Different Types and Purposes of Organisation

This document provides an overview of the different types and purposes of organisations in the business environment. It explores the relationship between various functions of an organisation and the impact of macro environment on business organisations. The document also includes a discussion on the size and scope of different types of organisations.

Business and
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types and purposes of organisation.........................................................................1
P2 Size and Scope of various types of organisation....................................................................2
TASK 2............................................................................................................................................4
P3 Relationship between various functions of organisation in respect to objectives..................4
TASK 3............................................................................................................................................6
P4 Positive and negative impact of macro environment upon business organisation.................6
TASK 4............................................................................................................................................8
P5 Internal and External analysis to strengths and weakness of organisation.............................8
P6 Interrelation of Strength and weakness with external Macro factors.....................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment is being considered as both internal and external factors that impacts upon
operations of a company. Employees, customers and managing team are some of internal
elements and on the other hand, Government, rivals, public, economy, technological aspects and
other elements comes under external environment which majorly impacts upon business deeds.
Away with this, it is essential for every single business organisation to develop products and
services according to needs of customers (Business environment. 2018). In present assignment,
firms which has been taken are ZARA as private, NHS as public and Oxfam as Voluntary
organization that will help in understanding different types and purpose of companies in United
Kingdom. Along with this, interrelationship among functions of a company has also been
included. Report will also focus on both micro and macro environmental factors which affects
business in both positive and negative manner are also enclosed with the assessment which will
help in understanding different concepts related to environment.
TASK 1
P1 Different types and purposes of organisation
In market, there are different types of firms which lead business to give products and
services to satisfaction of necessities of public. Government and individuals are two major
factors which begin and run firm to create cash and financial economy of nation. Away with this,
these are various types of association which are expressed underneath:
Private association: This division include firms which are developed and kept running by
individuals for making income. They builds business openings and delivers services so that
customers needs can be fully satisfied considering aim of earning profit. This outcomes into
upgrade in financial states of country and its economy as well. ZARA is private retail firm which
manufacture Clothing products, individual consideration and different items to clients (Vaiman,
Sigurjonsson and Davidsson, 2011).
Purpose : ZARAs main objective is to Manufacture trendy clothes so that needs of
customers can be fully satisfied. This causes organization to improve its notoriety and picture in
market in regard to equal brands.
Public association: It is another part which is supported and directed by government for
improvement of nation. A number of Public projects, elements and administrations are given by
3

them to satisfaction of needs of society. NHS is being considered as a public organization which
delivers medicinal services to individuals of United Kingdom.
Purpose : National Health Services work is to offer help and wellbeing administrations to
people in all over United Kingdom (Wack, 2017).
Voluntary Organization: This segment involves firms whose work is to lead social
Standards and give benefits as well. Non-benefit, for benefit and Voluntary are three types of
different association which give things and administrations to penniless individuals. Their point
is to improve society without objective of creating benefit. Oxfam is to enhance standards for
everyday comforts of individuals who are in need. It gives formative and philanthropic help to
moms and youngsters.
Purpose: Oxfam conveys various administrations with the goal that ways of life of each single
individual in all over world. Their work is to decrease destitution and conquer the viciousness,
sickness and separation of people.
P2 Size and Scope of various types of organisation
Public, private and voluntary are three main forms of organisations which conduct business
with different purpose and scope (Chetwood and et. al, 2014). Such companies also differentiate
on the basis of size, structure scope and objective. In this regard, description of size and scope of
mentioned three types of are given as below:
Public organisation: NHS (National Health Service) is a publicly funded organisation of
UK, which provides health care services and emergency treatment to individuals.
Products and services: This health institution provides services like critical and non-
critical medical care to individuals without payment. It includes eye tests, prescriptions, dental
care, ophthalmology, long-term healthcare and more (Yu and Ramanathan, 2013).
Size and scope: NHS has near about 211 clinical commissioning groups with approximate
1.4 million of service providers. Government department of UK is responsible for NHS and
spent more than €110 billion annually for providing free services to poor and helpless people.
Vision and mission: Mission of National Health Services is to bring together those persons
who want to give services to patients. In this regard, main vision of NHS organisation is to
improve care for patients and serve across boundaries as well.
Business objectives: NHS main goal is to provide emergency treatment to patients and care
services to old age people on minimum charge.
4

