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Principle of Management (Học viện Ngân hàng)

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Table of Contents

I. Introduction.............................................................................................................................3

II. The sport industry in global environment...............................................................................3

III. Explain different types and purposes of organisations; public, private and voluntary
sectors and legal structures. (P1)....................................................................................................4

3.1. Type of organization........................................................................................................4

3.2. Stakeholders impact on sport industry.............................................................................5

IV. Explain the size and scope of a range of different types of organisations..........................6

4.1. Size..................................................................................................................................6

4.2. Scope................................................................................................................................7

V. Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisations. (M1)........................................7

VI. Relation between diffrence organizational functions and their links to objectives and
structure. (P3).................................................................................................................................8

VII. Analyse the interrelationships between organisational functions and the impact that can
have upon organisational structure................................................................................................9

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Abstract
The performance of the business depend largely on the business environment which can impact
positively on business or not, it can allow the business to operate more effectively with many
advantage conditions achieve its goals. In this assignment, I will describe the difference types,
size and scope of organization along with the various types and purpose of organization. In
addition to this, interrelationship of various department in the organizational structure will be
explained. The decision of an organization is affected by its size, scope and types. An effective
manager must consider in lingking the types, sizes and scope with their service and products.
Moreover, the company want to operate more effectively, they need to consider about the
interrelationship of organizational functions along with their advantage and disadvantage. So
that, this paper will help Decathlon to operate more effectively and to make decision more
suitable in the future.

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I. Introduction

Decathlon was a family-owned company, and established in 1976 in France, with the purpose to
provide the best sports product which available for everyone. After 46 years of development, our
company have became a large sport firm with more than 2000 store around the world, almost in
European such as 304 stores in France, 148 stores in Spain, and so on. In additions to this, in the
Decathlon sites, our firm supplies many types of sport equipments. For example, shoes, cycles,
sports clothes, and so on. So that, We can see obviously that, Decathlon is an international
company experting to provide sport items. Besides, Decathlon also has some factories, located
in Asia such as China and Viet nam, they have been the main supplier products for European
market. Moreover, our competitors are the reason for the development of Decathlon, some
typical examples are Lining in France market, Academy Sport + outdoors in US, and so on.

II. The sport industry in global environment.

According to Serwint (1990) stated that the first sports event which was held by ancient Greece,
is about 1600 BC to 1100 BC. So that, sports have a long development history, and the best
example is Olympic which includes many types of sports such as running, swimming, football,
and so on. Hence, sport industry has been increasing its significance on people’s life, and with
it, some sport companies also have been rapidly growing such as Nike, Puma, Decathlon, and so
on. The reputation of these sport events make people to find fundamental benefits of sports for
their life, especially, health. According to Researchnester (2022)the Global sport equipment
market can reach 82 billion dollars in late 2023, because large sport firms have been building
their E-commerce sites to develop their revenue. In addition to this, this article also points that
the ball segments will be significant contribution for value of market with 28 billions dollar, due
to popular sport events which is aforementioned such as World Cup and Euro. In addition to
this, the Global Sport market value increased from $354.96 billions in 2021 to $501.45 in 2022
(Christina 2022). Therefore, sport industry still is the continuously profitable market for
organization to invest, even though affection of covid 19 in 2021.

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III. Explain different types and purposes of organisations; public, private and voluntary sectors and
legal structures. (P1)
III.1. Type of organization

The difference among businesses organization along with their size, scope and goal which causes
various legal structure of an organization. Legal structure has various forms, basing on its goal,
and each form has its own results from operation and performance (Begg 2013). Public company
which is owned by government to do business in difficult aspect such as electronic, oil, mining
or desired products. The public firms do not base on the maximization profits, but they aim to
bring more benefits and value for national economy. Moreover, the Private sector is applied
mostly by organizations or our company. Private company is owned by individual or group of
people who is responsible for all activities of the company. For example, financial activities the
owners can benefit when business make profit and vice versa. This form of organizations are
helping owner to make profits or optimize their capital.. Finally, voluntary is organization that it
is a non-profit organization, it’s field about education, healthcare like Red Cross, Picking Jobs,
and so on. Therefore, a voluntary organization is inspired by bringing benefits and value for
community. So that, Decathlon is an private organization, controlled by owner, specially, Mr.
Michel retain 40% share of Decathlon Group. In addition to this, the Intersport in France also is a
private sector, because it was owned by individuals and established in Pari in 1968.

