Different types and purpose of organisation

This document provides an overview of the different types of organisations - public, private, and voluntary - and their purposes. It also discusses the scope and size of organisations and the inter-relationship between departments. Additionally, it explores the positive and negative impact of the macro environment on business operations.

Business and Business
Environment

Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Different types and purpose of organisation.....................................................................4
P2 Scope and size of organisation..........................................................................................7
TASK 2............................................................................................................................................8
P3 Types of organisational structure and inter-relationship between departments................8
TASK 3..........................................................................................................................................10
P4 Identify the positive and negative impact of macro environment on business operation10
TASK 4..........................................................................................................................................12
P5 Internal and External analysis of selected organisation..................................................12
P6 Strength and weakness and its inter-relation with external environmental factors.........13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Business environment can be defined as the sum and collection of all micro as well as
macro environment. The business environment includes various aspects that are related with
employees, supply & demand, customer needs and suppliers etc. All business factor and business
environment are related with organisation and impact on operations and operations of
organisation. With acknowledging business environment organisation also develops and design
its goals and objective in an appropriate manner. Moreover, the report highlights on different
types and purpose of organisation (Andersson, Forsgren and Holm, 2015). Size and scope of
different types of organisation and the relationship between different organisational functions
with its objectives and structure will also include in this report. In the last, internal and external
analysis of specific organisation for identifying organisation strength and weakness is focused in
the report.
TASK 1
P1 Different types and purpose of organisation
Organisation plays an important role in the market environment that leads management to
perform all operations and functions within in an effective manner such as to support economy
of a country. The main aim of an organisation is to perform all work with right categories that
leads to perform all work as per decided strategy. In this regard, three different type of
organisation are selected public, voluntary and private.
Public organisation
These entities are partially or totally owned and managed through the government
authorities (Anıl and Ficici, 2017). Public organisation work for providing benefits to the well-
being and development of individuals in society. There are various sectors are operated by public
specifically large organisation such as communication, infrastructure, transportation, health and
social care. In context of public organisation, BBC is a renowned public organisation that engage
in broadcasting sector.

Legal structure- Public entities are controlled by government, In this context it is depend
on three different entities. Local, state and central are the entities that managed and controlled by
the government structure to perform all business in an effective manner.
Goal- The main goal of BBC is to generate interest of large number of audience through
providing high quality services (Bah and Fang, 2015). Similarly, another goal of organisation is
to provide right and relevant information to all individuals.
Objective- BBC objective is to offer right and accurate information to generate more
view and customer base. Along with organisation is a trustworthy and respective organisation
that works with individuals in respective manner.
Vision- The main vision of BBC is to generate world in which individuals are well
informed and empowered in proper manner. It is also useful to provide healthy and resilient
communication between all individuals that provide information in proper manner.
Mission- Mission statement of organisation is to provide creative communication that
develop area and work as a most trusted media. Along with this organisation work to help
individual for generating and delegating right roles and responsibilities to all employees.
Product and service- BB services and products consist of different new program and
services to fulfil all needs and requirements as per customer. Its results organisation offer high
quality of product as well as service to meet with customer requirement.
Stakeholder- The major stakeholders of organisation that is generating impact on
organisational functions and operations are reporters, researchers, customers and political parties.
Private organisation
This entities are managed, owned, controlled and administrated by set of organisation,
individuals and financial institution (Brown, 2018). These all are incorporated with the view for
developing a loyal customer base the engage all persons to work in retail sector properly. Legal
structure for private organisation are as follow:
Sole proprietorship- It is an entity that is totally owned, managed and controlled by a
single person or entrepreneur. All the decisions and strategy are developed by the owner to
perform all functions and operations in proper manner.
PLC- It is a limited organisation that offers different share to public and all of this
functions are regulated and needed to manage work with better financial position such to retain
investor for longer period.