Legal structure:
· State Government: This is government which share their political right with national
level authorities. They have right to make decisions and control federal government that
is run state.
· Local Government: It is another type of public administration which comprises lower
level power in a state. They conduct measures and activities of specifies area by top
authority.
· Central Government: This is higher and supreme governing association of a unitary
state. They make policies and rules which other bodies require to follow in time of their
functioning (Zsambok and Klein, 2014).
Private organisation: ZARA is a retailer company of UK which deals in private sector. It
serves products in entire world and ranked on 30 in best global brands.
Products and services: This company offers trendy or fashionable clothes and bags
through online and offline procedure in all over the world.
Size and scope: ZARA has nearly 7,475 stores which spread internationally, where
customer can find out a range of trendy clothes for both men and women (Meiners, Ringleb and
Edwards, 2014). Currently, it has near about 12,000 employees and earned approx 450 billion
pound per year.
Vision and mission: To become one of the best retailer company in the world is main
vision of ZARA. While to serve best style of dress as per high status is mission of this firm.
Business objectives: Goal of ZARA is to increase demand of customers and exceed their
satisfaction level by giving them opportunity to acquire new designs of clothes and bags.
Legal structure:
· Sole proprietorship: Business which is launched and handled by individuals to generate
income for livelihood, are come under sole proprietorship of private sector. Companies
like groceries, tailors, departmental stores etc. are some examples of sole trading
companies (Sekaran and Bougie 2016).
· Partnership: It includes those private organisations which are incorporated by two or
more business owners after made an agreement. All partners signed a legal document to
take equal participation in decision making activities as well as experience equal loss or
profit also.
5

Voluntary organisation: OXFAM is a non-profit organisation of UK, also known as
international non-governmental company.
Products and services: It is a part of international movement to fight for injustices which
cause poverty.
Size and scope: Near about 20 NGOs are associated with this company with some
partners in over 19 countries who help in eradicating poverty from whole world.
Vision and mission: Fight for poverty is mission of this company and protect rights of
people as well. In addition to this, its vision is to improve condition of society by mobilising
power of individuals to reduce poverty (Saleem, 2017).
Business objectives: OXFAM goal is to help people in starting their business for
livelihood and improve their living condition.
TASK 2
P3 Relationship between various functions of organisation in respect to objectives
In an association, individuals are divided into various sub sections for execution of tasks in
compelling way. Human resource, finance, R&D, Marketing, sales are different divisions which
are planned by BOD of ZARA. In these units individuals are divided in regard to their aptitudes
and capacities. This encourages organization to have satisfactory subordinates for business and
helps in delivering right service to individuals. Along these, interrelation with one another has
been done beneath:
Human resource department : HR section is to oversee employees of ZARA for having
adequate staff individuals for conduction of exercises. Recruitment, selection, remuneration,
representative relations, preparing and improvement are different practices which are executed
by administration of ZARA. This encourages them to designate and convey staff individuals in
different units that are financial, marketing, sales, R&D. In this way, seniors can build up
competitive environment at workplace and satisfy requests of individuals (Tayur, Ganeshan and
Magazine, 2012).
Financial department: This is another unit whose responsibility is to oversee reserves
appropriately. They outline plan, direct examining and accounting and control stream of cash in
various business exercises. For this, budgetary plans that are positive and negative, income
articulation and monetary record are kept up by administration of ZARA. This causes them to
6

know about benefit. Through this supports assignment to promoting and activity individuals is
made in regard to advertise requests.
R&D department: This unit’s responsibility is to lead study for picking up data about requests
and need of public and adversary firms. It is vital that items and services are given by
organization in as indicated by necessities of individuals. ZARA is a fashion store whose R&D
group lead statistical surveying for getting learning about economic situations. This causes them
to develop new and imaginative items and bundles for drawing in clients.
Operational department: This unit assumes basic responsibility in firm which is to make
and develop or manufacture items. It is important that things are manufactured and given in as
per request of purchaser for achievement of their needs. In ZARA, task group duty is to take care
that adequate items are accessible in store. Along this, things ought to be of good quality which
encourages administration to manage mark picture.
Marketing department: It is another vital unit whose obligation is to illuminate individuals
about firm and its item. For this, promoting plan is figured in which advertising blend, target
market, spending plan and other data is characterized. Item, value, put, advancement,
individuals, process and physical proof are 7 P's which are characterized by showcasing group
(Türetken and et. al., 2011). Publicizing, deals advancement, exposure are directed by them
which enable deals to individuals to persuade purchasers. In this, back group coordination is kept
up in regard to choice about reserve portion in advertising exercises.
Sales department: This unit includes individuals who associate and speak with clients.
Sales representative of ZARA obligation is to give data to purchasers about item, its highlights
and properties. Along this, they additionally take input to discover their sentiments and proposals
in regard to nature of thing and changes. In this, showcasing group bolster is to mindful open
about things which assist them with convincing and influence effectively. They help R&D group
to roll out improvements in things in as indicated by prerequisites of clients.
Organisation structure: Practical, divisional, Matrix and task are distinctive sorts of
structure which are utilized by organization to plan framework. Economic situation, goals,
estimate, degree is different strategies which decide appropriation of staff individuals in office.
ZARA is a retail location which has branches around the world. For this, divisional association
structure is received by administration for conduction of business universally. In this manner,
7

