Understanding the Types and Purpose of Companies in Business Environment

This document provides an in-depth understanding of the types and purposes of companies in the business environment, including voluntary, private, and public sector companies. It explores the interrelationship between various organizational functions and how they connect to the organizational goals and structure. Additionally, it offers a critical analysis of the complexities involved in different types of businesses.

Business and business
environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P.1. Describe various type and purpose of company in context to voluntary, private, public
sector along with legal structure?...........................................................................................3
P.2. Explain the size & scope of different forms of organisation?.........................................5
TASK 2............................................................................................................................................7
P.3. Provide description regarding relationship between various organisational functions and
also explain how these are connects to concern goals and structures?..................................7
M2. Analyse the advantages and disadvantages of interrelationship between organisation
functions impact can organisation structure ?........................................................................8
D1. Provide critical analysis complexities types of business? ...........................................9
TASK 3............................................................................................................................................9
P.4. Identify macro environment positive and negative impact on operation of business with
the help of giving specific examples?....................................................................................9
TASK 4 .........................................................................................................................................12
P.5. Perform internal as well as external analysis for particular organisation along with
identifying strength & weaknesses?.....................................................................................12
P.6. Describe how Strength & weakness interrelate with external macro factors?..............13
D2. Critically evaluate the impact about the both macro and micro where factor that business
objective decision making. .............................................................................................14
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Business involves an activity in which selling, purchasing, marketing, sales promotion,
accounting, recruitment is done with the help of Human assets. On the other hand Business
environment are linked to internal as well as external environment. Business environment are
concerned to audience requirements as well as expectations, workforce, employer, clients,
demand & supply, government activities, technological innovation , economic variations, market
trends etc. with the help of various models or theories both external and internal environmental;
conditions are analyse. The organisation that selected in this project is NHS( public company),
Dyson( private organisation), Oxfam ( as voluntary firm).In this project various topics are
discuss in details such as different type, size as well as scope of company, Interrelationship of
different functions with in an organisation and how these are connected to organisational
structure. Both negative and positive impact of macro environment on business operations are
explain in description. Strength and weakness of particular business and how these are
interlinked with external environment are describe in this report (Brennan, 2020)
TASK 1
P.1. Describe various type and purpose of company in context to voluntary, private, public sector
along with legal structure?
Public company: It includes such type of companies whose share are listed on different
stock exchanges and trading of these share s are held continuously. In every public company
there is at least two directors who make control over the affairs of the company. It may or may
not be owned by government. For example NHS.
Purpose: The purpose of public company is to share the profits among the persons who
have bought shares in public stock exchange on which it is listed.
Legal structure
 Local government: These are local councils that are made up of councillors as they are
elected by public in local elections. Municipalities are cover under it.
 State government: These companies are regulated by SG and benefits are provided
according to provisions and law that prevails in the state. The appropriate controlling
authority in such companies is state government.

 central government: In this CG is responsible to make control over the operations of
business. The organisation which comes under central government, than all the benefits
and salary are given as per provisions of CG (Quinlan, 2019)
Private company: It is those concern which are not public company as these are not
listed on any stock exchanges. It is owned by non government bodies. The word pvt. Ltd must be
written in the end of their name. It may be in the form of partnership, corporation, sole
proprietorship etc. Dyson is one of this type of company.
Purpose: The main objective of private business is that to earn maximum profit, creates
monopoly in the market, develop brand value to the business and also to rule some specific area
and try to capture large audience (Halbert, 2020 )
Legal structure
 Partnership: It is legal form of business operation where partnership deed is prepare by
two or more partners in which ratio of contribution and profit sharing are written. In this
liability of their members are unlimited. Personal liability is major concern in it. It is
registered in Partnership Act.
 Sole proprietorship: It is such type of business where an individual is responsible for all
the liability. It has only one member who has full control over the affairs of the business.
No deed or contract is require in that form of trading. In this all the risk as well as profit
are bear by single person who is owner (Froese, 2019)
 Limited Liability Partnership: It must take registration under LLP Act. It involves
partners as well as designated partners. In this liability of partners are limited. As it has a
features of both company as well as partnership. Memorandum and articles of association
must be prepare in it.
Voluntary company: It is that type of company whose main object is to improve
standard of society as it involves NGO, not for profit making company etc. These companies are
registered under the relevant act. It is registered in the name of trust , society, etc. As Oxfam is
the example of voluntary organisation.
Purpose: To contribute towards society as well as protect the interest of audience and to
seek better fulfilment social causes types activities.
Legal structure

