Understanding Business Organizations and Their Environment

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Programme title Pearson Higher Nationals in Business
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Unit(s) Unit 1: Business and the Business Environment
Assignment title Understanding different types of organizations in different perspectives and analyze the link
between organizational structure and the functions.
Student’s name C.M. Dilangi Shamindika Chandrasekhara
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LO1 Explain the different types, size and scope of organizations
Pass, Merit & Distinction P1 P2 M1 D1

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LO2 Demonstrate the interrelationship of the various functions within an organization and how they link to
organizational structure
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LO3 Use contemporary examples to demonstrate both the positive and negative influence/impact the macro
environment has on business operations
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LO4 Determine the internal strengths and weaknesses of specific businesses and their interrelationship with
external macro factors.
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Business environment for (HND BM) C.M.D.S. Chandrasekara

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Pearson
Higher Nationals in
Business
Unit 01: Business and Business Environment
Assignment 01
TABLE OF CONTENTS
01.WHAT IS BUSINESS ORGANIZATION...
02. CLASSIFICATION OF BUSINESS ORGANIZATION
2.1. Different types of organizations
2.1.1. private sector
2.1.2. public sector
2.1.3. voluntary sector
2.1.4. charitable/non profitable
03.ORGANIZATION INTRODUCTION
3.1. Private sector
3.2. Public sector
3.3. Voluntary sector
 History, vision, mission, and objectives

 Products and service portfolio
 Size and scope of the organization
 Stakeholders of the organization
 Legal structure
04.
05. FUNCTIONS AND ORGANIZATION STRUCTURE
What is organization functions?
What is organization structure?
5.1. private sector organization (functions and structure)
5.2. public sector organization (functions and structure)
5.3. volunteer sector organization (functions and structure)
01.WHAT IS BUSINESS ORGANIZATION
BUSINESS IS:
An entity which is carrying commercial enterprise, marketplace/market space by providing
goods or services, to meet needs and wants of the customer with the aim of earning profit of or
not enhancing basic essential requirement to services as a social well-being human.
Business organization is a group or a unit of people working together with a common objective
of profit maximization. Business organization must satisfy needs and wants of their customers in
order to be successful on the market. Also, the success of a business activity will depend on
supplying a product or service that customers need and want to buy.
WHAT IS A NEED?
A need is something that is necessary for an organism to live a healthy life. Needs are
distinguished from wants. In other words, a need is something required for a safe, stable and
healthy life while a want is a desire, wish or aspiration. (e.g. air, water, food, land, shelter) Basic
needs such as air, water, food and protection from environmental dangers are necessary for an
organism to live. Needs are limited and do not change over time and needs are very essential for
survives.
WHAT IS A WANT?
A want is something which we would like do not need to survive. Wants are unlimited,
uncommon and its change over time and basically its unnecessary but desired or items which
increase the quality of living. Examples include a car stereo, cars and designer clothes.
Depending upon what a person defines as a need or a want will influence a person final decision.
BUSINESS ENVIRONMENT:
Business environments include those internal and external factors that affect a company’s
operation. It includes strengths, weakness, internal power relationship, orientation of the
organization, economic, demographic, global, nature, clients and supplies, technological
development, laws and government activities.

And there are two types of business environment.
Internal environment
External environment
INTERNAL ENVIRONMENT
The controllable environment to the organization (Including employees, CEO, director,
managers). And it consists of an organization’s components like present employees, management
structure and above all corporate culture-defining employee behaviour. Some of these elements
affect the organization totally while some affect only the manager. There are some important
factors that are followed by internal environment likewise the Culture, Vision Mission and
Objectives, power structure, top management structure, human resource etc.
EXTERNAL ENVIRONMENT
External environment uncontrollable environment to the business organization. This refers to
external factors outside and the business organization influencing the functioning of the business.
There are two types of external environment.
A. MICRO ENVIRONMENT
B. MACRO ENVIRONMENT
MICRO ENVIRONMENT
Macro environment is controllable to the organization up to some extent. There are some
factors that affect the microenvironment: Supplies, customer, competitors, public perception,
financiers, trade unions, agents.
MACRO ENVIRONMENT
Otherwise called as general environment, macro environment affects the entire industry and the
firm specifically. That is why these factors are completely uncontrollable in nature. The firm
needs to adapt itself according to the changes in the macro environment, so as to survives and
grow. It includes PESTLE. And its stand for Political, Economic, Social, Technological, Legal
and Environmental factors. It allows a company to form an impression of the factors that might
impact a new business or industry.
02. CLASSIFICATION OF BUSINESS ORGANIZATION.
DIFFERENT TYPE OF ORGANIZATION.
An organization is a group of people, such as a foundation or an academy that worked together to
accomplish multiple goals and is associated to an external environment. There are different types
of organization, some organization formed to earn income for its owners but some other
organization which called non-profits are worked for public purposes. There are four main types
of business organization such as:
PRIVATE SECTOR
PUBLIC SECTOR
VOLUNTARY SECTOR
CHARITABLE / NON-PROFITABLE
PRIVATE SECTOR ORGANIZATION:

Private sector organization operated and owned by the private individual instead of government
and usually aimed to make profit for its shareholders. Around the world most business activities
are in private sectors. Some of well-known private sectors organizations are: Coca cola, Google
and Amazon. There are some types of private sector such as:
SOLE TRADER
PARTNERSHIP
COMPANIES (Joint stock companies)
COOPERATIVE
OTHER FORMS (Franchisee, Franchiser)
SOLE TRADER:
It is a business owned, incorporate and sustained by one person. The proprietor can employ
others for conducting and managing the business. It bears an unlimited liability towards the
business debts. A sole proprietorship is the simplest type of business to set up or take apart,
expected to a lack of authority law. Such as, these sorts of business are very widely held among
sole owners of business, individual self-contractors and consultants. Many sole proprietors do

business under their own names because creating a business or trade name isn’t necessary. E.g.,
Consultants, Professionals, saloon, Book shop (By Twin, September 10,2021)
ADVANTAGES OF SOLE TRADER
 Affordable and simple
The advantage of a sole proprietorship are easiness and affordability, specifically when
listing with own. But there are few things you need to choose before you register as a sole
trader.
 Complete control
As a sole owner of your business, you have full control over it
 Simpler income tax
Taxes as a sole trader also counted as self-employment taxes, are lot humbler. As a sole
trader, there are several tax benefits that come with small business contributions.
 Total privacy
A sole trader is as simple as it gets in terms of business formation. It’s a one owner doing
the decisions, taking liability, and managing all qualities of the business. For many small
business holders, this is perfect as there isn’t the risk of disagreement between owners of
organizations or partnerships. Simply put, a sole trader isn’t at risk of losing control.
 Fewer fixed overhead
as a sole trader your start-up costs are minimal if anything at all
 Less paperwork
With a sole proprietorship you do not need to fill out a tremendous amount of paperwork,
such as registering with your state. You may need to obtain a license or permit,
depending on your state and type of business. But less paperwork allows you to get your
business off the ground faster.
 Organizational flexibility
A big advantage of being a sole trader is the flexibility it offers. Freedom and flexibility
of operating your business as a sole trader are involved in this business formation. The
method of joining as a corporation is longer and pricier, and business operation as an
integration business are also more problematic.
We will now drill down into some of the potential drawbacks and so-called disadvantages
of being a sole trader:
 No liability protection
Among the downsides of this type of business unit is personal liability. You are solely
responsible for all financial aspects of your business. This means all debts and any legal
process fall on your shoulder. This put your personal money at risk as your personal
assets are revealed.
 Potential credibility issues
(For whatever reason a sole trader business doesn’t carry with it the perceived prestige of
a limited company)
 Sole responsibility
(On the one hand having full control of your business is a big advantage of the sole trader
life and on the other hand it means that you’re responsible and accountable for
everything)
 Lack of financial control and difficulty tracking expenses
Because financial accounts aren’t typically required as a usual part of doing business and
one person performs the role of accountant, director, marketer, and planner all in one,
sole trader sometime find themselves allowing economic business contract slides. This
can cause a signification shortage of financial control and risk mixing these transactions
with own income, making keeping track of payments a challenge.
 Raising capital can be challenging
While sole trader start-up expenses are down, struggle raising capital can limit increase
and perhaps even run you in the red for a little while. Because you’re personally liable for
business arrears, it’s also your concern to foot the bill for sellers, overhead and labour
costs, and so on. This is one of the major disadvantages of sole trader as business owner’s
personal resources are limited or strapped up in the business.
 Final thought
Given many people who decide not to work as sole traders choose to set up a limited
company instead you might find it useful to see how these two business structures
measure up against one another in our sole trader vs limited company

PARTNERSHIP
A partnership is an arrangement between two or more people to oversee business operation and
share its profits and liability. There are several types of partnership arrangement. In a partnership
business, all partners share liabilities and profits equally while in other partners may have limited
liability. There is the so-called ‘silent partner’ in which one party is not involved in the day to
day operation of the business. (By carol, September 7, 2021). There are also have some
partnership deeds. Partnership deed is an agreement between the partners of a firm that outline
the terms and conditions of partnership among the partners. It specifies the various terms such as
profit/loss sharing, salary, interest on capital, drawings, admission of a new partner in order to
bring clarity to the partners.
ADAVANTAGES OF PARTNERSHIP (by bruna, August 06 2021)
 Bridging the gap in skill and knowledge
team up with someone can give you access to a larger variety of capability for different parts of
your business. A good quality partner may also bring capability and experience you may be
lacking, or opposite skills to help you grow up the business.
 More cash
A prospective partner can bring a combination of cash into the business. The person may also
have more considered connections than you do. This may help your company entice potential
shareholders and bring up more capital to raise your business.
 Cost saving
Having a business partner can let you to share the financial responsibility for costs and capital
expenses needed to continue the business. This could result in more large savings than by going
it on your own.
 More business opportunities
One of the benefits of having a business partner is splitting the labour. Having a partner may not
only make you more creative, but it may provide you the comfort and flexibility to carry out
more business chances. It might even remove the drawback of opportunity rates.
 New perspective
Its easy to have blind spots about the way we operate our business. A joint venture can bring in a
set of new eyes that can make easier us spot what we may have missed. It may help us embrace a
new point of view or achieve a unique mindset about what we do, who we do business with,
what markets we engage in and even how we price our products and services.
DISADVANTAGES OF PARTNERSHIPS
 Liabilities
In adding up to sharing profits and properties, a partnership also means sharing any business
damages, as well as liability for any debts, even if they are incurred by the other partner. This
can place a problem on your own finances and assets. Essentially, your partner creates in relation
with business.
 Loss of autonomy
While you tend to enjoy being in total management of your business, in a partnership, you would
now split control with partner and important ruling would be made together.
 Emotional issues
A host of matters can face that make performing with a partner complicated. For example,
disagreement can arise from differences of view or from unequal energy put into the business.
One partner may not drag his or her own weight. Relationship can go bad. Don’t overlook the
emotions in weighing the advantages and the disadvantages of a partnership.
 Future selling complications
As situations change in the upcoming, you or your partner might wish to sell the business. This
could cause complications if one of the partners isn’t concerned in marketing. You can do
business with such a consequence by involving an exit strategy in the partnership.
 Lack of stability
When balancing the advantages and disadvantages of a partnership, you also need to consider if
you’re able to cope with unpredictability. Even if you have solid exit strategy in your partnership
agreement, the change triggered by a partner’s situation can cause instability in the business.
COMPANIES/JOINT STOCK COMPANIES

