Different types of organisations and their purpose

This report discusses the different types of organisations and their purpose in the business environment. It also explores the growth of the international business environment. The report focuses on private, public, and voluntary organisations and their functions.

BUSINESS AND BUSINESS
ENVIRONMENT
1

INTRODUCTION 3
LO.1 3
P.1. Different types of organisations as well as their purpose and the growth of the international business
environment. 3
P.2. Explanations of private, public and voluntary organisation. 6
LO.2 7
P3 Explain the relationship between different organisational functions and how they link to organisational
objectives and structure. 7
LO.3 9
P. 4.Identifying and discussing the macro environmental factors that influence the retention of business. 9
P.5. External and Internal analysis for M&S company to identify strength and weaknesses and their impact on
decision making process. 10
P.6. Explain how strengths and weaknesses interrelate with external macro factors for Tesco. 11
CONCLUSION 11
REFERENCES 12
2

INTRODUCTION
Business environment is the most important term in the that defined the combination of
both macro as well as micro factors that impact the entire business operations and function of the
businesses. It is the collection of all individuals, companies and other factors which might or
might be not under the control of the company but it directly or indirectly affects the
performance. profitability, growth and survival of the company ( Neubauer and Lank, 2016). In
this present report Marks and Spencer company will be chosen for assessment. It is a major
British multinational retail company in United Kingdom. It was founded in 1884 by Sir Michael
Marks and Thomas Spencer. Its headquarters are located in London, United Kingdom. The
revenue of the company is £10.622 billion in 2017. This present report will cover different types
and purposes of organisations; public, private and voluntary sectors and legal structures.
Moreover, the size and scope of a range of different types of organisations will also include in
this assignment. Further this study will also make understand relationship between different
organisational functions and how they link to organisational objectives and structure.
LO.1
P.1. Different types of organisations as well as their purpose and the growth of the international
business environment.
In the business condition there are diverse types of organisation exist and these are
extremely fundamental factors in the development of global business condition. In this manner, it
is exceptionally huge to comprehend the genuine idea of open, private and voluntary
organisation that present in the business condition.
Private Sector Organizations-The organizations which are possessed and controlled by
individual or gatherings of individual are known as private sector organizations. These
organizations are not the part of government or state specialists. These organizations are likewise
a vital piece of the economy. The fundamental reason or expectation of privately-owned
businesses are to gain high measure of benefit by expanding sales and market share. With the
end goal to begin a privately-owned business the most extreme breaking point of individuals are
confined to 50 and least 2. The membership of offers of privately-owned business isn't took into
account open. Marks $ Spencer is a private division organisation which is working with the
expectation of acquiring tremendous measure of benefit by expanding deals and in addition of
the market share (Cairncross, 2014). Few examples of private sector organizations are
Developers, Designers, Repairmen, Accounting Tax, Dentistry, Apple, Morrison. Tesla and so
forth and numerous other private part organizations.
There are a few advantages and downsides of private area association which are-
Advantages Disadvantages
Every one of the individuals in the
private association are known to
The offer of private constrained
organization isn't transferable it is limited.
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every others.
Proprietor has all the intensity of
control of whole company.
Statutory gathering are a bit much
in the private company.
There are two executives to run the
organization (Leonidou and et.al.,
2015).
Obligation and liability of the
considerable number of individuals
are limited.
The greatest furthest reaches of the
considerable number of individuals are
confined which isn't more than 50.
Private associations are not permitted to
issue any prospectus to public.
Public Sector Organizations-The organizations which are owned along with control by
government of nation. Government incorporates administrative, state, metropolitan or common
government. The while control of organization is stayed in the hands of government legitimate
specialists. The enrolment are constantly open to the overall population. With the end goal to
begin an open public organisation, there are absolutely 7 least number of individuals are
requiring and there is no greatest breaking point of individual. Outline is the principle wellspring
of issuing offers to open. Organisations have more noteworthy supervision as well as control in
this type of organisation. Every one of the individuals have limited obligation or liability. The
fundamental reason or goal of open restricted organizations are the improvement or welfare of
the societies. They create work in the economy. The stock of public sector organization can be
procured by any individual. The arrangement of these organisations are legal. A few precedents
of open restricted organization are British Petroleum (BP), Burberry Group PLC and so forth.
