HND BUSINESS: An Analysis of Public, Private, and Voluntary Organizations

HND BUSINESS

INTRODUCTION

The business environment is a collection of internal and external factors that affect an organization's overall growth. These factors create a positive and hostile environment for the business. This report is based on the evaluation of size, the purpose of Asda, JCB, and save the children foundation for showing their public, private and voluntary structures. The report will also explain the interrelationship between these organizations and how they are interlinked with their corporate objectives and legal structures.This report will identify the various factors using PESTEL, and SWOT analysis and the report will assess the factors affecting the decision making in Asda. Further, the report will also analyze types of the business environment and the impact of various factors on the business operations of Asda.

Section 1

LO1

1. Types of organizations:

The Organization is an entity which aims to operate with a motive of earning a profit, social welfare or for any other business.

Figure 1: Types of business

(Source: Slideplayer.com)

Public sector organizations: Public sector organizations are the central and state government's responsibility whose primary goal is to provide the public with necessary facilities. These resources are managed on a large-scale basis and meet the public's needs at large (Christensen et al., 2020). Examples include BBC, Asda, cabinet office, child Maintenance Services, British Council etc. These departments are genuinely devoted towards providing the public with the services of cleaning, school, emergencies and hospitals etc. Asda Plc. is a supermarket chain in the UK which deals in groceries, general merchandise and apparels etc.

Purpose: Asda aims to provide goods and services that are affordable and can b bought by everyone.

Legal structure: As Asda is a public company, it can issue shares to the public, and there is no limit on the number of shares to be issued by Asda.

Private sector organizations: private sector organizations are wholly owned and maintained by individual groups whose motive is to earn profit and are not controlled by the state and are free to make their policies and plans for operating the business (Agarwal and Sajid. They follow the guidelines and regulations issued by the government. The suitable examples are JCB, Swire, Next, Tesco etc. JCB is a private entity that deals in manufacturing the equipment used for constructing agriculture, demolition and handling waste.

Purpose: JCB aims to provide its customers with the best quality equipment to provide facilitation in difficult work through machinery use (JCB, 2019).

Legal structure: Legal structure of a private company includes:

Figure 1: legal structure of private sector organizations

(Source: Author 2018)

Sole proprietorship: This Organization is managed and controlled by a single individual with unlimited liability. The owner is the risk bearer of the business and also liable to all the profits and control.

Partnership: partnership is a type of business that is owned by one more individuals under the same agreement. The liabilities and profits are divided on the basis of the capital invested. The liability can b limited or unlimited based on the teams and conditions of agreements. Grapevine is an example of a partnership in the UK which engages itself in operating stores with five members and a motive of profit earning.

Limited organizations Limited organizations are entities which are either limited by shares or limited by guarantee owned by individuals.

Cooperative: cooperative societies are organizations formed by a few individuals who mainly operate for financial motive. The Organization is either jointly owned or is owned by a single individual to control the enterprise. It runs on the concept of mutual assistance and works towards the end of a common goal. The cooperative press is a type of cooperative that exists in the UK for providing improvement in the lives of its members.

Voluntary organizations: These organizations are operated to achieve a common purpose and aim at promoting the welfare of society and bring socio-economic development. It does not focus on making profits rather look for ways to develop a society in rural areas and other facets of art and culture in different places (Gnes and Vermeulen 2018). Examples are Cancer Research UK, British heart foundation, save the children etc. Save the children is a UK based voluntary organization for the social welfare of children globally.

Purpose: the save the children foundation aims towards providing children with basic necessities of life such as food, shelter and clothing with health care and protection. They contribute towards improving their lives worldwide (About savethechildren, 2021)

Legal structure: The Organization can include non-profit, and non-governmental organizations and non-profit Organization generally exist for raising the standard of living in the individuals and doing social welfare keeping apart from the profit motive whereas a non-governmental organization generally not owned by the government but the members support organizations to raise awareness about health education diseases illness etc. These organizations are generally exempted from tax. They have to face difficulties in raising adequate funds as they are highly dependent on charity and donations.

2.Scope, size, structure and stakeholders of Organization under public, private and voluntary sectors.

