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Contents
Introduction......................................................................................................................................3

Task 1...............................................................................................................................................4

LO1 Explain the different types, size, and scope of organizations.................................................4

P1 Explain different types and purposes of organizations; public, private and voluntary
sectors, and legal structures.........................................................................................................4

P2 Explain the size and scope of a range of different types of organizations.............................7

M1: Analyze how the structure, size, and scope of different organizations link to the business
objectives and product and services offered by the organization................................................8

LO2 Demonstrate the interrelationship of the various functions within an organization and how
they link to organizational structure................................................................................................9

P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure.......................................................................................9

M2 Analyse the advantages and disadvantages of interrelationships between organizational

functions and the impact that can have upon organizational structure......................................11

Task 2.............................................................................................................................................12

LO3 Use contemporary examples to demonstrate both the positive and negative influence/impact
the macro environment has on business operations.......................................................................12

P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples
 ...................................................................................................................................................12

LO4 Determine the internal strengths and weaknesses of specific businesses and explain their
interrelationship with external macro factors................................................................................16

P5 Conduct internal and external analysis of specific organizations in order to identify

strengths and weaknesses..........................................................................................................16

P6 Explain how strengths and weaknesses interrelate with external macro factors..................18

M4..............................................................................................................................................19

Conclusion.....................................................................................................................................20
Introduction
From the very beginning business environment is playing an important role in making
managerial decisions. To operate a business organization effectively and efficiently the
organization must consider business environment deeply. A business can be set up, however to
effectively continue a business, the business needs assets like fund, for which it needs to rely
upon financial institutions. Acknowledgment of social standards, for which it needs to rely upon
society. Appropriate economic situations, for which it needs to rely upon the market. The sale of
the product or services, for which the business organization must rely upon the clients. For
workforce they also must rely on the society. Here in this situation we can say that environment
of a business means the external forces influencing the business decisions. They can be forces of
economic, social, political and technological factors. These factors are outside the control of the
business. The business can do little to change them. Here we will discuss the business
environment of Poundland. Poundland is a British variety store chain founded in 1990, selling
most items at the single price of £1, including clearance items and proprietary brands. In this
context we will focus on the macro environment, SWOT and PESTLE analysis etc. of Poundland
for understanding the conditions of them in UK.
Task 1

LO1 Explain the different types, size, and scope of organizations

P1 Explain different types and purposes of organizations; public, private and voluntary
sectors, and legal structures

Business implies to the convertible procedure of aptitudes and materials as per the demand of
clients or gives service according to the demand of the customers. Business environment
contains differing factors, for instance, clients, resources, contenders, providers, wholesalers,
industry designs, substitutes, law, government development, the economy, populace and
demography and progression and imaginative innovation. It has been seen that assets, for
example, human, physical and monetary assets are most vital segments for any organization. It
has been noticed that business imminent of organization has been influenced by the few factors,
for example, innovation change and government intercession. It has been seen that the clients are
imperative for authoritative survival and success.

There are several organizations exist according to their nature and objectives. Such as
public, private and voluntary firm and their working way are given below:

private

public

Voluntary
Public Organization

When a business runs their activities by government authorities then we called it public
business. organizations are regularly financed by citizen dollars, which implies that every
one of the individuals from the overall population may have an enthusiasm for how the
organization works. Government inclusion implies that specific procedures, for example,
contracting or acquisition, may continue more gradually than in the private segment, where
organizations don't have to pick up endorsement from different overseeing parties before
getting or utilizing reserves.

We have observed that the economy of the public sector is directly controlled by
government or government agencies. Therefore, the business operation is running the
different types of organization on behalf of its citizens and for their general well-being.
National Health Service is one of the popular public organizations in UK. Their main
objective is to provide a quality health service for the people of United Kingdom.

Private Organization

When the ownership and control of the organization is controlled by the private individuals
or group is known as private organization. The aim of the organization is only profit. Private
organization alludes to any individual, organization, enterprise, affiliation or office which is
certifiably not a public body that is worked for benefit. It very well may be a self-
continuing, non-administrative substance, comprised or built up and working on Federal
property, by people acting outside any official limit in the Government.