There are a few advantages and disadvantages of open segment association which are-
Advantages Disadvantages
The risk of the considerable number of
individuals are restricted. The investors are
free of any hazard and harms.
Due to substantial number of investors the
hazard is broken up.
Retirement and passing of any investor does
not influence the life of company.
In these organizations in light of tremendous
number of investors it is difficult to protect
security and also mystery.
With the end goal to begin open restricted
association, it required gigantic measure of
lawful customs.
In broad daylight restricted organizations
there is absence of open intrigue.
Every one of the individuals in the
organization are unknown to one another (Ji-
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fan Ren and et.al., 2017).
Voluntary Organizations- The organisation which are claimed as well as control by
individual or gathering of person who wilful go into a consent to shape an organization to
accomplish the objectives and destinations. These are organisations which are shaped with the
goal of doing welfare of the general public, this is the essential thought process of the
organization. They additionally procure benefit however the whole benefit they earned are
utilized for the welfare of the general public. These organizations have their legitimate status or
structure by being a voluntary organisation limited by guarantee. Few examples of voluntary
organisation are Welcome Trust, Oxfam, Age UK and so on.
There are a few advantages and downsides of wilful association which are-
Advantages Disadvantage
These organisations are working for the
welfare and advancement of the societies.
These organisations are not at risk to settle
insect government expense as they are
completely exempted.
They are additionally called as cost-
effective organisation.
Voluntary organisation faces absence of
assets.
They additionally groups less unwavering
quality because of absence of resource.
P.2. Explanations of private, public and voluntary organisation.
Privately Sector Company
Background- Marks and Spencer company will be chosen for assessment. It is a major
British multinational retail company in United Kingdom. It was founded in 1884 by Sir Michael
Marks and Thomas Spencer. Its headquarters are located in London, United Kingdom. The
revenue of the company is £10.622 billion in 2017 (Stacey, 2016). Company has 84,939
employees in 2017 (Organisational Structure of Marks and Spencer, 2017). Marks & Spencer
has unveiled plans to close up to 14 shops, putting around 500 jobs at risk, as the high street
stalwart takes a more ruthless approach to its struggling stores.
Mission-"We improve what makes a difference, together."
Vision-"To be the most very esteemed business by clients, networks and our faithful and
submitted associates.
Business Objectives - "The principal targets of Marks and Spencer is to supply better
consumer loyalty by amplifying deals and benefit of organization."
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Organisational Structure of Marks and Spencer -The M&S organization is
legitimately shaped by the structure which is claimed and controlled by two individuals and they
had come in the consent to share benefit and misfortune similarly.
Figure 1Organisational Structure of Marks and Spencer
(Source: Organisational Structure of Marks and Spencer, 2017)
Public Sector Organisation
Background- British Petroleum (BP) is open restricted organization. It is worldwide gas
and oil organization of United Kingdom which was established in 1909 (British Petroleum (BP)
Organizational Structure, 2017). Its home office is situated in London and England
(Organisational Structure of British Petroleum, 2017). It is 6th biggest oil and gas organization
on the planet. BP is vertically incorporated organization working in every one of the territories of
gas and oil industry that incorporates investigation, creation of refining, dissemination and
promoting petrochemicals, age of intensity as well as exchanging. In biofuels and wind control
BP has sustainable intrigue. The income of the organization is $244.58 billion out of 2017 and it
utilized 74000 employees in last 2017.
Mission-"To enhance every one of the zones and remain as the main worldwide vitality
association on the planet and need to wind up a worldwide vitality maker over the world.
Vision-" To convey quality products and better administrations to the whole world."
