Different Types and Purposes of Organizations

This document explains the different types of organizations - public, private, and voluntary sectors, and their legal structures. It also discusses the interrelationships between different organizational functions and their link to organizational objectives and structure. The complexities of different business structures and the impact of interrelationships on decision making are critically analyzed.

Business and Business
Environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures.................................................................................................................3
P2/ M1 Explain the size and scope of a range of different types of organizations................5
P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure..................................................................................7
M2 Analyze the advantages and disadvantages of interrelationships between organizational
functions and the impact that can have upon organizational structure...................................8
D1 Provide a critical analysis of the complexities of different types of business structures and
the interrelationships of the different organizational functions..............................................9
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples...........................................................................9
TASK 4..........................................................................................................................................10
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses.....................................................................................................10
P6 Explain how strengths and weaknesses interrelate with external macro factors.............12
M4 Apply appropriately SWOT/TWOS analysis & justify how they influence decision
making..................................................................................................................................15
D2 Critically evaluate the impacts that both macro & micro factors have upon business
objectives & decision making..............................................................................................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................18
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INTRODUCTION
Business is regarded as the legal entity in which the main consideration is to generate higher
profitability and revenue. And the working in order to analyse by external environment that are
impacting the overall performance of the company. Business environment is mainly support with
influence operation of the entity and full control of managers (XU and CHEN, 2018). The
business is required to make the working change according to the business environment so that
they can contribute in the change in th economy. Internal factors of the company is concerned
with the employees, vision, mission etc. While external factors are related to the political, social
and legal factors in the business environment. Dyson is the chosen organisation which is
established in 1991 and the headquarter is in United Kingdom. This report will cover the
different types of organisation and their scope and background. Furthermore, it will analyse the
interrelationships of various departments and also evaluate the various factors of external
environment, SWOT analysis is being conducted in order to understand the internal environment.
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures.
Business is a separate entity in which the main consideration is to carry on the commercial
enterprises and they are protecting on the system with the proper contract exchange and property
rights. There are different type of organisation which are explained as follows:
Public organizations
These are the type of organisation which are established with the aim of serving the society
irrespective of earning profit (Testaa, 2020). The motive of such organisation is to to perform
such task or activities that can be beneficial for the society and they are directly funded by the
government. They supply services to the public for the benefits of public and the different types
of public organisations are and listed below:
 Central government- desired the type of organisation which is owned and controlled by
the government of United Kingdom and the operations are owned in all the region of the
country.
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 State government- such type of organisations which is controlled and managed by the
central government of the United Kingdom but operating their business at the state level.
The UK Government does not have any state government so it is solely controlled by the
central government only.
 Local government- these are the type of organisation which is owned and controlled by
the local government in the United Kingdom. They are offering their business within the
local boundary of the area.
Purpose: the main purpose of the the organisation is to serve the society and offer product and
services that can be helpful for the benefit of the society. They are funded by the tax raised by
the government.
Example: British Broadcasting Corporation
Private business organization
These are the type of organisation which is owned and controlled by the private individual
and the only consideration of such business is to generate higher profitability and establish of
good brand image in the market. Different types of private businesses are explained as follows:
 Sole proprietorship- it is the business entity which is owned by the single owner as it is
opened on the smallest scale and all the the consideration is managed by the single person
only e and they are liable for all the depth and liability of the firm.
 Partnership- it is managed and owned by the two or more people who are come together
in order to run their business on the the set agreement and share their profit and losses
mutually and decision making power, capital contribution and other expect are agreed by
the partners only.
 Companies- it is the artificial personality that is a separate legal entity different from its
owner which is owned and controlled by the board of director that is hired by the
shareholders. There is a huge process involved in the the foundation of company which
involve use diamond cost for its registration.
Purpose: the sole purpose of private organisation is to generate higher profitability and work for
their own benefit.
Example: Dyson Ltd.
Voluntary organization
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These are the type of organisation which is owned and controlled by the people who are
considered as the social workers. They are running their organisation is to help the community
not for generating profit. The investment is collected by the business in forms of donation charity
and gift. Different type of voluntary organisation are explained as follows:
 Trust- it is the legal arrangement in which a single person is entrusted its asset to the
other in order to when is the benefit for the other people in the society the main aim is to
offer the legal protection to the assets in order to serve the society (Reinhard, 2019).
