Types and Purpose of Organization in Business Environment

Business and business
environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1 Different types and purpose of organization..........................................................................3
P2 Size and scope of different types of organization..................................................................5
M1 Analysis of structure, size and scope of different organization............................................6
LO 2.................................................................................................................................................7
P3 Relationship between different organizational functions and link with organizational
objective and structure.................................................................................................................7
M2 Advantage and disadvantage of interrelationship between organizational functions...........8
D1 Critical analysis of complexity of different types of business structure................................8
LO 3.................................................................................................................................................8
P4 Identify negative and positive impact of macro environment................................................8
M3 Support analysis of macro environment..............................................................................10
LO 4...............................................................................................................................................10
P5 Conduct internal and external analysis of organization for strength and weakness.............10
P6 Explain strength and weaknesses interrelate with external macro factor.............................12
M4 Justify internal factor affect to business decision making..................................................12
D2 Evaluation of macro and micro factor.................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Business environment is the sum and collection of all the internal and external factors
such as the employee, customers, supply, demand, client, management, owner and other
activities. This refers with current and present trends which are happen at marketplace. The
present report is based on the John Lewis partnership firm which a brand of high end department
stores operating throughout the Great Britain. The type of company is public limited company
and belongs with retail industry. Present the company have 38100 numbers of employees with 51
stores. The report will explains different types and purpose of organization as well as explaining
size and scope of different organization. Report will explain relationship between different
organizational functions and link with objectives and structure. This will identify negative and
positive impact of macro environment upon the business operations and conduct internal or
external analysis like strength and weakness. At the end of report will also explain strength and
weaknesses interrelate with external macro factor.
LO 1
P1 Different types and purpose of organization.
There are different types and purpose of organization which establish for achieving goals
and objective of company in effective manner. There are two types of organizations like profit
making and non profit making business. Explanations of both are as follows:
Profit making business: profit making organization has one main goal and objective for
establishing their business which is earn higher level of money and profits with their business
(Aithal, 2016). These kind of businesses are provide products and services against of money.
Non profit making business: non profit making business has focus on keeping itself for
going in effective manner at the market place. These kinds of businesses are only providing
better services to people without any money.
Different types of organizations
Private organization:
Private organization is type of organization which is run by individual people and
companies in order to earn higher profit margin. For establishing this kind of organization has
main purpose to grow at market place with effective economy. Private organization is also
having certain kinds which are explains below in effective manner are as follows:
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 Sole proprietorship: is types of businesses are owned individual people. This type of
businesses have one goal is to retain effective margin of profits with purpose to keep cost
lowers. On the other side, objective of businesses is to make money for fulfil goals. The
legal feature is minimum government unlimited liability. For example: beauty salon, ice
cream parlour and another street shows are counted into sole proprietorship business.
 Partnership firm: partnership organization is owned by two or more people. The main
goal of partnership firm is to share profit and losses equally within the business in
effective manner. Another objective of company is to bring together their skills and
resources for get effective success at marketplace (Aydiner and et.al., 2019). Like the
Berkeley partnership firm is the best example of Partnership Company.
 Public limited company: public limited company is started their business with limited for
share. This kind of companies is share take of share from market and earns money with
market and with customers. The goal of company is to earn higher profit and purpose is
the happiness of all our members by satisfying needs and wants of employees in effective
manner. For example: john Lewis is the public limited company who has ability to
sustain and enhance position both as an outstanding retailer and employee ownership.
 Private limited company: this company is started their business entity with owner is
completely liable for their share. This type of company has their effective goal and
purpose of earn money with market by selling product and services on lower price.
Public sector:
Public sector organization is owned and started by government in order to provide
services to people. This type of organization have effective goal to provide better services to
people and doing welfare. The best example of public sector organization is NHS, which is
provide free and better medical services to people always protect to them with any injuries and
another affects (Erasmus, Strydom and Rudansky-Kloppers, 2016). The main feature of company
is to provide comprehensive services to people with objective is to keep safer to all the people in
effective manner.
Voluntary sector:
This type of organization is including all the social activities that are undertaken into the
non profit organization. OXFAM is the independent charitable organization which is focus on
the alleviation of global poverty line. The main goal and purpose of establishing organization is
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