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Analysis Of Business Environment

Introduction                                                        

Organizational structure provides a detail information about the structure, scope and size of an organisation. The business organisations can be divided into several types based on the culture objective and work atmosphere of the organisation. However, the structure of the organisation or its environment is being considered as essential factors as they can stimulate the profit levels of the organisation as well. This assignment would analyse the interplay between the size, scope and structure of an organization and the role that such factors play in the development of the business environment and the success of the organisation. The selected organisation for the study of the business environment would be Tesco, and the internal and external business environment would be assessed with the help of SWOT analysis and PESTEL analysis of the selected organisation. The learner has focused on the given case studies while answering this question. The overall assignment has been divided into two main parts, and they are known as assignment 1 and assignment 2. Each of the section has discussed on an organization and its relationship with several factors as well.

Assignment 1

Task 1

Various organisations have different structures, and they also operate differently because of the nature of their structure. Different organisations have the different scope by which their size and structure is defined. Most public organisations are big and have very complex structure. It is observed that due to the complex structu ........

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Organizational structure provides a detail information about the structure, scope and size of an organisation. The business organisations can be divided into several types based on the culture objective and work atmosphere of the organisation. However, the structure of the organisation or its environment is being considered as essential factors as they can stimulate the profit levels of the organisation as well. This assignment would analyse the interplay between the size, scope and structure of an organization and the role that such factors play in the development of the business environment and the success of the organisation. The selected organisation for the study of the business environment would be Tesco, and the internal and external business environment would be assessed with the help of SWOT analysis and PESTEL analysis of the selected organisation. The learner has focused on the given case studies while answering this question. The overall assignment has been divided into two main parts, and they are known as assignment 1 and assignment 2. Each of the section has discussed on an organization and its relationship with several factors as well.

Assignment 1

Task 1

Various organisations have different structures, and they also operate differently because of the nature of their structure. Different organisations have the different scope by which their size and structure is defined. Most public organisations are big and have very complex structure. It is observed that due to the complex structure of the organisation, their size is also significant. The scope of the public organisations is widespread and extended to the general public (Gatautis, Medziausiene, Tarute and Vaiciukynaite, 2015). The private organisation, on the other hand, can range from small to big size depending on the nature and scope of the organisation (Cummings and Worley, 2014). Small firms are usually simple in structure while the big MNCs have the complex structure. The voluntary organisations function as small-sized and simple structures, and their scope is specific to the causes that it supports. Moreover, the legal structures are usually small in size, but they are complex in structure and broad in scope. 

Smith,  Mauri and Naresh (2016) have mentioned that the organisational structure can be referred as the skeleton of business. Something is required that can provide a shape to the organisation as well as to support the profitability and stability of the firm. A proper structure of an organisation helps the employees to understand the primary goal of the company and engages the workers more to the company. It clarifies as well as understand the scope and role of everyone. It helps to divide labour among all the employees. Other than that, it assists to avoid the confusion and conflicts as well. Therefore, the productivity would be flawless as well as more accurate.

    1. Analysis of link between structure, scope and size of organisation and business objectives (M1)

The business objectives of organisations are the reflection of the structure of the organisations and its size. Organizational leaders would hardly recommend the change of structural redesigning until it is an absolute necessity. The structure and scope of an organisation are embedded within the belief of the organisation and is driven by the vision of the future thus the structure and scope of an organisation has the direct association with the business objectives (Mazzucato, 2015). The small-sized organisations are more driven by short-term successes and thus have the simple organisational structure as defined by their scope to compete with local companies for market share (Gatautis, Medziausiene, Tarute and Vaiciukynaite, 2015). While on the other hand prominent size organisations are driven by long-term successes, and thus their complex organisational structure support the scope, vision and objective of competing with companies at international level (Mazzucato, 2015).

Olson et al. (2016) have commented that the objective of a business organisation is such a factor that needs to be made for the success of the organisation. It can be considered as a benchmark for the entire team which would influence them to maximise their productivity. Therefore, the utilisation of resources should be planned as they can achieve the objective by their productivities. On the other hand, the structure of a business organisation seems to be the way where the pieces of organisation can be fit accordingly. For an organisation, its objective, as well as its structure, must be adequately woven. Other than that, the organisational structure can further be defined as the term that can describe the process of hierarchy, allocation of tasks and to assuring that the workforce would provide most effective productivity as the goal of the organisation can be achieved. It includes avoiding the responsibility overlapping as well as unnecessary confusion among the workforce. However, it should not be forgotten that the structure and the objective are entirely two different aspects. They complement each other, and a perfect combination of them increase the profitability of the firm.

Task 2

2.1 Relationship between organisational function and organisational objective and structure (P3)

The business function of an organisation would include production, marketing, sales, research and development work, human resource management. Most organisations' structure defines the manner in which interaction between different functions of the organisation would be established. Most organisations have the functional structure where the functions are departmentalised. Organizations can also adopt the divisional structure where the function is spread across different branches especially when the organisation have different production lines; separate RandD department and set line of authority (Banai and Antipova, 2016).

The above discussion has indicated that organisational function is deeply related to the organisational structure and objective.  It is better to say that the organisational function mainly on the objectives of the company. Albers, Wohlgezogen and Zajac (2016) have opined that for the organisation to its function all the members should interact structurally. The behaviour norms and the expected levels of performance all should are mentioned correctly. It should be remembered that the activities within the community would be coordinated. It is true that a business organisation may have several uncertainties with it. Still, the authority should make the decision and should establish them accurately.