 Unincorporated association: In this form of of organisation two or more person come
together for some specific purpose but not follow formal structure. Few examples of
these are societies, clubs , NGO etc.
 Trust: It shows fiduciary relationship where trustor gives trustee , the right to hold title to
property for the benefit of beneficiary ( third party). To open trust registration must be
done or trust deed is to be prepare (Arnold, 2019)
P.2. Explain the size & scope of different forms of organisation?
Every organisation has different type of business so their sizes , location, workforce ,
current capitalisation, revenues, manner of operations all are differ for every company. Three
type of firms that are generally present in the market are explain with their scope and size as
these are describe in context to organisations as these are as follows-
Basis Private organisation Public organisation Voluntary
organisation
Size It has around more
than twelve thousand
workforce globally.
The organisation NHS
engaged 1.4 million
employees so it tends
to be manage properly
in effective manner.
Oxfam have approx
ten thousand staff
around fifty thousand
volunteers and interns
who are fighting
against inequality.
Scope As the brand deals in
many household
appliances such as air
purifier, blade less
fans, hair dryer,
heaters, light etc. As
Dyson announced
significant expansion
programme` by
As it provide large
range to health care
services. Their
department provides
health care products
and medicines.
scope is to having
better presence of
social development to
maintain high structure
in society

opening new high tech
campus.
Structure It includes partnership
structure in context to
chosen private
company.
As it is public ally
funded health care
system in United
Kingdom
It has around 93 NGOs
in different locations
which serves their
services for
development ,not for
profit making purpose.
Product/services The brand deals in
wide range of product
for example vacuum
cleaner, hair dryer,
heaters etc . Their
products are available
at affordable prices
The famous
recognition of brand
deals in healthcare
items and services.
It is worlds mosat
respected charities
whose aim is to tackle
poverty (Belás, 2020)
Vision To provide as well as
maintained integrated
& cost effective
products so that
customers can afford
product and satisfy
their needs.
To create partnership
between clinicians and
b patients so that they
can make available
good health care
services in various
location of country
Oxfam, IBIS is
working for a just
world where all have
equal access to
education and
combates poverty &
inequality.
Mission Their mission is to
motivate as well hire
new generation smart
engineers (Kemper,
2019)
To make those type of
products that improve
audience life in
community.
To defend poor people
interest and to find
intelligent solution to
overcome issues that
causing poverty and
global economic
inequality.
Objectives To design machines Implementing Their main objectives

which is not getting
obsolete and run for
long term.
electronic record of
patients and must be
good and beyond in
context to responsive,
caring, safe etc.
is to eliminate
injustices and poverty.
So that standard of
public is tends to be
improve.
TASK 2
P.3. Provide description regarding relationship between various organisational functions and also
explain how these are connects to concern goals and structures?
In every company there are different department and every unit perform unique functions
so that business operations run smoothly in profitable manner. such as organisation structure
tends to provides overall specific business structure which allows different objectives within
distinct activities on product for project as well as in order to accomplish towards goals for an
organisation. These activities can include rules, roles and responsibilities.
HR and marketing: Human resource department are responsible to appoint suitable
candidate to fill the the vacancy for that they tends to perform various functions related to
recruiting, selection, training & development programme, motivating, performance appraisal etc.
On the other hand marketing managers formulate various strategies for the purpose of promotion
to create brand awareness among public so that tends it attract large audience and convert the
activity into sales.
The work of both different units are interconnected to each other as marketing is not
become possible without smart marketing manager or team. And they are appointed by HR
department of Dysons by analysing the skills , experience and knowledge of candidate
(Budhwar, 2019)
Finance and purchase department: All the financial transaction related to purchase and
sales are recorded and than accounting is done by accountants on the basis of supporting
documents like receipts and vouchers. And purchase department plays a very crucial role in
every business because it is the responsibility of purchase head to buy material on time so the
problem of under stocking as well as shortage of material is not prevails (Palepu, 2020)

