Different Types of Organisation and their Interrelationship with Business Objectives and Structure

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1. Discuss the different types of organisation with their purpose and legal structures........1
P2. Discuss the size and scope of the organisation by differentiating between different range
of organisations......................................................................................................................3
M1. Discuss how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisation...........................................5
P3. Discuss the interrelationship between the functional areas of the organisation and how
they link to organisational objectives and structure...............................................................6
M2. Analyse the advantages and disadvantages of interrelationships between organisational
functions and the impact that can have upon organisational structure...................................9
D1 Provide a critical analysis of the complexities of different types of business structures and
the interrelationships of the different organisational functions..............................................9
P4: Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.........................................................................10
M3: Apply appropriately the PESTLE model to support a detailed analysis of the macro
environment within an organisation.....................................................................................11
P6. Explain how strengths and weaknesses interrelate with external macro factors............12
D2. Impact of macro and micro environment upon business objectives and upon decision
making process.....................................................................................................................13
CONCLUSION..............................................................................................................................14
References:.....................................................................................................................................15
Books and Journals...............................................................................................................15

INTRODUCTION
Businesses are the enterprises that are engaged in the commercial activities to gain profits or to
serve the society by their products and services. Business environment is the surrounding that
consists of macro and micro environment which includes internal and external factors that
impact the business functions and operations positively or negatively. Business environment has
the forces that shape the activities and product line of the business (Halbert and Ingulli, 2020).
The particular report will discuss about different types, size and scope of the organisation.
Further in the report the business environment of the JCB- an equipment manufacturer for the
waste handling, construction, destruction, agriculture etc. of England, UK will be outlined.
Moreover in the report the interrelationship between the various functional areas of the
organisation and their link with organisational structure will be discussed. The report will also
highlight the positive and negative impact of macro environment on the organisation by
conducting the PESTLE analysis. Further in the report the internal and external analysis of the
organisation is conducted with the help of SWOT analysis. Lastly the strengths and weaknesses
of the macro environment factors are discussed in the report.
MAIN BODY
P1. Discuss the different types of organisation with their purpose and legal structures
The different organisations have different purpose and different have different reasons to start
any type of organisation. There are basically three basic types of organisations which are
discussed below:
Private Sector Organisation
A private organisation owned by the individuals or the group of shareholders that are
non-governmental organisations and are driven for profits (Kumi, Yeboah and Kumi, 2020). The
JCB is the one of the private organisation headquartered in the England, UK. The company
operates in heavy equipment industry; the company produces more than 300 types of machines
for construction, waste handling, demolition and many more. The product variety includes diesel
engines, diggers, tractors etc.
Purpose: the purpose of the private sector organisations is to earn profit for their organisation by
offering products and services.
Legal Structure
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The legal structure of private sector organisation includes three types of private sector
organisation that are discussed below:
 Sole trader: the organisation is owned by the single person and the profits are also owned
by that person. In this type of business the single owner is responsible for the liabilities
and obligations. JCB is the sole trade company owned by single person.
 Partnership: the partnership is the business entity whose ownership is managed by the
two or more people with the aim of making profits (Elliott, 2020). In the partnership the
profits are shared between the owners as per the contract of partnership.
 Corporations: The corporations are the profit earning or not profit earning business entity
that has separate legal entity for the owner. Corporations are owned by the shareholders
or the single investor who invests in corporations stock for providing the capital to the
business.
Public Sector Organisation
The public sector organisations are owned by the government bodies. They are operated
with the money raised by the taxes. The Tesco plc is considered as the Public sector Company.
The company is some of the biggest supermarket chain in the retail industry of UK. The
multinational company sells general merchandise, food products, clothing’s, groceries etc. it is
the market leader for the groceries in the market of UK.
Purpose: the aim of public organisations is to increase the economy of the country and also to
benefit the society by serving products and services. Basically they provide the essential public
services and also make the full utilization of resources for the benefit of the community.
Legal structure
The legal structure of public sector organisation is discussed below:
 Local government: The organisation that are run and controlled by the local government
and also funded by the local government. These organisations are developed for the
benefit of local public.
 State government: the organisations that are controlled and run under the state
government and also the funds and taxes are raised for the state government and to
benefit the public of state (Farrugia, 2020).
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