As Pounland is a private organization it is not operated like a public organization. Its

objective is to provide every good at £1 from their inception.

Voluntary

Voluntary organizations run their activities for the betterment of the people of society.
Group of people works deliberately for society and no concern about profit or we can say
that voluntary organization is an organization that is composed of or functions with the aid
of volunteers and which provides aid or services to individuals, groups or countries.
The activities of the voluntary sector are involving in different organizations such as
charity, voluntary bodies and business community. Those organizations are basically non-
profit enterprises and non-governmental organization. It has been noticed that Cancer
Research is popular voluntary organization in UK. As Cancer foundation of United States is
a voluntary business organization their main goal is to provide services to the people not to
gain profit.

Above these firms may different in sections but they follow all the government rules and
policies to keep their business operating.

From the very inception of business and policies, people keep forming business of different
structures according to the existing policies and acts. Such as Sole trader, Partnership,
Corporation, Cooperative organization. The advantages and disadvantages of these
organization have discussed below:

Sector Organization Legal Advantages Disadvantages

name structure

Sole trader Mortimer & Co Sole trader is  Easy formation  Limited

Chartered known as one of  The tax rate is resources
Accountants the simplest low  Unlimited
forms of  Termination of liability
business. the business  Short business
easy rather than life
the others
Partnership GoPro & Red Two or more  Fewer legal  Profit sharing
Bull. people are formalities  Partners taking
agreed to  Taking a better liability
operate the decision individually and
business for a  Large funds and jointly
common goal reduction of  Secrecy
is known as risks problem lies in
Partnership. this business
 Conflict

Corporation Poundland Firm that meets  Separate legal  Too much legal
certain legal entities bureaucracies
requirements to  Transferring  Tax impose
be recognized ownership double
as having a  Unlimited  Management
legal existence, business life team work
as an entity independently
separate and
distinct from
its owners.

Cooperative Baywind Firm owned,  Open  Low capital

organization Energy Co- controlled, and membership management
operative operated by a  It has  Excessive
group of users democratic information
for their own control; one record
benefit. vote by one  Conflict
member between
members
  Distribution of
profit

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

In recent business world there are different types of business according to their business
sizes or the radius of their business operations. According to their quantities of products,
sum of employees, assets standards etc. the businesses are divided into following sectors.

Large Medium Small Micro

Large

We know that a large organization has involved over 250 members and $50 million in
revenue in a year. According to this theme, the Poundland is also a large business
organization. As poundland has more than 18000 staffs as well as 1.31-billion-euro revenue
each year. In this situation Poundland have has meet both the requirements. As Poundland
has to operate a large business they must to manage a huge amount of resources. One
advantage of such business is about to have plenty of resources to invest.

Medium: 

If any firm has less than 250 members and more than 50 members then we can say that it is
the medium business. And income to be $50 million annually. According to these criteria,
Smith Brothers Ltd. is a medium business (Meiners, Ringleb and Edwards, 2018). Because it
has 140 members and income is $35 million over the year. The main merit of this business
is operating business activities in a flexible way and they ensure the betterment in their
functionalities.

Small:
Small firm has less than 50 members and their income is $15 each year. And in these criteria
support the Q5 consult firm. Their annual income is about $4.7 million and members are 42.
Here, the main advantage of small business is taking decision easily. But the problem is
small capital. For that many tasks cannot be done by this kind of firm.

Micro:

  Microbusiness defines that there are 15 members stay and the firm income can be less than
$2.5 million. In the UK Turtle Tots business has 10 members and their income may be less
than $2.5 million in an individual year. This firm merit is easily started and a chance to be
bigger by investing more capital.

