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Contents
Introduction:..........................................................................................................................................3
P1 Explain different types and purposes of organisations; public, private and voluntary sectors and
legal structures:......................................................................................................................................3
P2 Explain the size and scope of a range of different types of organisations.........................................4
M1 Analyse how the structure, size and scope of different organisations link to the business objectives
and product and services offered by the organisation............................................................................5
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure..................................................................................................5
M2 Analyse the advantages and disadvantages of interrelationships between organisational functions
and the impact that can have upon organisational structure...................................................................6
P4 Identify the positive and negative impacts the macro environment has upon business operations,
supported by specific examples.............................................................................................................6
M3 Apply appropriately the PESTLE model to support a detailed analysis of the macro environment
within an organisation...........................................................................................................................7
P5 Conduct internal and external analysis of specific organisations in order to identify strengths and
weaknesses............................................................................................................................................8
P6 Explain how strengths and weaknesses interrelate with external macro factors. M4 Apply
appropriately SWOT/TOWS analysis and justify how they influence decision-making........................8
Conclusion:............................................................................................................................................9
References:..........................................................................................................................................10
Introduction:
This paper sets to define different knowledge and understanding over different issues of
business, function of the business and its wider environment. There is different size and scope
is having in different terms of organization. There are different analysis helps to define the
purposes of the organization. Also, this paper describes different nature of the business
environment and using different strategy to define the best way to analyse the business
environment and make further decision to reach potential growth of the business.

P1 Explain different types and purposes of organisations; public, private

and voluntary sectors and legal structures:
There are different business organization can be seen and these can be segmenting under the
sector, type, size and legal status. On the basis of sector, business organization can be
segmented into private sector, public sector, charitable and volunteer organization.
Private sector organization is the type of business organization that privately owned and
there is no part of the government. There are different type of private sector organization can
be formed as sole trader, partnership or limited business. So, these organizations are not
owned by govt. There are different private sector organization are available as retails stores,
local business even nelson college in London.
There are different stages can be segmented of private sector business as secondary, primary
and tertiary production. Primary production directly involves to the raw materials. For the
automotive business there is different raw materials need in the production process. Different
chemical, acid, mixture, pasting etc, Needs so these are the extractive production for these
business. After getting these primary production business need to process these raw materials
to the manufacturing and assembly process. There are different mechanism uses for these
production and manufacturing. After that, tertiary services comings these services shows the
commercial services that shows the production unit move to the distribution processed to
send the product to the end customers (BARON, 2012)
There are some private sector business that operating on the base of profit and non-profit
organization. Different private organization is giving more focus on the profit maximization.
There are different compensation plan, profit sharing terms for the employee that will give
more focus on the employee management and make them satisfaction to reach the higher
margin of production and productivity. It makes their customer satisfaction and reach profit
margin.
Public Sector:
Public sectors refer to the organization that helps to make strong the national economy and
these organizations are directly run under the govt. Control. There are different department of
govt. Make control over this organization. These organization are varies according to the
forms as central gout. Are having different departments like trade and industry (palmer and
Hartley, 2011). There are some local authorities also controlling some of this organization
like country council. There are different regional boards that also plays key role or control
these as regional development agencies. Different central trading organization is running as
stationery office that keeps control of these departments. Govt. Also runs different public
corporation and nationalised industry for example BBC.
Non govt. Organizations (NGO’s)
These are the organization that mostly running as non-profit and some of them are running as
volunteer citizens groups. They are running in local, national and international level. These
organizations are mostly runs with task-oriented features with concern the govt. About the
citizens of the country. There are different issues need to clear as NGO are performing
different services and monitoring their polices to make effective participation of citizens to
get their rights, environment and health safety.

P2 Explain the size and scope of a range of different types of organisations.

