ANALYSIS OF THE

DIFFERENT INDUSTRIES
AND THEIR
ENVIRONMENT.
Table of Contents
1. Different types, size and scope or organization. ......................................... 1

1.1. What is business organization? ................................................................ 1

1.2. Different types of organization. ............................................................... 1

1.2.1. Private sector. ..................................................................................... 1

1.2.2. Sole trader. ......................................................................................... 3

1.2.3. Partnership.......................................................................................... 5

1.2.4. Companies. ......................................................................................... 7

1.2.5. Private companies. ............................................................................. 8

1.2.6. Public companies. ............................................................................ 10

1.2.7. Co-operatives. .................................................................................. 12

1.2.8. Franchises......................................................................................... 14

1.2.9. Public sector. .................................................................................... 15

1.2.10. Voluntary. ..................................................................................... 17

1.2.11. Charitable/ Non-profitable. ........................................................... 18

1.3. Size and scope of organization. .............................................................. 20

1.3.1. MAS Holding. (Large size organization.) ....................................... 20

 1.3.2. Commercial Bank. (Medim – sized organization.) .......................... 22

1.3.3. Ahaspokuna Hotel. (Small sized organization.) .............................. 24

1.3.4. Global growth and development of transnational, international and

global organizations. ..................................................................................... 25

1.3.5. MAS Holding is the global organization. ........................................ 25

1.3.6. Commercial Bank is the transactional organization. ....................... 26

1.3.7. Differences between franchising, joint ventures and licensing. ...... 26

1.3.8. Industrial structure and competitive analysis. .................................. 29

1.3.9. Market forces and economic operations. ......................................... 33

1.3.10. Stakeholders and responsibilities of organisations to meet

different stakeholder interests and expectations. .......................................... 39

2. Interrelation of the various functions within an organization and how they

link to organizational structure. .......................................................................... 40

2.1. The various function within an organization. ........................................ 40

2.1.1. The role of marketing in MAS holding. .......................................... 40

2.1.2. The role of finance in MAS Holding. .............................................. 41

2.1.3. The role of Human Resource Management in MAS Holding. ........ 41

2.1.4. The role of operation in MAS Holding. ........................................... 42

2.1.5. MAS holding organization context and the interrelationship. ......... 43

2.1.6. Functions in relation to overall organization mission and objectives.

44

2.2. Organizational structure. ........................................................................ 44

2.2.1. Organizational structure of MAS Holding....................................... 44

2.2.2. Bureaucratic organizational structure. ............................................. 45

2.2.3. Post- bureaucratic organizational structure. ..................................... 46

 2.2.4. Parent organization structure. .......................................................... 46

2.2.5. Strategic business unit organization structure. ................................ 47

2.2.6. Matrix organization structure. .......................................................... 48

2.2.7. Virtual organization ......................................................................... 49

2.2.8. Transnational organization structure................................................ 50

2.2.9. International organization structure. ................................................ 50

2.2.10. Global organizational structure: 4types. ....................................... 51

3. Both the positive and negative influence/impact the macro environment

has on business operations. ................................................................................. 56

3.1. What are Macro Environment Factor. .................................................... 56

3.2. Positive and negative influence/impact the macro environment has on

business operation. ........................................................................................... 57

3.2.1. Positive impacts that macro environment has on business. ................ 57

3.2.2. Negative impact that macro environment has on business. ................ 58

3.3. PESTLE analysis of the macro environment of MAS Holding. ............ 59

4. Interrelationship of strength and weakness with external macro factor. ... 60

4.1. SWOT and TOWS analysis.................................................................... 60

4.1.1. SWOT analysis of MAS Holding. ................................................... 61

4.1.2. Interrelationship of strength and weakness with external macro

factors. 62

4.1.3. External macro factors influence decision making. ......................... 62

4.1.4. Strategies implemented by MAS Holding to overcome threats and to

make use of the opportunities. ...................................................................... 63

4.1.5. Impacts that both macro and micro factors have upon business
objectives and decision-making. ................................................................... 63
Conclusion. ......................................................................................................... 65

References ........................................................................................................... 66

Appendix. ............................................................................................................ 82

Table of table.
Table 1 Main features of the private sector. (Birt, 2020)........................................................... 2
Table 2 Objectives of the private sector. ................................................................................... 2
Table 3 Sole trader advantages and disadvantages. (COMPANYBUG, 2021) ......................... 4
Table 4 Partnership advantages and disadvantages. (shopify, 2022)/ (Korchak, 2017) ............ 6
Table 5 Private limited companies’ advantages and disadvantages. (groveaccounting, 2013). 9
Table 6 Public limited company advantages and disadvantages. (Korchak, 2016) ................. 11
Table 7 Difference between private limited and public limited company. (S, 2021) .............. 11
Table 8 Advantages and disadvantages of a co-operatives. (Gaille, 2020). ............................ 13
Table 9 Franchisor. (Lauckner, 2020)...................................................................................... 14
Table 10 Franchisee. (Lauckner, 2020). .................................................................................. 15
Table 11 Advantages and disadvantages of public sector. (Corporation, n.d.). ...................... 16
Table 12 Advantages and disadvantages of voluntary. (SHEEN, 2019). ................................ 17
Table 13 Advantages and disadvantages of non-profitable organization. (myAyan, n.d.) ...... 19
Table 14 Franchising organization. (ecovis, n.d.) .................................................................... 26
Table 15 Franchising organization advantages and disadvantages. (ecovis, n.d.) ................... 27
Table 16 Joint venture organization. (ecovis, n.d.) .................................................................. 27
Table 17 Joint venture organization advantages and disadvantages. (ecovis, n.d.) ................. 27
Table 18 Licensing organization. (ecovis, n.d.). ..................................................................... 28
Table 19 Licensing organization advantages and disadvantages. (ecovis, n.d.). ..................... 29
Table 20 Advantages and disadvantages of a Porter’s 5 factor analysis. (RUSITH, n.d.). ..... 30
Table 21 Advantages and disadvantages of a PESTEL analysis. (CIPD, 2021). .................... 32
Table 22 Advantages and disadvantages of a SWOT analysis. (CIPD, 2021). ....................... 33
Table 23 Advantages and disadvantages of bureaucratic organizational structure. (Gaille,
2017). ....................................................................................................................................... 46
Table 24 Advantages and disadvantages of strategic business unit organization. (harappa,
2021). ....................................................................................................................................... 48
Table 25 Advantages and disadvantages of matrix and functional level’s organizational
structure.................................................................................................................................... 49
Table 26 Advantages and disadvantages virtual organization. ................................................ 50
Table 27 PESTLE analysis of the macro environment of MAS Holding. ............................... 59
Table 28 SWOT analysis of MAS Holding. ............................................................................ 61

Table of figure.
Figure 1 Classification of private sector. ................................................................................... 3
Figure 2 supply and demand curve (Britannica, n.d.). ............................................................ 35
Figure 3 Demand curve(Britannica, n.d.). ............................................................................... 35
Figure 4 Supply curve(Britannica, n.d.)................................................................................... 37
Figure 5 Positive income elasticity demand (Team, 2022)..................................................... 38
Figure 6 Negative income elasticity demand (Team, 2022). .................................................. 38
Figure 7 Zero income elasticity demand (Team, 2022). ......................................................... 39
Figure 8 Structure of MAS Holding(nadishan, 2017). ............................................................ 45
Figure 9 Strategic business unit organization structure (Tu, 2022). ........................................ 47
Figure 10 Matrix organization structure (Dili, 2017). ............................................................ 49
Figure 11 International organization structure (Plant, 2022). ................................................ 51
Figure 12 Global product structure (Plant, 2022). ................................................................... 52
Figure 13 Global geographic structure (Plant, 2022).............................................................. 53
Figure 14 Global functional division structure (Plant, 2022). ................................................. 54
Figure 15 Global matrix structure (Plant, 2022). .................................................................... 55
1. Different types, size and scope or organization.
1.1. What is business organization?
“Business organization, an entity formed for the purpose of carrying on commercial
enterprise. Such an organization is predicated on systems of law governing contract and
exchange, property rights, and incorporation” (Woodward, 2022).

1.2. Different types of organization.

What are the types of business organizations?
- Private sector.
o Sole trader.
o Partnership.
o Companies.
▪ Private company.
▪ Public company.
o Co – operatives.
o Franchises.
- Public sector.
- Voluntary.
- Charitable. /Non profitable.

1.2.1. Private sector.

The area of the economy that is owned, run, and controlled by people and businesses who
want to make money is known as the private sector. Private sector businesses often do not
have state ownership or control. To offer a service or commercial endeavour to a community
collectively, the government and the private sector might occasionally work together in a
public-private partnership. A public entity may be privatized or a new business venture by
private persons may give rise to a private sector corporation. Private sector companies control
pricing by fostering a healthy marketplace (Birt, 2020).
Role of the private sector.
- Significant economic stakeholders.
- Produce employment.
 - Help with development.
- Offering products and services.
- Promote business diversification (Birt, 2020).
Main features of the private sector.
Table 1 Main features of the private sector. (Birt, 2020).
• Reason for making money. • Private control and ownership.
• No state involvement. • Independent leadership.
• Personal finances. • Workplace behaviour of workers.

Objectives of the private sector.

Table 2 Objectives of the private sector.
• Profit. • Customer • Ethical issues.
satisfaction.
• Reputation and • Brand recognition. • Satisficing.
image.
• Long term survival. • Global power. • Share price.

• Efficiency. • Personal satisfaction. • Make a fortune.

• Environment. • Turnover. • Social issues.

• Brand loyalty. • Make power.

Classification of private sector.
Figure 1 Classification of private sector.

Private sector.

Other forms.
Sole trader. Partnership. Companies. Co-operative.
Ex: Franchises.

Private limited. Public limited.

1.2.2. Sole trader.

A basic business structure known as a sole trader or sole proprietorship is one in which one
person manages and owns the whole company. A lone proprietor is responsible for any
business losses but also has the right to keep all earnings once taxes have been subtracted.
Although the phrase "sole trader" is frequently used to describe companies with only the
owner as an employee, the legal structure of the company is what is meant by the word, not
the number of workers. As a result, a firm that is registered as a sole proprietorship may be
run solely by the owner or may employ other people in addition to the owner (sumup, 2011).
- Ease of stat up.
- Small capital adequacy less.
- Registration is not mandatory.

Sole trader legal structure.

Taxation: Pass-through taxation is available to a sole proprietorship. The company does not
submit a tax return. Instead, a Schedule C is used to declare the revenue (or loss) on the
owner's personal tax return (Form 1040).
Liability: The single proprietorship's owner is entirely responsible for any obligations the
company faces.
Formation: The simplest business structure is a sole proprietorship. A sole proprietorship
may be formed for very little money with almost any paperwork (Lending, n.d.).