Corporation- This refers to a sort of entity which is constituted by different number of
individuals to complete all work in an effective manner (Chang, 2016). The main motive of this
organisation is to earn high amount of profits.
Goal- Marks & Spencer is an example of private organisation that is performing business
at global level. The main goal of respective business is to manage business at global level.
Vision- The main vision of M&S is to complete work by developing benchmark
standards that measure performance for each action and activity. Customer satisfaction is main
motive and vision of Marks & Spencer.
Mission- The brand aim of organisation is to develop quality product that offers
accessible areas to satisfy its customer needs. It also help individual to work better as compare to
competitive organisation.
Objective- M&S is an international business organisation that is used for managing
business in a profitable manner. It makes sure that brand must meet with accountability of all
stakeholders.
Product and service- M&S make sure that it’s headquarter focus and control all stores
and outlets that are managed under brand name of M&S. It is also offering large variety of
product that are food, clothes and home products. Moreover, organisation is founded in the year
1884 and operating its business from more than one century (Charfeddine, 2016).
Stakeholder- Employees, customers and government are the major stakeholder of
organisation that operates all business operations properly.
Voluntary organisation
With this type of entity an organisation make better force that leads business to complete all
work in a right manner. With this aspect management is able for attaining uniform goals that
benefits society. Oxfam is a renowned voluntary organisation that is engaged in social welfare
activities.
Legal structure- NPO (Non-profit organisation) and NGO are two types of legal structure
that is leading business to control all work in an organised manner. It helps management in
managing and performing work to gain effective results.
Goal- Oxfam is working for improving human performance such as to remove elimination
of poverty. The main purpose of Oxfam is to remove poverty from the world.

Objective- The main objective of Oxfam is to lead all individuals and offer them healthy
and better life. With this organisation provides benefits to citizens for saving individual life.
Vision- Oxfam vision also focus to remove poverty from the world in order to lead better
life for citizens (Charter, 2017). It is also influence person life to complete all work with proper
right standards.
Mission- The mission of Oxfam organisation is to create long lasting solution to manage
work with proper justice.
Product and service- Organisation is offering services that improve health of individuals
and work for welfare of society.
Stakeholder- The main stakeholder of this organisation is voluntary persons and
government and authorities such as trustee.
P2 Scope and size of organisation
The organisation which work as a part of economy that leads organisation to work properly
that make acknowledge as per public, private and voluntary business. Size and scope of each
business organisation is mention as below:
Public organisation
This entities work under jurisdiction of government and BBC is a broadcasting
organisation that makes present of company for longer period.
Size- BBC world news is present and access it’s channel operations in more than 205 nations.
More than 300 million are subscribers of BBC and its operations.
Scope- Scope of BBC is narrow because most of the individuals prefer to watch business news
and other news at a local level base.
Private organisation
This organisation performs business without the interference of government (Hillary,
2017). Marks & Spencer is a retail corporation that is managed by individuals with proper
manner.
Size- The operations of M&S perform its business in more than 50 nations. This organisation
operates work in a collaborative manner through satisfying need of individuals and the major
function is performed at the entity of UK.
Scope- M&S refers to a huge scope of growth by facilitating expansion of business in a
geographic manner. This leads to reach at individuals with motive of earning profits.

Voluntary organisation
According to this entity of organisation management complete task with motive of
accomplishing all work aspects that leads in satisfying individuals for work in an organised
manner (Hussin and et. al., 2017).
Size- The operations of M&S is to carry out work at local level because it is based on trust and
leads management for working at global level.
Scope- Oxfam is managing and controlling all work through identifying scope for all individuals
so the scope for enhancing Oxfam business is too wide.
Particular Micro Small Medium
Size The term micro
business refers to
perform business that
is providing better
product and services
to all individuals at a
small level.
Small organisation
undertakes all those
companies that has
limited number of
employees but satisfy
needs and wants at
global level.
This type of
organisation are quite
longer that makes
small sized
organisation to recruit
talented workforce.
Scope This is very less in
scope and as per
future it is managing
business at small
level. So some
challenges are faced
to operate business
properly.
Small business work
with low scope that
develop its business
for managing areas
that leads to expand
business into new
areas.
It is also used by
management in
managing areas that
satisfies needs to
work with expansion
of business into new
areas.
TASK 2
P3 Types of organisational structure and inter-relationship between departments
Organisational structure refers to a manner in which management perform all task as per
business that ensure for completion of task in a smooth manner (Kolk, 2016). There are three
types of organisational structure which is mention as below:
Functional structure

