Introduction
It can be stated that the objective of the company and the environment of the company make their employee from learners to professional. The organization is a legal unit that is different from the owner and the personal activities of him. In the learner stage, the employee only learns about the atmosphere of the organization, the technology they used and the role of their job. River Island is the huge industry of fashion in the UK. Employment in this organization is a great achievement for an individual. According to the scenario, there is a temporary employee who appointed was supportive of senior business analyst and now he wants to become a permanent employee in the same company. It also analyses the different functions of organizations with their impact on the operations of business.
TASK 1
Explain different types and purposes of organizations; public, private and voluntary sectors and legal structures.
There are different types and purpose of organization is there they are as follows:
Give an example of this type of organisation with a brief background information of the organization Public sector: These organizations are connected with the government and provide their facilities to the public, they linked with government rules, regulations and norms and give directions to follow these to their citizens. They spread their business in these areas like government companies, corporation and academic era. In this sector, the aims and objectives are to provide these services to the public and help them. When the public pays costs to this sector their funds will be used to government finance. River Island Company also follows the government rules, regulations and spread their business with the help of public sector organization.
For example, UK College of education is an example of a private sector organization dedicated to helping to sort out the big issues of education and health conflicts of today time. The college has 3000 students in 70, 12+standards and graduate of huge range in various fields. The college mission is to increase the knowledge of teaching and learning programs within the education era. The college encourages on work and inquiry within their staff, faculty members and their students.
Give an example of this type of organisation with a brief background information of the organization Private sector: The named defines itself that means there owns and earn profits by their own self. It includes various types of public-private companies, franchises, unity in business factor, own proprietors, and franchises. The aims of this sector are increasing growth, maximize the profit, improve the sales and work on to increase it; the other aims are to build to raise their market share.
For example, Talent plus organization is private sector small business company with 116 employees, it is basically global HR consultancy services firm partner with 400 excellent class focus on increasing the growth of their clients, investment discussions with the managers. Dr. William E. Hall, Kimberly Rath, Sandy Maxwell founded this small company with the aim of science will identify every person’s talent, skills.
Give an example of this type of organisation with a brief background information of the organization. Voluntary sector: In this type of sector the owner of this sector is not a particular person, it is the difference from the other sectors and it also differs from public and private sectors both however it includes some person will take a responsibility to set the budgets, and also set the targets (Craig & Campbell, 2012)
American Red Cross is the best example of voluntary sector organization related with the charities, company aims are expanding their business by providing charitable donors, volunteers, prevent and comforting for all persons who suffer at their home and all over the world. The company helps persons who need money, blood so the company provides by donating time, blood and money. The company improves its skills through life-saving skills.
To complete task I , please explain how the different types and purposes of the different types of organisation mentioned can link to the business objectives, products and services offered
There are various types of organization can link to the business objectives, products and services offered they are sole ownership, unitary and corporate business organizations they all are a link with the river island business objectives business products and business services.
Sole ownership business organization, River Island is a clothing co. limited operates and give permissions to other markets to make a chain of various stores. Founder of this company Lewis separates; the objectives of this company are to make a profit and earn more money and if they take Loss Company face this situation with their own self.
In partnership, unity business organization river Island Company expands its business with other business partners and increases their business, the business objectives of this company are to expand the company business in worldwide. River island divided there products into their partnership according to and spread their business.
Incorporate business organization linked with the river island company, organization objectives built high expectations to increase the growth of business spread the business era with increase their productivity, expand the business national and international as well. Company increase their products and services and provide facilities to their customers, these can be ensured by various payment option facility so their customers will comfort.
Different types and purpose of different organization by putting size scope of these organizations they are as follows:
River Island Company is coming to under the partnership business organization and allocate their profits and losses into their partners when they get extra profits it will also divide into each and every partner equally. Sole owner, unity, and corporate body all these are explained by their size and scope.
