Introduction

Business environment is getting complex with time and hence varied organisational structures, their types exist to make business operations smoother and competitive. In order to deal with market dynamics it is required to understand the variations involved in organisations in terms of their size, structure, legal framework. This impacts their overall business objectives and scope in the society. This report will analyse the macro factors through the lens of PESTLE and SWOT analysis. This in turn is going to help in understanding the macro and micro factors in context of different types of organisations and it will help in building a better understanding of business environment.

Types of organisation

Public: Public organisations are funded by government and their ownership and operation are handled by them only. These are generally large organisations for example healthcare, banks, education and transportation. The main purpose of these organizations is to serve the public at large by offering services which suits the public interest. The characteristics of public companies are, they are supervised strictly and works for social welfare by the government.

Private: These type of organisations are managed, controlled and owned by individuals. Their existence is based on earning profit. Private organisations can be small, medium or large for example retail. Technology, manufacturing etc. The legal structure comprises of varied modes like sole proprietorship, limited liability companies (LLC), partnerships etc. The major characteristics of these companies are they are highly involved in competition driven market, always strive to be at top, deals consistently with innovation and enhancing efficiency.

Voluntary Sector organizations: Those organizations which belong to voluntary sector, also known as non-profit sector are considered as voluntary sector organisations (Terry et al., 2020). The purpose of their existence is to enhance the value of life in the society by providing benefits and addressing issues which are of social concern. They do not work on the principle of earning profit for example, social welfare organisations, charities etc. They can be formed as charitable trusts, non-profit corporations, foundations etc. These type of organisations work due to grants and donations received by them.

Size and scope of a range of different types of organisations

• Large organisations: Those organisations which have capability to employ thousands of employees like multinational corporations are understood as large organisations like BAT. These organisations have substantial share in the market, enhanced access to resources and diverse portfolio of product ranges in terms of service and physical.
  Their scope ensures high growth as they have expanded their operations at global level and catering to international market. This has helped them to achieve the economies of scale, reduce the cost of their products without compromising on profitability and ability to enhance their efficiency levels consistently (Adamik & Sikora-Fernandez, 2021). These organisations often lead in the market due to innovation. They usually influence market dynamics, set high industry standards and first ones to adopt new technologies for instance Amazon.

• Medium-sized organisations: These organisations are operative within regional and national boundaries. They also recruits few hundreds of employees and are responsible for striking a balance between resources required by large corporations and focused small scale organisations. These organisations often cater to the needs of niche market as they deals in specialised products and services. Customer relationship management is their strongest area or expertise and they are in constant zest to compete with large organisations by enhancing their operational efficiency. They are responsible for economic growth, innovation and introducing new trends. They have adaptive capabilities and are able to respond to changing needs of customers quickly.

• Small organisations: These organisations employs people between 1-50 and are more suitable to operate in local markets. They deal with local customers offering price competitive products (Adamik & Sikora-Fernandez, 2021). They manage with limited resources and are often flexible in terms of customization and services offered. As they serve dedicated customer base they have loyal customers. These organisations are boosting local economies, responsible for community development and give employment to locals.

With this it can be said that size and scope of the organisation is responsible for influencing the objectives of the company as their focus shifts to their desired goals. For example, large organisations are more focused towards increasing their presence in multiple international markets whereas medium size organisations will focus on tapping niche markets where competition is not present or only one or two players are performing.

Link to the business objectives and product and services offered by the organisations.

In order to illustrate the linking of business objectives with structure, scope, and size two organisations British American Tobacco (BAT) and a medium sized company ABC are taken.

BAT has complex organisational structure which is also known as matrix structure essential to manage global operations. It has helped the organisation to manage market geographies and ensure that product lines are aligned with them at independent level. This further helps in achieving organisational objectives. For instance regional divisions of BAT can operate their functions semi-autonomously, managing sales and being in alignment with global strategies.

Taking size and scope in consideration BAT currently operates in more than 180 countries. It is making sure that opportunities related to e-cigarettes and heated tobacco are being tapped by it. Due to its presence in multiple locations it is able to invest heavily in research and development leading to product innovation and expansion in market.

While establishing link with business objectives it can be said that BAT is targeting market dominance and wanted to be leader through innovation. The complex organisational structure has helped it focus on different product lines and develop tailor made strategies for each product. For instance, regional divisions can customise their marketing strategies as per local requirements so that sales can be boosted. It has also helped to delve into legal know how by appointing legal representative with vast industry experience (Baptista et al. 2020).

A medium sized organisation works in a particular geographical setup and has dedicated departments to support operational efficiency and businesses. This organisation deals with specific market in the country and addresses local needs. It is agile and attentive towards markets dynamics at regional level.

Linking to business objectives it can be said that its aim is growth and being sustainable in competition while leveraging on marketing capabilities.

Analysis of Complexities

Those organisations which have complex structures face major challenges while communicating important decisions and changes. This leads to confusion and as a result roles get overlapped. As authority levels are not clear it leads to inefficiency. As a solution such organisations need to focus on communication channels and protocols so that they can contribute to the maximum.

Macro environment is usually not under control of businesses and hence it is essential to understand the level of impact it has. Its positive impacts are supporting technological advancements based on which innovation can flourish in the organisation and Next Generation Products can be developed (Ismoilova et al. 2020). Apart from this it is easier to offer healthier options to consumers based on their disposable income thus boosting sales.

The negative impacts are dealing with regulatory challenges like stricter laws for tobacco production and marketing. It leads to limited marketing strategies and availability of products at selected options only. The social trends in the market are also not favourable as health consciousness among consumers necessitated the need for adaptation in the competitive world.

PESTLE Analysis

SWOT Analysis

This is going to help BAT in strengthening areas like brand power and innovation so that global reach can be expanded and emerging markets can be tapped. This will also helps in addressing the shifting preferences of customer needs by offering them NGPs. By being more focused toward regulations and compliance BAT can avoid legal complications thus protecting its image in the market.

Critical analysis

In BAT context macro factors like economic conditions at global level and regulations are influencing strategic decision making capacity of the company. Due to economic slowdown sales have been reduced and stricter regulations have dented the image up to a certain extent. This has also helped the company to direct its efforts towards innovation and develop sustainable options.

BAT is focused towards positive organisational culture which has impacted its daily operations and leadership styles. This has helped in enhancing productivity and facilitating strategic execution of planning.

It has been observed that BAT has optimised decision making capacities because of which it is able to manage internal and external environment without compromising on it vision to be a leader (Oh & Han, 2020). It is adaptive to external changes and thus with the help of robust work culture it is able to stay sustainable by developing NGPs as an example of capitalization of opportunities.

Are you struggling to keep up with the demands of your academic journey? Don't worry, we've got your back!
Exam Question Bank is your trusted partner in achieving academic excellence for all kind of technical and non-technical subjects. Our comprehensive range of academic services is designed to cater to students at every level. Whether you're a high school student, a college undergraduate, or pursuing advanced studies, we have the expertise and resources to support you.

To connect with expert and ask your query click here Exam Question Bank