The very modern globalised market of the competitive business world, the business organisations ought to consider the different factors of business environment for making more advanced decisions to ensure competitive advantage in the market. This particular assignment has discussed about types of organisations with their scopes and purposes along with interlinks between the functions of the different departments. The macro environment is also analysed here with the help of PESTEL whereas SWOT is used for making analysis of the micro environment factors. The organisations like Cancer Research UK and Ryanair are considered for this assignment to elucidate better information about the business environments.
The three types of organisations are mainly public organisation, private organisation and voluntary organisations. The each kind of organisation have their distinct legal structure and purpose to be followed in course of business.
Public organisations are general entities administered and controlled by the government bodies of a country. The National health Services or NHS can be considered as a public organisation of UK as anyone can buy shares in the company with the help of the prospectus. The public organisations such as NHS focuses on providing huge employment chances in UK along with providing quality service of health and social care without any target to accomplish revenue and profit in the business. Alike other public organisations, NHS also follows the legal structure of limited liability corporation or LLC in the operational purpose (Apăvăloaie et al. 2014). LLC is a legal structure which allows the organisations to distribute limited liabilities among the owners and the management.
The private organisations are focused on doing business operations with respective products and services to generate satisfaction among the customers in order to get a sustainable revenue and profit margin. The private businesses are controlled by board of directors whereas the compliance with regulations of the state is mandatory. The airlines company Ryanair can be exemplified as a prominent private organisation. The purpose of the private organisations is to ensure profit generation for gaining market advantage. As a company, Ryanair has a purpose of becoming the market leader in the low cost passenger flight industry through expanding the services with improvements (Botha et al. 2014). The legal structure of the private organisations alike Ryanair is PLC or Public Limited Company as this particular structure allows the organisations to expand the share capital.
Voluntary organisations are binding of the contractual agreements of organisations for the purpose of social development and social welfare activities whereas the Cancer Research UK can be considered as a major example of the voluntary organisations. This kind of organisations has a purpose of making developments associated with different social causes (Chang, 2016). The Cancer Research UK has a purpose to increase awareness about cancer among the people apart from improving the treatment facilities for the patients with the disease. The legal structure of this kind of voluntary organisations like Cancer Research UK is mainly a trust company
The organisational size and scope is integrally connected with the objectives and services of an organisation. The strategic plan making to provide services to the customers is done based on anticipation of the size and scope of an organisational as per the standards of the industry. The relation between the organisational types and size and scope procure approaches for the accomplishment of the business objectives in relation with rendering coherent services and products. The voluntary organisations like Cancer Research UK focuses of obtaining huge fund to enhance the quality of facilities of cancer research and treatment in the country (Quinlan et al. 2016). The gathering of huge amount of fund is utilised in the purpose of making development of the cancer treatment facilities to achieve the objective of fighting cancer collaboratively. On the other hand, the private organisations like Ryanair uses the size and scope of market to use a strategy of low cost differentiation to accomplish business goals by attracting customers to use their services. The strategy is made with the goals like incurring efficiencies in the operations to
The structure of Ryanair is very much centralised in order to maintain an extensive relationship with the organisational functions. Apart from that, the functions and objectives of Ryanair are very much related with the organisational structure to maintain the market operations of low cost airline services. The structural function of Ryanair provides intense support to the different functions of the departments to ensure coherent execution of the strategies of low cost differentiation to obtain competitive advantage in the market. The centralised structure of the organisation enables in directing the departmental functions to accomplish a common organisational goal (Ryanair.com, 2018).
The functions and centralised structure impose joint impact to foster a communicative brilliance in the organisations that enable Ryanair to define the units of performance with functional units of better quality of outcome assurance. The compliance with the centralised structure allows Ryanair to generate employee motivation by involving them into the process of decision making about low cost airline services. The very collaboration is also helpful to maintain a sheer bureaucratic balance and flexibility in the operations of Ryanair (Schaltegger et al. 2017). The organisational operations to execute the strategy of low cost airlines is provided with intense support from the centralised structure that enables ease to undertake the different related departmental functions.
