Types of Organisations and their Size and Scope

Business and Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................1
LO1..................................................................................................................................................1
P1. Several types of organisations .............................................................................................1
P2. Scope and Size of different enterprises ................................................................................3
M1. Interrelation of size and scope with business objectives ....................................................4
LO2..................................................................................................................................................7
P3. Relationship between organisational functions ..................................................................7
M2. Advantages and Disadvantages of Interrelationship ..........................................................9
D1. Critical Analysation............................................................................................................10
LO3................................................................................................................................................10
P4. Macro Environmental Impacts............................................................................................10
M3. Appropriate application ....................................................................................................12
LO4................................................................................................................................................13
P5. External and Internal Analysation .....................................................................................13
P6. Interrelation between strengths and weakness with external factors .................................14
M4. Appropriate Application....................................................................................................14
D2. Critical Evaluation..............................................................................................................15
CONCLUSION .............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business Environment is determined as a collection of all the internal and external forces
like employees, demand and supply, expectations and needs of customers, suppliers, government
activities, management, technology and innovation, clients, market trends, economic changes,
social trends, etc. It is important for an organisation to pay attention to its business environment
in order to run in an effective manner (Anolfatto and MacDonald, 2019). This report is based
upon United Kingdom based enterprise named, ASDA Stores Ltd, which is a retail organisation
that deals with groceries, home appliances, clothing, mobile phones, financial services and so on.
This report covers various kinds of enterprises and their purposes, size, legal structure,
scope, objectives, goods and services offered by them and organisational structure. It also covers
interrelationship between organisational functions and their relation with structure and
objectives. Further it covers negative and positive impact of macro environment upon business
activities and operations. Further, it covers external and internal analysation of ASDA Stores Ltd
in order to identify the strengths, weaknesses, opportunities and threats of this enterprise by
using SWOT analysis. Also, interrelation of external factors with company's strengths and
weaknesses are also covered in this report.
LO1
P1. Several types of organisations
There are various kinds of business enterprises in market that helps in generating large
amount of revenue for economic growth. Each of these organisations has various purposes and
legal structure on which basis they carry on their business activities. They are categorised as
public, voluntary and private enterprises which are elaborated in detail as follows-
Private Organisation- It is determined as a corporation, association, partnership, individual,
corporation and partnership which is not a public organisation and it carry on business activities
with a purpose of attaining profits (Birru and et. al., 2019). Here, the example of private
organisation is ASDA Stores Ltd, which is a retail business entity and deals with groceries, home
appliances, financial services, and so on.
Purpose- The simple purpose of private organisation is to earn profits by providing quality
goods and services. Purpose of ASDA is to earn high amount of profits by providing quality
customer service.
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Legal Structure- ASDA is private limited company under company's act, 2013 and is listed in
London Stock Exchange. The legal structure of private companies are elaborated as follows-
Sole Proprietorship- In this kind of business entity, a solo person is responsible for
operating all the activities of a business and is the solo owner of the business organisation.
Partnership- In this business entity, an agreement takes place among two or more people
who works together to achieve overall objectives of a business (Crane and et. al., 2019).
Limited Liability Companies- In these kind of business organisations, there are various
owners and the profit which is generated is distributed among them.
Public Organisation- These business organisations are owned by government and its business
operations are operated by the government. Here, the example taken for public organisation is
National Health Service that provides health care services across England, Whales and Scotland.
Purpose- Its purpose is to provide services to society and public. The purpose of National Health
Service is to provide health care services to the public.
Legal Structure- Its legal structure is that it is listed in UK based medical and health
organisations. Public Organisation's legal structure is elaborated as follows-
State Government- In this, all activities and operations of a business are operated by
State Government.
Central Government- In this, all operations and activities related to business are operated
by Central Government.
Local Government- In this all the business activities, operations and processes are
operated and controlled by nation itself or government of municipality.
Voluntary Organisation- These business entities are operated and taken into action for a
particular social cause or problem. These enterprises are also known as the non profit
organisations as these entities do not work for achieving profits. The example taken for such
organisation is Wellcome Trust that is an enterprise based on UK which carry on its activities for
improving animal and human health (Cyphert and et. al., 2019).
Purpose- The main purpose of voluntary organisation is to work for society and people living
there. The basic aim of Wellcome Trust is to provide health and safety to needy people and
animals.
Legal Structure- It is charitable company limited by guarantee under the Company's Act, 2013.
Legal structure of Voluntary Enterprises is elaborated as follows-
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