Understanding the Types and Purpose of Companies in Business Environment

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