Business Objectives- The principal targets of British Petroleum company is to to stay in
touch with the stakeholders and make them satisfied.
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Figure 2Organisational structure of British Petroleum
(Source: Organisational Structure of British Petroleum, 2017)
Voluntary Organization-
Background- Wellcome Trust is a voluntary organisation which has primary spotlight on
biomedical research which was established in 1936 by Sir Henry Wellcome. It is the second
biggest voluntary organisation on the planet (Organisational Structure of Wellcome Trust, 2017).
Its home office are situated in London, NW1, United Kingdom (Lee and Klassen, 2016). The
point of this trust is to get the uncommon upgrades in wellbeing by supporting the most splendid
personalities. Wellcome trust has the enrichment about £23.2 billion of every 2017.
Mission-"To convey high calibre of research and wellbeing advancement."
Vision-" To make the Cambridge Centre for Global Health Research advances greatness
look into with the end goal to address difficulties of worldwide wellbeing, by supporting analysts
and research establishments in low and additionally pay nations by fair coordinated efforts and
organization."
Business Objectives- To make the partners of organization happy with the examination
and wellbeing advancement exercises.
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Figure 3Organisational Structure of Welcome Trust
(Source: Organisational Structure of Welcome Trust, 2017)
LO.2
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.
In an organisation there are different divisions and their functions as they need to work as
per there jobs and duties inside company. There functions are firmly interconnected with one
another and they are straightforwardly connected with the organizations targets and structure. In
Marks and Spencer company there are numerous divisions which perform their jobs and they are
specifically directed towards the accomplishment of hierarchical objectives and destinations.
Here are the description of capacity and their interrelationships-
Operational Department-This is a standout amongst the most essential department of
organization. The whole exercises are beginning by the guidance of activity division. The
fundamental capacity of this office is to set objectives and goals and additionally build up
approaches of different offices. Deals estimating, arranging of offers commercial and
advancements. They make participation with different oversees and begin the work at the earliest
opportunity (Morecroft, 2015). They are in charge of the smooth and gainful creation of the
whole company as without the elements of tasks it isn't conceivable to accomplish the goals and
target of organization. They additionally guarantee the nature of results of Marks and Spencer
organisation.
Marketing Department-This is the most vital bureau of organization as whole deals and
benefit of organization is open-finished on the advertising capacities. The marketing division of
M$S organization is extremely effective as the customers are to a great extent mindful of the
results of organization. On the off chance that organization marketing office does not work
legitimately than it isn't conceivable that organization can accomplish its craving objectives and
targets.
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Sales Department-This is another the most vital office where the whole sales and benefit
of organization is depended. Having a solid and great department of offers is the critical sections
of organization. It is likewise certainty that without deals division it isn't conceivable to make
benefit from the business (Cumming and Zahra, 2016). The business division at M&S
organization is additionally extremely productive as they are increasing high benefit simply
because of offers office.
Human Resource Department-This office is the way to accomplish the longing
objectives and goals. None of the work inside organization is proficient without gifted and
knowledgeable representatives in the association. It is the obligation and duty of HR chief to
procure or select the most talented representatives in the organization with the goal that
organization can accomplish its longing objectives and targets. The representatives at M&S
organization are profoundly gifted and knowledgeable in light of the fact that HR director
utilized numerous procedures to choose the best and reasonable possibility for the activity.
Administrator- The functions or jobs played by administrator is to deal with the whole
types of tools, machines and devices of organization. They are additionally in charge of keeping
up the cleanliness at the work environment. Also, all the outer and inner correspondence are
handling by the administrator of the organization (Falkner, 2017). This is likewise a critical
capacity to accomplish the longing objectives and targets of organization.
LO.3
P. 4.Identifying and discussing the macro environmental factors that influence the retention of
business.
In order to track the impact of external environment on the business, the best tool that is
used is PESTLE analysis tool. With the assistance of this tool, organization can recognize both
positive and negative components affecting the activities and elements of association. There are
six factors in PESTLE analysis which are Political, Economic, Social, Technological,
Environmental and legal factor.
