Different Types and Purposes of Organization

Akhtar Hussain
S0285204
Business and Business
Management
[4874]

Table of Contents
INTRODUCTION...........................................................................................................................1
Different types and purposes of organization including private, public and voluntary.........1
Size and scope of different types of organizations.................................................................2
Relationship between different organizational functions and their link with organizational
structure and objectives..........................................................................................................4
PESTLE analysis....................................................................................................................7
SWOT analysis of 2 organizations.........................................................................................8
Interrelationship of internal factors with external factors....................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment is a combination of both internal and external factors that impacts
on the company in positive and in a negative manner (Bah and Fang, 2015). This study is based
on Ford which is an American multinational auto maker public company. Its headquarter is in
Dearborn, U.S. It was founded in the year of 1903 by Henry Ford and provide services to
worldwide. This present study is going to show different types of organization such as private,
public and voluntary. These types of organizations have different purposes, business size,
number of employees. The size and purpose shows and help an individual to identify the type.
There is also a difference between legal structure like board of director, organizational structure
etc. Further, it will also show importance of business functions and their interrelationship. These
interrelationship impacts on organizational structure and decision-making process of the
company. Collaboration between organizational functions makes an organization able to
accomplish its goals. Lastly, it will show some internal as well as external factors like political,
social, strengths, weaknesses and environmental factors that affect company's operations and
performance in critic manner. Comparison of internal factors analysis like strengths,
weaknesses, opportunities and threats also makes an organization able to see and measure the
effectiveness of its performance.
Part 1
Different types and purposes of organization including private, public and voluntary
There are several organizations which may be private, public or voluntary. According to
the purpose, organizations are divided into 3 types such as private, public and voluntary.
Private: It refers those organizations and businesses whose preliminary aim and has
been set up for making money. It is owned by individual or group entities. It is also stated that
the revenue and profit generated by these organizations are reinvesting in the company and
distributed among different stakeholders (Badertscher, Shanthikumar and Teoh, 2019).
Operations of these businesses are based in multiple sectors such as food and retail, fashion etc.
They are more likely to make up a larger share of the economy in free market. Example of
private sector organization is: Ford which is an American multinational auto maker. Ford is a
publicly traded company.
1

Public: It includes all those organizations who set up for the main purpose rather than
financial gain. It is differentiated from profit and private organizations because it works for
public benefits and not for making profit. Social and charities enterprises are some categories of
these type of organizations. The sums and amount generated by these companies are used for
public services and not are distributed in staff members. Some sectors in which they specially
operates includes: educational and regional sectors. These organizations may undertake some
business activities. For example: Crown prosecution services which is an agency which is
known for its supervisory legal advices given to police, CID and other investigation agencies
with the main aim reducing crime by identifying them in a timely manner. It is a non-ministered
government departmental type and a public agency.
Voluntary: These type of organizations are mainly NGO (Non governmental
organization) Who operate independently of government. It includes charities or social welfare
organizations whose main purpose is to provide services to vulnerable people and improve their
life standard. These type of organization, foundations and associations refers a group of
individuals who enter an agreement as a volunteer for providing services to vulnerable' people.
It is not necessarily voluntarily (Thornhill, 2016). For example: The British Heart foundation
which is a charity organization to UK. It funds research to beat heartbreak from heart diseases. It
is a charitable organization which is funded by legacies and wills, accounting for approximate
40% of their income and the rest is made up of other income.
All these described organizations may be micro, small, medium and large. It depends on
upn the purpose and number of employees as well as purpose. They have different legal
structure, size and scope. It may be sole proprietors, partnership and limited companies. Each
type of business need to decide on their legal structure as how will they operate which cannot
hurt anyone. The way of raising finance as well as their distribution etc. The main and common
aim of all types of organizations is to satisfy the society in which they operate and run. Private
organizations wants to make money and earn profit by satisfying its potential customers. On the
other hand, public and voluntary organizations also want to serve people and the society with
the main aim of improving their living standard.
Size and scope of different types of organizations
2