So, there aren't many strict laws and rules governing a sole proprietorship as a legal entity.
For instance, the business does not need to be registered if the owner operates it under his or
her own name. But in order to function, the business has to get the required papers, permits,
and licenses. Additionally, standards and laws may vary based on the industry and country.

Sole trader advantages and disadvantages.

Table 3 Sole trader advantages and disadvantages. (COMPANYBUG, 2021)
Advantages. Disadvantages.
1. Own your business. 1. perpetual liability.
2. Keep all of the earnings. 2. Taxes might not be effective.
3. Simple to establish up as a sole 3. difficult to take breaks.
proprietor.
4. The start-up costs are low as a sole 4. Be the decision maker.
trader.
5. Sole trading maintains the right to 5. Sole traders can seem less attractive
privacy. to clients.
6. The business structure is flexible. 6. Difficult to secure funding as a sole
trader.

Examples of sole trader.

• Book shop.
• Saloon.
• Professionals.
• Bakers.
1.2.3. Partnership.
A partnership is a type of business where two or more persons enter into a legal agreement to
be co-owners, share in the organization's profits or losses, and divide the duties for managing
it (byjus, n.d.).

Three types of partnership.

- General partnership.
- Limited partnership.
- Joint venture.

Partnership legal structure.

“Taxation: A partnership is a tax-reporting entity, not a tax paying entity. A partnership must
file an annual information return (Form 1065) with the IRS to report income and losses from
operations, but it does not pay federal income tax. Profits and Losses are passed through to
the owners based on their profit-sharing percentages outlined in the Partnership Agreement.
Each partner pays taxes on their share of the profit/loss.
Liability: Usually, owners are personally liable indefinitely. Each partner is jointly
responsible for the duties of the partnership.
Formation: Usually easy to create, but it is important to have an attorney create the
partnership agreement. Partnership agreements establish the terms of the partnership and
typically cover topics such as:
• Capital Contributions.
• Distributions of profits/losses.
• Management Responsibilities.
• Bookkeeping.
• Banking.
• Dissolution.”(Lending, n.d.)
Essential characteristic of a partnership business.
- Being a partnership between two or more people.
- Having a business.
- There must be an agreement.
- Mutual agency.
- The intention of profit marking.
Partnership advantages and disadvantages.
Table 4 Partnership advantages and disadvantages. (shopify, 2022)/ (Korchak, 2017)
Advantages. Disadvantages.
1. Fairly easy to set up and maintain 1. Where more than one owner exists,
over time. there are bound to be differences of
opinion that could threaten the
business
2. Partners can pool their resources to 2. Although partners split any profits
fund the company’s start-up. the business generates, if the playout
is not in sync with each partner’s
contribution to the company,
disagreements can erupt
3. Easy to get started. 3. Perceived lack of pressing.
4. Being able to offer key employees 4. Unlimited liability.
the potential to one day become a
partner in the business can be a big
carrot that encourages them to stay
long-term
5. Partners can share the workload and 5. Unlike corporations, which help to
the rewards of the business’s shield owners from liability,
success. partnerships have both joint and
individual liability. That is, all
partners are liable for their own
actions on behalf of the company as
well as the actions of the other
partners.
6. Sharing the burden. 6. Limited access to capital.
7. Access to knowledge, skills, 7. Potential for differences and
experience and contacts. conflict.
8. Better decision-making. 8. Slower, more difficult decision
making.
9. Privacy. 9. Profits must be shared.
Examples of partnership business.
• “Red Bull and GoPro.
• Spotify and Uber.
• Levi’s & Pinterest.
• Maruti and Suzuki.
• Hindustan petroleum”(byjus, n.d.).

1.2.4. Companies.
A company is a legal body created by a group of people to conduct and manage a business
venture, whether it be commercial or industrial. Depending on the corporate legislation of its
country, a corporation may be set up in a variety of ways for tax and financial responsibility
reasons (HAYES, 2022).

Company legal structure.

Taxation: An LLC is considered a “pass through entity” for tax purposes. This means,
business income passes through the business to LLC members who report their share of
profits or losses on their individual income tax returns. The LLC entity is only required to file
an informational tax return, similar in character to the general partnership.
Liability: Limited liability protects LLC members from being held personally liable for
company debts and claims. Only the business's own assets are at danger if a limited liability
company is sued or has a debt. Except in circumstances of fraud or unlawful activity,
creditors are not permitted to access the personal assets of LLC members. To avoid "piercing
the corporate veil," which might subject members to personal responsibility, LLC members
should use prudence.
Formation: Must pay a filing fee and have articles of organization when the entity is
founded in order to form an LLC. Even though some states do not require them, operating
agreements are strongly advised. The LLC operating agreement lays forth guidelines for firm
ownership and management, much like a partnership agreement or a corporation's bylaws. A
standard operating agreement includes:
• Ownership interest for each member.
• Member rights and responsibilities.
• Member voting power.
• Profit & Loss allocation.
 • Management Structure.
• Buy-Sell provision.(Leading, n.d.)

Main types of companies.

1. Private companies.
2. Public companies.

1.2.5. Private companies.

“A private company is a firm held under private ownership. Private companies may issue
stock and have shareholders, but their shares do not trade on public exchanges and are not
issued through an initial public offering (IPO). As a result, private firms do not need to meet
the Securities and Exchange Commission's (SEC) strict filing requirements for public
companies.
In general, the shares of these businesses are less liquid, and their valuations are more
difficult to determine” (CHEN, 2022).

Minimum requirement for private limited company.

- There must be a minimum of two directors, and they both need to be of legal age.
- One of them needs to be an Sri Lanka citizen and resident.
- It takes two stockholders.
- Shareholders may be natural humans or fictitious legal entities.
- A private limited business can have two members a minimum and 200 members a
maximum (ExpertBells, 2021).

Private company legal structure.

• A Private Limited Company has a separate legal entity, distinct from it is owners.
• It has perpetual succession, which means that even if all of insolvent or bankrupt, the
corporation continues to exist legally.
• The life of the company will be perpetual and not affected by the lives of it is
shareholders or members unless dissolved by way of resolution.
Private limited companies’ advantages and disadvantages.
Table 5 Private limited companies’ advantages and disadvantages. (groveaccounting, 2013).
Advantages. Disadvantages.
1. The company has a perpetual 1. There are several legal regulations
lifespan and can continue if one of that apply to private businesses.
the owners dies.
2. Directors are personally accountable 2. Compared to a sole proprietorship,
if they know or intentionally they are more costly and require
participate in corporate operations more work to register.
that are careless or dishonest, in
contrast to shareholders who have
limited responsibility.
3. Ownership may be transferred 3. There must be at least one director.
easily.
4. It is also simpler to raise cash. 4. Shares cannot be made available to
the general public or listed on a
stock market.
5. It is possible to manage effectively. 5. Except in the event of a one-person
firm, a meeting of shareholders must
have a minimum of two shareholders
present.
6. Small and large enterprises may both 6. In accordance with the new
adapt to private corporations. Companies Act, annual financial
statements must be audited with
limited exclusions.
7. Private firms are exempt from filing
their annual financial statements
with the Registrar of Companies;
hence the public cannot see their
annual financial accounts.
Examples of private limited companies.
• Brandix Lanka (Pvt) Ltd.
• MAS Holding (Pvt) Ltd.
• Unilever Sri Lanka (Pvt) Ltd.
• A.S.P. Construction (Pvt) Ltd.
• Damro (Pvt) Ltd.

1.2.6. Public companies.

A corporation whose shareholders are entitled to a portion of the firm's assets and income is
known as a public company, sometimes known as a publicly traded business. Ownership of a
public corporation is divided among the public shareholders through the free exchange of
shares of stock-on-stock exchanges or over the counter (OTC) marketplaces (BANTON,
2022).
Minimum requirement for public limited company.
- There must be a minimum of two stockholders.
- Within six months after the end of the year, accounts must be filed.
- A competent individual must serve as the company secretary.
- There must be at least two Directors (tutor2, 2021).

Public company legal structure.

• The company is governed by the provisions of the companies Act, 2013. Depending
upon the nature of the business, a company may attract other provisions of laws to
comply.
• Proof of address of all the directors and the shareholders.
• Proof of identity of all the shareholders and directors.
• PAN number of all the shareholders and directors.
• Utility bill of the proposed office i.e., proposed registered office for the company.
• A no objection certificate from the landlord where the office of the company will be
situated.
• Director identification number of all the directors.
• Digital signature certificate of the directors.
• Memorandum of association.
 • Articles of association.

Public limited company advantages and disadvantages.

Table 6 Public limited company advantages and disadvantages. (Korchak, 2016)
Advantages. Disadvantages.
1. Raising money by selling shares to 1. Additional regulatory mandates.
the general population.
2. Increasing shareholder diversity and 2. Higher transparency levels are
distributing risk. necessary.
3. Other sources of funding. 3. Control and ownership concerns.
4. Possibilities for expansion and 4. Less resistant to takeovers.
growth.
5. Prestigious reputation and assurance. 5. Short-termism.
6. Shares' transferability. 6. The initial outlay of money is more.
7. Exit Planning.

Examples of public limited company.

• Hayleys.
• Sri Lanka Telecom.
• LOLC finance.
• Lanka IOC.
• Commercial Bank of Ceylon.
• Jhon Keells Holding.

Difference between private limited and public limited company.

Table 7 Difference between private limited and public limited company. (S, 2021)
Basis for comparison. Private limited company. Public limited company.
Meaning. The term "private limited A public limited corporation
company" refers to a is one whose shares are
business that is not publicly freely exchanged by the
traded and whose general public and is listed
shareholders own their on a reputable stock market.
shares in a private capacity.
 Minimum number of 2 7
members.
Maximum number of 200 except in case of one Unlimited.
members. person company.
Minimum number of 2 3
directors.
Transfer of share. A private company's shares A stock exchange is an open
cannot be transferred freely market where shares of
because of restrictions in the publicly listed companies
articles of association. may be freely traded.
Public subscription. It is unlawful to issue shares It may issue a call for
or debentures to the general subscriptions for its shares
public. or debentures.
Commencement of After getting a certificate of After being incorporated, it
business. incorporation, it may needs a certificate of
immediately begin business start-up.
operations.
Statutory meeting. Optional. Compulsory.
Exemptions. Enjoys many privileges and No such privilege and
exemption. exemptions.

1.2.7. Co-operatives.
“An association of people (organization) that is owned and managed by the people to fulfill
their shared needs and ambitions in the economic, social, and/or cultural spheres through a
jointly owned and democratically run firm is referred to as a cooperative (enterprise). Users
of the cooperative's goods, resources, and/or services are considered to be its members.
Although cooperatives frequently place a greater emphasis on member services than on
investments, profits are frequently distributed back to the cooperative's members” (Weber,
n.d.)
The principles of co-operatives.
- “Voluntary and open membership.
- Democratic member control.
- Members economic participation.
 - Autonomy and independence.
- Education, training and information.
- Cooperation among cooperatives.
- Concern for community”(anchorage, n.d.).