The extent of the organizations is relying upon their item types. The example of pepsi
organization is to deliver and supply soda pops, for example, carbonated beverages,
concentrates, natural product juice, prepared to drink espresso, tea, sports caffeinated drinks
and packaged water .It has been seen that OXFAM is a philanthropy organization has a wide
focus on that underpins more assets to shield themselves from new passages to the market;
anyway against an extremely expansive organization with more assets the dangers might be
too high to even think about sustaining assurance.

It has been seen that the organization has chosen vision, mission, objectives and goal to
improve their business execution. Vision alludes to that position where the organization
needs to go. Mission alludes to the reason and job of the organization. As expressed by
Chen et al.(2012), the explanation behind choosing mission is to give the extent of the
organization so the organization can satisfy its Objectives. Target alludes to the particular
and shorter focus of the organization. The extent of the business implies the firm operational
zones and their services territories. As indicated by the extension organization can be
narrow or wide which are depicted below:

Narrow: Narrow extent of the business characterizes the minor useful region of business
and few branches. Furthermore, here, the Smith Brothers Ltd. additionally bears these
criteria that mean the tight extent of this organization. Then again, Ryanair has heaps of
practical zones they work in the entire of Europe and their individuals are in excess of a
thousand (Warner, 2011).

Wide: This is the inverse of the thin degree. In the wide extent of business incorporates a
substantial number of representatives and an expansive number of branches and their
capacity work inside the huge territory. In spite of the fact that Smith Brothers Ltd. bears
the tight degree as indicated by its criteria however Ryanair is the wide extension territory
business as indicated by their utilitarian zones, number of branches and their worker's
amount.

M1: Analyze how the structure, size, and scope of different organizations link to the
business objectives and product and services offered by the organization.
The business activity of the organization is depending up on the investors and partners.
Partners are considered as people or gathering of individuals who are keen on the business.
Be that as it may, these individuals are commonly influenced by the business exercises. It
has been discovered that there are distinctive highlights in business environment of firm like
Poundland, for example, dynamic, contrasts and wild. Along these lines, the business
environment of Poundland is changing step by step dependent on the pattern of clients and
society yet it is erratic moreover. The business is extended globally by the steady
enterprises. The business is wild on the grounds that the whole business activity depends on
large scale environment, powers and factors. For near assessment, we can pick the Smith
Brother Ltd. what's more, Poundland. Here, we will discover how structure, size, and extent
of business characterize their motivations and item advertising. Smith Brothers Ltd. works
in explicit zones and their workers amount is under 230. It is an contractual business. Then
again, the Poundland Company work their business practically everywhere throughout the
UK and their staffs are in excess of 18 thousand. They try to welcome the client in an
unexpected way by offering premium product only for 1 Euro. Their primary goal is the
giving support of the considerable number of individuals of the world and they need to
guarantee the consumer loyalty about the Poundland. The vast business has an incredible
preferred standpoint is a major measure of capital that exists in the aggressive market. They
put resources into any area effectively in light of the fact that they have enough cash. These
criteria help to firm to accomplish the upper hands and increasing vast benefit. Due to the
larges size and extent of the business help in accomplishing these capacities.
LO2 Demonstrate the interrelationship of the various functions within an
organization and how they link to organizational structure.
P3 Explain the relationship between different organizational functions and how they link
to organizational objectives and structure.

To run a business organization properly the business must operates different functions. Life
that Poundland also maintain these functions to achieve their goals. The relationship of
Poundland’s functions and objectives are given below:

