Organizational Structures, Business Objectives, & Environmental Impacts on Operations Assignment Sample

Introduction of Unit 1 Business & The Business Environment Assignment

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Any organization performs its various activities in the market based on its structure and size. Different types of organizations have different structures, sizes, and objectives to execute the business and work systematically. The business is highly influenced by its functional performance within the organization which leads a company toward growth and success. Organizational success depends on its size, functional, and structural effective management. The reportdiscussed the Portfolio of Industry Analysis Factsheets. Different types of organizations are discussed according to their sizes, structure, and scope of business. The study also analyses the link between business objectives and the size, product and services, and structure of an organization. The complexities of an organization and structure are also considered in the report along with the range of different types of a business. The report includes an explanation of the interrelationships among various functions of an organization along with the link between organizational structure and objectives to the business functions. This study also considers the advantages and disadvantages of interrelationships between organizational functions along with theirimpact on the organizational structure. The report contains all those highlights that make an effective pathway for a business to survive in the market for the long term.

PART 1- PORTFOLIO OF INDUSTRY ANALYSIS FACTSHEETS

Types of organization

The company's structure and size are determined according to the activities or products and services provided by an organization to its customers. There are three types of organizations private, public and voluntary which are discussed below through a flowchart:

Analysis of the link between business objectives and the organization's structure, size, product, and services

First, the person decidesgoals by introducing a business and then according to the goals, an organization’s structure, size, and scope are implemented. After achieving the first goal of an organization, the next target is based on the size, scale, and structure of a business.

The relationship analysis of business goals and their structure, scope, and size indicate that the company's aims are directly influenced by these aspects that determine an objective formulation of a business.

If there are small numbers of employees and no one has their particular goals that create unclear roles and functions for an individual. The unclear functions lead to a wrong direction for a company from which an organization may suffer losses and never reach its goals.

Hence, the structure, size, or product and services have a direct relation with the goals and objectives of an organization. As the managers of a company determine the aims and goals strategies based on a company's growth perspective and its size.

Complexities of different organizations and structures

Organizational complexity contains the diversity of an entity inside an organization and the structureandsize of a company. The large size of an organizational system or structure that shows the organization is complex. Multiple bodies’ differentiation in an organization determines the organizational complexity based on their size and structure(Heide, et. al. 2018). The complexity of different organizations refers to the number of resources occupied by a different team, division, or project within an organization. Mostly, the structure of a company creates complexity for an organization, and sometimes complexity is good for a business but not all the time. Complexity generates in an organization due to some reasons such as multiple stakeholders, multiple business structures, multiple steps, and people to get work done. Multiple stakeholders of a company include investors, suppliers, media, competitors, regulators, and customers(LaCroix, 2022). Multiple business structures contain joint ventures, subsidiaries, and divisions of a company. And multiple people are engaged for the management and training of those who are intricate in the process of completing a specific job.

Interrelationship of different functions within an organization

Organizational functions contain all the distinct tasks and activities that require to continue for a company to operate in the market for survival. The company has different departments that make efforts at their level to achieve organizational objectives(Nizamidou, et. al. 2019). There are various departments of an organization such as HR, finance, production, sales, marketing, etc. All the departments are interlinked with each other for instance, the HR department hires workers and employees for a company that controls finances for a business from which the resources are purchased to implement production daily and those products are promoted and marketed then finally sold by the sales and marketing department which generate the profits for the company(Mallah, M.F. and Jaaron, A.A., 2021). Every company has its different structure and departments to easily achieve the determined goals of a business. An organization that has various departments with specific goals determined according to the overall organizational goal can reach growth and success very early with a clear and definite mission.

The link between organizational structure and objective to its various functions

There is a close relationship between organizational structure and its functions, as the structure determined the various types of functions accomplished in an organization. The structure of an organization and its objectives offer bodywork in which all functions of a company have to continue their operations. The work done by all the functional heads according to the strategy of achieving objectives and framework of an organization will lead to the long-term survival of a business(Tomaiuolo, et. al. 2019). All the functional department has various liability to accomplish the overall growth and success of a business, so the department makes their strategy to achieve the targets on time. Each department has its target also to bring out the main goal of a business and their target is designed by the functional head by bringing into mind the size and structure of the division(Rehman, et. al. 2019). The functions of a company are only done when the structure and objectives of an organization have a clear vision.

