Types and Purposes of Organizations: A Comprehensive Overview

Businesses & Businesses
Environment

INTRODUCTION
Environment of business can be described as to the surroundings and the external as well
as internal elements which may affects the organization. The business environment considers the
diverse micro and macro factors which influences the decisions of an establishment and the
activities to run the business (Fjeldstad and Snow, 2018). Business environment can affect the
organization in positive and negative way.
This report is being prepared for better understanding of different types, purpose, size,
scope and objectives of the organizations. This file also includes the interrelation between
various organizational functions and an evaluation of impacts that micro and macro
environmental factors has upon the strengths and weaknesses of an organisation. For this
purpose, Fulton's Food has been chosen which is a retailer which deals in Frozen food items. It
was founded in the year 1960.
TASK 1
Types and purposes of organisations:
Every organisation has the duty to accomplish the supply and demand of its customers. In
context of customer, different establishments have different functions. On the basis of their
purpose, organizations can be classified into two categories which are described as follows:
For Profit Organizations: The main purpose of these kind of organizations is to gain
maximum profit or revenue by providing products or services to their customers. Most of the
entities are considered as for profit organizations. This may include any establishment from
restaurants to retail stores, real estate companies to insurance companies, etc. Following are the
types of for profit organizations:
Private Organisation: These are the type of organizations which governed by the private
owners or partners. The overall objective of these private organization is to earn money and
profit by fulfilling the expectations and needs of customers (Salvato and et.al.,2019). The goal of
the private organization is to make optimum exercise of resources to improve performance. The
types of private organizations are: E.g. of private organisation include retail organisations like
Tesco, Sainsbury etc.
Sole Proprietorship: A sole proprietor is a type of organization which has an individual
owner who has all the liabilities ans risks of the business and all the profit as well. This kind of
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