Different Types and Purpose of Organisation and Their Legal Structure

Assessment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types and purpose of organisation and their legal structure...................................1
P2 Explain the size and scope of different types of organisation...............................................3
M1 Analyse how structure, size and scope of different organisation link to the business
objectives, products and services................................................................................................5
TASK 2............................................................................................................................................5
P3 Explain the relationship between different organisational function and how they link to
organisational objectives and structure.......................................................................................5
M2 Analyse the advantages and disadvantages of interrelationship between all departments
and its impact on organisation structure......................................................................................6
D1 Provide a critical analysis of complexities of business structures and interrelationship of
organisational functions..............................................................................................................7
TASK 3............................................................................................................................................7
P4 & M3 Identify the positive and negative impacts of macro environment on business
operations and apply PESTLE model.........................................................................................7
TASK 4............................................................................................................................................9
P5 Conduct internal and external analysis of particular organisation.........................................9
P6 Explain how strengths and weaknesses interrelated with external macro factors...............10
M4 Apply SWOT analysis and justify how it influence decision making................................11
D2 Critically evaluate the impacts of micro and macro factors upon business objectives and
decision making........................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment refers to the collection of internal as well as external factors which
includes customers expectations, suppliers, employees, technological innovation, market trends
and economic changes that directly influence business decisions and operations (Calabrese,
2018). As business environment helps in analysing many opportunities, assist in planning,
growth and development, profitability, useful resources and so on. There are several factors that
effect business operations directly or indirectly which plays a crucial role in taking several
decisions in order to get smooth functioning of a business organisation. There are many kinds of
organisations such as public, private and voluntary. In this report consider all sectors like Aviva
as a private sector, Crown prosecution service as a public and The British heart foundation as a
voluntary organisation. In order to analyse the external environmental impact Aviva is
considered which is a British multinational company that headquartered in London, UK. Under
this report discuss about the different types of organisation, purpose and their structures, size,
scope, objectives etc. In addition, identify the interrelationship between various functions as well
as structure. Evaluate the impacts of internal and external environmental factors by using PEST
and SWOT analysis that influence business operations and decision making process.
TASK 1
P1 Different types and purpose of organisation and their legal structure.
Business organisation defined as a group of person who are working together in order to
perform tasks or activities. It is of two types like profitable and non profitable in which the main
motto of profitability is to earn profit and non profitability includes social welfare (Cepel, 2018).
Different types of business organisation are discussed below:
Public sector organisation: It is associated with that kind of organisation that are established or
operate by the government for the motive of providing services to general public. The main aim
of that kind of organisation is related to the public welfare not owned for the purpose of earning
profit. It includes Network Rail, BBC, Crown prosecution service, Department of work and
pension etc.
Purpose: The purpose of public sector businesses is to provides services to the public for
their benefits such as public or government goods and services.
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Legal structure: Central government: In this type of structure, companies are wholly controlled by the
government of country as well as owned, managed and formed by the central authority
and they collect money from the community by imposing taxes on their income. State government: In this, businesses are limited in particular states as well as managed
and controlled by the state authority itself.
 Local government: In this, companies are established and developed by the local
government and council board that involves municipals and they collect fund from public
by charging council tax.
Private sector organisation: In this kind of business organisation, all activities of a firm is
totally controlled and managed by individual's or persons as there is no intervention of
governmental body (May, 2019). For examples: Dyson, Tesco, Ford, Aviva etc. that are privately
owned for the motive of earning profits.
Purpose: The main purpose of private sector businesses are to make more money by
earning profits and employ more persons in comparison of public organisations (Argenti, 2018).
Legal structure: Sole proprietorship: It is owned individually with a little capital in order to earn profit.
As the owner of this businesses have entirely controlled over operations and shares all
risk individually. Partnership: It is related to the group of persons who agreed on a common deed to
carried out a business operation jointly. All partners are liable in equal manner for
execute day to day activities, shares equal profit and loss, make decisions and so on as
well as they required to perform work as per the Partnership Act, 1890 (The Partnership
Act 1890, 2019).
 Limited company: It is associated with the joint stock business entity as it is incorporated
under the companies act 2006 as per the laws and legislation of UK (Companies Act
2006, 2019). In this business entity and its owner has separate identity that is registered in
the form of companies registration.
Voluntary organisation: It is related to the group of individual's who comes together and make
agreement for doing a single business for accomplishing a specific objective that is common that
is in favour of people who lives in a society (Hair, 2019). It operates for the purpose of
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