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Advantages and disadvantages of interrelationships between organizational functions

The effective interrelationships between different functions of an organization help the company to achieve its objective in a given timeframe(Mahdi, et. al. 2019). Links between distinct departments of a business will lead to the smooth functioning of a company and place an impressive position in the market. One more advantage of the good interrelation between organizational functions is the company gets long-term survival in the market(Ferreira, et. al. 2020). One of the disadvantages of interrelationships among organizational functions is the possibility of conflicts between departments of a company. Any miscommunication will create misunderstandings among the various division of a business which negatively affect the company’s image in the industry(Suárez, et. al. 2020). The functions of an organization ascertain how a chain of command is managed through different levels of a company. Different functions performed by the different divisions to the systematic flow chart of a business that shows a clear vision to every employee in an organization.

Functions perform by different departments has both positive as well as negative impact on the business.But the positive impact is wider than the negative impact on a company. Distinct organizational structure is influenced by the different business functions that govern the productivity and efficiencies of a company(Peng, et. al. 2019). All department of an organizational structure has their target for which they perform functions in the company and has to coordinate with the other department also. To achieve the specific goals or organizational goals each department has to make good coordinationbetween the departments that positively influences an organization.

CONCLUSION

It is concluded from the report that each type of organization has a different structure, size, and scope in the market and industry. The three types of organization are explained in the report which shows their distinct way of functions and working areas. Objectives of a company are determined on basis of the product or services, structure, and size of an organization which creates a link between all functions performed by a business. It is also concluded that a big firm has a complex organizational structure as it contains a lot of employees and divisions, whereas a small firm has a clear and easy understanding of organizational structure. It is recommended that every company should have a friendly environment to perform better in the market along with the coordination between various departments of a company. It is clear from the above report that organizational functions have both merits and demerits of the interrelation between different functional departments of an organization. At last, it is concluded that the company has to maintain its functions as well as make huge efforts to achieve its targets with good coordination among employees of the company.

REFERENCES

Ferreira, J., Coelho, A. and Moutinho, L., 2020. Dynamic capabilities, creativity and innovation capability and their impact on competitive advantage and firm performance: The moderating role of entrepreneurial orientation. Technovation , 92 , p.102061.

Heide, M., von Platen, S., Simonsson, C. and Falkheimer, J., 2018. Expanding the scope of strategic communication: Towards a holistic understanding of organizational complexity. International Journal of Strategic Communication , 12 (4), pp.452-468.

LaCroix, E., 2022. Organizational Complexities of Experiential Education: Institutionalization and Logic Work in Higher Education. Journal of Experiential Education , 45 (2), pp.157-171.

Mahdi, O.R., Nassar, I.A. and Almsafir, M.K., 2019. Knowledge management processes and sustainable competitive advantage: An empirical examination in private universities. Journal of Business Research , 94 , pp.320-334.

Mallah, M.F. and Jaaron, A.A., 2021. An investigation of the interrelationship between corporate social responsibility and sustainability in manufacturing organisations: an empirical study. International Journal of Business Performance Management , 22 (1), pp.15-43.

Nizamidou, C., Vouzas, F. and Gotzamani, K., 2019. Exploring the interrelationship between quality, safety and HR within crisis management framework. The TQM Journal .

Peng, P., Wang, T., Wang, C. and Lin, X., 2019. A meta-analysis on the relation between fluid intelligence and reading/mathematics: Effects of tasks, age, and social economics status. Psychological Bulletin , 145 (2), p.189.

Rehman, S.U., Mohamed, R. and Ayoup, H., 2019. The mediating role of organizational capabilities between organizational performance and its determinants. Journal of Global Entrepreneurship Research , 9 (1), pp.1-23.

Suárez, L.E., Markello, R.D., Betzel, R.F. and Misic, B., 2020. Linking structure and function in macroscale brain networks. Trends in Cognitive Sciences , 24 (4), pp.302-315.

Tomaiuolo, M., Matzko, C.N., Poventud-Fuentes, I., Weisel, J.W., Brass, L.F. and Stalker, T.J., 2019. Interrelationships between structure and function during the hemostatic response to injury. Proceedings of the National Academy of Sciences , 116 (6), pp.2243-2252.

PART 2- ENVIRONMENTAL BUSINESS AUDIT PRESENTATION

Overview

• The presentation is made to develop an understanding about macro environment on the business operation.
• Pestle analysis is the highlighting point to determine positive and negative macro environment effect on business.
• This presentation also consider links between external factors and organization’s strengths and weaknesses.
• SWOT analysis is discussed in the presentation to open up more opportunities for an organization.
• The influence of macro and micro environment on company’s objectives and decision making.

Note: The presentation is made to demonstrate the positive and negative impact of macro environment with the internal strength and weaknesses of the businesses.