Organizational functions The interrelationship between functions and objectives

Marketing The marketing procedure is valuable for both customer and
supplier. The marketing enables the organization to like
Poundland to convey client data for growing new items
which will bolster t quality existence of the clients. It has
been seen that Poundland has made a focused business
environment through their aggressive pricing strategy. The
organization has created item conveyance framework which
permits the clients advantageous access to item and service.
The intense interest of the Poundland items enables the
organization to develop and extend its tasks and gather
more benefit from UK market. it has been seen than
imparting messages of the organization improves social
conduct in positive way. It has been seen that the
organization some of the time gave mindfulness messages,
for example, against smoke alerts just as perilous driving in
tipsy condition may expand obligation of the organization
on the general public.
Finance The financial function provides valuable reports on
financial performance and position in relation to business
plan. The organization has assigned the assets to different
 pieces of the organization in accordance with spending plan
and estimating the utilization of budgetary assets against
execution spending plan. So as to deal with the money
streams the organization needs to guarantee that there are
adequate assets to meet business necessities. The money
related execution of the each division screens by the inward
evaluators. The account of the substantial organization was
associated with the speculation of surplus assets. It has
been seen that numerous organizations have made the
treasury reserve to take care of the business of the
organization. Consequently the organization gets best
returns and decreases the hazard from venture. The venture
of asset is commonly considered as hazard by most account
office which incorporates interior tasks of extra generation
lines, cost improvement venture, purchasing new
technology to support quality and proficiency. It has been
seen that financial report of Poundland guarantees that the
organization meet substantial prerequisites of UK.
Human resources Poundland has involved advance human resource
management management department to look after the employee by the
organization. Human resource department is entitled to
manage the employees to achieve 100% efficiency. The
HRM department also very much serious about the
legislation and policies. Human resource management
involves in different activities such as recruitment,
administrations, job design, maintaining employment law,
employee relation, managing compensation, training and
development of employee skills.
Operation/Production Production activities should be considered for the firm’s
run perfectly. Because production also relates to the
objective of the firm. Here, the main advisor operates the
 activities by his subordinates and they can perfectly do it.

Different types of business organizations follow different type of organization structure

according to their demand and functions. These various types of organizational structure are
interrelated with the objective of the business organization.

Organizational Structure The interrelationship between Structure and objectives

Functional structure Functional structure is also known as bureaucratic
organizational structure, the functional structure divides the
company based on specialty. This is the traditional business
with a sales department, customer service department,
marketing department, etc. The advantage of a functional
structure is that individuals are dedicated to a single function.
Divisional structure In this organizational structure, leadership maintains based on
the specific product or project. Here, every department tasks
held in individually but ultimately they focus on a common
goal.
Strategic business Strategic business unit work as an autonomous entity. Here,
unit(SBU) they work based on a target market. They have a specific vision
and mission. They directly report to the main branches of the
firm.
Matrix The matrix structure is more befuddling, however pulls focal
points from several unique arrangements. Under this structure,
representatives have different managers and detailing lines. In
addition to the fact that they report to a divisional director,
however they likewise commonly have venture administrators
for explicit undertakings.

M2 Analyse the advantages and disadvantages of interrelationships between

organizational functions and the impact that can have upon organizational structure.
Though business organization maintain their functions and structure to work effectively and
efficiently sometimes they have to face some demerits too. The advantages and the
disadvantages of interrelationships organizational functions and organizational structure
below:

Advantages Disadvantages
To improve the efficiency of the firm. The For maintaining these function firms need
internal and external tasks of the firm held to bear the large amount of money that is
perfectly for these different functions. the main drawback of these functions.
To enhance communication among the Functions related tasks of the organization
various different departments of an may be the complex system which is not
organization. easily done by authorities.
For better performance of the firm, these Huge time spend in this situation for
functions are needed which are a helping to managing the various functions.
maintain the performance of the firm.

To run an organization effectively they must have to balance the advantages and
disadvantages simultaneously.
Task 2

LO3 Use contemporary examples to demonstrate both the positive and

negative influence/impact the macro environment has on business
operations
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples
 In above discussion, we have known the structure of various kinds of the firm and their
functions according to their size and scope etc. For understanding the circumstance of business,
we will describe the SWOT. We mention the surroundings situation of Poundland. We are trying
to show the relationship structure, functions and objectives of the firm. Every firm wants to
operate its business effectively and efficiently.
LO4 Determine the internal strengths and weaknesses of specific
businesses and explain their interrelationship with external macro
factors.
P5 Conduct internal and external analysis of specific organizations in order to identify
strengths and weaknesses.
SWOT analysis shows us the internal and external factors of an organization which help to take
managerial decisions.
As indicated by the above investigation we can clear up about the Poundland's inner quality
and shortcomings that assistance to confront their outside business factors moreover. They
work their business as indicated by this condition and advance their business.

