Higher National Certificate in Business

Student Name/ID Number: Sehan Kesara (CB008618)

Unit Number and Title: 1 Business and the Business Environment

Academic Year: 2020

Unit Assessor: Maheema Rajapakse

Assignment Title: Organisational Types, Functions and Structures
Issue Date: 30th April 2020

9 June 2020
Submission Date:

Submitted Date: 9 June 2020

Internal Verifier Name: Shamri Afurdeen
Word count : 6,992

Submission Format:

The submission is in the form of a report includes portfolio of factsheets and an organisation
chart. The factsheets should be written in a concise style to summarise and highlight key
information and data. You are required to make use of headings, paragraphs and subsections
as appropriate, and all work must be supported with research and referenced using the
Harvard referencing system. Please also provide a bibliography using the Harvard referencing
system. The recommended word limit is 2,000–2,500 words, although you will not be penalised
for exceeding the total word limit.

Unit Learning Outcomes:

Assignment 1
LO1 Explain the different types, size and scope of organisations

LO2 Demonstrate the interrelationship of the various functions within an organisation and how
they link to organisational structure

Assignment Brief and Guidance:

Scenario and activity:

You have been employed as an assistant business analyst by a large multinational organisation
[of your choice – your own place of work if appropriate], to investigate different types and
sizes of business they will have to compete with.

You are required to investigate and analyse three different types of organisations, their size
and classification to highlight differences between them. This should include their legal
structure, size and scope, as well as their key stakeholders.

For one of the organisations you must then explain the various functions within the business
and create an organisational chart to explore the interrelationships between different
functions. You must also explain how this would be different in the other two organisations.

This will be presented as a portfolio of factsheets including an organisation chart to the CEO and
should include the following:

1. Introduction to provide an overview of different types of organisations and the growth

of the international business environment.
2. An explanation of each of the chosen organisations, including: background details of the
organisation; the products and services they supply; the size and scope of the
organisation; their vision, mission and business objectives; the organisational and
legal structure; and information about their stakeholders.
3. In detail, examine the different business functions for one of the chosen organisations,
using an organisation chart to show how the functions interrelate and analyse the
advantages and disadvantages of how they relate to and impact the structure of the
organisation.
 Acknowledgement

I would like to express my special thanks of gratitude to my teacher “Miss.Maheema

Rajapakshe” for their able guidance and support in completing my project.

Also I would like to thanks my parents to their suggestions and guidance have been helpful in
various phases in completion of the project.

Last but not the least I would like to thanks my classmates who have helped me a lot.
Executive summary
Organizations are the key factor for a growth economy, most of the developed countries are
focused on promoting business organizations. From this report we can get an overall idea about
an organization, types of organizations and their advantages as well as the disadvantages.

Most of the developed countries own the world biggest organizations, which make a great impact
for their GDP, this report have been proved it by selecting 3 world largest organizations. Vision,
mission, objectives and the business functions can carry an organization to the success, we can
get a clear idea about that from the below mentioned organizations.

Organizational structure is the main arrangement of an organization, to do the business functions

efficiently, a proper structure is required, from the below report we can get a clear idea about
organizational structures and the different between organizational structures of mentioned 3
companies.

