Types and Purposes of Organizations: A Study on Business and the Business Environment

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explain the different types and purposes of an organization............................................1
P2 Define the size and scope of different type of an organization.........................................3
TASK 2............................................................................................................................................5
P3 Examine the relationship between organizational functions and how they link with
business objectives and structure............................................................................................5
TASK 3............................................................................................................................................6
P4 Identify the positive and negative impacts of macro environment on business operations.
................................................................................................................................................6
TASK 4............................................................................................................................................8
P5 Analyse the internal and external environment of an organization by using SWOT
analysis...................................................................................................................................8
P6 Explain how strengths and weaknesses interrelated with external macro factors.............9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business is defined as those economic activities in which people work at collaborative
manner within the process of buying and selling and earning profits. On the other hand
operational activities of the business directly reflect the company and their abilities of earning
profit. These activities lead in developing prominent customer relationship through which market
prominence can be attained. There are various factors which are included in internal and external
environment such as competitor’s position, suppliers, employees and management (Aithal,
2017). These factors lead the organisation to deal with growth of the organisation and to
recognise opportunities through which prominent opportunities can be grabbed in order to get
business succession. Under this report Network Rail is taken as private organisation, Dyson is
taken as private organisation and for voluntary organisation British Red Cross Society is taken.
Under this report discussion regarding size, scope, legal objective are undertaken. Besides this
SWOT and PESTLE analysis is performed along with analysing positive and negative
dimensions as well.
TASK 1
P1 Explain the different types and purposes of an organization.
Organisations are defined as group of people which are working for a common objective.
These are basically of two types, such as one is working to earn profit and other one is working
to serve social cause. Varied types of organisation are elaborated as under: Public sector organization: This is categorised as a business organisation which are
owned and governed by government and provides services to citizens. The major
objective of these organisations is not to gain any profit but to provide welfare to public.
Network rail is one of the best examples of public organisation.
Purpose: The major purpose of public sector organisation is to provide benefits to community
which are associated with public goods and government services.
Legal structure: Central government: These business organisations are controlled by government and all
functionality of this organisation are formed and managed by central governmental
authorities. These are responsible for collecting funds from public and use the same for
providing benefits to population (Viriyasitavat and et. al., 2018).
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 State government: These entities are established over limited area and these are
controlled by central government (Asongu and Odhiambo, 2019). Local government: These kind of institutions are owned by local authorities and
community such as municipal and any other corporate body. In the form of council tax,
money is collected by these organisation.
Private sector organization: These business organisation are not having any intervention of
government in their functions as these entities are owned and regulated by group of individual or
single person with the major objective of earning profits. Dyson is a renowned British
organisation which deals in electronic appliances such as vacuum cleaner, hair dyer and many
more.
Purpose: The goal of these organisation are to earn profit and enhance working capabilities by
hiring skilled and talented workforce.
Legal structure: Sole proprietorship: These businesses are owned and regulated by a single authority for
the major purpose of making high profits. All the risk and reward within these businesses
are borne by single person as they are the only one controlling body. Partnership: These businesses are framed by collaborating two or more person in one
business and they bound with a partnership agreement. All the associated person are
called partners and all the decisions are held with all the partners regarding profit loss and
debts sharing. This agreement is bound with partnership Act and all the provisions are
required to be framed in appropriate manner. Limited company: These are considered as Joint stock venture in which separate legal
entity is being provided to their owner. All the running companies in UK are required to
follow Companies Act in order to run their business in effective manner.
Voluntary organization: This is a group which is formed by number of person for attaining
common purpose and aims. British Red Cross Society is one of the prominent voluntary
organisation which is committed to help people irrespective of their origin and nationality.
Purpose: Purpose of these organisation is to provide societal benefits to people and eradicating
societal problem. These organisation are not focused over earning profits as they are dedicated to
the society (Zakaria, Hashim and Ahmad, 2016).
Legal structure:
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