X-000009-1603383942652-50963-BBE - Assignment 01

Higher Nationals
Internal verification of assessment decisions – BTEC (RQF)

INTERNAL VERIFICATION – ASSESSMENT DECISIONS
Programme title Pearson Higher Nationals in Business
Ms. Lasitha
Assessor Internal Verifier
Business and Business Environment
Unit(s)
Understanding different types of organizations in different perspectives and analyze the link
Assignment title
between organizational structure and the functions.
Peujini Johnson
Student’s name
List which assessment Pass Merit Distinction
criteria the Assessor has
awarded.
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justified by the assessor’s comments on the Y/N
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Higher Nationals - Summative Assignment Feedback Form
Student Name/ID Peujini Johnson / kanx000009

Unit Title Business and business environment
Assignment Number 01 Assessor
22/10/2020 Date Received 1st
Submission Date
submission
Date Received 2nd
Re-submission Date
submission
Assessor Feedback:
LO1 Explain the different types of organisations including their size and scope
Grade: Assessor Signature: Date:
Resubmission Feedback:
Grade: Assessor Signature: Date:
Internal Verifier’s Comments:
Signature & Date:
* Please note that grade decisions are provisional. They are only confirmed once internal and external moderation has taken place and
grades decisions have been agreed at the assessment board.
Pearson
Higher Nationals in
Business
Unit: Business and Business Environment
Assignment 01
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(peujinijohnson@gmail.com) (22/10/2020)
Higher National Certificate/Diploma in Business
Assignment Brief
Student Name /ID Number Peujini Johnson
Unit Number and Title Unit 01: Business and Business Environment
Academic Year 2019/20
Unit Tutor Ms. Lasitha
Assignment Title Understanding different types of organizations in different

perspectives and analyze the link between organizational
structure and the functions .
Issue Date 18/10/2020
Submission Date 22/10/2020
IV Name & Date
Submission format
The submission should be in the form of an individual written report written in a concise, formal
business style using single spacing and font size 12. You are required to make use of headings,
paragraphs and subsections as appropriate, and all work must be supported with research and
referenced using Harvard referencing system (in-text and end-text referencing).
The recommended word count for the report is 2,000–2,500 words .

Unit Learning Outcomes:
LO1 Explain the different types of organisations including their size and scope.
LO2 Demonstrate the interrelationship of the various functions within an organisation and how
they link to organizational structure.
Assignment Brief and Guidance:
Scenario:
Suppose you are recently recruited as a Business Analyst to John Keells Holdings which expects
to diversify its product portfolio to different industries. As your initial project, you are required
to prepare a management report to the Board of Directors on “Analysis of the Different
industries and their environments”
--------------------------------------------------------------------------------------------------------------------------------
You are required to investigate and explain three different types of organisations (including the
company given), their size and classification to highlight differences between them. This should
include their legal structure, size and scope, as well as their key stakeholders.
You must then explain various functions of the selected organization and create an
organisational chart to explain the interrelationships between different functions. Explain
advantages and disadvantages of the available interrelationships. You must also explain how
this would be different in comparison to other two organisations.
This will be presented as a report to the CEO and should include the following:
1. Introduction to provide an overview of different types of organisations and the growth of
the international business environment.
2. An explanation of each of the chosen organisations, including:
 background details of the organisation;
 the products and services they supply;
 the size and scope of the organisation;
 their vision, mission and business objectives;
 the organisational and legal structure;
 Information about their stakeholders.
3. A detailed explanation of
 The chosen organisations, their organisation charts to show how the functions
interrelate with each other .
 How the functions of the organizations are linked to the organizational objectives.
Grading Rubric
Grading Criteria Achieved Feedback
P1 Explain different types and purposes

of organisations; public, private and
voluntary sectors and legal structures.
P2 Explain the size and scope of a range

of different types of organisations.
P3 Explain the relationship between

different organisational functions and
how they link to organisational
objectives and structure
M1 Analyse how the structure, size and
scope of different organisations link to
the business objectives and product
and services offered by the
organisation
M2 Analyse the advantages and
disadvantages of
interrelationships between
organisational functions
and the impact that can have upon
organisational structure
D1 Provide a critical analysis of the
complexities of different types of
business structures and the
interrelationships of the different
organisational functions.
ESOFT METRO CAMPUS KANDY 1
Different
types of
Business
Organization
PEUJINI JOHNSON
HND in Business Management
Table of Contents
1. Introduction to Different Types of Business Organizations.....................................................7
PEUJINI JOHNSON KANX000009 01

1.1 Classification of business organizations based on the ownership..........................................7

1.2 Classification of business organizations based on the objectives..........................................8
1.2.1 Profit businesses.............................................................................................................8
1.2.2 Non -profit businesses....................................................................................................8
1.3 Classification of business organization based on the scale....................................................9
1.3.1 Small & medium scale businesses..................................................................................9
1.3.2 Large scale businesses....................................................................................................9
1.3.3 Different measures of size..............................................................................................9
1.4 Information on the above mentioned organization..............................................................11
1.4.1 Private sector organization...........................................................................................11
1.4.2 Public Sector Business Organizations..........................................................................15
1.4.3 Voluntary Organizations..............................................................................................16
2. John Keells Holdings PLC....................................................................................................18
2.1 Background of John Keells Holdings PLC..........................................................................18
2.2 Products & services of John Keells Holdings PLC..............................................................19
2.4 Vision and Mission statement of John Keells Holdings PLC..............................................21
2.5 Objectives of John Keells Holdings PLC............................................................................21
2.7 Legal form of John Keells Holdings PLC...........................................................................23
3. Bank of Ceylon Sri Lanka.....................................................................................................26
3.1 Background details of Bank of Ceylon Sri Lanka...............................................................26
3.2 Products and services of Bank of Ceylon...........................................................................27
3.3 Size and scope of Bank of Ceylon.......................................................................................28
3.4 Vision and Mission statement of Bank of Ceylon...............................................................28
3.5 Objectives of Bank of Ceylon.............................................................................................29
3.6 Legal form of Bank of Ceylon.............................................................................................29
3.7 Organizational structure of BOC.........................................................................................30
3.8 Stake holders information in BOC......................................................................................31
4 Friends Lanka Child Foundation...........................................................................................33
4.1 Background details of Friends Lanka Child Foundation.....................................................33
4.2 Services of Friends Lanka Child Foundation.......................................................................33
4.3 Size and scope of friends Lanka child foundation...............................................................35
4.4 Vision & mission statement of Friends Lanka Child Foundation........................................36
4.5 Objectives of Friends Lanka Child Foundation...................................................................36
4.6 Organizational structure of friends Lanka child foundation................................................37

4.7 Legal form of Friends Lanka Child Foundation..................................................................38

4.8 Stake holders of Friends Lanka Child Foundation...............................................................38
5 Relationship between Different Organizational Functions And How They Link To
Organizational Objectives And Structure......................................................................................39
5.1 Organizational functions.....................................................................................................39
5.2 Organizational structure......................................................................................................41
5.2.1 Types of organizational structure.................................................................................41
6 Organizational function of JKH, BOC, FLCF.......................................................................42
6.1 Organizational function of JKH..........................................................................................42
6.2 Organizational function of BOC..........................................................................................43
6.3 Organizational function of Friends Lanka Child Foundation..............................................44
7 Interrelationships of Organizational Functions with Advantage and Disadvantage...............45
7.1 Interrelationships of organizational functions of John Keells Holdings PLC and
the advantages and disadvantages of each relationship.............................................................45
7.2 Interrelationships of organizational functions of Bank of Ceylon with Advantages
and Disadvantages.....................................................................................................................47
7.3 Interrelationships of organizational functions of Friends Lanka Child Foundation.............49
8 The size scope and structure of different organization..........................................................51
9 Conclusions and recommendations.......................................................................................52
9.1 Conclusions.........................................................................................................................52
9.2 Recommendations...............................................................................................................52
10 References.............................................................................................................................53

Table Of Figures
Figure 1 Classification based on Ownership........................................................................7
Figure 2 Classification based on Objective..........................................................................8
Figure 3 Classification of Business Organization................................................................9
Figure 4 Size of JKH..........................................................................................................20
Figure 5 Organizational Structure of JKH.........................................................................22
Figure 6 Stakeholder engagement of JKH.........................................................................24
Figure 7 Size of BOC.........................................................................................................28
Figure 8 Organizational Structure of BOC........................................................................30
Figure 9 Stakeholders information in BOC.......................................................................31
Figure 10 Size of FLCF......................................................................................................35
Figure 11 Organizational structure of FLCF......................................................................37
Figure 12 Stakeholders of FLCF........................................................................................38

Executive summery
A collection of an individual and structured entirely which produces and deliver goods and
services utilizing limited resources to achieve its specific goals and objectives are business
organizations. Organizations can be divided in to public and private sectors and the can be further
classified in to three types based on their size, type and objectives.
John Keells Holdings PLC is a public limited liability company with diversified products and
services. And it is a largest listed company in Colombo stock exchange. It has widened its
business all over the country. It is a company with 200 to 225 branches all over the country. The
organizational structure, size and scope of the company impacts the objectives of the organization
and the functions of the organizations and their interrelationship is more important to achieve its
business goals and objectives.
BOC is a large banking network in Sri Lanka with more than 600 branches and more 600 ATMs
all over the country and more than 8000 employees are working under BOC. BOC is a public
sector organization. It has a number of services to the customers. The company’s size scope and
organizational structure has a vital play in the organizational objectives and goals.
Friends Lanka Child Foundation is a voluntary organization in Sri Lanka to serve the needy
children in the country. The organization carried out various projects regarding the children in our
country. Comparing to the above mentioned two organizations the size scope organizational
structure and the organizational function of this organization is very different.
The objectives between this three organizations are different from each other.JKH is a profit
objective organization, BOC is a service objective organization and FLCF is a non- profit
organization. The interrelationship between the organizational function of the above mentioned
three organizations has many impacts on the objectives.

