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Report on Business Environment Analysis

Category: Business & Management Paper Type: Report Writing Reference: HARVARD Words: 5050

Text Box:

a)  Explain Different Types of Organizations

In this modern era, the role of globalization is significant and dominant as supporting the business practices with strategies and advanced technology. Therefore, all the organizations are performing excellently while adopting strategies at the right time and in the right place. It is because the organizations are needed direction to achieve the objectives and goals set by the top management (D’Innocenzo & , 2016). Different organizations have different nature that is working in a different way to achieve the objectives. There are three types of organizations that are working based on the set objectives and the nature that is:

Private Organizations

Private Organizations are those that are owned by the individual and no interference of government in the matters of these organizations. The private organization is established to earn profit and contribute to the economy of the country. The purpose of the private sector is to generate profit, reporting the data in a clear way, design the structure of the organization and save the policies of the organization to achieve a competitive edge, enhancing the sales and marketing share of the organization.

Public Organizations

The organization that is owned by the government not only individual, and there are no chances of profit as in the private sector. The purpose of this sector is to provide the facilities to the people of the country. The purpose of this sector to improve facilities like education, health and the job opportunities that are beneficial for the wellbeing of the people of the country.

Voluntary/Non-profit Organizations

In this type of organization, the main purpose is to serve the well being of people of society as providing basic needs of life with the support of people. This organization is working without earning profit and serve just for humanity. The main purpose of this organization is to support disabled people to participate in social life and provide health facilities to poor communities (Khan, et al., 2015).

Legal Structure Organizations

It is important when a new business is started that develop the shape of the business that is going to be started such as in co-operatives, partnership, and proprietorships. However, different tax, liability and the income of a company under this structure (Wallace, et al., 2015).

P2: SIZE AND SCOPE OF A RANGE OF DIFFERENT TYPES OF ORGANISATIONS.

Different organizations have different nature and types that are performing according to their objectives and targets. The size and scope of the organization are varying from organization to organization. However, the size and scope of the three different organizations are:

Private GDP of a country

GDP of a country is depicted about the economic and industrial conditions within a specific period of time. However, the size of the private sector in developed countries has a significant position because of its size that is increasing with the development and growth of the organization. The purpose of this sector is to strengthen the economic condition of the country.

Public GDP of a country

The public sector is working just to improve the economy of the country and earn profit without the interference of the government. The size of the public sector is based on the role of government and the ratio of expenditures that is provided by the government and that exhibit in the form of currencies.

Voluntary/NGOs

The voluntary organization is serving for the development and growth of the needy people on an equal basis and provide all necessities of life. The size of this organization is measured by the total number of registered organizations that are attached to the NGO. It is because when the NGO is too small then organizations are not attached to them (Jenkins, et al., 2015).

Legal Structure% GDP of a country

The legal structure is important for the development of the industry that is followed by the organization. In this, the legal structure is that all the organizations related to the tourism industry fulfill the standards and rules of the tourism that are important for the authenticity of the industry. Therefore, tourism-related organizations are fulfilling the legal requirements of tourism.

Stakeholders GDP of a country

The tourism industry is a large and developmental industry in which different stakeholders are attached with the organization like, employees, people, government, community, environment, wildlife species, natural scenes, and all others that have great influence due to activities of the tourism industry. The tourism industry is the emerging sector that provides a strong economic condition of the country. Therefore, all the stakeholders of the tourism industry of Pakistan have appreciated this sector and participated at their level to promote this sector around the globe (Quinlan & Christina, 2019).

COMPARE AND CONTRAST OF THESE ORGANISATIONS

The industry that is selected in this report is the hospitality and tourism industry and the organizations are selected under this industry are:

PATO (Private)

The PATO is a private sector that promotes tourism and development in Pakistan. The purpose of this company is to promote wildlife and protect all interests that promote tourism around the world. PATO is not performing under the interference of government and having a purpose to earn a profit. Moreover, it is performing to develop a good relationship and provide assistance related to the tourism of Pakistan to the government. The PATO is operating in different regions to promote the tourism sector around the globe (pato.org, 2016).

PTDC (Public)

This company was established in 1970 and governed by the government contributing to the share of 99.75%. The organization is developed to promote tourism and strengthen the economy of a country that will be beneficial for Pakistan. The purpose of this organization is to maintain the environment and sustainability within the country as well as develop tourism to promote the economy of the country. The size of the company is efficient as the government provides expenditures that grow the GDP of the country.

