Types and Purpose of Organizations in Business Environment

This document provides an overview of different types of organizations (public, private, voluntary) and their purpose in the business environment. It explains the legal structure and the relationship between organizational functions. The document also discusses the positive and negative impacts of the macro environment on business operations.

Business and Business
environment

Table of Contents
Introduction:.....................................................................................................................................1
PART 1:...........................................................................................................................................1
P1: Explain different types and purpose of the organisation , public, private and voluntary
and legal structure...................................................................................................................1
P2: explain the size and scope of the different type of organisation.................................1
P3: Explain the relationship between the different organisational function and how they link
to organisational objective and structure...............................................................................1
PART 2:..........................................................................................................................................1
P4: Identify the positive and negative impacts the macro environment has upon the business
operations...............................................................................................................................1
P5: conduct the internal and external analysis of organisation to identify strength and
weakness.................................................................................................................................1
P6: explain how strength and weakness interrelate with the external macro factors:...........1
Conclusion :.....................................................................................................................................1
References:.......................................................................................................................................1

Introduction:
The business environment refers to the internal and external factors which influence the
organisation operational activities. It also includes the customer , suppliers, clients which gets
affects by the change in environment in which organisation operates its task. These business
environment have positive and negative impact on the performance of the organisation. The
study of the business surrounding helps the organisation to make the effective strategies for the
growth and expansion in the international market place. Under this report, Crown prosecution
services is selected as the public organisation, Aston Martin as the private firm and
Oxfam as the volunteer organisation. There will be discussion on the scope and size of the
different organisation and examine the external and internal environment factors that affects the
organisation outcomes in the market place.
PART 1:
P1: Explain different types and purpose of the organisation , public, private and voluntary and
legal structure.
The organisation work in the environment so the firms needs to make effective research in order
to make the use of the available resources and opportunities in the most profitable manners.
Every organisation have different role in the market which helps them to offers the various type
of goods and services . (Dirican, 2015. )
Some for the effective organisation are stated as below:
Private organisation: here the organisation are working for the profits in the market and it
include the corporation, partnership and agencies and etc. These private organisation are non
government bodies and are controlled by the individual person. In this context, the Aston Martin
is the holding plc and British producer of the Luxury sports car and vehicles. Herein the
organisation work to serve the customer in larger number and earn the profits.
Purpose: the aim focus or the purpose of the Aston Martin is to provide the sports cars to its
customer present in the international market. It target the premium customer which helps them
to increase the market share in the market.
Legal structure: in the context of the Aston Martin they follow the hierarchy structure of legal
laws which helps them to complete the task in the most effective manners . the employees are
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working at their capabilities which helps the organisation to achieve the desire level of profits in
the market place.
Stakeholder: in the private organisation it includes customer , shareholders, employees as
stakeholder which affects by the changes in the work environment.
Public organisation:
Here the organisation is operated by the government bodies and offers their goods and services
to the target customer so that they can happy to help the people without taking profits from them
.in this context the Crown prosecution services is a firm to protect the criminal prosecution
action to the needful people present in the global market.
Purpose: Here the purpose of the organisation is to reduce the crime in the society which the
help of the police and government agencies so that better investigation can be conduct in the
market by collecting the effective information.’
Legal structure: this organisation has to follow the guidance given by the government in the
form of the rules and regulation so that communication can be better in the organisation and
effective measures can be taken. (Golicic,, Flint,and Signori, 2017)
Stake holders : al the financial and government bodies are included in the stakeholder of this
organisation. Their aim motive is to save the people and their future in the long run.
Voluntary organisation: Here the organisation is non-profit company working for the
betterment of the people. All the activities are controlled and manage by the government in the
organisation. In this context the Oxfam organisation which helps the overcome the poverty
problems in the nation and includes around 20 charitable trust to help the people.
Purpose: the focus of the organisation is to help them to fight against the poverty by provided
them necessary help. Here the firm provide various alternative solution to face the problem with
confidence.