P6 Explain how strengths and weaknesses interrelate with external macro factors
For building up the performance of the Poundland, they must analysis their internal and
external factors, they should adopt their strength and weakness carefully. External macro
factors work for maintaining strength and weakness. Both things are evaluating carefully for
gaining the desired position. Poundland also takes the essential steps for measuring their
strength and weakness which are related to the macro factors.

Their relationships are given below:

Internal factors Identified factors within Link with the factors of the

the Poundland macro environment
Strength  Poundland offers a wide Economic Development:
range of products. Poundland are became so much
 Poundland has a large profitable only for their concern
 number of stores covering about economic development.
many locations in Europe
Social Welfare: It promotes its
 Has a high Operating
activities by focusing on social
Efficiency with over
issues.
15,000 employees engaged
Technological Advancement:
 Excellent customer service
For advertising and other
and so loyal customers
communication with the
 The company estimates it
customers and suppliers,
serves approximately 3
employees etc. they used modern
million customers in a
technology.
week
 Over 800+ stores spread
all across the UK Demography:
Poundland is also very much
concern about spreading worldwide
and that creates employment to lots
of people.
Weakness  Fixed price, so has to Political instability: Political
operate very effectively instability creates a problem for
under cost cutting. business. As like Poundland also
 Poundland does not have a face these problems.
strong online presence Legal issues: repeatedly changes
of the law make a problem for the
Poundland.
Environmental changes:
Changing environment also
creates a problem for the
company like Poundland.

M4
Here is the SWOT analysis of the Poundland is given below:  
 Strength Weakness

1. Poundland offers a wide range of 1. Fixed Price, so has to operate very

products effectively under cost cutting

2. It has a large number of stores covering 2. Poundland does not have a strong online
many locations in Europe presence

3. Has a high Operating Efficiency with

over 15,000 employees engaged

4. Excellent customer service

5. The company approximately 3 million

customers in a week

6. Over 800+ stores spread all across the

UK

Opportunity Threats

1. Expansion in other parts of Europe and 1. Rising competition in single pricing

in other country can boost the business of retailers
Poundland
2. Challenging economic conditions in UK
2. Can invest more e-commerce to increase will demand more value for money
revenue
3. Exchange rate fluctuations may hamper
3. Increase offer range to become a one the growth plans with single pricing
stop shop for all customer requirements
4. Product substitution is easier

According to this SWOT analysis we can understand that if Poundland can utilize their
strength, maximize opportunities by minimizing the threats also by removing the weakness
they can operate their business successfully and efficiently.
Conclusion
In this report we have discussed about the structure of different sorts of the firm and their
capacities as per their size and degree and so forth. For understanding the situation of business,
we portray the SWOT and PESTLE analysis. We notice the surroundings circumstance of
Poundland. We are attempting to demonstrate the relationship structure, capacities and targets of
the firm. Each firm needs to work its business viably and productively. For that, fundamentally
they ought to guarantee the well-disposed business environment for their organization. For
estimating the better business environment, a firm right off the bat ought to legitimize the
business environment related factors and encompassing circumstance lastly, they should take
choice as indicated by these discoveries.
Reference:

https://www.poundland.co.uk/about-us/our-history/

https://www.tuko.co.ke/288682-business-environment-definition-types-importance.html#288682

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https://www.toppr.com/guides/business-studies/business-environment/introduction-meaning-
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https://www.ukessays.com/essays/economics/the-meaning-and-importance-of-business-
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https://www.ukessays.com/essays/business/the-purpose-of-different-types-of-organization-
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https://edwardlowe.org/how-to-determine-the-legal-structure-of-your-business/

https://www.yell.com/s/sole+traders-uk.html#

https://www.allbusiness.com/4-common-types-organizational-structures-103745-1.html