Types	Scope and objective	Size	Stakeholders
Public	Public sector organization has the objective of providing public services, and its scope is to gain a large market share. Asda, as a public organization aim to provide customer satisfaction and products with at affordable rate.	Asda currently owns more than 633 scores which with annual revenue generation of £ 21 million and an operating income of £791 million and employs more than 1,65,000 employees for achieving the objective providing the best products to the customer for enhancing their customer satisfaction in giving the comparative advantage (About Asda, 2018).	Shares of Asda are traded publicly and include stake shareholders such as suppliers, unions and community, members from which the business grow its resources and has a liability to pay back.
Private	Private organizations are aimed towards generating profit for operating the business. JCB is a multinational company whose motive is to earn profit and expand its business operations globally.	JCB provides its equipment worldwide and currently employs more than 11000 and earns a net income of £341 million and generates revenue of £3.35 billion	Stakeholders of private organizations include competitors, suppliers, customers, founders, owners, CEO etc.
Voluntary	Voluntary organizations are aimed towards improving the lifestyle of people at large and solve social issues; Save the children is also includes the aim to improve the lives of children globally.	Save the children employs 11780 volunteers and employees who are working towards the betterment of children. The Organization was established in 1919 to for children welfare (Dets, 2019) This Organization operates in over 41 locations and generates £1.03 billion and helped many children and their betterment.	The key stakeholders include stakeholders such as volunteers and employees, vendors, suppliers, donors, vendors and public.

3.Analyze how the structure, size and scope of different organizations link to the business objectives and product and services offered by the Organization

On the basis of the above analysis, we can clearly say that scale, size and scope of business vary with the objectives of the Organization, and it can be analyzed that the scope of the public sector is very vast and it operates on a high level as it wants to achieve the objectives so that it can offer the best products and enhance customer satisfaction, for example, Asda the who has gained a lot of brand visibility in the market for the products that it supplies with quality, reliability and has become one of the market leaders in the UK (Al Yami et al., 2021).

On the other hand, JCB a private organization mostly deals in products which are used in house building sectors and link with Constructions. Its objective is to become a top producing company so that it can provide the highest Quality Services to its customers.JCB products are industrial, and high machinery based products which are highly significant in terms of their revenue generation and therefore, it provides a good way to earn profit for JCB.

For Voluntary Organization such as for example the Save the Children Foundation, the role, size and scope provides a bigger picture to the Organization as it comes under the Charity organizations in the UK and supports the children by providing them health care facilities, education, solving the financial problems and conflicts in the organizations. The Organization provides stability to children and provides them support through home care, shelter and other necessities of life (About savethechildren, 2021).

LO2

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

Every Organization varies in terms of its organization structure and organization functions are every Organization tries to link the organization functions with their objectives and structure (Cusimano and Sterner 2019). Here, taking the example of Asda, it follows the hierarchical functional structure, and it is analyzed that it has different departments such as PR, customer relation department and HR department. As one of the multinational companies which have to market products and services to be profitable, have to take care of employees so that the business can be operated on an efficient level. It also needs to handle the needs of day-to-day operation so that the profits can be maximized. For this management of Asda makes sure that the resources are made available to the business on time they can be used in an effective and efficient way.

Figure 2: Organization structure

(Source: Author, 2021)

For handling the business operations, it requires the management of resources both in the form of Finance and HR and their allocation and distribution as well. The objective of Asda is to offer affordable and cheap products to the public so that everybody can buy their products, and for this, they seem to maximize the concept of customer satisfaction (Pettigrew, 2014).

Asda wants to expand in the market by bringing development in their product. It requires the support of the marketing department so that proper marketing research can be done and an appropriate promotion strategy can be determined for the strategy of expanding Expansion will require a large number of people and increased business operations. Human Resource Department will also have to provide support so that it can employ a talented workforce with skills and abilities which can qualify for increasing business sales and revenue (Alzhrani, 2020).

If they need to increase sales and supply of the products in the market, they require more of the financial resources so that it can manage the day to day inventory level. Moreover, the business will also require the support of the production department so the economy of scale can be achieved, and supply can meet its demand (Pater and Cristea 2018).