The below aside from the highlighted in blue is the legal structure of organisations. Refer to my teaching slides for more information on legal structure (Example- Partnership, Joint Venture, franchising etc.)
Note: Before starting the task
Explain what is meant by organisational legal structure before giving the
Examples
Organizational legal structure means it is a legally authorized in given command and defined by legal of a particular class. It includes sole ownership, unity (partnership) and corporate levels. They all are describing various types of business purposes and objectives and services towards their customers
Sole Ownership: It is the primary type of every organization. It means a small business with one owner which produces one type of products and provides their unique services. In this type of business, the owner is own self and they have overall responsibility for every type of claim against business and it will affect him/ her personally, Example would be a local general store.
River Island
Unity Type: It defines its size is big as compared to a sole owner, sole proprietors. In this type of organization, it includes more than one person to lots of partners. It is also known as a partnership, it has same characteristics like the sole ownership but with the lots of partners produce wider products and their services but still, they only exist to a particular location, area, the reason behind this situation is because of size. The example of this type of organization is apple and MasterCard. The river island company sales and their profits are decreasing according to the last previous records (Zairi, 2012).
Corporate type: It is a larger organization compare to before mention types, because of their size, partners, area. In this type of organization, they produce their products in the wider range and distribute international as well as national. They don’t take any claims against the business. They have lots of owners because of portability and stake ownership.
Joint Venture: Joint venture is a legal arrangement between the two organizations that aims to complete a particular task. It is a temporary not permanent to gain equal benefits, profits by sharing their risks, awards, and money.
Corporations: In this type of business legal organizations all the gains and losses are passing to stakeholders and settled on their own tax returns.
Analyze how the structure, size and scope of different organizations link to the business objectives and product and services offered by the organization.
As a senior analyst employee working In the London branch of River Island, it is responsibility of manager to analyze and describe some facts and information that is relevant and beneficial to the company is set a wide aim and target that fulfill their objectives. The starting steps are to the company is to create the tiny task with their capabilities then fulfill it. The company should emphasis to increase their number of employees in their organization and provide them special training programs regarding the working structure, technologies, new products innovations, creative in there working structure according to their size, improve the market structure so they achieve their objectives. This also leads to fulfillment of goals whose beneficial to the River of Island Company.
Because the company size is huge and extends day-by-day so they can make big goals, big targets and take risks for better opportunities, results, and success of the company. It gives huge profits, benefits so the company market share will rise. The scope of risen island company business is a boost and improved but still, they don’t move to increase growth so in that case, they should prepare plans to spread their business all over the world (Yuan, 2013).
Provide a critical analysis of the complexities of different types of business structures and the interrelationships of the different organizational functions.
As an employee of River Island Company, the manager analyses the complexities of different types of business structure and find out various factors so that they should improve the River Island company. The company products are high in range and expensive so they should implement in this section and work on it, they will improve their quality structure and produce products with recognized their product will purchased by middle class families so their productivity will grow. The other factor is they will improve to the growth of their franchise so the company should focus to increase their franchises stores.
TASK 2
Explain the relationship between different organizational functions and how they link to organizational objectives and structure
For development and growth of the organization, the different organization performs a different function and applies various strategies. These functions directly depend on the organizational structure and they are interconnected with each other. The organization structure also facilitates the attainment of the organization aims. The effectiveness of the organization will be evaluated by performing of the functional units and strategy of the company.
River Island is one the leading fashion clothing industry of UK. The multinational fashion industry of fashion clothing has well established itself.
River Island Objective: The main objective of this industry is to meet the target rate and produce a high-quality product with a good quality of resources. The other aim is to satisfy the need of the customer (Singh, 2018).
You need to clearly explain the type of organisational structure that is being used by River Island aided with a diagram of the organisational structure.
CEO has the responsibility for their success or failure of the business. The CEO who take part in all the responsibility of his business like processes, promotion, plan, funding, principles, sales, rules, and regulation etc. CEO does not perform any work, He only analyzes that all the work done in proper order or not.
