Different Types and Purposes of Organizations with Their Legal Structure

Business and business
environment

Contents
INTRODUCTION.................................................................................................................................3
TASK 1.................................................................................................................................................3
P1: Different type and purpose of organization with their legal structure..........................................3
P2: Explain the size and scope of a range of different type of organisation.......................................5
TASK 2.................................................................................................................................................7
P3: Relationship between various organisation objective and structure............................................7
TASK 3.................................................................................................................................................8
P4. Identify the positive and negative impacts the macro environment ahs upon business operations
...........................................................................................................................................................8
TASK 4...............................................................................................................................................10
P 5 evaluation of strength and weakness of organization through internal and external analysis.....10
P6 Explain how strengths and weaknesses interrelate with external macro factors.........................11
CONCLUSION...................................................................................................................................11
REFERENCES....................................................................................................................................13

INTRODUCTION
Business environment refers to the collection of shareholders like employee, supplier,
government, customer and technology that can affect the internal as well as external aspects
of the business. These factors influence the performance of business and provide desirable
insight in order to improve the operation and build successful strategy (Adeoye and
Elegunde, 2012). For the better understanding of report Starbucks company has been selected
that has leading multinational chain of coffee house. The company incorporate their business
in the year 1971 and has successfully delivered the services worldwide. This report cover
topics like explanation of diverse type and scope of an organisation and represent the
interrelationships between different functional areas. Further, analyse external factor which
either positively or negatively affect its operations. The strength and weakness needs to be
effectively studied in order to gain a sustainable performance.
TASK 1
P1: Different type and purpose of organization with their legal structure
Group of people work together to achieve the individual as well as organisational goal
happened in an organisation. There are 3 type of organisation which is discussed below:
Private organisation: These are the organisation which is started by the individual
and the motive is to earn profit. They contribute huge share to the economy and helps in
generating employment in an economy. Private companies have to follow rules and
regulations set by the government along with that they have their own policies and plan to
conduct the business with efficiency with addition to it they have their own ways to achieve
profits. The profit made by the private company is beneficial to its stake holders like
shareholder, owners, investors etc. Other than that business can also collaborate with public
bodies and the government to form a public-private company (Wetherly, 2014). Example of
Starbucks a private company in UK is taken here.
Purpose: The purpose of Starbucks is to achieve profit, sustain and grow. To follow a
culture and run business ethically helps entity to gain desirable reputation.
Legal structure:

Sole proprietorship: Under this a single individual run business and aim to achieve
profit for single person. Capital requirements are less in such type of business and profit and
loss is borne by the sole individual. No legal permission is required for such type of business.
Partnership: Limit of member is between 2-20 member. Partnership deed is prepared
under this which talks about profit share ratio, capital bought and various rules of the
partnership. Paperwork is required under this and it is time consuming in nature.
Corporation: It is started by the group of individual. The motive is to achieve profits
but it requires lot of paper works an agreement which ultimately turns into contract.
Stakeholder is the interested parties under this.
Public organisation: These organisation is owned and run by the govt and public
bodies. The aim is to render services to the citizen of the country. State, central and local
government runs this business in welfare of the country and its people. Even the funding is
raised by the government. National healthcare services (NHS)I is a public company in UK
which aims to work for social welfare by offering specialised services at reasonable prices
and earn revenue at the same time.
Purpose: Improving the economy of the country and spreading all the required
awareness to the public and helping the country to grow more. For instance, the purpose of
NHS is to diversify healthcare facility for the wellbeing of people belonging to diverse
category or income group without any discrimination between rich and poor.
Legal structure:
Central government: Its motive is to control and manage the resources of the
economy by helping the organisation to perform work properly. They have the power to
make rules and regulations in the benefit of the economy. Organisation who come under
central government need to take permission about all major things and need to disclose all the
important stuff.
State government: Some product and services are provided by state government only
so they share their power with national govt. also.
Local government: Requirements at individual level are identified by them. They
collect funds also by way of council tax.