In addition, the customer Service Department would be more effective if they are able to provide information on which the marketing team can do proper research so that the product can be developed and as per the accordance in preference of the customers and market needs. Different departments have different functions, and their interlinked with each other is very important for achieving the business objectives. For this, Asda must maintain department coordination for growth and development (Pettigrew, 2014).

Organization Overview:

Asda is a supermarket chain based in Leeds, England and was founded in 1949. It operates in various products such as groceries, food and drinks, general merchandise and financial services. It is currently owned by Issa brothers and is planning to expand its business operations.

(Source: Logopedia, 2021)

Section 2

LO3

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

Political factors: Political factors such as National and International regulations and directives which concern employment legislation, consumer rights, and taxes have to impact on any organization, and Asda is also facing the impact of these political factors like government instability has to impact on the Organization's decision making and for this, the Organization needs to monitor political environment more closely(Yang-Ngam et al., 2019).

Before Brexit U.K. was offering a very stable political environment, but the present state has created a lot of uncertainty in customers and Asda has also had to think to bring a change in the supply chain so that it can respond to Brexit effectively. The current covid-19 pandemic has made Organization change their policies concerning the environment to regulate trade more effectively and smoothly. As of now, Asda depends on the deal between the U.K. and E.U. to facilitate its consumers with quality products.

Economic factors: These are the factors which impact the level of economy in the country as they need to consider various economic factors such as the cost of credit, the competition level and pressure, the supply channels, the demand recession and inflation rate etc. These economic factors impact the company's pricing strategy, and due to the economic lockdown, many people have lost their jobs and reduce shopping activities. With this, Asda must reduce their pricing strategy to attract budget-friendly customers and then build a larger market (Pestel of Asda, 2021).

Social factors: social changes such as aging population, public awareness, the healthy lifestyle the gender and the demographics etc. plays an important role for any organization and by understanding these social factors Asda can lead to the introduction of new products and services in the market. It will also help the company to develop its segmentation strategies. As demand for Organic vegetarian, vegan food is growing rapidly, the demand for specific ethnic food is also increasing in the U.K. and other countries where Asda is currently operating so; they should focus on providing a large number of products which can cater to meet the consumer expectations on a larger level. This will help Asda expand its operations and maintain its current position in the existing markets (Jankovi? et al., 2016).

Figure 1: Macro factors

(Source: Author)

Technological factors: Technology is one of the issues which should be highlighted for Asda as the technology is going on a superfast level and mobile apps have taken a long important role to play for facilitating delivery services which are extremely important for as the supermarket. Asda is constantly working on making the best use of technology. Soon, they must also focus on technology up-gradation so that it can reduce the time of delivery services and can facilitate enhanced consumer satisfaction (Pestel of Asda, 2021).

Environmental factors: Green economy, hazardous waste, environmental pollution, organic food and carbon footprint are many of the fewer issues that Asda must focus upon. As people nowadays and much aware of the impact of organizations that have on the environment, it is very important for these organizations to support the environment as are facing constant pressure from the customers. In order to operate in an environment-friendly manner, they must also follow environmental friendly methods and take initiatives to be environment-friendly company and take various measures so that it can support and protect the environment (Ebrahimi and Banaeifard, 2018).

Legal factors: Asda must follow the rules and regulations of the country in which it operates, and any breach can result in legal actions by the country. It has to follow the minimum wage act, cannot dismiss and employee unfairly. It should also take into account the employee problems and issues and maintain a peaceful, supportive and effective culture in the Organization (Yang-Ngam et al., 2019).

Asda is a retail Supermarket chain which has experienced many changes in the past as a grocery store and some of the important changes that have been mentioned below:

Smaller size business such as Aldi has provided tough competition through their innovation. As there is no more the cheapest grocery store and Aldi have taken this place as the best firm to offer huge discounts. Online shopping has become more popular to customers as they have a busy schedule, and due to current covid-19 pandemic, everyone wants to prepare a home delivery. Due to these changes in the external environment, Asda needs to develop strategies which can help in them in sustaining the market and retaining back its customers (Pestel of Asda, 2021).