Marketing manager supervises the branding and advertising of the company of their new or current products. Their responsibility is to make a team for the promotion of their brand or their company.
Production Manager ensures that the manufacturing process will be work efficiently or not. Their responsibility towards the job is planning, estimating and organizing.
Foreman (fabrication) has responsibility for the preparation, guiding and organizing actions in a manufacturing environment.
Foreman (assembly) has responsibility for making disciplined behavior in the employees, imitate coordination between the employees.
Worker (Production): Those who performed the cutting and sewing on the textile and convert into the accessories or clothing.
Sales Persons: The main responsibility of the salesperson is to increase the sales of clothing.
Functions and their interrelationship: For achieving the goal of the organization. River Island performs many functions:
- Marketing Research
- Design Management
- Human Resources Management
- Quality Research
Marketing Research: For River Island, the marketing research will not be an easy task. Since, it is a multinational organization having so many stores in different countries and cities.
Design Management: For the fashion clothing industry, the major role of the design of clothing. The customer changes their needs according to the fashion and that plays a crucial role in industry.
Quality Research: This research in the industry is a necessary tool which performs on the quality of production. A customer has trust in the respective organization on the basis of quality. Before the initial step of production, it goes to the quality check of resources
Human Resources Management: The management plays a major role in the organization. And that manages the human-related issues like employee behavior in the organization towards their teammates or the organization. They will also take care of the need of employee or the expectation from the organization.
These entire functional units are interconnected with each other and their main objective is to achieve the goal of the organization. Like in this industry the design management will evaluate the latest design in the market in the specific place and according to that, they associate their marketing. Before designing and production of the product they go to the quality research. Human resource management is interconnected with all the units (Open education, 2019).
You have done well to identify the various functional units in River Island now, describe the possible interrelationships between organisational functions in River Island.
(example Marketing, Finance, Logistics, Human Resource, etc.)
Then, describe possible interrelationships between organisational functions in River Island. Analyse the advantages and disadvantages of such interrelationships
The all functional units are interlinked with each other and their major objective is to achieve the goal of the organization. Like in the management department of the industry will enhance the management skill of the management will evaluate the performance of the company. Human resource management is interrelated with all the departments or the units of the organization.
Interrelationship in River Island is between the production and marketing department, both the department works together marketing department advice the production department that what the need of public or the demand of the public. The marketing strategies analyzed by their marketing department and implemented by the production department.
The advantage of such interrelationship is the work will complete as early as possible by the collaboration and co-relation make every work in a very efficient manner with the rapid rate of performance. When the marketing department discusses their ideas with the production house employee they will implement their creativity according to the research. There is some disadvantage also like the conflict action between the employees due to lack of mutual decision. Like when the production manager will not agree with the marketing manager (Gleeson, 2019).
Analyze the advantages and disadvantages of interrelationships between organizational functions and the impact that can have on the organizational structure
Interrelationship in the organization has an impact in the organizational structure in both ways, positive way and negative too. There are some advantage and disadvantage in interrelationship:
Advantage
- There is a facility to share the roles and concern within the organization for a particular job. So, they can achieve their major role of the organization in a very well-organized manner.
- The output and proficiency will also increase in the product because every department will perform their job accordingly.
- The communication between the employees creates a professional relationship between them.
- It reduces conflicts between the department and they become dependent on others in a positive manner (Munroe, 2018).
Disadvantage
- It can obstruct the productivity of the company, the cooperation between the employee may reflect some issue which directly proportional to the goal of the organization.
- Various departments can be connected to attain the specific goal. Then it leads the time delay in not only in the decision-making process but in the production also.
Add reference
Add task 3
Done through class oral presentation.
TASK 4
Internal and External analysis to identify the internal strengths and weaknesses of River Island London
Internal strengths and weaknesses play an important role in the successful operation of an organisation. For this purpose, the strengths and weaknesses of River Island London are analysed, their interrelation with external macro factors is studied and SWOT analysis is applied and its effects on decision making are studied.