In terms of legal form, it includes three types, which are sole traders, partnership and limited
company. Firstly, Sole traders are all activities and operation of business is covered by its owner
or individual, and individual is responsible for making profits and cover their losses (Mankiw
2020). In addition to this, if the sole traders occur in debt, and the company is unlikely to pay,
then the creditor can require to owner’s property. Secondly, Partnership is organization owned
by more one people, they have to contribute agreed amount of capital which lead to a equality in
sharing profits and salaries and interests (Mankiw 2020). Finally, the company or corporation,
was applied by Decathlon. The company or corporation is a legal entity which is separated from
it affairs with shareholders or owners (Company Acts 2006). This means that if the company
bankrupt, the shareholders do not need to pay the depts when asserts of company is not enough.
In conclusion, the our legal structure is corporation.

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III.2. Stakeholders impact on sport industry.

The sport market was impacted by external, internal and connected stakeholder which is about
the relevant parts of company. First of all, the internal stakeholder include employees and
managers. More specific, the employees, managers or board of directors have immediately
impact on operation of organization, and they also spend vast of time contributing to the
performance of company. Besides, the management can decide how the profit used for returning
to shareholders or investing in others projects (Mankiw 2020). Secondly, the connected
stakeholders are about individuals or groups related with company in economic or contractual
such as shareholders, bankers, customers and suppliers (Mankiw 2020). The reason is that, these
stakeholders also impact on how the company improve well or not. To be more specific,
shareholders will concern about their investment and how they can return it in long or short term,
and it also show that the amount of capital the company can get to invest and develop their
projects. Finally, the external stakeholders are groups or parties having various objective and
various ways to ensure the company achieve them (Mankiw 2020). The external stakeholders
usually impact forcible aspects of company such as taxes by Government, employments such as
local authority, ethics and standards by professional bodies. To conclude, the stakeholders
include external, internal and connected stakeholders.

IV. Explain the size and scope of a range of different types of organisations. (P2)

One of our competitors in France is Intersports, which was founded in 1968 in Pari, Fracne. They
have sale division is IIC-Intersport. Their revenue from selling sport product of some partners
are Nike, Puma and Addidas, According to Intersport annual report in 2020) . They are private
company with the main activity in selling on personal sale or retail shop about Sportwear.

IV.1. Size

Organizations have many difference with each others due to their size and scopes. The size of a
company is defined by some characteristics, which are number of employees, revenue, volume
of

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sales, net worth in reals terms, assets of employed and the scale operations. So that, these
characteristics decide what sizes of company, small, medium-sized or large business. The small
company which is owned by one person (sole traders) usually focus on smaller scopes about
revenue and customer base, and they usually have less 50 employees. For example, the small
business can be small shops, solicitors and accountants. Secondly, the medium-sized business
which operate nationally, has scope about value creation, and maximize profits (With and
Mclean 2019). Besides, the medium-sized business employ a range from 50 to 200 people, such
as households goods, insurance company, manufacturers and so on. Finally, large business which
is used by our company Decathlon, is operated in more than one city and offer in more than one
country (Mankiw 2020). For example, the Intersport is a large company which have 5600 store
worldwide in 57 countries, and they employ approximately 65,000 employee in 2021 with the
main products is Sportwears. Especially, their turnover in 2021 reach 12,2 billions Euro. In term
of our company, Decathlon is a large business by following reasons. First of all, we has
approximately 100 thousand employees with large system of store about 2000 stores in 56
countries, especially, in France with 304 stores, 148 stores in Spain. Our product focus on the
sport equipment, related-sport goods such as footwears, clothe, electronic and accessories.

IV.2. Scope

Regarding to scope of company, it includes 4 stages to make a clear and proper scope for a
company, including Vision statement, Mission statement, goals and objectives. Vision
statement like a basic statement for setting out the strategic intention for organization. For
example, the Intersport believe people can connect with each other by sharing the same
passion, so that Intersport was guides by the courageous partnership, thoughtful innovation and
human connect. the Mission statemen was defined as a specific role the company want to fulfil
in the long term, which Intersport want to achieve is becoming a global destination for local
sport. To be more specific, they want to be an edge to stay relevant in a highly competitive
environment. In addition to this, the goals of an organization base on the beliefs, value and
attitudes to drive organization to achieve in the future, such as reduce cost, increase volume of
sales and so on. Regarding to Intersport they want increase the volume of sales, especially,
France market. Finally, the objective is about what intends the organization want to
achieve, and it can be

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measured basing on 5 features, consist of specific, measurable, attainable, Results-orientated

and specific time. With Intersport, they want to gain 25% market share in France sport market
in 2023, compare to 19% in 2020 (Simionato 2022). This company is the main competitor of
Decathlon in Fracne market, they have some difference and similarity with our company. Our
vision was guide by focusing on delivering the best in class innovative solution to our customer
and partners . Besides, our company also differ from the mission, we expect to make
sustainability about pleasure, benefits of people and access to many. Besides, we also have
some goals and objective about sports and sportwear retail in France market. We want to
increase 5% turnover in France market in 2022 from 4.2 billions Euro in 2021, and to achieve
23% market share in 2022, comparing to 18% in 2020 (Simionato 2022).