The modern corporation has its origins in the joint stock company. A joint stock company is a
business owned by its investors, with each investor owning a share based on the amount of stock
purchased. Joint stock companies are created in order to finance endeavours that are too

expensive for an individual or even a government to fund. The owners of a joint stock company
expect to share in its profits. There are two types of joint stock companies.
PRIVATE LIMITED COMPANIES (PVT, LTD)
PUBLIC LIMITED COMPANIES (PLC)
PRIVATE LIMITED COMPANIES

A private company or LTD is a type of privately held small business entity. This type of business
entity limits owner liability to their shares, limits the number of shareholders to 50 and restricts
shareholders from publicly trading shares. Also, there are less government in the private limited
company. Let’s look at some the advantages of having a private limited company. (Ramani,
company law-article)
 Limited liability
(One advantage of owning a private limited company is that the financial liability of
shareholders is limited to their shares)
 Continued existence
(Its continued existence, even after the owner dies or leave leaves the business)
 Restricted trade of shares
(Shareholders who want to sell shares cannot sell them to outside buyers)
 There are some requirements like; share capital, company accounts (shareholders can see
the performance of the company) and registered office.
 A company has perpetual succession that is continued or uninterrupted existence until it
is legally dissolved.
 It is easy to fetch funding in a private limited company by transferring of shares.
DISADVANTAGES OF A PRIVATE LIMITED COMPANY

One of the main disadvantages of a private limited company is that it restricts the transfer ability
of shares by its articles.in a private limited company the number of members in any case cannot
exceed 200. Another disadvantage of private limited company is that it cannot issue prospectus
to public. In stock exchange shares cannot be quoted. (Ebizfiling.com)
Brandix Sri Lanka, David Pieris motors, John keells, Unilever are some of private limited
companies in Sri Lanka.
PUBLIC LIMITED COMPANIES
A public limited company is a voluntary association of members that are incorporated and
therefor has a separate legal existence, and the liability of whose members are limited. Public
limited companies are listed on the stock exchange where its share/stocks are traded publicly.
Cargills (Ceylon) PLC, Bank of Ceylon, Hayleys, Distilleries company of sri Lanka are some of
public limited companies. Let’s see some advantages of having a public limited company.
(Written by Korchak, company formation on nov 25, 2016)
ADVANTAGES OF PLC
 Raising capital through public issue of shares
The most obvious advantages of being public limited company is the ability to raise share
capital, where the company is listed on a recognised exchange. Since it can sell its shares
to the public and anyone is able to invest their money, the capital that can be raised is
typically much large than a private limited company. Its also possible that having stock
listed on an exchange could attract investment from hedge funds, mutual funds and other
institutional traders.
 Widening the shareholders base and spreading risk
Offering shares to the public gives the opportunity to spread the risk of company
ownership among many shareholders. This may allow early investors in the company to
sell some of their own shares at a profit while still retaining a substantial stake in the
company.
 Other finance opportunities
As well as share capital, a public limited company will often find itself in a better
position when looking at other potential sources of finance. The demands of being a
public limited company and maintaining a stock exchange listing, for example, can help
to improve a company’s credit worthiness when issuing corporate debt and therefor
reduce the return the company needs to offer investors.
 Growth and expansion opportunities

The value of being able to raise finance is in how it can be employed to serve the
business. By having more finance potentially more readily available and on better terms
than a private company.
 Prestigious profile and confident
Whether deserved or not, having ‘plc’ at the end of the company name can add standing
and prestige. There is a sense of status about a public limited company that its private
company counterpart just doesn’t quite have, which can affect how the business is
viewed. While often more imagined than real, this perception of being more established,
larger or more powerful can affect the behaviour of customers, suppliers and employees.
DISADVANTAGES OF PLC
 More regulatory requirements
to help protect shareholders, the legal and regulatory requirements for a public limited
company are more onerous than for private limited companies.
 Higher levels of transparency required
Limited companies, whether public or private, have more of their details in the public
domain, available via company’s house, than other business types. But the required level
of transparency is much higher for public companies.
 Ownership and control issues
with a private limited company, the shareholders will typically be people known to the
directors or founders. A private company will often be selective over who to admit as a
shareholder, ensuring they support the vision and plans for the business. The use of pre-
emption rights can allow existing shareholders to maintain control over the company
when a new share issue is undertaken, a shareholder dies or wants to transfer their shares.
 More vulnerable to takeovers
At worse a company can become vulnerable to a tough takeover if a mainstream of
shareholders agrees to an offer. With shares being freely manageable a potential
purchaser can build up a shareholding in advance of marketing a sought attempt.
 Short termism
Where a public limited company is catalogued there can be added pressure required by
the market. The company’s share price signifies the value of the company as viewed by
the market and shareholders will usually look forward to a strong pay back. As well as
shares paid from proceeds, there will be a yearning for the share price to improve.
COOPERATIVE
When a company is owned and operated by the people who use its products and services and
who benefit from what the company has to offer, its known as a cooperative. Aside from the
ownership structure, there are a few other distinct features that set cooperative apart from other
types of business.
Example for cooperative
 Agriculture cooperative
 Business cooperative
 Childcare and preschool cooperative
 Housing cooperative
 Insurance cooperative
 Student cooperative
 Utility cooperative
 Worker cooperative
FRANCHISE/FRANCHISOR
A franchise or franchising is a method of distributing products or services involving a franchisor,
who establishes the brand’s trademark or trade name and a business system, and a franchisee
who pays a royalty and often an initial fee for the right to do business under the franchisor’s
name and system. Technically the contract binding the two parties is the ‘franchise’, but that
term more commonly refers to the actual business that the franchisee operates. The practice of
creating and distributing the brand and franchise system is most often referred to as franchising.
(For an example KFC parent company is in USA and in Sri Lanka it owned by Cargills, and

USA McDonald is owned by Abans company in Sri Lanka). Let’s look at for some advantages
and disadvantages franchisee.
ADVANTAGES OF FRANCHISEE
 Franchisor support
(The franchisor will provide helpful support and training along the way, which makes the
experience comparatively easy)
 No need for business experience
(As a result of the franchisor support, it means the franchisee needs little business
experience because they will be taught)
 High success rate
(It is said that around 90 precent of franchises succeed and make profit, whilst the failure
rate of new business is 60 precent within the first three years)
 Establish brand
(A franchisor is paying for an established brand. With that, it means it doesn’t have to
worry about marketing expenses or brand exposure)
 Ease of credit
(By owning a franchise, the franchisee is a part of an established brand that works)
DISADVANTAGES FRANCHISEE
 Restricting regulations
(While a franchise allows the franchisee to be their own boss, they’re not entirely in
control of their business, nor can they make decisions without considering the opinion of
the franchisor)
 Initial cost
(While the initial investment of the franchise fee buys a lot of benefits for the franchisee,
it can also be costly, especially if you’re joining a very well-known and profitable
franchise)
 Ongoing investment
(In addition to the initial investment you’ll have to provide to start your franchise, there
are additional, ongoing costs that are unique to franchises)
 Lack of financial privacy
(The franchise agreement will likely stipulate that the franchisor can oversee the entire
financial ecosystem of the franchise)
 Potential for conflict
(While one of the benefits of owning a franchise is the network of support you receive; it
also has the potential for conflict)
ADVANTAGES OF FRANCHISOR
 Capitalize expansion
(Expansion requires the investment of capital and resources that for many successful
business owners is limited and, sometimes difficult to raise)
 Continuing revenue streams
(Successful franchisors benefit from continuing royalties that are, typically, based upon a
percentage of franchisee gross sales and paid on a monthly basis)
 Brand development
(The multi-unit expansion associated with franchising serves to supplement and expand
the value of your brand)
 Economic of scale
(If managed properly the multi-unit expansion associated with franchising results in
increased volume purchased and leverage with business suppliers and vendors)
DISADVANTAGES OF FRANCHISOR
 Legal regulation
(Franchising is a regulated activity and requires compliance with federal and state
franchise laws)
 Cost maybe higher than you expect
As well as the initials cost of buying the franchise, you pay continuing management
service fees, and you may have to agree to buy products from the franchisor.
 All profits are (a percentage of sales) are usually shared with the franchisor.

PUBLIC SECTOR ORGANIZATION
Public sector organization is operated and owned by the government for the people of the state.
Source of funding for this sector usually raised through public taxes, fees and through financial
transfer from central government to local government. Example of public sector are: Airport and
aviation service, associated newspapers of Ceylon, Building materials corporation, Ceylon
fertilizer company. Though there are variation from one country to another, the public sector
normally includes such service as the military, police, public transit, infrastructure care, public
education, health care and of course government itself. Let’s look up for some advantages and
disadvantages of public sector companies.
ADVANTAGES OF PUBLIC SECTOR

 They base their decisions on the full costs and benefits involved.
 They can be used to influence economic activities. To boost the country’s output,
public corporation can be directly encouraged to increase their output.
 In cases where it is practical to have only one firm in the industry, such as rail
infrastructure, a public corporation would not abuse its market power.
 Ownership of a whole industry by the government makes planning and
coordination easier. For instance, if the state runs the train system, it can ensure
that train timetables are coordinated.
 It is important to ensure that basic industries, such as electricity and transport
survive, charge low prices and produce good quality as other domestic industries
depend on them.
DISADVANTAGES OF PUBLIC SECTOR

They can be difficult to manage and control. The large size of the organisations may mean that
time must be spent on meetings and communicating with staff, slowing down decision making.
They may become inefficient, produce low quality products and charge relatively high prices,
due to a lack of competition and the knowledge that they cannot go bankrupt.
They will need to be subsidized if they loss making. The use of tax revenue to support them has
an opportunity cost. It could be used to spend on, say, training more teachers and nurses.
(yourarticlelibrary)
VOLUNTARY SECTOR
The voluntary sector (also known as the third sector, non-profit sector and community sector) is
usually comprised of organizations whose purpose is to benefit and enrich society, often without
profit as a motive and with little or no government intervention. Unlike the private sector where
the generation and return of profit to its owners is emphasized, money raised or earned by an
organization in the voluntary sector is usually invested back into the community or the
organization itself.
Examples of organization in the voluntary sector include:
 Charities: world vision, American red cross, YWCA
 Foundation: David Suzuki foundation, bill and Melinda gates foundation
 Social welfare organization: human right watch, environment protection agency
 Advocacy groups: privacy international, world wildlife fund
 Faith- based organization: churches, mosques, temples
 Community groups: neighbourhood watch, knitting
ADVANTAGES OF VOLUNTARY SECTOR

Social enterprises provide an opportunity for local people to gain employment.
Social enterprises bring a positive change to people and communities they’re not just driven by
profit.
Charities raise awareness of (and raise funds) for a particular cause.
Voluntary organisations provide opportunities. For example, clubs and sporting activities in local
areas.
DISADVANTAGES OF VOLUNTARY SECTOR

Social enterprises must compete in the commercial market and so face the same challenges and
risk common to all business.
Charities and voluntary organizations usually depend heavily on unpaid volunteers and workers.

