Different Types and Purposes of Organizations

Business and business
environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
P 1- Different types and purposes of organizations.....................................................................3
Size and scope of different types of organization........................................................................4
P3- Difference between various organizational function and their link to organizational
objectives and structure...............................................................................................................5
LO3..................................................................................................................................................7
P4 Impact of macro environment on business activities.............................................................7
LO4................................................................................................................................................10
P5 Internal and external Analysis..............................................................................................10
P6 Strengths and Weaknesses interrelates with external macro factors....................................11
CONCLUSION..............................................................................................................................14
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment refers to the collection of all business factors such as external and
internal factors that can affect business of the organization. These factors include clients,
management, workers, technological changes, economic changes and political changes etc. There
are different types of organizations – private, public and voluntary. All of these have different
purpose, size, scope and legal structure. PESTLE analysis is used to analyse different internal
and external factors of organization. This report describes key points of SWOT analysis in
different companies and also explains interrelationship between organizational function and
organizational structure.
MAIN BODY
P 1- Different types and purposes of organizations
There are different types of organization in different sectors – private, public, voluntary
organization.
Private organization :
It is a type of organization which is operated by individuals or or any particular company
to earn profit. It is not controlled by government or state.
Purpose :
The main purpose of private organization is to earn profit and to create wealth and value
for the company. Another purpose of this type of organization is to set up monopoly in the
market and acquire more and more customers.
Legal Structure :
In private organization legal structure includes ownership and business management
which is managed by private personnels. It is developed by private individuals. It is organized in
different way. In private organization, business owner is only responsible for profit and debts.
Owner is accountable for profit and losses.
Example :
Tesco is the example of private organization. It is a retail organization in United
kingdom.
Public organization :
It is a type of organization which is run and owned by the government authorities. It
provides services to citizens. It is also a non profit organization.

Purpose :
Main purpose of these type of organization is to provide public services. Public
organizations always try to provide best and cost effective services to public. Another purpose of
organization is to use rare resources effectively to increase productivity of nation.
Legal Structure :
All the functions of public organizations are operated by central and local governance.
Public organization is funded by the government authorities. They only provide public services.
They do not work for profit.
Example :
BBC( British Broadcasting Corporation) is the example of public organization. It works
under British Government. It is working in 'Mass Media' industrty.
Voluntary Organization :
It is called as Non Government Organizational. Various NGOs are the example of it. It
includes volunteers that work for the company but do not get paid by the company.
Purpose :
The main purpose of voluntary organization is to accomplish their mission and goal for a
good a cause. They do not work for profit. Their goal is to benefit society.
Legal Structure :
In terms of legal requirement, legal structure is different from other organizations. There
are Beneficiaries, directors and volunteers/staff. Volunteers play a significant role in voluntary
organization. They do not work for profit. It is partially regulated. They get charities from
various sources.
Example:
Example of voluntary organization is British Red Cross. It was established in 1870 with
more than 32000 volunteers. It helps people in problematic situations and crisis.
Size and scope of different types of organization
There are different types of organizations. All types have different size, scope and structure.
Small organization :
These types of organizations usually have simple management structure. There are fewer
employees in this type of organization. Small organizations normally have 10-50 workers. There
are fewer levels of management in this type of organizations. Small enterprises need less amount