Stakeholders play the key role when carrying an organization to the success, we can get an idea
about stakeholders of different organizations and the way how they impact on it from the below
explanations.
 Contents
Acknowledgement.......................................................................................................................................4
Executive summary.....................................................................................................................................5
Table of figures...........................................................................................................................................8
Organizations..............................................................................................................................................9
Types of organizations................................................................................................................................9
Classification of organizations based on motive....................................................................................10
Profit motive organizations................................................................................................................10
Nonprofit motive organizations.........................................................................................................10
Classification of organizations based on sector.....................................................................................11
Private sector organizations...............................................................................................................11
Public sector organizations................................................................................................................11
Sole traders........................................................................................................................................12
Partnerships.......................................................................................................................................12
Limited liability companies...............................................................................................................13
Classification of businesses based on Size.............................................................................................14
Micro enterprises...............................................................................................................................14
Small and medium Size enterprises (SMEs)......................................................................................14
Large enterprises...............................................................................................................................14
Classification of businesses based on industry......................................................................................15
Primary industry................................................................................................................................15
Secondary industry............................................................................................................................15
Tertiary industry................................................................................................................................16
Coca-Cola..................................................................................................................................................17
Introduction...........................................................................................................................................17
Size, scope and legal status of Coca-Cola..........................................................................................17
Vision, mission and objectives of Coca-Cola........................................................................................18
Vision................................................................................................................................................18
 Mission “Our Roadmap starts with our mission, which is enduring. It declares our purpose as a
company and serves as the standard against which we weigh our actions and decisions”(Coca-
colaarabia.com, 2016)........................................................................................................................18
Objective...........................................................................................................................................18
Stakeholders of Coca-Cola....................................................................................................................19
Customers..........................................................................................................................................19
Suppliers...........................................................................................................................................19
Employees.........................................................................................................................................19
Bottling partners................................................................................................................................19
Organizational structure of Coca-Cola..................................................................................................20
Link of structure, size and scope with business objectives....................................................................21
Objective 1-To be globally known as a business that conducts business responsibilities..................21
Objective 2- To expand their operations in developing countries......................................................21
Business Functions of Coca-Cola..........................................................................................................22
Human resource.................................................................................................................................22
Sales and marketing...........................................................................................................................22
Production.........................................................................................................................................22
Customer service...............................................................................................................................22
Interrelationship between business functions of Coca-Cola...................................................................23
Link between organizational functions with structure and objectives................................................23
Advantages of interrelationship between business functions.............................................................24
Disadvantages of interrelationship between business functions.........................................................24
Apple.........................................................................................................................................................25
Introduction...........................................................................................................................................25
Size, scope and legal status of Coca-Cola..........................................................................................25
Mission, vision and objectives of Apple................................................................................................27
Mission..............................................................................................................................................27
Vision................................................................................................................................................27
Objectives..........................................................................................................................................27
Organizational structure of Apple..........................................................................................................28
Stakeholders of Apple...........................................................................................................................29
Customers..........................................................................................................................................29
 Employees.........................................................................................................................................29
Investors............................................................................................................................................29
Employees of suppliers and distributors............................................................................................29
Amazon.....................................................................................................................................................30
Introduction...........................................................................................................................................30
Size, scope and legal structure of Amazon............................................................................................30
Vision, Mission and Objectives of Amazon..........................................................................................31
Vision................................................................................................................................................31
Mission..............................................................................................................................................31
Objectives of Amazon.......................................................................................................................31
Organizational structure of Amazon......................................................................................................32
Stakeholders of Amazon........................................................................................................................33
Customers..........................................................................................................................................33
Employees.........................................................................................................................................33
Communities.....................................................................................................................................33
Referencing‌...............................................................................................................................................34
 Table of figures

Figure 1-Organizational chart of Coca-Cola..............................................................................................18

Figure 2 Organizational structure of Apple...............................................................................................26
Figure 3-Organizational structure of Amazon...........................................................................................30
 Organizations

Organization is a process done by group of people by identifying and grouping work to be done,
defining and delegating responsibility and authority and establishing relationships for the
purpose of enabling people to work most effectively together in accomplishing objectives (Louis
Allen) (Your Article Library, 2015).

Types of organizations

Organizations can be classified based on various criteria’s such as,

1. Based on motive
2. Based on sector
3. Based on legal status
4. Based on industry
5. Based on size

Classification of organizations based on motive

Profit motive organizations
The major motive of these kinds of organizations is generating profit by using variety of tactics.
These businesses use different managerial ways to motivate the employees and to satisft them
which can increase worker productivity (smallbusiness.chron.com, n.d). Due to the motive of
earning profits, these types of businesses are more focused on new innovations and taking risk
(Investopedia, 2019).