Political Factors- This factor incorporates all policies, legislations, taxes rates and some
other government interventions. It influences the whole business of Marks and Spencer
organization yet the political dependability is great in United Kingdom. It is additionally one of
the well-known goals for the remote direct speculation. M&S organization has additionally taken
preferences of political strength and put more in the business. The present rate of organization
for organization is 19% (Laszlo and Cescau, 2017). In 2016 the government of UK has declared
to decrease the rate by 17% which is extraordinary open door for M&S organization to grow its
business in more urban communities (Pestle Analysis of Marks and Spencer, 2017).
Economical Factor- This is a basic factor in the Pestle investigation of UK. As far as
GDP, UK is fifth biggest economy on the planet which is the awesome, open door for the
organizations to develop and grow more. In 2008, the time of retreat that put the nation stuck in
an unfortunate situation however the legislature of UK had made required strides with the end
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goal to enhance the economy. M&S organization is extremely mindful towards these periods
since it impacts the purchasing conduct of customers which straightforwardly influence the
organization's benefits.
Social Factor-The buyers’ market of United Kingdom is huge and enormous. The
present populace of UK is 65.6 million out of 2017. Social changes, patterns, mentality,
conviction of customers are incorporated into this factor. UK is created nation and the form
changes quick and it likewise comes quick in UK. Thu, it influences the choices of M&S
organization as they need to bargain ahead of time with the end goal to fulfil the requirements of
clients. M&S organization has open up numerous stores in UK to build the deals and to get the
the earliest opportunity.
Technological Factors- As far as innovative headway UK is one of the biggest
organization over the world. London is known as the centre in innovative and money related
organization. With the end goal to give the best product and services to customers, M&S is
receiving advance innovations. There are boundless open doors accessible in UK to exchanges
the innovation, for example, M&S has begun to offer their products through online media which
is the incredible open door for organization to raise the offers of organization (Charles,
Schmidheiny and Watts, 2017). M&S has likewise now utilizing computerized instalment
framework to make the customers fulfilled and glad.
Environmental Factors- In UK, this is one the most rising components as now in this
period, government has high worry about the ecological issues. Government has expanded the
weight of organization decreasing wastage and harm of condition. UK government has taken
activities to limit the negative effect of financial development of nature. Along these lines, this
factor likewise influencing the M&S organization. M&S has announced to lessen their carbon
impression in coming days. They are additionally quit cutting trees for building their stores.
Presently they are opening there stores in edifices and shopping centres.
Legal Factors- This is the last and the most essential factor as far as organizations. It is
fairly near the political elements. It included all the laws, enactment, rules, acts which is figured
by the organisation to spare the privileges of the individual. These variables additionally
influence the organizations benefit and deals. Government has made Employment laws which
influences the business in both positive and negative way. M&S organization ought to need to
mindful of work law and in addition al the privileges of representatives ought to be fulfilled.
Moreover, customer assurance law, it likewise influences the organization as they need to
extremely helpful about the quality and cost of the products (Fleisher and Bensoussan, 2015).
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Figure 4 Pestle Analysis of Marks and Spencer,
(Source: Pestle Analysis of Marks and Spencer, 2017
P.5. External and Internal analysis for M&S company to identify strength and weaknesses and
their impact on decision making process.
SWOT analysis is also the most important tool in order to track both internal and external
factors. Marks and Spencer company is using this tool to determine its strength, Weaknesses,
Opportunities and threats.
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STRENGTH
M&S is the popular biggest privately-owned
business in UK regarding retail.
M&S's client benefit is splendid.
Perceived names of brands.
M&S is managing in expanded items which
thus get differentiated salary.
M&S has ground-breaking arrangement of
property (Saleem, 2017).
Employees are very skilled and
knowledgeable at M&S.
WEAKNESSES
Day stock is high as contrast with different
brands like Waste Side, Pantaloons.
In 2008, the time of retreat, organization has
confronted high fall in the benefit and deals
edge.
