Different Types and Purposes of Organizations with Their Legal Structure

This document provides an explanation of different types of organizations (profits, non-profits, public sector) and their purposes and legal structures. It also explores the relationship between different organizational functions. The case study focuses on Aviva, a British multinational insurance company, and the British Heart Foundation, a non-governmental organization. The document includes information on the size and scope of the organizations, as well as their objectives and services.

Muhammad Abdul Qayum
[S0255688]
Unit 1: Business and
Business Management
[4706]

Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
P1. Explanation of different type and purpose of organization with their legal structure...........4
P2 Size and scope of the organization.........................................................................................6
P3 The relationship between different organizational functions.................................................8
P4 PESTLE analysis..................................................................................................................11
P5 SWOT analysis.....................................................................................................................12
P6 Explanation of SWOT..........................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business environment defined as total or collection of internal as well as external factors
like staff members, desired of customers and expectations, supply and demand, management,
clients, suppliers, owners many others. Due to these elements affect the function of the company
and how a company works directly or indirectly. There are also some factors affect to company
as well as business organization environment and condition. To better understand of the report
selected organization Aviva which are a British multinational insurance company and its
headquarters are in London, United Kingdom. It is a public limited company and the company is
doing excellent in the market and is listed in London Stock Exchange. The company is having 33
million customers over 16 countries across the world. Company is focused on the markets of
Asia and Europe and this company is the second largest in Canada. The name of the company
was changed to Aviva plc because it was a short name so that people could remember it and
could capture more customers. In the report consist of different types of organization (Profits,
non-profits, public sector) their purpose, size and scope. There are defined about market share,
profit share, growth and sustainability. Different types of structures that relates to function and
defined their mission and objectives. Additionally, conduct PESTLE, SWOT and Porters five
force model to analysis of UK super market and how impact on the decision of super market.
MAIN BODY
P1. Explanation of different type and purpose of organization with their legal structure.
There are three types of organizations which are private, public and voluntary. All these
types of firms have a different purpose and legal structure so the further report will discuss these
factors.
Not a profit organization (Public)
This type of organization does not earn profit for the owners but instead get profit for
donations for completing an object and aim which the organization has planned (Wood and
Logsdon, 2017). It is very difficult to run such an organization because get the investors trust is
very important in this factor and the company will be exempted from a lot of taxes which will
help the company to made enough donations to complete the mission of the company. The
investors in this organization will have to be shown as to be the money is being utilized in the
world and if the money is being used for the right purpose or not. For example, Crown

Prosecution administration is the public organization that is being occupied with doing criminal
charges that to in England and Wales. This association is run and coordinated by public
prosecutor.
Purpose- The main purpose of Crowns Prosecution is to serve the police forces with the legal
advices in England and Wales. The public prosecutors are the people who are running and
directing this organization.
Legal structure- The firm is listed in the London Stock Exchange which has been analyzed. All
the rules and regulations of the law are followed by the company because they themselves are
giving legal advice, so they have to make sure that they are following the laws themselves.
Example for this factor would be that Act 2003 extradition is being followed by the organization.
In this act there is a provision of extradition services in England and Wales (Quinlan and et.al.,
2019).
Private Organization
To handle the company's operations, the company has divided the authority between a lot
of people so that the company can achieve their goals and objectives. There are several ways by
which the organization can gain profit in the market. These types of organizations mainly focus
on the customers and there wants, needs and expectations from the company. The company
focuses on the products they are giving to the customers so that the company can make a profit.
In this the company will distribute the profit between the shareholders in the company equally.
There would be lesser conflicts in the business because they all are working for the same
objective and aim and the decision-making of the company is even easier so that the company
can work efficiently and better (Hillary, 2017). For example, Aviva is a British multinational
company which is giving insurance to people and this company is engaged with making attaining
profits and holding on too many customers.
Purpose- This company is engaged in providing the people to have international savings,
retirements and insurance benefits to the customers and the employees who are working in this
company.
Legal Structure- Since, this is a very famous company and is an international company therefore
the rules and regulations of the law are followed by the company very well. In this firm is
involved in giving protection and safe working conditions to workers working with them.
Non-governmental Organization