Nonprofit motive organizations

Organizations that do not provide benefits for their members or stakeholders are known as not
for profit organizations. Its motive is social welfare instead of earning profits (My Accounting
Course, 2019). The money earned or donated to a non-profit organization is used to achieve the
organizational objectives and keep it running. Mostly non-profit organizations are not required to
pay taxes (Investopedia, 2019).
 Classification of organizations based on sector

Private sector organizations

An organization that run by individuals with a motive of earning profits and which is not
managed by government is known as private sector organization. Private sector contributes a
larger share of the economy in free market, capitalist based societies (Investopedia, 2019).

The entities that form the private sector include (Investopedia, 2019):

 Sole proprietorships
 Partnerships
 Small and mid-sized businesses
 Large corporations and multinationals
 Professional and trade associations
 Trade unions

Public sector organizations

These are the entities that have been formed to manage the policy and operate requirements that
help government to achieve its goals of public governance. These organizations are owned by the
government (Sciencedirect.com, 2015). Public sector organizations can be formed in three
different forms as, departmental undertakings, public corporations/statutory corporations and
government companies (Toppr-guides, 2018).

Below are some examples for public sector organizations (PrivacySense, 2016),

 Education (Schools, Libraries)

 Electricity
 Emergency Services
 Fire Service
 Gas and Oil
 Healthcare
 Infrastructure
 Law Enforcement
 Police Services
 Postal Service
 Social Services
 Waste Management
Sole traders
It is a business owned and controlled by a single individual which is in the simplest and easiest
form. Most of the sole traders are small businesses. It does not have a legal personality, the main
disadvantage of this form is unlimited liability (Lan and chris, 2006, p.200).

Some features of sole traders (SubjectQuery, 2019),

 Simple and easy to form

 Has an individual owner
 Controlled by the owner
 Unlimited liability(owner is responsible for the liabilities)
 Less legal requirements
 Owner has the decision making power
 Easy to dissolve
 Has a direct relationship with customers

Partnerships
Partnership is defined as a relationship between persons to carry on a business with a common
goal to earn profits. Most of the features are similar to sole trader, but there are more than one
owner to a partnership. Partnerships also do not a have legal personality, but has an unlimited
liability (Lan and chris, 2006, p.201).

Below are some features of partnerships (kaushika, 2019),

 Owned by two or more persons

 Profit must be shared among partners
 Unlimited liability
 Not a separate entity
 Business is controlled by more than one person
 Less legal requirements compared to limited companies
Limited liability companies
Is a firm with a legal identity where all the assets and properties are owned by the company, not
by the owners (Lan and chris, 2006, p.203). Here owners are not personally liable for the
company’s debts or liabilities (Investopedia, 2019).Limited liability companies can be divided as
private limited and public limited companies.

Private limited companies

Is a limited company which is held privately. Liabilities are limited, shareholders are limited up
to 50, and shares cannot be issued for general public (Study.com, 2009).

Public limited company

Is a limited company where securities can be traded at stock exchange, it can be bought by any
person. Starting a public limited is more complex than a private limited and they should publish
their complete and true financial position to the public (BusinessDictionary.com, 2019).
Classification of businesses based on Size

There are many ways to measure the size of firms. Commonly size is measured using turnover,
the value of output, the capital or the level of employment (Lan and chris, 2006, p.232).

Micro enterprises
Micro is the smallest size of an enterprise which operates with less than 10 people and it will be
started with a small capital (Investopedia, 2019). Micro enterprises are the trademark of
developing countries, they help for the income growth in rural areas by providing jobs. Also they
help to grow other businesses by proving goods and services (Energy For Impact, n.d.).

Small and medium Size enterprises (SMEs)

According to European commission enterprises with less than 250 employees is known as SMEs.
They also should have an annual turnover up to EUR 50 million or a balance sheet total not more
than EUR 43 million. SMEs are known as the backbone of the European economy (Europa.eu,
2011). SMEs make up a large part in Sri Lankan economy. These can be seen in all sectors in
economy primary, secondary and tertiary (SME,n.d). Governments regularly offer incentives
such as favorable tax treatment and better access to loan, to motivate them in business because
they play an important role in economy (Investopedia, 2019).