STFP (NGO)

It provides the venture of tourism in Pakistan and promotes sustainable development. It is performing as supply-driven and does not prefer to demand that will be beneficial for the economic, social and environment. It is performing based on the planning according to the carrying capacity of the area of ten Pakistan that will be beneficial for the economic condition of the country. This organization is performing its services on a large scale because it is registered with a large number of organizations.

b) Various functions/departments

Different organizations are performed based on the nature and type of their business and their objectives as well. Here the functions of selected organizations are discussed below:

PATO

In this organization, different departments are working in relation to managing tourism in Pakistan. Therefore, the organizational structure is described herein which all the people perform different functions according to their position. In addition, there are two parts of the organization is the Executive committee and the general body.

Executive Committee

It is the first part of the organization that is selected for one year and then this member will be changed after some duration through elections. In this committee officers and directors are included that are selected based on the regular election. In this the designation of people are:

President, vice president, and secretary of different departments like media, join finance, and general that are performing excellently to earn the profit through promoting tourism.  

General Body

In this part of the organization, both members are present that is life and a regular basis. However, the general body is performing different functions to promote tourism are

Selected under the policy designed by the association

Annual report and activities will be managed

Approve the budget for the activities related to tourism

Conduct the annual audit and have authority for the final decision

PTDC

It is the organization that is owned by the government and is performing for the development of sustainable tourism by designing different functions from different departments that are described below:

In this organization, more than 20 directors are existing in which, sectary in charge is the Vice-chairman and Ex-officer is the chairman of the board.

Information Center

Information Center for the tourism that provides all facilities related to tourist and provide all facilities for tourist through their18 different information center in Pakistan.

Marketing

It is an important department of the organization that promotes tourism through effective marketing strategies and promotions to attract local and international tourists. Different ways are used to promote tourism like advertisement and workshops with the collaboration of airlines, hotels and other tourism-related departments.

Planning and development

The purpose of this department to plan the projects that will promote tourism and increases the economy of the country. Other departments are also working within this organization are Human resource management, finance department, and Personnel Administration.

STFP

STFP is a non-profit organization that is working for the development of the country without having no concern about profit. This organization is working with federal and government support and other local and international sectors in relation to improving the policies and initiatives that not only promote tourism but also protect the environment in a sustainable way.

These organizations are performing in the same industry but some extent some differences are also exist based on their purpose and targets. These organizations are interrelated with each other because all are working to promote tourism development through different departments and functions and maintain the economic condition of Pakistan. Moreover, different non-political organizations are also attached to STFP to promote the tourism industry in Pakistan along with to conserve the environment having no need for reward and perform for the well-being of the people of Pakistan.

Organization

Organizational Structure

Functions

PATO

Executive Committee

Decision-making capabilities

 

General Body

Align the tasks that are designed by the executive committee

PTDC

Executive Body

Authority for the decision-making process

 

Directors

Proceed the task approved by the executive committee

STFP

Eminent professionals

Design planned for the tourism

 

Environmentalists

Keen observation on the environment aspects

 Although, some similarities are linked regarding organizational structure as executive and directors that have the authority to make a decision and design policies related to tourism. But some differences have also existed that are: PATO is a private sector that is working to promote tourism just to earn profit and owned by an individual. PTDC is the governmental organization that is providing services to the people of Pakistan as promoting tourism in a sustainable way and improve the economy of the country. Consequently, STFP is a non-profit organization and working just for the maintenance of tourism and also protects the environment with the support of the government, environmentalists, and professionals of eminent that have knowledge about tourism. Moreover, other organizations also registered to promote the STFP in terms of financial aid and promote tourism with the conservation of the environment (Labaki, et al., 2019).

Critical Analysis of the complexities of different types of business structure  
Analyses of the complexities of different types of business structure  

Business complexity is also part of a business in which some situations are discussed that are related to stakeholders, organizational chart, and weak systems. The structure of the organization is considering the different departments and positions of different people that are performing according to their position. Complexity is increased in the business when it is connected with a large number of stakeholders, shareholders, customers, and employees (Lin & , 2018).

Therefore, it is not easy to manage large organizations as it is connected to a large number of people in a different form. On the other hand, small businesses are easy to manage because few people are connected and easy to manage all the activities of the business. When complexity increases within the business then it takes time for the decision-making process and chances of error are also increased. Consequently, the chances of error are reduced in the decision-making process within small businesses.