Those with a paid role in 3rd sector usually earn less than they would if worked in private or
public.
Charities and voluntary organisations depend heavily on the generosity of the community for
finance.
CHARITABLE/NON-PROFITABLE ORGANIZATION
Charitable organization is a nonprofitable organization that seeks to advance some public
benefits. Public benefits include a board range of areas such as education, poverty alleviation,
scientific research, environment, diversity, religion, and health. For examples: Support Sri Lanka
Foundation, Shanthi Community Animation Movement, Sri Lanka Charities, Asia Pacific
Advanced Network, Janasarana.
ADVANTAGES OF CHARITIES
 Charities do not generally have to pay income/corporation tax
(In the case of some types of income), capital gains tax, or stamp duty and gift to charities
are usually free of inheritance tax.
 A charity pays no more than 20% of normal business rates on the buildings which they
use and occupy to further their charitable purposes- in many cases the local authority will
award, upon application, the additional 20% as a further relief, giving 100% rates relief,
as part of this, we are seeing more and more landlords with surplus property renting to
charities at peppercorn rents, to obtain rates relief.
 A charity can get special VAT treatment in some circumstances. Many think charities are
exempt from VAT, but this is not the case.
 Charities are often able to raise funds from the public, grant-making trusts and local
government more easily than non-charitable bodies.
 Charities can reclaim gift aid on many of the donations received from private individuals.
(Loggie, 2017 July 11)
DISADVANTAGES OF CHARITIES
 A charity must have exclusively charitable purposes. Some
organisations may carry out a range of activities, where only some of them are charitable
activities. In general, to meet the charity test and register as a charity, the organisation would
have to stop its non-charitable activities, subject to certain types of charitable trading which are
allowed.
 There are strict rules that apply to trade by charities. Guidance on this
can be found in the charity commission’s guidelines for charities and trading (CC35).
If incorporated as a company limited guarantee will be dealing with two regulators- OSCR and
Companies house.
 Trustees are not allowed to receive financial benefits from the charity
which they manage unless this is specifically authorised by the governing documents of the
charity or by OSCR, and no more than 50% of trustees in number can be remunerated.
 Trustees need to avoid any situation where charitable and personal
interest conflict. (Loggie, 2017 July 11)
03.ORGANIZATION INTRODUCTION
Organization discusses to a way in which the factor of an enterprise is set into working order, to
accomplish the objectives of the firm. Organization is born when more than one person co-
ordinates to organize a work, such as a person transient bundles to another one to have them in
order.
3.1. PRIVATE SECTOR

Organisations are owned by individuals. These businesses are driven by profit. The profit from
private sector organizations benefits the owners, shareholders and investors.
BRANDIX SRI LANKA PVT.
INTRODUCTION
Brandix apparel limited is an apparel manufacturer headquartered in Sri Lanka. It considered to
be the leading apparel manufacturing firm in the country. The company has branches in India,
Bangladesh, and the United States. Brandix has a crucial role in the Sri Lankan economy by
being the main contributor to the Gross Domestic Production. It is the single largest employer in
Sri Lanka’s export sector and the highest foreign exchange earning fashion company.

3.1.1. HISTORY
Brandix was founded in Sri Lanka in 1969 with the assistance of Martin Trust, an American who
is regarded as the father of modern apparel industry in Sri Lanka. The company began operations
in 1972 as a conglomerate which was formally a part of Omar Group. The business was
incorporated as a private limited company in 2002 under the companies Act No 7 of 2007 as
Brandix Pvt Ltd. In 2008, the firm opened a branch in Seeduwa and the branch of the Brandix
firm secured the world’s first LEED (Leadership in energy and Environment Design) platinum
certification. The company is headquartered in Colombo and has domestic branches in Seeduwa,
Mirigama, Batticaloa and Pannala.
In 2009, the company was recognised by the Ceylon Chamber of Commerce as one of the top 10
best corporate companies in the country. Brandix also became the first apparel firm in the world
to obtain the ISO ISO 50001 standard system certification scheme in 2011. The company has
also shown significant interest toward sustainability and the company has also aimed to reach
100 percent carbon neutrality by 2023 as a part of sustainable development programme. In June
2019, the Batticaloa branch became the first factory in the world to achieve Net Zero Carbon
status. Brandix Sri Lanka Group received the exporter of the year award at the 2018/19 National
Export Awards from the Export Development Board.
Ashroff Omar is the company’s CEO. The Brandix group is one of the leading apparel
manufacturers in South Asian region. With a vision to be ‘THE Inspired Solution for Branded
Clothing’. Founded in Sri Lanka in 1969 the company started their first factory in 1972 with just
10 sewing machines. Firmly anchored to their roots in Sri Lanka. They have since then expanded
rapidly, extending their reach within the country as well as overseas, employing over 41,000
workers across 28 factories in Sri Lanka. 05 in India 01 in Bangladesh.
3.1.2. VISION
The Brandix Group, one of the leading apparel manufacturers with a vision to be ‘THE Inspired
Solution for Branded Clothing’. We believe that organizations such as Brandix are instrumental
in addressing some of the pressing challenges facing our environment today. The sustainability
journey commenced over a decade ago and since then, we continue to establish world class
benchmarks for other manufacturing organizations, consistently being at the forefront of efforts
to adopt best practices for sustainable manufacturing.
MISSION
As a leading apparel solutions provider in Sri Lanka, their mission is to help people and
organizations do meaningful business with one another, efficiently & efficiently, using the most
appropriate (and suitable) technologies, in an electronic world.
Brandix have been providing inspired solutions to renowned brands across the world for 40
years. Our vertically integrated supply chain, expanding global network of manufacturing and
operating locations, an inspired employee base and infrastructure have helped us deliver millions
of garments to our customers. Combining this with our expertise in product innovation, research
and development, unparalleled speed in delivery and unwavering commitment to delivering a
phenomenal product has helped ingrain Brandix as a leader in the apparel arena.
It aims to increase women’s workforce participation in Sri Lanka’s private sector, create more
and better jobs for women, and has the potential to increase company profits and drive overall
economic growth. At Brandix, their sincere intention is to foster and provide an inclusive work
environment for employees, giving them the confidence to realise their full potential, both
professionally and personally.
3.1.3. PRODUCTS AND SERVICE PORTFOLIO

FUNCTIONS
o Fabric knitting
o Apparel manufacturing
o Apparel washing and dyeing

o Fabric printing Casual
under
bottoms
o Apparel design wear
PRODUCTS
Bras
Intimate
apparel
Lounge &
sleepwear
 GARMENTS PRODUCED
317 Mn. Pieces
 REVENUE
782 Mn. USD
Global Presence
01. Sri Lanka – headquarters
02. India – Brandix India Apparel
03. Bangladesh
Major Markets
04. USA
05. Europe
06. UK
07. China
08. Japan
The category portfolio includes woven bottoms, pyjama pants, jeans jackets and coloured jeans.
Adept at keeping stride with customer expectations. Brandix group companies include Brandix
Textiles, Brandix casualwear, Brandix intimate apparel, Brandix essentials/ Brandix apparel
India comfort wear, Brandix hangers, finishing Brandix college of technology. ‘An organization
is the sum of the people employs’ the Brandix culture not only aligns associates with corporate
goals, but it also moulds their philosophy of work and therefor life. Changing mindset positively
takes great care and time but its value is inestimable. As well as encouraging associates to
becoming customer focused, incorporating speed, flexibility, innovation, and passion into their
work allows them to think more productively and perform for results. Brandix India apparel city
Brandix India apparel city (BIAC) is a revolutionary development in the apparel industry; a
unique, integrated apparel supply chain city, managed by Brandix Lanka Ltd. Spread over 1000
acres in the port city of Visakhapatnam in the eastern state of Andhra Pradesh, it brings alive an
Avant Garde ‘fibre to store’ concept. BIAC will bring together world class apparel chain partners
from the design table to consumer brands in flawless integration. The size and scope vary for
different organizations according to a few different factors. Brandix is Sri Lanka’s single largest
apparel exporter with an annual turnover exceeding $600 million. The company employs over
43,000 associates supported by 38 manufacturing facilities in Sri Lanka, India, and Bangladesh.
Sustainability is embedded in every aspect of the activities, systems, and processes across
Brandix. The report also summarises the management approaches, policies and procedures that
underpin the actions, offering quantitative and qualitative information on how Brandix is
systematically addressing key environmental, social and governance (UNGC) issues.
3.1.5. STAKEHOLDERS OF THE BRANDIX SRI LANKA

At Brandix the strong and effective communication with the stakeholders is of paramount
importance. In this context, continued stakeholder engagement through a mutually beneficial and
transparent process allows to the company to obtain valuable perspectives and expertise.
Connecting with the stakeholders through different channels across global operating locations
enables us to identify emerging priority issues and risks, with an avenue of further strengthening
organization strategies for greater positive impacts.
Let’s investigate the stakeholders in Brandix and how they engage with them.
 Employees
Gives them a great place to work survey, employee’s satisfaction surveys, performance reviews,
skip level meetings, T&D activities, open door policy at all management levels and employee
council meetings, intranet communications through brand net/ success factors and email/ social
media. These things are included when they are engaging with the employees.
 Regulatory Bodies
Meetings and correspondence with local authorities, municipal councils, and institutions such as
BOI, customs department etc.

