Different types, purposes and legal structures of organisations

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types, purposes and legal structures of organisations........................................3
P2 Explain size and scope of different types of organisations...............................................7
TASK 2............................................................................................................................................9
P3 Relationship between different organisational functions and link to objectives and
structure..................................................................................................................................9
TASK 3..........................................................................................................................................12
P4 Identify positive and negative impacts macro environment has upon business operations12
TASK 4..........................................................................................................................................14
P5 Internal and external analysis of organisations in order to identify strengths and
weaknesses...........................................................................................................................14
P6 Explain how strengths and weaknesses interrelate with external macro factors.............16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................18

INTRODUCTION
Business is defined as an activity which is engaged in industrial, commercial and
professional action in order to earn profit by selling products. Similarly, business environment is
defined as integration of both internal and external factors which helps in influencing operation
activities of company (Adeoye and Elegunde, 2012). This includes competition, improvement in
technology, market condition, clients, supplier and others. This business and business
environment helps in knowing about requirement of consumer and work accordingly so that goal
and objectives can be achieved. The given assignment is based on Marks and Spencer which was
founded at United Kingdom in 1884. It is retailer business providing various products and
services such as luxury, food, clothing, furniture, financial service. According to assignment,
three different organisations has selected such as Marks and Spencer, NHS and Oxfam which is
private, public and voluntary. These have different types, size, vision, mission and other which
has mentioned in report. It has cover relationship among various functions of organisation for
achievement of goal and objectives. This also highlights about PESTLE and SWOT analysis to
know about internal and external environment of business. It has also covered interrelationship
with external macro factors.
TASK 1
P1 Different types, purposes and legal structures of organisations
According to scenario, three organisations has chosen where Marks and Spencer is
Private, NHS is Public and Oxfam is Voluntary. The different types, mission, vision, legal
structure of each organisation has been discussed which are follows:
Private Organisation
Private Organisation refers to any person, partnership, agency or corporation operated for
profit motive that are not government owned or operated with aim to serve for welfare motive
(Andersson, Forsgren and Holm, 2015).
Background of Organisation- Private organisations are part of country's economy
which is not controlled directly by Government. Marks & Spencer is a British multinational
retailer headquartered in London founded by Michael Marks and Thomas Spencer in 1884. It
focuses on providing high quality services that involves clothing, home products and food

products . This respective company is listed on London Stock Exchange. M&S has currently
operating 959 stores across the UK.
Products and Services- It provides products or services which includes clothing, shoes,
cosmetics, perfumes, toiletries, home and kitchen equipments, foods and drinks, banking, energy,
TV and online services and many more (Avramenko, 2012).
Stakeholder Information- Stakeholders of Marks & Spencer includes its employees,
customers, government, NGOs and others which contribute for its financial sources. They get
high returns in lieu of their investment in Marks & Spencer.
Types of Organisation- Private organisation are of various types which includes: Sole proprietorship- It refers to an enterprise that is run or owned by one person with no
legal differences between owner and entity. It is also known as 'One person company'
because all the responsibility, investments, profits and management are in single hand. It
is easy to form and owner has sole control over profits. Its demerit is that owner is
personally liable for all losses and liabilities. Joint stock company- It is most suitable form of organisation as its business enterprise
that is owned by it shareholders jointly. It is an artificial legal person with separate legal
entity and perpetual succession, with limited liability and common seal and it has a right
to transfer shares.
 Partnership- Partnership is an agreement between two or more than two persons to
achieve targets and earn profits equally (Babu, 2012). It is operated by proper agreement
describing in partnership deed which involves information about organisation and
partners. Partners can be individuals, groups, businesses, institutions, schools, colleges
etc.
Legal Structure- Marks & Spencer follows legal structure of private limited companies
consisting of departments such as finance, HR, marketing and IT. It includes board of directors
to take overall decisions and CEOs and other top level management and regulate structure of
joint stock company.
Public Organisation
Public organisation is an enterprise owned and operated by government with aim to
provides goods and services for its citizens. Its main target is public welfare and do not seek to