Types, Purpose, and Legal Structure of Organizations

Business and Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Various Types, purpose and legal structure of public, private and voluntary organizations ....3
Identify size and scope of different organizations ..................................................................5
TASK 2............................................................................................................................................6
Relationship between objectives and structure of the different organizations ..........................6
Advantage and disadvantage of interrelationship between organizational functions and its
affect ...........................................................................................................................................7
Critical analysis of the complexities of various types of structure and interrelationship of the
organizational functions. ............................................................................................................8
TASK 3............................................................................................................................................8
Positive and Negative effect on Macro- Environment on Rynair ..............................................8
TASK 4..........................................................................................................................................10
Internal and External Analysis of companies ...........................................................................10
SWOT Analysis and its justification on decision making .......................................................12
Strength and weaknesses interrelation with external macro factors ........................................13
Impact of Both macro and micro factors on objectives and decision making .........................14
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Business environment is collection of internal and external factors which including
employees , customers, demand, needs, expectation , suppliers , technology and market activities
and government involvement. There are various types of organisations which can be
differentiated on the basis of their purpose and size. This report deals with three types of
organisations like public, private and voluntary. The public organisation chosen for this report is
National Health Service (NHS) and Raynair Company from the private sector and Shelter
Company from the Voluntary sector. This report will discuss the different types of organizations
and their types, purpose, size, scope and legal structure. Apart from this report also discuss the
interrelationship between different organizational functions and structure. To analyse the internal
and external factors of the company PESTLE and SWOT model used and explain how internal
and external factors affects the operations of the organisations.
TASK 1
Various Types, purpose and legal structure of public, private and voluntary organizations
Business is a separate entity which is creates to fulfil their goals with the help of
commercial activities. There are various types of organisational sector which can be define as
public, private and voluntary which are discussed below-
Public Organizational
Public organization are formed and managed by the government. In public organization,
the involvement of government as whole. Public sector offer products and services for the
benefit of the society. The main purpose of public sector is betterment of society rather than
make profit. These sector generally funded by the taxes which are generally raised by the United
Kingdom government from the public (Abdel-Basset, Mohamed and Smarandache, 2018).
Purpose- The prime purpose of public sector is to offer service to the people for their
benefit not for the profit.
Example- National Health Service
Legal Structure Public Corporations – Public corporations consider as an entity that basically formed by
the state so that it carry out the mission and services for the public. To carry out the

public services and missions, public corporation considers those activities and provides
all the services that generally also offered by the private corporation.
 Municipal Enterprises - It is generally a legal term which is used for a local body which
governs the society including town, cities, countries, villages. This term also determined
as a municipally owned associations and corporations.
Private Sector Organisations
These organizations are controlled by the individual person or a group of people. In
private organization there is no involvement of the government. These organization work only
work for the profit maximisation.
Purpose- The prime purpose of this organisation is to generate more profit and also work
properly to enhance the efficiency and productivity of the employees so they will perform well
and help to earn more profit (Alford and Greve, 2017).
Example- Rynair
Legal Structure Sole Proprietorship- Private Organisation controlled by the single person who is
responsible for the daily operations. Main concern is profit earning and focus on
employee’s productivity which is required to survive in competitive market. Partnership- Private Organisations also managed and controlled by the one or more
person and become partners. Mostly private businesses are running in partnership.
Partners share profit, losses together and also responsible for each and every
organizational activities (Battaglia, Landoni and Rizzitelli,2017).
 Companies- Companies refers as a joint stock ventures and act as a separate legal entity.
It is also considered perceptual succession which means that owner of the company will
change or come or go but company remain forever.
Voluntary Organization
These organizations are established by the some members who run the organization with
a common purpose. These organization build for the welfare of the common population and
provide services to the welfare of the society.
Purpose- The main purpose of this organization is to work for the people. These
organization work not for profit.
Example- Shelter