Different Types And Purposes Of Organisations Pdf
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Added on 2021-02-19
Different Types And Purposes Of Organisations Pdf
Added on 2021-02-19
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UNIT 1: BUSINESSAND BUSINESSENVIRONMENT(RQF)
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1. Different types and purposes of organisations.......................................................................1P2. Size and Scope of different types of organisations................................................................2TASK 2............................................................................................................................................4P3. Relationship between different organisational functions, objectives and structure..............4TASK 3............................................................................................................................................5P4. Impact of Macro-Environmental factors upon business operations......................................5TASK 4............................................................................................................................................7P5. Internal and External Analysis of Specific organisations......................................................7P6. Analysing how strengths and weaknesses interrelate with external macro factors...............8CONCLUSION................................................................................................................................8REFERENCES..............................................................................................................................10
INTRODUCTIONBusiness Environment is an important aspect of how a business operates and performs. Abusiness environment can be defined as the sum total of both internal as well as external factors.Here, the internal factors include the internal stakeholders in addition to the customer needs,preferences, and supply & demand (Apăvăloaie, 2014). One the other hand, the external factorscomprise political, social, economic, environment and legal influences in addition to emergingtrends as well as innovations. This report aims to provide background knowledge of business,organisational functions, scope and structure using real world organization examples. Also, itstudies the impact of macro-environmental factors with an interrelation to an organisation’sstrengths and weaknesses along with other internal capabilities. For this purpose, Marks andSpencer's has been chosen which is a major multinational retail company, founded in 1884 byMichael marks and Thomas Spencer, that deals in clothing, home product and food items. TASK 1P1. Different types and purposes of organisationsAn organisation can be defined as an entity which is created to serve a particular purposeby an individual or a group of them. There are different types of business entities based on thepurpose they intend to serve. On the basis of this, an enterprise can be classified as Profit, Non-profit or a public sector organisation.A profit or commercial organisation is one whose primary purpose is to supplyproducts or render services and gain bottom-line profits from them. Most of the businesses areset up with a primary motive to earn returns from the activities undertaken by them over thecourse of their life (Bah and Fang, 2015). The chief examples of this type of organisations areusually public companies or private firms whose shares of ownership may or may not be madeavailable for general public subscription. Its legal structure includes sole trader, partnerships,cooperatives, public and private limited companies. Also, such firms are subjective to taxation onthe profits gained and rewards distributed among their shareholders whose rates largely dependon the economy they are set up in. For instance, Arcadia Group is one of the prime examples ofprivately-held retail businesses which were established with the sole purpose to earn high returnsor rewards by offering clothing line on the high streets of UK apart from owning department1
stores such as Debenhams and Selfridges. Arcadia's legal structure is that of private limitedcompany.Contrary to the primary purpose with which a profit or commercial organisation is set upby an individual or another entity, a not-for-profit enterprise is, as the name suggests, createdto wholeheartedly serve the society they are operative in. Unlike a profit organisation, thesecompanies do not focus on profit maximization and are mostly tax-exempted for thecontributions they make to the society as a whole (Botha, Kourie and Snyman, 2014). Hence,any revenues earned or surplus accumulated, are again invested into charitable works or projectsundertaken by such business enterprises so on and so forth. Its legal structure includes soletrader, partnerships, cooperatives, public and private limited companies. Voluntary association,trusts, funds and societies. The key aspects of a not-for-profit business are its accountability,transparency, openness and reliability towards its stakeholders, both internal as well as external,who provide their time, money and faith to such companies. One of the most exceptionalexamples of such organisations include United Nations Children’s Fund(UNICEF) that hasbeen established with purpose to provide humanitarian and developmental aid to children andmothers in developing economies. UNICEF's legal structure is that of a Fund out of all the legalstructures that comprise Not-For-Profit Organisations.Unlike commercial or not-for-profit organisations, a public sector organisation isowned as well as operated by the government with the sole purpose to serve the citizens of thatcountry (Cairncross, 2014). Also, these types of organisations are formed to further the fund-collection activities of the business which may usually be related to taxes and fees among otherthings. Its legal structure includes local, state, central government as well as public corporations.For instance, the Department of Works and Pensions has set up a Child Maintenance Service(CMS) in UK. For this organisation, the primary focus is to provide support to children whoseparents have separated due to one or the other reason. From the discussion above, it is clearlyevident that a profit making, not-for profit and public sector organisation can be distinguishedbased on their tax liabilities and purpose for which they are created. The legal structure of CMSis that of a delivery arm established by the central government itself.P2. Size and Scope of different types of organisationsSimilar to the types of organisations that are mainly classified on the basis of purposethey mean to serve, firms may also be segregated according to their size and scope. These2
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