For preforming activities and operations of firm smoothly and in structured manner, it is essential for manager of Halifax bank to ensure that all departments are working coordinate towards accomplishment of objectives of company. Different functional departments that are working in Halifax bank are defined below:
Human Resource Management Department: Vital role is played by manager of this department in recruiting and selecting skilled and knowledgable candidates. Human resource are the main asset of every business enterprise that highly contributes in its growth and success. So, it is very necessary for administrator of Halifax bank to hire knowledgable and qualified candidates so that high quality services can be offered to customers. For this, manager invite applications as per the required vacancies of bank and select those candidates who meets set criteria for that job position. They also render training to their staff members so that employees are enable to offer best services to their customers and can have the ability to resolve all their issues and answering all their queries (Kian Chong, Shafaghi and Leing Tan, 2011). Training and development programme also increase their motivation level and promotes healthy work environment. All this helps in maximizing performance of workforce and increasing profitability of company which in turn assists in attainment of objectives of bank.
Finance department: For running activities smoothly and performing day to day operations in proper way, funds are required. It is very necessary for managers to maintain adequate amount of money within firm so that it becomes easy to do daily transactions effectively and in systematic manner (Li, and et. al., 2011). So, financial manager of Halifax bank is require to ensure that appropriate amount of funds are available within firm. They also needs to allocate budget for each department so that activities can be run smoothly. They assign proper funds for each activity so that its timely completion should be ensured. All this helps in attainment of targets and objectives of firm and leads it towards high growth and success.