 Unincorporated association- it is the entity which is formed by the two or more people
with the purpose of religious social charitable and noncommercial purposes.
Purpose: the main purpose of such organisation is to benefit the society without any aim of
generating profit.
Example: Shelter
P2/ M1 Explain the size and scope of a range of different types of organizations.
There are different type of organisation that is having their own size scope and three type of
organisation that are included in the reports are Dyson National Health services and shelter.
Different type of organisation on the basis of their size:
 Micro- these are the type of organisation in which there are less than 9 employees and
having annual turnover of less than 2 million pounds.
 Small- in such organisation in which 10 to 49 workers are working and generate revenue
of less than 10 million pounds.
 Medium- it is a type of organisation in which 50 to 250 employees are working and
generate the revenue of around 50 million euros.
 Large- in such organisation there are more than 250 employees which is generating the
revenue of 250 million pounds.
Dyson Ltd
 Background: It is the global company which is established in United Kingdom in the
year of 1991 and dealing in the household appliances.
 Product/ service offered: The company is mainly manufacture and design the household
products like air purifier heaters hair dryer bladeless fans hand vacuum cleaner.
 Vision: the vision statement of the company is to offer the quality product to their
customers so that they can sustain in the market.
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 Mission: the mission statement of the Dyson it's to inspire new generation of the engineer
as it offers mentorship material and money in order to get the hands on problem by the
young people so that they can solve them in an appropriate manner.
 Objectives: The main objective of the digestion is to attract the large group of their
customers as well as the engineer so that they can help in resolving various problems
within the organisation. The main aim is to bring the solution to the everyday problem of
the individual.
 Stakeholders:Roland Kruegar is the score of the organisation and the the owner and chief
engineer of the company is James Dyson. Jack Dyson is the chief lighting engineer in the
company.
British Broadcasting corporation
 Background: It is the national broadcaster in the United Kingdom and their headquarter
is in the broadcasting house in London. The companies founded in 1922 by HM
Government.
 Product/ service offered: BBC serving the world oldest broadcaster at the national level
and it is dealing in mass media industry and offering latest news update to the people. It
has a web portal and broadcasting and offers services on television radio and online
platform (Ramadani and et. al.,2020).
 Vision: The vision statement of the company is to provide nation with the speak to peace.
 Mission: The mission statement of the company is to to serve the audience by provision
of impartiality and also provide high quality output in in consideration to entertain
educate and inform the people.
 Objectives: The objective of the company is to to offer information and news to the
people so that they can help in understanding and engaging in the world that is around
them.
 Stakeholders: Richard Sharp is the Chairman of the company.
Shelter
 Background: The company which is m to campaign for the bad houseman homeless
people in the England and Scotland. It is non profitable organisation that is founded in
1966 by Bruce Kendrick and main consideration is to serve the people.
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 Product/ service offered: the companies offering advice information to the people who
are in the lead in their tough Times. They are managing for the people who don't have
homes through the character compliances with the government and local authorities in
order to improve the lives of badly house and homeless people.
 Vision: the vision statement of the companies to improve the lives of the people who are
homeless are having bad house in the England.
 Mission: the mission statement of the companies to help the guest in order to contribution
and build the better society in the country.
 Objectives: the main objective of the companies to grow and foster the community of
volunteers and so that they can build the commitment of understanding and mutual
respect.
 Stakeholders: Bruce Kenrich is the founder of the company.
P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure.
Dyson is the leading company which is dealing the operations in household appliances. They
are operating their business in the different functional areas. Various units of the Dyson and their
interrelationship is explained as follows:
 Finance and production- finance is the aspects which is responsible for procuring and
allocation of funds so that they ensure the smooth running of the busienss operations. The
production department of the Dyson is responsible for manufacturing of the innovative
houshold appliances that are needed huge funds (Ramadani and et. al.,2017). They both
are working together in order to get the quality products and also ensuring the effective
coordination between the departments so that production unit can have the sufficient fund
in order to to reduce the the better product in order to meet the needs and demands of
their potential customers.