Acknowledgment
The success and final outcome of this assignment required a lot of guidance and
assistance from many people and I am extremely fortunate to have got this all along the
completion of my assignment work. I respect and thank Ms. Lasitha for giving me all
support and guidance which made me complete the assignment on time. I extremely
grateful to her for providing such a nice support and guidance
I am very grateful because I managed to complete this assignment within the time given
by Ms. Lasitha. I would like to express my gratitude to my lecturer for her teaching and
guidance.
Thank you
Peujini Johnson

1. Introduction to Different Types of Business Organizations

Organization is an establishment such as association, an institute, and a company consists of more
people with a particular purpose. The main purpose of the organization is to serve and satisfy its
customer.
A collection of an individual and structured entirely which produces and deliver goods and services
utilizing limited resources to achieve its specific goals and objectives are business organizations.
Companies are organized differently. These different types of organizations depend on different
standards.
 Based on ownership
 Based on objective
 Based on scale
1.1 Classification of business organizations based on the ownership

Owners are individuals who provide money for a business and take risks by participating in it. The
owner takes advantage of the profits coming from the business and puts the business at a loss.
Accordingly, commercial firms can be classified into the following categories based on their
ownership.
 Private sector organization
 Public sector organization
Sole
proprietorships
partnerships
e ss o rgan izati o n
Private sector Incoporated

organization companies
co-operative
soceities
Franchise
B u sin ess
Provincial councils
Public sector Local governm,ent

organization institute
vountary Businesses under

organizations central government
Figure 1 Classification based on Ownership

1.2 Classification of business organizations based on the objectives

Different organizations are created to achieve different goals. Its owners also run businesses to
achieve their goals. Depending on the industry's objectives, it can be classified as:
 Profit businesses
 Non-profit businesses
Sole Incoporated
proprietorships companies
private
partnerships Franchise
Profit organization
state companies
Public
Business
organizations
co-operative
societies
Private
Other associations
Non profit
businesses
State corporations
Public
Departments
Figure 2 Classification based on Objective
1.2.1 Profit businesses

The main purpose of business is to make profit, they are called profit based business. This type of
transaction is done in the private and public sectors.
1.2.2 Non -profit businesses
The main objective of this business is to ensure the welfare of the members and society. Not for
profitable businesses but for both the public and private sectors.

1.3 Classification of business organization based on the scale

The size of the business firm depends on different criteria. The following are some of the
standards used:
 Amount of capital invested in a business
 Number of employees
 Amount of the energy used
 Market share of the business
Based on the scale, business organization can be categorized into two parts.
Small
businesses
Business medium scale

organization businesses
large scale
businesses
Figure 3 Classification of Business Organization
1.3.1 Small & medium scale businesses
Different organizations have set different criteria for classifying small and medium-sized
enterprises. Accordingly, small and medium-sized enterprises are defined as companies with a
small number of employees compared to large companies and with a small market share.
1.3.2 Large scale businesses
Companies that invest enough capital, employ large numbers of people, have large market
share and have the ability to influence the industry in question are called large corporations
1.3.3 Different measures of size
 Revenue
Revenue is used as a measure of size - especially when comparing firms in the same
industry. This is less effective when comparing firms in different industries because some
may be involved in the production of 'high value' products such as precious jewelry, and
others may be 'low-value' products such as cleaning services. . This measure is required to
calculate market share.
 Capital employed

In general, the larger the business, the higher the cost of capital required for long-term
investment or the higher the capital employed.
 Market capitalization
Market capitalization can only be used for companies whose shares are listed on the stock
exchange.
 Market share
Market share is a relative measure. If a company has a high market share, it should be
among the industry leaders and should be relatively large. However, when the total
market size is small, a high market share does not indicate a very large company.

1.4 Information on the above mentioned organization

1.4.1 Private sector organization
Businesses owned by an individual or a group of individuals are known as private sector
businesses. Private sector businesses can be further classified as:
 Sole proprietorships
 Partnerships
 Incorporated companies
 Cooperative societies
 Franchise
1.4.1.1 Sole proprietorship
A type of business unit where one person is solely responsible for providing the capital and bearing
the risk of the enterprise, and for the management of the business. A sole proprietorship is a business
owned by only one person. It is easy to set-up and is the least costly among all forms of ownership.
This is a type of business, where the size is small due to limited ownerships. In the modern business
world, the scope sole proprietorship is very limited and the main intension of the business is to earn
profit. A sole proprietorship is considered as the easiest business o form because of the limited legal
formalities. If a sole proprietorship is conducting in sole trader’s name it is not mandatory to register.
If a sole proprietorship is conducting in a different name, it is mandatory to register under Act No. 06
of 1918.If the business is registered it provides an identity and recognition to the business, provides
an ownership of the business name and easier to obtain loans.
Examples: studio
Grocery shops
Fruits stand
Hair saloon
Functions of sole proprietorships

 The sole trader has to accept all the responsibilities to run the business.
 The sole trader of the business must monitor all the activities of the business.
 Obtaining capital is one of the necessary duties of a sole proprietor.
 Managing all the activities of sole proprietorship.
Characteristics of sole proprietorship

 Single ownership.
 No separation of ownership and management.
 Less legal formalities.
 No separate entity.
 No sharing of profit and loss.
 Unlimited liability

Merits of sole proprietorship

 East to form and wind up.
 Quick decision and prompt action.
 Direct motivation.
 Flexibility in operation.
 Maintenance business secrets.
 Personal touch.
Limitations of sole proprietorship

 Unlimited liability of the owner.
 Limited resources.
 Lack of continuity.
 Not suitable for large scale operations.
 Limited managerial expertise.
1.4.1.2 Partnership
A partnership is a business owned by two or more persons who contribute resources into the
entity. The partners divide the profits of the business among themselves. The volume or quantity
of goods or services supplied, size of the market relevant to the product and the capital strength
determine the size of the partnership. The intension of the partnership is to minimize the
limitations such as unlimited liability, less capital, risk in decision making which were in sole
proprietorship. The common motive of partnership is to earn profit. A partnership can be formed
verbally, under a written agreement or by action of two or more persons. But the most suitable
form is should be formed in writing. Fraud prevention Act of 1840 states that any partnership
with more than Rs 1000 capital should be formed under a written agreement. This is the
document which states the regulation with regard to the internal parties and the other activities
of the business.
Examples: world vision
Red Bull and GoPro
Spotify and Uber
Maruti Suzuki
Functions of partnership
 Shares profits and loss among partners.
 Following the agreement.
 Making decisions to develop the business.
 Partners together invest capital.
Characteristics of partnership
 Two or more persons.
 Contractual relationship.
 Sharing profits and business.
 Unlimited liability.
 Voluntary registration.

Merits of sole proprietorship

 Convenient to commence.
 Can raise more capital
 Can utilize different skills of partners.
 Shared liability among partners.
 Can take collective decision.
Limitations of sole proprietorship

 Unlimited liability.
 Conflict among partners.
 No continued existence
 No legal personality.
 Profit shared among partners.
1.4.1.3 Incorporated Companies
A firm which is registered under the companies Act No. 07 of 2007, with a legal personality,
can raise capital by issuing shares and the liability of the shareholders being limited is an
incorporated company. The ownership of the company is divided into smaller units called
shares. People can buy them and become shareholders - co-owners of the business. Only one
share can be purchased, but usually those blocks are owned and an individual or organization
can have complete control over more than 50% of the shares. Those who have the largest stake
become directors of the business. All shareholders benefit from limited liability
This can be further classified as,

1. Private limited company.
2. Public limited company
Private limited companies
The defense, of which the company is made, therefore, is significant. Smaller companies can get
this protection when the owner creates a private limited company. This is a small business
owned by a shareholder who is a member of the same family. This company generally cannot
sell stock. The term “limited” or “limited” tells us that this is a legal form in business.
Examples: Ceynocata (private) limited
Panaceata (private) limited
Nius Solution (private limited
Hemas Pharmaceuticals (private) limited
Advantages of private limited company

 Shareholders have limited liability
 Separate legal personality
 Continuity in the event of the death of a shareholder
 Original owner is still of en able to retain control
 Greater status than an unincorporated business

