Business Environment: Types of Organizations, Interrelationships, and Impact of Macro Environment

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.........................................................................................................................5
Significance of interrelationships between these departments:.............................................................6
LO3 & LO4....................................................................................................................................................6
Covered in PPT.........................................................................................................................................6
CONCLUSION...............................................................................................................................................6
REFERENCES................................................................................................................................................8

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.
Public:
The public sector organisation those businesses that are operating and conducting
operations with the motive of not for profit government owned enterprises. This type of business
organisations provides social services to the customers with the ultimate aim of supporting the
society and fulfilling the social 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).
Legal structure-

 Central- These types of public organisations are managed and controlled by the central
government. State- These organisations are managed and controlled by central government only. Local authorities- These are controlled, owned and managed by the local councils.
(Globocnik, Faullant and Parastuty, 2020)
Private:
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
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).
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 of the area or the
country.
Legal structure- Sole proprietorship- These consist of the single owner who manages and controls the
daily operations of the business. Partnership- These are owned and controlled by two or more person who mutually work
for achieving the objectives of the company. Companies- These are artificial personality who are distinct from its owners. They have
their common seal as they are separate legal entity.
Voluntary
Third form of business organisation that are operating in the business environment and
provide their specific services to the customers are voluntary 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.
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 develop.