Different Types and Purposes of Organisations

Business and Business
Environment

Table of Contents
INTRODUCTION ...........................................................................................................................3
TASK ..............................................................................................................................................4
P1 Explain different type and purposes of organisations like public, private, voluntary sector
and legal structures?....................................................................................................................4
P2.Explain size & scope of range of different types of organisations?.......................................6
P.3. Explain the relationship between different organisational function and how they link to
organisational objectives and structure ?.....................................................................................7
P.4. Identification of positive as well as negative impacts the macro environment has upon
business operation with the help of example?.............................................................................9
P.5. Conduct internal & external analysis of specific organisations in order to identify strength
and weakness?.............................................................................................................................9
P.6. Explain how strength and weakness interrelate with external macro factors?.....................9
CONCLUSION .............................................................................................................................10
REFERENCES...............................................................................................................................12

INTRODUCTION
Business includes an enterprise in which the activity related to industrial,commercial and
professional are performed by entity. Businesses can be non profit organisation or for profit
making purpose. NPO is operate to achieve the charitable mission and social purpose. Every
business has some business environment it can be defined as the collection of various internal as
well as external factors like requirement and desire of customers, supply & demand, employees,
clients, management, owners, government activities, innovative technology, market and social
trend, changes in economy etc. The main company that was selected in this project was Marks &
Spencer. It is a public company. It is a multinational retailer deals in selling clothing, food and
home products mostly of its own label. It has its headquarters in London , United Kingdom. It
was founded by Leeds in 1884 in UK
TASK
P1 Different type and purposes of organisations like public, private, voluntary sector and
legal structures?
Types and Purpose of company.
Public company is a type of organisation that are owned, manage & control by the
government. It give services and goods for the benefit and development of community. They run
their business with the money that is generated by them from public in the form of taxes. The
example of public company
Purpose: The persons who invest in this company become their shareholders. The main
purpose of this is to raise funds by issuing shares to the public.
Private organisations has private ownership and their shares are not listed in any stock
exchange. It is controlled and owned by small group of persons and entities. Dyson is the
example of such type of organisation.
Purpose: The main objective of the company is to earn maximum profit and protection to
personal assets, financial assistance, access to more resources and greater tax cuts are the main
purpose of the organisation.
Voluntary sector: It is non governmental non for profit purpose organisation as this is
also known as community sector. Oxfam is the example of such type of company.

Purpose: Their main objective is to ensure benefits to the public and enrich society as
profit earning is not the moto of such type of organisation.
Legal structure of organisation are:
Private Organisation
 Sole proprietorship: It is type of business that is control and owned by single
person and owner possess unlimited liability on the debts incurred by the
respective business
 Partnership: It this business is run and operate by two or more persons with the
aim of achieving objectives of the business and to earn maximum profit. Than
these profit are distribute among these partners on the basis of their profit sharing
ratio
 Corporation: It is for both non profit & for profit entity that exists as separate
legal entity from its owners. In this shareholders are the real owner of the
organisation who gives capital to the business with the purchase of stock of
corporation
Public company
 Central Government: In this at least 51% of the shareholding is held by the
central government.
 State Government: In such type of company 51% or more shareholding is held
by State Government.
 Local Government: It generally act according to powers delegated to them by
legislation of the higher level of government
Voluntary Sector
 Trust: In this trust or gives the trustee, right to hold title to property for the
benefits of beneficiary.
 In corporative Association: It is a legal entity that is registered for the purpose of
charity, recreational etc.