Different Types and Purposes of Organisations

Business & the
Business
Environment

Table of Contents
INTRODUCTION...............................................................................................................1
TASK1................................................................................................................................1
P1 Explain different types and purposes of organisations; public, private and
voluntary sectors and legal structures...........................................................................1
P2 Explain the size and scope of a range of different types of organisations..............4
TASK 2...............................................................................................................................5
P3 Explain the relationship between different organisational functions and how they
link to organisational objectives and structure..............................................................5
TASK 3...............................................................................................................................7
P4 Identify the positive and negative impacts the macro environment has upon
business operations, supported by specific examples..................................................7
TASK 4...............................................................................................................................9
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses............................................................................................9
P6 Explain how strengths and weaknesses interrelate with external macro factors.. 11
CONCLUSION.................................................................................................................12
REFERENCES................................................................................................................14

INTRODUCTION
Business environment is regarded as the most essentials aspects of any
organisation. The forces that constitutes the atmosphere of enterprises are their
suppliers, government, clients, conditions, investors, competitors and many more. This
is defined as the accumulation of whole external as well as internal factors. It aids
organisation to identify opportunities, tapping helpful resources, aids in planning as well
as develops whole development and performance of business (Aithal, 2015). As per the
scenario, the undertaken private organisation in this report is Ford which is a renowned
American multinational auto-maker having headquarters is in Dearborn, Michigan, U.S.
It sells commercial as well as auto-mobiles of its own brand. Also, Crown prosecution
service as public organisation and The British Heart Foundation as Voluntary
organisation. The undertaken topics that is covered in this report are various kinds of
organisations, their scope and size, interrelationship between organisational functions,
application of PESTLE model and its positive as well as negative impact upon business
operations. Moreover, SWOT analysis of two organisation which justifies procedures of
decision making are explained. Apart from this, the interrelation of strengths and
weaknesses with external macro factors are also described in this report.
TASK1
P1 Explain different types and purposes of organisations; public, private and voluntary
sectors and legal structures
According to the scenario given in brief, the company which is chosen as public,
voluntary and private are Crown Prosecution service, British Heart Foundation and
Ford. Below is the description of purpose and legal structures of these companies which
are as follows:
Private Organisation: It is termed as an agency, corporation or an individual
which has their own resources and not functioned by government or any public body.
They operate with a motive to ear profit only (Bocken, Rana and Short, 2015).
Background of the company: The company which is considered as private
company is Ford. It is a multinational auto maker company and its head office in
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Michigan, Detroit. The company was proposed by Henry Ford in year 1903. The
company have more than 66 plants globally and have around 1,80,000 staff members.
Products & Services: Its products involves commercial vehicles, pickup trucks,
automotive parts, luxury vehicles, SUVs and many more. The services of Ford are
Vehicle leasing, Automotive finance and Vehicle service.
Objectives: The objective of the company is to develop those vehicles which
reduce the consumption of oil and to increase usage of Bio-fuels.
Vision: The vision statement of Ford is “ To become leading and trusted
company in the world which designs smart vehicles for smart customers” .
Mission- The mission is “To produce outstanding products which improves and
develops people's lives”.
Types of private organisation Sole Proprietorship: The business which is operated and function by a single
entity. It has been stated that it is the most easiest and convenient form of
business. The person is responsible for all the losses and debts (Burns, 2016).
 Joint Stock Company: This company can either be private as well as public. Joint
stock company is managed and controlled by chief executives and board of
directors. The company have limited liability and the risk of these companies is
high.
Purpose: The main purpose is to assemble people together. With this, to serve
better quality of products to customer in order to gain trust of people and become the
leading company in these sector.
Legal Structure of company: It is determine that the overall legal structure of
company is rely upon the functions as well as operations performed by an organisation.
In relation to Ford, it make use of private limited company structure, in addition to ths, all
the decisions are taken by the higher authorities of company that is CEO, BoD and
oeners of company. It is analysed that the decisions taken by company is depend on
the external and internal factors. In Private limited companies, there is one or more
owners and shareholders as well. In addition to this, in such legal structure the transfer
of share is prohibited. Moreover, owner of the company is enjoy greater capital and
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have limited liability. The company is following the legal structure of a private
organisation as it consist of more than 1,80,000 employees.
Stakeholders- The stakeholders of company is suppliers, groups, creditors,
customers, communities and may more.
Public Organisation: The company which is managed and controlled by
government. These are those company which have more than 50 percent share is
owned by public. This organisations are funded by government as well as public ( Demil
and et. al, 2015).
Background of the company: Crown prosecution service is a public agency
which conducts prosecution in Wales as well as England. The company head office in
London and have around 6,000 subordinates. The CEO of company is Max Hill and it
was founded in year 1986.
Products & Services: The company serve legal advice to investigate agencies
and to police in order to decide criminal charges of a suspect.
Objectives: The main motive of the agency is to punish right person and provide
justice to offenders.
Vision: The vision is to bring equality in societies and to punish criminal so that
population of the country live independently and feel security in society.
Mission- The organisation mission is to provide justice by effective &
independent persecution. In addition to this, the company want to foster a culture by
inspiring and motivating people of society.
Types of Public organisation: Departmental Undertakings: This organisation have existence with government
and it is mainly act as a sector of government (Deng and Wang, 2016). For
example, Broadcasting, Telephone and railway services. Government Company: The company whose 51 percent shares or more than it
are owned by the state or central or partly by both. These are those organisation
which activities are managed and take place with the permission and order of
government.
 Public Corporation- It is formed through special act of central or state or
parliaments. Example, state banks, Airlines and so on.
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