Legal structure: here the happy society is made by having the trust on each other, having
different kind values which make the society a happy place to live. Here people work for
common goals and objectives and have to follow the different kind of laws and regulation.
Stakeholders: under this organisation, the volunteers, employees and owner of the organisation
are considered as stakeholder.
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Sole trader: he is a person who is a owned and controller of the organisation and earn the
desire level of the profit margin in the long run. Here the owner is not separated from its business
entity so that he is liable for all the liabilities and loses.
Partnership: it is business enterprise where two or more parties join together to run the
business to earn the profits and bear the loss in the long period. Here the partners are enjoying
the profits and have the take liabilities of the organisation.
P2: explain the size and scope of the different type of organisation.
Every organisation need to have effective and clear idea about the scope, mission and vision ,
objective and interest of the stakeholders so that organisation work according and achieve the
desire level of outcomes. The differences among the different type of organisation are stated as
below: (Koyagialo, 2016)
Private organisation: these organisation work for earning the huge profits in the market by
satisfying the demand of the customer at the international market places. With the references of t
the Aston Martin follow the proper hierarchy structure in their management to achieve the desire
results.
Background: The Aston Martin is known for largest manufacturing company producing the
worlds luxury sports car in the national as well as in the international market place.
Mission and vision: The organisation aim is to provide the effective sports car to its customer
and take the competitive advantage in the market place and build their brand name at global
market.
Sector: these organisation belong to the secondary sector of the market place.
Objectives: This organisation are working to satisfying the need and wants of the customer
present in the international places and enhance their market share.
Product and services: The organisation offers the different kind luxurious sports car to its target
customer in the market and also offers after sale services to the customer.
Size: The company works at the global market which helps them to increase their operational
activities across the global .
Scope: This firm are able to build strong brand name in the market which increase their scope of
new opportunities that will lead to better growth of the organisation.
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Structure: the organisation uses the functional structure which helps them to perform better in
the management level.
Public organisation: here the organisation are manage by the government bodies at the central
and state level and perform their task under the government agencies. In the context of the
crown prosecution services , working for the betterment of the society .
Background: This organisation is known for conducting the prosecution service in the England
place and help the people. They are made in the 1986 and having 7000 people in their team and
work to overcome the crime in the market.
Product and services: the organisation offer services to the people who need to get protected by
the crime.
Mission and vision: the firm provide safety tools to its people and focus on proving effective
strategies which make people save and happy.
Sector: this organisation fall under their primary sector industry.
Size: the organisation is working with large number of people so it have wide size.
Objective: to offer the tools which helps people issues of the organisation.
Scope: here the organisation scope is huge as they provide unique and good quality of services.
Structure: the Crown prosecution services have hierarchical structure format in their
management level.
Voluntary organisation:
Here the Oxfam organisation work with the 20 charitable trust for decreasing the level of
poverty from the organisation and in the society. It is known as best non-profit organisation.
Mission and vision: the aim is to reduce the poverty for the people so that they can live life
Objective: here the firm see that people are improving their standard of living in their respective
life.
Size: this company is growing day by day and having good number of workforce.
Structure: the Oxfam organisation uses the matrix structure in their organisation.
Scope: as the organisation helps the people to overcome their problems so the scope of the firm
is large.
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P3: Explain the relationship between the different organisational function and how they link to
organisational objective and structure.
The organisation have different department which work together to achieve the desire goals and
objectives in the most effective manners. These department have various function perform so
that task can be completed in the productivity ways and within the set time period. These
function are interrelated to each other and have affect on the organisation objective.
(Krawatzeck. and Dinter., 2015. )
Marketing and human resource: the human resource function is very important for the
organisation as it provide most skilled and knowledge employee which are able to perform the
all the task in the proper manners. The HR manager have a duty to conduct the hiring process so
that most qualified worker are chosen for the organisation and objectives can be achieved. The
Hr manager has to work with the marketing function so that organisation objective can be
achieve by make effective marketing strategies. In the context of the Aston Martin, the firm have
proper interrelation with these function so that task can be completed in effective manners.
