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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........................9
Conclusion:..........................................................................................................................................10
References:..........................................................................................................................................11
Introduction:
This paper will describe different organizations activity, structure and difference between
their function. Organization is the term defines as the structured social system along with
group or individuals that running under the same objectives. There are different issues need
to define to make comparison between these organization to determine their process, goals
and objectives. Several theories and models will use to define the internal and external
environment of this business and make further strategy to reach potential growth.

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

and voluntary sectors and legal structures:
Types of organization Description
Private sector This sector defines the organization that running with their
owner’s goal and decision not from the govt. Undertaken.
There are different type of private busienss are available as
sole traders, partnership and limited business.
Some traders are the busienss that owned by individual
person. So, all the top decision coming from their own.
There are very less restriction but higher risk. If the
decision is favourable then all credits goes to the owners
but mistake or misjudgement of decision can make big
impact for this busienss.
Partnership business is the term of busienss that shows
busienss owned by more than one owner. All the liabilities
and profit margin sharing between these partners and make
effective run of the business. Decision making approach
need to come from the mutual understanding from these
owner 9Schiffer & Weder, 2010)
Limited busienss are the type of busienss where busienss is
privately owned and having more than one shareholder but
they cannot trade their stocks in public.
Cooperative sector There is some cooperative business running in the market
as it generates from the consumer wish. In the UK, there is
Co-op organization covering a vital range with their food
on different events. For these busienss, shares are not going
to be count in the share market.
Public sector Public sector organization are running under the legislation
and decision making process of the govt. Changes of govt.
Makes impact on these organization because changes of
legal issues and structure can be happen by the new govt. In
recent time, public sector busienss reduced a lot as govt.
Want to give more chances to the private sector
organization in the UK. Local authorities like council is
operating the council sector, public corporation busienss
also running as BBC is running under the public
corporation theme. Central govt. Also chagrin different
organization like trade industry and different industry.
Public corporation are giving proper services to the general
people with the concern of the govt. Govt. Body is

Voluntary organization
choosing the decision for the further progress of these
organization.
This is the kind of organization that shows the meaningful
activity as voluntary process. They are counting as non-
profitable organization that providing their services without
for profit margin just taking out their costs. They are
providing benefits to the wider community with their
products and services

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

The size of the organization that varies from organization to organization. Different size
organization is having different size with their different goals and objectives. Risk margin,
decision making process, products and services range are not same for the small to large
busienss. For the small busienss, mostly it takes decision from the sole ownership and
management process. They are giving more concern to the owner and manager of the
busienss. So, there are less chance of evaluation of the employee’s interpersonal skills and
ability. There are rapid growth of small market also makes the higher competition between
them. Small busienss mostly contains less than 100 employees which start counting from 10
employees. So, the product range and service range and covering area are smaller too. Mostly
these are running in the local based. So, the scope is narrow to make further develop. Capital
margin also not need a huge for these busienss on the starting time. So, it makes more issuer
for the business because there are more competition can find in this type of business. So, it
needs to focus by the busienss to make them separate form others to make further progress.
But, these busienss are always searching the option to make merging with big brand to make
their large participation in the market to reach further goal of it (Fogel, 2011)
For the large business, there is more flexibility for them to manage the market while the risk
factor is also higher. Different internal and external risks factors need to measure by these
busienss on the decision making portion. They need to use their strong brand image to make
market and product development. Many of the large busienss are operating their busienss in
globally it helps them to generate new ideas while large amount of actual they need to invest.
So, the risk margin is high but with using the efficient brand value they can make sustainable
growth of their busienss (palmer & Hartley, 2011)

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

link to the business objectives and product and services offered by the
organisation.
Different size of business is having different scopes and they are having different objectives,
products and services. Primark is one of the large fashion retail in Europe market. They are
having different fashion and home appliance. So, the structure, size and scopes are different
for this busienss than the smaller one. Primark is running the functional structure because
they are having different function as fashion product for male, female and children, different
home appliances. They are covering the global market. So, they are giving more focus not he
functional structure that helps them to match with their goals and objectives. Major objectives
of this busienss to offer the cheap pricing to grabbing more customer and making further
progress of the business. They are getting success with their cheap prices as they are
manufacturing their products form mostly south Asian countries were cheap labour are
availed that helps them to get cheap manufacturing costs to offer the cheap price to their
customers (Campbell, 2012)
On the other hand, Colour- one of the local fashion busienss in the UK they are heaving large
production costs and also small coverage of market. They are having high overhead costs
because of the wages policy in the UK. So, they cannot offer cheap pricing as Primark is
offering. They are running under huge competition from other local and international brand
as they are having less margin of product variety. So, it clears that size and structure makes
impact and that is having direct linkage with goals and objectives of the business.