 Community
Project wise corporate social responsibility programmes.
 Banks and Financial institutions
Meetings, emails, phone/ conference calls.
 Government
Advisory meetings and business forums.
 Media
Brandix website, social media, press release, certifications, and accreditations.
 Suppliers
Key supplier audits, RM supplier self-assessment, performance, and delivery KPI reviews,
management level meetings, supplier onboarding/ supplier production and quality meetings.
 Customers
Vendor summits, customer feedback surveys, in person meetings- Brandix customer leadership
teams, meetings emails, phone/ conference calls and meeting with leadership/ management
teams, product & design development reviews and customer touchbases.
3.1.6. LEGAL STRUCTURE

Strong governance also ensures that the business activities meet local laws and regulations, and
that the group acts in accordance with professional and ethical standards in order to achieve
sustained, healthy, and long-term growth.
Companies’ governance framework integrates processes and structures implemented by the
board to inform, direct, manage, and monitor the activities of the organization toward the
achievement of its objectives. We use the ‘Three Lines of Defence Model’ in structuring
governance risk and control responsibilities across the business, with the board of Directors
being the ultimate authority providing oversight for each of the three lines of defence.
At the core of the group’s governance structure is a strong, effective and qualified board od
directors, who are committed to maintaining rigorous corporate governance, sound internal
control and a structured Risk Management framework to earn the confident of our employees,
customers and the community.
3.2. PUBLIC SECTOR
Public sector organizations are owned by the government. They provide goods and services for
the benefit of the community. They run by the government. They operate with money raised
from taxes.
CEYLON SHIPPING CORPORATION (CSC)
INTRODUCTION
Sixth of June 1971 was historical day for the contemporary shipping industry of Sri Lanka, when
the country’s legislatures gave the nod to establish Ceylon shipping corporation as a fully
government owned commercial enterprise. Infant national carrier under the brand name of CSC
grew from strength to strength and earned the credibility as a dependable carrier from Europe to
Fareast and North of India to Australia. CSC helped many non-traditional exports produces to
enter global markets and establish footholds when the freight was a prohibitive factor and sailing
opportunities were minimal at the time. In 1992, government of Sri Lanka conferred more
commercial independence to CSC enabling her to respond to market forces more quickly, by
converting the corporation into a limited liability company Ceylon shipping corporation Ltd.
Government of Sri Lanka still fully owns CSC being one of the strategically important state
entities for the island nation. CSC was the first South Asian carrier to start container services
from south Asia to Europe in 1980. CSC was a key partner in the progress and modernization of
Colombo port as the premier container hub port in the South Asia in late 1970s. CSC has been
developing much needed human resources for the shipping industry of the country being the
Alma Mator for many shipping experts and seafarers.
3.2.1. HISTORY
CSCL not only has a quite a long history, but also a reputation as a dependable carrier in the
South Asia, Europe, and Far East trades. CSCL won the prestigious awards from Lloyd of
London and port of London authority as the star performer for 03 consecutive years from 1993 to
1995 and again and again in 1997 for the excellent services offered on the South Asia route from

Europe. CSC together with Sri Lanka ports authority was instrumental for introduction of
containerization to the South Asia in early 1980s before any other South Asian line. CSC and
CSCL can justifiably claim the credit for producing most of the generation of Sri Lankan
maritime experts in many fields and seafarers working in country and abroad.
3.2.2. VISION
The vision of the Ceylon Shipping Corporative is to develop a dependable and effective National
fleet of ships, shipping & logistic facilities for the country and becoming a stakeholder in the
endeavour to developing Sri Lanka as the Maritime Hub in region.
MISSION
To carter to the sea Transportation and related logistic needs of the Export, import and local
coastal trades of Sri Lanka that needs the assistance from the national carrier and provide
training opportunities for Sri Lankan seafarers to make themselves competent for employment
onboard vessels in international waters.
To be a Partner in maritime leisure, cruise liner passenger ferry activities in the Indian Ocean.
OBJECTIVES
 Towards to Trade and Customers:
To act as a facilitator of nation’s economic development by supporting anticipated economic
resurgence of the country after the end of wars by capitalizing on business opportunities in
booming economic in the region. And to satisfy customers need at least cost and time with the
highest degree of reliability.
 Toward the Country and Society:
To facilitate developing the country as the maritime hub as envisaged in the national
development agenda for the future. And to provide competitive charges for any shipping needs
of customers. As well as saving of valuable foreign exchange in carriage of government import
cargoes on freight ‘to collect in Colombo’ basis. Also continue to be a shipping and logistic
partner in country’s power generation sector. And to become a shipping partner in the country’s
energy/petroleum sector.
In the organisation to develop human resource capital of the corporation and minimize energy,
water consumption & wastage.
 In operating premises:
To take all necessary steps for minimizing environmental pollution.
To take all necessary precautions for ensuring safety of lives and properties.
 Towards the Owners:
Highest contribution to the government coffers by maximizing profits and saving much needed
and foreign exchange.
3.2.3. PRODUCT AND SERVICE PORTFOLIO

Sea transportation of any type of Cargo
Container Cargo (FCL & LCL)
Break-Bulk Cargo
Bulk Cargo
Project Cargo (machinery)
Bulk Cargo (COAL) including lightering
Non vessel operating common carrier (NVOCC)
 Total logistic service
Pickup/door delivery of Cargo, including personal baggage, from/to any location in Sri Lanka to
any location in the world. And customs clearing and forwarding and other export/import
formalities.
 Ship agency & port services
Ship agency and technical services in ports of Colombo, Puttalam, Trincomalee and Galle
Husbanding, crew changes, bunker supply, arranging surveys, arranging ship repairs.
 Ship chartering and brokering
CSCL, has its own exclusive ship brokering/chartering department with vast experience in vessel
chartering and can arrange any type of fixtures benefitting the requirement of any company
engaged in export and import trades to the satisfaction of both charterers and owners through our
worldwide contacts with many owners.
PROGRESS SINCE THE YEAR 2000 AND UP TO NOW

Transporting of coal for the Lak Vijaya power plant of CEB since 2010 as entrusted by the
cabinet decision in February 2010 (From load port to anchorage in Puttalam port & lightering of
coal from anchorage to jetty of the power station using barges). Acting as the ground handling
operator of passenger ferry service between Colombo and Tuticorin (The service was operated
from January to November 2011). And signing of a contract of affreightment for the transport of
coal with m/s PLC (shipping) Pte. Ltd, Singapore valid from Oct 2014 to April 2017. Under new
business model formulated for selection of the partner for coal transport following benefits were
accrued to CSC/Country; low freight rates, sea training billets up to 100 for Sri Lankan cadets on
progressive basis during the 3 years contract period, naming of 1 or 2 vessels being built &
owned by PLC with names of the choice of CSC, Development opportunities for CSC’s owned 2
bulk carriers to be delivered in November/December 2015 & February 2016 during monsoon
period.
3.2.4. SIZE AND SCOPE OF THE ORGANIZATION

Currently there are 130 shipping agencies and 120 freight forwarders in associations and 500+
companies registered with the Merchant shipping Secretariat (MSS) which also includes clearing
agents. Sri Lanka number of vessels arrivals: annual: port of Colombo data was reported at
4,392.000 unit in 2017. This records a decrease from the previous number of 4,405.000 unit for
2016. An act to provide for the establishment of a shipping corporation to operate services for
the transport of goods, mails and passengers by sea and to carry on business as shipowners,
charterers of ship and vessels, ship brokers, and shipping agents, to carry out the building,
maintenance, repair and overhaul of ships and vessels, to vest in such corporation the
undertaking carrying on business under the name and style of the Ceylon shipping corporation
limited, to regulate the power and duties of such corporation, and to make provision for purposes
connected with the aforesaid matters.
3.2.5. STAKEHOLDERS OF THE ORGANIZATION

Government of Sri Lanka still fully owns CSC being one of the strategically important state
entities for the island nation. CSC was the first South Asian carrier to start container services
from South Asia to Europe in 1980. Ordinary shares are classified as equity.
 Provisions and contingent liabilities
Provision for legal claim and other operational expenses are recognized when the company has a
present legal or constructive obligation as a result of a past events, it is probable that an out flow
of economic resources will be required from the company and amount can be estimated reliably.
Provisions are measured at the estimated expenditure required to settle the present obligation,
based on the most reliable evidence available at the reporting date, including the risk and
uncertainties associated with the present obligation. All contingent liabilities are disclosed as a
note to the financial statement unless the possibility of an out flow of resources is remote.
 Employee Benefits
The company has both defined benefit and defined contribution plan.
(a). Defined contribution plan
A defined contribution plan is a post-employment benefit plan under which the company pays
fixed contributions into a separate entity. The company has no legal or constructive obligations
To pay further contributions. The contributions are recognized as employee benefit expense
when they are due. The company contribution 15% on gross emoluments of employee-to-
employee provident fund (EPF) and 3% on gross emoluments of employee trust fund (ETF).
(b). Defined benefit plan
The company obligation in respect of defined benefit plan is the present value of the defined
benefit obligation at the end of the reporting period. The defined benefit obligation is measured
annually using the projected unit credit method calculated use the gratuity formula. The present
value of the defined benefit obligation is determined by discounting the estimated future benefit
that employee have earned in return for their services in the current and prior period. Gains and
losses arising from changes in the assumption, current service cost and interest are recognized in
the statement of comprehensive income in the period in which they arise. The retirement benefit
obligation is not externally funded.
3.3. VOLUNTARY SECTOR

Third sector organizations are owned and run voluntarily by trustees. These organizations are not
run by the need to help the community. They operate with money from donations and gifts. Any
profits are reinvested in the organization.