It is also known as top down structure and in this organisation divide it number into various
business functions that work all task as per collaborative manner. It also ensures that
management attain its organisational objectives in a timely manner. There are various
departments is used performing work in a right manner. IT, HR, Sales and marketing all the
similar pillar in which task are completed with right functional structure so functions and
operations are completed in a proper manner.
Divisional structure
In this an organisation is divided into various divisions that perform all work by
performing certain functions and operations in a proper manner (Nohria, 2017). Tesla motors one
of the well-known organisation manage its business through completing all work by completing
all business in an appropriate manner.
Matrix structure
In the matrix structure all task are completed by organisation through setup of different
form in a grid and matrix instead of traditional structure. In other words, it is recognise in
managing all task that leads organisation in managing work as per areas for managing task with
functional structure to carry out operations across the globe.
Inter-relationship with different business function
Finance and marketing- There are different functions are managed in linked with each
other and it also not carry out operations without the other function support. In this regard,
marketing department of M&S communicate with the finance team to decide the number of
actual budgets. This results all work is completed through assigning promotional activities. It is
also used by finance department in making awareness as per organisational areas. So by

collaborating all work properly. It is easy to develop competitive edge in market that enhance
overall share to enhance overall profitability.
HR and marketing- With generating inter-relation between this two departments to
enhance smooth flow of operations in organisation. This results huge revenue and profits is
generate at market place (Otoo and Drechsel, 2018). This refers marketing team complete its task
by managing and relating areas under which skilled individuals manage its work. Example- with
recruit of skilled employees the sale of M&S products is increased. In this HR team also
understand responsibility and roles which relates with vacant seat. So right employees are
recruited for the vacant area or role in the organisation.
TASK 3
P4 Identify the positive and negative impact of macro environment on business operation
Business environment refers to those aspects in which company operations are performed.
Example- market refer to environment that is managing task and operations through manage
business in dynamic market conditions. PESTLE analysis from perspective of Marks & Spencer
is mention as below:
Political factor- This perspective undertakes areas that operate organisation business through the
decided rules of a country which is impacting on operations.
 Positive- The UK government is stable and it offer numerous opportunities to
management of M&S through formulating policies that support local business.
 Negative- Due to the shift in trade regulations and recruitments because of Brexit various
challenges are faced by management of M&S.
Economical factor- This comprise of various aspects that includes interest rate, Gross domestic
production, exchange rate etc. M&S also designed its policy according to the country conditions
(Pearson, 2017).
 Positive- The strong economic conditions of UK provide opportunities for making better
and effective infrastructural, communication and transportation.
 Negative- Negative shift in trade regulations and tariff recruitments Brexit create
challenge. Example- due to change in country rules economic policy work to complete
task properly.

Social factor- This consists of managing work as per lifestyle, attitude, trends that fulfil work as
per areas in making better offerings that fulfil customer demand properly/
 Positive- UK society is open for managing task as per customer needs and preference
that foster entity for generating offerings with help of innovating feature (Prajogo,
2016). Example- organisation adopts new features that are adopted by society to work
properly.
 Negative- Needs and wants of customers are changing within short time period due to
which company face challenges in managing work properly.
Technological factor- In this constitutes technological advancements are improved in small time
period. This results all task of M&S are performed in proper manner as per minimum time
period.
 Positive- With technology advanced states, organisation and individuals both are
updated to complete all task and operations properly.
 Negative- In case of new technology aspect management is facing challenge due to its
high operating cost.
Legal factor- Each country formulates there, own laws and legislation which is performing work
according to decided rules and regulations.
 Positive- Each country develops its rules to ensure safety of its local organisation.
Management is also focused to make positive response through completion of task in
appropriate manner.
 Negative- There are various challenges stipulated at time of managing work to
undertake areas in terms of managing negative aspect.
Environmental factor- In this area management constitute as per environmental laws that would
constitute to ensure longer sustainability in market (Saleem, 2015).
 Positive- From perspective of all M&S it is used by management to complete task as per
environmental friendly practices. This refers to make release of carbon footprints, by
acting interest of company nature.
 Negative- Due to non-fulfilment as per provision of environmental laws that constitute
results according to areas as per penalties and public prosecution. Example- Organisation
is facing challenges due to large formalities of environment.