 Human resource and marketing- HR department is responsible for the recruiting and
selecting the better working employees so that they effectively contribute in the effective
operation in the organsiation by making the best use of their skills and abilities so that
they can get better results within the organisation. Marketing department responsible for
promoting the product and services of the company so that they can attract the large
group of their potential customers. Both the departments are working together and human
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resources insured and are capable candidate who can advertise their product and services
in an appropriate manner.
 Research and development and Information technology- the resulting development unit
is responsible for conducting market research so that they can bring the innovation
according to the needs and wants of their potential customers. It is ensuring converting
off ideas into reality by using advanced technology and the both department are working
together in order to serve the mission of the Dyson. IT department can not work without
implementing the innovative idea.
Organizational structure
It is a system that allow the company to distribute their business activity in order to carry
out the various operations in the organisation in an effective manner (Halbert and Ingulli, 2020).
Different type of organisation structure is explained as follows:
 Hierarchical structure- it is the organisation structure in which one way communication
is conducted between the employer and the employee and there is no rights given to the
employee to give their valuable feedback on suggestion as the autocratic leader and
established the hierarchical structure in their organisation.
 Flat structure- it is the organisational structure between the employee and the employer
and the top level management is having full control over the decision making power
Dyson is following the organisation structure as they are having less middle management
in order to run their business in the appropriate and effective manner.
M2 Analyze the advantages and disadvantages of interrelationships between organizational
functions and the impact that can have upon organizational structure
It is significant for every business to work together by forming the effective relationships
between the various departments of the business so that they can attend the better outcome and
also the able to achieve the organisational goal in an appropriate manner. When the department is
having good relationship it will eliminate the productive arguments and conflicts by which the
employee can able to focuses on their set targets and objective. The inter departmental
relationship also help in working within the organisation structure in order to retain high working
employees within the organisation.
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D1 Provide a critical analysis of the complexities of different types of business structures and the
interrelationships of the different organizational functions.
The organisational structure which is followed by the organisation are having their own
complexity but they are enhancing the objectivity of the organisation. For example, when the
private sector organisation are focuses to work with the motive of generating higher profitability
and that is solely owned by the private individual. Another and public organisation are in to
serve the society so that they can enhance their living standards and do some welfare in the
society. The private organisation are less complex as due to no interference of government
another and public organisation having more complex with the full interference of the
government.
The interrelationship of the department has created the positive impact on the working of
organisation and the functional department of Dyson are interlinked with each other that makes
the effective working as each of the department are dependent on one another in order to perform
their job role.
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.
Pestel analysis is the strategic framework will help in analysing the external environment that
is impact in the performance of the company and there is a a various method by which strategies
can be framed in an appropriate manner. Factors of this analysis are explained as below:
Pestle Analysis of Dyson
 Political factor: the Dyson is having a positive impact of this factor as the political law
regarding all the local market segments are having strong impact (Freire, 2018). And
negative context, the government used to make a stable condition for the company that
affects overall sale and revenue and the supply chain management within the ongoing
production in an organisation.
 Economic factors: Companies majorly cover the positive impact as the changing
exchange rate with the growth and the interest area in the working and the impact of
economic factor there are various countries and growth rate is majorly high and this used
to fact the the business with the inflation rate and the changing economy that affects the
consumer buying behaviour and the various prices which affects the overall performance
of the company.
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 Socio cultural factors: the companies have a negative impact as the change in the
demographics which results in change in demand that customer are seeking for the
quality product and services. The positive impact on Dyson as they are usually creating
innovative technology idea for the customers by which they can expand their market in
the global level and also use the strategy in order to reduce the price by increasing their
production and focuses on premium quality product that can match the lifestyle of the
people and getting a high efficient value.
 Technological factor: Dyson is using the innovative and advanced technology that helps
in meeting the changing demands of their potential customer which is positively impact
in the organisation. They are conducting various research and development in order to
maintain a good the digital approach in their promotion. Advanced technology incurred
huge money which is negatively impact the company.