Co-operative organization legal structure.

The Co-operative Development Commissioner of the Co-operative Development Department
must receive reports and pertinent papers before a cooperative society may be registered.
Activities are dispersed in this registration and registered under the Co-operative Name
Register by the provincial councils' commissioners for cooperative development.

Advantages and disadvantages of a co-operatives.

Table 8 Advantages and disadvantages of a co-operatives. (Gaille, 2020).
Advantages. Disadvantages.
1. Community building is facilitated 1. Cooperatives are less likely to
through cooperatives. provide investment incentives.
2. Democratic values are used in a 2. Underinvestment is a major issue
cooperative. cooperative deal with.
3. The members of this arrangement 3. Cooperatives have trouble
stand to gain from a number of developing distinctive branding.
financial advantages.
4. Its members may receive a number 4. Cooperatives produce slow choices.
of financial advantages from this
structure.
5. Some cooperatives may be eligible 5. Cooperatives cooperate on price
for tax incentives. with rival businesses.
6. Cooperatives could have access to 6. Owners and founders of
special financing options. cooperatives don't see as much
financial gain.
7. Each member's obligations are 7. Some cooperatives don't provide
reduced by the cooperative structure. access to real estate.
8. Lower overhead expenses are 8. Some cooperatives might not
advantageous for cooperatives. employ anyone.
 9. The majority of cooperatives don't
function for financial gain.
10. There are two distinct membership
tiers available.

Examples for co-operatives.

• Agricultural cooperatives.
• Business cooperatives.
• Utility cooperatives.
• Insurance cooperatives.
• Student cooperatives.

1.2.8. Franchises.
A franchise is a kind of license that enables a franchisee to use the franchisor's brand name to
sell goods and services by having access to the franchisor's secret business techniques,
procedures, and trademarks. The franchisee typically pays the franchisor an initial start-up
cost and yearly licensing fees in return for obtaining a franchise (HAYES, 2021).

Franchisor and franchisee.

Franchisor – Who established the brand’s trademark or trade name and a business system.
Franchisee – Who pays a royalty and often an initial fee for the right to do business under
the franchisor’s name and system.

Franchisor.
Table 9 Franchisor. (Lauckner, 2020)
Advantages. Disadvantages.
1. Access to capital. 1. Loss of complete brand control
2. Efficient growth 2. Increased potential for legal disputes
3. Minimal employee supervision 3. Initial investment
4. Increased brand awareness 4. Federal and state regulation
5. Reduced risk
6. Operational convenience.
Franchisee.
Table 10 Franchisee. (Lauckner, 2020).
Advantages. Disadvantages.
1. Business assistance. 1. Restricting regulations.
2. Brand recognition. 2. Initial cost.
3. Lower failure rate. 3. Ongoing investment.
4. Buying power. 4. Potential for conflict.
5. Lower risk. 5. Lack of financial privacy.

Common service that franchisors provide to franchisees.

- “A recognizable brand.
- Aid in site selection and development.
- Management staff should attend training.
- The creation of novel products and services,
- Admin offices and field assistance.
- Marketing and advertising from the beginning onward” (IFA, n.d.).

Examples of franchise business.

• McDonald’s.
• Dominos.
• KFC.
• Pizza Hut.
• Subway.
• Burger King.

1.2.9. Public sector.

All businesses owned and run by the government are included in the economic sector known
as the public sector. Everything from schools and hospitals to roads and bridges falls under
this category. The primary goal of the public sector is to deliver services that are thought to
be necessary for society's welfare. Usually, these services are offered for nothing or at a
heavily discounted price. Public sector organizations, like those in the non-profit sector, don't
aim to turn a profit (PRIVACYSENSE, 2016).
The role of the public sector.
The public sector is essential to the efficient operation of our society. It offers vital services
that are required for our communities' welfare. Additionally, the public sector is crucial in
fostering stability and prosperity in the economy (PRIVACYSENSE, 2016).

Public sector organization have three defining characteristics.

- Together with their basic economic purposes, they also have socio-political
objectives.
- They are working on business related projects.
- They are governed and owned by the government.

Public sector legal structure.

• Public corporations have their own identity and legal personality and have the ability
to bring claims and be brought claims in court.
• It was established by a Parliamentary Act, which also specifies the range of its
operations. Additionally, it outlines the rights, benefits, and obligations of each
member.
• Government holds all equity capital in public corporations, which are fully owned by
the government.
• Corporate policymaking often enjoys a high degree of autonomy. Additionally, they
are financially independent enough. However, the government also establishes and
makes decisions regarding broad concepts and policies.
• The government appoints the corporation's management. Typically, public businesses
are managed by a board.
• In general, budgetary accounting and audit rules that apply to government
departments do not apply to public corporations (s, n.d.).

Advantages and disadvantages of public sector.

Table 11 Advantages and disadvantages of public sector. (Corporation, n.d.).
Advantages. Disadvantages.
1. Bold management due to operation 1. Autonomy and flexibility, only in
autonomy. theory.
2. Legislative control. 2. Misuse of monopolistic power.
 3. Qualified and consented staff. 3. Rigid constitution.
4. Tailor – made statute. 4. Low managerial efficiency.
5. Not affected by political change. 5. Problem of passing a special act.
6. Lesser likelihood of exploitation. 6. Clash of divergent interests.
7. Reasonable pricing policy.

Examples of public sector.

• Airport and aviation service (Sri Lanka) Limited.
• Bank Of Ceylon.
• Sri Lanka Serving Bank.
• Peoples Bank.
• National Saving Bank.
• Government Hospitals.
• Public school and Universities.
• Ceylon Electricity Bord.

1.2.10. Voluntary.
The voluntary sector, often referred to as the non-profit sector, the community sector, or the
third sector, is typically made up of groups whose goal is to develop and serve society,
frequently without the consideration of profit and with little to no government intrusion
(PRIVACYSENSE, 2015).

Voluntary organization legal structure.

• Charitable incorporated organisation.
• Company limited by guarantee.
• Unincorporated association.
• Trust (Roy, n.d.).

Advantages and disadvantages of voluntary.

Table 12 Advantages and disadvantages of voluntary. (SHEEN, 2019).
Advantages. Disadvantages.
1. Improve skills variety. 1. Risking injury.
 2. Make new contacts 2. Working overtime.
3. Forge a new reputation 3. The level of burnout is high.
4. Open up new opportunities 4. Voluntary organization rely heavily
on generous community funding.
5. Form better bonds 5. Volunteering can be time
consuming, especially when
studying

Example for voluntary organization.

• “Teaching English in Sri Lanka.
• Turtle conservation.
• Ayurvedic Medicine Apprentice.
• Temple Renovation Supporter.
• Sri Lanka red cross society.
• Lion club of Colombo.
• ECO-V EVO friendly volunteers.
• Sri Lanka volunteer and travel program.
• International volunteer HQ Sri Lanka”(volunteerworl, n.d.).

1.2.11. Charitable/ Non-profitable.

A non-profit organization that works to promote the public good is known as a philanthropic
organization. A wide range of topics, including education, reducing poverty, science, the
environment, diversity, religion, and health, fall under the heading of "public benefit."
Donations to an organization can be written off as a tax deduction if it receives 501(c)(3)
status. Depending on the context, certain non-profit organizations, such as unions, think
tanks, or political groups, may be referred to as philanthropic organizations. The majority of
political groups and unions, however, come under different parts of the Federal Tax Code,
and organizations must apply for charitable tax-exempt status in order to engage in various
political activities. Tax-exempt 501(c)(3) organizations are prohibited from openly endorsing
any candidate or engaging in partisan political activity. There are few exceptions, including
(Team, 2021).
Charitable organization legal structure.

According to Section 34 of the Companies Act No. 07, the word "limited" is not required
when holding these with limited liability. For it, the following requirements must be met by
the company registrar.

• That social wellbeing is the goal.

• That the revenue or profit will be used once more for the objective.

• No dividend pays out to members.

Advantages and disadvantages of non-profitable organization.

Table 13 Advantages and disadvantages of non-profitable organization. (myAyan, n.d.)

Advantages. Disadvantages.

1. Employee commitment. 1. Loss of tax status.

2. Intrinsic rewards are considerable 2. Competition for funding and other

advantages of a Non-Profit resources.
organization.
3. Get financial benefit. 3. Public scrutiny.

4. Protection from Personal Liability. 4. Stakes are higher.

5. Motivation and Leadership. 5. Cost.

Example of non-profitable organization.

• “Prithipura communities.
• Tarana foundation.
• Street child.
• Their future today.
• Keel.
• World food program.
• Save the children.
 • Sri Lanka children foundation.
• Orphans in need.
• Pure water”(Care, n.d.).

1.3. Size and scope of organization.

Any organization's structure, size, and scope are connected to its overall business objectives.
Any firm that has a strong organizational structure is more likely to adopt a lofty goal as its
goal. It is hard for an organization to fulfil its goals if there are few individuals in its
organizational structure and no one is aware of their function or that of their subordinates.
This is because there is insufficient role clarity. On the other hand, every commercial
organization bases its goal on its size. If a firm is large and makes significant financial
investments, it will set a large aim as its business objective (Wardet al.2011). Every business
does, however, share a common goal in the form of servicing consumers and making a profit,
but the amount of profit varies depending on the size.

Organizations assess their business scope to determine their business objectives. Any
corporation will create business objectives in line with its breadth of service to national
clients. On the other hand, if they recognize that they deal with clients from outside, they will
adjust their company goals. An organization determines its structure, size, and scope based on
the product and service. Any company that realizes that their product doesn't need a complex
organizational structure won't build one up. On the other side, an organization only generates
a gigantic organization size and a scope if the business scope for any product or service is
extensive; otherwise, they build a modest sized organization (locusassignments, n.d.).

1.3.1. MAS Holding. (Large size organization.)

Objectives and goals.

“Objectives: Enabling dreams and enriching the fabric of life on our planet” (mas, 2023).

Goals: “10% more product rate will be charged in January at MAS Holding” (Asana, 2021).
Market share.

One of the most important economic areas in Sri Lanka is the export of garments, which has
experienced rapid expansion over the past forty years. The sector's worth increased to $5.42
billion in 2021 as exports increased by 22.93 percent year over year. By investing more in
local supply chains, the country's garment industry hopes to reach $8 billion in exports by
2025, while the economic crisis has limited its access to inputs. and the garment business
today accounts for over 44 percent of all exports and 33% of all manufacturing jobs in the
nation, making it the nation's top export industry (trade, 2022).