Inter-relationship of different organizational functions

The tourism industry of Pakistan has a significant position because it promotes tourism and maintains the economic condition of the country. The marketing department of this tourism industry is improved that manage all the activities to promote tourism among tourist al national and international level. In this regard, effective performance and management of this industry are increased the GDP rate.

The finance department is also important as it designs the budget for the activities of tourism that attract the tourist and, in this way, the economy of the country is increased along with the reputation of the country. The tourism department is increasing the overall economy of the country due to its services and performances. Moreover, the human resource department is also performing excellently as it managed all the activities of tourism with the collaboration of the tourism industry. The sustainable strategies that not only promote tourism but also maintain the health of the environment (Rajasekar, 2016).

An information center is also existing in this organization that is developed to inform the tourist about tourism, and other facilities are also provided to tourist. In this regard, tourism is enjoying tourism as knowing about historical facts and figures about the places.

Planning and development are also done for the project that is going to start and its completion date, time of promotions and offers for tourists. All are managed by proper planning and developmental procedures.

The services of all organizations of the tourism industry are effective as all are promoting the tourism sector that is directly linked with the strong economy of the country and develop a good image of Pakistan among developing and developed countries. Although, different types of organizations are performing under the same industry the aim is to promote tourism and will develop a good image of the country (Dijesh & Mary, 2017).

Conclusion of the complexities of different types of business structure  

It is concluded that from the above study, the role of an organization is significant in developing the economy of the country while performing in different sectors. Different types of organizations are performing under the same industry but have different objectives that increase their business worth. The organizations are Private that is performing to earn the profit and develop significant position in the country having no interference of the government, Public sectors that are performing for the people with the interference of the government like education, health, and other sectors and Voluntary sectors that are established just for the humanity and no need of any reward and profit.

In this study PATO, PTDC AND STFP are discussed that are performing under these three types of the organization. All are performing to promote tourism and do well in relation to improving this sector. It is because the economic condition of Pakistan is not stable and with the emergence of tourism the economy is going to be stable and strong. PATO is working as a private sector and have the aim to earn a profit, PTDC is public and perform to promote tourism for local and international people and STFP is a voluntary organization that is performing with environmentalist and eminent professionals that have vast knowledge and information to promote the tourism industry.

The economy of Pakistan is improving with the passage of time with the emergence of the tourism department and foreigners are now moving to visit Pakistan to see its beauty and natural scenes. This practice would lead towards the strong economic condition when foreigners have visited Pakistan and develop a positive image of the country that is a great achievement of Pakistan as develop the international relationship due to tourism. Therefore, it is a great opportunity for NGOs to promote tourism as maintaining the health of the environment so that chances of funding are increased and Pakistan will avail the chance to grow at a large level with a significant position.  

Task 2- (LO3&LO4) of the complexities of different types of business structure  

PATO is privately performing its services to promote tourism without the interference of the government. There are different macro and mice economic factors that have a great influence on the growth, performance and development of the PATO. In this regard, PESTLE analysis is used as a strategic tool that determines the factors related to the macro-environment having an influential impact on the performance of the organization. To analyze the macro-environment of PATO, PESTLE analysis is described in detail.

Political of the complexities of different types of business structure  

The political factors that have an influence on the performance of PATO are that the government of Pakistan is suffering from a lot of political issues that are creating issues for PATO. Due to the unstable political condition of Pakistan as foreigners are not coming for tourism because of terrorism. Therefore, the tourism industry is badly affected when tourists do not visit Pakistan due to the unstable conditions of the government. Moreover, taxes are also having a negative impact on tourists. In this, the PATO is badly affected by the unstable political condition and bad image of the country due to terrorists.

Economic of the complexities of different types of business structure  

The economic condition of countries is improved with the passage of time. When an individual earns more than the people move to travel and visit different countries having beautiful scenes of nature. It is a positive factor in the development of the tourism industry. Consequently, the situation is totally opposite because the economy of Pakistan is also unstable as the political condition. Fluctuation in the currencies is also developed the negative impact on PATO when economic conditions are not favorable because of developing countries. If the economy of the country is not stable then the tourism industry will be destroyed and the country will suffer a lot.

