Different types of organization with their purpose

Business and Business
Environment

INTRODUCTION.....................................................................................................................................3
TASK 1.......................................................................................................................................................4
P1 Different types of organization with their purpose.............................................................................4
P2 Size and scope of various kinds of organization.................................................................................6
TASK 2.......................................................................................................................................................9
P3 Relationship between organizational function and structure...............................................................9
TASK 3.....................................................................................................................................................12
P4 Application of PESTLE analysis to analyses external business environment...................................12
TASK 4.....................................................................................................................................................15
P5 Implication of SWOT analysis to identify internal potentiality of organization...............................15
P6 Interrelationship of Strength and weakness with external macro factors..........................................17
CONCLUSION........................................................................................................................................17
REFERNCES...........................................................................................................................................19

INTRODUCTION
Business Environment combinations of all forces, factors and institutions which are
external to and beyond control of an individual business firm but which application a significant
influence on the functioning and growth of enterprises. Additionally, it impact directly over
association decision making which influence positively or negatively over firm’s efficiency and
profitability (Shenkar, Luo and Chi, 2014). Moreover, it permit establishment to recognize or
examine its strength and weakness in order to embrace challenges or threat that supports them to
manage sustainable proficiency and growth. This report is based on Merrill Lynch that is one of
the leading financial service company established in the year of 1914 It deals into investment
management service, wealth management, private wealth managing with more than 2500 outlets
across UK. This report covers, different kinds of organization along with their legal structure,
size, scope, purpose, interrelationship between various business function. Implication of
PESTLE and SWOT analysis for analyzing internal and external macro environment.
TASK 1
P1 Different types of organization with their purpose
An enterprise is a process of dividing work into convenient tasks or duties, of grouping
such duties in the firm of posts of delegating authority to each position and of appointing
qualified manpower to be responsible that the work is carried out as planned in order to
accomplish common goal or objective. Along with this, every organization contains its own
purpose and legal structure which enable them to monitor or govern its business operation and
function for an attainment of high level of profitability in an appropriate manner. However,
setting up legal structure is one of the first decision during establishing a company as it defines
the way business is organized as well as allow them to determine legal obligation and can gain
better positioning within competitive marketplace. There are different kinds of organization with
its purpose and legal structure which are as follows:
Private – Merrill Lynch

They are legally distinct entities with their own assets, profits and liabilities, along with
this personal finances of any shareholders are protected by limited liability. Moreover, its shares
are not offer to general public. For acquiring deeper understanding of this concept, Merrill Lynch
is considered as it one of the reputed financial service company in UK which operate across the
globe with a high and best quality of products and services.
Purpose
The core goal of Merrill Lynch is to become the first and best choice of customer by
rendering high quality of products and services in an affordable price.
Legal Structure
However, some of the legal structure of Merrill Lynch are as follows:
Sole Proprietorship: It is regarded as simplest structure in which it consist an individual
personality who is responsible for entire business operation and function as well as obliged to
take all gain and loss by its own. Some of its advantages and disadvantages are as follows:
Strength Weakness
 It is easy or cheap to form and it
employ others which directly reflect in
enhancement of business sales growth
or function.
 Owners are fully liable, if business
debts become overwhelming the
individual owner’s finances will be
impacted.
Partnership: Under this, business entity or ownership is divided among two parties who
come together with mentality to share all risk, responsibilities, profit and loss equally in order to
achieve organization common goal in an effective and efficient way.
Positive Negative
 It is easy to establish as they have
limited external regulation that enable
them to modify legal structure based
on circumstances changes without any
 The liability of partners for debts of
business are unlimited as well as there
is a risk of disagreement among