Business organization can be segmented into different size and scopes. Small, medium and
large can be segmented these business. Small business are mostly like the corner shops and
with the sole traders. Large business like Tesco that is having strong establishment with
several branches. There are different ways that business can segment under the size issues.
Turnover also makes segmentation of these business, output value, capital and some other
issue makes categories of this business ( weatherley and otter, 2014)
Micro business is having less than 10 employees. So, mostly corner shops are the example of
the micro business. They are having very less margin of turnover. Mostly these are running
with sole trader’s type of business. There is mostly couple of product can shown by these
business to generate minimum term of profit make their further progress.
Then comes to the small enterprise. These are also a type of private sector organization that is
running with more than 10 but less than 100 employees in their business. Mostly, these
business are running their operations to meet the demand of local customers. For example, in
the automotive market, there are many traders’ business that import or buying battery from
manufacturers under their own name and distribute with their own channel. So, they are
having potential customers under them but they are not real manufacturer.
Large business is mostly manufacturing companies and they are having large amount of
employees. So, they give more concern to the long-term goal by making effective
engagement with their target customers and making further run to reach goals and objectives
of the business.
There are different issues that make clear difference between small and large business.
Decision making speed to so fast in the small business because they are not having large
operation and large customer margin. Different external environment issues are having less
impact on these small business so they can set the quick decision to make further progress.
On the other hand, large business cannot make the decision quickly because there are
different internal and external issues need to consider on the processing of decision making
for these business (Lynch, 2006)
Risk analysis and risk margin also difference from small to large business. There are different
small business is having fast growing chance so t he risks factors need to define to make
decision. On the other hand, large business always try to do some innovation and different
things that contains large investment and risk margin. But, it is more necessary for them to
make them separate from other competitors.
Resource allocation is other major issues that need to consider as allocation of resource is not
so complex for small business. But, there are more issues to make the resource allocation to
the large business, because there is different bottom line focus need to play by the large
business. So, it is more important for the business to ensure their better resource allocation
but the process and strategy differs from small to large business.

M1 Analyse how the structure, size and scope of different organisations

link to the business objectives and product and services offered by the
organisation.
It is already describes different size and scopes of the business and all these are having direct
relation to the goals and objectives of the business. Different sizes business are having
different products and services and their distribution channel. So, the structure varies between
these businesses. There are different structure are available that business can choose
according to their best fit (Hatch, 1997).
For the large business like M&S they are having large distribution and manufacturing
channel; so, they need to attach all the lines and departments to make their decision and
analysing performance carefully to get the desire productivity with efficient run of the
business to reach goals of the business. They need to give focus on their large market demand
and also the demand varies to the different territories and demographic reason. So, these
issues need to get clear idea to set the production channel nod distribution unit for them. They
are having large competition as local and international both types of business are giving
competition to them. So, it is more important for them to set the effective pricing policy to
make further growth and beat their competitors. So, the structure, size and scopes are
different from the small business. They are having goals and objectives to reach the
sustainable business and market leader in the UK. So, it is the best idea for them to set the
structure and analysis to make further growth of the business.

P3 Explain the relationship between different organisational functions and

how they link to organisational objectives and structure.
Different functions of the business should have effective interrelation between each other.
Finance function is the heart of the business function. As, every function of the business need
to get the financial help. For example, for the marketing department if they want to set the
strategy of marketing they need to make contact with finance department because they need
to get certain amount of budget to implement their plan. Also, production unit need to get
confirmation from finance department to purchase raw materials and set the production
target. HRM also need to attach with the finance department because they need to get proper
allocation from finance department to set their strategy and plan to ensure sustainable
business strategy (Smith & Stewart, 2010)
Marketign function needs to attach with other functions. To set the marketing strategy they
need to ensure about the production capacity, pricing of their products and services to offer to
their target customer. Also, they need to get the support from finance department to execute
their plan. Also, they should get proper support from HR department to get the right skilled
people to the right place to make efficient run of their strategy and reach goals and objectives.
Production unit need to get proper support from HR department because it is more important
to get the right skilled employee to improvise productivity. Also, there are different issues
like performance management, reward policy, health and safety issues and some other
compliance issues need to define by the HR team and make further run of the production to
reach higher margin of productivity