Marketing and finance functions: The manager of the Aston Martin, focus on having effective
financial statement which will helps in making sound business decision which will help in
expanding their operational activists at the international by using marketing strategies in the
organisation. The organisation are able to balance in the management level with the help of
coordination among these two function:
Marketing and operational function: here the organisation have to plan its operational
activities in the systemic manner so that task are complete on time within the set time frame. In
the context of the Aston Martin, the marketing department work with the operational section so
that work can be performed in proper manners.
Organisational structure: it is system which is followed in the organisation so that all the
function in the management level of the firm are executed in the hierarchy from and information
is transferred in proper flow as that organisational mission and vision are understood by worker.
In the context of the Aston martin the organisation have flow of information in accurate way
which leads to better performances in the organisation.
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Divisional structure: this type of structure are followed by the larger organisation operating at
international market.
Functional structure : it is made in the organisation so all the department are working according
their objectives. (Shields, and Shelleman, 2015)
Matrix structure: it is combination of the divisional and functional structure which helps the
organisation to perform in better ways.
PART 2:
P4: Identify the positive and negative impacts the macro environment has upon the business
operations.
The macro environment are the external factors which are present in atmosphere of the
organisation where they are operating their activities in proper manners. In the context of the
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Aston Martin organisation examine the macro factors so that effective measures can be taken to
reduce the threads and make use of opportunities.
PESTLE analysis: it is tool and techniques used by the organisation to examine the factors that
can affected the organisation profits and productivity .
Political factors: under this factor, it involves the labour laws, employment laws, political
instability which have impact on the performances of the Aston Martin in the target market as
government imposed various laws on the organisation to save the customer from any kind of
crime.
Positive : In the UK market, the political condition are stable which lead to growth of the
organisation at the international market.’
Negative: due to the Brexit, the organisation have to follow the trade laws which delay the
performance.
Economical factors: it is factor which includes the different rates, such as exchange rate,
inflation rate, interest rate, foreign exchange rate . in the context of the Aston Martin the
organisation activities gets affected by the changes in this rates occur in the market.
Positive : the exchange and foreign rate make the organisation function to perform in better
ways to achieve the objective.
Negative: increase in the inflation rate will reduce the purchasing power of the customer and
lead to lesser profits for the organisation in the long run.
Social factor: here the customer background, their brief system and assumption , taste and
preferences are included. With the references to Aston Martin the organisation offers its product
and services according to the needs of the customer and as per their lifestyle.
Positive : the organisation provide the luxury cars according to the demand of the customer
which helps them to expand their business.’
Negative: there are many organisation offering the sports cars which can affect the performance
of the organisation.
Technology factors: it involve the advance technology which Make organisation work easier to
execute in the market. Here new methods are used , innovative ideas so that work can be done in
the most effective manners.
Positive : the Aston Martin organisation uses advance technology to produce the best sports car
for its customer which increase their market share in the international market place.
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Negative: as it involved lot of cost for using the technology in the organisation which can be
issue of the organisation.
Legal factors: here all the government legal laws and regulation are stated such as
employment law, consumer and safety law for the worker . the manager of the Aston martin,
make sure that proper rules and laws are followed in the organisation for smooth functioning in
the firm.
Positive : the employees of the organisation can stay longer with the firm and work for the
common objectives which are to be achieved in time.
Negative : the organisation have to follow the different laws which affects their outcomes and
are not able to attach more customer.
Environment factors: organisation uses different environment resources to produce its goods
and service so they can use in renewable resources so that next generation can also use these
resources.
Positive: the organisation will use the resource which can be recycle in the market and reused
by the organisation.
Negative: the firm use various raw material which can not save for the another organisation and
harm the environment of the firm.
P5: conduct the internal and external analysis of organisation to identify strength and
weakness.