Impact of macro environment on the business operations with an example

• The influence of the macro or external environment on a company has huge positive as well as negative results on a business(King, and Vaiman, 2019).
• External factors shape a company's limited area, rules, and regulations of the market in which the company wants to continue its business.
• The business operations related to government policies, industry rules, legal formalities, etc. affect the image and loyalty of a company towards its work and consumers.
• For instance, changes occur in competition within many industries due to artificial intelligence, extracting a change implemented in the working activities of a business(Shtal, al. 2018)..
• Artificial intelligence (AI) refers to that computers and machines which act like a human with the capabilities of decision-making and problem-solving same as the human mind(Zhang, and Lu, 2021).
• AI comes under technological changes which is an external factor for a company. By adopting AI in the company's working style every company gets long-term survival and a large consumer base for their products and services.

Note: By following the rules of the macro environment the company will enhance its sales and gain a competitive advantage over its competitors (Shtal, et. al. 2018). Those company that not changed according to the external environment like the acceptance of AI was beaten by their competitors and extinct from the market with the result of huge losses.

Pestle analysis to determine the effect of macro environment on an organization

• Political factor: this factor includes tax policy, government policy, political stability, trade restriction, etc. The company is affected by different political parties within a country that changes their ruling policy from time to time. Political factors also affect the economic development of a country such as subsidies and funding.
• Economic factor: the factor contains interest rates, economic growth, inflation and exchange rates, unemployment rates, etc. The economic factor directly influences the profitability and growth of an organization. Effective analysis of economic factors will cover up an economic risk that negatively affects the company.
• Social factor: this factor includes safety emphasis, cultural barriers, health consciousness, etc. The social factor of the macro environment needs extra care which allows companies to outline the values and structures of society. This factor shows a demographic change in the country's general public with their attitudes, values, and standards.
• Technological factor: the factor contains automation, R&D activity, technology incentives, etc. This factor influences the strategic decisions of a company which leads to technological infrastructure and progress in a business. Technological factor analysis comes up with various opportunities in the market for a company.
• Legal factor: this factor includes employment laws, discrimination laws, copyright and patent laws, etc. This is the most important factor of a macro environment which every company has to follow for making a successful business. The legal factor analysis helps a company to understand the legal system of a country, and make it aware of legal activities to operate in the market.
• Environmental factor: the factor contains climate change, weather, environmental policies, etc. The company's operations are executed only when the resources are available, so this factor helps the company to determine the availability of resources within the environment in which the company lies. Environmental factors show the changing position of geographical and physical features of a country.

Notes: Pestle is an acronym for six different factors that are political, economic, social, technological, legal, and environmental (Alanzi, 2018). Pestle analysis is a popular method for macro-environment research. Pestle's full form provides the overall exploration of the macro environment of a country. Every factor of pestle analysis includes both opportunities and risks at their level(Simões, 2020). This analysis helps the company to explore its external environment for a risk-reward return to make effective strategic management(Simões, 2020). This analysis is considered by the company to examine the macro or external environment which affects the operations of a business.

Interrelation between strengths and weaknesses of an organization to external macro factors

• There is a close relationship between the strengths and weaknesses of the external macro factors.
• The company’s strengths lead to an effective position in the market that places a unique identification of an organization in the consumer's mind(Egbunike, and Okerekeoti, 2018).
• Strengths boost the effective operations of a company in the market, this will lead a company to gain a competitive advantage which lies in a macro environment.
• Weaknesses may bring losses to the company, as the external environment will not tolerate any weakness of a company and quickly kick out an organization from the market.
• According to the external forces, an enterprise has to prepare its strategies for its internal environment such as the development of strengths and reducing weaknesses which help the company to compete with its competitors(Zinecker, al. 2022).

Note: An external environment of a company directs the development of strong and unique strengths for a business and tries to remove the weaknesses of a company that restricts an organization to perform well in the market (Zinecker, et. al. 2022).

