Types of Organization and Their Purposes

This article discusses the different types of organizations and their purposes, including public sector organizations, private sector organizations, and voluntary organizations. It also explores the scope and size of different organizations and the relationship between different organizational functions and their link to goals and objectives.

BUSINESS
ENVIRONMENT

Table of Contents
Introduction......................................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Types of organization and their purposes...............................................................................3
P2 Scope and size of different types of organization..................................................................6
TASK 2............................................................................................................................................9
P3 Relationship between different organization function and their link to organizational goals
and objectives..............................................................................................................................9
TASK 3..........................................................................................................................................11
P4 Identify the positive and negative impact of macro environmental factors on organizational
structure and their business with examples...............................................................................11
TASK 4..........................................................................................................................................13
P5 Internal external analysis of organization with the help of SWOT analysis........................13
P6 Interrelation of strength and weakness with external macro factors....................................13
Conclusion.....................................................................................................................................14
REFERENCES..............................................................................................................................15
Books and Journals:...................................................................................................................15

Introduction
Business is the activity that done by organizations for or earning profits to survive in the
marketplace (Ahmed, Sharif and Ahmad, 2017). Basically business is trade of product or
services that's off by different types of organizations to the customers. There are many types of
organization survive in the market such as private limited company, public limited company and
voluntary company. Three of them are very essential for sustainability and success of business
and country. Because companies are the main source of getting taxes which helps to create
programs that help society. It can be done by three of these types of companies which have
article role and responsibility in the organization. In this context, BBC is taken as public sector
Company that has headquartered in Westminster, London. British Broadcasting Corporation is
the public broadcaster that offers training programs to graduates in businesses so that they can
get good result in the form of new talent. This report covers the size and scope of business of
different types of organization in the market. With some tools and techniques like PESTLE and
SWOT, how organizations deal with external environment and achieve their target goals and
objectives can be explained well.
MAIN BODY
TASK 1
P1 Types of organization and their purposes.
All organizations are not saying because they are different from their size, scope that
form types of organization existing in market. It is very essential for business analyst that they
should know the different kinds of organization survive in the marketplace so that they can take
decisions accordingly. Basically there are three types of organization survive in the market place
such as public limited company, private limited company and voluntary companies. All of three
give a great contribution in the economic growth and success of country (Amponsah and Ahmed,
2017). So that's why it is very necessary for organizations that they choose their types before
analyzing the pros and cons of each type of organization. The detailed knowledge will get from
below explanation of each type of organization:

Public sector organizations
Public sector organizations are those companies which are handled by government. They
are wholly controlled by government of the country so that they give services to the society
rather than making profits. They are more focused on welfare of societies by providing quality of
goods and services rather than cheap products. This type of organization is very necessary for the
welfare of society because there focus is not on profits. Public limited companies run their
business through collection of taxes of government. Government can collect taxes from public
and put all the collected money for welfare of society in return back.
Purpose
The main purpose of this type of organization is to provide best quality of goods and
services to the consumers so that they satisfy their needs and wants rather than making profits.
Example- BBC is the acronym of British broadcasting corporation
Legal structure
Every company has own legal structure that are different from one organization to another
organization. Legal structure of public sector organizations is mentioned below:
 Central government- These organizations are controlled and managed by the authorities
of Central Government. Central Government collects funds from public so that they can
run the business of public sector organizations (Batabyal and et. al., 2016).
 State government- Those organization that is specified for state only are controlled by
state government. They are mainly again control by Central Government because state
government follows all the rules and regulations that are decided by central government.
 Local government- Local government focuses on mainly municipal corporation guitar
under control by local bodies. These types of organization collect taxes from local
peoples and all the pooled money are invest for society welfare. It can be used for
infrastructure and development of local areas.
Private sector organizations

