Types and Purpose of Organizations

This report explains the different types and purposes of organizations, including public, private, and voluntary sectors. It also discusses their legal structures and how they relate to organizational objectives and structure. The report focuses on Dyson, a British technology manufacturing company, and its role in the business environment. It also explores the size and scope of various organizations, such as Crown Commercial Services and cancer research funds. Additionally, the report examines the interrelationship between different organizational functions, such as marketing and research and development.

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain different types an purpose of organizations; Public, private and voluntary sectors
and legal structures.................................................................................................................3
P2 Explain the size and scope of a range of different types of organisations........................6
TASK 2............................................................................................................................................9
P3 Explain relationship between different organisational functions and how they link to
organisational objectives and structure..................................................................................9
TASK 3..........................................................................................................................................11
P4 Identify positive and negative impacts the macro environment has upon business
operations supported by specific examples..........................................................................11
TASK 4..........................................................................................................................................13
P5 Conduct internal and external of specific organizations in order to identify strength and
weaknesses...........................................................................................................................13
P6 Explain strength and weaknesses interrelate with external macro factors......................14
CONCLUSION............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business environment is defined as collection of all the internal and external factors
which involves customer, suppliers, government, employees, market demand or supply and
many more. Business environment is very essential to analyse as this is helpful in meeting
expectations of customer in a very prominent way so as to earn high revenue and goodwill in
marketplace. This report includes all the aspects of business environment along with the
company Dyson. Dyson is a British owned technology manufacturing company which is leader
in manufacturing household electronic appliances. One section of this report several
organisation in which size, scope and legal structure along with their interrelationship within
organisational functions which is helpful in attaining business objective in prominent manner.
Along with this aspect organisational structure is helpful in achieving long term sustainability
so as to provide the business high end market stability. Furthermore the report is enlightening
positive and adverse impact of macro environment on the business functions. This is helpful in
recognising strength and weaknesses of the business and those factors which are directly related
to the external factors as well so as to achieve long term sustainability and profitability
(Prajogo, 2016).
TASK 1
P1 Explain different types an purpose of organizations; Public, private and voluntary sectors
and legal structures
Private organisation
This is defined as the type of business which is getting controlled by a single person or
the group of persons. There are various ownership types within this such as sole proprietorship,
partnership firm or company. This sort of business organisation is working for earning high
profit and market share by rendering satisfactory services and products. In the context of Dyson
the company is dealing in manufacturing of house appliances in which they are proving best
example of this business organisation.

 Purpose: The main purpose of this business organisation is to earn huge profit by
rendering their services and product to customer and meeting their needs by business
offerings. They are highly focused on offering something unique to their customer in
order to attract them in a very prominent manner. For instance Dyson is continuously
innovating their products and offering new features to them so as to maintain and
sustain their customer base (Brandsen and Honingh, 2016).
 Legal structure
 Sole proprietorship: This legal structure is defined as the structure in which
individual is having whole and sole control over the business and sole authority is
being executed by a single person. Within this less legal implications are imposed by
which profit and risk is beard by a single personnel. Example of this structure could
be carpenter, beauty salon and many more.
 Partnership: This is handled by more than one person forming an agreement of
partnership so as to execute business functions in effectual manner. There are various
norms which are included in partnership agreement by which effective operation can
be carried out. Within partnership agreement rules pertaining to profit sharing and
capital has been included.
 Company: It is associated with two terms in which public and private sector. When a
company is gathering funds form public then this type of company is called private
company and if funds are gathered from private sources then this is called private
company. The major objectives of both the company is to earn profit and to provide
revenue to their shareholders. For instance Dyson is a privately held company.
Public organisation
This sort of organisation is working under governmental supervision and they are
benefitting public organisations and various societies. This kind of organisation is providing
high advantages to public and society. For instance crown commercial is known as best
example of this type of organisation.
 Purpose: The major purpose of public sector business it that these are having assistance
of government in order to render societal welfare. This is the way by which profit are
earned by them. In the context of Crown commercial services accounting services are