Large enterprises
Enterprise which has minimum 5000 employees or a turnover more than 1.5 billion euros and a
balance sheet total of greater than 2 billion euros is known as a large enterprise (www.insee.fr,
n.d.).These enterprises required huge infrastructure and man power (Toppr-guides, 2018). There
can be several office locations domestically and internationally, these kinds of enterprises may
include full time IT staff including several specialists (Sangoma Content Marketing Team,
2016).
Classification of businesses based on industry

Primary industry
An industry which extracts or collects natural resources as it is without changing the form is
known as primary industry. It also can be an activity such as farming and fishing (Primary
industry, 2019). This considered as one of the oldest economic activity. It covers the basic need
of human beings to survive, and most of the raw materials from primary industries carried to
secondary sector to produce consumer goods (Euston96, 2019).

Examples;

 Mining
 Forestry
 Farming
 Fishing

Secondary industry
Is an industry which converts raw materials or resources collected by primary industry in to
finished products (secondary-industry, n.d). This sector has the potential to change world
economies (Marketing91, 2019).

Examples (Simplicable, n.d.);

 Construction of houses, buildings etc.

 Production of food and beverage products such as bakery
 Production of clothing, footwear and other items
Tertiary industry
This industry provides goods and services to the consumers with the raw materials obtained from
the primary industry and the goods produced by the secondary industry (tertiary-industry,n.d).
This is also known as the tertiary sector or service industry/sector (Investopedia, 2019).

Examples (Simplicable, n.d.);

 Transportation-transportation of goods and people

 Hospitality-Restaurants, hotels etc.
 Healthcare services
 Consulting
 Public services-Services provided by government such as education, public infrastructure
and public healthcare
 Coca-Cola
Introduction
Coca-Cola is an American corporation found in 1892, today it engaged primarily in the
manufacture and sale of syrup and concentrate for Coca-Cola. It is a sweetened carbonated
beverage that is a cultural institution in United States and a global symbol of American taste.
This company also produces and sells other soft drinks and citrus beverages. It has more than
2800 products available in more than 200 countries. This is the largest beverage manufacturer
and distributor in the world and one of the largest corporations in the United States (The Editors
of Encyclopedia Britannica, 2018).

Size, scope and legal status of Coca-Cola

Coca cola is a large scale company which has an annual revenue more than $37 billion (2018)
and which operate with in more than 200 countries (Macrotrends.net, 2018).Number of
employees worldwide in Coca-Cola according to 2019 stats is 86,200 (Statista, 2017). It is an
Australian owned public company (COCA-COLA AMATIL, 2019). Legal status of Coca-Cola is
a public limited company, they offer shares to the general public through the company
(UKEssays, n.d.).

There are many brands under Coca-Cola, some of them are,

 Coca-Cola zero
 Diet coke
 Sprite
 Fanta
 Minute maid
 Schweppes
 Five alive
 Oasis
 Roses
 Kia ora and etc
Vision, mission and objectives of Coca-Cola

Vision
“Our vision is to craft the brands and choice of drinks that people love, to refresh them in body &
spirit. And done in ways that create a more sustainable business and better shared future that
makes a difference in people’s lives, communities and our planet” (Coca-colacompany.com,
2019).

Mission
“Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company
and serves as the standard against which we weigh our actions and decisions”(Coca-
colaarabia.com, 2016).

 To refresh the world.