P3 Explain the relationship between different organisational functions and

how they link to organisational objectives and structure.
Business is looking for to get the best output from their policy and process. All the functions
are having close relation to others because of the need of all the function to make decision not
he further progress of the business. For Primark, they are having different functions as
marketing, production, HR, finance, operations etc. (Worthington and Britton, 2000)
Marketign function so this brand is operating to define the need of their customer and make
the customer happy with the limited production and design margin. They should use
marketing mix to set the marketing strategy and to meet all the demand of the strategy they
need to get help from the finance department to get the support to run their strategy. There
should be certain marketing budget that needs to show to the financial department and the
way of outcome that can be generate by this business need to count to make further progress
of the business (Montazemi, 2010).
Production department is providing the best help to ensure the production margin according
to the market demand. They need to engage with the marketing team that need to know about
the trends and design to update the fashion product design in Primark. Also, they need to get
clearance about the exact market demand of different product. So, they can ensure the timely
delivery from he production house to meet the large demand of the customer. Also, they need
to engage with the finance department to get allocation of the right amount of money to get
further progress of the production
HR department is not only responsible for the recruitment and selection process but also they
need to effective performance management to judge the performance of the employees. They
need to set effective workforce planning in the organization that will give more effectiveness
and increases of productivity of the business to reach potential growth of the business. They
should provide different training and run effective reward policy to keep motivating their
target employees to ensure better productivity for the business,
M2 Analyse the advantages and disadvantages of interrelationships
between organisational functions and the impact that can have upon
organisational structure
Interrelation between all the functions is most important and that is having impact on the
structure of the organization. Direction organization structure like-
Functional structure is having more advantages from it because it reduces the delicacy of the
source of resources. Also it helps to generate effective communication between all the
departments. All the department need to attach and this structure help to make effective
relation between each otherwise the entire department is having different chain of command
but they are joining on the top of the department only. It is mostly used to reach the short-
term routine focus work while it reduces the chance of strong communication internally from
the entire department (Lisa, 2018)
Divisional structure is the structure where all the division are responsible for their own work.
There are different division’s sets according to meet the demand of different geographic
areas. These are having their own function like finance, marketing, operations to meet the
demand of this different division. But, there is more chance of delicacy of reprocess. Large
busienss that operating in global market can choose this type of structure
Matrix structure shows the focus on the functional department with the special resources as
they are focusing on the output. There is more chance of skills diversion within the functions
in easiest way. But it is not easy to manage and coordination that makes the limitation of this
type of structure. Business that is having major goal to run product innovation can use this
structure for their further run

P4 Identify the positive and negative impacts the macro environment has
upon business operations, supported by specific examples.
Business environment is changing as continuous process there are different external issues
that is having impact on the decision making and further progress of the busienss. So, these
issues need to examine before making decision and set goals and objectives of the business.
Macro and micro environment are the two type of environment that the business is having. To
analyse the external environment fro the busienss it is always good to use PESTEL analysis.
It helps to define different outer factor that may impact to the business on their future
progress and decision making issues. PESTEL analysis helps to generate more information
about the surrounding issues about external environment in the business. It stands for the
Political, economic, social, technological, environmental and legal factors of the business. It
is more difficult for the business to do external environment analysis because there are more
uncertainty issues are includes on these strategy. New strategies also need to develop by the
busienss before reaching this new strategy they need to generate external environment
analysis (Baron, 2012)
For Primark, there are lots of uncertainty issues are having on their launching new products
or making any decision of marketing development. To do the market development they need
to define the political stability of these market, legal issues, vat and taxation issues,
environment issues, social trends. Also, they need to give more focus on the economic factors
of the country or market they try to reach. Customer buying power ran behaviour need to
analyse. Also, there are different technology issues need to define to make solid use of these
to improve their productive, operations and control to reach goals and objectives of the
business.