M2 Analyse the advantages and disadvantages of interrelationships

between organisational functions and the impact that can have upon
organisational structure
There are different types of organizational structure are available and practices in the
different organization. Bureaucratic structure is the kind of structure that shows structure
where top management is having more control over the bottom line of it. Organizations are
having lack of standards are mostly used the pre0bureaucratic structures. On this structure
only one key decision maker play the role to centralize the structure. Business what having
the standardization with certain degree is the bureaucratic structure that helps to make
decision and it is mostly suitable to the tall organization.
Functional structure is the kind of structure that shows different function of the business
running individually as in the software industry; engineers are only staffs on the development
department of it. So, it is easier for them to manage communication and make decision
among them. It helps to produce high volume of production (Cherunilam, 2017).
Divisional structure is another structure in the business that shows the segmentation of the
functional areas of the business into different divisions. This division can be segmented
according to the geographic base, products or services. For example, automotive battery
business might have their lubricants and tire products. So, the entire department is having
different marketing and sales team. So, makes more efficiency to do marketing and make
control over these sister concern business for the business.

P4 Identify the positive and negative impacts the macro environment has
upon business operations, supported by specific examples.
Macro environment shows the external environment for the business. There are different
macro factors is almost uncontrollable but management need to be more concern about these
issues to make decision and pre-measures to make further run of the business. There are
different macro factors that are having impact to the business in both positive and negative
way. M&S is running their business globally so there are different macro factors that need to
consider before making any further decision for their business.
High inflation rate of different country is uncontrollable for this business. So, they need to set
the re-pricing and also they should take out mostly premium product and should launch more
generic product to meet the large customer demand. Also, they should offer in different terms
to keep satisfying their customers. Natural disaster can lead in any territory and it has direct
negative impact to the business. Business will not get enough customers for a certain period
time on this area and also the productivity and sales will hamper so business need to prepare
about these issues (CHRISTENSEN, 2018)
Govt. Change is the continuous process. With the change of govt. Different legal issues also
changes that make direct impact to the business because of the increasing amount of tax
issues makes impact to the business. These issues are having impact on the business in mostly
negative way. Also, there are different global issues like changes of transaction rate of
currency that also makes impact on pricing policy of this business.
There are different social issues also having impact on the business because changes of trends
make impact to the products and strategy of it. So, management need to prepare about these
issues and make solid plan to avoid these negative impact and make further progress of the
business

M3 Apply appropriately the PESTLE model to support a detailed analysis

of the macro environment within an organisation.
PESTLE Analysis
Political factors Changes of govt. Makes direct impact on different countries for this
business because changes of tax, import and export duty makes
impact for the global run of this business
Changes of labour law also having impact to the business as
increasing of living wages makes impact to M&S directly because the
overhead costs increases because of it (Daniels and Radebaugh, 2011)
Economic factors Changes of world economy as growing margin of inflation rates in
developed countries are making fear for M&S to make their effective
run.
Also, changing of exchange rate makes impact on their pricing policy
and prate turnover
Unemployment margin is increasing so it helps a bit for them to get
more skilled employees with beat cheap consumption of financial
term.
Interest rate is become high than past that also makes impact to the
final turnover for this business (M&S, 2018)
Social factors M&S is having plan and products for different age group people. But
the changes of lifestyle in regular basis makes impact to their
designers to give more challenge to update their product design
according to the growing trends
People also become more health conscious that is more effective for
this business because they are well-known for their fresh foods.
Technology factors Improvement of technology helps this business to make more control
over different department and sectors. Also, they are using different
technology to make effective engagement with their target customers.
It also generates more options for doing effective R&D and updates
their strategy to reach goals and objectives of the business.
Environmental Changes of climate makers more impact to the business. As, people
issues are become more environment concern so M&S is giving more
concern to their project A that is green project for them and making
effective run of the business by making strong customer engagement
Legal factors Changes of different law also need to consider making the further
decision as changes of consumer protection laws need to concern
more to set the platform for this business to reach potential growth.
P5 Conduct internal and external analysis of specific organisations in order
to identify strengths and weaknesses.