assets are used productively and position of firm is keep up in regard to contenders (Crane and
Matten, 2016).
TASK 3
P4 Positive and negative impact of macro environment upon business organisation
PEST analysis is tool which is used by management to assess and evaluate influence of
macro environmental elements on an organisation. Government, economic conditions, public,
technology and environment are various external factors. These are components that
management of ZARA require considering at time of system designing and strategies
formulation. Thus, this is explanation of macro factors and their impact on firm:
Political factor: Government had framed policies of taxation, licensing and other for
regulating organisation. ZARA is an international firm, so there performance is affected by
legislative and political state of nation (Gharajedaghi, 2011).
· Positive impact: Political stability of United Kingdom advantage ZARA to operate
business globally. This helps management to sustain firm and its operations by having
large market reach and customer base.· Negative impact: Government had made employment legislation that supermarket should
provide mix of job opportunities that is lower and higher paid, flexible. Thus, accomplish
demand of different people belonging to segment that are student, middle and lower
ground individuals.
Economic factor: This component includes interest rate, growth, exchange rate and
inflation which depend on economic conditions of country. These are elements which affect on
funds of firm and its profitability. ZARA has store in developing nation that is UK and other
which have good inflation and GDP rate. Thus, company have good number of buyers to
generate revenue for their business (Gilboy, 2016).· Positive impact: United Kingdom has growing GDP which benefits ZARA to make
growth in their business.· Negative impact: Bank changes their interest rate for managing funds outflow which
affect on seniors of ZARA to expand firm to other nation.
8

Social factor: This element defines that organisation provide products and services for
fulfilment of needs and requirements of society. ZARA is retail firm which provide variety of
food items, personal care and other products to people.
Positive impact: In UK, people prefer to purchase products from supermarket where all
things are available in one store. Their buying behaviour has changed to buy quality items which
benefit ZARA to have good customer base to enhance sales volume and revenue (Li and et. al.,
2011).· Negative impact: UK population is collapsing which influence on labour force and result
into their shortage. This determines that management of ZARA faces problem in respect
to employees.
Technological factor: It is another component which determines that technology benefits
firms in conduction of operations effectively.
· Positive impact: In ZARA electronic machines are implemented in store which helps
buyers in billing process. Besides this, management is able to keep track of products on
outlet for utilising resources efficiently.
· Negative impact: With internet, there is development in E- commerce which affect on
sales volume and profitability of ZARA.
TASK 4
P5 Internal and External analysis to strengths and weakness of organisation
SWOT analysis is tactic which is used by management to examine competitive position
of firm. It is model through which strengths of system are analysed by seniors of ZARA for
utilisation of market opportunities. Weakness and threats are found to prevent them and reduce
from affecting business operations and market image (Zeng, Li and Duan, 2012).
SWOT Analysis of ZARA:
Strengths Weaknesses
· ZARA is famous trendy clothing firm
which provide quality items at reasonable
rates. They offer variety of products that
ZARA is at small scale and few chain
stores than other supermarket.
Company provide products at cheap
prices which determine that quality of items
are not so good.
· ZARA sell items at low rates, so company
profit depend on sales volume.
· Management is not able to pay adequate
9

are food, personal care and home appliances.
· There are nearly 10, 000 outlets spread
all over the world which help firm to have
large market reach and customer base.
· ZARA offers products at cheap prices and
discounts which helps management to
make business successful and sustain for
longer time.
salary to employees in respect to their
working. This produces dissatisfaction and
impact on their performance.
Opportunities Threats
· Management of ZARA require increasing
their spending in advertisement for
competing competitors.
· Enlarge store in other nations that are
Asia, Africa and many other.
· ZARA even require repositioning its brand
image more affordable than firm that
provide cheap items. This helps seniors to
enhance their business and revenue.
· H&M, E-Spirit and UCB are various rival
firms of ZARA.
· ZARA doesn’t provide all variety of items,
so buyers are not able to gain complete
shopping experience at one outlet.
· Government changes their taxation and
other policies which impact on business
of ZARA (Sekaran and Bougie 2016).
P6 Interrelation of Strength and weakness with external Macro factors
Macro environment factors helps management to assess their impact on firm and its operations.
ZARA is retail store which has outlets globally, so top personnel require analysing external
components effect on business. Strengths and weaknesses in respect to government, economic
aspects, public and technology are acknowledged which is described below (Meiners, Ringleb
and Edwards, 2014):
Political factor:
· Strengths: In UK, there is stability in political conditions which benefit ZARA to expand
its outlets worldwide.
· Weaknesses: Government of UK make changes in policies in employment legislations
that effect on management of ZARA in business.
Economic factor:
10