Social of the complexities of different types of business structure  

The social aspect is also important and tourism is the power industry that promotes the socio-culture among people. In addition, different people of different cultures are connected while visiting a country for a tourism purpose. However, in Pakistan, social culture is also creating a problem for foreigners and disliked him because of their dressing and other cultural values that are against Islam. Their dress code, greetings and no distance among males and females. Hence, this is creating social pressure by the people of Pakistan for PATO when managing the foreigner’s tourists during their visit.  Therefore, it disturbs the economy of the company as it avails the chances of opportunities to earn more and more (Jones, et al., 2015).

Technological of the complexities of different types of business structure  

Developed transportation has a positive impact on the tourism industry as when tourists are facilitated with transport to visit the places. The role of technology is important as it improves the ways of transportation and other facilities to the tourist. Consequently, in Pakistan, there is no advanced technology because of poor and traditional ways used by the PATO because of the poor economic condition. As the transportation that is provided on high costs and lack of internet facilities develop a negative image of the PATO. When tourists are not properly facilitated and suffered during their visit then the organization’s productivity and growth will be disturbed.

Legal of the complexities of different types of business structure  

The legal aspects are considered as important for the development and productivity of the organization. However, the legal aspects related to the tourism industry are not strong that is disturbing the performance and growth of the organization. In Pakistan, the legal system is very weak and implementation is not good for the tourism industry. Therefore, because of this poor legal system of Pakistan, PATO is also suffered as there is no management and laws to manage the people. The role of government and ministry of tourism is important in this aspect.

Environment of the complexities of different types of business structure  

The environment is also disturbed by the tourism industry. The reason is that PATO is also increasing pollution through transportation such as buses and trains. This pollution is degrading the environment because of transportation. Moreover, the use of resources is also not good as PATO does not consider the activities of tourists and not guide them to use resources wisely.

The use of PESTLE analysis is a good practice to analyze the strengths and weaknesses of the organization. It determines how macro-environment affects the growth of the tourism industry specially PATO. The political and economic conditions are not stable, technology is not updated and poor laws and regulations related to the tourism industry. All these factors have a negative impact on the growth and prosperity of the PATO organization. There is a need to take initiative by the government of Pakistan to introduce stable political and economic conditions through strict laws and regulations related to the tourism industry. Moreover, environment-related laws and regulations should be implemented strictly and a penalty for those who disown these laws and regulations (Hunter, et al., 2016).

b) SWOT Analysis of the complexities of different types of business structure  

The tourism industry has a strong and dominant sector in developing countries as it provides the strength of the economy of the country and improves social life as well. It is because, it provides the chances of job opportunities, improve and build up the infrastructure and also maintain the diversity and environment of the country. In this perspective, SWOT analysis is used to analyze the potential of PATO the tourism private company within the country.  It is strategic planning that is used to identify the internal and external strengths and weaknesses of the organization through Strength, weakness, opportunities and threats. Therefore, the SWOT analysis of PATO is discussed in which strengths and weaknesses are described that should be improved to maintain the development of tourism. It is effective planning that provides direction to the organization about which sector is needed to be improved and will generate large revenue for the organization (Doppelt & Bob, 2017).

Strength of the complexities of different types of business structure  

The strength of PATO company is that it has a lot of historical places and scenes of natural beauty like

*      The civilization of Indus valley and different sites of archeological

*      Different museums, buildings

*      The architecture of Mughals like mosques, gardens, and different historical places

*      Coastlines that are located at different places and have unique scenes and beauty

*      Swat Valley that is also called the Switzerland of Pakistan

*      Festivals, cultural events

*      Highest peaks’ mountains like K2 are hiking and skiing

*      Variety of resources

*      5-star Hotels and restaurants as a residential place for foreigner tourists

*      Incentives and huge labor market

*      The land is available for the investment

Weakness of the complexities of different types of business structure  

PATO is performing excellently in the industry of tourism but some weakness is also facing because of

*      Poor infrastructure

*      Lack of policies related to tourism

*      Lack of facilities and guidance to the tourist

*      Ineffective laws and regulations towards the tourism industry

*      No initiatives to improve the issues

*      Poor facilities that are the requirements of the tourist like ATM machine, internet, Wi-Fi

*      No facilities to a mountain region

*      Roads are underdeveloped

*      The inflation rate is high

*      Change of the government and administration level rapidly

*      Ineffective Communication

*      Poor garbage and waste management system

*      Language barriers to understanding the tourists

Opportunity of the complexities of different types of business structure  

The PATO is performing with strength and weakness but on the other hand, the company has also chanced opportunities in different aspects that have a positive impact on the economy of the company. The opportunities are:

