This assessment will cover certain questions which are like -
- Elaborate the scope, size and the type of company.
- What are the organisational functions of the company.
- Elaborate the impact of external environmental factors.
Business environment means set of function or activity of company that help in increasing profitability and managing business. Any Organisation run its enterprise successfully by creating good business environment inside the firm. Business can be effect of external and internal factors such as: supplier, customers, competitors, new technologies and changes in law. Healthy business environment is very helpful to motivate employees and other staff members. It impacts on business growth and success (Wetherly, 2014).
It also attracts customers towards buying products. In this report it defines the purpose and structure of public, voluntary, and private organisation. This project explain scope and size of various types of company's and their interrelationship between organisational structure and objectives. This project also explain weaknesses and strength of company effected by external factors.
P1 Define different types, scope and size of company's
Organisations work for making products according to customers needs and demands. In the world there are many companies who operate their work by giving high performance for the purpose of making its business successful and better than their competitors. There are three types of organisation such as public, private and voluntary (Belás, and et.al., 2015). They all had a different structure and purpose of business.
1. Public organisations
public company's governed by government or public-ally controlled through funding. Function of public sector organisation is to provide good quality products and services to people and make them happy (Bouckaert, Peters, and Verhoest, 2016). They need to follow rules and regulation applied by government in society. For example, British Airways is the most famous public organisation in all over the world. It is the biggest airline in UK. They had a huge number of passengers more than the other airlines. Purpose of British Airways is to serve its best quality services and provide good experience to customer. The main motive of this organisation is to achieve its goal to become leading airline company in the world's. They focused on client service at all stages of person journey.
2. Private sector organisation:
private organisation is a part of state or country economic group that has operated by companies and individuals owner. This sector run its business for purpose of making success and profit through providing their products and services. Private sector is divided in two types small and medium size such as hospitality, leisure, food and retail. For example, Ryanair is private organisation. It established its headquarter in Dublin, Swords and London (Anheier, 2014). It is a lower cost Irish airline founded in 1984. Ryanair purpose is to offer low price services to their passengers serve within good quality and satisfaction of people. They want to increase more passenger than the other airlines has. They focus on cost containment and efficiency business activity. They serve its services equally to customers without and differences . Organisation goal is to increase its passenger numbers across 180 million by 2024.
3. Voluntary organisation:
voluntary sector company is a group of people who served its services in society for the purpose of helping people. For example, Cancer research is a voluntary organisation in UK. They perform without caring any motive of making profit. Usually they collect funds through organizing charities functions, the purpose of Cancer research is to provide help to person (Zald, 2017). This type of firms run its business through board members or other trustees.
Legal structures of organisations
Sole partnership, Partnerships, limited partnership and corporation are various types of structures for companies. Organisations establishing their business for making profit, but it still not possible without following any legal structure in firm. This will help in managing their process of overall performance.
- Sole partnership, according to this structure individual person operates business in marketplace. Advantage of this function is that one person was owns all the profit by selling products and services to customers. But on the other side it also has disadvantages that individual owner is responsible for loss in business.
- Partnership, this process help in managing business at its financial situations. One or more person run organisation activity equally. They both are responsible of profit and loss in business.
- Limited partnership, in this activity of business partners avoid individual choice liability. Thus, for limited partnerships they have to paid or followed different income tax rules. This type of function is based on written agreement which is very important in business.
- Corporation, it is very complex organisation business. The owner of corporation business has its own personal choice and decisions. They can increase its bonds and sales of shares to achieve profitability and growth of business.
P2 Explain the scope and size of different organisations
British airways is a public organisation in UK. They provide their best or good quality services to customers. The scope of this company is to complete its task by managing all the requirement and objectives in business. They have a large business structure by having a huge range of passengers. They fly over in 183 destinations, British airways has a second largest position in airline business.
Ryanair worked under private companies. This organisation scope is to earn more profit by serving its high performance to clients and provide full satisfaction (Rahim, 2017). They need to achieve its business objectives by attract more people towards their business. Ryanair served their flying services in over 220 destinations.
Cancer research organisation work for people who need help in difficult situations of life. They arraigned charity functions at huge level for collecting money for saving people life's. They focused on healthy policy's. In the company they had 40,000 volunteers in business and 3,964 employees are working inside firm. It was a type of charitable organisation that work is to served its services in society.
P3 Organisational functions
Ryanair is a very famous airline in the world. Their base at London and Dublin airports, the aim of this organisation is to spread smile on the face of customer’s through providing its great services and travelling packages (Harper, 2015). Michael O' Leary is the CEO of the company. Ryanair has followed different types of organisational functions such as:
1. Marketing functions -
Ryanair spread its business and service information to customers through marketing. It was an effective process of achieving services and goods by the help of customers. Customer satisfaction is very important for succeeding in business. Marketing is the activity decided by owner and manger for the purpose of making relationship with people. Ryanair used this activity for promoting their airline business all over the world through advertising in magazine, newspaper, television, holdings and source of media. They provide all the information about its services such as travelling package, discount offers on booking etc.
2. Finance functions -
finance is very important in any business. It was depended on three decisions. First is investment decision, this will be taken by higher authority of Ryanair. The process of investment decision is based on planning financial conditions and budget. Second, is financial decision, this type of function is based on according to the term of organisation. It might be long and short term process. Finance markets and business maintains both relationship are very important in making profitability by serving quality products and services. All the decision is make by shareholders and other management department of Ryanair.