Activities in both department are interlinked because accounting is possible only if proper
receipts are available from purchase department , also than only it reflects true financial position
of cash and for procurement purpose, Dyson taken funds from finance unit in this way both are
interconnected to each other.
Production & sales unit: manufacturing department after following the process convert
raw material into finished product and after that they transfer the produced item to sales
department so that with the help of sales person these items can be sold. Sale unit of Dysons
perform the activity of selling through promoting their products in the market. If sufficient stock
are available than only sales become possible. In this manner both are interdependent to each
other for smooth functioning of business operations (Godelnik, 2019)
Functional structure: The organisation is having common structure are implemented for
operation management. This is also refers to as referred bureaucratic organisation
structure and partition between company is having specialised towards implement for its
work force that helps to attain business related structure to implement as functional
manner.
 Divisional Structure: This is second type where common type for large companies
towards business units where it called for divisional or multinational structure a
company for assort that product base to better operates from subsidiaries factor .
Example within company that appears that itself for business for operates its owns
company with its own managers(Kotabe, 2020)
 Flatarchy structure: it is structure where is third for used in among many start-up that
requires to having command for its employees that autonomy that leads by single one.
 Matrix Structure: As per this is final stage that highlight matrix structure. It is also for
most confusion term and least assorted. This structure employees across different
superiors, division or department that enables for employees working matrix company.
For example , may have duties to regulates customer and services in positive outcomes
M2. Analyse the advantages and disadvantages of interrelationship between organisation
functions impact can organisation structure ?
Every business has different type of organisational structure and also there are so many
department exist in the company and all the activities that are perform in different departments

are interlinked with each other. As these are beneficial for business but it has some merits and
demerits also. As divisional structure are follow in the organisation Dyson. For example finance
department are interlinked to purchase department their advantages and disadvantages are as
follows-
Advantages-
 It allows better accountability and also help to ascertain cost and after that design profit
and loss (Trevino, 2021)
 It tends to increase the spirit of coordination and corporation among workforce of
different departments.
Disadvantages-
 Delay in one activity of specific department affects the work of another unit also because
they are interdependent to each other.
 It also increase the chances of conflicts and bias among employees of different
department. Because staff of both departments think themselves superior ( Holloway,
2019)
D1. Provide critical analysis complexities types of business?
In the organisation there are many departments and each unit has different function to
perform but all the departments are interlinked to each other. In context to company like Dyson it
has many units such as finance, marketing, production, sales, purchase, IT , HR etc. If member
of any department not perform properly than it tends to make impact on other department
performance also because all the activities are interconnected with each other (Al-Surmi, 2019)
TASK 3
P.4. Identify macro environment positive and negative impact on operation of business with the
help of giving specific examples?
An External environment is set of situation or factor which is connected to provides overall
information related with regarding business environment. It creates to make effect positive effect
for analysing challenges as well as opportunities for attaining as per positive towards control the
dimensions such as society and other business segmentation allows political to legal aspect
highlight that creates an impact on business regulation (Bharwani, 2019)

