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Exploring Business Activity P4

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Exploring Business Activity Unit 1 P4, INTRODUCTION I need to continue my work for those two businesses, and explain understand functional activities and organisational structures. Organisational Structures - Both Microsoft and Oxfam need to create a structure that will enable them to better meet the needs of their stakeholders. E.g. an important part of the structure of a private Company is the Board of Directors with the MD at the top. By giving high priority to the Board means that the interests of the owners (stakeholders) are given priority. Therefore the customers are very important organisational structure needs to ensure there are clear links to customers. E.g. the organisations can give priority to the position of customer service managers. Functional Activities - The section describes the key functions of a modern business. The businesses are commonly organised in departments carrying out these key functions. E.g. the functions are human resources, finance and research and development etc. Function's name Description Definition Microsoft Oxfam Finance They are keeping records of financial activity and to provide managers with information and helping to create financial plans. Co - ordinates the revenues and expenses across all the other functional areas of the business so that it will have sufficient funds to survive and generate profits to reward its reward. Yes Yes Human resources management Helping other functional managers to develop their work, such as helping them to recruit new staff. ...read more.


The key elements of logistics are transport and postal services. Yes Yes How range of functional activities are managed in small and micro businesses Just a business doesn't mean that it shouldn't have specialists. It is not possible for one or two people to handle all of the necessary functions listed above. The specialists may need to be hired to manage important activities, such as marketing or IT. Some small businesses also contract out some of their functions. E.g. they might pay an accountant to produce the annual accounts - paying them for just a few days work. Organisational structures: The structure of the two organisations is best exposed by probing the organisational chart. The chart shows the main parts of the business, and the relationship between the various parts. Note that necessary parts of the structure are the production department and the sales department selling direct to other business. Purposes: If we look at an organisational chart it should give us a clear picture of what the relevant sections of the business are and who reports to whom. When Microsoft refers to line management and is talking about a person who is directly responsible for somebody else. E.g. the production manager reports to the general managers. Division of work: The structure of the two businesses can show clearly how work will be divided up in an organisation. For example: * Who is responsible in Oxfam for dealing with customer complaints * Who is responsible in both companies for dealing with the payment of wages ...read more.


* Production: The Microsoft outsources the production of their products. Then they can concentrate on core activities such as selling, advertising and marketing goods. For example, the Microsoft sold their software's on PC world or other software stores and is typically produced by firms who are contracted to work either for own or other retailers. Influencing factors Size: Microsoft is the largest organisation, its structure tends to become more formal, in order to coordinate larger numbers of workers, departments and diversity of goods and services. Business environment: The company environment is a main fact of organisational structure. The company environment consists of all those factors which lie outside the company. * Static and dynamic environments: for example, in Microsoft the sales can have peaked and remain steady over a period of time. The organisation can therefore feel little need to restructure. In Oxfam, dynamic environments the pace of change may be rapid. The structures are required that can enable rapid change. The flexible teamwork structures are more beneficial in dynamic environment. The team members may be encouraged to come up with ideas for themselves rather than being told what to do. Strategic plans: The kind of business structure also depends on business plans. E.g. Microsoft that seeks to become more market oriented will develop structures that place an emphasis on marketing and customer focus. Both Microsoft and Oxfam seek to develop globally will develop structures that allow geographical specialisation. If strategy related to increasing sales then the number of sales people is likely to increase in Microsoft. ?? ?? ?? ?? Anton Prinson Sritharan BTEC Business National Unit 1 1 ...read more.

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