Growth.

“Employees at MAS Holdings think their company is growing quickly to continue on a

successful path; rating growth at MAS Holdings 90/100. MAS Holdings' executive team
directly impacts MAS Holdings' growth, and 100% of employees approve of the job they’re
doing. Growth at MAS Holdings can be measured by benchmarking companies’ culture
metrics.

There are multiple methods MAS Holdings can use to measure their growth – here we will
look at two. Goals derive from the top of the organization, and the CEO is an essential player
to accomplishing these goals. MAS Holdings employees think Sharad Amalean is average at
driving goals and ensuring results. Secondly, MAS Holdings' ability to grow financially
encapsules other areas of growth. From an employee’s perspective, MAS Holdings' revenue
increased 10-50% during the last year” (MAS, n.d.).

Sustainability.

“MAS continually monitors, evaluates, and improves the environmental, social and economic
impact of its activities. Typically, properties and real estate activities affect the environment
via energy use, direct and indirect greenhouse gas (GHG) emissions, water usage, and waste
generation. The Group is committed to increased transparency in sustainability reporting and
reporting on sustainability in accordance with Global Reporting Initiative (GRI) Standards.
The European Public Real Estate Association’s (EPRA) Sustainability Best Practices
Recommendations (SBPR) are also considered with reference to methods of computation and
units of measurement for indicators reported. However, this report is not prepared in
compliance with EPRA SBPR. MAS’ material sustainability topics are identified as
subcategories of the following three key pillars:

• Environment (Environmental).

• Community (Social).

• Organisation probity (Governance).

which, together, support MAS’ commitment to sustainable business decisions aimed at

creating long-term value. MAS’ focus for the following financial year is to continue its
responsible, efficient, and sustainable use of natural resources, and investment in, and
operation of, green income properties, which contribute to social well-being” (REPORT,
2022).

1.3.2. Commercial Bank. (Medim – sized organization.)

Objectives and goals.

“Honesty – We strive to earn and retain the trust of our stakeholders through transparent
actions that inspire them and align with their values. Integrity–Maintaining our integrity is of
paramount importance to us in ensuring that our brand value keeps growing for all
stakeholders.

Fairness – We focus on doing the right thing by all our stakeholders so that their trust in us
continues to deepen, enriching invaluable relationships. Responsible citizenship–Continuing
our commitment to the community we focus on making lives better and being a force for
good.

Accountability – We live by our brand values, ready to take responsibility for our actions
towards all stakeholders” (beyond a shape, 2021).

Market share.

Commercial Bank began its expansion beyond Sri Lanka’s shores with the acquisition of the
Bangladesh operations of Crédit Agricole Indosuez in 2003 and became the first private
sector bank to establish a branch operation outside the country. Since then, three subsidiaries
have been established by the Bank in Italy, the Maldives and Myanmar. The Bank is
exploring the possibilities of expanding its presence to a few more countries in the near
future” (Beyond a shape, 2021) .

Profit share.

“Reflecting the higher growth in profit after tax and the relatively lower growth in assets and
equity during the year, both Return on Assets (ROA) and Return on Equity (ROE) improved
to 1.28% (2020: 1.05%) and 14.66% (2020: 11.28%) respectively. ROA (before tax) for the
year too improved to 1.74% (2020:1.51%)” (Beyond a shape, 2021).

Growth.

“As the largest private sector commercial bank in Sri Lanka, which has engendered the trust
of over 3.5 million customers, Commercial Bank is deeply aware of its fiduciary
responsibility of governing the Bank’s affairs meticulously and ensuring it is adequately
capitalised. The COVID-19 pandemic has reshaped the global economy and society,
accelerating consumer behaviour shifts and causing significant earnings challenges and
extensive risk of financial distress for both consumers and businesses. Such a context has
highlighted the magnitude of the Bank’s role in aiding recovery by supporting its customers,
forming mutually beneficial partnerships and mobilising its workforce and its resources at the
service of society. Recognising that Prudent Growth represents value creation for all its
stakeholders through different time frames – the short, medium, and long term, the Bank
drives growth by focusing on agility of operations, innovation, evolution of the workforce,
managing risks and exemplary governance” (Beyond a shape, 2021).

Sustainability.

“In a landmark accomplishment during the year, we secured a USD 50 Mn. Funding facility
from CDC Group, UK’s development finance institution and impact investor, to extend
lending to SMEs and support climate projects in Sri Lanka. The investment marks CDC's re-
entry into Sri Lanka and its first climate commitment in the island. The investment has
strengthened our own Green Financing strategy, supporting Sri Lanka’s commitments under
the Paris agreement and contributing to United Nation’s Sustainable Development Goals
(SDG) on affordable and clean energy, decent work and economic growth and climate action.
Our commitment to sustainable financing is further demonstrated when we pioneered a
mandatory social and environmental screening process for our project lending activities,
becoming the first bank in Sri Lanka to venture into Green Financing. During the year under
review, we disbursed 1,208 green financing loans and leasing facilities, enabling customers to
pursue ventures that will aid in the transition to a low-carbon economy. We also
revolutionised digital banking by introducing the “Save the Environment” feature in the
“Flash” mobile application to measure and offset customer impact on the environment and
promote an understanding of the social carbon footprint of consumption. Our position as the
pre-eminent bank in climate financing and environmental consciousness in the South Asian
region was exemplified when we became one of the top banks – and the only Sri Lankan
bank – to win two Climate Assessment for Financial Institutions (CAFI) awards from the
IFC. We continued to support our communities in a myriad of ways during the year under
review– by donating medical equipment and contributions to the COVID-19 fund, uplifting
education and community development, and creating employment opportunities for young
entrepreneurs” (Beyond a shape, 2021).

1.3.3. Ahaspokuna Hotel. (Small sized organization.)

Objectives and goals.

“Economic objectives.

• Profit earning.
• Market share.
• Innovation & Utilization of resources.
• Increasing productivity.

Social objective of business.

• Providing goods & service at reasonable prices.

• Employment generation.
• Fair remuneration to employee.
• Community service” (toppr, n.d.).
Growth and sustainability.

All forms of tourism are dependent on the natural and cultural features that draw visitors and
serve as the primary engine of expansion and development for the tourism industry
(ONLINE, n.d.).

1.3.4. Global growth and development of transnational, international and global

organizations.

• “Transnational organization - Transnational companies are much more complex

organizations. It’s a commercial enterprise that operates substantial facilities, does
business in more than one country and does not consider any particular country its
national home. One of the significant advantages of a transnational company is that
they are able to maintain a greater degree of responsiveness to the local markets
where they maintain facilities.
• International organization - International companies are importers and exporters,
they have no investment outside of their home country.
• Global organization - Global companies also has locations in multiple countries, but
they’ve figured out to create one company culture with one set of processes that
facilitate a more efficient and effective single global organization” (Mushtaq, 2016).

1.3.5. MAS Holding is the global organization.

The largest garment and textile producer in South Asia, MAS Holdings, has announced
intentions to considerably increase its worldwide reach in an effort to take advantage of
possibilities brought on by the pandemic and better meet the demands of its clients.

The company's worldwide expansion plan is expected to significantly improve MAS's speed,
agility, and capacity for managing costs and risks as well as its ability to meet customers'
rising demand for on-shoring and near-shoring of manufacturing. It also puts MAS in a
position to fully take advantage of the advantages of trade agreements and realize country-
specific possibilities, aiding the economic progress of many developing nations by raising
their exports and providing new job opportunities.
Over the last year, MAS' expansion strategy across its 41 worldwide garment production
plants has increased its workforce by more than 18,000 people. Since January 2021, MAS's
worldwide manufacturing capacity has grown by 15%, solidifying its position as a top
producer of garments and textiles on a global scale (Industry, 2022).

1.3.6. Commercial Bank is the transactional organization.

The Commercial Bank of Sri Lanka has a network of 268 branches and 932 automated
machines in Sri Lanka. It is the first bank in Sri Lanka to be completely carbon neutral,
among the Top 1000 Banks of the World, and the only bank to have done so for 10 years in a
row. The Bank's international activities include 19 branches in Bangladesh, a microfinance
firm in Myanmar's Nay Pyi Taw, and a fully functional Tier I bank with a controlling
shareholding in the Maldives (combank, 2021).

1.3.7. Differences between franchising, joint ventures and licensing.

Franchising organization.

Table 14 Franchising organization. (ecovis, n.d.)

Basis. Franchising.

Franchising is an arrangement in which the franchisor permits

franchisee to use their business model or brand name for a fee
Definition.
to conduct business, as an independent branch of the parent
company (franchisor).

Governed by. Franchise Act 1998.

Registration. Mandatory.

Training & support. Mandatory.

Process. Requires on going assistance from franchisor and used by

franchise.

Control. Franchisor exercises control over franchisee.

• KFC.
 Example. • McDonalds.
• Subway.
• Domino’s pizza.

Franchising organization advantages and disadvantages.

Table 15 Franchising organization advantages and disadvantages. (ecovis, n.d.)

Advantages. Disadvantages.

Franchisee receives access to a regionally Franchisee must make a significant upfront

diverse market without sacrificing the value commitment to uphold the franchisor's
of their brand. quality requirements.

Franchisee receives ongoing assistance from Franchisees only have a limited amount of
the franchisor to grow an existing control over how the firm is run.
prosperous firm.

Joint venture organization.

Table 16 Joint venture organization. (ecovis, n.d.)

Basis. Joint venture.

A joint venture is an agreement that 2 companies will provide

resources to each other or assist each other for a certain period
Definition.
of time and payment.

Governed by. Joint venture agreement.

Example. • Proton and Greely.

Joint venture organization advantages and disadvantages.

Table 17 Joint venture organization advantages and disadvantages. (ecovis, n.d.)

Advantages. Disadvantages.
 Acquire new knowledge and skills. Rarely is a joint venture's goal completely
obvious.

Better resources are available. Potential for uneven participation and

responsibility

Shared expenses Conflicts involving culture and management

Establishes long-lasting commercial Involves much preparation and study.

connections.

Greater likelihood of success. Clear communication is lacking.

Licensing organization.

Table 18 Licensing organization. (ecovis, n.d.).

Basis. Licensing.

Definition. Licensing is an arrangement in which a company (licensor)

sells the right to use IP* or produce a company’s product to
the licensee, for royalty.

Governed by. Contract laws between parties.

Registration. Not necessary.

Training & Support. Not provided.

Process. Involves one-time transfer of property or rights.

Use of trademark/ Logo. Can be licensed.

Control. Licensor does not have control over licensee.

Example. • Microsoft office.

• Ferrari logo.
Licensing organization advantages and disadvantages.

Table 19 Licensing organization advantages and disadvantages. (ecovis, n.d.).