 To inspire moments of optimism and happiness.
 To create value and make a difference

Objectives
1. “The main objectives for the Coca-Cola company are to be globally known as a business
that conducts business responsibility and ethically and to accelerate sustainable growth to
operate in tomorrow’s world. By having these objectives, it forms the foundation for
companies in the decision making process” (The Coca-Cola Company, 2019).
2. To engage Coca-Cola in exploring the viability and options for using their distribution
network in developing countries to distributes “social products” such as oral rehydration
salt (ORS) and related educational materials on health hygiene and sanitation.
3. To support Coca-Cola and its partners in modeling different scenarios which combine
Coca-Cola’s distribution network with local health initiatives in order to achieve them
4. To establish a core group of enablers and activists to lead on the different aspects of this
campaign
 Stakeholders of Coca-Cola

Customers
Customers is the main component of Coca-Cola, therefore Coca-Cola needs to consider about
customer satisfaction well. To keep a long-term relationship between customers they must give
preferential regime for their customers like promotion or discount (www.coursehero.com,
n.d.).

Suppliers
Coca-Cola has many suppliers who provide such as ingredients, packaging and machinery, goods
and services to the company. Suppliers must ensure the quality, quantities with reasonable price
and Coca-Cola will provide good payment systems (www.coursehero.com, n.d.).

Employees
Employees are one of the most important internal stakeholders, where they will help Coca-Cola
in operational existence. Most of the employees expect good opportunities from company
(www.coursehero.com, n.d.). According to 2019 stats 86,200 employees are working under
Coca-Cola worldwide (Statista, 2017).

Bottling partners
Coca-Cola has introduced many innovative technologies in 2019 such as keelclip packaging
technology, minimal paperboard packaging solution. They replaced shrink wrap with keelclip. .
Coca-Cola Hellenic Bottling Company will invest €15 million in KeelClip™ and begin the roll-
out in Ireland and Poland, followed by Austria, Italy, Switzerland and Romania in 2020. This
will save 2,000 tons of plastic and 3,000 tons of CO2 annually.
Organizational structure of Coca-Cola
Coca-Cola has a separate international division structure because its international staffs operate
separately from head office (organizational structure, 2011). It has 5 continental divisions as,

 Eurasia & Africa Group

 Europe Group
 Latin America Group
 North America Group
 Pacific Group

Figure 1-Organizational chart of Coca-Cola

Link of structure, size and scope with business objectives

Objective 1-To be globally known as a business that conducts business responsibilities

Here from the word “globally” we can get a clear idea about its size that it’s a large scale
company, which operates with in several countries. Coca-Cola is a world famous large scale
company, maintaining their brand name is one of the main objectives of it, conducting business
responsibilities can be seen as a one step of it.

Objective 2- To expand their operations in developing countries

Here from this objective also we can get an idea about its size that it’s a large scale company.
This objective clearly shows that Coca-Cola operates in more than one country, this can be
related with the international division organizational structure of Coca-Cola.
Business Functions of Coca-Cola
Human resource
Human resource department handles all the aspects of employees. Human resource management
can be known as process of recruiting, selecting, motivating and maintaining a proper
relationship with employees (Whatishumanresource.com, 2008).

HR department of Coca-Cola says that employees are the most important asset therefore they
care about employee’s health and benefits. They give benefits and compensations such as basic
salary, bonus, medical facility, pick and drop, gratuity fund, social security.

Additionally to that they care about employee’s happiness to motivate them day by day (Nevroz
Gösterici, 2012).

Sales and marketing

Sales and marketing includes responsibilities such as advertising, promoting, conducting public
relationships and all other functions under sales (Chron.com, 2013).

This function acts a big part in Cola-Cola to become a world leading enterprise. Motive of the
marketing team is to increase the sales, market shares, and profit by engaging with customers
and consumers (The Coca-Cola Company, 2017).

Production
Producing outputs with the co-operation of resources such as land, labor and capital can be
known as production process (Kumar, 2015).

Primarily, Coca-Cola is manufactured by franchisees that are the world's leading bottling and
canning companies. This franchise business is strictly controlled by The Coca-Cola Company
(Studies, 2019). Production process of Coca-Cola includes water treatment, preparation of syrup,
filling and packaging (Coca-colahellenic.com, 2019).