*      Innovative mountaineering for people for the adventurers

*      Promote the marketing of historical and cultural heritage of Pakistan

*      New projects are started for the tourists

*      Development of the infrastructure will provide the profit for the company

*      Attractive marketing activities for tourist around the globe

*      Partnership and investment with foreigners

*      Upgrade the facilities for tourists

*      Develop the positive image of Pakistan

*      Improve the facilities of transportation

*      Adopt Integration

*      Develop a good image with other countries

*      Effective communicational skills

*      Reduce the language barriers

*      Upgrade the system of IT

*      Perform actively in MDG

*      Reduce poverty through effective practices of tourism

*      Attend seminars and international workshop related to tourism

*      Focus on domestic tourism

Threats of the complexities of different types of business structure  

While PATO has opportunities to improve the performance of the company then it also has some threats that may disturb the performance and productivity of the company.  The threats are:

*      Unstable economic condition

*      A high rate of insecurity and terrorism

*      Lack of knowledge and information about tourism

*      Unavailability of training of people on a regular basis

*      Unstable economic conditions

*      High inflation rate

*      Issues related to pollution

*      Manpower is not qualified and trained

*      Availability of electricity

*      Lack of resources

*      High chances of competition in the coming years

*      No awareness about the needs of tourists

*      Transformation of laws and policies of travel agent’s day by day.

*      Effect of incidence of 9/11

The tourism industry of Pakistan has many strengths and opportunities to improve the economy of the country. PATO is performing it is under the industry of tourism and has the strength like historical places, cultural heritage, natural resources, handicrafts, festivals and different seasons in which the beauty of Pakistan is increased. Another strength of this tourist company as it provides the cost-effective according to the foreigners as the 1 dollar of the US is equal to the 86 rupees of Pakistan. However, different range of hotels and restaurants are available for tourists along with 5-stars hotels are also present to facilitate the tourist. Moreover, different and tasty food items with good quality are available for foreigners like KFC, Pizza Hut, McDonald’s. Moreover, different shopping malls are also available for all tourists like leather items, and a variety of products for all tourists.

Some other negative impact related to the tourism industry is that foreigners do not feel secure while visiting Pakistan because of a high rate of terrorism. The reason is that in the past, the country was suffering from political and economic conditions and the suicide bombing, kidnapping and other activities that have a negative impact on the psychology of the people.

There is a connection between the internal and external factors that have a great influence on the growth and prosperity of the tourism industry and the PATO company as well. The unstable political condition and historical places are the strength of this industry. When a country has not stable political condition then the strength of the tourism industry will not remain a strength for a long time. In addition, the external factor is the technology that is not advanced in Pakistan then the strength like attractive places for tourists will not remain attractive for a long time. Hence, the impact of internal and external factors has significant and theses are related to each other.

SWOT INFLUENCES DECISION-MAKING

SWOT analysis is effective and has an influential impact on the decision-making process. It is because when the PETO is designed the decision then all the strengths and weaknesses would be analyzed that have a long and short-term impact on the economy of PATO. Moreover, what are the opportunities and threats that the company will face while conducting a decision-making process? It is effective as the PATO analyzed all the issues and design strategies that minimized the negative impact and threats in present and secure the future of the company. Moreover, as considering the opportunities long-term decisions are taken to achieve the maximum benefits from the tourism industry. At last, the PATO design the decisions under the strategic planning that is not only good for the present needs of the company but also secure the future of the company in a sustainable way. Hence, SWOT analysis has a positive influence on the PATO company as it guides the company to perform under the proper planning (Ghauri & Cateora, 2011).

Conclusion of the complexities of different types of business structure  

The conclusion of this study is that the macro-environment is important for the growth of the tourism industry. It is because all the external factors have a significant impact on the development of the PATO company. Moreover, SWOT analysis is the strategic planning that describes the internal factors that either increase or decrease the economy of a country with proper management. Although, PATO is performing in a good way some weaknesses are also existing that are highlighted by the internal and external factors related to this industry. The tourism industry of Pakistan is needed to be improved for the sustainable growth and development of the economy of Pakistan.

References of the complexities of different types of business structure  

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pato.org, 2016. pato.org. [Online]
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