Advantages. Disadvantages.

Without a significant financial expenditure, Licensor has little control over how its
the licensor successfully integrates intellectual property* rights are ultimately
vertically into the market. used.

Increase in brand value.

1.3.8. Industrial structure and competitive analysis.

What is industrial analysis.

Businesses and analysts use industry analysis as a technique for market analysis to
comprehend an industry's competitive dynamics. It aids in their understanding of the state of
a certain industry (Team, 2022).

Types of industry analysis.

“There are three commonly used and important methods of performing industry analysis.

1. Competitive forces model (Porter’s 5 forces)

2. Broad factors analysis (PESTEL)

3. SWOT analysis” (Team, 2022).

1. Competitive forces model (Porter’s 5 forces).

In his 1980 book "Competitive Strategy: Techniques for Analysing Industries and
Competitors," Michael Porter established one of the most well-known models ever created
for industry analysis, often known as Porter's 5 Forces (Team, 2022).

• Supplier power. An evaluation of the ease with which providers can raise prices. This
is determined by the quantity of providers for each crucial input, the distinctiveness of
 the supplier's good or service, the supplier's relative size and power, and the expense
of switching suppliers.
• Buyer power. an evaluation of how simple it is for consumers to influence price
reductions. The market's size, the value of each individual customer to the company,
and the cost to the customer of switching suppliers all influence this. When a
company has a small number of strong customers, they may frequently dictate
conditions.
• Competitive rivalry. The quantity and strength of market competitors is the major
motivator. With so many rivals selling similar goods and services, the market will
become less appealing.
• Threat of substitution. Customers are more likely to move to alternatives in reaction
to price rises when close replacement items are there in the market. This lessens the
market's allure and the influence of providers.
• Threat of new entry. Profitability is eroded as a result of new competitors entering
profitable areas. Profitability will decrease to a competitive rate unless incumbents
have substantial and long-lasting obstacles to entry, such as patents, economies of
scale, capital needs, or government laws (CGMA, 2013).

Advantages and disadvantages of a Porter’s 5 factor analysis.

Table 20 Advantages and disadvantages of a Porter’s 5 factor analysis. (RUSITH, n.d.).
Advantages. Disadvantages.

Assists in estimating industry competition. Compositional restrictions.

Display the areas where the threats and No quantitative dimensions available.
strengths are.

Determine which organizations have the Use with large companies is not
power. recommended.

Display Potential for business growth. Can serve as a foundation for analysis.

Help people understand corporate risk. Not relevant to all industries on a global
scale.
2. Broad factors analysis (PESTEL)

“A PESTLE analysis studies the key external factors (Political, Economic, Sociological,
Technological, Legal and Environmental) that influence an organisation. It can be used in a
range of different scenarios and can guide people professionals and senior managers in
strategic decision-making” (CIPD, 2021).

• Political. Political aspects include government leadership, change, and policies

related to international trade, as well as internal political challenges and trends, tax
policy, and movements in regulation and deregulation.
• Economic. Current and future economic growth, inflation, interest rates, job growth
and unemployment, labour costs, the influence of globalization, consumer and
company disposable income, and possible changes in the economic environment are
all economic variables.
• Social. Demographics (age, gender, race, and family size) as well as consumer
attitudes, views, and purchasing trends, population growth rates, employment trends,
sociocultural changes, ethnic and religious trends, and living standards are examples
of social variables.
• Technological. Technological factors affect marketing in
(1) new ways of producing goods and services.
(2) new ways of distributing goods and services.
(3) new ways of communicating with target markets.
• Environment. Due to the rising cost of raw resources, pollution reduction goals,
corporate social responsibility initiatives, and carbon footprint targets, environmental
issues are crucial.
• Legal. Health and safety, equal opportunity, advertising norms, consumer rights and
legislation, product labelling, and product safety are all legal considerations
(Libraries, n.d.).
Advantages and disadvantages of a PESTEL analysis.
Table 21 Advantages and disadvantages of a PESTEL analysis. (CIPD, 2021).
Advantages. Disadvantage.
It has a basic structure. It's simple to utilize inadequate data while
using PESTLE analysis, thus some users
oversimplify the quantity of data used for
judgments.
It makes it easier to comprehend the larger The statistics may have been derived using
business environment. presumptions that afterwards turned out to
be incorrect.
It promotes the growth of analytical and It is getting more and harder to predict
strategic thinking. changes that might have an impact on an
organization in the future due to the speed
of change.
An organization may be able to foresee The procedure must be done frequently to
potential business hazards and take be effective.
precautions to minimize or lessen their
effects.

3. SWOT analysis.

Strengths, Weaknesses, Opportunities, and Threats is often known as a SWOT analysis. It

may be a terrific technique to summarize different industry factors and ascertain what they
mean for the particular firm (Team, 2022).

• Strength. A resource or capability that the company can employ successfully to

accomplish its goals is referred to as a strength.
• Weakness. A weakness in an organization is a restriction, flaw, or defect that will
prevent it from attaining its goals.
• Opportunity. Any favourable circumstance in the surroundings of the organization is
considered an opportunity. A product or service's demand is typically increased by a
trend, shift, or unmet need, which enables the business to strengthen its position in the
market by providing it.
 • Threat. Any unfavourable circumstance in the surroundings of the organization that
might harm its strategy is considered a danger. A barrier, a restriction, or anything
external that might lead to issues, harm, or damage is a potential danger (IFM, n.d.).

Advantages and disadvantages of a SWOT analysis.

Table 22 Advantages and disadvantages of a SWOT analysis. (CIPD, 2021).
Advantages. Disadvantages.
It makes it easier to comprehend the Some SWOT analysis users reduce the
organization's advantages and information used to make judgments too
disadvantages. much since it's simple to utilize insufficient
information.
It promotes the growth of strategic The statistics may have been derived using
reasoning. presumptions that afterwards turned out to
be incorrect.
Senior managers may use it to concentrate There isn't a clear organization, therefore
on their strengths and create opportunities. important details might be lost.
It can help a company foresee potential It is getting harder and harder to predict
business hazards and take precautions to future changes that can have an impact on
lessen or eliminate their effects. a an organization due to the speed of change.

1.3.9. Market forces and economic operations.

Scarcity.
When a resource is scarce, it means that there are less of it than there are wants. Scarcity can
refer to any limited supply of a rare resource or a product. Paucity of resources is another
name for scarcity (Sweta, 2022).

Scarcity and the fundamental economic question.

1. What to product?
2. How to product?
3. For whom to product?

Concept of scarcity.
 • When there are not enough or expensive ways to achieve a goal, there is a shortage of
resources.
• A difficulty with the economy is scarcity. It demands the economic distribution of
finite resources to satisfy endless desires or requirements.
• Natural resources that are free might start to cost more to get and use, making them
scarce resources. In the event that demand increases relative to supply, scarcity also
develops.
• In his definition of "Economics," Lionel Robbins said that it is "the discipline that
investigates human behaviour as a link between aims and finite resources that have
alternative uses." Thus, the study of "Economics" makes it easier to distribute limited
resources.
• Simply said, time and money are two of the most in-demand resources. People don't
have enough of the first, the second, or both. People with little or no employment
would have an abundance of free time but no money to cover their fundamental
needs. People who work in demanding professions could have enough money to retire
yet not have enough time to eat or res.
• A resource's or commodity's scarcity is correlated with its demand. Even though a
resource is restricted in nature, it would not be scarce if it had no utility to anybody or
was not well understood (Sweta, 2022).

Choice.
Choice is the capacity of a producer or customer to select an item, service, or resource from a
variety of available possibilities. Being able to make your own decisions is viewed as a
crucial sign of economic prosperity and growth (EconomicsOnline, 2020).

Supply and demand.

In economics, the connection between the quantity of a good or service that producers want
to sell at different prices and the quantity that customers want to purchase is known as supply
and demand. It serves as the primary paradigm for determining prices in economic theory.
The combination of supply and demand in a market determines the price of a good. The final
price is known as the equilibrium price and signifies a compromise between the good's
producers and customers. When a market is in equilibrium, the amount of a good that
producers provide and consumers desire are equal (Britannica, n.d.).

Figure 2 supply and demand curve (Britannica, n.d.).

Demand curve.
Demand for a certain product is influenced by its price as well as possibly a wide range of
other variables, including consumer income, consumer tastes, and seasonal impacts. Basic
economic analysis entails studying the link between several price levels and the greatest
quantity that customers may possibly purchase at each of those prices while frequently
holding all other variables constant. The price-quantity combinations can be shown on a
demand curve, where the horizontal axis represents quantity, and the vertical axis represents
price. A demand curve nearly usually slopes downward, demonstrating buyers' desire to buy
more of the good at lower prices. While changes in the price of the commodity may be
tracked along a stable demand curve, changes in non-price elements would result in a shift in
the demand curve (Britannica, n.d.)

Figure 3 Demand curve(Britannica, n.d.).

Supply curve.
The amount of a good that is sold on the market is determined by a number of variables,
including the price that can be obtained for the good, the pricing of replacement goods, the
technology used in manufacturing, the cost and availability of labour, and other production
factors. Basic economic analysis entails maintaining all other potential price determinants
constant while examining the link between different prices and the amount that producers
could provide at each price. These price-quantity combinations may be shown on a supply
curve, where price would be represented on the vertical axis and quantity would be
represented on the horizontal axis. The readiness of producers to sell more of the product
they produce in a market with higher prices is typically reflected by an upward-sloping
supply curve. While changes in the price of the commodity may be tracked along a stable
supply curve, changes in non-price elements would result in a shift in the supply curve
(Britannica, n.d.).
Figure 4 Supply curve(Britannica, n.d.).

Income elasticity.
Income elasticity demand.
The link between a consumer's income and the demand for a particular good is measured by
income elasticity of demand. It could be receptive to a certain product or not, positive or
negative. In contrast to the price-demand equation, the demand for a product and consumer
income are directly correlated. If all other demand parameters remain constant, demand for a
typical item rises as consumer salaries rise and vice versa. The degree to which demand
responds to changes in customer income is known as income elasticity of demand. A change
in consumer income causes demand for a given product to alter more dramatically the higher
its income elasticity (Team, 2022).

Income elasticity demand types.

1. Positive income elasticity demand.
It describes a situation where a commodity's demand increases with an increase in consumer
income and decreases with a decrease in consumer income. Normal goods are commodities
with positive income elasticity of demand (Team, 2022).
Figure 5 Positive income elasticity demand (Team, 2022).

2. Negative income elasticity demand.

It describes a situation in which demand for an item grows as consumer income increases and
drops when consumer income decreases. Such commodities are inferior products (Team,
2022).
Figure 6 Negative income elasticity demand (Team, 2022).