Customer service
Customer service is the act of taking care of customer’s needs before or after providing service
or product. This is an important function to get the customer feedbacks to improve the future
productions (Study.com, 2015).
Finance
Controlling and planning of financial resources can be known as financial management.
Financial function of a business involves in acquiring and utilization of necessary funds for
business operations (Management Study HQ, 2018).

Administrative services
Simply administrator does the daily operations of organizations to provide goods and services.
Assuring the business achieving financial goals is the major function of an administrator (Career
Trend, 2019).
Interrelationship between business functions of Coca-Cola

There is an interrelationship between the functions of any organization, here also we can see
some interrelationship among functions of Coca-Cola.

The feedback received from customers to the customer service is good information to the
production departments to improve their production quality and to get an idea about their future
innovations. An organization must always care about customer requirements and the new trends,
any organization can be failed if they unable to satisfy the customers, Nokia is a good example
for that.

After producing a product it should be taken to the market and advertising, promoting and sales
must be done. Even if they produced good product and they failed in sales and marketing that
product cannot be success in the market. So this is done under the Sale and marketing function of
Coca-Cola.

Human resource is the most valuable resource at an organization because it’s the only resource
which can be motivated. So to do any above function at an organization managing the human
resource is very important, human resource is linked with each and every function at an
organization.
Link between organizational functions with structure and objectives
There is a clear relationship between organizational functions and organizational structure, all
the functions are located in organizational structure under the guidance of Coca-Cola president
and manager of particular function.

“To be globally known as a business that conducts business responsibilities”- objectives like
spreading the name of Coca-Cola all over the world cannot be done with one business function.
In this objective marketing function plays a major role with the combinations of other functions.
From this objective we can get a clear idea about the business size and the legal structure with
the words “To be globally known”. Most of the globally known organizations are large scale
public limited organizations.

“To engage in exploring viability”- Engage in exploring the viability is an overall objective of an
organization, simply this means conducting business successfully. Combinations of all the
business are functions are important to achieve to these kind of overall objectives. This is a
common objective to any business organization.

Advantages of interrelationship between business functions

1. Speed can be increased with the coordination of departments- when the business
activities are spitted into several departments the speed can be developed.
2. Helps to eliminate duplicate of functions- by separating the functions and with the
interrelation of them duplication of business activities can be eliminated.
3. Easy to obtain information’s from different departments- all the departments has
information which is useful to another business function, with the interrelationship of
these business functions that information’s can be share among other departments to
make the business successful.
4. Opportunities and threats can be identified easily
5. Cooperation among departments will be increased- this is a good advantage to the
organization, with the increase of cooperation problems can be easily solved without any
involvement of higher position.
6. Employees will get the opportunity to meet other employees at different sections and
share their ideas
Disadvantages of interrelationship between business
functions
1. Failure of one function can be a reason to fail entire functions- this is a major
disadvantage of interrelationship among business functions, if the one function fails it
will effect negatively to other functions as well.
2. Conflicts may among departments when taking the responsibility of the failures- if one
function gets failed, departments may try to transfer the responsibility other departments.
3. Even there is an interrelationship, specialization of functions may be a threat- this is a
disadvantage when splitting the functions into separate departments, each department
will be specialized in one business function only, if that department fails it will be effect
to whole business.
4. Misleading information provided by other departments may be a reason to fail entire
function- due to personal matters departments may provide misleading information’s to
other departments with the motive of making them a trouble.

Impact of interrelationship between business functions on

organizational structure
From the organizational structure of Coca-Cola we cannot see a direct interrelationship between
organizational functions, but all the functions are under the guidance of the Coca-Cola president.
Even the organizational chart does not a direct interrelationship among functions, there is an
impact of business functions toward the organizational structure. We can all the business
functions under an organizational chart from this we can get an idea about the impact of business
functions toward the organizational structure.
 Apple
Introduction
Apple is a world leading American electronic company founded in 1976 by two young hackers,
Steve Jobs and Steve Wozniak. Apple II which was the second product of apple became the first
personal computer to achieve mass-market success (Lee, 2014). The most popular hardware
products of Apple are Macintosh computers, iPod and the iPhone, software products are Mac OS
X operating system, iTunes etc. The company operates several hundreds of retail shops in many
countries worldwide and with online stores as well (Apple Inc, 2019). Today according to the
2019 stats Apple generates a revenue more than 260$ billion (Statista, 2018).

