Different Types of Organisations and Their Purpose

BUSINESS AND IT'S
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different type and purpose of organisation, public, private and voluntary sector and legal
structures.....................................................................................................................................3
P2 Explaining the size and scope of different types of organisation..........................................4
TASK 2............................................................................................................................................5
P3 Relationship between different organisational structure........................................................5
TASK 3............................................................................................................................................7
P4 PESTLE analysis with positive and negative impact on the organisation.............................7
TASK 4............................................................................................................................................9
P5 Internal analysis to identify the strength and weakness of the company...............................9
P6 Strength and weakness interrelate with external macro factors...........................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment refers to both the internal and external factors which are able to
affect the business by affecting companies different organisational function. It is the collection of
entities, individuals and other factors. This report is based on the factor which has a long term
impact on functions and operations, according to size, scope based on different analysis like
PESTLE and SWOT (Arat and et. al., 2020). I have done this work with my Analyst Mrs
Peacock. She has helped me in reviewing selection of companies on her behalf.
TASK 1
P1 Different type and purpose of organisation, public, private and voluntary sector and legal
structures
There are different types of organisation which are categorised on the basis of ownership and
they are Private sector, Public sector and voluntary sector.
Private Sector- These are the organisation which are driven by profit and are owned by
the individuals. Owners, shareholder and investors are the one who get benefited by the profit.
Private organisations are those which are financed by the money from the bank loans and from
the different shareholders.
Purpose- The main objective of this sector is to earn more and more profit and manage to
develop good brand image (Afonso and et. al., 2020). there is need to monitor and control
different business activities in order to manage the functioning in effective manner.
Legal Structure of Private Organisation
Sole Trader- These are business which are owned by the one individual. Their size is generally
small. Some private sector work areas include Hairdresser, Electrician, Butcher. Colombus
photographed is the sole trader business which having a single owner and is able to get all the
profit and it liable to pay all the taxes.
Partnership- These are the business which are having 2 but having less than 20 partners.
Lawyer, doctor, dental practice and real estate agents operates as the partnership. The partner
who invested in the business but is not active in the day to day activity or business are called as
sleeping partner.

Private limited companies- These are the companies are separated through the owner who has
owned that company. Here, company finance is separated from the personal finances. These
companies are divided into equal part which are called as shares.
Public Sector- This type of sector is owned by the government. These provide effective
benefits to the company for managing . Due to government property they are run by the money
raised from the taxes (Solomon and et. al., 2019). These are involved in managing work of
different business activities properly.
Purpose- The main purpose is to help the community by offering their services to them.
Legal structures- The legal structure of the public organisation related to the highly controlled by
the government. The government has the power to take all the decisions. Public health services
are the public organisation which have the main objective to provide the health care.
Voluntary Sector- These are the sector which is run by the help of trustees and they are
owned and run voluntarily. They are run for the purpose of helping the community and are not
profitable in nature. They are operated with the donation and gifts. Whenever there is any profit
then these profit are reinvested in the organisation (Burgin and et. al., 2016).
Purpose- This type of organisation purpose is to make the world a better place to live.
Legal Structure- The legal structure of this sector is to manage the top level by executing the
various functions with financial resources.
P2 Explaining the size and scope of different types of organisation
Private
Size- Ryanair is a private company which are having the largest private employer in UK. They
are having about 2365 store all over the UK and having 367,000 staffs and about 250,000
employees in the business.
Scope- Company is focusing on the higher value to the customer, where they are needed to
provide the satisfactory services and products.
Purpose- The main purpose of the Ryanair is to earn more profit and increase the high market
share (Hart and et. al., 2017).
Legal Structure- One of the legal structure of the Ryanair is their governance model. Here,
people are dealing with the associated shareholders and are focusing in dealing with the strategy
in the macro environment situations. According to the legal structure they are the part of the
company.