3. Zero income elasticity demand.

It is consistent with the circumstance in which increased family income has no effect on the
production of commodities. These products are known as necessary items (Team, 2022).
Figure 7 Zero income elasticity demand (Team, 2022).

1.3.10. Stakeholders and responsibilities of organisations to meet different stakeholder

interests and expectations.

• Expectations of employees.
Employees naturally anticipate receiving more and more financial and non-financial
perks as business earnings rise. This assumption is appropriate up to a certain level for
the industry; above that, surplus revenues must be used for social concerns.

• Expectations of government.
If taxes are paid on time and the standards pertaining to pollution and environmental
care are followed, the federal and state governments should be satisfied. To collect
more money from the affordable group, however, efforts are occasionally made to
modify the tax. Instead, they may get businesses to engage in certain charitable
endeavours in the name of strengthening the country.

• Expectations of community.
Both the society at large and the industry want a clean environment.
The general public wants high-quality products at fair costs. In order for the people to
share in the advantages of economic progress, they also demand jobs for them.

• Expectations of supplier.
Regularly, suppliers and subcontractors are expected to provide quick payments or
payments in accordance with the predetermined conditions. Avoiding the effects of
late payments might be viewed as providing a service to society. Additionally, it will
be of great benefit to SSI units if they are able to purchase raw materials in advance.
 Low margins and late payments are the major reasons why suppliers feel demotivated.
The larger businesses must refrain from overly pressuring them on pricing.

• Expectation of dealers/Traders.
Dealers, in their opinion, anticipate more commissions and rewards for surpassing the
goal. This group is crucial, and if dealers show increasing interest, promotion efforts
will become easier. Sales might increase for corporations that can keep their dealers
satisfied.

• Expectation of customer.
A company's primary emphasis is its customers. Corporate must respond to any
consumer feedback concerning the product and related topics. To guarantee customer
satisfaction, value for money, and safe product use. This is a matter of corporate
social and commercial responsibility (N, n.d.).

2. Interrelation of the various functions within an organization

and how they link to organizational structure.
2.1. The various function within an organization.

2.1.1. The role of marketing in MAS holding.

Since MAS has been functioning in Sri Lanka for more than 20 years, they are a rather well-
established organization in that country. They plan to introduce a new apparel line that will
cater to the neighbourhood market. This indicates that the success of this new brand will
depend heavily on its marketing strategies (UKESSAYS, 2015).

Function:
[Link].
One of the most crucial elements of the marketing mix used by MAS Holdings, which offers
design to deliver solutions to the global apparel industry, is the product.

[Link].
To maximize the value of its goods, MAS Holdings, which offers design to deliver solutions
to the global apparel industry, relies on a hybrid pricing approach.
[Link].
The positioning of its products is extremely important to MAS Holdings, which offers design
to deliver solutions to the global apparel industry. This is because it directly affects customer
accessibility.

[Link].
The promotional methods and strategies employed are given a lot of weight in the marketing
plan for MAS Holdings, which offers Design to Delivery Solutions to the Global Apparel
Industry. The use of promotional methods enables MAS Holdings to communicate with and
directly impact customers while providing design to deliver solutions to the global apparel
industry.

2.1.2. The role of finance in MAS Holding.

Managing the company's finances is part of finance. The financial manager is responsible for
determining how much money is needed and when, how to spend the cash most effectively,
and how to secure the necessary finance. Financial planning, investing (spending money),
and financing are duties of the financial management (raising money) (services, n.d.).

Functions:
1. Producing invoices, checking payments are received and chasing up overdue payments.
2. Recording money received.
3. Checking and paying invoices received.
4. Preparing the payroll and paying staff salaries.
5. Advising senior managers on sources of finance for capital expenditure.

2.1.3. The role of Human Resource Management in MAS Holding.

The core of the HR strategy of MAS Holding is employee empowerment. This organized
framework, which places a heavy focus on recognizing and elevating individuals, inspires the
company's passionate and creative employees to think creatively, which sets MAS Holding
apart from its rivals (MAS, 2012).
Function:
1. “Job design and job analysis.
2. Employee hiring and selection.
3. Employee training & development.
4. Compensation and Benefits.
5. Employee performance management.
6. Managerial relations.
7. Labour relations.
8. Employee engagement & communication.
9. Health and safety regulations.
10. Personal support for employees.
11. Succession Planning.
[Link] Relations” (L, 2022).

2.1.4. The role of operation in MAS Holding.

The procedures and actions involved in converting raw materials into finished goods are
referred to as manufacturing operations. These procedures are usually carried out in factories
and manufacturing facilities.
Purchasing raw materials is the first stage in the manufacturing process. These resources are
subsequently converted into final goods through a number of production procedures (Ossian,
2022).

[Link] Fibber: The gathering of raw materials is the primary first step in the textile
production process.
[Link] manufacturing: The cleansed, sorted, and combined fibres are then used to make
yarns.
[Link] manufacturing: A loom is used to weave or knit yarn into cloth.
[Link] processing: For use in sewing tasks, fabric is both cut into smaller pieces and dyed in
various hues and designs.
[Link] manufacturing: Sewing the pieces of cloth together, inspecting the quality, and
shipping are all done by MAS Holding.
2.1.5. MAS holding organization context and the interrelationship.
The relationship with the HRM department.
Through training sessions, the HRM department constantly improves any department's
accuracy and productivity and aids that department in gaining experience. The relationships
between the marketing, finance, operation, and HRM departments must be strong for the
marketing, finance, and operation departments to work well together as a team.

The relationship with the finance department.

Every procedure and every business depend on money in some way. The finance department
provides a lot of statistics and useful information about the reasonable price that customers
anticipate for a certain product to the marketing department, HRM department, and operation
department. Additionally, it provides money to the marketing division for the creation of
advertisements, flyers, package designs, logos, and other materials pertaining to the business.

The relationship with the operation department.

In order to provide what people, need at a fair price, the marketing department, HRM
department and Finance department constantly collects data on customer demands as well as
consumer perceptions of product quality, cost, and value. This data is then sent to the
operation department. Through surveys, the marketing division also learns what customers
dislike about the product, which aids the operation division in raising the standard of the final
product. Additionally, based on the nature of the product itself, the marketing department
chooses where and to whom the business should sell the product.

The relationship with the marketing department.

Any department may improve its accuracy and productivity with aid from the marketing
division. The marketing division can also assist any department in gaining experience
through training sessions.
The relationships between the marketing and HRM departments, the operations department,
and the finance department must be good for the marketing department to have a strong team.
2.1.6. Functions in relation to overall organization mission and objectives.

• “A solution that fits the needs of it is customers.

• A solution that provides the possibility of having a competitive advantage.

• A common goal of marketing operations more efficient” (Nadisha, 2017).

• Stable financial system.

A successful financial system must have stability. It gives users the foundation they need to
confidently trade on financial markets and use financial institution services. Thus, the main
goal of MAS' financial oversight is to promote a stable system.

• Safe and sound financial intermediaries.

The safety and soundness of financial intermediaries such banks, insurance companies,
broker-dealer and fund management organizations is the main focus of most of MAS'
regulation and oversight.

• Safe and efficient financial infrastructure.

The platforms that offer the facilities and services that support financial market activity, such
as exchanges, clearing houses, and payment and settlement systems, are referred to as
financial infrastructure.

• Fair, efficient and transport organised markets.

• Transparent and fair-dealing intermediaries and offerors.
• Well-informed and empowered consumers (objective, 2004).

2.2. Organizational structure.

2.2.1. Organizational structure of MAS Holding.

Figure 8 Structure of MAS Holding(nadishan, 2017).

“According to the organizational structure of the MAS holding, here functional structure is
followed by MAS holdings in such a way that CEO is at the top, then there are the directors
of specific areas such as finance, human resource, manufacturing, technology, planning and
business are followed by managers. It is a very stubborn structure. This structure separations
work and employees by specialty. It is a hierarchical, usually vertically combined. It
emphasizes standardization in organization in organization and process for specialized
workers in comparatively narrow jobs. This structure forms the departments such as finance,
HR, manufacturing, technology, merchandising. Therefore, MAS holding employees report
directly to their managers who is responsibility for particular area then he/she report directly
to directors after that they will report directly to CEO” ([Link], 2021).

2.2.2. Bureaucratic organizational structure.

A bureaucratic organization is a government agency or for-profit corporation with strictly
adhered-to operational regulations and a rigid line of command. It is a hierarchical
administrative structure that is used in both public and commercial sector settings. People
frequently compare successful bureaucratic organizations to machines because of how
effectively they run. These companies are run by managers who provide orders to
departmental teams, who can produce a satisfying result by adhering to predetermined
workflow patterns (Team, 2021).
The majority of decision-making authority at MAS Holding is held by executives, such as
chief financial officers and chief operating officers. They spread that authority down the line
of command, frequently adding more managers at the top and more workers in lower ranks.

Advantages and disadvantages of bureaucratic organizational structure.

Table 23 Advantages and disadvantages of bureaucratic organizational structure. (Gaille,
2017).
Advantages. Disadvantages.
A bureaucracy is a fertile ground for There is little focus on developing new
creativity. capabilities.
There is guaranteed employment. It encourages a system that doesn't actually
provide true productivity.
It prevents bias. Spending determines what is done.
Power is centralized in bureaucracies. It acts as a boredom battery.
It promotes specialized learning. A bureaucracy restricts your options for
action.

2.2.3. Post- bureaucratic organizational structure.

Organizations that are post-bureaucratic are highly developed and have intricate standards
and processes. These organizations have a central administration made up of a number of
board members, and decisions are made democratically.
This promotes teamwork among employees as well as interpersonal respect, accountability,
and trust (Usmani, 2022).

2.2.4. Parent organization structure.

A firm is considered a parent company if it holds more than 50% of the total number of
voting shares in another company. As a result, it has authority over the other firm or
businesses and has the ability to actively affect how the business is run or adopt a more
passive ownership role (Team, 2022).
2.2.5. Strategic business unit organization structure.
If a major corporation uses the SBU model, it creates fully operational divisions to oversee
certain goods, services, clients, or regions. These distinct divisions were created with the
intention of boosting earnings.
Such an autonomous, specialized department or a sub-unit that focuses on a certain goal is
referred to as a strategic business unit. It has a distinct mission, vision, and course. A strategic
business unit plans independently, with objectives distinct from those of the parent company
and an emphasis on long-term business performance.
These sub-units have working autonomy under an SBU strategy, but they must report to the
parent organization on their performance and operational status. While some SBUs may be
able to make important business choices, the majority must report to the central office
(harappa, 2021).

Figure 9 Strategic business unit organization structure (Tu, 2022).