Size, scope and legal status of Coca-Cola

Apple is a large scale company which handles more than 135,000 employees and which generate
an annual revenue more than 260$ billion (Statista, 2018). Apple is a public limited company
and the world largest technology company (Johnston, 2018). It is the first $1 Trillion publicly
traded company, this $1 Trillion cap is equal to about 5 percent of the total gross domestic
production of the United States in 2018 (Apple is the first $1 trillion company in history, 2018).
There are many hardware and software products under the name of Apple (Apple Wiki, n.d.).

Some of the hardware products are,

1. iPhone
2. iPad
3. iPod
4. Mac pro
5. Macbook pro
6. iMac
7. Homepod
8. Apple Watch
9. Apple TV
10. Airpods

Some of the Software’s are,

1. Apple Music
2. Apple TV+
3. FaceTime
4. iCloud
5. iMessage
6. iMovie
7. iTunes
8. iWork
9. GarageBand
10. Siri
Mission, vision and objectives of Apple

Mission
Current CEO of Apple Tim Cook has stated its mission as “to bringing the best user experience
to its customers through its innovative hardware, software, and services”. This statement has
been included in the 2018 annual report. Through this statement they highlight’s that they try
their best to offer its clients the best service, and they has also described the way of achieving it
(Apple Mission statement, 2019).

Vision
Vision of apple has been stated as follow, “We believe that we are on the face of the earth to
make great products and that’s not changing. We are constantly focusing on innovating. We
believe in the simple not the complex. We believe that we need to own and control the primary
technologies behind the products that we make, and participate only in markets where we can
make a significant contribution. We believe in saying no to thousands of projects, so that we can
really focus on the few that are truly important and meaningful to us. We believe in deep
collaboration and cross-pollination of our groups, which allow us to innovate in a way that others
cannot. And frankly, we don t settle for anything less than excellence in every group in the
company, and we have the self-honesty to admit when were wrong and the courage to change.
And I think regardless of who is in what job those values are so embedded in this company that
Apple will do extremely well”( Apple Vision Statement, 2019).Here we can see its vision has
been described more compared to other companies, simply its vision is to own and control the
primary technologies by simple innovations.

Objectives
1. Continue to create new innovative products. Apple has made a unique name for itself by
introducing something new and exciting to the world.
2. Innovate and dictate the movement for future technology
3. Expand nationwide chain of Apple stores globally.
4. Make products available in every other possible retail channel
5.  Enter and sustain premium pricing while attempting to gain market share.
6. Increase profit margins
7. Build hype and anticipation for new upcoming products.
8. Sustain and expand on strongly branded name (Brandon Burnette, 2015).
 Organizational structure of Apple
Apple has a hierarchical organizational structure (Panmore Institute, 2019), it’s a structure with
multiple levels and the chain of command looks like a pyramid where the orders are flow to
bottom from up (hierarchical, 2019). Apple’s organizational structure helps to effective and rapid
innovation, which is a critical success factor of the business in the information technology,
online services, and consumer electronics industries (Panmore Institute, 2019).

CEO

Senior vice
Chief design Chief operating Vice
president
officer officer president

Retail User interface design

Internet software and services Communication

Software engineering
Industrial design

Chief financial officer

Environment, policy and social
initiatives
Hardware engineering

Worldwide marketing Marketing communications

General counsel
Dean, Apple university

Hardware technologies
Worldwide human resources
Figure 2 Organizational structure of Apple
Stakeholders of Apple

Customers
Apple considers customers as its top stakeholders. The main expectation of customers is to have
an effective and efficient product to a reasonable price, but apple has a higher price point,
however it is acceptable due to the high quality of Apple products. It also has environmental
programs for recycling and responsible sourcing to address customers’ demands for business
sustainability (Panmore Institute, 2017).