Disadvantages of private limited company

 Legal formalities involved in establishing the business
 Capital cannot be raised by sale of shares to the general public
 Quite difficult for shareholders to sell shares
 End-of-year accounts must be sent to Companies House –
 Available for public inspection there (less secrecy over Financial affairs than sole trader or
partnership)
Public limited company
These can be identified by the use of "PLC" or "Ink". After the company’s name. It is the most
common form of legal organization for very large companies, for the very good reason that they
have access to very important funds for their expansion. A public limited company has all the
advantages of the status of a private company, as well as the right to advertise its shares for sale
and they are listed on the stock exchange. Not only this mean that public enterprises have the
potential to raise huge amounts of money from the issuance of public shares, but existing
shareholders can quickly sell their shares as needed. The flexibility of buying and selling stock
allows the general public to buy stock first and invest in their business. Another major
difference between private and public companies is the "difference between ownership and
management." As explained above, the former owner of a company usually holds a majority
stake and can continue to manage management when it becomes a private company. For public
enterprises, this is most likely due to the huge amount of shares issued and the number of
individual and institutional investors. Although these shareholders own the company, they
appoint a board of directors at the General Assembly to oversee the management and decision-
making of the company.
Examples: Nestle Lanka PPLC
Sri Lanka Telecom PLC
Cargills Ceylon PLC
Ceylon Tobacco Company
Advantages of public limited companies

 Limited liability
 Separate legal identity
 Continuity
 Ease of buying and selling of shares for shareholders – this encourages investment in PLCs.
 Access to substantial capital sources due to the ability to issue a prospectus to the public
and to offer shares for sale (called a flotation)
Disadvantages of public limited companies

 Legal formalities in formation
 Cost of business consultants and financial advisers when creating such a company
 Share prices subject to fluctuation – sometimes for reasons beyond business control, for
example state of the economy
 Legal requirements concerning disclosure of information to shareholders and the public, for
example annual publication of detailed report and accounts
 Risk of takeover due to the availability of the shares on the stock exchange
 Directors influenced by short-term objectives of major investors

1.41.4 Franchise
The franchise is not really a form of legal structure for a business, but it is a legal contract
between two entities. This contract allows one of them, the franchisee, to use the name,
logo and marketing methods of the other, the franchisor. The franchisee can then decide
separately which form of legal structure he would like to adopt. Franchises are a growing
form of business. They made some of the multinational companies that are household
names today grow much faster than usual. McDonald's and KFC are just two examples.
Examples: KFC
Mc Donald’s
Subway
Pizza Hut
Benefits of franchise
 Fewer chances of new business failing as an established
 Brand and product are being used
 Advice and training offered by the franchiser
 National advertising paid for by franchiser
 Supplies obtained from established and quality-checked suppliers
 Franchiser agrees not to open another branch in the local area
Limitations of franchise
 Share of profits or revenue has to be paid to franchiser each year
 Initial franchise license fee can be expensive
 Local promotions may still have to be paid for by franchisee
 No choice of supplies or suppliers to be used
 Strict rules over pricing and layout of the outlet reduce
 Owner’s control over their own business
1.4.2 Public Sector Business Organizations

Businesses funded and owned by the government are public sector business organizations.
Government departments, government corporations, government companies, business registered and
owned under provincial councils and local government institutions are the different types of business
organizations in the public sector. The government involvement in these organizations is purely for
social welfare.
Examples: Peoples Bank
Sri Lanka savings Bank
National savings Bank
Pradeshiya Sanwarhana Bank
Merit of Public Sector Business Organizations

 Government business provides more services for the well-being of the public.
 Profits owned by the government businesses are re-invested and there by an achieve
economic development.
 Can minimize the wastage.

 Provide more essential services to the public.

 Government invest money in large scale projects thereby general public can get more
advantages.
Limitations of Public Sector Business Organizations

 Low competition due to monopolistic situations. (Ex; Department of railway.)
 High cost due to excess employees. (Ex; Petroleum, Port authority)
 High corruption and wastage.
 More government intervention and inefficiency management.
 Labor strikes/labor union activities affect the business badly.

1.4.3 Voluntary Organizations
The voluntary sector usually consists of organizations whose purpose is to benefit and enrich society,
and in most cases there is no purpose or government intervention. Unlike the private sector, which
focuses on generating profits and returning to owners, funds raised or raised by voluntary sector
organizations are invested in the community or the organization itself. One way of thinking about the
voluntary territory is that its purpose is to create social wealth rather than material wealth. Although
the voluntary sector is separate from the public sector, many organizations that support the delivery
of programs and services are always tightly integrated with governments at all levels.
Examples: Red Cross
Women in need
Save the children
V- Force
Characteristics of Voluntary Organizations

 Democratic control
 Voluntary in open membership
 Common expectations and needs.
Merits of Voluntary Organizations

 Democratic control
 Acting for the well-being of the members.
 Shared common benefits.
Limitations of Voluntary Organizations

 Limited capital
 Should adhere only to the stipulated policies.
Examples of organizations in the voluntary sector include:

 Charities
 Foundations
 Social Welfare Organizations
 Advocacy Groups
 Faith-Based Organizations
 Community Groups

John Keells
Holdings
PLC

2. John Keells Holdings PLC

2.1 Background of John Keells Holdings PLC
John Keells Holdings PLC is Sri Lanka’s largest listed company in the Colombo Stock
Exchange. From managing hotels and resorts in Sri Lanka and the Maldives to providing
port, marine fuel and logistics services to IT solutions, manufacturing of food and
beverages to running a chain of supermarkets, tea broking to stock broking, life insurance
and banking to real estate, we have made our presence felt in virtually every major sphere
of the economy
In 1870 the foundation was laid for the corporate journey of John Keells Holdings PLC,
when two English brothers, George and Edwin John set up E. In 1948 the firm merged with
two London based tea brokers, William Jas and Hy Thompson & Co., and GeoWhite & Co
thereby evolving into a private liability company in the name of E. In 1973 The Company
acquired a controlling stake in
Walkers Tours and Travels
Ltd., one of the country's leading
inbound tour operators. In
1974 the firm became a
Rupee quoted public
company and took the name of
John Keells Ltd. In 1986 a newly
incorporated John
Keells Holdings
Ltd.acquired a
controlling stake in John Keells
Limited and obtained a
quotation on the Colombo
Stock Exchange amidst a
heavily over-subscribed
public share issue. In 1991
JKH was involved in the
biggest ever deal at the time,

when Whittalls group of companies was acquired thus gaining controlling stakes in Ceylon
Cold Stores, Ceylon Holiday Resorts and a stake in Union Assurance. In 1994 JKH became
the first Sri Lankan company to obtain a listing abroad, and issued Global Depository
Receipts that were quoted on the Luxembourg Stock Exchange. In 1996 Velidhu Resort
Hotel, an 80 roomed island resort in the Maldives was acquired making it JKH's first major
overseas investment. In 1999 Nations Trust Bank was established in a joint venture with
the International Finance Corporation and Central Finance Co.Ltd. In 2000 JKH was rated
among the best 300 small companies in the world by Forbes Global magazine. JKH also
became the first company in Sri Lanka to obtain the SL AAA rating from Fitch Rating Ltd.
In 2003-2004 JKH acquired Asian Hotels and Properties, an acquisition that brought with it
40 percent of the five star room capacity in Colombo. The John Keells Social
Responsibility Foundation, the Group's CSR arm, was established as a charitable company
and registered as a voluntary social service organization. In 2005-2006 the Group entered
into a MOU to develop a third resort in the Maldives on Alidhoo Island. With the sale of
Keells Plantations, the Group exited from the ownership of plantations. In 2006-2007 the
Group acquired a lease on Dhonveli Beach and Spa and Ellaidhoo Tourist Resort in the
Maldives. In 2007-2008 the Group's first "Cinnamon" resort in the Maldives, "Cinnamon
Island Alidhoo commenced operations. The stake in AMW was divested. In 2010-2011
JKH was ranked first in the LMD Magazine's "Most Respected Entities in Sri Lanka" for
the 5th consecutive time. The head lease of Alidhoo Island was divested while the Group
acquired the head lease of Dhonveli Island for a period of 18 years. JKH's property arm
commenced construction of "OnThree20" a 475 unit apartment complex in the heart of
Colombo.
JKH was ranked number one in the LMD Magazine's "Top 50" of Sri Lanka's leading
companies for 2010/11 and number one in the Business Today magazine's "Top 20"
rankings for the 7th time since 1999. JKH was ranked first in the LMD Magazine's "Most
Respected Entities in Sri Lanka" survey for the tenth time since the inception of the survey
in 2005 as well as being ranked Number one. (John Keells Holdings PLC, 2019/2020)
2.2 Products & services of John Keells Holdings PLC