 Environmental factor: Dyson is using the clean equipment as it create a positive impact
and the environmental areas and create awareness regarding the investing in their project
with the consideration of ecological balance. Negative on the sustainability and people
are aware regarding saving the environment and making pollution imbalance.
 Legal factor: Dyson majorly working on the various countries and they are following
rules and regulation so that they can run their business and unlawful manner but it is quite
difficult can create negative impact to mental all the restrictions and law that are imposed
by the government of that country. All such laws that can be implemented in the positive
aspect for the organisation is to make the business model in the legal format.
TASK 4
P5 Conduct internal and external analysis of specific organisations in order to identify strengths
and weaknesses.
In order to achieve more success and get more appropriate results, there is requirement to
conduct internal & external analysis which can aid to determine the specific is strengths &
weaknesses. Dyson is doing great in technical field and expand their business operations across
the whole universe but in this fast growing world, Competition is enhancing rapidly it is
necessary for the Dyson to measure the impact of internal & external analysis which is helpful to
identify their strength & weakness (Direction, 2018).
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SWOT analysis is need to conduct which is beneficial to analyze strengths & weakness
of the firm so that it will make easily for the company to overcome the weakness & eliminate the
threats property so that Dyson can get more opportunities as compared to their rivals. The
description of SWOT analysis are given below -
SWOT Analysis Dyson
Strengths Weakness
 Dyson contain positive brand image
electronic items and also provide best
services to their customers across the
whole globe.
 Dyson adopt high level of
technologies & creativity which is also
a positive point of the firm.
 Advance technical features in their
electronic products are taking more
attention of their customers.
 Company is more concerned about
their research & development
department which are beneficial to
identify the requirements of the
customers so that company can do
innovative modification and provide
more satisfaction level.
 Dyson also focusing on design of their
products so that users can easily
access their products.
 Highly talented & skilled workers and
designers is the main concern of the
Dyson so that to gain more innovative
employees company conducts
 Lots of Competition in technological
industry also affects their performance
at the whole marketplace.
 Failed operation of washing machine
is also considered as the massive
weakness of the Dyson.
 Dyson faced many controversies for
their products are decreasing their
brand image.
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Strategic hiring & selection process.
Opportunities Threats
 To gain more Competitive advantages,
it is necessary for the company to
target local market within and across
the country.
 Regulate their business operations is
also best opportunity for the company
to attain more international
identification.
 Company can work together to the
local & small enterprises through joint
ventures & partnership which can
helpful to improve their market share
and growth.
 Now online platforms are also
considered as the very effective
applicability which can useful to target
massive population. Dyson adopt
social media channels like YouTube,
Facebook, Instagram, Twitter and
LinkedIn and advertise their products
to reach more people globally.
 In this modern era, technologies are
the main concern of the people, high
level of competition in this industry
and constant updating of technologies
by their rivals is threat for the
company.
 Continuous changes in the market
situation and uncertainty of the
pandemic & Brexit also a huge threat.
 Latency in into the products as
compared to their competitors is also a
big threat.
P6 Explain how strengths and weaknesses interrelate with external macro factors.
The influence of macro environment factors is more on the organization so it is necessary
for the enterprises to no its impact on their businesses (Blankson and Nukpezah, 2018). There are
various strengths & weaknesses of the Dyson so it is prominent for the company to identify the
impact of their strengths and weaknesses on the macro factors. The interrelationship between the
strength and weaknesses of the company with their external micro factors are given below-
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 Political Factors - Political considerations are analysed by the Dyson so that
company effectively interrelate there is strength and weaknesses with this macro
environment factor.
Strengths Weakness
Company properly follows all the lawful
activities and procedures in a systematic
manner can helpful to boost the performance
level of the company.
Constant modification in the laws and
political procedures as per the changing
scenario of the country can be a weak point of
the Dyson.
 Economic Factors - Economic growth is the main concern of the big organization
and Dyson is a multinational company which often provides appropriate affect on the
macro factors with their strengths & weaknesses. Some specific strength and
weakness in context of this factors as follows-
Strengths Weakness
Dyson mainly adopt Competitive pricing
strategy which is helpful to gain more
Competitive advantages and it can useful to
improve their market position at the whole
market place.