Albers, Wohlgezogen and Zajac (2016) have mentioned that the communication process is highly required to influence the workforce for high level of productivity. Proper communication reduce the confusion, and a healthy working atmosphere can be provided to the employees. Each function of the organisation is deeply related to the objective of the organisation. 

2.2 Advantage and disadvantage of relationship between organisational function and its impact on organisational structure (M2)

 As it has been discussed, an organizational function has the direct link with the organisational structure. Organizations with different structure have differently designed organisational function.  While most organisations that operate as small-sized operations have divisional structure, many organisations these days adopted functional structure. It may impact the organisational structure in positive or negative means:

Advantage:

  • The close relationship between organisational function and structure leads to specialisation of services (Saleheen et al. 2014).
  • It also leads to better efficiency and increased productivity
  • It also gives the better understanding of the organisational capabilities.

Maintaining a proper relationship between organisational function and structure would facilitate the organisation from several aspects. First of all, it specialises the services. Each of the companies is intended to implement such structure which is the most suitable for it. No one can determine an extreme write or apparent wrong structure for any organisation.  On the other hand, the relation between the function of the organisation and the structure of the organisation is further beneficial for the company as it provides better efficiency as well as the increased productivity.  It is quite natural that if the efficiency among the employees were enhanced, therefore better productivity would be derived. As an ultimate result, the company would be benefitted. It would be able to achieve the more competitive advantage in the market. 

Not only that, Lin and Hurley (2016) have opined that a dynamic relationship between function and structure of the organisation would measure the capacity of the company as well. Having proper knowledge about the capacity of the organisation is highly required. It helps the management to take the proper decision about their workforce. A healthy relation would enhance the communication between organisational function and structure. Therefore, it would become easy for the management to assess their capabilities.

Disadvantages:

  • Often in this process, there is lack of teamwork if there is lack of coordination between the functional units
  • If the system fails to get coordination between the different functions, then the management often founds difficulty in control and management as it is difficult to strike a balance between the operations of various functional units (Saleheen et al. 2014).

However, this is not true that the relationship between organisational structure and function always facilitate the organisation. Lin and Hurley (2016) have commented that the organisations sometimes face several challenges as well while maintaining the relationship in between organisational function and structure. This process requires a long time, thus there would be a chance of less coordination between several functional units. Even, sometimes it also is identified that lack of teamwork hampers the productivity of the organisation.

If system may be failed to keep the coordination between its several functional units, therefore the management would face a constant difficulty in controlling the overall organisation. It would become difficult for the management than to influence all the functional units to provide proper as well as efficient productivity.

2.3 Analysis of complexity of different business structure and interrelation between different organisational function (D1)

It has been realised that in small organisations, where the structure of the organisation is elementary and one directional. Thus, resultantly it has also been seen that in simple and small-sized organisations. It includes the production functions such as production, marketing, sales, research and development work, human resource management are not departmentalised into separate functional units, somewhat skilled workers are hired so that they can work efficiently across different production functions (Gohel and Gondalia, 2013). However, in prominent organisations, where there is complex structure found in the organisation, it is seen that the matrix and the complex organisational structure does not support the interrelation of different departments rather different departments depending on the different production function such as production, marketing, sales, research and development work. Instead, there is complete separation of different units and specialisation also takes place as per requirements of different departments.

Wright (2016) has commented that the organisational complexity seems to be some resources those are involved in the organisation, team, system, project, process and department. Several ways are there to measure these complexities. First of all, the number of engaged people in a task can be considered as a factor to measure the complexity of an organisation. For example, if 60 people have been asked to change a pixel on a webpage, therefore it should be considered the structure is apparently complex. However, it was an example. It should remember that without developing proper sources, it is next to impossible for the business organisations to provide better performance. It is true that the organisational function would be complex, no simple structure is there that could provide excellent productivity for the organisation.  Therefore, the managers should develop some strategies thus the unnecessary complex can be reduced.

O'Neill, Beauvais and Scholl (2016) have added that in a simple organisational structure, the employees can communicate to the management more easily and smoothly. Even, the managers can also get the chance to communicate to the employees easily. For instance, a clarified organisational hierarchy can simply the reliable communication ups and downs to the command chain. On the other hand, in a complex communication structure, it becomes difficult for both the management as well as employees to communicate with each other. Several directorial slabs are there which needs to cross when an employee may want to communicate with the super management.

On the other hand, O'Neill, Beauvais and Scholl (2016) have declared that the decision making process in a complexly structured organisation used to take long time rather than the simple one. For instance, the complex structure of a company may centralise the hierarchy which may result from a slower operation. The employees need to wait for the final decision which would be taken by the top management of the company. In that case, the process needs to be stopped for sometimes at least. On the other hand, in a simple structure of an organization, the ultimate management can be reached immediately and therefore the decision can be taken quickly. It has been noticed that the less centralised structure can provide faster response.

The large and well functioning structure can adequately utilise the labour division. It can ensure that they are using the most qualified employees. Thus they are enabled to handle the tasks efficiently. On the other hand, Dalmasso, Garcias and Depeyre (2016) have stated that the simply structured organisation has to adjust in this regard. Some of the employees in these firms have to serve multi-tasks. However, while analysing the complexity of different organisational structure, it can be said that the main complications arise due to miscommunication within the organisation.  On the flip side, complex structure is more needed for a large organisation. Therefore, the management should take the proper step in it. They should ensure the fact that no additional complexities may occur or the employees are well understood about their tasks and responsibilities. Therefore, the problems can be reduced.