CHILDREN’S HOPE
3.3.1. HISTORY
Children’s hope is a Sri Lankan non-profit charity, establish by English article Carla Browne in
2004 after the boxing day Tsunami. 100% of funds raised by Children’s Hope go to our projects,
which support underprivileged, disabled, and vulnerable children, women, and young men in the
Galle region. Children’s Hope extensively to consult all members of the local community to
determine where the need is greatest, not what we think we should do, including parents,
teachers, doctors, community leaders, local government, NGOs, and the children themselves.
People of all ages and skills are welcome to volunteer with the organization on their projects.
3.3.2. VISION
To enrich lives and help gain self-esteem.
Children’s Hope works to ensure that these children are able to experience the childhood they
deserve and provides them with the care that is required to grow into capable and self-reliant
adults.
MISSION
‘Every Child Counts’
Children’s Hope believes that to true impact the lives of children we must ensure that they
receive holistic care; include health, education, and any other timely support. And children’s
hope believes in children regardless of their circumstances, gender, race, disability, or behaviour.
We believe in the abused, vulnerable, forgotten, and neglected. Support them and stand up for
them, to bring out the best in every child. Every child deserves the best start in life and the
chance to fulfil their potential.
OBJECTIVE
The organization aims much of their attention at the needs of children, especially those with
special needs whether those be physical, mental, or financial. The projects include support and
management Neth Sawan Sarana school for the deaf and blind, which hosts up to 60 children and
youth at any one time, rebuild and management of the children’s ward at Karapitiya Hospital as
well as free local nursery school open to children of all abilities.
3.3.3. PRODUCT AND SERVICE PORTFOLIO

Children’s Hope organization has grown to a full-time staff of 6 and many, many generous
volunteers. Their focus on children is not exclusive. They work with local families, often the
mothers, offering training and support in subjects such as household budget management in
addition to offering income generating opportunities through sale of their hand made art. This
assist the youth population (in Sri Lanka youths are about 17-24 years of age) with vocational
training, this includes the graduates of the school for deaf & blind.
Children’s Hope also home to volunteer village, an innovative sustainable program that
encourage volunteer interaction within the community as well as our specific projects. The
community also host many gap years students as well as retirees who pay a fee for room and
board while working with children’s hope. Volunteers’ village has grown full time employment,
as well as homes, 11 locals including several with special needs.
Children’s Hope run a village in Habaraduwa, 20 minutes outside Galle. Volunteer village has
seafront accommodation for up to 16 volunteers, and it also Children’s Hope HQ and a vibrant
community hub. Children’s Hope project include: supporting Neth Sarana Savana, a local school
for children with hearing, vision, and learning difficulties vocational training for the deaf, blind,
and unemployed, including professional cooking, hotel training, sewing, jewellery, and home
wear making skills. Renovating and maintaining paediatric units at Karapithiya Galle hospital,
building community housing, sex education, life and financial skills, English and IT teaching,

Taekwondo classes for local children, Running a kindergarten. Children’s Hope is an
independent, non-political, and non-religious although greatly respect the Buddhist culture in Sri
Lanka.
3.3.4. SIZE AND SCOPE OF THE ORGANIZATION

HOPE work mainly but not solely through local partners. Where they have local office as in
Uganda. HOPE has a number of projects that are implemented directly. HOPE’s particular
contribution is to support small local community projects. They aimed to enhance the capacity of
the partners, empowering them, and learning with them to build a sustainable future for the
children and communities. The charity operates with throughout England and Wales, Ghana,
India, Kenya, Philippines, Sri Lanka, Tanzania, and Uganda.

Registration history.
09 November 2012: standard registration
08 July 2021: funds transferred
08 July 2021: funds transferred to 1114933 THE RAINBOW CENTER SRI LANKA
05. FUNCTIONS AND ORGANIZATIONAL STRUCTURE

WHAT IS ORGANIZATION FUNCTIONS?
Depending on your business and nature of business, you might need to set up several
departments within your company. Production, sales, marketing, accounting, and research are
just rare examples. These business functions will keep your organization running efficiently and
maximize their achievement. Each department will involve of experts who focus on specific
parts, such as accounting, sales, or digital marketing, rather than wearing various hats. A typical
company may consist of the following main departments or functions.
 Production
 Research and Development
 Sales and Marketing
 Human Resource Management
 Accounting and Finance
 Distribution/Logistic
 Administrative
 PRODUCTION
Production function occupies the dominant position in any business activity, and it is a
continuous process. The production cycle mainly depends on the marketing function cause
production is justified when they have resulted in revenues through sales.
Production function involves heavy investment in fixed assets and working capital. A firm
control by the finance manager on the investment in productive assets becomes necessary. It
must be seen that there is neither over capitalization nor under-capitalization. Cost benefit
criteria should be the primary focus in allocating funds and therefor finance and production
managers should work in unison.
 Research and Development (R&D)
The Research and Development function id concerned with developing new products,
innovations, or processes and improving existing products/processes. R&D activities must be
closely coordinated with the organization’s marketing and sales activities to ensure that the
organization is providing exactly what its customers want in the most efficient, effective, and
economical way. However, sometimes expenditure on R&D involves a heavier amount,
disproportionate to the financial capacity of the firm and in such a case, in financially cripples
the enterprise and the expenditure ultimately ends in a fiasco. On the other hand, heavily cutting
down the expenditure of R&D blocks the scope of improvement and diversification of the
product. So, there must be a balance between the amount necessary for continuing the work and
the funds available for such a purpose.
 Sales and Marketing
These two business functions are often carried out by the same department. The role of the sales
and marketing department is to promote the business and reach out to prospects, potential and
existing partners, investors, and more. Its end goal is to generate sales and increase brand

awareness. Sales and Marketing specialists are responsible for researching the market and your
target audience, monitoring the company’s image on social media, creating advertising
campaigns, and acquiring new customers. They may also design brochures and other
promotional materials, write website content, and reach out to reporters and journalists. In
general, corporations and established organizations have separate departments for marketing and
sales. The sales department, for example, maybe divided into B2C and B2B sales.
 Human Resources
Human Resource (HR) management is one of the most important business departments for any
company with many employees. HR specialists are responsible for attracting talent, screening
potential candidates, managing employee relations, and maintaining optimum working
conditions. The HR department also needs to ensure compliance with labour and employment
laws, address employee inquiries, and solve conflicts. In many organizations, these experts
develop training programs for new employees to help them get acquainted with the company’s
culture and values.
 Accounting and Finance
The accounting and finance function in business is concerned with the following:
The financial record-keeping of all transaction involving monetary inflows or outflows.
Preparing financial statements (the income statement, balance sheet, and cash flow statement) for
reporting to external parties such as shareholders. The financial statements are the starting point
for calculating any tax due to the business profits.
Payroll administration, paying wages, salaries, and maintaining appropriate income tax and
national insurance records.
Preparing management accounting information and analysis to help managers to plan, control,
and make decisions.
 Distribution/Logistic
As goods produced are meant for sale, the distribution function is an important business activity.
it is more important cause it provides a continuous inflow of cash to meet the outflow thereof.
So, while choosing different distribution channels, media of advertisements, and sales promotion
devices, the cost-benefit criteria should be the guiding factor. If cost reduction in distribution
function is affected without compromising efficiency, it will lead to an increased benefit to the
enterprise in the form of higher profit and to the consumer in the form of lower cost.
 Administrative
This involves dealing with all administrative tasks including mail handling, dealing with
enquiries/compliment, catering, and computer services. They will also produce documents (e.g.,
forms, stationary, and newsletters) for the organization and maintain the organization’s premises
and equipment. This function although not always recognised as vital, is the glue that holds the
organization together. Without an administrative department, customer complaints would not be
resolved, customer orders may not be processed, and the workforce may not have the tools they
need to complete their tasks.
WHAT IS ORGANIZATIONAL STRUCTURE?

An organizational structure is a system that outline how certain activities are directed to achieve
the goals of an organization. These activities can include rules, roles, and responsibilities. The
organizational structure also determines how information flows between levels within the
company. For example, in a centralized structure, decisions flow from the top down, while in a
decentralized structure, decision making power is distributed among various levels of the
organization. Successful organizational structures define each employee’s job and how it fits
within the overall system. (By KENTON, November 10, 2021)
A strategic, carefully planned organizational structure helps a business run effectively and
efficiently. An ineffective structure can cause significant problem for a company, including lost
profits, rapid employee turnover and loss in productivity. Let’s investigate the different
structures depending upon the size and scope of the organization. (By Indeed editorial team)
 Functional organizational structure
One of the most common types of organizational structures, the functional structure
departmentalizes an organization based on common job functions. An organization with a
functional organizational structure, for instance, would group all the marketers together in one
department, group all the salespeople together in a separate department, and group all the
customer service people together in a third department. The functional structure allows for a high
degree of specialization for employees and is easily scalable should the organization grow. Also,
this structure is mechanistic in nature, which has the potential to inhibit an employee’s growth,

putting staff in skill-based departments can still allow them to delve deep into their field and find
out what they’re good at.
 Product based divisional structure
A Divisional organizational structure is comprised of multiple, smaller functional structures (i.e.,
each division within a divisional structure can have its own marketing team, its own sales team,
and so on). In this case- a product-based divisional structure- each division within the
organization is dedicate to a particular product line. This type of structure is ideal for
organizations with multiple products and can help shorten products development cycle. This
allows small businesses to go to market with new offerings fast.
 Market-Based Divisional structure
Another variety of the divisional organizational structure is the market-based structure, wherein
the divisions of an organization are based around markets, industries, or customer types. The
market-based structure is ideal for an organization that has products or services that are unique to
specific market segments and is particularly effective if that organization has advanced
knowledge of those segments. This organizational structure also keeps the business constantly
aware of demand changes among its different audience segments.
 Geographical divisional structure
The geographical organizational structure establishes its divisions based on geography. More
specifically, the divisions of a geographical structure can include territories, regions, or districts.
This type of structure is best suited to organizations that need to be near sources of supply or
customers (E.g., for deliveries or for on-site support). It also brings together many forms of
business expertise, allowing each geographical division to make decisions from more diverse
point of view.
 Process-Based Structure
This structure is designed around the end-to-end flow of different processes, such as ‘research &
Development’, ‘Customer Acquisition’, and ‘Order Fulfilment’ unlike a strictly functional
structure, a process-based structure considers not only the activities employees perform, but also
how those different activities interact with one another. In order to fully understand the diagram
below, you need to look at it from left to right: the customer acquisition process can’t start until
you fully developed product to sell. By the same token, the order fulfilment process can’t start
until customers have been acquired and there is product order to fill. Process-based
organizational structure is ideal for improving the speed and efficiently of a business and is best-
suited for those in rapidly changing industries, as it is easily adaptable.
 Matrix Structure
Unlike the other structures we’ve looked at so far, a matrix organizational structure doesn’t
follow the traditional, hierarchical model. Instead, all employees have dual reporting
relationships. Typically, there is functional reporting line as well as a product-based reporting
line. When looking at a matrix structure organization charts, solid lines represent strong, direct-
reporting relationships, whereas dotted lines indicate that the relationship is secondary, or not as
strong. In our example below, its clear that functional reporting takes precedence over product-
based reporting. The main appeal of the matrix structure is that it can provide both flexibility and
more balanced decision making (as there are two chains of command instead of just one).
 Flat Structure
While a more traditional organizational structure might look more like a pyramid with multiple
tiers of supervisor, managers and directors between staff and leadership, the flat structure limits
the levels of management, so all staff are only a few steps away from leadership. It also might
not always take the form or a pyramid, or any shape for that matter. This structure is probably
one if the most detailed, its also thought that employees can be more productive in an
environment where there’s less hierarchy related pressures.
There also some elements of organizational structure. (Annie Sisk, November 22,2018)
 Departmentalization
Departmentalization refers to how the organizational structure groups the company’s functions,
offices, and teams. Those individual groups are usually sorted because of the kinds of tasks the
workers in each department perform, but this is not the only way to create a company’s
departmental breakdown. You could also divide the business into groups based on product or
brand lines, geographic locations or even customer needs.
 Chain of Command
Most organizations, from businesses to non-profits to the military, utilize a chain of command.
This helps eliminate inefficiencies by having each employee report to a single manager, instead
of to several bosses. In the corporate context, this type of chain of command is reflected in the
organizational structure and affects job description as well as office hierarchies. Managers assign