Employees
From stakeholders of Apple second priority goes to employees. Employees are important
because they directly determine Apple’s human resource capabilities to innovate and develop
new profitable products (Panmore Institute, 2017).

Investors
Investors are normally interested on maximizing returns for their investments. Apple effectively
satisfies the interest of investors because it’s a one of the most profitable business in the world,
also it has a strong financial position to fulfill the responsibilities towards investors (Panmore
Institute, 2017).

Employees of suppliers and distributors

Employees of suppliers and distributors are indirect stakeholders of Apple, but the interest of
them is similar to the interest of Apple’s own employees, such as job security, proper
compensation etc. Apple has a supplier code of conduct to address these interests. The company
monitors and imposes requirements on the employment practices of firms in its supply chain
(Panmore Institute, 2017).
 Amazon
Introduction
Amazon.com is an Internet-based enterprise which acts as a middleman between other retailers
and customers, Amazon has millions of customers (Hall, 2018). It is found by Jeff Bezos in
1995. First it sold only books, but Bezos had a vision for the company’s explosive growth and
ecommerce domination (Hartmans, 2018). Today it sells many items such as,

1. Books
2. Music’s
3. Movies
4. Housewares
5. Electronics
6. Toys

Size, scope and legal structure of Amazon

Size of an enterprise is based on some factors such as number of employees, sales revenue,
annual profit etc. Amazon is a large scale enterprise, it can be proved by below factors,

1. Number of employees-798,000 (Statista, 2018).

2. Sales revenue-280.5 Billion USD (Statista, 2018).
3. Profit- 11.59 billion USD

Amazon is a public limited company, this 24 year old company surpassed Microsoft as the most
valuable public company (Novet, 2019).
Vision, Mission and Objectives of Amazon

Vision
Vision statement of Amazon is “to be Earth’s most customer-centric company, where customers
can find and discover anything they might want to buy online.” Vision statement of Amazon
clearly shows its main aim to be the best e-commerce enterprise in the world (Panmore Institute,
2019).

Mission
Mission statement of Amazon is “We strive to offer our customers the lowest possible prices, the
best available selection, and the utmost convenience.” From this statement company focuses on
various price selection and convenience (Panmore Institute, 2019).

Objectives of Amazon
1. Satisfaction of the existing customers and attracting the new customers
2. The increasing of the market share and growth of the revenue 
3. Introducing innovations and developing new acquisitions
4. Developing the international markets
5. Development of the relations with partnering companies (Anon, n.d.)
Organizational structure of Amazon
Amazon has developed a hierarchical structure due to the immense size of the business. We also
can see a Centralized wide span of control at Amazon (Dudovskiy, 2018).

CEO

Senior vice president,

CEO of world consumer General counsel and
secretary

CEO of Amazon web services Senior vice president,

Worldwide corporate affairs

Senior vice president, prime video Senior vice president,

and Amazon studios Worldwide advertising

Senior vice president, devices and Senior vice president, Human

services resources

Senior vice president & Chief

Executive assistant to the CEO
financial officer

Figure 3-Organizational structure of Amazon

 Stakeholders of Amazon
Customers
Social responsibility strategy of Amazon gives the highest priority to the customers as the most
important stakeholder group. The interest of this stakeholder group is fair price, convenience of
service and online security in transaction with company. Amazon satisfies all these
responsibilities toward the customers (Panmore Institute, 2017).

Employees
Amazon values employees as significant determinants of organizational performance and
corporate social responsibility policies and programs. Employees are interested on compensation
and career development. Amazon has an appropriate compensation policy based on the
organization’s high growth potential to satisfy the interest of these stakeholders (Panmore
Institute, 2017).

Communities
Amazon maintains a social responsibility program for communities. They are also an important
group of stakeholders because they influence the perception of consumers on company’s goods
and services. The interest of this group is development support, such as through education,
healthcare and environmental conservation (Panmore Institute, 2017).
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