Advantages and disadvantages of strategic business unit organization.
Table 24 Advantages and disadvantages of strategic business unit organization. (harappa,
2021).
Advantages. Disadvantages.
Enhances Cooperation The additional layer of units introduced by
this structure raises operational costs and
administrative overheads.
Decentralized Power There isn't a direct connection between the
divisions and headquarters. This impedes
information flow, delays communication,
impairs decision-making, and prevents
accurate performance evaluation.
Efficiency and quickness Decentralization Reduces Flexibility and
Impairs Performance
Makes Accountability Certain Competition inside the organization for
funding and resources results in internal
conflicts, unhealthy competition, and
occasionally malpractice.

2.2.6. Matrix organization structure.

“The matrix organizational structure is a combination of two or more different kinds of
organizational structures, such as project management or functional management.
Additionally, the matrix structure is composed of both a traditional hierarchy of management,
where employees are managed by a functional manager, as well as additional project
managers who can manage employees across different departments. These two or more
managerial systems intersect on a grid or matrix (Team, 2019)”.
Figure 10 Matrix organization structure (Dili, 2017).

Advantages and disadvantages of matrix and functional level’s organizational structure.

Table 25 Advantages and disadvantages of matrix and functional level’s organizational
structure.
Advantages. Disadvantages.
Cooperation across several departments. The definition of managerial positions may
not be obvious.
Combines functional and project Teams may not have clearly defined roles.
management structures.
Communication across departments is Decision-making can be slowed down in
possible. some situations.
New skill sets can be acquired by Overload may be caused by too much
employees. labour.
Managers and team members maintain their Employee performance evaluations could
respective functional duties. become challenging.

2.2.7. Virtual organization

“A virtual organization is an alliance of separate individuals, business units or companies, all
with different core competencies, working together to bring a project to market faster. These
projects are usually initiated to serve a particular market opportunity. It may also apply to
individuals in a single company with separate operational objectives working cross-
functionally to meet a specific customer need” (CyberlinkASP, n.d.).
Advantages and disadvantages virtual organization.
Table 26 Advantages and disadvantages virtual organization.
Advantages. Disadvantages.
Reduced operating costs. Insufficient camaraderie.
Enhanced worker satisfaction. A greater emphasis on communication is
required.
Enhanced workforce efficiency. Risks to reputation.
Scalability and growth potential Issues with security and compliance.
improvements.

2.2.8. Transnational organization structure.

“In an organization with a transnational structure, the parent company and all the subsidiaries
work together in designing policies, procedures and logistics for delivering products and
services to the right market. (GreggU, 2021)”

2.2.9. International organization structure.

• “A framework within which management and operational tasks are performed.

• Network of job positions, responsibilities and authority at different levels.
• Identifies responsibilities for each job position and the relationships among those
positions.
• Specifies the relations between people, work and resources.
• OS affect the efficiency of a firm and it is value” (Plant, 2022).

International division structure.

• “Handles all of a company’s international operations.
• The head of international division, who directly responsible for the chief executive
officer, coordinates and monitors all foreign activities.
• The in charge of subsidiaries reports to the head of the international division.
• Some parallel but less formal reporting also takes place directly to various functional
heads at the corporate headquarters.
 • The corporate human resource department coordinates and implements staffing,
expatriate management and training and development at the corporate level for
international assignments.
• Future, it also interacts with the HR division of individual subsidiaries.
• Ensures the attention of the top management towards developing a holistic and unified
approach to international operations.
• Facilities cross-product and cross-geographic co-ordination and reduces resource
duplication.
• It is often used during the early stages of internationalization with relatively low ratio
of foreign to domestic sales and limited foreign product and geographic diversity”.

Figure 11 International organization structure (Plant, 2022).

2.2.10. Global organizational structure: 4types.

Global product structure.
• “In accordance with the groups of the product, the structure is divided such that the
specific product groups are taken care by the divisions.
• Under global product structure, the corporate product division is given worldwide
responsibility for the product growth.
 • The heads of product division do receive internal functional support associated with
the product from all other divisions, such as operations, finance, marketing and
human resources.
• Each of the division is considered as a profit centre.
• The global product structure is effective in managing diversified product lines.
• Such a structure is effective in managing diversified product lines.
• Such a structure is extremely effective in carrying out product modifications so as to
meet rapidly changing customer needs in diverse.
• It enables close coordination between the technological and marketing aspects of
various markets in view of the differences in product life cycles in these markets, for
instance in case of consumer electronics, such as TV, music players, etc.
• However, creating exclusive product divisions tends to replicate various functional
activities and multiplicity of staff.
• Little attention is paid to worldwide market demand and strategy.
• Lack of cooperation among various product lines may also result into sales loss.
• Product managers often pursue currently attractive markets neglecting those with
better long-term potential”.

Figure 12 Global product structure (Plant, 2022).

Global geographic structure.
• “The operations of a business are controlled on the basis of geographical location.
• Adopted by companies with mature businesses and narrow product lines.
• Allows the independent heads of various geographical subsidiaries to focus on the
local market requirements, monitor environmental changes, and respond quickly and
effectively.
• The corporate headquarter is responsible for transferring excess resources from one
country to another, as and when required.
• The corporate human resource division also coordinates and provides synergy to
achieve company’s overall strategic goals between various subsidiaries based in
different countries.
• Such structure is recommended when the product lines are not too divers, and
resources can be shared.
• Subsidiaries in each country are deeply embedded with nationalistic biases that
prohibit them from cooperating among each other”

Figure 13 Global geographic structure (Plant, 2022).

Global functional division structure.
• “Aims to focus the attention of key functions of a firm.
• Each functional department or division is responsible for it is activities around the
world.
• E.g.: The operations department controls and monitors all production and operational
activities.
• Similarly, marketing, finance and human resource divisions co-ordinate and control
their respective activities across the world.
• Takes advantages of the expertise of each functional division and facilitates
centralized control.
• MNCs with narrow and integrated product lines, such as caterpillar, usually adopt the
functional organizational structure.
• Adopted by automobile MNEs bus have now been replaced by geographic and
product structures during recent years due to their global expansion”.

Figure 14 Global functional division structure (Plant, 2022).

Global matrix structure.

• “An integrated organizational structure.
• Super-imposes on each other more than one dimension.
• Comprises product divisions intersecting with various geographical areas or
functional divisions.
 • Shares joint control over firm’s various functional activities.
• Facilitates greater interaction and flow of information throughout the organization.
• Since the matrix structure has an in-built concept of interaction between intersecting
perspectives, it tends to balance the MNE’s prospective, taking cross-functional
aspects into consideration.
• Facilitates ease of technology transfer to foreign operations and of new products to
different markets leading to higher economies of scale and better foreign sales
performance.
• Adopted successfully by a large number of MNE’s such as Royal Dutch/Shell, Dow
Chemical, etc”.

Figure 15 Global matrix structure (Plant, 2022).

 Section B

3. Both the positive and negative influence/impact the macro

environment has on business operations.
3.1. What are Macro Environment Factor.
A macro environment is the collection of circumstances that affect the economy as a whole
rather than just one industry or geographical area. The macro environment, in general,
comprises developments in the GDP, inflation, employment, expenditure, and monetary and
fiscal policy. As contrast to the performance of a specific business sector, the macro-
environment is intimately related to the overall business cycle (TEAM, 2021).

Demographic environments.
The study of the human population in relation to its size, density, age, location, gender, race,
occupation, and other data is known as demography. Since individuals make up the
demographic environment and they are what propel markets forward, marketers are
particularly interested in it. For enterprises, the huge and diversified demographics present
both possibilities and difficulties (Philip, 2019).

Economic environments.
The economic environment includes various elements that may have an impact on consumers'
purchasing power and spending habits. For instance, it is not ideal for a business to begin
exporting its goods to a nation before researching the country's consumer purchasing habits.
GDP, GNI, import duty rate, unemployment, inflation, spending patterns, and disposable
personal income are all significant economic indicators (Philip, 2019).

Natural environments.
It refers to the physical environment or natural resources that are needed by marketers as
inputs or that are impacted by marketing activity. As environmental concerns have intensified
in recent years, the ecological circumstances have become a significant aspect to take into
account. Floods, droughts, air and water pollution, etc. are a few examples (Philip, 2019).
Technological environments.
The macro environment is significantly influenced by technology. Before spending money on
any marketing initiatives, a company must do a comprehensive analysis of the adoption and
diffusion of technology. The business must be aware of the level of technology adoption and
user interface development in the area in order to plan its communications and marketing
initiatives effectively (Philip, 2019).

Political environments.
The political environment's changes have a big impact on marketing choices. This pertains to
the laws, governmental bodies, and pressure groups that can sway or restrain different people
or groups in a certain society (Philip, 2019).

Cultural environments.
The cultural environment is linked to elements that have an impact on societal norms,
preferences, perceptions, and behaviour. For the purpose of making marketing decisions,
organizations need to be aware of the cultural values and customs that are prominent in
society. Many cultural errors may occur when businesses fail to comprehend other cultures.
For instance, a sign that has a favourable connotation in one culture may have a bad
connotation in another (Philip, 2019).

3.2. Positive and negative influence/impact the macro environment has on

business operation.

3.2.1. Positive impacts that macro environment has on business.

1. Helps in Achieving 0bjectives.
A corporation will not be successful in achieving its goals if it fails to adapt its strategy to the
business environment or if it does not change it in response to environmental demands.
Environmental analysis, on the other hand, helps businesses to examine their environments
and create strategies that will successfully achieve their goals (accountlearning, n.d.).

2. Identification of threats.
Businessmen have time to foresee possibilities and make plans to take optional responses to
these opportunities thanks to business environment diagnosis and analysis. It also aids in
developing early warning systems to stop threats or methods that can make a threat work in
the firm's favour (accountlearning, n.d.).

[Link] in the marketplace.

Every company should be informed of what is occurring in the market and should stay in
continual contact with it. The corporation cannot accomplish its corporate goals if it does not
respond to environmental demands by altering its methods (accountlearning, n.d.).

[Link] and opportunities.

The company's current strategy and the achievement of its goals are threatened by several
environmental issues. On the other hand, some elements offer higher potential for a
significant achievement of the goals. The analyst will be able to identify the inherent risk and
seize the chances by doing a thorough examination of the environmental conditions
(accountlearning, n.d.).

3.2.2. Negative impact that macro environment has on business.

[Link] of forewarning of unforeseen events.
Analysis of the environment does not forecast the future. Additionally, it does not make the
organization's uncertainties disappear. Businesses occasionally deal with unanticipated
situations that arise during analysis. However, environmental analysis should work to reduce
the frequency and severity of surprises that could strike a company organization
(accountlearning, n.d.).

[Link] assurance as to organization effectiveness.

Organizational performance cannot be guaranteed by environmental study. It just serves as a
source of data for testing and developing strategies. Managers occasionally rely on data
blindly without questioning its verifiability or correctness. If this is the case, the results might
be deceptive (accountlearning, n.d.).