The very interrelation between the functions of Ryanair has procured many advantages as it helps in segregating the major activities with the help of the functional segments and units of employee groups. This procures sheer advantage for the company as it allows Ryanair to obtain sheer ease to unite the workforce to control cost for accomplishing the business objective (Storey, 2016). This aspect draws another advantage to grow a very dependable level of the competence of the departments of the organisation to correlate the organisational performances for achieving the common goal. In addition to that, the internal relation is also important among the functional units to provide a clarified account of responsibilities to every stakeholder of the business to ensure the betterment of performance for Ryanair.
The internal relationship can also lead Ryanair to many disadvantages in the business as it can also impose impact on the business advantages in the market for the company. In course of transition process of the change management, it can cause hardship for Ryanair due to lack of consistencies in the services of low cost airlines. This kind of absurd business situations can create disadvantages for the companies for having an interrelated organisational functions as it also makes the process of obtaining goals harder (Wheelen et al. 2017). This can generate further level of disadvantage for the maintenance of a process to maintain alignment of the organisational aspects as it also enhances level of complexities to make it harder to accomplish the objectives.
The very complex aspects in the internal relationship among the functions of Ryanair ought to be evaluated properly to anticipate the impact of the structural complexities and organisational operations. The interrelation mainly affects the organisational structure as it makes modifications in order to foster the communication and information transfer lines among the departments of Ryanair (Hunger et al. 2017). The negative impact also procures sheer rigidity in the centralised organisational structure to make changes to the required level.
The macro environment imposes sheer impact on the business practices as any organisation should assess all the positive and negative factors of the external environment in order to improve the business in coherence with the environment.
The external environment procures advantageous influences on the business as the external environment of UK allowed Ryanair in order to make improvements in the reputation of the low cost services of airlines industry due to the feasible political factors of the business. The impact of Brexit is evident in the political sphere and it eased the fair trade practices of Ryanair with a pressure to make continuous service improvements to avoid competitive challenges. The social factors of people to avail the low cost airline services is also advantage for the Ryanair to serve the customers. The economic factors like the standard income level of the people also allow the company to have customers with purchasing ability to avail services (Kourie et al. 2014). These feasible factors allowed the company to make coherent strategies to serve those customers. The alteration of the economy after Brexit also helped Ryanair to obtain feasibility from the strategy of providing services with low cost airlines. The moderate law regarding taxation in UK along with environmental laws are helpful for the company to continue their strategic action of low cost airlines services.
The factors of macro environment also possess some negative influences on the business of Ryanair. The impact of Brexit shed negative onus on the labour problem and employment issues in the country that caused problem for the airlines service to run the business properly (Griffin et al. 2016). The lack of skilled workforce and high prices of supplies after the Brexit created immense pressure on the operations of the Ryanair. This created problem for the company to maintain the strong working force in the market with wage rate as per the legal standards of the country. It always created a negative impact on the process of using the low cost strategic action of Ryanair.
The internal SWOT analysis can be a major factor for the determination of the internal weakness and strengths of a company along with the external threats and opportunities of the company. This can be helpful for the companies to help in the decision making process in larger spectrum as it can also help the procurement of cohesive decisions for improve the quality of the organisational operations. This can also be helpful to enhance the awareness of the management for fulfilling the organisational potentials for making coherent decisions to achieve the objectives of the business (Carr et al. 2016). The system of decision making needs proper knowledge about the strengths and weaknesses of the organisation to avoid any provision of futility in future for lack of ability to execute the plans. Hence, the proper information about the internal capacity of an organisation is required to make integrated strategic decisions to ensure developments. The effectiveness of SWOT analysis to get information about internal business environment is evident for the decision makers to make coherent strategies as per the provided information. It is helpful to provide quality support to the decision making process for ensuring the effectiveness of the decisions as per the abilities of an organisation. The analysis of the micro environment helps an organisation to get a succinct overview of the internal capacities to determine the scopes of that organisation to deal with the external factors of business environment with making proper business decisions.
The assignment has provided with detailed description of the three types of organisation along with their respective purposes and legal structure in the business. Apart from that, the very role of the interrelation between the size, scope and structure of business organisation is also elucidated in the assignment based on the organisations like Ryanair, Cancer Research UK and NHS. In addition to that, this particular assignment has provided insight of the environmental analysis of Ryanair with considering the macro and micro environmental factors along with their importance in the process of organisational decision making for fostering growth and development of competitive advantage.
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