 LEISURE
The leisure division is the largest asset of John Kiehl Holdings plc and includes
Cinnamon Hotels & Resorts and the sector's Destination Management Division,
Walker Tours Limited and Whittle Busted (Travel) Limited. Two city hotels
occupying around 30% of Colombo's current five-star rooms, one selected service
hotel in Colombo, eight resort hotels spread across Sri Lanka's main tourist
destinations, four resorts, beaches, mountains and the Maldives. The culture is great
and it works very well under the Cinnamon Hotels & Resorts brand. Walker
Tours Limited is one of the leading destination management companies in
the country and represents a large network of internationally renowned global tour
operators. Whittles Travels, along with other business and leisure travel groups, is a
leading destination management company offering a wide range of global Kuoni
accounts. Since its inception in 2005, Cinnamon Hotels & Resorts has been known
as a pioneer in the travel and hospitality industry throughout South Asia and
represents an exciting new Sri Lanka to experience the finest moments in life.
Walker Tour, the destination management department of the leisure department, has
been offering Sri Lanka to travelers from around the world for over 50 years and
offers a wide range of tours and travel services, including bespoke tourism. The

walking tours are intended for individual travelers, groups and representatives of
Congress. Whittle's journey has inspired travelers around the world on Kuoni's
vacations for 26 years, providing unmatched customer service to individuals and
groups.
 PLANTATION SERVICES
Plantation services include tea factories, tea and gum brokerage activities, and a
collection of pre-auction products. Tea Small Holder Factory PLC is one of the
leading manufacturers of orthodox tea for low produce and is known in Sri Lanka as
a luxury manufacturer of CTC tea. With over 140 years of experience in the tea
industry, John Keells PLC is one of the leading tea brokers in the country. Our
warehouse is the largest warehouse for pre-auction products in the country.
 TRANSPORTATION
Plantation services include tea factories, tea and gum brokerage activities, and a
collection of pre-auction products. Tea Small Holder Factory PLC is one of the
leading manufacturers of orthodox tea for low produce and is known in Sri Lanka as
a luxury manufacturer of CTC tea. With over 140 years of experience in the tea
industry, John Keells PLC is one of the leading tea brokers in the country. Our
warehouse is the largest warehouse for pre-auction products in the country.
 RETAILS
There are supermarkets and office fee automation solutions in the retail sector. Kills
Supermarket operates with the main objective of improving the quality of life for
the nation and focuses on providing regular necessities of life with world-class retail
experience. Nexus Mobile - a loyalty program for a non-Telco company with the
largest member base, is also part of the retail sector.
 FINANCIAL SERVICE
Banking and leasing , financial advisory , life insurance and stockbroking are some
financial services of JKH.The Financial Services sector offers a wide range of
financial solutions including professional banking, life insurance, brokerage, debt
negotiation, fund management and leasing, with the aim of providing our clients
with complete solutions to become a leading player in the segment they choose.
 CONSUMER FOOD
The consumer food sector competes in three broad categories: beverages, frozen
confectionery, and prepared meals. Elephant House With a portfolio of leading
consumer brands such as soft drinks and ice cream, phytofruit juice, processed meat
rinds and ridges, a leader in all relevant categories and backed by a well-established
distribution channel in the world island scale. (John Keells Holdings PLC,
2019/2020)
2.3 Size and scope of John Keells Holdings PLC

 Size

Name of the business John Keells Holdings PLC

Revenue 140 billion
Operating income 12.43 billion
Market share 1.17 million
Number of branches 200 to 225 outlets
Number of employees 20,578
Figure 4 Size of JKH
The size of John Keells Holding PLC is a largest listed company in terms of market
capitalization. It has diversified its business. The company gained the revenue of rupees
140.043 billion in 2019, operating income of rupees 12.432 billion in 2019, total assets of
rupees 436.944 billion in 2019 and net income of rupees 9.741 billion in 2019. The
company has widened 200 to 225 branches all over the country. 20,578 employees are
working in the company’s under JKH. The market share of JKH is ruppees 1.17 billion in
2019. (John Keells Holdings PLC, 2018/2019)
 Scope
As a public limited liability company John Keells Holdings PLC many opportunities
to expand its business. It can expand its business by entering in to new markets, it
can commence new outlets in rural areas and it can innovate more products and
services. To initiate implement new ideas it needs inadequate finance. It can avail
finance feom issuing shares to the public. John Keells Holdings PLC has the vast
possibility to raise funds for implementation of its future plan. (John Keells
Holdings PLC, 2018/2019)
2.4 Vision and Mission statement of John Keells Holdings PLC

 Vision Statement – To be internationally recognized as the best produce broker
in the world.
 Mission Statement – To retain the pre- eminent position as Sri Lanka’s leading
Tea and Rubber broker, to uphold the traditions and ethics of the tea and rubber
traders. To ensure superior customers service through & dedicated and motivated
workforce. (John Keells Holdings PLC, 2019/2020)
2.5 Objectives of John Keells Holdings PLC

The main goal of a private sector organization is to make a profit and become a leading
organization in its field of activity. When looking at the goals and objectives of JKH the
answer can be found to maximize profits for shareholders and owners. Therefore the main
objective of JKH is to maximize its profit.
Other than profit there are some other objectives too such as customer satisfaction, social
responsibilities increasing market share. Customer satisfaction aims to ensure customers are
happy with the product and level of services offered by JKH. One of the major aims of
customer satisfaction is that customers will show loyalty and return to buy from the

business in the future. Social responsibilities are the goal applies to the activities of JKH
that do not harm the environment or people. Market share is the objective of JKH like
profit, easy to measure. Market shares refer to the sales made in a particular market. To
increase the market share of JKH, the company will aim to increase its sales or become the
number one company in the industry.

2.6 Organizational structure of JKH

CEO/Chair
Deputy
Person
CEO
Non Non Non Non

Executive Executive Executive Executive Non
Director Director Director Executive
Director
(Marketing (Finance (Production (HRM
Team Director
Director) Supervisiors) Director)
Leaders)
Sales Account Personal

Team Assistants Manager
Accounts Billing Regional

Manager
Production Team
Members Customer Store Associates
Service Manager
Mercha Public Distribut

nds-ing Relation -ion
Figure 5 Organizational Structure of JKH
The organizational structure of John Keells is shown above. The organizational structure of
John Keels Holding PLC is a functional structure. It is divided in to groups with some
specific tasks and roles. This company has group workings in Marketing, Finance, HR,
Sales, Distribution and Information communication technology departments. Each
departments of JKH has manager or director who responses to an executive a level up in the
hierarchy who supervises multiple department

2.7 Legal form of John Keells Holdings PLC

John Keells Holdings PLC is a private sector organization and it is a public limited liability
company incorporated in Sri Lanka, with ordinary shares listed on the Colombo Stock
Exchange, and Global Depository Receipts listed on the Luxembourg Stock Exchange
(John Keells Holdings PLC, 2019/2020)
2.8 Stake holder engagement of john keells holding plc

At JKH, stakeholders are an integral part of the company. Different stakeholders contribute
to different aspects of business operations and growth. Your joint contribution enables JKH
to be successful and perform well even in difficult times. The company focused on key
areas for various stakeholders to create long-term sustainable value. (John Keells Holdings
PLC, 2018/2019)
Stake holders Their focuses on the Head on with

company
Customers Focuses on better services, Adopting latest technology,
value for the money they building long term
 Trading customers pay, product responsibility sustainability relationship
and attitudes of employees. with the company and
 Inter-company customers creating customer value.
 Institutional customers
 Individual customers
Employees Attractive remuneration, Investment in the training
opportunities for and development
 Internal employees development career development in the
development, safety in the transparent and competitive
 Contract employees working environment. remuneration structure.
Outsources staff
 Interns
 Management
 Directors
Communities Employment creation, Partnering with the
involvement of community company and other
 Local Community development projects, institutes to engage and
environmental satisfy other regulatory
 Government preservation requirements.
 Local government
 Media

 Pressure Groups
 Advisers
 Regulatory bodies
 Trade Associations
 Governmental monitoring
 institutions
Share holders Sustainable returns, Adopting sustainable and
corporate governance, effective relationship with
 Shareholders ethical business practices the company.
and strategic long term
 Banks outlook.
 Financial Institutions
Suppliers Consistence and Building long term and
improvements in demand, sustainable relationship and
 Regional plantation knowledge sharing, fair effective management of
pricing and continues risk.
 Companies relationship.
 Sole proprietors/
 partnerships
 Listed companies
 Governmental financial
 Monitoring Units
Intercompany
Figure 6 Stakeholder engagement of JKH
Stakeholder commitment demonstrates how JKHPLC can provide economic, social and
environmental value to stakeholders by engaging stakeholders at different levels and better
understanding their expectations of the company. This is the first step in the journey. The
company uses different tools and methods to engage with different stakeholders at different
times in different forums. The ultimate goal of the company's stakeholder engagement
mechanism is to build trust and encourage trust between internal and external stakeholders
to ensure JKHPLC's commitment to work together to achieve its corporate vision and goals.
The company's continuous and ongoing communication with all stakeholder groups
demonstrates efforts to operate an integrated sustainability approach that will build long-
term business revitalization. Therefore, stakeholder engagement is done with a much
broader purpose than communicating "to" the various stakeholder groups. The objective is
to establish deep and meaningful partnerships with stakeholders to ensure that they are

aligned with values and are willing to work together for mutual benefit and prosperity. This
in turn enables the company to form long-term relationships with stakeholders..
[ CITATION Joh191 \l 1033 ]
Bank of
Ceylon
Sri Lanka