given so as provide assistance to the business of managing their sales and purchase
activities and tax can be saved thereon.
 Legal structure
 Local: This sector is having high responsibility for rendering welfare to the
society and people by which governmental orders are required to be followed by
them.
 State: This structure is responsible for providing welfare to state people and for
that governmental laws are followed by them (Pratt and Yezierski, 2018).
 Central: This is a high power authority in which all state and governmental
controls are hold by them such as society, state and local. Within this crown
commercial services are providing services at central services.
Voluntary organisation
These types of associations are deliberately serving society for major purpose of
catering society for some good cause. These associations are helping the society to rise in a
proper manner by which they save society in ample way. For instance cancer research
association are running their organisation in order to provide support to cancer patients and they
are running campaign for helping them by providing and satisfying money and other needs of
cancer patients.
 Purpose: The main purpose of these organisations is to provide and enrich society
people high assistance and serve them for a good cause for societal upbringing. In the
context of cancer association they are operating in order to reduce cancer patients and
helping needy cancer patients.
 Legal structure
 Trust: These are defined as the legal structure in which they are highly accountable
for their management and operation as well. As they are indulged in providing
benefits to the society so money and research expenses are to be traced by them in
proper format.

 Unincorporated associations- This type of structure is formed to fulfills the
objectives of the societies. in this people are work as per their mutual interest so that
they can solve the issues related to the people of societies.
Difference between profit, not for profit and non governmental organisation
Basis Profit organizations Not for profits
organizations
Non governmental
organizations
Meaning It defines that
business venture
which is working for
earning profits in lieu
of providing services
and products to the
customers. In this to
get the ownership
shareholders can
purchase the shares
and follow legal rules
and regulations so
that can earn more
and more profits.
This type of
organisation is not
working for the
profits. in this they
collect funds from the
investors and also
they maintain the
transparency within
the firm so that
people can trust on
them(Kasemsap,
2018).
This type of firm is
working not under the
government
supervision but they
are privately held or
include clubs. In this
people are working
with volunteer nature
for welfare of society.
Scope This type is working
for earning the
revenues on the large
scale.
These are working for
providing the welfare
of the public and
solve the issues
related to the society.
This includes the
larger scope related to
success of the society
without the help of
government.
P2 Explain the size and scope of a range of different types of organisations.
Dyson

Dyson is one of the most prominent business organisations which is manufacturing
household appliances and having high revenues in their business organisation and this is the
major reason by which the company is maintaining market share and known as largest
electronic manufacturer in UK (Wickert, Scherer and Spence, 2016).
Purpose of Dyson: The main purpose of Dyson is to increase their sales of their product
offerings by rendering high tech appliances to their customer. They are providing best
engineering technology in their appliances and along with this they are using low harmful
emission in their product and attracting huge customer base and making distinct image in
marketplace. The company is making high electric efficient appliances in which they have
made very robust customer base.
Goods and services offered: The company is manufacturing household electronic appliances
such as hand dryers, purifiers, fans, curler, hair straightener, heater and many more. Dyson is
renowned company for manufacturing motors and by which company is earning high profit and
revenue.
Profit and market share: The company is having more than 12000 employees and they are
dedicated for the company and helped them to earn more than 50% of overall market in UK.
Net worth of Dyson is near about £ 1.1 billion and revenue is near about £ 4.4 billion.
Scope and size: The Company is operating their business at giant level and renowned company
in the industry of electrical household appliances. By which company is having huge customer
base and enjoying very high amount of profit thereon.
Crown commercial services
This is an executive agency which is undertaken by cabinet government office of UK.
The company is basically a fund based trading organisation which is involved in management
of common products and services which is enhanced due to saving of taxpayers. This is helpful
in executing prepared policies in which government is having their control.
Purpose of CCS: The main purpose is to enhance benefits of central government in which they
are providing benefits to society peoples in order to solve their queries regarding common
product and services of people living in UK (Manning, 2017).

Size of market: Crown commercial is having huge portfolio of services in which they have
included several services which are benefitting in healthcare sector, school and many more.
Cancer research fund
This is referred as the organisation which is providing awareness in society regarding
cancer and helping cancer patients. The main aim of them is to minimise death rate of cancer
patients and for this they are raising funds and helping cancer victims so as to solve their
problems and provide them assistance in various issues.
Purpose: The major purpose of the cancer research is to render high benefits in term of monitor
and other financial attributes to cancer patients and examining them with the help of conducting
research program.
Size and structures: Within this organisation more than 4000 volunteers are associated and
there are 3000 employees which are working in this in order to render welfare to the society.
Differences between Micro, small and medium size enterprise
Basis Micro size
enterprise
Small size enterprise Medium size
enterprise
Meaning This is referred as the
organisation which is
working under limited
resources and capital.
They earn prominent
profit even with small
capital such as
Strydon and many
more.
These are the
organisation in which
high profit is being
earned by them and
they are nurturing
their family and
society as well.
These are having high
capital invested and
assets by which
employees are
working in order to
earn high revenue.
Size and scope Less than 10
employees are
associated with these
and these are
This includes 50
workers in which
global presence is
initiated by them.
These types of
organisation are
involved with more
than 250 employees