There are different internal and external analysis need to run for the M&S to identify the
strengths and weaknesses of this brand in the market. Internal analysis of the business helps
to define the positive and limitations of the business. For M&S there are different internal
sources can be sue as SWOT analysis is the effective one for approaching in this segment.
Strengths: Weaknesses:
They are having strong brand image They are running mostly ageing customer
They are having large number of outlets base
They are having high street presence Public is not quite well for this brand as
They are having effective recognition in the consider the old-fashion stores
niche market in food secretion
Wide range of products shows more variety
They are using EPOS.
They are having geographic base divisions
(M&S, 2018)
Opportunities: Threats:
Using effective brand image to make large Large competition
global presence Less ability to change their product and
Making more online presence services according to the need of their
Wide range of product from one sources customer
gives more option for them

P6 Explain how strengths and weaknesses interrelate with external macro

factors. M4 Apply appropriately SWOT/TOWS analysis and justify how
they influence decision-making.
TOWS analysis of M&S Strengths: Weaknesses:
M&S is having strong brand They are running mostly
image ageing customer base
M&S is having large number Public is not quite well for
of outlets this brand as consider the
They are having high street old-fashion stores
presence
They are having effective
recognition in the niche
market in food secretion
Wide range of products
shows more variety
They are using EPOS.
They are having geographic
base divisions
 Opportunities: SO WO
Using effective brand image They should increase They need to give more
to make large global specialist stores concern to the trend of young
presence Also, M&S should use their fashion.
Making more online presence popular brands and food Generate more younger
Wide range of product from section to highlight them fashion trend design
one sources gives more They should generate more They should work more in e-
option for them global presence commerce site to cut the cost
They can do more celebrity and increase their presence
endorsement on their
promotions
Threats: ST WT
Large competition They should generate more They can use diversity as can
Less ability to change their diversity with their products concern to the refurbish wear
product and services and services, of children that will help to
according to the need of their They should use more increase the competition and
customer proactive measures to define making long-term success for
customer need and make this business
decision

Conclusion:
There are different issues that define and describes by this paper with the use of different
theories and models. It shows the effective need of HRM to the business to make the solid
use of their productivity to reach the potential growth. HRM strategy needs to apply and
update in continuous way to identify the positive and limitation of the business to make
further efficient relation to reach long-term success.

References:
 BARON, P. (2012) Business and its Environment. 7th Ed. London: Prentice Hall.
 PALMER, A. and HARTLEY, B. (2011) The Business Environment. 7th Ed.
Maidenhead: McGraw-Hill.
 WEATHERLEY, P. (Editor) and OTTER, D. (Editor) (2014) The Business
Environment: Themes and Issues in a Globalised World. 3rd Ed. Oxford: Oxford
University Press.
 WORTHINGTON, I. and BRITTON. C. (2014) The Business Environment. 7th
Ed. Harlow Pearson.
 WORTHINGTON, I. and BRITTON. C. (2000) The Business Environment. 7th
Ed. Harlow Pearson.
 Lynch, R (2006). Corporate strategy. Pearson Education limited.
 Hatch, J (1997). Organizational social structures in organizational theory. Oxford.
 Smith, A And Stewart, B (2010). Organizational rituals. International journal of
management reviews.
 Cherunilam, F. (2017). Business environment. 1st ed. Mumbai [India]: Himalaya
Pub. House.
 Christensen, T. (2018). Organisation theory and the public sector. 10th ed.
London [u.a.]: Routledge.
 Daniels, J., Radebaugh, L. and Sullivan, D. (2011). International business. 15th
ed.
 M&S (2018). M&S [Online]. Available at: www.marksandspencer.com [accessed
at 26th November 2019]