By using Pestle Analysis is helps to understanding to investigate optimised to external
environment which tools that assort to identify the macro environment scanning opportunities
and challenges
PESTLE of NHS
Political: NHS is affected due to Brexit. As a public company , separation from
European Union will have great affect on their functioning capacity. Non availability of
resources are the main problem that are faced by the organisation. As the brand, shipping various
medical equipment and different types of medicines from different locations of EU but due to
Brexit trade will totally disrupt. Lack of human resource are the another challenge that are faced
by NHS because large workforce are originated from outside London so Brexit make negative
impact on NHS.
Economic: Due to various unfavourable economic regulation , NHS under pressure to
make reduction in staff salaries. As a result large number of staff members resigned from the job
and skilled personnels are replaced by less experience employees as it shows that NHS fails to
perform the business at same level. Due to crash company faced economic burden.
Social: At rapid range, average age of United Kingdom population is tends to increase.
As growing age tends to come with different type of health issues. As it become so difficult for
company to provide good & quality treatment to growing number of cases ( Arieftiara, 2019)
Technological: Modern machinery like complex scanning system have become staple in
all hospitals outside UK . NHS use technological advancement to give speedy and quality health
care services to their patients. The introduction of advanced and new technology leads to develop
medical education system. As it impacts positively because it tends to make available skilled
staff and these experience staff able to deal the problem.
Legal: ell Patients family members who are not satisfied with the level of care that are
provided by NHS are tends to tends to take related grievances on legal platform. As development
in services by using advanced technology as was educated staff, the legal courses that seeks by
patients can be brought down.
Environmental: As medical industry is great contributor to toxic waste which is
collected in all over the world . Due to current crisis situation which is most commonly faced by
the climate, there is heavy pressure on medical organisations. NHS aim to better their waste
management system so that they can easily overcome with global crisis.

PESTLE of Dyson
Political: Government is expected to go through some unstable condition , that make
impact on Dyson business as if affect their supply chain, production cost and their sales also.
Economic: factors like growth rate, exchange rate, interest rate cam make impact on
business operation of the company Dyson. If in certain country growth rate is high that it leads to
create good business to Dyson which indirectly increase expected sales of the company. On the
other hand if in economy inflation rate is high that it tends to reduce the purchasing power of the
audience which results as that there is reduction in the sales and revenue of Dyson which tends to
increase chances of business failure. As Dyson is high end product so customers buying power
can either be increase / decrease the business in certain market.
Social: As the organisation dyson has been very consistent with regards to providing
different types of innovative technologies for the purpose to satisfy the desires of their clients . In
global market if customer of any market location are unaware about technology which was
choosen by company Dyson , that tends to make negative impact on sales as this type of business
environment is not effective for their business. Thus in the country where customers and lifestyle
of audience are matches with products that are offer by Dyson than their revenues and sales are
leads to increase.
Technology: As Dyson is concern regarding innovative technology and to increase their
sales , revenues it is necessary for the company to adapt advances and latest technology so that
they can easily compete with their competitors and to become head of their rivals. Thats why
large amount is invested by them in doing research. It tends to attain good reputation for their
brand which indirectly make positive impact on sales also. Which leads to raise revenue of the
company also.
Legal: It is related to laws , legal provisions , acts. As Dyson deals internationally so it
has to follow all relevant laws which are applicable top it . It cover laws in context to trademark ,
safety laws, patent, employment laws , laws based on equality etc. As it supply their items
globally so there is need to follow the rules of that country where it operate their business and if
any default is made than it attracts high penalties, fines and punishments which reduces the profit
margin of company because large part is paid as tax or fine.