tasks, communicate expectations and deadlines to employees, and provide motivation on one-to-
many basis. When employees encounter obstacles or problems, they report back to the
appropriate manager. When necessary, the manager is then responsible for taking the concern or
issue up the chain of command to the next level, and so forth. This chain of authority or
command streamlines corporate operations and communications for a more efficient and
productive business.
 Span of control
An organization’s span of control defines how many employees each manager is responsible for
within the company. There is no single type of span of control that’s ideal for all companies or
even for all businesses in a specific industry. The optimal span will depend on several factors,
including the size of the workforce, how the company is divided into departments and even the
company’s specific business goals and strategies. Other factors to consider are the type of
manager assigned to each specific department and the job descriptions of the employees
reporting to that manager. Based on the manager’s individual style or approach, the span of
control could range from three or four to 15 or more. Managers who are placed higher up the
chain of command typically have a tighter span of control, as they are directly responsible for
middle-manager or team leaders.
 Specialization
In any business, employees at all levels typically are given a description of their duties and the
expectations that come with their positions. In larger companies, job descriptions are generally
formally adopted in writing. This approach helps ensure that the company’s specific workforce
needs are met, without any unnecessary duplication of effort. Work specialization ensures that all
employees have specific duties that they are expected to perform based on each employee’s work
experience, education, and skills. This prevents an expectation that employees will perform tasks
for which they have no previous experience or training and to keep them from performing
beneath their capacities.
 Formalization
Organizational structures implement some degree of formalization. This element outlines inter-
organizational relationships. Formalization is the element that determines the company’s
procedures, rules and guidelines as adopted by management. Formalization also determines
company culture aspects, such as whether employees must sign in and out upon arriving and
existing the office, how many breaks workers can take and how long those breaks can be, how
and when employees can use company computers and how workers at all levels are expected to
dress work.
 Centralization
Centralization and decentralization refer to the senior levels of employees who can influence
company decisions. Each company rests somewhere on a scale of centralization. For example,
with centralization, some companies give the senior level of professional’s complete influence
over the decision-making process, while with decentralization, a company may seek the input of
lower-level employees as well. Allowing more employees to influence company practices can
give employees a stronger sense of pride and satisfaction in their work. However, allowing only
senior staff members to share their input can be more time effective.
 Division of labour
The concept of division of labour (Dividing organizational activities into smaller tasks) lies at the
heart of the study of organizational structure. Understanding vertical, horizontal, and informal
linkage helps managers to organize better the different individuals and job functions within a
form. (Mackey, John. 2010 March 9, creating the high trust organization)
5.1. PRIVATE SECTOR ORGANIZATION

FUNCTIONS OF BRANDIX SRI LANKA PVT.
Employee retention refers to the various policies and practices which let the employees stick to
an organization for a longer period. Brandix needed to modernize its human resource processes.
The company turned to Accenture to support its digital endeavour. The two companies signed an
agreement in 2019 that aimed to help Brandix in futureproofing and transforming its business
operations. Under the terms of the agreement, Accenture will help Brandix develop data-driven
manufacturing, supply chain, finance, and human recourses management solutions based on
innovative technologies.
 Human Resource

The Human Resource Management function includes a variety of activities, and key among them
is deciding what staffing they need or hire employees to fill these needs, recruiting and training
the best employees, ensuring they are high performers, dealing with performance issues, and
ensuring your personnel and management practices conform to various regulation. Activities also
include managing the approach to employee benefits and compensation, employee records and
personnel policies. They should always ensure that employees are aware of personnel policies
which conform to current regulations. Empowering female associates through P.A.C.E.; this
aimed to embedding foundational skills and technical training in Brandix Female Associates
(production floor employees), providing them with a steppingstone to excel in their careers and
personal lives. The programme comprises of eight modules on life skills education: including
communication, problem solving, decision making, time & stress management, water, sanitation
& Hygiene, financial literacy, legal literacy & social entitlement, general & reproductive health,
and execution excellence. Since its inception, Brandix has taken great measures to foster a
culture of equal opportunities for all employees of the organization. As a result, every Brandix
employee is given the platform to excel, further their careers, and pursue their aspirations
reinforced by the support of the management and peers, devoid of any discrimination.
 Research & Development
The value-adding function includes Brandix that engage in R&D, as well as activities related to
improving the physical product or process and market and consumer research. Still Brandix low
involvement in this stage.
 Sale and Marketing
Brandix has marketing departments in New York, London, and Hong Kong. In Sri Lanka
Brandix buyers wise Brandix has marketing teams. This function includes all activities and
companies associated with pricing, selling, and distributing a product, including activities such
as branding or advertising.
 Operations: production
Brandix cuts and sews woven or knitted fabric or knit apparel directly from yarn. The group
specialized in manufacturing casual bottom, intimate apparel, underwear, lounge, and sleepwear,
bras, woven and knitted fabric and host of apparel industry accessories. Productions starts after
doing the pilot run and it helps to minimize measurements and other quality related issues. The
cut-and-sew classification includes a diverse range establishment making full lines of ready-to-
wear and custom apparel. Sometimes Brandix performing cutting or sewing operations on
materials owned by others.
 Training & Development
Brandix is Sri Lanka’s largest apparel exporter employing over 40,000 associates directly, while
generating indirect employment to an equivalent number. The group is supported by over 38
integrated manufacturing facilities in Sri Lanka, India, and Bangladesh. They understood the
importance of acquiring a talent pool with the desired skill sets keep us at the forefront of their
industry. In the fast-changing industry of apparel, expertise and aptitude must necessarily be in a
state of flux to say at the cutting edge. To this end, Brandix Training and Development
constantly develops its broad purview of skills and talent development programs at various level.
Most training is directed at upgrading and improving an employee’s abilities or skills.
ORGANIZATIONAL STRUCTURE OF BRANDIX SRI LANKA PVT.
CEO
BU HEAD 1 BU HEAD 2 BU HEAD 3
Operations Operations Operations
HR HR HR

Planning Planning Planning
Cutting Cutting Cutting
Contd. Contd. Contd.
The above structure depicted owner ship and accountability which is the Business unit looking
into the external factors such as marketing and obtaining customer orders and then needed to
communicate via the COO to get the task processed this depicted a delay in communication and
ownership.
However, the company was able to meet the change by implementing Lean manufacturing
process which looks towards a shorter cycle of work process and eliminating waste. Brandix
casual wear further focused on the areas of an organizational design and commenced changes in
a more organized manner by communicating its changes to the employees the areas they focused
was as below and the reason these were implemented explains Brandix casual wear motivate to
change and absorb change to be a challenger in be aligned with its vision.
 Strategy – to meet customer expectations (on time delivery)
 Organization size – to provide Accountability and ownership
 Environment – Appreciation of the rupee and global competition
 Technology – to improve process efficiency and meet customer expectations
5.2. PUBLIC SECTOR ORGANIZATION
FUNCTIONS OF CEYLON SHIPPING CORPORATION

 Financial Department
The financial department provides assistance of the management of the CSCL on financial
affairs, where such financial matters are conducted in an effective manner. This department is
responsible mainly for the following functions.
01. Finance, Accounting & Reporting
02. Budgeting
03. Treasury operations
04. Taxation
05. Corporate reporting
The finance department acts as a guide to various internal departments in matters such as finance
regulations, circulars, rules, and amendment thereon.
The finance department consists of the following divisions.
1. Revenue
2. Liner/container service
3. Payment
4. Management information
5. Bookkeeping
6. Supply and Crew Wages
 Logistics, Clearing & forwarding
This department provides logistics supports to NVOCC freight forwarding operations handled by
the Liner & documentation department. Main functions are handling of customs clearance of
cargo and providing total logistics services on behalf of CSCL customers. This section is one of
the profits generators of CSCL. It is expected to further strengthen this operation with Public
Private sector participation.
 Department of Marketing & Sales/ Customer Care
Marketing department, which play a vital role in attracting both government and private sector
customers, puts their fullest effort to generate more businesses to CSCL. In early days CSCL had
a very strong in-house marketing force but after the liberalization process in the shipping
industry CSCL’s market share has been dramatically decreased which was a big challenge for
marketing.
 Human Resource Department

Human Resource department is handling all the HR related activities within CSCL. The total 125
staff strength of CSCL is comprised of;
- Executive - 59
- Clerical staff - 41
- Minor staff - 24
- Contract - 01
Total = 125
since shipping is an international business, foreign and local training facilities are provided to the
employees in CSCL to enhance the knowledge and skills of the Maritime sector. In addition,
CSCL provide training facilities for the undergraduates who require industrial training in
fulfilment of their degree courses.
 Local training
The HR department annually organizes training programs for the employees in all the
departments in CSCL in association with key training institution such as SLIDA, FDSL, IPM,
National institute of labour studies, Center for banking studies, academy of financial studies,
PRAG institute & vocational training center.
 Overseas training
CSCL has been continuing to send one or two executive every year to follow a course of MSc. In
shipping management at world maritime university, Sweden under sponsorship to develop
knowledge of the employees and to exchange views internationally.
The primary objectives are to maintain high levels of professional standard and to ensure
optimum utilization of Human Resource at organizational as well as national a
International level.
 IT Department
Supervision of network system, administration of Web site & Email facilities with SLT domain
functions and the antivirus maintenance.
Maintaining newly implemented tally system (financial package), modified pay roll system.
Maintaining Electronic Cargo Manifest system shipping module and the ASYCUDA system
(online entry process of CUSDE with the custom system).
Overall supervision backup system, hardware & software maintenance and purchasing software
& spares.
ORGANIZATIONAL STRUCTURE OF CEYLON SHIPPING PLC.

