Understanding Different Types of Organisations and Their Interrelationships

This report provides an overview of different types of organisations, including public, private, and voluntary sectors, along with their purposes and legal structures. It also explores the interrelationships between various organisational functions and their linkage with organisational objectives and structure. The significance of interdepartmental coordination is discussed, highlighting its impact on achieving organisational goals and objectives. The report concludes with the importance of analysing the business environment and conducting PESTLE and SWOT analysis to effectively deal with its complexities.

Business Environment

Contents
INTRODUCTION.....................................................................................................................................3
LO1 & LO2................................................................................................................................................3
(I) Different types of organisations with their Purposes and Legal Structures.........................................3
(II) Interrelationship between different Organisational Functions and Their Linkage with Organisational
Objectives and Structure.........................................................................................................................6
Significance of interrelationships between these departments:.............................................................7
LO3 & LO4................................................................................................................................................7
Covered in PPT.........................................................................................................................................7
CONCLUSION..........................................................................................................................................7
REFERENCES..........................................................................................................................................9

INTRODUCTION
Business environment consists of various factors including internal as well as external
factors. Internal factors include customers, suppliers, technological advancement etc. whereas
externalities factors include political stability, social factors, legal factors etc. Thus, it is
important for every kind of business organisation such as private, public or voluntary to analyze
these factors and deal with them effectively (Bocken Rana and Short, 2015) (What Is Business
Environment? - Definition & Factors. 2019). The present assignment report is based on X, Y and
Z which is taken as private, public and voluntary sector respectively. The report discusses the
different kinds of sector along with their legal structure, interrelationship between various
departments and other important aspects.
LO1 & LO2
(I) Different types of organisations with their Purposes and Legal Structures
Organisations the combination of number of operations and practices that are developed
with focus on certain activities performed in respective manner to attain the organisational goals
and ultimate objectives for which the business was established at the initial level. Every
organisation is unique and separate from one another and there are numerous factors which
makes them indifferent (Shirodkar, Strange and McGuire, 2020). There are commonly 3 types of
organisations on the businesses are divided in three segments that are public private and
voluntary. The all the three types of organisational structures and types are elaborated below in
the table.
Basis Public Private Voluntary
Meaning The public sector
organisation those
businesses that are
operating and
conducting
operations with the
motive of not for
profit government
owned enterprises.
The second type of
business organisation
is a private entity that
is developed for and
concerns with the
profits they will be
earning by making
sales and purchase
transactions. The
Third form of
business organisation
that are operating in
the business
environment and
provide their specific
services to the
customers are
voluntary

This type of business
organisations
provides social
services to the
customers with the
ultimate aim of
supporting the society
and fulfilling the
social purpose.
private business
entities are developed
with a main motive of
earning money and
profits and they are
both government
owned or private
owned (Deasy and et.
al., 2016).
organisations. This
type of business
includes those bodies
that carries out social
activities that are
specifically
performed by special
not for profit business
owners and
enterprises that are all
non governmental in
nature.
Purpose The key purpose of a
public sector
enterprise is to
deliver goods and
services to public
which also involves
governmental
services like military,
police, public
infrastructure and
many other for
betterment of the
society (Yarimoglu
and Gunay, 2020).
The private owned
businesses are an
integral part of
economic
development and a
country’s success as
an individual
operational unit. As
well as the privately
owned business
organisations also
plays a vital role in
growth, development
and generation of per
capita income of a
country. Thus, its
purpose is
specifically reflects
upon widening GDP
The third form of
business entity is
voluntary
organisation that is
comprised of various
organisations and
established with sole
purpose of serving
the society and
providing them all
the required benefits
for enriching their
lives and social
status. Also the
voluntary
organisations create
social wealth and
help the society to
improve as well as

of the area or the
country.
develop.
Relation to the
chosen
organizations
As an example of a
public company GM
motors is considered
which is an American
multinational
corporation the deals
in automobile sector
by manufacturing,
marketing and
distributing vehicles
and vehicle parts.
Moon over the
company also provide
financial services to
the potential buyers
(Georgescu and
Popescul, 2015).
For taking up a strong
example of a private
organisation Aldi is a
a private retail
organisation that is
offering its services
and products in more
than 20 countries
around the globe
since 1946. The
company is a
discount supermarket
chain with over
10000 stores around
the globe.
Taking the example
of Cancer research
UK as a voluntary
organisation which is
offering social
services of conduct in
research and
campaigns for
spreading awareness
about cancer and
preventing it from the
society (Draijer,
2020). As a social
servicing
organisation the
companies seek to
spread awareness
amongst all the
segments of the
population in order to
eradicate the disease
from all levels.
Legal structure Being a public
company and with
involvement of
government in policy
making and
regulation GM
motors which it
Aldi is a private
organisation which is
owned by a German
family in partnership
does the legal
structure is less
complicated. The
The legal structure of
Cancer research UK
by being a voluntary
organisation is
dynamic as the
company is supported
by several social