Environmental: audience are being aware and so concern regarding environment and
Dyson develop & provide products which are involved for the purpose of cleaning. By giving
more information about their item and also investing in projects including ecological investment,
smart managers of dysons by creating more awareness attract large audience and results to
increase sales and profit margin.
TASK 4
P.5. Perform internal as well as external analysis for particular organisation along with
identifying strength & weaknesses?
Strength Weakness
 high quality- Product of Dyson are
designed as well as manufacture with
great care. Their items posses high
quality and all care is considered that
every items are goes through a quality
check.
 Huge number of employees : There are
around twelve thousand workers are
engaged globally. Every individual in
company contributes to product
success.
 High price- As compared to their
competitor prices of Dyson product are
quiet high which results as to lose
customers.
 Attract law suits- Dyson had sued
Amway for copying its design and in
few more controversies Dyson involved
that tends to spoil their reputation.
Opportunities Threat
 Global expansion: If Dyson expand
their production and sale the product
across the country than it see so many
opportunities for business growth.
 Online Presence : It provides their
customers ability to purchase online
from multiple retailer.
 Availability of competitor product at
low cost as it make negative impact on
business of Dyson because their items
are little costly as compare to their
competitor.
 Threat of market fluctuations in
London As it is always face by the
company.

SWOT of NHS
Strength
 It maintain healthy relationship with different partners of health community.
 AS NHS do not have any real competitor so it's a great strength for it.
Weakness
 Attitudes and behaviour of some staff members are so bad towards their clients
 AS due to increment in the number of population it is not possible for NHS to cope up
with demand which results to high waiting duration for the patients.
Opportunities
 NHS has great opportunity to expand business with doing joint venture and partnership
with voluntary as well as private sector.
 It has opportunity to raise NHS profile by using smart and innovative strategies of
marketing.
Threat
 Great threat are faced by company regarding workforce turnover as for any business
human resource are the precious element.
 Deficiencies in the work of contractors make negative impact on the image of NHS so it
great threat faced by business.
P.6. Describe how Strength & weakness interrelate with external macro factors?
 Political
Strength- As political scenario is so stable in United Kingdom and the policies that were
generated in UK reflects positive outcomes.
Weakness- Due to reason of Brexit , market as well as variation in policies creates a
liability to make alteration in the provisions and norms of the company.
 Economical
Strength- Due to reduction in the VAT rate from 20% to 18% tends to reduce the price.
Weakness- The inflation rate is leads to increase in United Kingdom that tends to reduce the
purchasing power of audience which make negative impact on business also.
 Social

Strength-In United Kingdom different trend, lifestyle and culture are followed by different types
of people of different localities.
Weakness- There are different people who follows different trend that leads to create
competition.
 Technological
Strength: Advance smart technology is used to maintain the records of sale so tends it tends to
provide quality services as well as to ensure accuracy.
Weakness: Advance technology utilise heavy cost which tends to increase expenses.
 Legal factors
Strength:As the laws that formulate by the UK government are is favour to workers and
employees of the company which affects positively in the business.
Weakness: On the other it attract high penalties and punishments if any company and employer
do any default with regards to provisions.
 Environmental
Strength: Due to rising in the population the demand of product of Dyson are also increase which
affects their business positively.
Weakness: Due to natural calamity or some pandemic leads to increase the chance of business
failure.
D2. Critically evaluate the impact about the both macro and micro where factor that business
objective decision making.
For every business it is necessary to analyse both micro and macro environment because
by understanding micro environment, organisation can easily find out their strength and
weakness. As Company can eliminate their weakness with the help of their strength as it supports
to achieve goals and objectives of the firm. On the other hand it is the responsibility of marketers
of Dyson to observe all the external factors like political , social, environmental, legal,
economical, technological so that it become easy to understand what factors affects the business
most in favourable and unfavourable manner. After analysis managers of the company formulate
policies and frame smart strategies to overcome with the problem and easily achieve the targets
of the company in most effective and efficient manner which leads to increase the chances of
business growth and survival.

CONCLUSION
After deep study and analysis it is conclude that every organisation whether private,
public, voluntary must consider internal and external factors that are present in the organisation
to survive in the competitive market. As it is the responsibility of organisation to design such a
structure that gives benefit to all employees, stakeholders, top management , audience etc. On the
basis of public private and voluntary companies are apportioned. According to their features
organisation are classify.

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