geographically limits
within local area.
in whom they are
having business
function at global
periphery.
TASK 2
P3 Explain relationship between different organisational functions and how they link to
organisational objectives and structure
Organisational structure
This is defined as the arrangement which are created in which outline is being
enumerated by directing numerous activities within a systematic manner in order to achieve
business goals and objectives in proper manner. Various types of roles are included in this
structure by which effective flow of information can be drawn out in various departments.
Some of the departments are explained as under:
 Functional organisation structure: This structure type is commonly used by
businesses and this involves formation of various groups according to the skills and
capacities hold by them by which this structure eliminates different complications and
business goals can be achieved in an easy manner. These organisations are showing
accurate image of every level present in the business by which direction can be given in
proper manner and clear path can be created for growth and success (Cacciolatti and
Lee, 2016).
 Divisional organizational structure: This is referred as the structure which is involved
in dividing operations into various groups consisting of people in whom overall business
objectives can be achieved in appropriate way. Within all the division procured
resources can be utilised in appropriate manner such as in the department of marketing,
finance and other technical departments. In the context of Dyson this type of business
structure is followed by them in order to provide effective and smooth working style.

Interrelationship between the organisational functions
 Marketing and research and development: These both departments are
interconnected as marketing department is performing their operations on the basis of
data provided by research and development departments. These functions are executed
in order to provide sales enhancement to the business and by this marketing department
communicates to various people that are researched by the other department. Similarly
research and development department is providing information regarding marketing tool
and then marketing department execute those tool use within their target market in order
to achieve overall business objectives. This is required by Dyson that their R&D and
marketing department remains connected so as to get assistance over long survival
within competitive market and rendering high benefits to their end users in order to
retain them for long span of time. (Caesens and et. al., 2016)
 Production and finance: This interrelationship is helpful in rendering high brand
image within marketplace as production department is involved in manufacturing high
quality goods and finance department is making budget and taking out cost of each
produced commodity in order to attract large audience and earn huge revenues thereon.
Within the department of finance budget and cash flow is being managed so as to
provide funds support in order to avoid any shortcoming of funds. In the context of
Dyson budget is prepared by the company in order to eliminate any chances of over and
under absorption of funds and this is helping them to deal with complex situation and
keeping their production process under the budget and to earn high profits thereon.

TASK 3
P4 Identify positive and negative impacts the macro environment has upon business operations
supported by specific examples
Macro environment
This is stated as the environment which involves GDP of the nation, inflation, monetary
and fiscal policies, and employment ratio and many more. These are directly associated to the
external factors which are linked with economy of the country. In the context of Dyson
manager is evaluating macro environmental factors in order to analyse external market
situation. With the use of PESTLE various factors are being analysed by them and these are
enumerated as under:
 Political factor: These factors are associated with interference of government within
the business operations. These factors are such as political situation, tax implications,
brexit implication and all other factors which are having direct implication on business
and are related with political condition of nation (Xu and et. al., 2018). In the context of
Dyson this factor is having various advantage and disadvantages which are enumerated
as under:
 Advantage: As by decrement in tax of UK, so within this Dyson is having immense
opportunity to enhance their sales and provide their products to people. Due to
stability of political circumstances in UK people are spending more and this is
rendering high opportunities to Dyson. By this prices of their product can be
lowered by them and huge customer can be attracted thereon.
 Disadvantage – Because of enhancing the price in the import duty Dyson can buy
the raw material on high cost due to this there overall operating cost ay impact
negatively and they charge high price for their goods and services.
 Economic factor: These factors include various factors in which economy of the
country is providing implications to the business, Such as GDP, purchasing power of
population and many more. In context of Dyson various positive and negative
implications are explained as under:
 Advantage: Dyson is enjoying private company rights and they are having their
operations in various countries at global periphery. So the company is facing