TASK 4
P5 Internal and External analysis of selected organisation
This is essential for an organisation to perform all task through formulating effective
strategy. In order to develop an effective strategy organisation understand internal aspects of
business (Schaltegger, Hansen and Lüdeke-Freund, 2016). SWOT work as an effective tool
which leads management to its strength, weakness, threat and opportunities. From the
perspective of this two different organisation SWOT analysis is mention as below:
SWOT analysis of BBC
Strength
 BBC is the largest broadcaster among
all over the world.
 Employees and public organisation are
the another strength that increase
market share for organisation.
Weakness
 BBC is accused of presenting biased
views in news that also generates
negative publicity for organisation.
 Operating cost of BBC is too high due
to which profits of business are
impacted.
Opportunities
 BBC is able to enter into joint
partnership with other channels that
enhance its popularity among market
(Toedt, 2014).
 With providing right information
through right source it is easy for
management to enhance work at global
level.
Threats
 Due to extensive rival organisation it is
impacting on presence of channel such
as CNN and Times Now create
challenge for organisation.
 Large number of domestic channel is
emerging business due to pass of time.
It creates tough competition for
business to manage business properly.
SWOT analysis of Marks & Spencer
Strength
 Marks & Spencer is recognises as a
global brand. So its products
availability belongs to a large level it
works as a major strength for
Weakness
 Company is using traditional methods
for completion of work which take high
manufacturing time. So it works as a

organisation.
 Organisation is offering wide variety of
products that is clothing, home and
food items which all relates with good
quality. So it also work as a strength
for organisation.
negative or weak point for organisation.
 Organisation is not invested more
amount in research and development
department. So it generate problem for
organisation to work with current
trends.
Opportunities
 Developing countries provides good
marker share that increases
opportunities for Marks & Spencer to
gain better results.
 With use of good amount of money
organisation is able to invest in
innovation perspective that enhance
market share for organisation.
Threats
 Brexit generates numerous problems
for business as well as individuals due
to which it is complex to prevail
constant profits.
 Due to intense competition market
share of organisation is directly
impacting on goals and objectives of
business. Tesco, Local organisation,
Morrison all impact on operations of
company.
P6 Strength and weakness and its inter-relation with external environmental factors
The macro environment affects upon the commercial enterprise operations of a
corporation. In this regard, the elements which can be included within the PEST analysis have
weak as well as effective outcomes for company (Virglerová, Dobeš and Vojtovič, 2016).
Following is the interrelationship of strengths and weaknesses with macro environmental factors:
Political Factors:
 The political balance of United Kingdom serves as the largest electricity for Marks &
Spencer which aids the entity in stipulation of powerful guidelines for long term
sustainability at market place.
 Increment in tariff prices serves as a weakness for the respective agency and deflates its
basic income and profits.
Economical Factors:

 The sturdy financial situations of UK serves because the economic electricity for Marks
& Spencer and fosters it to release new merchandise by utilising the facilities available
within the nation.
 BREXIT has given upward push to inflation which serves as a weakness for Marks &
Spencer as this has a potential to deflate the income and earnings of business enterprise
across the globe (Wheelen and et. al., 2017).
Social Factors:
 Constant adjustments taking vicinity in desires and choices of humans function electricity
for Marks & Spencer because it helps the firm to design and come up with merchandise
that can meet such consumer demands.
 The identity of a purchaser need by the rival company earlier than Marks & Spencer acts
as a weak spot for the organization as this would shift the patron base of respective
company to the rival.
Technological Factors:
 The advancements taking vicinity inside the confines of United Kingdom serve as power
for Marks & Spencer as with the help of these, company can launch new products and
services to attraction to clients in an effective way.
 The previous anticipation of a technological fashion by way of a rival firm acts because
the weakness for Marks & Spencer as this has a chance of substitution connected to it for
the business enterprise.
CONCLUSION
In the last, with the analysis of all above report it is concluded that business environment
plays an important role of organisation to generate effective strategies for organisation. The main
motive of each business is to complete all task and operations in an effective manner for
generating long term survival in a high competitive market. Along with this it is also identified
by management that micro and macro environment both play an important role for each business
that ensure functions and operations of organisation are performed by understanding all aspect.
PESTLE and SWOT are effective tools that lead management to design all operation and
functions with right approach. Further, by acknowledging business environment properly
management is able to complete task with understand of business opportunities and threats.

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