2. Positive and Negative effect of macro environment

Macro environment impacts a business and increases its complexities risk and offers positive and negative changes in its operations. Here is the positive and negative impact of various factors within Asda.

Factor	Positive impact	Negative impact
Political factors	Positive changes of political factors will help Asda to formulate strategies through which it can offer its products at low prices and can gain a competitive advantage in the business (Sammut?Bonnici and Galea, 2015)	Negative impact would be that it has to operate on low margins and provide products at low costing to maintain sustainability in the market (Pestel of Asda, 2021).
Economic factors:	The positive impact of this economic downturn would be that the Organization can offer its products keeping prices at low and attract budget-friendly customers.	The negative impact it would be that it will not be able to charge premium pricing from its customers and cannot attain higher profit margins(Pestel of Asda, 2021).
Social factors:	Ts major increased in U.K. population is of aging people, and this has it increased the demand for medicines and glasses keeping this in mind Asda can make a sustainable advantage where it can meet the needs of the aging people (Solaja et al., 2016).	The negative impact would be the competition has increased with respect to Aldi, and they are also offering the products at very low prices for this the customer might shift towards purchasing from them rather than going to a supermarket (Pestel of Asda, 2021).
Technological factors:	Asda has extended its operation in the online sector and offering products which are based on profit generation. Technology has ensured Asda through which it can reduce costs and improve the quality and can introduce innovative products in the market. This, in turn, will improve the efficiency of business operations and can help in enhancing customer satisfaction. People sharing data and shopping online through the website has shifted the focus of Asda, and they have learned to focus on saving money by keeping the cost low (Shatskaya, et al. 2016).	The technology in the market has increased the competition, and each player is trying to expand its business operations on such online platforms. This can create challenges for Asda as for setting up the customer base Asda would formulate Strategies by keeping the prices lower as already offered by the competitor such as Aldi. (Pestel of Asda, 2018).
Environmental factors:	All countries are supporting and trying to reduce carbon emission, and Asda is reducing its carbon emission for being eco-friendly and is using 40% of energy-efficient sources through the use of solar panels to generate more energy. They are focusing on reducing the production of carbon emission in the manufacturing process. These products will help Asda in making it an environmentally friendly company (Pestel of Asda, 2018).	Ignorant of such environmental issues my leads to damage and its reputation and goodwill which with which will lead to a decrease in the brand value of the Organization (Solaja et al., 2016).
Legal factors:	Asda needs to follow some of the new laws after Brexit and provide various laws for employment so that the employee satisfaction can also be a balance, and they can be retained in the Organization for longer Run.	If it does not follow these legal laws and still continue to operate the business on its own terms and conditions, then it might harm the reputation of the business and can also legal consequences (Shatskaya, et al. 2016).

LO4

3. Conduct an Internal and External analysis of specific organizations to identify strength and weakness.

Internal analysis
Strength It offers various kinds of services and products and uses effective marketing campaigns which have resulted in the successful expansion of its business operations and increased its client base (SWOT of Asda, 2020). Asda employs more than 140,000 employees and operates through 500 stores that have aide Asda in gaining competitive advantage in the marketplace (Bull et al., 2016). Asda is socially responsible as it takes CSR initiatives by taking into consideration, the various factors of the environment and this has lead to enhanced business reputation. Asda has been successful in expanding its client base as it maintains constant contact with its customers through the usage of social marketing and the Internet (SWOT of Asda, 2018).	Weakness Increased competitions have forced Asda to reduce its presence in the market. Asda must focus on lowering its prices through which it gains competitiveness in the market (Phadermrod et al., 2019). The inability to reduce prices has restricted Asda to expand its operations in other markets and also to gain a market advantage based on low prices (SWOT of Asda, 2018).
External analysis
Opportunities With an increased ageing population in the U.K., Asda can expand through a wider range of products such as medicines, glasses, etc. (SWOT of Asda, 2020). It has the opportunity of expanding in other markets such as India and China as a result of with increased population and price consciousness of consumers (Sarsby, 2016). Boosting the sales volume with the help of the online platform and website portals can aid business in expanding its presence in the market place.	Threats The increased Price war and fluctuations in the U.K. currency have to lead to change in the economy which has resulted in an increase in the level of competition, and this has created pressure on Asda to maintain its prices at low. Ever-changing economic conditions and government policies have forced Asda to suffer from losses due to increase tax rates(SWOT of Asda, 2020) This, lead Asda to still run operations by minimizing the cost and offer products at low prices with lesser profit margins (Sarsby, 2016).