huge opportunities to enhance their business and enjoy more profits by analysing
these factors in a clear manner so as to take advantages of various economies.
 Disadvantage: These factors are having negative implications on Dyson as in
various countries wage rate is varied and this impacts their profitability (Gürhan-
Canli, Hayran and Sarial-Abi, 2016).
 Social factor: These factors are associated with taste and preferences of population
living in UK.
 Advantage: In the current scenario customer’s demand is emerging in nature
and this is providing immense opportunities for Dyson to establish their product
into the marketplace in a very prominent and profit giving manner.
 Disadvantage: Due to emerging needs technology becomes obsolete in a very
short span of time by which overall cost of the company is increasing.
 Technological factor: These factors are associated with technological advancement i
product and services of the company. In the context of Dyson advantages and
disadvantages are explained as under:
 Advantage: The Company is using latest technology in their products by which
they are manufacturing such appliances in order to make life easier of people.
 Disadvantage: The company is facing huge disadvantage which is their overall
cost has been increased due to which they have to sacrifice their profitability.
 Legal factor: These factors are associated with legal laws and their implication in
business due to which various implications has been seen in the business.
 Advantage: In Dyson manager is utilising various laws and legal implications
such as employment laws and many more by which high employee satisfaction
in enumerated by them due to which high productivity and efficacy can be
obtained.
 Disadvantage: The manager of Dyson has analysed that these laws are having
negative implication if any factor of laws in not followed. them (Scur and
Barbosa, 2017)
 Environmental factor: This is associated with nature and environmental and their
implication on business as well.

 Advantage: Within this high sustainability is being enjoyed by the company
along with efficient market image.
 Disadvantage: This is giving negative benefits as by using environmental
techniques the overall cost is increased and resultantly profitability has been
decreased.
TASK 4
P5 Conduct internal and external of specific organizations in order to identify strength and
weaknesses
SWOT- It is a widely used technique that can help Dyson to take measure of its
capabilities, abilities, weaknesses, opportunities and threats. It might ultimately help them in
enhancing their performance and profits and revenues. SWOT analysis measuring all four
components for Dyson is shown below:
Strength Weaknesses
Dyson is one of the leading companies
engaged in designing and manufacturing high
definition home appliances. To keep it going
there is regular and continuous research
process defined and followed by. (Migdadi
and et. al., 2016).
The major weakness for Dyson is to
manufacture this high quality products they
offer high price to customers, which is high as
compared to their other competitors.
Moreover, there are instances where it was
noticed they are being engaged in number of
controversies, which might negatively affect
their brand image.
Opportunities Threats
The existence of an opportunity for Dyson to
expand its reach and establish business in
different countries along with new range of
offerings to get edge over their competitors.
Their lies as threat of being replaced from
market for Dyson since their prices are higher
as compared to their competitors and there are
number of brands newly introducing with
unique offerings. (Van Wormer and Besthorn,
2017)

P6 Explain strength and weaknesses interrelate with external macro factors
PESTLE STRENGTH WEAKNESSES
Political Due to exemption of most of
its products from taxation,
Dyson might be enjoying high
revenues and profits.
The rate of Import duty is too
high for Dyson which restricts
it from importing the required
components and increases
cost of operations
Economical With the increasing
purchasing power of
customers and high definition
technology Dyson can be
benefitted for longer
upcoming span.
With decrease in supply of
labours cost of wages are
increasing which may
influence cost of goods
produced negatively.
Social Growing population of the
world is one of the strength of
Dyson as it will ultimately
increase demand of its
products and sales
With increasing use of
advanced technology by
today’s generation Dyson has
to invest high amount of its
budgets in research of new
technology and keep it up to
date.
Technological Dyson is engaged in high
definition technology and
with increasing use of
technology; they might get
edge over its competitors.
(Hans, 2018)
This high technology offering
may have negative financial
implications and failure if not
went as expected.
Legal Dyson is following all
employment related laws
issued and this will help in
Non-adherence to proper
employment laws and rules
might lead to high attrition

increasing efficiency of its
employees.
rate and legal consequences.
Environmental Following all the environment
related guidelines might
improve social image of
Dyson between public.
Adhering to environment
related laws might increase its
legal cost and may have
negative implications if not
followed.
CONCLUSION
From the above given two analysis it can be concluded that business environment is an
important aspect in maintaining the market position secure and competitive edge. Through this
Dyson can understand and evaluate themselves from view of their strengths and weaknesses
and then make the relevant decision-making. It is important for every business organization to
understand needs of all their customers and then deliver the offerings accordingly. This report
had greatly helped me in extending my knowledge on various business terminologies and
understanding organizations their size and structures. It is necessary to identify both internal as
well as external environmental factors to analyse the performances (Hamilton and Webster,
2018). All this analysis can be best conducted with the help of SWOT and PESTLE tool.

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