Desamanya Ken Balendra is the chairmen in the Brandix. Ken Balendra joined the board of
directors of Brandix Lanka Limited as its non-executive chairmen in 2001. Mr. Ashroff Omar is
the Executive officer; Travine Jayasekara is the finance director of the Brandix. And there are
four directors in the board of directors in the Brandix and they are Aslam Omar, Feroz Omar,
Ajith Johnpillai, and Udena Wickramasooriya and Mr. Priyan Fernando is the non-executive
directors in the Brandix. Their strong possibility in product development, manufacturing, and
marketing, are perfect by their most significant advantage in textile; they make their own fabric,
threads, buttons, and hangers. Brandix also provide customers with R&D, washing, dyeing,
finishing, and quality control services. When it comes to decision making, owners/board of
directors, strategic decision, tactical decision, operational decisions and then most employees
come straightly. Decision making is the heart of business activity. businesses are decisions
making units made up of a different of decisions makers e.g., directors, managers, and
employees. Organization should take different kind of decisions related to the business.
06. INTERRELATIONSHIP BETWEEN ORGANIZATION FUNCTION
6.1. Interrelationship Between Organizational Functions of Brandix Sri

Lanka
The organizational functions in Brandix Sri Lanka are human resource, finance, research and
development, sales and marketing, production, and training and development. Interrelationship
between these functions is most important thing to achieve the organization’s success.
Training and Human Resource

Training makes a very important contribution to the development of the organization’s human
resources and hence to the achievement of its aims and objectives. To achieve its purpose,
training needs to be effectively managed so that the right training is given to the right people, in
the right form, at right time and the right costs.
In field of Human Resource Management, Training and Development is the field concern with
organizational activities which are aimed to bettering individual and group performances in
organizational settings. Training and Development is the framework for helping employees to
develop their personal and organizational skills, knowledge, and abilities. The focus of all
aspects of Human Resource Development is on developing the most superior workforce so that
the organization and individual employees can accomplish their work goals in service.
Production and Finance

Relationship of finance and production department’s main duty is to produce the goods.
Underwear, casual bottoms, intimate apparel, Bras, lounge and sleepwear can consider as the
goods of Brandix Garment. And for producing these it needs raw material, labor, and other
expenses. For paying all expenses, production department needs money and fund which will be
fulfilled by finance department. Financial department checks the budget of production
department and allow funds for production department. With this view, we can understand that
production department is dependent on finance department’s decision.

Marketing and sales and Finance
Marketing and sales work together very closely in a business. The role of marketing is to attract a
customer to the business and develop an interest in their products. Brandix has marketing
departments in New York, London, Hong Kong. Sri Lanka Brandix buyers wise Brandix has
marketing teams. Even for overseas marketing department needs finance department for achieve
their objectives. The finance department provides a budget and an amount of money that will
allows the sales made and the revenue achieved. Finance will also closely monitor any costs that
the business has, and ensure the sales department are selling enough products for the business to
achieve a profit.
R&D and Marketing

When marketing and R&D are truly focused on understanding and acting on customer needs, it
makes both of their jobs easier and their results more productive. R&D employees complain that
marketers provide weak data, that they’re most useful in developing launch plans rather than
developing new products. Brandix engage with R&D as well as activities related to improving
the physical product or process and market and consumer research. But Brandix still low
involvement in this stage. R&D and Marketing needs to work together to achieve their objectives
and that is what customer need and are willing to pay for.
Production and R&D Department

Research and Development department develops new products and improves the design of
existing products in order to enhance their functional utility, customer appeal. Design
department’s output will be in the form of drawings. It is a process of intangible idea and
designing into a tangible product. It covers planning, sourcing materials, costing and production.
It is a dependable of a serial and progressive process of converting and assembling ram materials
like yarn, fabric and accessories into final and finishing garments. Its includes sampling, finished
fabric cutting, sewing, washing, finishing, quality checking and packing.
6.2. Interrelationship between organizational functions in Ceylon Shipping
The organizational functions in Ceylon Shipping Corporation are financial department, logistic,
clearing & forwarding, marketing & sales/ customer care, human recourse department, IT
department.
Human resource and finance

Human resources department is also interrelated with finance department in various ways. The
human resource department establishes the employment needs in the organization. Including the
right amount of wages that is appropriate for each position based on the prevailing market wage
rate and the company’s policies. The finance department then creates a payroll to release funds to
each employee according to their wage rate. Since shipping is an international business, foreign
and local training facilities are provided to the employee in CSCL to enhance the knowledge and
skills of the maritime sector, and for that human resource department needs work with finance
department to recruit new local and foreign employees and to give them their trainings.
Human resource and marketing

The marketing team work closely with HRM to ensure that appropriate skills and staffing levels
are in place to meet production targets and create an ambitious and competent sales team. The
HRM department have many recruitment and training demands from across the organization. It
will balance its obligations to marketing with those to other departments. Marketing team puts
their fullest efforts to generate more businesses to CSCL.
IT Department and Marketing

Ceylon shipping corporation maintaining Electronic Cargo Manifest system shipping module and
the ASYCUDA system and other much. Marketing department is playing a vital role in attracting
both government and private sector customers. Although the marketing department is being
tasked with providing a more enriched interaction between businesses and their respective
customers, they are still orienting themselves the problem and current solutions.

Logistics and Finance
Main functions are handling of customs clearances of cargo and providing total logistics services
on behalf of CSCL customers. Logistics is one of the profit generators of CSCL customers.
Financial performance of a company is dependent on their cash management and profitability.
Logistics performance though also based on lowering cost performance indicators is always
willing to penetrate the market with different techniques.
IT department and Finance

CSCL financial team uses systems, company hardware, and public cloud providers that all rely
on companies IT department. While complex, company rely on this infrastructure and
technology stack to run daily operations, which makes close collaboration with IT essential to
ensure processes are efficient, secure, and scalable. Changes that seem only finance related, like
updates to the existing ERP revenue module, can have downstream effects on order processing
or customer billing systems.
7.HOW THESE FUNCTIONS IMPACT TOWARD OBJECTIVES

OF THE ORGANIZATION
7.1. Brandix Sri Lanka

 Human Resource function – the human resource management function includes a
variety of activities and key among them is deciding what staffing they need or hire
employees to fill these needs, recruiting and training the best employees, ensuring they
are high performers, dealing with performance issues, and ensuring your personal and
management practices confirm to various regulation. Literature considers human resource
management as a key element of successful business model innovation since human
factors are involved in the entire process of organizational innovation development. HRM
activities shape the skills and behaviour of individuals within an organization to achieve
the organization’s goals. Human resource embraces all kinds of assets, knowledge,
capabilities and organizational processes that enable the firm to implement strategies that
enhance its effectiveness and efficiency.
 Research and development – research always work to identify and invent something
new which can be made human life easier and benefitted. The value adding function
includes Brandix that engage in R&D, as well as activities related to improving the
physical products or process and market and consumer research. But still Brandix low
involvement in this stage. Development works to modify newly born products, making it
more fruitful and attractive in use. R&D helps the organization to develop the products
and include new goods and quality in their products gallery. It plays a crucial role on
building a qualified industrial product image through their quality support, to the
marketing team, indirectly they work to make a brand value in the market.
 Production – Brandix cuts and sews woven or fabric or knit apparel directly from yarn.
This process used to transform material inputs (raw materials, semi-finished goods, sub-
assemblies) and immaterial inputs (plans, ideas, information, knowledge) into goods.
Basically, resources are used in this transformation process is to creates goods which has
value and contribute to the utility of individuals or groups. Productivity is a measure of
the efficiency and effectiveness to which organizational resources means inputs are
utilized for the creation of outputs.
 Sales and marketing – Brandix have marketing department in New York, London, and
Hong Kong. It’s impossible for successful without good marketing and sales techniques.
Marketing includes all activities and companies associated with pricing, selling, and
distributing a product, including activities such as branding or advertising. Marketing
team help the organization set its objectives. By practicing some marketing strategies, it
will lead to the popularity of the brand. By this it will motivate the company to maintain
its reputation. And the company set clear goals and objectives for their employees to
know their targets.

7.2. Ceylon shipping corporation
 Finance Department – as well as providing financial information to other departments
to assist in business decision making. The finance function able to offer advice on the
sources of finance that are available to the company, or it may be able to suggest ways of
improving cash flow. The financial department provides assistance of the management of
the CSCL on financial affairs, where such financial matters are conducted in an effective
manner. When financial department making decisions about the best way for the
company to expand, managers will rely upon the finance function to provide information.
This information cover sources of finance as well as costs, break even point and any
forecasted changes in sales. This is how finance department helps the organization to
achieve their objectives and goals.
 IT Department – business is now operating in an era where having a strong digital

presence is essential, not only for success, but often simply for survive too. And like most
other industries, shipping is being rapidly transformed by a range of technology
innovations that aim to make operations greener, cheaper, and more efficient. IT
Department helps to connect with international and national policymakers to facilitate the
adoption with new technology. Overall supervision backup system, hardware & software
maintenance and purchasing software & spares handle by IT Department. As well as a
good website, channels such as social media marketing, email marketing and pay-per-
click advertising is extremely effective. Digital technologies are accelerated business
growth because they allow corporation to reach wider and build relationship with the
customers.
 Logistics Department – main functions are handling of customs clearance of cargo and
providing total logistics services on behalf of CSCL customers. This section is one of the
profits generators of CSCL. Well establish logistics partner reduce the organizational
load. This come with smart and practical ideas for increasing the effectiveness of supply
chain logistics methods that are inefficient, uncluttered, and quantifiable. Logistics cuts
unnecessary costs that were previously ignored. Strategic overhead expenses have been
lowered by CSCL oriented logistics such standardisation, streamlining, productivity
gains, and material economy operating profits.
8. COMPARE AND CONTRAST FINDINGS OF THE

ORGANIZATION
Brandix Sri Lanka engage with R&D as well as improving the physical product or process and
market consumer research. As we can see still Brandix has low involvement in this stage. so, I
recommend improving the R&D Department with teamwork. Innovative ideas can come from
any member of the team, from the most junior to the most senior. Put together a good mix of
talent and skills come out.
In early days CSCL had a very strong in-house marketing force but after the liberalization
process in the shipping industry CSCL’s market share has been dramatically decreased which
was a big challenge for marketing. So, I prefer to increase marketing strategies in shipping
marketing department with good understanding of the targets, consistency, and expertise. And
Digital marketing involves creating a lot of different content and requires consistency and
creatively to be effective, so the planning is tremendously important when it comes to creating a
shipping marketing strategy.
In children’s hope voluntary organization there are no proper structure or proper information so I
recommend if they can redesign a new structure with proper information.