[Link] fully reliable.

Typically, individuals rely too heavily on the data gathered from ambient scanning. But this
is not the case in reality. One is liable to become confused when information is overloaded
(accountlearning, n.d.).
[Link] of strategic approach.
The key to every organization's success is taking calculated risks and being adventurous.
Environmental analysis frequently causes someone to be overly careful in their approach, and
they are more prone to fall behind the events. Therefore, this examination needs to be done
strategically (accountlearning, n.d.).

3.3. PESTLE analysis of the macro environment of MAS Holding.

Table 27 PESTLE analysis of the macro environment of MAS Holding.
Political factor. The first PESTEL component that has a significant influence on the
business is "political considerations," which also determines the long-
term viability of the company. Governments can collect taxes and
impose trade restrictions throughout the year, and these actions may
have an impact on the general economic climate. Being well-known
on a global scale makes MAS Holdings more susceptible to various
political, structural, and systemic concerns. We Provide Design to
Delivery Solutions to the Global Apparel Industry (Murphy, 2021).
Economic factor. Economic factors, the second element of the PESTEL framework, are
made up of complex variables that have a direct impact on how well
organizations can reach their financial goals. To forecast both the
short-term and long-term company development in the selected
sector, MAS Holdings, which provides design to delivery solutions to
the global apparel industry, must have a thorough grasp of these
aspects (Murphy, 2021).
Social factor. The primary social values, norms, and practices of the society in
which business organizations operate are represented by social
elements in the PESTEL framework. MAS Holdings, which offers
design to delivery solutions to the global apparel industry, must
carefully manage social elements because many extremely successful
corporate organizations have failed because they failed to adapt to the
socio-cultural context (Murphy, 2021).
Technological It is crucial for MAS Holdings, which provides design to delivery
factor. solutions to the global apparel industry, to research and foresee
current and future technological trends in order to ensure the long-
 term survival of the company. In today's business environment, where
the pace of technological development is accelerating and business
organizations are heavily investing in emerging technologies to stay
ahead of the competition (Murphy, 2021).
Environment Due to stakeholders' heightened attention to sustainability and
factor. environmental preservation, environmental analysis has taken on
major significance in the modern corporate environment. To prevent
litigation and damage to its reputation in the market, MAS Holdings,
a provider of design-to-delivery solutions to the global apparel
industry, should educate itself thoroughly on environmental standards
(Murphy, 2021).
Legal factor. Legal considerations give more particular information about various
rules and regulations, primarily concerning employment laws, health
and safety laws, intellectual property laws, and consumer protection
laws, in contrast to political considerations, which offer a broader
perspective. If MAS Holdings fails to abide by the rules of the host
nations, it may be subject to costly litigation. MAS Holdings Provides
Design to Delivery Solutions to the Global Apparel Industry
(Murphy, 2021).

4. Interrelationship of strength and weakness with external

macro factor.
4.1. SWOT and TOWS analysis.
“TOWS and SWOT are acronyms for different arrangements of the words: Strengths,
Weaknesses, Opportunities and Threats. But, while SWOT tends to focus on brainstorming
all points that fall under these four headings, TOWS takes it to the next step” (Team, n.d.).
4.1.1. SWOT analysis of MAS Holding.
Table 28 SWOT analysis of MAS Holding.
Strength. The first component of the SWOT matrix is Strengths of MAS
Holdings Strategic Corporate Social Responsibility in the
Apparel Industry (Byrne, 2018).
• One of the organization's key strengths might be its
regional presence in several places. It establishes the
company's market penetration and guarantees simple
accessibility.
• Due to the organization's diverse product offering, it
may be possible to increase the client base and balance
off losses from one product category with gains from
another.
Weakness. The second component of the SWOT matrix is Weaknesses of
MAS Holdings Strategic Corporate Social Responsibility in
the Apparel Industry (Byrne, 2018).
• Environmentalists may criticize the organization for its
inadequate waste management procedures and
inability to incorporate sustainability into commercial
processes.
• Poor inventory management techniques might cause
the business to become less efficient. Lack of supply
or too much inventory can lead to.
Opportunities. The third column of the SWOT matrix contains the
opportunities for MAS Holdings Strategic CSR in the apparel
industry. The strategic CSR efforts of MAS Holdings in the
apparel sector (Byrne, 2018).
• The population's exponential increase, especially in
the existing or potential client categories, presents a
significant opportunity for corporate organizations to
expand.
 • If the corporate organization has strong market
information, the changing client wants, tastes, and
preferences may present an opportunity.
Threats. The fourth column of the SWOT matrix contains threats
related to MAS Holdings' strategic CSR efforts in the apparel
sector. The strategic CSR efforts of MAS Holdings in the
apparel sector (Byrne, 2018).
• The organization may find it challenging to attract
personnel with the appropriate skill set due to a
shortage of competent labour on the market.
• The organization's capacity to maintain and grow its
client base is impacted by the rising number of direct
and/or indirect rivals.

4.1.2. Interrelationship of strength and weakness with external macro factors.

Interrelationship of strength with external macro factor.
• Strong communication.
• Responsible and financially stable.
• Good listening skills.
• Interest in one another’s hobbies.

Interrelationship of weakness with external macro factor.

• No drive to learn new things together.
• Not committed to the cause of each other’s happiness.
• Inconsistent life goals and aspirations.

4.1.3. External macro factors influence decision making.

The SWOT analysis outlines the methods utilized to create a particular business model based
on the resources and skills that MAS Holding has access to as well as the industry in which
the firm works. It takes into account internal and external, positive and negative, aspects of
the firm's success. The study helps the business anticipate or foresee shifting patterns that are
advantageous to any organization's decision-making process.
4.1.4. Strategies implemented by MAS Holding to overcome threats and to make use of
the opportunities.
Strategies (Strengths) implemented by MAS Holding to make use of the opportunities.
The geographic reach of MAS Holdings Strategic Corporate Social Responsibility in the
Apparel Industry in various locations might aid the company in entering the global market
and focusing on a client base that is geographically spread (Byrne, 2018).

MAS Holdings Strategic Corporate Social Responsibility in the Apparel Industry's robust
online presence on various social networking sites may help the company take advantage of
opportunities presented by the expanding e-commerce trend (Byrne, 2018).

The MAS Holdings Strategic Corporate Social Responsibility in the Apparel Industry's well-
developed and well-integrated IT infrastructure enables it to benefit from newly innovative
technology (Byrne, 2018).

Strategies (Strengths) implemented by MAS Holding to make use of the threats.

Access to suppliers that provide raw materials at a cheaper cost will assist MAS Holdings
Strategic Corporate Social Responsibility in the Apparel Industry overcome the danger posed
by growing inflation (Byrne, 2018).

The labor scarcity issue in the market may be resolved by the competent and dedicated human
resource of MAS Holdings Strategic Corporate Social Responsibility in the Apparel Industry
(Byrne, 2018).

Due to high levels of cross-cultural knowledge, workplace diversity can assist an organization
in viewing globalization as an opportunity rather than a danger (Byrne, 2018).

4.1.5. Impacts that both macro and micro factors have upon business objectives and
decision-making.
Any level of society, including people, families, and organizations like small enterprises, can
be impacted by political trends. The legal framework under which small companies operate,
the market circumstances that influence customer behavior, and the amount of government aid
provided to small firms may all be impacted by trends in policies made by government agencies
and leaders (Ingram, n.d.).

Managers base important judgments on global and micro circumstances. If macro and micro
circumstances are favorable, managers establish wide growth objectives for the future. For
instance, managers might set larger growth goals and adopt a development plan that would
raise the firm's volume in new markets if economic conditions like financing rates are lower.
On the other side, a limited expansion policy with more internal market development can be
pursued if there is political instability or higher trade barriers. My opinion is that macro and
micro environmental influences may have both good and negative effects on company
operations, goals, and decision-making (Ingram, n.d.).

Worries about national security may influence consumers' spending and saving patterns across
the economy, and political movements may significantly contribute to either escalating or
decreasing security concerns. The individuals and parties in power at any one moment directly
affect how a country interacts with its neighbors in the international community, especially its
adversaries. A peaceful country can inspire individuals to spend more money overall and to put
more money into long-term investments like companies and houses (Ingram, n.d.).

Watching political trends might help predict changes to labor legislation. Political candidates
frequently express their opinions publicly about issues such as minimum wages, insurance
requirements, labor-related taxes, and rules governing the conditions of work. Any change in
labor rules may result in new costs for a company, and these costs may be substantial for small
companies with little financial reserves. For instance, a change in the minimum wage may have
a direct impact on the profitability of a small business (Ingram, n.d.).
Conclusion.
The Sri Lankan textile industry plays a major role in both the domestic and global textile
industries. Its addition to industrial output, the creation of jobs, and foreign currency profits
all have an impact on the economy of Sri Lanka. Additionally, the sector makes a sizable
contribution to the global output of textile fibres and threads, including jute. It ranks first in
the production of jute, second in the production of silk, third in the production of cotton and
organic fibre, and fifth in the production of manufactured fibre. One of people's most
fundamental needs is being met by the textile industry, which is crucial for keeping steady
development and raising living standards. The Sri Lankan government has also added new
programs to the annual plan to help the cloth industry. These include plans for promoting
foreign investment to draw foreign direct investment in industries like fabrics, apparel, and
equipment, among others.
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 Appendix.

These are table of content of my presentation.

These is the classification of the business environment.
There are two types of business environment as External and Internal and the external
environment are 2 types as macro and micro.
Internal environment ex: Employee, Manager, owner.
External environment are 2 types,
Macro environment ex: Customer, Competitors, supplier.
Microenvironment Ex: Political, legal, social
 ternal environment.

External components influencing a business environment are further

classified into two categories:
1. iro environment.
Microenvironment is the business s immediate external environment that
influences its performance as it has a direct bearing on the firm s regular
business operations (kamble , 2021)
. acro environment.
The macro environment includes remote environmental factors that
influence an organization. The extent of influence a macro element can
have on a business is significant as they usually affect the industry as a
whole (kamble , 2021).
Look at this diagram.
P - Political
E -Economical
S -Social
T - Technological
E - Environmental
L - Legal
 ➢ Strength and opportunities.
techniques in MAS Holding that make the most of advantages by utilizing strengths.
➢ Strength and threats.
MAS Holding techniques that reduce hazards by utilizing advantages.

➢ Weakness and opportunities.

Strategies in MAS Holding that maximize strengths while minimizing flaws.
➢ Weakness and threats.
MAS Holding tactics that reduce vulnerabilities and avert dangers.
This is my reference list.
So, this is the end of my presentation. I hope you got a clear understanding of my
presentation and thank you for listing.