These type of organization are not controlled by government, they have no interference of
government bodies. So they are separate from government decisions and run their business at
their own liabilities. Their liabilities may be limited or unlimited that depend on the nature of
business and size of business.
Purpose
The first and foremost primary objective of private sector organization is to earn
maximum profit from the people. They use their talents and make goods unique which attracts
customers for earning profits through providing at higher prices.
Example- Dyson limited
Legal structure
 Sole proprietorship- Sole proprietorship refers to the ones who wanted to run their
business at their own sake. They did not depend on anyone and because of that they have
unlimited liability. There is no interference of any government or any other individuals
because it run by a single individual (Bloom, 2017).
 Partnership- It refers to the organization that having limited liability and run by two or
more persons. A business that runs by two or more persons which have interdependence
on each other so that they share profits and losses according to the share of capitals.
 Companies- Those organizations that run with the rules and regulation of companies act,
2013. Companies that have limited liability because they have many stakeholders which
invest their capitals into organization for sharing dividends and profits. It is the company
that has artificial personality which runs their business on going concern and does not
affect bye leaving the company through their stakeholders.
Voluntary organizations
This type of organization run not because of making profits, the actually thought about
society welfare. They are basically nonprofit organizations that run on donations and charities by
public. With the use of charities and donations create several programs so that people who are
suffering from difficulties can take an advantage (Bocken, Boons and Baldassarre, 2019).

Purpose
It is very obvious that voluntary organization has not run for any profits, they have main focus on
society welfare because society gives natural resources to the organizations.
Example- British Red crosses society
Legal structure
 Unincorporated associations- This type of organizations have memorandum of
association and they run their business according to them.
 Trust- Trust is the organization that mainly focuses on charities. They basically awaking
people charities for the welfare of other people. They are very important because they
help many more peoples (Gornicka, 2018).
P2 Scope and size of different types of organization.
Organization has many kinds on the basis of their size and scope that are explained in
following points:
 Micro enterprises- They having 0 to 9 employees in their organization and the turnover
is less than 2 million Euros.
 Small enterprises- They are the enterprises which have 10 to 49 employees in their
organization and their turnover is less than 10 million Euros.
 Medium enterprises- It is the type of organization that have 50-250 employees with the
turnover less than 50 million Euros.
 Large enterprises- It is the type of organization that have no limit on employees and
capital. We should more than 50 employees and having more than 50 million Euros
turnover.
Size and scope of different kinds of organization
There are many types of organization which having different purposes, objectives and
functions that can be understand with the following table:
Types of
companies
Purpose Aims and
objectives
Size Scope Service/Products

British
broadcasting
corporation
(BBC) is the
public sector
organization that
deals with
broadcasting the
channels on TV
in UK. It is the
organization that
has a very large
size. BBC has
headquartered in
Westminster,
London that
spread all
relevant
information to
public.
The main
purpose of
BBC is to
being aware
about the
environment
that
surrounded by
them. Their
mission
statements
clearly states
that they act
for interest in
public through
providing of
best services
(Guy, 2017).
The foremost
aim and
objective of the
BBC is to earn
enough profit
so that they can
survive in the
market for
providing the
services to the
public. They
focus on
market share
that directly
shows their
increasing in
profits.
It is the largest
broadcaster in
the world in
terms of number
of employees.
Due to this
reason, it
becomes the
largest
organization run
in the
marketplace
which have
approximately
22000
employees are
working and
having total
assets and
revenues
approximately
1.172 billion
Euros and 4.889
billion Euros
respectively
(Ratten, Ferreira
and Fernandes,
2017).
It has wider
scope because
they serve the
services in
worldwide.
BBC provides web
portals and
broadcasting services
to the public through
many channels on
television.
Dyson limited is
the private
owned company
which deals in
home
appliances. So it
basically a
technology
based company
As it is the
private owned
company so
there first and
foremost
objective is to
earn maximum
profit to lead
the business in
The main
objective is to
become the
leader in the
home
appliances
manufacturer
so that they
capture the
it is the private
owned
companies so
that their
members are
more than 12000
and having net
income around
1.1 billion
It has also wider
scope because
of their number
of employees
but it as
compared to
public sector
organization
they have
Dyson manufactures
home related
appliances which
cover hair dryers,
vacuum cleaner, air
purifiers and desk
fan.