SWOT analysis of an organization

• SWOT is an acronym for four types of factors such as strengths, weaknesses, opportunities, and threats.
• The strengths and weaknesses are internal factors such as software, geographic location, and teamwork(Teoli, al. 2019).
• The external environment of SWOT analysis includes two factors which are threats and opportunities like regulations, economic trends, and competitors.
• All four factors of SWOT analysis are affected by the main four elements of a company that is financial, customer, internal, and learning and growth.
• This analysis helps a company to grow by identifying both external and internal elements that make a pathway for the company's operations toward success.
• Strength factor: this factor shows the uniqueness of a company to differentiate itself in the market. The strength helps a company to gain a competitive advantage over its competitors. This is a positive internal factor for a company.
• Weakness factor: the factor includes those characteristics which pull back a company in the race of competition in the industry. For example high employee turnover, low management strategies, low margins, etc. This is a negative internal factor for a company.
• Opportunity factor: this factor reflects that section for a company in which an organization can expand and grow its business and gain more profits. Opportunity factor helps a company to improve its business areas with efficient growth opportunities. This is a positive external factor of an organization.
• Threat factor: this factor shows businessexternal forces that represent risksto a business and its ability to operate in the market. This is a negative external factor of an organization. Threat factor saves a company from different possibilities of dangerous uncertainty to break down continued losses of a business. This factor prepares a company to bear and cover up unpredictability by forecasting activity. Threat factor includes tax hikes, negative reviews on social platforms, etc.

Notes: The SWOT analysis provides a proper micro and macro environment study of a company. Both environmental analyses lie in this one analysis model which has two-two elements an internal as well as an external factor. Each element contains different specialties which lead a company to develop better strategies for the growth and success of an organization(Teoli, et. al. 2019).

Impacts of both micro and macro on business decision-making and objectives

• Micro or internal environment analysis helps a company to bring good teamwork and coordination between employees that uplift the market position of a company.
• The analysis of the internal factors of a company will lead to effective strategic management and timely achievement of the company's goal with the combined efforts of employees(Karimi, al. 2018).
• The major impact of internal factors on business decision-making and objectives is a friendly environment in a company to smoothly accomplish operations.
• The decisions within a company are taken by the top and middle-level managers in which the managers have to balance the company's customers, employees, suppliers, shareholders, investors, and media.
• According to the internal environment, the company has to develop its strategies and objectives that direct a company to make decisions based on the objectives of a business.
• As the macro environment has various factors to study but each factor directly impacts the company's operations of achieving goals and objectives(Stremousova, and Buchinskaia, 2019).
• The company has to develop its strategic decisions by paying attention to external forces.
• If a business makes decisions without considering external factors then it may suffer a huge loss in the market because the formation of rules and regulations to operate in the market is prepared by external bodies.

Notes: The micro and macro factor influence an organization's decision-making power and objectives. The working environment has a great impact on the daily operations of a company. External forces like competitors, political parties, industry rules, etc. affect the work of a company in the market (Karimi, et. al. 2018).

Conclusion

• It is concluded that company has to effectively analysis the macro environment for smooth functioning of a business operations in the market.
• The pestle analysis is a successful study of external forces that can both positively and negatively impact business.
• It is concluded that company has to pay attention on continue making strengths and decrease the influence of weaknesses on the business.
• SWOT analysis contains both internal and external study of a company through which business get various growth opportunities and expansion strategies.

Note: It is also concluded that both micro and macro environment has equal impact on an organization’s decision making activity as well as on the objective of a business.

References

Alanzi, S., 2018. PESTLE Analysis. Project Management .

Egbunike, C.F. and Okerekeoti, C.U., 2018. Macroeconomic factors, firm characteristics and financial performance: A study of selected quoted manufacturing firms in Nigeria. Asian Journal of Accounting Research .

Karimi, S., Holland, C.P. and Papamichail, K.N., 2018. The impact of consumer archetypes on online purchase decision-making processes and outcomes: A behavioural process perspective. Journal of Business Research , 91 , pp.71-82.

King, K.A. and Vaiman, V., 2019. Enabling effective talent management through a macro-contingent approach: A framework for research and practice. BRQ Business Research Quarterly , 22 (3), pp.194-206.

Shtal, T.V., BURIAK, M.M., AMIRBEKULY, Y., UKUBASSOVA, G.S., KASKIN, T.T. and TOIBOLDINOVA, Z.G., 2018. Methods of analysis of the external environment of business activities. Revistaespacios , 39 (12).

Simões, E.N., 2020. A decision support system application module-for PESTLE analysis-competitive intelligence algorithm (Doctoral dissertation).

Stremousova, E. and Buchinskaia, O., 2019. Some approaches to evaluation macroeconomic efficiency of digitalisation. Business, Management and Economics Engineering , 17 (2), pp.232-247.

Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.

Zhang, C. and Lu, Y., 2021. Study on artificial intelligence: The state of the art and future prospects. Journal of Industrial Information Integration , 23 , p.100224.

Zinecker, M., Skalicka, M., Balcerzak, A.P. and Pietrzak, M.B., 2022. Identifying the impact of external environment on business angel activity. Economic Research-EkonomskaIstraživanja , 35 (1), pp.83-105.