V. Analyze how the structure, size and scope of different organizations link to the
business objectives and product and services offered by the organizations. (M1)

The size, scope and structure of organization has a clear application orver the business
objectives, products and services. The relationships among them is very clear which can help
manager to make suitable decisions for development of company and enhancing the business
efficiencies. A public limited firm which is large business with enhancing scope in the market.
Besides, it has a large number of customers to serve that have clear application of their products
and services offered to customers along with their business objectives. A large firms like
Decathlon, a private sector business regards to large and dynamic objectives, which can lead our
firm in the future. In addition to this, the large size and scope of the company allow the business
to deveab2slop the numerous of products and services. Besides, the large businesses have large
scale of economy, learning benefits and other competitive advantages, which can help
organization to reduce cost, and benefits can be improved to create more values for customers.
On the contrary, take an example is sole trader, which has small size and scope, causing prevent
them to extend their product and services. Moreover, their objective are created for short-term
period, which poorly improve the business for long-term period.

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VI. Relation between diffrence organizational functions and their links to objectives
and structure. (P3)

The interrelation among function, objectives and structure is close with each other. The
organizational functions have been created by basing on their objectives and structure, and
organizational structure help people to control and take all organizational functions into action
(Slack, Brandon-Jones, and Johnston 2013). So that, the organizational functions work together
to make a rapid growth which can have many benefit for revenue, performance and operation
of organization. The organizational structures are built by geography and functions of
organization, product and brand, matrix structure and multifunctional teams and multidivisional
structures. So that, the organization structure includes 5 types, they are by function, geography,
products, matrix and multifunctional teams and multidivisional team.

For example, the Intersport which has a large organizational structure which is organized by
functional department because their skateholders include three levels with the first are CEO,
executive management, second are middle manager such as head of sales and logistic, finally
are operative person such as sale person (Lind, Rudmark, and Seigerroth 2010). The functional
structure is groups of individual having the same role in company such as sale, human
resources, marketing and so on (Mankiw 2020). Therefore their organizational have been built
by these categories. According to (Lind and Forsgren 2008) stated that this multiple
involvement of stakeholders is the main pillar for designing meeting. Moreover, all functions of
the firm have a close relation with each other such as production base on the volume of sales
monthly, sale functions must have information from R&D, distribution and finance function.
Therefore, organizational structure of Intersport can help their organizational functions
operating more effective.

In term of our company, organizational chart also use functional structure which is separated by
many expertise departments. They include Country IT Managers, Chief Financial Officer
digital and Accounting Leaders, Managers, Human resource, Supply Production, Strategy
Conception, and Market place commercial and Business developer. The functional structure is
groups of individual having the same role in company such as sale, human resources, marketing

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and so on (Mankiw 2020). This type of structure will help organization to separate the role in
each member more clearly, to have expertise knowledge due to the number of people in the
same department and help the organization find easy to train and recruit new employees. On the
contrary, the functional structure still has its own disadvantages. Firstly, it focus on inputs and
internal process rather than outputs or customers which is survival factor impact on any
organization. Secondly, lack of communication among different departments results from
specialization of functional structure, and it must hold many inter-department meetings and
referrals which requires much time.

VII. Analyze the interrelationships between organizational functions and the impact
that can have upon organizational structure.

Regarding to interrelationship among department in our company, we have seven department in

France, they are Product and Engineer, Finance, HR, Marketing, Health, Operations, and Sales.
The proper interrelationship between departments can gain the business objective more
effectively than any strategy, and it can create the extra value and impossible objective from
internal resource. So that, a proper interrelationship of departments play a pivotal role for the
performance of company. For example, the interrelationship between Sales, Product and
Engineer impact directly on our revenue, because the Product and Engineer can impact the
volume of the sales. In addition to this, the Marketing department also impact on sales, if their
marketing strategy is poor and not attract the customer attention. The most obvious
interrelationship in any company is that the Human Resource which impact on the company as
a whole. The reason is that, this department will decide to recruit new employee, they must
consider about personality, technical knowledge whether employees suit for cultural of
organization to maintain and to foster the cultural organization. To conclude, the proper
interrelationship between department can impact positively on business structure and objective
and vice versa.

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References
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