Market fluctuations can be the main problem
which Dyson suffer the most which can
provide adverse impact on dealing with the
foreign countries and eventually company
gain less amount of foreign currency.
Uncertainty of Brexit also affected the
marketing of the company which provide
negative impact on economy.
 Social Factors - This factor is mainly concerned about the requirements of customers
which company effectively identify so that Dyson can fulfill all the need of customers.
Strength and weakness in context of this factor is discussed below -
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Strengths Weakness
Company is more concerned about their
Research and Development Department so
that make easy to determine the current
requirement of their potential customers
which can help full to do some modifications
and add some specific features on their
products.
More competition in technological industry is
also contained as the big weakness for the
company which make their performance
week.
.
 Technological Factors - Advanced Technologies and few changes in technological
consideration is considered by the Dyson. Some specific strength and weakness related
with this factor are as follows -
Strengths Weakness
Company conduct a strategic hiring and
appoint high potential and talented employees
which can help full to produce designer and
innovative products to attract the customers
and also provide good value of their product
is considered as the main strength in context
of this factor.
Dyson charge more cost to their highly
innovative product which affect their
marketing.
 Legal Factors - Dyson contain all the lawful, legislation , acts , policies and also face
some adverse impact not following properly. There are some strength and weaknesses in
context of this factor are as follows -
Strengths Weakness
Company takes care about legal procedures
and also from specific modifications on the
Sometimes frequent changes in legal policies
and lawsuit provide adverse impact on their
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legal legislation which can help full other
countries legal structure for conducting
marketing appropriately.
business activities with and other countries
can be a big weakness for them .
 Environmental Factors - This is considered as the most influential factor of the macro
environment that mainly engaged with the strength and weaknesses of the Dyson.
Strengths Weakness
Company mainly focuses on the
environmental activities and also maintains
green marketing so that Dyson can effectively
maintain the environmental sustainability rate
which is also considered as the strength of the
company in context of this factor.
Technologies changes and high level of
networking connectivity can affect the
environment.
M4 Apply appropriately SWOT/TWOS analysis & justify how they influence decision making.
On the basis of SWOT analysis discussion it analyze that there are various strengths and
weaknesses which determined by the Dyson and also helpful to identify the positive and negative
impact of their strength and weaknesses on their business operations. Dyson use their strengths
properly so that company can take appropriate decisions which can help full to gain more future
opportunities for the growth. Dyson constantly working to reduce their weaknesses with the help
of their strong strengths points which can help full to convert their weaknesses into strength so
that it will also helpful to take appropriate decision in generating various opportunities.
Competition is one of the main threat which company mainly facing so company so through their
strength company remove their threats and take decision to formulate Strategic strategy so that it
will make easy for the company to gain more competitive advantage.
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D2 Critically evaluate the impacts that both macro & micro factors have upon business
objectives & decision making
Macro & micro environment factor provide the direct effects on the business objective
and also influence the decision making of the company. As per the above discussion it is
analysed that the impact of internal & external micro environmental factors is more on the the
company operations. Dyson company constant working on their regular operations and also keep
sharpening their strength so that company can effectively remove their weaknesses and threats in
order to gain more opportunities for the future development which can help full to maintain
business objective. Company provide proper trainings to their employees so that they can learn
new skills and competencies on the basis of the current scenario of the market and also provide
their contribution in the decision making process which will beneficial for the company to obtain
the business goal and objective.
CONCLUSION
According to this report it is completed that the business environment contain various
factors which influence the overall performance and productivity of the companies. It is
necessary for the enterprises to pay more attention on their regular operations, organizational
structure, legal structure so that company can effectively maintain their activities in context of
the internal and external environment. This report discuss about different types of enterprises like
public, private & voluntary and also determined there mission, vision, business objective , size
and other factor. In this report, PESTLE analysis also conducted to evaluate the impact of macro
environment on the business objective and decision making of the company. With the help of
SWOT analysis, company can effectively determine the current market position which is
beneficial to take appropriate decisions to gain more opportunities for the growth.
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