4. Explain how strength and weakness interrelate with macro factors

Strength:

From the above analysis of PESTEL and SWOT of Asda, it is clearly identified that macro factors are interrelated with the strengths and weaknesses of the Organization. For example, the political factor of increased taxes has benefited as the Asda is able to gain attention from the customers in the rural area. As they still operate on low prices, this has helped them in developing a strong base of customers and had resulted for them to take effective decisions regarding expanding in different areas and locations (Hamilton and Webstor, 2018).

The technological factor has led Asda to gain competitive advantage by offering the product on convenient online platforms to the customers, this has added to the strength of Asda through which it can maintain constant contact and networking with customers and provide them with the satisfactory experience.

In addition to this, environmental factors have helped Asda to develop competitiveness in the market through CSR initiatives. This has led to an increase in the goodwill and market value of the Asda. The CSR activities have helped Asda in showing the concern towards the society, the use of new technologies also aided to expand its techniques and adopt market campaigns through the use of social media and internet which has resulted in boosting its sales volume and increasing its customer base (Anastase, et al. 2016).

Figure 2: Impact of internal and external factors

(Source: Author)

Weakness:

However, the negative impact of economic policies on Asda has forced the Organization, through which it has to continue to operate on low prices, and it has to also adopt tactics to survive in the market and lower its profit margins. Due to the tough competition that is present in the market and reduced trade barriers has increased the competition where new businesses are easily entering the market. This has added to the weakness of Asda as it has reduced its global presence (Holland and Lam, 2014).

Asda is forced to operate on low-profit margins and the change in economic policy and the recent recession and price fluctuations in the currency of the country have also impacted its business operations. Due to the covid-19 outbreak and economy downturn, Asda has to restrict its expansion plans, and due to the shift in the global economy, this has impacted on sales and growth of the business. Asda has to delay its expansion plans due to less purchasing power with current customers and economic breakdown in the world economy (Javeed and Mukhopadhyay, 2017).

CONCLUSION

This report has analyzed the various types of organizations and their scope and structure. Further, the report has made an analysis of types of organizations and their relationship with structure and corporate objectives. To conclude, the structure and functions of an organization must be interlinked so that the organization can achieve its goals and objectives. This report has also analyzed that impact of macro factors which can lead to productivity, growth and profitability in the business. It has analyzed that Pastel and SWOT analysis are helpful for providing extensive analysis of the external and internal factors that can impact its business operations. It can be concluded that Asda has more strength in the form of its market presence; it needs to plan effective strategies for future growth and development and enhanced profitability.

References

Books and Journals

Agarwal, P. and Sajid, SM, 2017. A study of job satisfaction, organizational commitment and turnover intention among public and private sector employees. Journal of Management Research, 17(3), pp.123-136.

Al Yami, M., Ajmal, MM and Balasubramanian, S., 2021. Does size matter? The effects of public sector organizational size on knowledge management processes and operational efficiency. VINE Journal of Information and Knowledge Management Systems.

Alzhrani, A.M., 2020. Outsourcing human resource functions and their impact on organizational performance. Global Journal of Management And Business Research.

Anastase, I.B. and Grigorut, C., 2016. The International Macro-Environment of an Organization. Ovidius University Annals, Economic Sciences Series, 16(1), pp.7-13

Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sites, N., Baulcomb, C., Lumbini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., 2016. Strengths, Weaknesses, Opportunities and Threats: A SWOT analysis of the ecosystem services framework. Ecosystem services, 17, pp.99-111.

Christensen, T., Lægreid, P. and Røvik, K.A., 2020. Organization theory and the public sector: Instrument, culture and myth. Routledge.

