Explain the different types, size and scope of organisations 1

LO1: Explain the different types, size and scope of organisations...3Tasks 1: You are to write an individual report explaining the followings to the CEO:...3LO2: Demonstrate the interrel

CONTENTS 1

INTRODUCTION 2

BODY 3

LO1: Explain the different types, size and scope of organisations 3

Tasks 1: You are to write an individual report explaining the followings to the CEO: 3

LO2: Demonstrate the interrelationship of the various functions within an organisation and how they link to organisational structure 9

Tasks 2: You are also asked to write a report on the interrelationship of the various functions within VinFast and how they link to organisational structure 9

LO3: Use contemporary examples to demonstrate both the positive and negative influence/impact the macro environment has on business operations 12

Task 3: Demonstrate both the positive and negative influence/impact the macro environment has on VinFast Auto’s operations You MUST use PESTLE model 12

LO4: Determine the internal strengths and weaknesses of specific businesses and explain their interrelationship with external macro factors 14

Task 4: Determine the internal strengths and weaknesses of VinFast and explain their interrelationship with external macro factors You MUST use one of the Internal Environment Analysis models taught in the class 14

CONCLUSION 15

REFERENCES 16

This report is about Business and Business Environment The writer has learned about the types, sizes, scope, and interrelationships between functions and business environment of VinFast Auto In the article there is an analysis of different types of organizations; Size and scope of organizations; the interrelationships of different functions in VinFast and how they link to the organizational structure; VinFast's PESTLE and SWOT models The data sources used by the researcher are fully attached

In addition, this essay also timely analyzes the key factors to make Vinfast more and more developed, reputable and has a foothold in today's difficult market

BODYLO1: Explain the different types, size and scope of organisations.

Tasks 1: You are to write an individual report explaining the followings to the CEO:

1.1 Different types of organisations.

1.1.1 Differences between for profit and not for profit and non-government organisations (NGOs).

For profit organisations Not for profit organisations Non-government

organisations

Meaning

A for-profit organisation is

one whose primary goal is to

increase the wealth of its

owners or to make a profit

from its operations

An NPO is a companycreated to offer goods andservices to the public andruns under the tenet that none

of its members wouldpartake in the company'searnings or losses

An NGO is a governmental organisationthat was founded by regular

independently of thegovernment

Objective

To gain profit The majority

of businesses are for-profit

entities that provide a good

or service to their clients

To advance any desirablecause, including trade,science, research, or the arts

To promote awareness ofissues such as women'sempowerment, human rights,and the economy as well associety

For example Airlines, Fast food NHS, Universities UNICEF, The Asia

In the areas of forestry, fishing, industry, and building

Entire financial

In the areas of services and commerce

Entire financial

Micro-Enterprise improve purchasing power, cut

production costs, and bring convenience in addition

to producing high-quality jobs in the desired field

In low-income communities, even the government

supports the growth of microenterprises It

promotes economic growth and benefits businesses

as well In addition, such businesses aim to promote

sustainable development

Small and medium-sized e nterprise

Small and medium-sized enterprise strengthen themarket's competitiveness, act as a driving force inthe industry, and better meet customer demands.SME production of goods and services is involved

As a result, they boost domestic exports andinvestment while shaping the GDP

Objectives

Micro Enterprise

-Promoting commerce and industry in an

economically underdeveloped area is one of the

major goals of microenterprise Thus, it promotes

the growth of the economy The inclusion of

underdeveloped areas in the national development

strategy is made possible by microbusinesses To

promote regional development is their goal

Small and medium-sized e nterprise

Small and medium-sized businesses increaseemployment opportunities, promote economicgrowth in rural and undeveloped areas, balanceregional disparities, and guarantee the bestpossible use of untapped resources throughoutthe nation It also raises people's quality ofliving by ensuring an equitable distribution ofwealth and income and by addressing theunemployment issue

Supply of goods and services

Micro-Enterprise

The following types of firms are categorised as

microenterprises: small farmers; street vendors;

carpenters; plumbers; independent mechanics;

lawn and landscaping service providers

Microenterprises include those who own bakeries,

caterers, dry cleaners, tailors, and seamstresses

Small and medium-sized enterprise

In many nations, it include retail or service ventureslike convenience stores, mini-marts, bakeries ordelicatessens, hairdressers or tradespeople, hotels,motels, photographers, very small-scalemanufacturing, and Internet-related ventures likeweb design and computer programming.Professionals including lawyers, accountants,dentists, and doctors run small enterprises (althoughthese professionals can also work for largeorganisations or companies)

partnerships and private limited companies.