that producers
electrical
appliances for
the sake of
people. It was
established in
1991 in UK.
market. Their
mission
statement
states that they
are trying to
inspire and
motivate
young
generation so
that day used
in knowledge
for making
new products
and services.
whole market
and the chief
their
monopoly.
Euros. limited scope.
There is scope is
depending on
the number of
their employees
working in the
organization
(Hitt and Xu,
2016).
British Red
cross is the the
nonprofit
organization that
do charities and
donations for
welfare of
society. It is the
registered
society in UK.
The main
purpose of
British Red
cross society
is to to provide
charities for
removing
unnecessary
problems of
societies'
people.
Their main aim
is to provide
support so that
they can
maintain their
living standard
in the society
(Ismail, Khater
and Zaki,
2017).
The size of
British Red cross
society is very
small because
they have
approximate
4000 employees
which are ready
to work for the
welfare of
society.
They have very
narrow scope
because charity
is not earning
profit so peoples
are is very few
who work for
nonprofit
organizations.
Providing help and
support to the
suffered people from
any unlike crisis in
UK.
TASK 2
P3 Relationship between different organization function and their link to organizational goals
and objectives.
Dyson is a private limited company that deals with home appliances for customers. They
have lot of functions which required a separate department so that it cannot disguise the
functions and overlapping with one another. organization is not performing a single function that
to sell a products and services they have many more functions such as the recruit and select
human resource, arrange finance for manufacture products and services, finding new things from

the help of research and development. So they have many functions that performed by
organization while doing their business (Julien, 2018). All these functions are helps to achieve
the common goals of organization. It can be better understood with specific department that how
they are linked with organizational goals that is mentioned below:
 Human resource and marketing: Dyson is the large organization that has to hire and
appoint right candidate so that they use their productivity for achieving organizational
goals and objectives. Candidates are required for marketing purpose as they perform the
marketing job so that day analyze the market and identify the needs and wants. After that
they produce right production services which help to on maximum profits and
sustainability in the marketplace. Marketing department of Dyson needs very best
marketers so that they perform their duties very well (Peršič, Markič and Peršič, 2018).
 Production and resources and development: Production of goods and services can be
done only after the research in market that what type of products and services like by
customers. They are very interlinking with each other because without research and
development production cannot be possible and if it possible done it may be not
acceptable by customers.
 Finance and information technology: Finance is the source of purchasing updated
technology so it will increase productivity and profitability. Finance is the backbone of
any business and Dyson is the technology based company which needs more and more
new technologies that create their products unique. It can be done only with the help of
finance because when ansh gives the power to purchase the information and technology.

From the above discussion it is analyzed that organization perform many functions which
are inter-related with each other to obtain and achieve organizational goal and objectives.
TASK 3
P4 Identify the positive and negative impact of macro environmental factors on organizational
structure and their business with examples.
Organization is suffered from many macro and micro environmental factors that affect
the business operations. Macro environmental factors are not in control with organizations and
because they are uncontrollable and unpredictable. Macro environmental factors affects the
business can be positive or negative, it depends upon the reaction of organization and behavior
towards dynamic environment. It is very tough for organization that they have to face problems
which have no clues and create a solution for dealing with them. Upcoming unknown situation
can be good or bad for companies operations. Because it is not necessary that macro or external
factors are always bad for company (Joo and Shin, 2018). It can be better understand with the
help of pestle analysis of Dyson limited. All the positive and negative impact of external or
macro factors are mentioned below with the help of pestle model:

Political factors- These are the factors that include political stability of country which
affects the organization operations (Nguyen, Mickiewicz and Du 2018). When the country's
political position is not stable than it will create many problems such as lots of rules and
regulations from many authorities, no single command from one government, etc. So for Dyson
limited, it is very necessary that they understand the political stability of UK.
 Positive impact- After the separation of Britain from European Union i.e. brexit, it is
analyzed that UK taken advantage of prices. That means Dyson limited sell their products
with similar prices but the cost of production is getting low so they can earn maximum
profits.
 Negative impact- After the brexit, it is not expecting that UK having no side effects from
their separation. Because after the separation the trade in many countries are not allowed
which gives negative impact. For example, Dyson limited is a multinational company that
deals in many countries. If the separation of Britain from European Union does not allow
dealing with the particular country in which they trade. Then it will create a big problem
for them.
Economical factors- They are the factors which are related to economic condition of
country. Dyson limited is a UK based company that should be analyzes the situation of economic
growth and conditions.
 Positive impact- It is very well know that UK has more stable condition and having good
economic growth which give positive impact for the organization of Dyson.
 Negative impact- It can be negative impact when the economic situation of UK are not
well. For example, after the pandemic situation that suffers by whole world including UK
which is one of the most affected countries. It declines the GDP of UK.
Social factors - It include cultures, religions and customs which affects the organizational
behavior and structure.
 Positive impact- When the company accepts all cultures done it will game a positive
result from that.
 Negative impact- But if Dyson limited ignore the importance of cultures and religions
then it will create many conflicts and problems which cannot be dealing easily.

Technological factors - It include all up gradation in technologies and artificial intelligence.
 Positive impact- It is very helpful when Dyson limited makes their product with new
technologies.
 Negative impact- It giving negative impact on organization operations when they use of
solar technologies without understanding the new upcoming up gradation in technology.
Legal factors- One of the most important factors that every company should follow and
faces in their life.
 Positive impact- At present situation Dyson limited cannot fight with any legal situations
so it becomes positive for company.
 Negative impact- When Dyson limited cannot d according to the rules and regulations
and breach any rules which gives negative impact that it will face legal complications.
Environmental factors - Most important factor include nature of environment.
 Positive impact- It is positive and company full fill CSR policy.
 Negative impact- They have face many health related issues if they cannot follow the
right it rules and regulations respective of environmental factors.
TASK 4
P5 Internal external analysis of organization with the help of SWOT analysis.
SWOT is the tool that analyze the internal and external factors of organization which
gives the idea of their strengths, weaknesses, threats and opportunities (Kuntsman, 2016). It is
very well explained from the below table:
Strength Weakness
 Dyson provides new technology in
home care appliances.
 It can ease the customer’s problems in
working conditions (Madhavaram and
Hunt, 2017).
 Prices of goods are very high, which
reduce the number of customers.
 Dyson limited have many lawsuits and
controversies which affects the image
of the business.
Threat Opportunities

 Technological factor can be become a
threat.
 Day to day competition emerging
threats for Dyson limited.
 Dyson limited can take advantage true
online presence.
 The wanted to make their products
globally so they expanded business.
P6 Interrelation of strength and weakness with external macro factors.
It is very obvious that companies’ strengths and weakness affect the external environment
factors positively or negatively. It can be understand with following points:
Political- Dyson is the private company which have low image in front of government so
they get not much importance as compared to public sector organizations. Their type of company
becomes negative for company operations.
Social- Dyson limited produce the products for society welfare as they decrease the
efforts for home care with the help of all religion of employees, so this strength helps to adopt
the social external factors.
Economical- Dyson limited earning very well which gives strength to deal with
unknowingly any finance related problems (Leischnig, Woelfl and Ivens, 2016).
Technological- If the company uses their strengths to innovate their products and it will
cope up with technological factors.
Legal- Dyson limited faces many controversies and law suits which become the
weakness and it will create problems with upcoming legal factors.
Environmental- Dyson limited makes products which spread many hazardous gases that
create problem for dealing with environmental factors.
Conclusion
It is concluded from the above discussion that company have many types such as private,
public and voluntary. They have own size and scope which applied in the marketplace through
proper analysis of macro environmental factors and internal factors. It can be done through pestle
analysis and SWOT analysis which give a basic idea for macro and micro environmental factors

that affect the business organization. This analysis helps to cope up with all upcoming situations.
The strengths and weakness are very obviously related to deal with external factors.

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