follows is divisional
structure due to its
multinational nature
as the company is
widespread
geographically
(Globocnik, Faullant
and Parastuty, 2020).
companies regulation
and legal status is
mind it in an
agreement which is
known as partnership
deed.
groups and activists
who strengthen their
infrastructure and
progress. The
company hold an
effective
entrepreneurship
which is supporting
their internal
structure that
involves nine clinical
trial units, 17
experimental cancer
medicine centres add
7 graduate training
program.
(II) Interrelationship between different Organisational Functions and Their Linkage with
Organisational Objectives and Structure
Contribution of departments decides the growth and success of an organisation thus it is
important for the management of GM motors to bring all managers of every division together
and coordinate each other in order to achieve organisational goals and objectives within specified
time period. Here are such coordination and interrelationships between different departments:
1. Marketing and Human Resource Department: Marketing division is responsible to
advertise company’s offerings with features so as to attract buying interest of targeted
customers whereas HR division is responsible to recruit skilled and knowledgeable
employees so as to increase profitability of company. In the context of GM Motors,
marketing can support HR manager in bringing skilled applicants to an organisation for
vacant job position whereas HR division also supports marketing department to recruit
skilled candidates who have adequate knowledge about marketing techniques. Thus,

supporting each other by both departments helps GM Motors to achieve its desired goals
and objectives (Hillary, 2017).
2. Purchasing Department and R & D Department: Purchasing division acquire raw
materials at lowest prices so as to increase profitability of company whereas R&D
division conducts research to bring out new and innovative ideas that can be profitably
converted into products and services. Both departments can help each other by giving
useful information that reduces cost in their execution and encourage profitability and
productivity (Kolk 2016).3. IT Department and Finance Department: IT division manages records of every
transaction made by GM Motors on daily or monthly basis so as to forecast the sales and
profit whereas finance division raises funds from different sources such as bank loan.
Both these departments support each other by determining actual financial position of an
organisation so that corrective actions can be taken for further improvement by the
management.
Significance of interrelationships between these departments:
Every departments including marketing, HR, Finance etc. contributes maximum support to
the achievement of organisational goals and objectives within pre-determined time period. It
builds healthy relationship among managers of different departments which directly makes
positive impact on working environment within an organisation. It motivates employees to
increase their performance level and contributes equally so that productivity and profitability of
GM Motors can be maximised (Prajogo, 2016).
LO3 & LO4
Covered in PPT
CONCLUSION
It can be concluded from the above report that business environment contains lots of
complexities which can affect every kind of organisation such as private, public and voluntary
thus it is important for management to analyse the factors of business environment such as
political, social, technological, employees’ behaviour, suppliers changing prices etc. For this,
PESTLE and SWOT analysis are required to conduct so that corrective actions can be taken to
deal with them more effectively and efficiently.

REFERENCES
Books and Journals
Bocken, N. M. P., Rana, P. and Short, S. W., 2015. Value mapping for sustainable business
thinking. Journal of Industrial and Production Engineering. 32(1). pp.67-81.
Deasy, S. and et. al., 2016. Controlling use of a business environment on a mobile device. U.S.
Patent 9,247,042.
Georgescu, M. and Popescul, D., 2015. Social Media–the new paradigm of collaboration and
communication for business environment. Procedia Economics and Finance. 20.
pp.277-282.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
Prajogo, D. I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
pp.241-249.
Newman, C., Rand, J., Tarp, F. and Trifkovic, N., 2020.Corporate social responsibility in a
competitive business environment. The Journal of Development Studies, pp.1-18.
Globocnik, D., Faullant, R. and Parastuty, Z., 2020. Bridging strategic planning and business
model management–A formal control framework to manage business model portfolios
and dynamics. European Management Journal, 38(2), pp.231-243.
Draijer, C., 2020. Best practices of business simulation with SAP R/3. Journal of Information
Systems Education, 15(3), p.5.
Yarimoglu, E. and Gunay, T., 2020.The extended theory of planned behavior in Turkish
customers' intentions to visit green hotels. Business Strategy and the
Environment, 29(3), pp.1097-1108.
Jain, R.K., Martin, J.D., Chauhan, V.P. and Duda, D.G., 2020. Tumor microenvironment:
vascular and extravascular compartment. In Abeloff's Clinical Oncology (pp. 108-126).
Content Repository Only!.
Shirodkar, V., Strange, R. and McGuire, S. eds., 2020. Non-market Strategies in Intercountryal
Business: How MNEs capture value through their political, social and environmental
strategies. Springer Nature.
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