Size and Scope of Different Types of Organisations

BUSINESS AND
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Section 1 (LO1 and LO 2)...............................................................................................................1
Explain different types and purpose of organisation public, private and voluntary sector with
their legal structure......................................................................................................................1
Explain size and scope of range of different types of organisation............................................5
Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisation................................................7
Explain relationship between organisational function link to organisational objectives and
structure.......................................................................................................................................7
Analyse the advantages and disadvantages of interrelationships between organisational
functions and the impact that can have.......................................................................................9
Provide a critical analysis of the complexities of different types of business structures and the
interrelationships of the different organisational functions........................................................9
Section 2 (LO3 and LO 4).............................................................................................................10
Identify positive and negative impact of macro environment upon business operations.........10
Apply appropriate PESTLE model to support analysis of macro environment........................12
Internal and external analysis of specific organisation to identify strength and weaknesses . .12
In what way strength and weaknesses interrelate with external environment..........................13
Apply appropriate SWOT analysis to justify how it influence decision making......................14
Critically evaluate the impacts that both macro and micro factors have upon business
objectives and decision-making................................................................................................14
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Business and Business environment refers to an effective term that involves the internal
and external factors which may affect the operations and functions of the organisation that
considers the customers, management, supply & demand and regulations of the firm. It is an
important concept for every business enterprise because it helps in fulfilling the expectations of
the customers in an appropriate manner. This report is based on the various types of the
organisation considering their purpose that will impact their sustainability in the marketplace.
Further it involves the size and scope of the various types of the organisation that is helpful in
enhancing the knowledge regarding completing this project about the different companies.
Further this study reflects the interrelationship between various organisational function and also
link it to the business structure that helps in attaining the overall objectives of the firm. This
inculcates the internal and external factors that may affect the overall operations of the business
and its profit earning. At last interrelate the various strength and weaknesses with the PESTLE
analysis extrinsic factors(Prajogo, 2016).
MAIN BODY
Section 1 (LO1 and LO 2)
Explain different types and purpose of organisation public, private and voluntary sector with
their legal structure
Private organisation
It refers to that type of the organisation which is established for – profit earning by an
individual or a group of individuals. This type of business venture are operated by the federal
body but they are not controlled by the government. It includes sole proprietorship, partnership
and company that earns a profits according to their size and purpose. The best example of this is
the Morrisons, which is British grocery company in the UK that deals in varieties of product
range with the main of earning profits(Čepel and et. al., 2018).
Purpose- It major aim is to offers the best quality products to the customers by focusing on their
needs and wants so that company will sustain for large period and earn high profits. Like
Morrisons, company always do more emphasis on their offering which is attractive and fulfilling
customers needs for gaining high revenues.
Legal structure
1

 Sole proprietorship- It refers to that business venture which is owned and operated by a
single individual and take all the responsibilities related to gaining profits and bearing
risk. As they face little legal boundation for profit earning(Cherunilam, 2016).
 Partnership- This type of venture are operated by two or more than two person for
sharing the profits and losses. Partnership firm will operated by including some
regulations and guidelines under the partnership deed where dividation of profits and
liability can be maintained according to the partners interest.
 Company- This type of organisation is of two types which is public limited and private
limited. When company will arrange and collects the funds form general public than it is
called public limited and if the monetary value are invested by privately that in known as
private company. Both types of company are working for gaining higher profits where
liabilities and expenses are sharing among various shareholders. Morrisons is belong to
this legal structure that is working for gaining higher profits.
Public organisation
It defines that category of an organisation which is work under the guidance of
government body because of focusing on welfare of the company. Example of public sector
organisation is BBC that is largest public service provider company in UK(Bitkowska, 2015).
Purpose- The main objective of public organisation is to provide the benefits to the society
people that helps in enhancing their living standards. It is generally supported by the government
of the country. As BBC main purpose is to provide the entertainment and news providers
services to the public so that they will know the current portfolio of the nation in which they
stay.
Legal structure
 State- This aspect is accountable in front of central authority but maintain their control in
the particular region.
 Local- This legal structure is only take action for their local area and accountable to
central and state government.
 Central- It is high level authority that has high power to controlling the local and state
government for the welfare of the whole country and society. In this BBC group is
controlled by this legal structure.
Voluntary organisation
2