3. Bank of Ceylon Sri Lanka

3.1 Background details of Bank of Ceylon Sri Lanka
BOC is a public sector organization in Sri Lanka. Sri Lanka ruled under various colonies
before independence. They had foreign monopolies in trade, commerce and industry and
harmed the local through traders and lenders, therefore it was necessary to meet the needs
of the local business people establish a national bank and provide loans in stages to
diversify the economy. In 1934 on the recommendation of the state governor’s banking
committee the state council approved the establishment of the bank of Ceylon officially
inaugurated on august 1st 1939 by Sir Andrew Caldecott, Governor General of Ceylon at the
city hall tall complex at the Colombo Fort.
BOC began to grow into a national bank despite intense competition from foreign currency
banks and informal lenders. It opened its first branch in Kandy in 1941, then in the outlying
cities of Galle, Jaffna and Trincomalee. The bank of Ceylon opened its first overseas
branch in London in 1949. The was nationalized in 1961 to facilitate national development
efforts. According to the policy of the state in force the should fulfill the aspirations of the
nations.
Agriculture service centers were established throughout the island under the agricultural
productivity act passed in 1972. As a result the branch network has grown considerably
covering most of the rural areas of the island. The introduction of the free economic
policies marked beginning of a new era of commercials in Sri Lanka. The bank was the first
to introduce information technology to the Sri Lankan commercial banking sector. The
bank established the first foreign currency banking unit in Sri Lanka in 1979 after
liberalization of exchange control rules.
The banks’ efficiency has been developed in four regional offices. Thus in the late 1970s
the bank reached new heights covering the entire island increasing the size and power of the
business as well as the number of branches abroad. In addition to commercials banking the
bank of Ceylon began to enter other areas of business through subsidiaries and affiliates. Sri
Lanka merchant bank limited the first commercials bank in Sri Lanka was established in
1982 by the Bank of Ceylon.
In 1981 the bank opened a branch in Maldives Republic of Maldives. In addition the bank
opened another overseas branch in 1995 in Chennai, India. Innovative features in the new
century in 2005, the bank of Ceylon tool the initiatives to transform its branch network into
a single online system. The project was a successful development for banks to complete in
2009. In 2008 banks raised money for the first time in history. The average person receives
Rs $4.2 billion through five year dependent rupee bond listed on the Colombo stock
exchange. In 2010 BOC diversified its operations in the UK and upgraded its London
branch to a full-fledged bank that serves as a subsidiary of BOC and serves as a national
and global banking platform. The bank opened a third overseas branch in Seychelles in
2014. Bank consistently integrated innovative approaches, services differentiation, outdated
sales capabilities, management and risk management. To move forward with the state in the
development process banks have launched products targeting non-core banking
departments such as Islamic banking sector, which operate in the island network and
investment banking sector and investment banking sector. The bank managed to raise
billion in second publ[ CITATION ban20 \l 1033 ]ic issuance of five years bends with non-
government subsidiaries.[ CITATION Ban20 \l 1033 ]


3.2 Products and services of Bank of Ceylon

 BOC Current account
The BOC current account offers several advantages to manage the daily
transactions of customers whether personal or professional
 BOC SMARTGEN
BOC SMARTGEN offers a variety of services to their clients to enjoy the speed
and convenience of BOC banking. The smart Cane account is a series of new
digitized features offered to secure BOC customers.
 BOC Powerplus
BOC power plus is an investment plan to gives confidence to the children to live
and a solid financial foundation.
 Internet & Mobile banking services
BOC offers total online banking solutions to the customers at their fingertips. It
allows customers to manage the account from the comfort from their home.
 BOC Leasing
BOC provides leasing services to its customers with many special features such as
speedy approving system, flexible rentals, attractive lower rental and no hidden
charges.
 Mobile banking facility
 BOC B app comes with a range of benefits to manage the day to day
transactions of its customers.[ CITATION ban20 \l 1033 ]

3.3 Size and scope of Bank of Ceylon

 Size
Name of the business Bank of Ceylon
Revenue 239.1 billion
Operating income 29.68 billion
No of employees 8503
Number of branches 628 branches and 689 ATMs
Figure 7 Size of BOC
The size of Bank of Ceylon is very large. It has widened its products and services. The
bank widened its network of 628 branches, 689 automated teller machines. 123 CDM
network and 15 regional loan centers within the country. The company gained revenue of
rupees 239.1 billion, operating income rupees 29.68 billion, net income of rupees 23.098
billion, total assets of rupees 2.415 trillion and 8503 employees are working under the
bank. (Bank Of Ceylon, 2019/2020)
Scope
The Bank of Ceylon also has many chances to achieve its goals and objectives. BOC can
expand its business within a short period of time. Many employees work here. BOC has
the chance to commence new branches in the rural areas. Using the organization’s
profitability it has the chance to commence new ATMs in many areas.
3.4 Vision and Mission statement of Bank of Ceylon
 Vision statement – To be the nation’s preferred bank with a strong global

presence providing customer centric innovative financial solutions.
 Mission statement – To provide highly efficient, customer focused,
technologically sophisticated, resilient and innovative financial services to the
nation with global access, empowering employees and enhancing value to the
stakeholders.[ CITATION ban20 \l 1033 ]

3.5 Objectives of Bank of Ceylon

Similar to the objectives of private sector organizations there are some objectives of public
sector organizations to. The main objective of public sector organization is to provide
services. BOC has some objectives such as economic development, developing living
standards, encouraging savings. The BOC‘s objectives is to support the Sri Lankan
government's economic goals, which are reflected in the country's socio-economic
development.
3.6 Legal form of Bank of Ceylon

BOC is a public sector organization in Sri Lanka and it is a banking corporation domiciled
in Sri Lanka incorporated on 01st August 1939 under the bank of Ceylon Ordinance No. 53
of 1938. And it is a licensed commercial bank established under the Banking Act No.30 of
19[ CITATION ban20 \l 1033 ]

3.7 Organizational structure of BOC

The organizational structure of BOC involves many departments. The bank is organized
along a hierarchical structure. The structure characteristically is separated by several
functions, ranging from electronic banking service to customer service and managers for
specific divisions.
Figure 8 Organizational Structure of BOC
CEO/Chair
Person
Board of
Directors
Internal General
Council Board
Audit
and Secretary
Government Human WholeSale Consumer Chief

Group Chief Risk
Relations Resources Banking Banking Financial
Group Group Group Group Treasurer Officer Officer
Operation
and IT Group
Chief
Operation
Officer
Client Trade
Monitoring Operation Information
Accounts Services Processing and
and Reporting Control Technology
Support
Sales and Corporate Wealth

Trading Finance Management

3.8 Stake holders information in BOC
Stake holders Their focuses on the Company’s engagement

company towards them
Customers Ease of transaction, Engagement through branch,
accessibility, convenience, customer satisfaction surveys,
customer care, service quality, financial literacy programs and
and inclusive communication. marketing advertising and
promotions
Government Annual reports, industry Maintaining confidence with the
regulators forums and meetings, financial finance sector, facilitating
publications and regulatory financial inclusion, stronger
and compliance reporting governance and risk
management practices
Investors Returns commensurate with Annual report and other
risk assume, clarity in terms, regulatory publications,
conditions and convenience engagement through market
intermediaries.
Communities Contribution towards Engagement through branches,
community development press release
projects, employment
generations
suppliers Supply chain audits, press Regular meetings and written
notices and timely payments communications
Employees Opportunities foe career and Employee engagement surveys,
skills development, freedom of performance management
associations, equal system and trade union
opportunities and retirement engagement
benefits.
Figure 9 Stakeholders information in BOC
BOC has a huge stakeholder and affects its size, depth and reach and makes it necessary
to identify their various needs and respond defensively. The bank selects and engages the
stakeholders who are most affected by its decisions and who has the greatest influence on
its value creation.[ CITATION Ban20 \l 1033 ]

Friends
Lanka child
foundation

4 Friends Lanka Child Foundation

4.1 Background details of Friends Lanka Child Foundation
FOUNDATION OF THE CHILDREN OF THE FRIENDS OF LANKA (FLCF) is

registered as a local non-governmental organization registered in the Companies Registry
and the NGO Secretariat of the Ministry of Defense and Urban Development. The
organization originated from the Sri Lankan Mission of Friends Kinderhilfe International
eve (FKI), which has been established in Sri Lanka since 2004. Since then, it has carried
out a series of projects for poor children affected by the tsunami and their families. Despite
recent decisions by the FKI head office in Germany not to implement any new projects in
Sri Lanka on behalf of FKI Sri Lanka, the Mission has further agreed to act as a funding
agency when necessary. Therefore, the local team of the FKI Sri Lanka Mission decided to
become an independent local NGO. With years of experience implementing projects in Sri
Lanka, the FLCF inspired the FLCF to create their new organization with new projects. The
FLCF believes that many years of staff work will be of great benefit to the organization if it
has a local team with good experience to build strong relationships with local authorities.
So, without a doubt, it will be the best team to create this independent local organization for
a very sustainable service to poor children in Sri Lanka. [ CITATION Fri20 \l 1033 ]
4.2 Services of Friends Lanka Child Foundation
Preschool
PEARL” EARLY CHILDHOOD DEVELOPMENT CENTRE –PATHIRAJAGAMA

Located in the "Divisional Secretariat" of Balapiti in the Southern Province of Galle
District. 32 children and 3 qualified teachers are employed. This is a new building on the
top floor, which includes two classrooms, a conference room, office, kitchen, toilets and
play area. It is an exemplary kindergarten in the region.
Children homes
FLCF support children's needs throughout the year by providing them with food, clothing,
health, toilets, education and entertainment. FLCF believe that children who live in homes
without parents or guardians need more love and protection. As a childcare organization,
they care deeply about the well-being of these children and therefore spend a lot of money
on home programs each year. The FLCF always focuses on the welfare of orphans.