- Private Limited Company

Small businesses that are privately held and whose liability is constrained by shares tend to be privatelimited companies There aren't many stockholders because the company is small and privately held.Furthermore, private limited corporations are unable to list their shares on the stock exchange becausethe shares cannot be openly traded Because it enables them to reduce personal risk and seek protectionfrom personal liability, many SMEs operate as private limited liability companies in order to obtaincapital through the selling of shares

1.2Size and scope of organisations

1.2.1 Differences between large, medium-sized and small organizations including objectives and goals, market share, profit share, growth and sustainability.

Large organization Medium-sized and small organizations Objectives and goals Wider, more fields Narrower, more direct

Market share To having a broad market presence Deeply integrate themselves into a smaller

target market

Growth Better growth due to high stability Poorer growth due to high flexibility

Sustainability

More sustainable because the source ofcapital attraction to maintain businessoperations is high

More difficult to be sustainable becausethe source of capital attraction to maintainbusiness operations is low

1.2.2 Global growth and developments of transnational, international and global organizations International organizations have one home country that serves as their operational hub Only

domestic goods are imported or exported by these businesses Therefore, there is no foreigndirect investment outside of the home country and the offices are solely present there Thedomestic market in one's own country serves as the key source of both functioning and tactics.They must continually react to domestic trading customs For example: Apple, Spencers

Global organizations despite having sites across several nations, they have managed to

develop a single corporate culture and a single set of procedures that support a more effectiveand efficient single global corporation For example: McDonald's

Transnational organizations are far more complicated than that It is a business organisation

that runs substantial buildings, conducts operations across several nations, and does not identifywith any one of them as its national home The ability to maintain a higher level of

global firm For example: Unilever, Microsoft, Pepsico Foods, Nestlé, Honda

1.2.3 Differences between franchising, joint ventures and licensing.

Definition

It is an arrangement inwhich the franchisorgrants the franchisee theright to utilise their brand

or business model as anindependent subsidiary ofthe franchisor's company

in exchange for a fee(franchiser)

It is an arrangement inwhich two businessesshare resources or offersupport to one another inexchange for a paymentand a certain amount oftime

In a licencing agreement,

a business (the licensor)charges a licensee aroyalty in exchange forgiving them the right toutilise its intellectualproperty (IP) or create itsproducts

Governed by Franchise Act 1998 Joint Venture

Agreement

Contract laws between parties

Control Franchisee is under the

franchisor's control - Licensee is not under the control of the licensor

Advantages

Franchisee receives access to a regionally diverse market without sacrificing the value of their brand

Franchisee receives ongoing assistance from the franchisor to grow an existing prosperous firm

Acquire new knowledge and skills

Use of superior resourcesShared expensesEstablishes long-lasting commercial connectionsGreater likelihood of success

Without making a significant capital expenditure, the licensor obtains vertical integration in the market.Improves the brand's value

By relying on a strong brand and removing competitors, the licensee enters the market

Disadvantages

Franchisee must make a significant upfront commitment to uphold the franchisor's quality requirements

Franchisees only have a limited amount of control over how the firm is run

Rarely is a joint venture's goal completely obvious

Potential for unequal participation and accountabilityConflicts involving culture and managementInvolves extensive planning and study

Clear communication islacking

The eventual exploitation

of the licensor's IP rights

is not under its control

Example

McDonalds, KFC, Domino’s Pizza

Proton and Geely,Mazda Malaysia

Walt Disney’s Characters, Ferrari Logo, Microsoft Office,

Industrial structures

Considering the concentration and competition in the market is one of the key techniques to examine industrialstructure The degree of industry concentration, or the share of sales generated by the biggest companies, oftendetermines the level of competition Perfect competition, duopolies, oligopolies, and monopolies are sometypical industrial structures

Competitive analysis

In order to understand the products, sales, and marketing strategies of major rivals, one way is to do acompetitive analysis Conducting competitive market analysis has many advantages, including helpingbusinesses execute stronger business plans, get rid of rivals, and gain market share

Porter’s Five Forces framework is a systematic approach for analyzing industry structure