Cusimano, S. and Sterner, B., 2019. The Objectivity of Organizational Functions. Acta biotheoretica, pp.1-17.

Ebrahimi, A. and Banaeifard, H., 2018. The influence of internal and external factors on the marketing strategic planning in SNOWA Corporation. Journal of Business & Industrial Marketing

Genes, D. and Vermeulen, F., 2018. Legitimacy as the basis for organizational development of voluntary organizations. Handbook of community movements and local organizations in the 21st century, pp.189-209.

Holland, R. and Lam, B., 2014. Managing strategic design. Macmillan International Higher

Holland, R. and Lam, B., 2014. Managing strategic design. Macmillan International Higher

Jankovi?, M., Mihajlovi?, M. and Cvetkovi?, T., 2016. Influence of external factors on business of companies in Serbia. Ekonomika, 62(4), pp.31-38

Javeed, N. and Mukhopadhyay, D., 2017. Exosomes and their role in the micro-/macro-environment: a comprehensive review. Journal of biomedical research, 31(5), p.386.

Pater, L.R. and Cristea, SL, 2018. A systemic characterization of organizational marketing. Procedia-Social and Behavioral Sciences, 238, pp.414-423

Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based SWOT analysis. International Journal of Information Management, 44, pp.194-203.

Sammut?Bonnici, T. and Galea, D., 2015. SWOT analysis. Wiley Encyclopedia of Management, pp.1-8.

Shatskaya, E., Samarina, M. and Nekhorosheva, K., 2016.PESTEL analysis is a tool of strategic analysis in international markets. SCOPE ACADEMIC HOUSE B&M PUBLISHING, p.47.

Solaja, M.O., Idowu, E.F. and James, E.A., 2016. Exploring the relationship between leadership communication style, personality trait and organizational productivity. Serbian Journal of Management, 11(1), pp.99-117.

Sorsby, A., 2016. SWOT analysis. Lulu. com.

Yang-Ngam, C., Chankoson, T. and Aodton, P., 2019. Influence of internal and external factors on supply chain information system risk management implementation. International Journal of Supply Chain Management, 8, pp.612-623.

Pettigrew, A.M., 2014. The politics of organizational decision-making. Routledge

Online

About Asda, 2018 [Online] [Accessed through] < https://www.asda.com/about > [Accessed on 9th February 2021]

About save the children [Online][Accessed through] < https://www.savethechildren.org/us/about-us >[Accessed on 9th February 2021]

CB, 2019. About us. JCB,  [Online] [Accessed through] < http://www.jcbeurope.eu/about/company/organisation.html > [Accessed on 9th February 2021]

Logopedia, 2021[Online] [Accessed through]< https://logos.fandom.com/wiki/Asda >[Accessed on 9th February 2021]

Our story, Asda [Online] [Accessed through] <https://corporate.asda.com/our-story/company-facts >[Accessed on 9th February 2021]

Pestle of Asda, 2021 [Online] [Accessed through] <https://howandwhat.net/pestel-analysis-of-asda/ >[Accessed on 9th February 2021]

Pestle of Asda, 2018 [Online] [Accessed through] <https://www.howandwhat.net/pestel-analysis-of-asda >[Accessed on 9th February 2021]

Pestle of Asda, 2018 [Online] [Accessed through] <https://www.howandwhat.net/pestel-analysis-of-asda >[Accessed on 9th February 2021]

slideplayer.com 2021: [Online][Accessed through]https://slideplayer.com/slide/14672109/ [Accessed on 9th February 2021]

SWOT of Asda, 2018 [Online] [Accessed through] < https://www.mbaskool.com/brandguide/lifestyle-and-retail/2040-asda.html > [Accessed on 9th February 2021]

SWOT of Asda, 2018 SWOT of Asda < https://www.mbaskool.com/brandguide/lifestyle-and-retail/2040-asda.html > [Accessed on 9th February 2021]

SWOT of Asda, 2020 [Online] [Accessed through] < https://www.mbaskool.com/brandguide/lifestyle-and-retail/2040-asda.html >[Accessed on 9th February 2021]