Children sponsorship programs
The sponsorship program is aimed at privileged children living in the upper part of low-
income households, primarily orphans and abandoned children. Overall, the program
focuses on the development of children's education. Our main purpose is to help
underprivileged children become independent in society. The program began in
Ambalangoda, Balpitiya, Ilpitia, Hikkaduwa, Calandania, Kalutara, Panadura, Agravatta,
Bandragama, Berwara, Brutinsara, Dodangoda, Horana, Maduraiwara, Mirania and
Badrilla. Dickwella, Colombo, Kesabwa, Maharagama and Dehiwala in 27 departmental
office areas in Sri Lanka.
Counseling
The FLCF has provided financial support to many Sri Lankan children to continue their
education, and they have seen some of them and their parents receive immediate help to
improve their life skills. Need they have identified some obstacles and poor knowledge in
dealing with their daily problems, especially when it comes to emotional and psychological
issues, Organization has started a psychological counseling program to help these families
in addition to the financial support provided earlier. FLCF empower them to face daily
challenges to have a peaceful and strong argument mind and not be frustrated or have
terrible emotions. FLCF encourage their life skills to find a lasting solution to their lives
and happily reach a better and more stable environment in family life. FLCF try to update
their lifestyle and livelihood.
Livelihood
This program was started to improve the lifestyle of low income families in order to
overcome the difficulties of life. FLCF believe that if they have the seed capital and the
knowledge gained through training for certain types of livelihoods; it will help them lead a
good life through the opportunities we provide them to start an independent business.
[ CITATION Fri20 \l 1033 ]

4.3 Size and scope of friends Lanka child foundation
 Size
Name of the business Friends Lanka child foundation
No. of branches 06
No. of projects Many
No of employees More than 70
Figure 10 Size of FLCF
This organization has long years of service. This organization is with fewer employees and
caring a number of projects. The organization’s expenditure consist admin cost of 3%, pearl
preschool Rathmalana of 6%, child guidance of 11% and Sponsorship program of 32%.
(Friends Lanka Child Foundation, 2020) (KENTON, 2020)
 Scope
As a voluntary organization Friends Lanka Child Foundation has the chance to commence
many branches to support many children. It has the chance to commence children homes so
that the children without families and resident can stay safe.

4.4 Vision & mission statement of Friends Lanka Child Foundation
 To give under-privileged children and their families, regardless their religion or

ethnical background, better living conditions and access to education to enable them
to have a brighter future. The focus and mission is to break the vicious circle of
poverty by strengthening children through education, giving them a better perspective
in life and encouraging them to represent one day a just, free, peaceful and prosperous
society. “We Support them to stand on their own feet.
[ CITATION Fri20 \l 1033 ]
4.5 Objectives of Friends Lanka Child Foundation
 The organization aims to provide a better future for socially disadvantaged children
through access to free education. The FLCF aims to help children with a difficult
social background and or an abusive family environment, as well as orphans and
Turkish children through group education, for example in children's homes, as well as
in individual education programs and scholarships. Aid is not limited to any specific
area of Sri Lanka.

4.6 Organizational structure of friends Lanka child foundation
Board of
Directors
Program HR/ Admin Finance

Manager MAnager Manger
Project
Coordniator Counselor & Child Care
Project Staff
Centre for
Sponsorshi Children
Preschools Counselling Livelihood Special Needs
p Homes
Children
Figure 11 Organizational structure of FLCF

4.7 Legal form of Friends Lanka Child Foundation
Registered on 21.02.2012 with the Registrar of Companies in Sri Lanka as a Non-profit

Organization; registration no: GA 266. Registered on 12.12.2012 as a “Voluntary Social
Services/ Non-Governmental Organization” with the Ministry of Defense (MOD),
Battaramulla, Sri Lanka. Registration no: FL – 148604. This is the organization
incorporated as a local non- governmental organization[ CITATION Fri20 \l 1033 ]
4.8 Stake holders of Friends Lanka Child Foundation
Stake holders Their focuses on the organization Engagement of the

organization towards
them
Employees Opportunities for career and skills Performance management,
development training and development
Sponsors Financial reports, information about Providing information

children regarding all the projects
and programs
Donors Focuses on better services, Providing information
Financial reports, details about regarding all the projects
ongoing projects and programs
Community Employment opportunity, better organizing child protection

concern on children safety nutrition and child awareness
and protection. programs and companions
Figure 12 Stakeholders of FLCF
Stakeholder Commitment is very important to FLCF to identify how the stakeholders

contribute to the organization. The company comes across different stakeholders to
establish a proper service for the children. Each stakeholders share their commitment in

5 Relationship between Different Organizational Functions

And How They Link To Organizational Objectives And
Structure
5.1 Organizational functions
An organizational or business function is a basic process or set of activities that are carried
out within a department or areas of a company. Common function includes operation,
marketing, human resources, information technology, customer services and finance.
Organizational functions differ from organization to organization
 Production department
The manufacturing department is responsible for converting raw materials and other
inputs into finished products or services. Between the production processes, the
department works to improve the efficiency of the product or the assembly lines so
that it can meet the production goals set by the company’s management and ensure
that the finished products provide the best value and quality to the customers.
 Sales department
The sales department has a set of business activities and processes that help the
sales organization work effectively, efficiently and in support of business strategies
and objectives. Sales division usually includes sales, sales support or business
operations.
 Human Resources department

The role of human resource management is to plan, develop, and manage policies
and programs designed to make the organization's human resources readily
available. This is the part of management that deals with the relationship between
the people at work and the company.
 Marketing department
The marketing department plays an important role in developing the business
and the company's mission. He is the face of your company and coordinates and
produces all the materials that represent the company. The job of the marketing
department is to reach potential customers, investors and / or the community.
 Distribution department
Distribution departments are departments that are responsible for receiving goods
ordered from suppliers and sending those goods to the appropriate department or
department within the company. The idea is to create a situation in which all goods
are counted from the moment they are transported to the moment that they are
incorporated into a specific entity within the business.[ CITATION Mal20 \l 1033 ]

 Research and development department

Research and development (R&D) involves activities that companies undertake to
innovate and introduce new products and services. This is often the first step in the
development process. The goal is usually to market new products and services and
to enhance business results.[ CITATION wil20 \l 1033 ]
 Accounts and finance department

No company can operate without an efficient financial supply. It is the life-flow of
all organizations and the common denominator, by which most business
performance is measured internally and externally. The accounting and finance
department is at the heart of any organization and is responsible for ensuring the
efficient financial management and control necessary to support all financial
activities[CITATION lbt19 \l 1033 ].
 Information and communication technology department

The IT department in the organization is responsible for architecture, hardware,
software and computer networking in the company. The ICT department must
ensure that employees have full access to computer systems. Specialists working in
the department may be responsible for one area of the company's IT, such as
programming, website updates, or technical support.[ CITATION Lua18 \l 1033 ]

5.2 Organizational structure
Organizational structure is a system that describes how certain actions are directed to achieve the
goals of the organization. These activities may include rules, roles and responsibilities. The
organizational structure also determines how information circulates in the company. [ CITATION
Wil20 \l 1033 ]
5.2.1 Types of organizational structure
 Functional structure
The first and the common is a functional structure. It is also known as bureaucratic
organizational structure and break down the company based on the characteristics of
employees. (Kenton, 2020)
 Divisional structure
The second type is common in large enterprises with large business units. Companies that use
this method known as departmental or multi departmental structure. (Kenton, 2020)
 Flatter structure
This organizational structure used by many startups as its name it flattens the hierarchy and
chain of command. Companies using this type of structure have a high speed of
implementation. (Kenton, 2020)
 Matrix structure
The next organizational structure is the matrix organizational structure. This structure brings
together employees in different divisions or departments.[ CITATION Wil20 \l 1033 ][ CITATION
Nis20 \l 1033 ]
Establishing organizational structure can be very beneficial for a business. The structure not only
defines the hierarchy of a business and it also allows the business to define a compensation
framework for its employees. The company can decide salary grades and scales for each
position. The structure can also makes operations more efficient. (Nishadha, 2020) (Kenton,
2020)
There is a close relationship between functions, objectives and structure of an organization.

Organizational functions operate based on the goals and structure of the organization. The
organizational structure affects the overall nature and scope of the organizational functions.
Organizational do not work alone they work collectively and they work more effectively within
the company. (Nishadha, 2020)
Well organized organizational functions works better and improve operational efficiency,
revenue and performance that benefits stakeholders. All functions of a company are independent.
There are many advantages and disadvantages of interrelationship between organizational
functions. (Nishadha, 2020)

6 Organizational function of JKH, BOC, FLCF
6.1 Organizational function of JKH

 Marketing – promotions, selling, product management marketing, information
management and pricing are some marketing functions of JKH. The marketing
department of JKH plays a vital role in promoting the business and mission of the
organization. Defining and managing the brand of JKH, conducting campaign
management for marketing, producing customer and market research are some
marketing activities of JKH
 Sales – sales department of JKH plays a vital role. The unique and the important
role of sales department of JKH are to bridge the gap between the potential
customers’ needs and the products and services JKH offers.
 Production – production of JKH is responsible for turning inputs into outputs

through a production process. This department is responsible for manufacturing
products and services.
 HR – The HR department of JKH manage the company’s employees. Recruiting the

right people, maintaining safe environment for employees, providing compensation
for employees, providing proper training for employees are some activities of HR
department of JKH.
 Accounting and finance – The accounting and finance department of JKH is

responsible for ensuring the efficient financial management and financial controls
necessary to support all the business activities.