1.2.5 Market forces and economic operations e.g scarcity and choice, supply and demand, income elasticity.

- Market force are what determine how much something costs and how readily it's available It

essentially describes how market economies function

- Economic operations: when a project is run economically, its overall benefits are maximised

while its overall expenses are minimised and a predetermined predetermined prior period coverage(PPC) allowed margin is maintained

- Choice and scarcity: There are a finite number of products and services that can be created at any

given time This is due to the severely insufficient current resource supplies Land, labour, capital,and entrepreneurship are some of these resources

These production inputs, also known as factors of production, are utilised to create the items andservices that are classified as economic goods and have a price These facts support the Law ofScarcity, which asserts that while human desires are essentially limitless, the resources available tofulfil these desires are scarce Scarcity is thus explained as the primary issue in every civilization.The primary economic issue of choice is caused by a lack of resources A society must makedecisions because it cannot provide all of the goods and services its citizens desire

To generate one good, one must decide to produce less of another good Choice therefore requiresgiving something up Every community therefore has to decide what it is ready to give up in order

to generate the products it values the most

- Supply and Demand: Economists contend that this assumption is sound since price changes

happen considerably more quickly than changes in other variables that could influence supply ordemand Changes in taste, shifts in the status of the economy, and long-term adjustments tomanufacturing capacity are a few examples of these additional elements (such as the construction

of a new factory)

- Income elasticity: The relationship between a product's demand and a consumer's income is

described by the economic concept of income elasticity To put it another way, a person's incomeelasticity determines whether or not he will buy a thing if his income increases or decreases.Companies therefore need to understand how customers will respond if their revenue changes

and expectations.

A stakeholder is a party with an interest in a business who has the potential to influence or be affected

by it A typical corporation's investors, employees, clients, and suppliers make up its mainstakeholders Businesses constantly and inescapably experience the effects of stakeholder requirementsand expectations Businesses are set up and run to make profit for its owners and investors, thereforethey exist to match the expectations of a single stakeholder in particular Due to their potential to bothassist and obstruct business operations, other stakeholders must also be taken into account Forinstance, a company should show consideration for the local areas where it operates because doing soenhances its reputation and expands its market presence On the other side, if the company decides todisregard the host community, this will reflect poorly on its reputation and, if things get out of hand,may lead to additional sanctions

LO2: Demonstrate the interrelationship of the various functions within an organisation and how they link to organisational structure.

Tasks 2: You are also asked to write a report on the interrelationship of the various functionswithin VinFast and how they link to organisational structure

The various functions within an organization:

Marketing

Includes everything a business does to determine the demands of its clients and provide goods andservices to suit those needs The marketing function also entails deciding how products and serviceswill be supplied, promoting products and services, and creating a price strategy to gain market sharewhile maintaining competitiveness

Finance

Planning, securing, and managing a company's financial resources are all parts of the finance role.Finance managers forecast both short- and long-term capital requirements and consider how borrowingwill affect the company's bottom line

HR (Human Resource)

HR is the function that is concerned with people who are an integral part of an organisation It is abusiness function that is dedicated to attracting, engaging, and retaining employees The HRdepartment in an organisation is entrusted with various responsibilities Some of these include hiringnew employees, conducting performance reviews, providing employee training, managing employeebenefits, ensuring compliance with government regulations, etc

Operations

Inputs, or factors of production, are transformed into outputs, which are goods and services,throughout operations Providing goods and services in a quantity and quality that satisfy the needs ofthe consumers is the core function of operations in a business Logistics and purchasing are under thecontrol of operations

Interrelationships

The relationship between departments in the company is what always exists when the organizationgoes into operation Simply because each department needs to perform the function it takes on toachieve the common goal

- Marketing & Finance : marketing aims to attract customers by means of advertising,

marketing, but to do that, they have to go through the finance department because they needfunding for example Vinfast, to promote the product, they have run ads on the internet, throughbloggers, youtubers, and the finance department will be responsible for paying for these

- Marketing & HR: To promote and sell products, the sales team is indispensable, so it must be

through the human resources department that the marketing department has enough resources.Therefore, Vinfast is always in a state of recruiting marketing staff to expand customers'understanding of their products not only in the country but also around the world

- HR & Finance: It must be said that the finance department is the department that most of the

company's activities have to go through to get funding For example, in Vinfast, the HRMdepartment must go through the company's finances to balance the budget and the number ofemployees, especially in the case of recruiting more employees