Business and Business Environment (Part 1)

This presentation discusses different types of organizations, their purposes and legal structures, the scope and size of different types of companies, and the relationship between business functions and organizational structure and goals.

Business and business
environment
(Part 1)

Table of contents
• Introduction
• Different types of organisations, their purposes and legal
structures
• Scope and size of different types of companies
• Relationship betwixt business functions, their linkage
with organisational structure and goals
• References

Introduction
This presentation is based on business environment
which should be considered by all companies while
making any important decisions In this presentation,
different types of organisation, their size and scope
has been determined. Along with this, different
functions of Marks and Spencer has been evaluated.

Types of organisations, their purposes and
legal structures
There are various kinds of organisations which operates
different kinds of activities for providing high customer
satisfaction. However, it is necessary for them to make
any important decision after considering their business
environment.

Cont...
But there are some other
sectors based on
ownership which are
discussed as below:
• Public sector
• Private sector
• Voluntary sector

Cont...
PUBLIC SECTOR: It gives core attention to economic
and national conditions of country. It provides various
kinds of government services which involve police,
military, infrastructure (buildings, bridges, etc.) and
public transit.

Legal structure of Public sector
Central government: It is considered as characteristic of a
unitary as well as government of a nation-state. It works as
Federal Government which distributes its power at different
authorised levels. Structure of central government depends upon
its country.
Local government: It is considered as the lower tier of
administration in a given state. It contrasts with offices at state
level which are considered as central government.

Cont...

Cont...
PRIVATE SECTOR: It is considered as the most
important part of economy because it generates various
employment opportunities for people so that they can
improve their standard of living. Also, it is known as
citizen sector. It is mainly operated by entrepreneurs for
the purpose of profit maximisation.

Legal structure of Private sector
Legal structure of private sector is divided into four
sectors and these are follows as under:
• Sole trader
• Partnership
• Franchising
• Public limited company

Cont...

Cont...
VOLUNTARY SECTOR: It is also considered as
community sector or non-profitable organisation. In is
that third sector which contrast with private and public
sector. This type of organisations provides various kind
of services to poor people so that they can fulfil their
basis needs and wants.

Scope and size of different types of companies
On the basis of ownership organisations are categorised
in three sectors which are private, public and voluntary.
All these companies have their own purposes which
makes them different to each other.

Cont...
Size and scope of different companies are follows as
under:
• Private sector
• Public sector
• Voluntary sector

Cont...
PUBLIC SECTOR: In involves those government or
legal bodies which provides various services to general
public so that they can make improve their living
standard.

Cont...
PRIVATE SECTOR: Privately held companies are
those which gives core importance to profit
maximisation and customer satisfaction. In this, sector
there is no role of government. In simple words, private
organisations are controlled by people who owns them.

Cont...
VOLUNTARY SECTOR: It involves those companies
which are considered as non-profit organisation. They
do not generate profit, in fact big celebrities and rich
people hive them donation so that they can enhance
social welfare.

Relationship betwixt business functions, their
linkage with organisational structure and
goals
In business enterprise, various people come and work
together for accomplishing some common goals which
is set by its top management. Marks and Spencer is a
British multinational company which is highly popular
for its designer cloths, home products and food items.

Cont...
This organisation is established to fulfil some major
goals which are follows as under:
• Profit maximisation
• Customer satisfaction
• Organisational development

Cont...
Different functional units of M&S are follows as under:
• Human resource management
• Marketing and sales
• Production

References
Onetti, A. and et. al., 2012. Internationalization, innovation and
entrepreneurship: business models for new technology-based firms.
Journal of Management & Governance. 16(3). pp.337-368.
Palo, T. and Tähtinen, J., 2011. A network perspective on business models for
emerging technology-based services. Journal of Business & Industrial
Marketing. 26(5). pp.377-388.
Pikka, V., Iskanius, P. and Page, T., 2011. The business enabling network–a
tool for regional development. International Journal of Innovation and
Regional Development. 3(3-4). pp.324-344.

Thank You