This organization is not based on the government but is independent organization. These
organizations are international and national in nature and the company is very beneficial for
people. The best example for this organization is British Heart foundation. This organization
helps the people who are having heart attacks and helping them to recover from that. The
company will also help the people who are at the risk of getting heart attacks or diseases which
are circulatory in nature.
Purpose- The purpose of this company is to help the people who are suffering from heart issues
and from other health issues so that the people of the world can remain healthy. There main
focus is on the areas like social inclusion and gender, social accountability and Resilience. There
is a distribution of goods and services in different sectors in the world and few of the other
sectors are health, livelihoods and education.
Legal Structure- There is equal employment opportunities in British heart foundation and the
voluntary sector for all the genders in the world (Saleem, 2017). This factor has made the
company get a lot of loyalty from the employees and the purpose of the company is such that the
people want to trust these organizations.
P2 Size and scope of the organization
Basis Aviva The British Heart

Size The company is spread in 16 other
countries, and they are having 33
million customers in the market of their
own. Aviva is the largest insurance
company and is also a provider of
pensions in United Kingdom. There are
more than 30,021 employees working in
the company which is making the
company operate so efficiently. The
operating income for the company is
£2,225 million and the net income of the
company is £1,687 million. The revenue
the company is making is £17,799
(Farndale, Kwon and Park, 2017).
BHF runs 737 shops throughout
England, Wales and Scotland. 160
furniture stores and electrical shops
and the company is thinking of
expanding more (Hillary, 2017). There
are 2.9 million employees in the
organization. The people who are
having heart problems do not need to
worry about anything anymore
because BHF will raise enough money
each year to help the people find a cure
and treat their circulatory diseases and
heart problems.
Scope There are three strategies which the
company is focusing on which are the
company will be investing in sustainable
growth, to deliver great customers
outcomes and excel at the fundamentals.
The company wants to help the people
after retirement and the company wants
to gain the trust of the people so that the
people will be able to invest and save
for their futures.
In the near future the organization will
have to get a lot of hospitals opened
for the benefit of the customers
because there is a high rate in the
population which are having heart
problems and this foundation will be
very helpful.
Objectives The company wants to provide the
customers with customized solutions
and quality in the products to make sure
that there is a sustainable growth over
time (Inouye and et.al., 2018).
The objective of this foundation is that
they want to serve those people who
are not getting proper help for
medications and for the heart problems
mainly.
Services The services which are provided by the The organization reaches for the cure

company are general and life insurance,
long term saving products and fund
management services.
and treatment by raising funds for the
people who are suffering from these
problems.
Legal
Structure
Since, this is a renowned organization
and is a worldwide organization along
these lines the standards and guidelines
of the law are trailed by the organization
well overall. This well-being and
security the organization is giving the
workers will get a feeling of
steadfastness inside the organization.
The firm is recorded in the London
Stock Exchange which has been
dissected. Every one of the standards
and guidelines of the law are trailed by
the organization since they themselves
are giving legitimate prompt, so they
need to ensure that they are keeping
the laws themselves. Model for this
factor would be that Act 2003 removal
is being trailed by the association. In
this demonstration there is an
arrangement of removal benefits in
England and Wales (Barik and Kumar,
2018).
Both the organizations are doing great in their respective places because they both are
doing good for the society people, and they both are helping in some way or another (Swensen
and et.al., 2016). BHF is helping the people in need a lot because the people are having heart
problems on a high rate scale therefore the organization is being able expand and reach out to the
people faster.
M1
Basis Aviva The British Heart
Structure They are following functional
structure
This organization is following
divisional structure
Size They have around 30,000
employees
They are employing around
2.9 million workers
Scope They have the scope to reach
out large number of
They have the scope to open
their enterprise in large

employees. number of areas.
D1
Organizational structure implemented have huge amount of complexity as there can exist mis-
communication between employees
P3 The relationship between different organizational functions
All the department of any organization must work together so that they can work more
efficiently and the companies which have been taken in this report are helping the human kind in
some way or another therefore it is very important for such organizations to work more together
and share the same objective.
Figure 1 Functional structure
Marketing
The marketing of the BHF is done very well because the people should be aware that
there are foundations which are helping the human kind and that is very important and how does
the marketing team reach out to the people are promotions and the funds for the promotions
comes from finance therefore both the departments have to work together. BHF makes sure that
the departments are working together so that they can reach other to the people in need and will
be able to help them better, and they will not have to face more problems in the future.
Marketing has to make sure that the promotions they are doing will be acceptable with everyone
in the organization because that is very important because there has to be clarity between each
department so that they all can work together and better (Lourenco and et.al., 2018). The
marketing and the human resource department works together for organization events for the
awareness of the services of the company so that they can make more people come into the