The SWOT analysis are used by the organisation to examine internal factors which affects the
productivity and outcomes of the organisation. These factors are present in the environment of
the organisation as strength and weakness and some on the external environment in the form of
opportunities and threads. In the context of the Aston Martin , swot factors are discussed as
below: (Peters, Blohm and Leimeister, 2015)
strength weakness
 Aston martin is known for the world
class luxury cars which are unique in
the international market which helps
them to achieve the desire the outcomes
 Aston martin are working in different
car sector apart from providing the
luxury sports car , which affects their
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in effective ways.
 This organisation also follow various
laws which are state by government so
that they can work at global place.
business in the market.
 Sometime premium customer are
provided with goods and ignore the
another segment market
opportunities Threads:
 As the Aston Martin are able to build
their brand image in the market which
helps them to expand their business at
the different location in the
international market places.
 The organisation can use the new
technology to produce its goods to
attach more customer to the firm
product.
 There are huge competition in the
market place which delay the outcomes
of the organisation in the market.
 To make luxury sport car it required
large amount of cost which reduce the
profit margin for the organisation.
P6: explain how strength and weakness interrelate with the external macro factors:
Examine the macro environment factors helps the organisation expand their business at the
international market place at the larger scale. And these factors are interlinked with the strength
and weakness of the firm which are discussed as below:
Political : The Aston Martin perform its activities in the most stable political condition of the
UK which helps them to execute all the task in the effective and efficient manners. The make
goods and service according to the demand of the customer.
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Strength: here the Aston organisation gets better opportunities where they can operates their
activities in the proper manners. (White, 2015. )
Weakness: Brexit have create threads for the organisation in expanding their business at the
global market place. Lot of company have separate from the Aston Martin which were the
supply of cars function was carried out.
Economic: due to the slow economic situation in the market , the business activities of the
organisation gets affected and productivity is reduced in the management . the economic factors
play the important part in the enhancing the performance of the organisation.
Strength: some place have stable economic which helps the organisation to grow their business
at the different location and earn the profits. The organisation can coordinated with the another
organisation to control the task in better ways.
Weakness: if government make the changes in the rates which can harm the organisation task
and activities and they need to modified their polices according to the present condition.
Social factors: the organisation needs to produce the goods according to the demand of the
customer, as different customer have various taste and preference which also keeps on changing
with time.
Strength: Aston Martin organisation have a premium customer who wants to purchase the
luxury sports cars even at higher prices which leads to more profits for the organisation and areb
able to make goodwill in the market. (Wirtz. and Daiser,2017)
Weakness: organisation operates at the global market so it become difficult for the organisation
to find out the taste of the customer present in various part of the world.
Technology: here the organisation focus on using the new and innovative technology to control
all the activities in the most profitable ways so that production task can be completed with the
proper manners.
Strength: Aston organisation uses new electrical technology to make the world best sports cars
so that customer gets attracted towards the organisation goods.
Weakness: these technology keeps on modified which make uncertain for the organisation to
keep on using different method of production.
Legal factors: As the organisation work at the global market so they have to follow different
laws according to the location to perform in particular manners.
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Strength: these legal regulation helps the organisation to execute their task in the most effective
manner at different places.
Weakness: the firm have to invest lot of money and time to follow these legal regulation at
their work place.
Environment factors: these factors provide the resource to the firm to perform their task in the
most proper method.
Strength: the social responsibilities towards the people helps the organisation perform better in
the market place.
Weakness: these factors are available in the limited amount if ones used cannot be renewed by
the organisation which reduce the natural resources.
Conclusion :
According to the above discussion, it can be stated that business environment have essential part
in achieving the organisation goals and objectives. There are external and internal environment
factors which affects the outcome of the organisation in the market. There are various type of the
organisation in the market having different purpose to fulfil in the market. Macro factors helps
the organisation to understand the atmosphere where the company perform its activities and
tries to achieve the desire outcomes.
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(
(Dirican, 2015. )
(Golicic,, Flint,and Signori, 2017)
(Koyagialo, 2016)
(Krawatzeck. and Dinter., 2015. )
(Shields, and Shelleman, 2015)
(Peters, Blohm and Leimeister, 2015)
(White, 2015. )
(Wirtz. and Daiser,2017)
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