6.2 Organizational function of BOC
 Admin and operation - Under the control and direction of the Board of Directors, the
Bank has succeeded in establishing itself as one of the most reputed and trusted
banks. The dedication, competence, and integrity of the staff in compliance with the
rules and regulations play an important role in the work of the bank.
 Human Resources - The Department of Human Resources caters to the needs of a

variety of personnel facing employers and employees. The role of this department is
to manage all aspects related to personnel. Good human resource management is
essential for the recruitment and retention of medical and non-clinical staff,
maintaining staff morale and providing opportunities for professional development. In
this context, the administration has set up a Human Resources Committee to provide
the necessary guidance and procedures, so that the committee runs smoothly.
 Internal control and risk management - The bank will establish an internal control
system to guarantee acceptable standards. Under the supervision of the Audit
Committee, the Audit and Inspection Department is responsible for performing the
functions of the operating systems, data and various functional units to ensure that
they comply with the standards of the officers and the bank, as well as evaluating the
adequacy and efficiency of the bank's internal control system.
 Banking technology development - As the banking network expands, innovative

services are introduced to adapt to changes with time changes. Online banking has
been introduced across the country. BOC has introduced the public to the use of
ATMs. The committee was formed to introduce new products, such as credit cards,
when they had the opportunity to find themselves in a temporary global economic
situation. In this way, new ideas, new systems and projects are always considered if
given the opportunity to bank properly in time of international economic conditions
 Customer service department – the basic function of BOC is accepting deposits

from customers and leading money to the needy. For this purpose BOC bank has
widened many branches to widen their network to ensure customer services.
 Treasury department – The treasury department of BOC is responsible for

balancing and managing the daily cash flow and liquidity of funds within the bank.
The treasury department of BOC also handles the bank’s investments in securities
foreign exchange and cash instruments. [ CITATION FRA19 \l 1033 ]

6.3 Organizational function of Friends Lanka Child Foundation
Project coordinator
The primary goal of project coordinator of FLCF is to train employees to complete
organization specific projects within a set time frame and to work within the company’s
budget constraints. As team leaders project coordinators must have excellent
communication skills, organizational skills and problem solving strategies.
HR manager
HRM plays a vital role in achieving an organization’s goals and helping the organization
achieve and maintain high quality. HR manager of FLCF is responsible for selecting the
right people, creating and maintaining a culture that nurtures and rewards talent. The FLCF
Human Resources management offers the tools to manage and operate in organization.
HRM develops strategies that apply to everything in the organization.
Admin manager
The admin manager of FLCF ensures that the activity of the organization run smoothly and
efficiently. The primary objectives of the FLCF admin manager is to direct, control and
oversee the organization’s support services to achieve organizational objectives.
Finance manger
The FLCF’s finance manger must prepare financial reports, make direct investments and
develop strategies to ensure the long term financial health of the organization.
All these functions of Bank of Ceylon should work together to achieve the objectives of the
organization. Communication between these functions is more important to achieve the
organizational goal of BOC.

7 Interrelationships of Organizational Functions with

Advantage and Disadvantage
7.1 Interrelationships of organizational functions of John Keells Holdings

PLC and the advantages and disadvantages of each relationship
The organizational functions of JKH are sales, production, distribution, marketing, finance, and
human resources. The interrelationships between these functions are more important to achieve
its business objectives.
Marketing: Sales
Marketing and sales work together in one company. The role marketing department of JKH is to
attract customers to the business to the business and creates interest in their product. Marketing
will also ensure that the sales department will sell products and services that meet the needs and
requirements of customers.
 Advantages – marketing plays a vital role in sales. Through marketing products and
services are introduced to the universe. Example advertising, handbills providing, booklets,
posters. Nowadays social Medias are often used for marketing. Through this sales of
products are increasing numerously. This is a biggest advantage of marketing and sales.
 Disadvantages – using more marketing strategies helps to increase sales. When the
marketing department fails to do a good marketing strategy sales will be unable to increase
its sales level.
Sales: Production
The product department must communicate with the sales department to let them know how
many products they are capable of producing in a given period. This will give the sales
department of JKH an opportunity to notify customers of any delays and disappointment. The
production must also ensure that their products are of high quality and effectively represent the
brand. This will avoid customer complaint and returns and will make the role of the sales
department of JKH much easier.
 Advantages – production has a responsibility to produce good quality products to fulfill

customer’s needs. The interrelationship between production and sales is very important. So
that both the department has an understanding. As a result they will be able to increase the
number of sales.
 Disadvantages – when the link between production and sales is not strong sales will not be
able to know about new production. Therefore when there is no communication between
them they will not successful to sale the products.

Production: Finance
Production and finance are an integral part of the JKH because while production ensures that the
company does not run out of stock of finished products because if there is njo inventory of goods
the company will not be able to satisfy consumer demand, resulting in a loss sales and without
sales JKH will not be able to make a profit, while finance ensures that company will always have
enough capital and resources so that the company does not get into trouble due to lack of capital.
 Advantages - for production finance is highly essential. When both work together they can
produce goods, quality products based on the needs and wants of the customers. This is an
advantage for the company.
 Disadvantages – when there is communication gap between production and finance both
will not be able to convey the necessities. As finance is highly important, without finance
quality products will not be produced. Therefore it creates a negative impact to the
relationship.
Production: Marketing
In order to meet customers’ expectations JKH need to collaborate between marketing and
production. These close relationships between the two functions are essential to enhance the
performance of the organization. In addition friendly communication is collaboration between
marketing and production department. In turns it meets the needs of the customers and
increases the profitability of the organization. However conflicts can arise between these two
departments as each task is usually focused on achieving its goals. It affects other functions
and the performance of the organization as a whole. Also the lack of communication between
marketing and production department in JKH also causes problems but in order to increase and
improve the performance of JKH they should corporate in marketing and production
department.
Finance: Sales
The finance department of JKH provides budget and amount will allow the sales department to
operate efficiently, while the sales were made and the income will be maintained. The finance
department will closely monitor any costs incurred by the business and ensure that the sales
department sells enough products for the business to make a profit.
HR: Marketing
Marketing department of JKH communicates the company brand to customers and the
company brand is communicated to its employees through HR, department of JKH works
together to find the right people to promote and build the brand and marketing builds the brand
message and marketing build brand message and deliver it to employees.
Sales: Finance
The finance department of JKH provides a budget and amount that will allow the sales
department to operate efficiently, while the sales were made and the income will be
maintained. The finance department will closely monitor any costs incurred by the business
and ensure that the sales department sells enough products for the business to make a profit.
Sales: Distribution

The supply chain of JKH must obtain information from the sales force to deliver the right
goods and services to the right customers.
7.2 Interrelationships of organizational functions of Bank of Ceylon with

Advantages and Disadvantages
IT: Finance
The finance team of BOC uses systems, company hardware and public cloud providers that all
rely on the IT department. Transaction, checking accounts, paying bills is some finance activities
it can empower and support the finance team of BOC.
 Advantages – to fulfill both department’s communication and team work is compulsory.

Likewise having a good understanding and team work between IT and Finance will help in
the growth of BOC. As IT & finance are playing a major roles in finance this will definitely
bring a positive impact to the bank.
 Disadvantages – in this modern world technology is playing a vital role in Banks. In fact
technology has replaced many job roles in BOC. Money related facilities like withdraw,
transaction and checking balance are all done by machines. So finance related information
stored by IT department, which means a good communication is not essential for
everything. Therefore this reduces the link between IT and finance.
Risk Management: HR
The HR and Risk management of BOC continues to collaborate together to ensure employees
related risks are continuously identified and strategies established for mitigation for the risks.
 Advantages – A good team work between risk management and HR helps to manage the
risks faced by the employees. HR has a responsibility to ensure safety on the employees
working under the department. When both the risk management and HR department work
together for the welfare of the employees this implement a positive impact to BOC. The
risk factor for the employees is low.
 Disadvantages – when working together for an objective conflict will rise as people are
with various ideas and thoughts. During this situations when either risk management team
or HR department fails to do their responsibilities this will cause a huge impact. In result
more conflicts will occur when the employees are put on risk.

Monitoring: Risk Management

Risk can have both positive and negative impact on BOC. The monitoring department of BOC
helps to monitor and evaluate the risk of the bank so that the risk managing team can manage
the risks.
 Advantages – a risk will be terminated only when it is monitored carefully. Therefore a

good teamwork and communication will prevent employees and other activities from risks.
In result the employees will have a good impact on BOC, employees will enjoy working
there.
 Disadvantage – to prevent from risk monitoring is highly important. So when monitoring

fails to do its responsibility or become careless, the entire activities will be put on risk.
When the monitoring department fails to convey the risk they have noticed or fails to take
an immediate action, the risk management department will fail to do its part. Therefore a
bad teamwork or a communication gap will put a high risk to BOC.
Internal audit: Audit committee

The audit committee reviews and approves internal audits remit having regarded the
complementary roles of the internal and external audit functions. It ensures that internal audit is
free to work objectively.