Strengths of River Island London include using of strong brand identity which helps in connecting customers with the brand stores. The brand has been using various marketing strategies which includes ‘snap and share’, for the purpose of brand promotion, which helps the organisation in reaching a bigger audience and helps in the growth of the business market. Providing better customer services is also strength of the organisation. Well-educated and experienced staff helps in providing a good shopping experience to the customers. Apart from this there is certain weakness that leads to downfall. The weaknesses of River Island London include less interaction of employees with the customers on the shop floor. At many times there are no staffs available on the shop floor when the customer was browsing the products (Parsons, 2018).
Explaining the interrelation of strength and weaknesses with external macro factors
External macro factors do have various effects on the strengths and weaknesses of the organisation. External macro factors include competitors, human resources, suppliers, economic environment, technological factors etc. The effect these macro factors have on the organisation are as follows:
- Competitors:
New entrants in the market focus on providing better quality products at reasonable prices in order to establish themselves in the market. The rapid expansion of the competitors and their successful run affects the market of the organisation and they need to focus on more on improving their products qualities and services in order to stay competitive in the market. The competitors always focus on the weakness of the organisation and focus on providing better services in order to establish themselves ahead of their competitors.
- Human Resources:
Employees help in maintain good customer relationship. Treating employee good will increase their morale and they will focus on contributing more towards the organisation which will eventually help in removing their weakness in less customer interaction.
- Economic Environment
Economic environment such as low-interest rates, low inflation and low unemployment also affects the organisation. Low unemployment results in unavailability of the workforce for the organisation which is much required in order to provide better customer services. Low inflation results in less revenue from overseas transactions which are eventually a loss for the organisation (Claessens, 2015).
SWOT analysis of River Island London and its effect on decision making
A SWOT analysis is a process of analysing the strengths, weaknesses, opportunities and threats related to the organisation. The SWOT analysis of River Island London and its effects of decision making of the organisation is as follows:
Strengths
Strengths of River island London basically includes the class of its product, marketing and promotion strategies. Displaying eye-catching products on windows makes the brand one step ahead of their competitors. Using various strategy tags like ridenim, imwearingri etc. helps in promoting the brand image and attracts a large number of audiences. Linking various accessories with outfits attracts customer and increases sales. A unique brand image helps in locating stores easily and relaxed environments provide a great shopping experience for the customers.
Weaknesses
Weaknesses are the points which lack in the organisation and which results in the downfall of the organisation. Weaknesses of River Island London have no interaction with the customers on shop-floor. At various point of times, there was no staff present on the shopping floor when the customer was busy shopping.
Opportunities
Opportunities help in the growth of the business. Opportunities which help River Island London in taking a leap towards growth include increasing their customer services. Increasing the staff members to help educate the customers about the products, brand and acknowledge them about quality, offers etc. Providing various discount and introducing loyalty points is a great way to attract more customers.
Threats
Threats are the obstacles that can arise while performing the activities in the organisation. Threats arising in the successful running of River Island London includes rising competition. The newly launched brands focus on establishing themselves in the market. For that, they focus on providing the best quality products at reasonable prices (Butler & Wilson, 2015). They focus on providing the best customer experience and also attract customers by providing discount and sales. Competitors like New Look, H&M and Top shop are focusing on the weaknesses of the organisation and are improving themselves in that particular area to attract customer towards them. Changing the taste of the customer is also a threat to the River Island Organisation, as it would lose its customers if it didn’t change its policies and products as per customer’s changing taste.
SWOT analysis of River Island and its effect on decision making
Using the SWOT analysis can help the organisation in making decisions and planning for the future. By studying the strengths, the management can focus and enhance them more in order to give strong competition to other firms. After analysing the weaknesses, the management can focus on removing the weaknesses and provide better services. Opportunities can be utilised for the growth of the business, which helps in keeping the organisation ahead of the competitors. Early planning can help in removing the threats and thus the organisation can run smoothly and achieve its goals (Hillary, 2017).
