Business and The Business Environment- P1 Different Types of Organisations

Business and The Business Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types of organisations and their purpose...........................................................3
P2 Size and scope of different types of organisations............................................................5
TASK 2............................................................................................................................................7
P3 Relationship between different organisational functions..................................................7
TASK 3............................................................................................................................................9
P4 Positive and negative impact of macro environment on business environment...............9
TASK 4..........................................................................................................................................11
P5 Internal and external analysis of ZARA to identify their strengths and weaknesses......11
P6 Strengths and weaknesses of external macro factors......................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Business environment refers to accumulation of external and internal factors like
customers’ needs and expectations, employees, management, supply and demand, economic
changes, market trends, social trends, etc. These factors have specific impact on functioning of
organisation and decision-making process (Business environment, 2018). In present report,
ZARA is considered in private sector, NHS in public sector and Oxfam in voluntary sector
organisation. Size, scope and purpose are discussed, strengths, weaknesses and interrelation with
macro factors are provided. Furthermore, PESTLE and SWOT analysis has been done.
TASK 1
P1 Different types of organisations and their purpose.
Private organisation
It is referred to as sector which is run by franchises, individuals and by partnership rather
than by government. ZARA is an apparel retailer which is headquartered in Arteixo, Spain. It
owns brands like Inditex group, Bershka, Oysho, Uterque and many more. It was founded in
2002.
Purpose
ZARA is a Spanish fast-fashion retailer organisation. Their purpose is to bring
charismatic and amenable fashion sense and enhance quality of their customer's services
(Chetwood and et. al, 2014). For this they have included RFID (radio frequency identification
technology), making usage of cutting-edge systems for tracking location of garments and make
them available to customers rapidly. ZARA follow functional structure which help them in
effectively manage and maintain business operations and functions in better manner.
Legal Structure
Legal Structure of private organisation is shown below:

 Partnership: It is defined as unification of different people who starts a business together.
Agreement is signed by all partners which is referred to as deed of partnership. Example
can be doctors, advocates, etc.
 Sole proprietorship: It is defined as sector in which individuals runs their business
individually and are responsible for every profit or loss incurred within organisation.
Example is hairdressers, market traders, newsagents, etc.
ZARA is under sole proprietorship in which they run business operations in smooth
manner and gain high income and profitability.
Stakeholders
Amancio Ortega Gaona is founder and former chairman of ZARA.
Public organisation
These sectors or organisations are possessed and regulated by government. NHS
(National Health Service), is a public organisation. It was founded in 1948 with a purpose that
services must be universal and must be delivered for free.
Purpose
Motive of NHS is to acknowledge need of every individual and provide high standards of
professionalism and excellence. Their motive is to provide healthy lives to maximum number of
people.
Legal structure
It is necessary for all organisations, it is shown below:
 State Government: There is constructive sharing of political and legal rights between
national and state authorities. They have rights to make formal decision without taking
preceding permission from central government.
 Local Government: They includes local governance authority who basically operates all
their duties, functions from regional and local level
 Central Government: Within UK, they have rights to formulate decisions related with
security of people from terror attacks, distribution of budgets related with treasury and
security of nation.
The legal structure of NHS is Central government where they are take decisions related to
business operations and its functions.
Stakeholders