· Strengths: In UK, inflation helps ZARA to have good number of customers to purchase
products.
· Weaknesses: ZARA unemployment effect on prices and revenue, as people demand shift
to cheap items. For this, they will not prefer to buy products from different cheap store
(Zsambok and Klein, 2014).
Social factor:· Strengths: There is trend that people prefer to purchase items in bulk and from one shop
which benefits ZARA to enhance their sales volume.· Weaknesses: ZARA offers reasonable items which result into people mind-set that
product may not be of good quality.
Technological factor:· Strengths: In ZARA, buyers are provided high- tech experience and pay through card
which help them to make payment easily.
Weaknesses: E- commerce which is due to evolution of internet that effect on sales and profit of
ZARA (Chetwood and et. al, 2014).
CONCLUSION
From the above report, it has been concluded that public, private and voluntary are various
forms of companies. These are firms which have different size, scope, goal, structure and reason
of doing business. PEST analysis aid seniors to find positive and negative effect of large scale
condition factors on firm. SWOT analysis helps an organization to asses' qualities for using
public. Other than this, risk factors can be reduced with the help understandings the business
environment.. Hence, These are firms which have distinctive size, scope, goal, structure and
reason. Human asset, fund, activity, advertising, deals, innovative work are office which have
interconnection with one another. These units assist administration with following divisional
structure for execution of business successfully. Vermin examination helps seniors to foresee
positive and negative effect of large scale condition factors on firm. SWOT analysis helps
organization to asses' qualities for using openings. Other than this, competitive advantages can
be improved with the help of organization's market position and brand picture.
11

.
REFERENCES
Books and Journals
Chetwood, M. K. and et. Al, 2014. Transforming a legacy IT infrastructure into an on-demand
operating environment. U.S. Patent 8,775,232.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Gharajedaghi, J., 2011. Systems thinking: Managing chaos and complexity: A platform for
designing business architecture. Elsevier.
Gilboy, G. J., 2016. The myth behind China's miracle. In SEEKING CHANGES: The Economic
Development in Contemporary China (pp. 1-16).
12

Li, Q. and et. al., 2011. Towards the business–information technology alignment in cloud
computing environment: anapproach based on collaboration points and agents.
International Journal of Computer Integrated Manufacturing, 24(11) pp.1038-1057.
Meiners, R. E., Ringleb, A. H. and Edwards, F. L., 2014. The legal environment of business.
Cengage Learning.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
Saleem, M. A., 2017. The impact of socio-economic factors on small business success.
Geografia-Malaysian Journal of Society and Space. 8(1).
Tayur, S., Ganeshan, R. and Magazine, M. eds., 2012. Quantitative models for supply chain
management (Vol. 17). Springer Science & Business Media.
Türetken, O., and et. al., 2011, June. Enforcing compliance on business processes through the
use of patterns. In ECIS (p. 5).
Vaiman, V., Sigurjonsson, T. O. and Davidsson, P. A., 2011. Weak business culture as an
antecedent of economic crisis: The case of Iceland. Journal of Business Ethics. 98(2).
pp.259-272.
Wack, P., 2017. Shooting the rapids. Historical Evolution of Strategic Management, Volumes I
and II, 1, p.121.
Yu, W. and Ramanathan, R., 2013. Business environment, employee competencies and
operations strategy: anempirical study of retail firms in China. IMA Journal of
Management Mathematics. 24(2). pp.231-252.
Zeng, L., Li, L. and Duan, L., 2012. Business intelligence in enterprise computing environment.
Information Technology and Management. 13(4). pp.297-310.
Zsambok, C.E. and Klein, G. eds., 2014. Naturalistic decision making. Psychology Press.
Online
Business environment. 2018. [Online]. Available through:
<http://www.investorwords.com/19252/business_environment.html>.
13