7.3 Interrelationships of organizational functions of Friends Lanka

Child Foundation
Program manager: Finance Manager

If we weigh up the FLCF program manager and Finance manager, to conduct the projects,
program and whatever activities they bring forward, finance is highly necessary. So during this
kind of situation, the contribution of Finance manager is highly mandatory to the program
manager. [ CITATION joh20 \l 1033 ]
 Advantage – conducting programs will help widen the services and opportunity for FLCF.
To do successful programs finance is necessary. Therefore good teamwork and
communication will implement a successful program to FLCF.
 Disadvantage – when required finance is not provided on time to the program manager to
conduct the programs preparations and arrangements will be stopped, in result the program
and the projects will be cancelled or postponed. This is a disadvantage. Therefore the
scheduled programs and projects will not be conducted successfully.
HR: Finance Manager

If we consider the HR and Finance manager of FLCF, to recruit employees, to provide salary,
and for other activities HR manager need finance. Therefore when the HR manger requires
providing the services to the employees working under him, such as salary, bonuses, the
influence of finance manager is essential.
 Advantages -.providing salary, bonuses, conducting training and development or

workshops or recruiting new employees needed support from finance. When finance
provides all the financial support needed by HR, all the activities will be done on time. A
good communication between these two departments will be an advantage.
 Disadvantage – the relationship between HR and finance is very important. Unable to

provide finance during activities such as training and development, recruitment, providing
salary will be impact the employees. Communication gap between these two departments
brings disadvantages.

Project Coordinator: Project Staff

When we consider the Project Coordinator and the project staffs of FLCF, under this there are
a range of projects like preschool, counseling, sponsorship, livelihood, children homes. Project
coordinator is accountable for this project and the project staffs work under him. For the
project to be effective, a good communication between the project coordinator and project
staffs are compulsory.
 Advantages – for a project to be successful both the coordinator and the staff put on their
contribution. When they work as team taking suggestions and ideas from all the staff
sharing responsibilities having good communication the project will be effective and
successful.
 Disadvantage – when the coordinator fails to do his/ her responsibility and take
independent decision the coordinator’s leadership fails. He / she will not be able to get
suggestions or ideas from his / her staff. Therefore the communication gap occurs. As a
result the project will not be effective and useful compare to the project done as a team.

8 The size scope and structure of different organization
The structure, size and scope of any organization are related to the purpose of the business
organization. It can be seen that any organization sets a big goal only with good organizational
structure. If there are fewer people in the organizational structure of the organization and no
one knows about their role and subordinates, they cannot achieve the goal, as there is less
clarity in the role. On the other hand, any business organization sets a goal based on its size. If
the firm is large and invests a lot of money, then they have a big target for their
business[ CITATION joh20 \l 1033 ]
The organizations establish its business goal by examining the scope of its business. If the
organization's jurisdiction is to serve national customers, set the business objective
accordingly. However, if they find that they are serving international clients, set their business
goal accordingly. Depending on the product and service, an organization determines its
structure, size and scope. When a business organization sees this, their product does not need
massive corporate structure. When the business scope of a product or service is only large, an
organization creates the size and scope of a large firm; otherwise it creates a smaller
organization.[ CITATION joh20 \l 1033 ]

9 Conclusions and recommendations
9.1 Conclusions
JKH is a largest listed company in the Colombo Stock Exchange. The organization has
widened it branches all over the country. The company has diversified its products and services
through plantation services, transportation services, Hotels and resorts, super markets etc. the
company has more than 20,000 employees and the market share of the organization is rupees
1.17 billion in 2019. There are various functional departments in JKH and interrelationships
between those functions play a vital role. The organizational structure of JKH and the
communication between top to bottom level helps the company to achieve its business
objectives efficiently.
BOC is a private sector organization in Sri Lanka. It is a largest banking network in Sri Lanka.
BOC has more than 8000 employees and more than 600 branches all over the country. The
Bank has many functional departments and each functional department plays a vital role. The
Bank has introduced many services to its customers and commenced many ATM machines
across the country.
FLCF is a voluntary organization in Sri Lanka and it has only fewer branch networks in the
country. Comparing to other two organizations FLCF has small number of employees. And the
organization has brought forward many projects for children in our country. The organization
has commenced many preschools across the country.
9.2 Recommendations
JKH has a chance to commence new outlets in rural areas and the company can attract more
customers, commencing new customers leads JKH to reach new customers. Using the
profitability of the company it can carry out many social activities among customers and the
company has to innovate new products and services. The company can implement new
strategies to; minimize the use of polygene bags. JKH should improve the communication
between all the functional departments.
BOC has to improve poor queries. As many customers are expecting BOC bank to improve the
customer service the customer service department should take actions regarding this. And the
organization has to improve its communication between each functional department so that the
bank can improve its performance in future. The bank should commence STM machines in
rural areas so the customers can obtain the services of BOC easily.
FLCF can carry out many projects to serve many children over the country. FLCF has branches
only in restricted areas. If they expand their branches, they can reach out many children in
future. Other than the projects they do, that can implement new projects like water projects, ,
health and nutrition projects regarding children.

10 References
John keells Holdings PLC (2019/2018) Anual report, : .
John keells Holdings PLC (2018/2017) Anual report, : .
Bank of Ceylon (2018/2017) Anual report,: .
Bank of Ceylon (2020/2019) Anual report,:.
Bank of Ceylon (2020), Available at: https://www.boc.lk/

John Keells Holdings Plc (2020) , Available at: https://www.keells.com/
Friends Lanka Child Foundation (2020) , Available at: https://www.flcf.lk/
Will Kenton (2020) Organizational structure, Available

at: https://www.investopedia.com/terms/o/organizational-structure.asp
Erik Devaney (2019) Organizational structure, Available

at: https://blog.hubspot.com/marketing/team-structure-diagrams
Ruth Mayhew (2019) HR department, Available at: https://smallbusiness.chron.com/six-

main-functions-human-resource-department-60693.html
Navaneetha (2019) Major Responsibilities & Roles in a Sales Department, Available

at: https://aeroleads.com/blog/types-sales-operations-roles-responsibilities/
Nishadha (2020) Types of Organizational Charts (Organizational Structure Types) for

Different Scenarios, Available
at: https://www.google.com/amp/s/creately.com/blog/diagrams/types-of-organizational-
charts/amp/

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Higher Nationals

Internal verification of assessment decisions – BTEC (RQF)

Do the assessment criteria awarded

Is the Pass/Merit/Distinction grade awarded

• Identifying opportunities for

Internal Verifier signature Date

Assessor signature Date

Student Name/ID Peujini Johnson / kanx000009

Grade: Assessor Signature: Date:

Grade: Assessor Signature: Date:

Internal Verifier’s Comments:

Signature & Date:

1. I know that plagiarism is a punishable offence because it constitutes theft.

Student’s Signature: Date:

Student Name /ID Number Peujini Johnson

Academic Year 2019/20

Unit Tutor Ms. Lasitha

Assignment Title Understanding different types of organizations in different

Issue Date 18/10/2020

Submission Date 22/10/2020

IV Name & Date

The recommended word count for the report is 2,000–2,500 words .

Assignment Brief and Guidance:

Grading Criteria Achieved Feedback

P1 Explain different types and purposes

P2 Explain the size and scope of a range

P3 Explain the relationship between

PEUJINI JOHNSON KANX000009 01

1.1 Classification of business organizations based on the ownership..........................................7

PEUJINI JOHNSON KANX000009 01

4.7 Legal form of Friends Lanka Child Foundation..................................................................38

PEUJINI JOHNSON KANX000009 01

Figure 2 Classification based on Objective..........................................................................8

Figure 3 Classification of Business Organization................................................................9

Figure 4 Size of JKH..........................................................................................................20

Figure 5 Organizational Structure of JKH.........................................................................22

Figure 6 Stakeholder engagement of JKH.........................................................................24

Figure 7 Size of BOC.........................................................................................................28

Figure 8 Organizational Structure of BOC........................................................................30

Figure 9 Stakeholders information in BOC.......................................................................31

Figure 10 Size of FLCF......................................................................................................35

Figure 11 Organizational structure of FLCF......................................................................37

Figure 12 Stakeholders of FLCF........................................................................................38

PEUJINI JOHNSON KANX000009 01

PEUJINI JOHNSON KANX000009 01

PEUJINI JOHNSON KANX000009 01

1. Introduction to Different Types of Business Organizations

1.1 Classification of business organizations based on the ownership

Private sector Incoporated

Public sector Local governm,ent

vountary Businesses under

PEUJINI JOHNSON KANX000009 01

1.2 Classification of business organizations based on the objectives

1.2.1 Profit businesses

PEUJINI JOHNSON KANX000009 01

1.3 Classification of business organization based on the scale

Business medium scale

1.3.1 Small & medium scale businesses

PEUJINI JOHNSON KANX000009 01

PEUJINI JOHNSON KANX000009 01

1.4 Information on the above mentioned organization

1.4.1.1 Sole proprietorship

Functions of sole proprietorships