organization for the help. The human resource is the one who gives the marketing employees a
sense of experience through training sessions so that the people are more aware of the progress
which is taking place in the organization.
Human Resource
The human resource in BHF is very good and excellent with the human kind when it
comes to helping them. The training department which is under the human resource department
is making sure that the employees which are coming in the organization are sharing the same
objective and aim as the organization and makes sure that they are on the right track so that they
can help everyone (Haghani and et.al., 2016). Objective of the company is very simple and the
organization has to achieve that and it is only possible when all the department of the
organization work together. Human resource makes sure that all the departments are working
together so that they can achieve their objectives and goals and the control of making the
employees reach the standards of the organization is also done by the human resource
department. There are few code of conduct which have to be maintained in the organization and
that can be done if there is controlling and monitoring on the employees and the human resource
department is doing a excellent work on that of BHF. There are a lot of employees in the

organization which are working voluntarily and some are paid for the work they are doing in the
organization and that amount is taken out from the funds which the organization is getting. The
wages are decides by the human resource department and making the environment of all the
department in the organization is the work of the human resource (Oduro and et.al., 2019).
Finance
There are a lot of funds coming in the organization and that is managed by the finance
department and the use of the money should be done in which manner is also decided by this
department. The marketing team and all the employees in the company are getting their personal
wages and department money from the finance department. There are a lot of variations which
take place in the finance department because the funds are not regular therefore the objective of
the organization is being promoted more by the marketing department so that the funds can come
in regularly (Mohammadipour, 2018). Finance is also handling the production and research
department because they need to get more methods through which the human being can get
cured and that is the aim of the company. To gain more revenues in the organization the human
resource and the finance department are very much dependent on each other and the finance is
the department which is running the HR department which would be they are assigning the roles
to the human resource department to achieve the objective.

P4 PESTLE analysis
There are many factors of the external factor of the company which will affect the working
of the organization and that can be understand when there is a detailed analysis of the PESTLE
so that the company can find out the factors and improve them so that the company will be able
to work properly and make the most out of it (Tan and Teo, 2018). The following report will be a
analysis of Aviva.
Political Factors
After the Brexit there are going to be a lot of political factors which will be affecting the
working of the organization and there will be a lot of people willing to invest in this company to
for the secure future. The wages which are being given to the employees are very minimum that
is exactly why the company is not having more employees then BHF. There are a lot of countries
in which this company has expanded itself and that can turn out to be negative for a while
because of the change in the political aspect of the country. There is already a lot of corruption
which is taking place in the company and with that the company was able to grow so much but
now there can be an increase in the corruption in the company which will make the company not
be able to do so great (Ferreira, 2016).
Economic Factors
The company Aviva is dealing with money and they cannot afford to have a negative
growth in that because the customers are putting in money in the company for having a secure
future and not for the company. The efficiency of the company of financial market is falling
therefore the company will have to raise their capital in the local markets so that they can
maintain the growth and make the customers trust in the organization. There productivity of the

company is falling because of the employees leaving the company because of the instability in
the market (Williams and Powell, 2019).
Social Factors
The company has to get educated people to invest in their company because uneducated
people will not understand the concept of investing in a secure future. The company will have to
make the uneducated people aware of the importance of the company so that they can grow their
market and will be beneficial for the people as well (Siddique, 2018). There are a lot of people
who are becoming entrepreneurs in the world and investing in this may help them in future but
there are a lot of people who do not understand in that either so promoting the company can be
playing a great advantage on the people.
Technological Factors
Technology in the company is developing very quickly and the employees are accepting
those changes with the change of time. There are a lot of transactions which are taking place in
the company and that can be done with the help of the technology. There is a lot of competition
in the market therefore the company is doing their best in this factor to get a competitive
advantage.
Legal Factors
There are a lot of law which are involved in making any company work efficiently and
the company is following those factors so that they can make the employees of the company be
satisfied with the work they are doing in the company (Catherwood, Rafferty and McLaughlin,
2018). The data protection in the company is a very important factor in the company therefore
Aviva is making a lot of changing in the company so that the customer’s information’s and the
data of the company is not lost or stolen by anyone else.
Environmental Factors
The company is also investing a lot to make the environment of the world better so that the
environment standards can get better. There is very little environmental harm which is being
done by the company but they are investing so that they can make the customers feel better and
make them comfortable in the living (Saleem, 2017).
P5 SWOT analysis
SWOT of Aviva