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Dilangishamindika426@gmail.com
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Higher National Certificate/Diploma in Business
Assignment Brief
Student Name /ID Number C.M. Dilangi Shamindika Chandrasekara
Unit Number and Title Unit 01: Business and Business Environment
Academic Year 2021/2022
Unit Tutor
Assignment Title Understanding different types of organizations in different

perspectives and analyze the link between organizational structure
and the functions.
Issue Date
Submission Date
IV Name & Date
Submission format
Section A
The submission should be in the form of an individual written report written in a concise, formal business style
using single spacing and font size 12. You are required to make use of headings, paragraphs and subsections as
appropriate, and all work must be supported with research and referenced using Harvard referencing system (in-
text and end-text referencing). The recommended word count for the report is 4,000–4,500 words but learner
will not be penalized for exceeding the total word limit.
Section B
The submission should be in the form of a written report that includes PESTLE analysis and SWOT/TOWS
analysis for the organization given in the case study. The key findings of the study need to be presented in a
15minutes PowerPoint presentation. (5 minutes allocated for the questions). Presentation slides and speaker
notes should be attached to the appendix in the report. The recommended word count for the report is
1,000–,1500 words but learner will not be penalized for exceeding the total word limit.
The report is required to make effective use of signposting (numbered headings, bullet points and subsections) in-
text referencing as appropriate. Your research should be referenced using the Harvard referencing system. Please
also provide a reference list using the Harvard referencing system.

Unit Learning Outcomes:
LO1 Explain the different types of organizations including their size and scope.
LO2 Demonstrate the interrelationship of the various functions within an organization and how they link to
organizational structure.
LO3 Use contemporary examples to demonstrate both the positive and negative influence/impact the macro
environment has on business operations
LO4 Determine the internal strengths and weaknesses of specific businesses and explain their interrelationship
with external macro factors.
Learning Outcomes and Assessment Criteria
Pass Merit Distinction
LO1 Explain the different types, size and scope of

organisations
P1 Explain different types and M1 Analyse how the structure,

purposes of organisations; size and scope of different
public, private and voluntary organisations link to the
sectors and legal structures. business
objectives and product and
P2 Explain the size and scope services offered by the LO1 and LO2
of a range of different types of organisations.
organisations.
D1 Provide critical analysis of the
complexities of different organisations
LO2 Demonstrate the interrelationship of the various functions
and structures.
within an organisation and how they link to organisational
structure
P3 Explain the relationship M2 Analyse the

between different interrelationships between
organisational organisational functions and
functions and how they link to the impact that can have upon
organisational objectives and organisational structure.
structure.
LO3 Use contemporary examples to demonstrate both the LO3 and LO4
positive and negative influence/impact the macro environment
has on business operations
D2 Critically evaluate the impacts that
both
P4 Identify the positive and M3 Apply appropriately the
negative impacts the macro PESTLE model to support a macro- and micro factors have on
environment has on business detailed analysis of the macro business
operations, supported by environment in an objectives and decision making
specific examples. organisation.
LO4 Determine the internal strengths and weaknesses of
specific businesses and their interrelationship with external
macro factors.
P5 Conduct internal and M4 Apply appropriately

external analysis of specific SWOT/TOWS analysis and
organisations in order to justify how they influence
identify strengths and decision making.
weaknesses.
P6 Explain how strengths and

weaknesses interrelate with
external macro factors

Assignment Brief and Guidance:
Section A
Suppose you has recently been recruited as a Business Analyst to a company of your choice which
expects to diversify its product portfolio into different industries. As your initial project, you are
required to prepare a management report to the Board of Directors on “Analysis of the Different
industries and their environments”:
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This will be presented as a report to the CEO. In the report you are required to investigate and explain
three different types of organizations (Including the organization that you have selected at the initial
point) and compare their size and classification to highlight differences between them. The report also
should include their legal structure, size and scope, and their key stakeholders. You must then explain
various functions of the selected organization and create an organizational chart to explain and analyse
the interrelationships between different organizational functions and the impact it creates upon the
structure of the organization. Advantages and disadvantages of the available interrelationships also need
to be explained and analysed in your report. Further You are required to critically analyze how the
different structures of the organizations creates complexities by comparing and contrasting the findings
of the organization which you are working in with the other two chosen organizations.
Section B
Section B:
You have been asked to perform an analysis on the current environmental factors that influence or
impact the organization chosen in section A. As the Business Analyst, the identified factors should be
presented to the top management of the company in a 15 minutes’ presentation.
----------------------------------------------------------------------------------------------------------------------
In the presentation you are required to analyze the macro environmental factors with the aid of PESTEL
analysis in order to highlight their positive and negative impact on the business. Further You need to
apply the SWOT/TOWS analysis to the organization to identify their key strengths and weaknesses and
strategies implemented by the organization to overcome threats and to make use of the opportunities.
You are then required to emphasize how identified factors influence the decision- making process of the
organization. You need to explain the interrelationships with the findings of SWOT/TOWS analysis and
the external factors identified (PESTEL). You also need to compare and contrast the findings of the
micro and the macro factors and critically evaluate their impact upon the objectives and the decision
making of the organization.
Grading Rubric
Grading Criteria Achieved Feedback
P1 Explain different types and purposes of

organizations; public, private and voluntary
sectors and legal structures.
P2 Explain the size and scope of a range of
different types of organizations.
P3 Explain the relationship between different

organizational functions and how they link to
organizational objectives and structure
P4 Identify the positive and negative impacts the
macro environment has upon business
operations, supported by specific examples.
P5 Conduct internal and external analysis of
specific organizations in order to identify
strengths and weaknesses.
P6 Explain how strengths and weaknesses
interrelate with external macro factors.
M1 Analyze how the structure, size and scope of

different organizations link to the business
objectives and product and services offered by
the organization
M2 Analyse the interrelationships between
organisational functions and the impact that can
have upon organisational structure.
M3 Apply appropriately the PESTLE model to
support a detailed analysis of the macro
environment within an organization.
M4 Apply appropriately SWOT/TOWS analysis
and justify how they influence decision-making.
D1 Provide critical analysis of the complexities
of different organisations and structures.
D2 Critically evaluate the impacts that both
macro and micro factors have upon business
objectives and decision-making

OBSERVATION RECORD
Learner name:
Qualification: BTEC Level 4-HNC/HND Diploma (RQF)
Unit number & title: Unit 1: Business and the Business Environment
Description of activity undertaken
Assessment criteria targeted
How the activity covers the requirements of the assessment criteria (this does not confirm achievement of
assessment criteria or confer an assessment decision)
Learner name:
Learner signature: Date:

Assessor name:
Assessor signature: Date:
WITNESS STATEMENT
Learner name:
Qualification: BTEC Level 4-HNC/HND Diploma (RQF)
Unit number & title: Unit 1: Business and the Business Environment
Description of activity undertaken (please be as specific as possible)
Assessment criteria (for which the activity provides evidence)
How the activity covers the requirements of the assessment criteria, including how and where the activity
took place (this does not confirm achievement of assessment criteria or confer an assessment decision)
Witness name: Job role:

Witness signature: Date:
Learner name:
Learner signature: Date:
Assessor name:
Assessor signature: Date:

Understanding Business Organizations and Their Environment

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Higher Nationals

Internal verification of assessment decisions – BTEC (RQF)

Assessor Ms. Hiruni Weerakoon Internal Verifier

Unit(s) Unit 1: Business and the Business Environment

List which assessment Pass Merit Distinction

Do the assessment criteria awarded

Is the Pass/Merit/Distinction grade

• Identifying opportunities for

• Agreeing actions? Y/N

Does the assessment decision need

Internal Verifier signature Date

Assessor signature Date

LO1 Explain the different types, size and scope of organizations

Pass, Merit & Distinction P1 P2 M1 D1

Pass, Merit & Distinction P3 M2 D1

Pass, Merit & Distinction P4 M3 D2

Pass, Merit & Distinction P5 P5 M4 D2

Grade: Assessor Signature: Date:

Grade: Assessor Signature: Date:

Internal Verifier’s Comments:

Signature & Date:

Business environment for (HND BM) C.M.D.S. Chandrasekara

Feedback: Student to Assessor

Assessor signature Date

Student signature Date

Business environment for (HND BM) C.M.D.S. Chandrasekara

Business environment for (HND BM) C.M.D.S. Chandrasekara

PRIVATE SECTOR ORGANIZATION:

Business environment for (HND BM) C.M.D.S. Chandrasekara

Business environment for (HND BM) C.M.D.S. Chandrasekara

COMPANIES/JOINT STOCK COMPANIES

Business environment for (HND BM) C.M.D.S. Chandrasekara

PRIVATE LIMITED COMPANIES

DISADVANTAGES OF A PRIVATE LIMITED COMPANY

Business environment for (HND BM) C.M.D.S. Chandrasekara

Business environment for (HND BM) C.M.D.S. Chandrasekara

Business environment for (HND BM) C.M.D.S. Chandrasekara

ADVANTAGES OF PUBLIC SECTOR

DISADVANTAGES OF PUBLIC SECTOR

ADVANTAGES OF VOLUNTARY SECTOR

DISADVANTAGES OF VOLUNTARY SECTOR

Business environment for (HND BM) C.M.D.S. Chandrasekara

3.1. PRIVATE SECTOR

Business environment for (HND BM) C.M.D.S. Chandrasekara

3.1.3. PRODUCTS AND SERVICE PORTFOLIO

Business environment for (HND BM) C.M.D.S. Chandrasekara

3.1.5. STAKEHOLDERS OF THE BRANDIX SRI LANKA

Business environment for (HND BM) C.M.D.S. Chandrasekara

3.1.6. LEGAL STRUCTURE

Business environment for (HND BM) C.M.D.S. Chandrasekara

3.2.3. PRODUCT AND SERVICE PORTFOLIO

Business environment for (HND BM) C.M.D.S. Chandrasekara

3.2.4. SIZE AND SCOPE OF THE ORGANIZATION

3.2.5. STAKEHOLDERS OF THE ORGANIZATION

3.3. VOLUNTARY SECTOR

Business environment for (HND BM) C.M.D.S. Chandrasekara

3.3.3. PRODUCT AND SERVICE PORTFOLIO

Business environment for (HND BM) C.M.D.S. Chandrasekara

3.3.4. SIZE AND SCOPE OF THE ORGANIZATION

3.3.5. LEGAL STRUCTURE

05. FUNCTIONS AND ORGANIZATIONAL STRUCTURE

Business environment for (HND BM) C.M.D.S. Chandrasekara