3. Human resource function -
HR is the most important part of successful organisation. Ryanair HR department focused on human activity in business. They focus on growth of employee performance in Ryanair because it is very essential and effective for business development. This department worked for motivating their employees at workplace by having one purpose of achieving goals and objectives of business. Human resource have many functions in organisation like selection, promotions and transfer, training to new workers, industrial relations etc.
4. Innovation function
this function helps in attracting customers towards the Ryanair airline services. It is possible when organisation research in marketplace about using of new technologies that help in completing customers demands and requirement. Innovation get developed business at different level. Through using this process Ryanair make different strategy and plans that improve its position in business world. After knowing its competitors plans through research they get innovation in their recent services.
Human resource, innovation, finance and marketing function are related with each other within same purpose of achieving organisation objectives. All this activity helps Ryanair in making its business more progressive than the other firm have.
P4 Impact of external environment upon business operation
Macro environmental factors effect business in negative and positive ways. PESTEL is the best process of understanding external activity and its impact on organisation growth.
political environment effect business and developing process. Ryanair business get impact by political factors in positive and negative ways. Some time government make laws according to make profit in business, on the other side changes in taxes activity of government effect business growth and productivity. Changes in tax laws forced Ryanair to increase its cost on tickets (Mkude, and Wimmer, 2015). This will decrease its customers range and employee turn over because this type of changes stop their income source. On the other side political factors make stability in business.
economy environment impact Ryanair business. Changes in economy at the level of micro and macro factors effect organisation profitability. Unsuitability in society effect company growth, it creates negative environment at workplace. But stability in economy increase Ryanair business and help in achieving organisation objectives. It depends upon the demands and requirement condition of economy.
Social factors played its important role in raising organisation profitability and success. Ryanair focused on values and belief of people and then create their services. For example, Ryanair need to research in society about people like and dislike and what is the latest trends among them. Social factors include education, interest etc. of people. Organisation made those services which is suitable for every people where its educated or not, because without having understanding of society trends business company does not grow in marketplace.
most of organisation do not work according to new technologies that will affect its business. Ryanair need to analysis market areas to know about the latest technology used by competitors. It is very necessary in business growth. For Example, new technology in market place impact on organisation process of making profitability because Ryanair do not have the knowledge of this activity. Thus, for this they need to analysis market and followed their process according to it.
Ryanair is an airline company. They fly many times in a day, changes in weather affect its business growth. Such changes are climate, heavy rainfall etc. by having all these climate changes customer’s get removed their involvement by using its services. Environmental factors highly impact upon Ryanair business. According to changes in situation airline need to stop their take-off process.
every organisation need to follow legal process to run their business successfully. Legal factors is based on customers' health and safety, clients rights and laws. Ryanair airline followed legal structure made by government. They focused on customer’s safety and health when they are travelling under its process. Organisation need to provide consumer services according to its rights. Changes in legal factors some time impact negatively upon business because firm does not have much fund for modify their services by sudden changes. All this analysis help in making business new plans and strategy according to the situations that helps in achieving business more profitable than its competitors in world.
P5 SWOT analysis of Ryanair
SWOT is the best process of understanding strength, weaknesses, opportunities and treats about themselves. Ryanair make this process in its business activity.
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Strength of Ryanair:
Ryanair strength is base on low cost price services. They set their prices at per kilometre, cost per passengers and per seats in flight. Organisation established their business in European marketplace by covering 200 destinations or 1800 routes by providing low cost services. Their another strength is that they provide good quality services to customers better than its competitors (Blockeel, and et.al., 2016). Low price is the advantage of firm. They are in the largest second airline company in Europe for transporting many passengers than other airlines have. Low fares, innovation, management focus and size is the strength of this organisation.
Weaknesses of Ryanair:
brand perception is the weakness of Ryanair. According to customers firm low cost offer is decrease it brands image in business world. Low frequencies, secondary airports, EU sensitivity all are the weaknesses of this firm. Their flat and low cost mention as its weak point in society. They have low frequency in routes.
organisation learn its process and make improvement in customer’s services. They allowed 20 kg baggage in flights and also offers many other services to people that is the process of making opportunities in growth of business. Ryanair offers passengers opportunity to choose their own seats without and difficulty. They are very flexible in changing ticket according to passengers situations and requirement. It also creates new aircraft services to people that aim is to provide full satisfaction according to their needs.
Ryanair is the airline organisation, they need to focused on flying over the sky. Accident is the threat of this firm at the time of running its process. Loss of focused and competitive response in market area within serving same services and products to customers.
The main purpose of doing this SWOT is activity is to understand Ryanair strength and weakness. After completing process they get improved and developed its weaknesses to faced its competitors strategy and planning in business.
P6 Inter relation of strength and weakness with external factors
PESTEL and SWOT get related with in business of Ryanair. Using new technology and analysis social environment is the strength of firm because if they are using the latest technologies in their business activity they can attract consumers towards their services and another reason of its strength is that they can also identify the latest trends in economy among the people and focused on its value or belief that helps in making their products and services according to it.
Ryanair weakness is based on changes in political and legal process of government. This changes affect its business process and stop their growth of succeeding in market areas. Environmental changes is another weakness of firm because it decreases it profitability than its competitors.
It has been concluded in present study that business and business environment is very important in making firm productivity or growth. In this report it explains the different types of organisation that have different way of purpose and legals structures. It also describes organisations size and scope, and present relationship between company's various functions. Thus, for analysing PESTEL and SWOT they get know the strength and weaknesses of company and their interrelation with external environment factors.
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