M3 Apply appropriately the PESTLE model to support a detailed analysis

of the macro environment within an organisation.
PESTEL analysis Primark
Political factors and legal factors Brexit is the biggest issue for this busienss at
present. Because if the Brexit forms then this
busienss cannot get easy and free trade to the
Europe and also the tax policy should be
changed in UK too. So, it will make direct
impact to the business like Primark. They
might lose large market and customers.
There are different political instability is
running in worldwide so it makes complex
situation for the further market development
for this busienss. Also, changes of govt. And
changes o tax policy in existing market
makes impact for this business too.
Changes of import and export rate and rules
also making big issue for this busienss.
Different changes of consumer law and
employee law also need to consider to the
strategy of employee engagement and
management for this business
Economic factors. Changes of currency rate make big impact.
Fallen of the pound Sterling makes impact to
this business on their profit margin. So, they
need to focus on pricing again to get the
sustainable run of them. Also, rises of
inflation margin makes tough task to get
more customers because it reduces the
buying power of customer that makes impact
on the sales and profit margin for this
business.
Social factors Changes of culture and trends that makes
impact in both positive and negative way to
this brand. Changes of culture and turn the
culture into the western mode in mostly
Asian countries that helps this business to get
new market and more customers for them.
Also, changes of fashion and demography
makes impact to the business on their design,
production and operation process
Technological factors Updated technology is giving more help to
this busienss to increase productivity and
sales margin. Online sales boost them to get
 more customers and new market to reach
further goal. They are also getting touch with
different technology to improve their
production lien and distribution channel;
Online payment, customize option of
products for customers boost up the relation
between this busienss with their target
customer (Butler, 2014)
Environmental factors There are different environmental issues like
packaging issue is highly concern issue at
present. Primark is use recyclable packaging
policy that helps to show their sustainability
to their target customers

P5 Conduct internal and external analysis of specific organisations in order

to identify strengths and weaknesses.

There are different tools that already use to define the external environment analysis of the
chosen business. To define the internal environment, also there re some tools are available.
SWOT analysis is one of them. It should be use to define the strengths and weaknesses along
with opportunities and threats of this business in current market.
Strengths: Weaknesses:
Primark is having strong brand image EU economy is having slow growth that
Lower pricing strategy grip more customers makes also impact to this business.
They are having extensive range of fashion They are getting outsourcing of their
products manufacturing apparels
Sales margin is increasing in every year Bad reputation on their manufacturing as it
Market development approaches reveals that they are getting their product
Core market is in the UK from cheap labour in South Asian countries
Skilled employees and global presence mostly
Opportunity: Threats:
Market expansion globally Brexit is the biggest threat at the moment for
Product development to give more options to this busienss
their target customer Lots of competition does they are having
They can add sportswear in their product line
Cheap pricing strategy will help them to
launch new product and market overseas

P6 Explain how strengths and weaknesses interrelate with external macro

factors. M4 Apply appropriately SWOT/TOWS analysis and justify how
they influence decision-making.
PRIMARK TOWS analysis Strengths: Weaknesses:
Primark is having strong EU economy is having slow

Opportunity:
Market expansion globally
Product development to give
more options to their target
customer
They can add sportswear in
their product line
Cheap pricing strategy will
help them to launch new
product and market overseas
Threats:
Brexit is the biggest threat at
the moment for this busienss
Lots of competition does
they are having
Conclusion:
There are different environment that need to define and it already defines by this paper to get
clear idea about different business environment. Proper monitoring needs to apply and also
different internal and external tools need to analyse to make the further decision for the
busienss and match with the goals and objectives to reach it with effective way
brand image
Lower pricing strategy grip
more customers
They are having extensive
range of fashion products
Sales margin is increasing
in every year
Market development
approaches
Core market is in the UK
Skilled employees and
global presence
SO strategy
They should give more focus
on Asian market because the
trends are changing on this
market and the market size is
large.
Also, it suits with their
pricing policy
They should increase their
marketing strategy to reach
more markets and show their
presence with different
products and services.
They should use the online
phase to boost up their sales
and operations
ST strategy
They can buy Maytag to
make potential growth in the
US market
They should focus on R&D
to make product and market
development to reach higher
growth of the business,
growth that makes also
impact to this business.
They are getting
outsourcing of their
manufacturing apparels
Bad reputation on their
manufacturing as it reveals
that they are getting their
product from cheap labour
in South Asian countries
mostly
WO strategy
They should try to reduce the
costs margin and make
effective merging with Asian
business.
They should launch new
product as can do product
diversification to capture new
market and make their
presence globally,
WT strategy
They will get cheap labour in
South Asian market so they
should use it and cut the
overhead cost to make their
competitive pricing on these
countries.
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
 Butler, Sarah (2014) “Primark to pay £6m more to victims of Rana Plaza factory
in Bangladesh” The Guardian
 Lisa, M (2018). Advantages & Disadvantages of the structure of an organization.
Chron
 Campbell, D., (2012). Organisations and the business environment. Routledge.
 Montazemi, A.R., (2010). “Factors affecting information satisfaction in the
context of the small business environment”. MIS quarterly, pp.239-256.

 Schiffer, M. and Weder, B., (2010). Firm size and the business environment:
Worldwide survey results (Vol. 43). World Bank Publications
 Fogel, G., (2011). "An analysis of the entrepreneurial environment and enterprise
development in Hungary". Journal of Small Business Management, 39(1), pp.103-
109.
 Mantel (2015) “UK Clothing Retailing” Mantel: London
 Johnson, G., Schools, K., and Whittington, R. (2005) “Exploring corporate
strategy” FT Prentice Hall