To achieve this task in full, add a SWOT table to highlight the information supplied above.
Your SWOT table should be done for River Island and the Voluntary organisation discussed in your report.
To achieve this task in full, explain how the key external macro factors including the competitive environment (for River Island) and government intervention (For your Voluntary organisation) can influence organisations and business. Explain the difference between the macro and micro factors. Describe the influences of the two factors on a business/organization decision making.
- A) Advantages Disadvantages
-Unique product line -Global feature -Corporation with the celebrities -Outstanding quality -Great brand awareness |
-Decrease in size of market share -Decrease the product stores in global |
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- b) Your SWOT table should be done for River Island and the Voluntary organization discussed in your report.
River Island & voluntary organization SWOT analysis
| Strengths
-Strengths of the American red cross is wider in scope, as compare to river island. -American red cross business is diversifies there services so it size and scopes are huge rather than river island. |
Weakness
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Opportunities
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Threats
-American red cross threats are increase so its threats are much higher as compare to river island because of their bad publicity. |
- C) To achieve this task in full, explain how the key external macro factors including the competitive environment (for River Island) and government intervention (For your Voluntary organization) can influence organizations and business
Macro factors of River Island and the American Red Cross can influences organizations and business:
Macro factors include social, economic, political, legal, and technological aspects.
Social aspects: River Island expands its business by the use of social sites, social coordination’s of business partners and increases the productivity by social media, internet and so many more… It influences directly and wider as compared to the American Red Cross.
Economic aspects: Economic growths are not stable they are fluctuations due to economic issues, but the American red cross economic conditions are much better as compare to river island.
Technologic aspects: both the organizations use technology but the little differences are river island expand their business and use the proper technology compare to the American Red Cross.
Political aspects: River Island faces many issues because of tax policies, stability is not fixing so it influences indirectly to the company, and the American Red Cross faces competitors’ challenges and influence the organization indirectly.
Legal aspects: River Island respects the employment act and follows this rule of the government and they also scare about their products feedback, but the other hand American Red Cross follow the entire government act and they built strong relationships with their customers.
- c) Difference between macro and micro factors & Influence of the factors
| Macro factors | Micro factors |
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Conclusion
The following report focused on strength and weaknesses of River Island London and their effects on decision making and successful operation of the organisation. River Island London is a very inspiring fashion brand which is developing and creating fashion and trendy products. Providing good quality products, better visual displays, good customer services are keeping them ahead of their competitors. The store just needs to focus on improving their customer service and finding ways to overcome the threats arising.
References
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- Butler, R., & Wilson, D.C., (2015). Managing voluntary and non-profit organisations: Strategy and structure. Routledge.
- Craig, T., & Campbell, D., (2012). Organisations and the business environment. Routledge.
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- Hillary, R., (2017). Small and medium-sized enterprises and the environment: business imperatives. Routledge.
- Munroe, S., (2018). What Are the Functions of Organisational Structure. [Online] Azcentral. Available at: https://yourbusiness.azcentral.com/functions-organisational-structure-2141.html [Accessed: 1 February 2019]
- Open education, (2019), Defining and exploring the voluntary sector [online] Open education Available at:http://www.open.edu/openlearncreate/mod/oucontent/view.php?id=81597&printable=1. [Accessed on: 1/2/2019]
- Singh, P., (2018) River Island posts decline in annual sales and profit [Online] Fashion united Available at: https://fashionunited.uk/news/business/river-island-posts-decline-in-annual-sales-and-profit/2018092539114 [Accessed on: 1/2/2019]
- Yuan, H., (2013). A SWOT analysis of successful construction waste management. Journal of Cleaner Production, vol. 39, pp.1-8.
- Zairi, M., (2012). Measuring Performance for Business Results. Springer