Strengths
There are some fantastic strategies which the company is using for the benefit of the
company and making the company work more efficiently and much better. Over the years the
company has gained a strong portfolio so that they can get a lot of customers and gain their trust
in the organization.
Weaknesses
There are complaints which are coming in the company and they are taking a lot of time
to get solved is what the customers are saying regarding the organization. The brand image is
getting spoilt because of this factor. There has to be more investment in the technologies of the
company so that the company can grow (Sweeney and Bothwick, 2016).
Opportunities
The company should try to make the customers and the people in the world the
importance of saving for the future because it will make them lead a better life for the future. The
company could expand itself in the rural areas which can be a great opportunity for the company.
Threats
There is a lot of competition in the market therefore the company is not being able to
grow and the company will face a lot of threats when the Brexit takes place in the country. The
customers are not coming in the company regularly and the company will have to promote
themselves better without making the customers feel bad.
SWOT of British Heart Foundation
Strengths
There are a no taxes which are involved in the selling so there are discounted rates in the
company which gives the company strength (MARZAI, 2018). The board of directors are very
trained and experienced in their own fields which is giving the company a great advantage for
the efficiency and working in the business world. The company is highly motivated and making
a lot of changes in the world for the betterment of the human kind. In United Kingdom the
greatest killer is the heart problems that are why the company is the most needed and has a
strong demand in the world.
Weaknesses
The expenses of the company are way more than the company is spending for the people
for helping them and that is the objective of the company. The salaries which are being provided

to the employees and the people associated with the company is also not satisfactory and the fact
that they are doing more than the expected hours they are still not being paid extra. The company
is looking for new innovative ideas and perspective in the organization in the company which is
missing because the staff turnover is very low.
Opportunities
There are a lot of people who are linked with the company which is making the company
have a long term relationship with the clients. There is a huge market for the company because
nowadays heart problems have become common and the people are finding the treatment too
expensive (Wood and Logsdon, 2017).
Threats
There are a lot of charities which have come in over the past few years regarding the
similar problems. The direct marketing for the charities is not turning out to be so effective for
the company therefore the company is finding it very difficult to get details of the new people
coming in the company. Obesity is another reason for the heart problems to increase therefore
the customers has to be aware of the side effects of the issues which can come in front of them.
P6 Explanation of SWOT
The British Heart Foundation is a excellent organization because they are having loyal and
experienced staff with them which is making the company work with so much efficiency in the
world (Abramovsky and Kochenburger, 2016). The company has expanded itself in a lot of
places but the company will have to start working on their drawbacks because that can make the
company lose their clients. There are a lot of employees working in the organization but they are
not leaving the organization because the purpose of the organization is very good and the people
who are working in the organization want to do something good for the people. The employees
are putting in their hard work and not just that they are even giving there extra time to the
organization so that the organization can reach their objectives and goals but they are not getting
anything in return which is very de-motivating.
The funds which are coming in the organization is less but the company is spending way too
much than that so that means the company will have to come out with innovative ideas to get in
the funds for the company. The can be just by promoting themselves in the places where they
should be and by getting in new employees who are full of ideas and utilise them. There are a lot
of charities which are opening and they are very similar to BHF which will make this company

not be able to reach out to the right audience if they do not start taking actions on it faster
(Quinlan and et.al., 2019). It is very important for any company to achieve their objectives and
aims because that is what they are in the market for and this organization is not in the market to
get profit but to help people and making the people aware of this organization exists will be the
aim of BHF. BHF should try to make the people aware because that will make the organization
gain a lot of importance and will be able to reach out for help to a larger people but funds will
become a issues so the company will have to make the invest not just for awareness but
promotions equally.
CONCLUSION
From the above report we have analyzed a lot of the factors of Crown Prosecution
administration, British Heart Foundation and Aviva. There are a lot of companies in the world
and through this report we found out the positive and negatives of these companies and that is a
very important factor to understand any company. There are different strengths and weaknesses
of all the companies and because of that factor the organizations take different strategies and
methods to make the organization work so that they can make the most out of the company. The
sizes and scopes of the company is also different which is very important to understand too
because that will tell us where the company started from and where they have reached in the
present time. BHF has expanded and became a very popular organization which is not gaining
profit but still working for the benefit of the other. Aviva is a private company but also helping
the people of the world and making them prepared for the future. The motive of the companies
selected in this project is excellent.

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