Lack of assets.
Rental expense is high.
Styles are come late as contrast with another
brand.
THREAT
High rivalry in the market.
Fluctuation in money is additionally high.
Laws and arrangements are oftentimes
changes.
Customers are profoundly inventive and
innovative.
OPPORTUNITIES
There are wide-cut of chances for M&S
organization to create and develop its image
or organizations everywhere throughout the
world by seeking after worldwide extension
technique and opening more stores in India,
South Africa, Brazil, Australia (Brannen,
Piekkari and Tietze,2017).
Stability in political conditions.
Offering of products are additionally
expanding.
Co-branding area.
P.6. Explain how strengths and weaknesses interrelate with external macro factors for Tesco.
The relation between the factors of macro environment and microenvironment is high as
powerful and additionally positive effect of external elements on organizations turn into the
quality and open door for organization while negative effect of outside components exasperate
the whole inside state of business severely and it turns into the danger and shortcomings of the
business (Ward, 2016). For instance, UK has stable political condition which is the greatest
quality of organization and also it is the best open door for the organization to extend there
business with no dread. Also, UK is fifth biggest economy on the planet which is the
magnificent, open door for the M&S to develop and grow more. Besides, as far as technical
factors, UK is driving over the world as far as innovative headway and M&S is likewise utilizing
development innovation and increasing high benefit and consumer loyalty. Then again,
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mechanical progression additionally prompts raise the opposition among the organizations which
is the greatest shortcoming and turn into the significant danger of the organization. In addition,
government has built the weight of organization diminishing wastage and harm of condition
which is additionally a danger for organization and same as laws and enactment likewise
influences the M&S activity and functions severely (Morecroft, 2015).
CONCLUSION
The above report summarized that business environment is the combination of the micro
and macro factors that impacts the operations and function of organization. There are numerous
elements that influences the organization is both positive and negative way was additionally
talked about in this report. Besides, this report additionally included different sorts of
organisation and the development of the global business environment. Furthermore, function of
organisation and its interrelations of the functions and how they are link to organisational
objectives and structure was also understood in this assignment. This study also identifying as
well as discuss the macro environmental factors that influence the retention of business.
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REFERENCES
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Environmentally friendly export business strategy: Its determinants and effects on
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dynamics, business value and firm performance in a big data analytics environment.
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Stacey, R.D., 2016. The chaos frontier: creative strategic control for business. Butterworth-
Heinemann.
Lee, S.Y. and Klassen, R.D., 2016. Firms’ response to climate change: the interplay of business
uncertainty and organizational capabilities. Business Strategy and the Environment, 25(8),
pp.577-592.
Morecroft, J.D., 2015. Strategic modelling and business dynamics: A feedback systems
approach. John Wiley & Sons.
Cumming, D.J. and Zahra, S.A., 2016. International business and entrepreneurship implications
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Falkner, R., 2017. Business power and conflict in international environmental politics. Springer.
Laszlo, C. and Cescau, P., 2017. Sustainable value: How the world's leading companies are
doing well by doing good. Routledge.
Charles Jr, O.H., Schmidheiny, S. and Watts, P., 2017. Walking the talk: The business case for
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Fleisher, C.S. and Bensoussan, B.E., 2015. Business and competitive analysis: effective
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Saleem, M.A., 2017. The impact of socio-economic factors on small business success.
Geografia-Malaysian Journal of Society and Space, 8(1).
Brannen, M.Y., Piekkari, R. and Tietze, S., 2017. The multifaceted role of language in
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Online:
Organisational Structure of Wellcome Trust. 2017. [Online]. Accessed through:
<https://blog.wellcome.ac.uk/tag/organisational-structure/ >.
Organisational Structure of Marks and Spencer.2017. [Online]. Accessed through:
<https://www.theofficialboard.com/org-chart/marks-and-spencer-group >.
Organisational Structure of British Petroleum. 2017. [Online]. Accessed through:
<https://www.theofficialboard.com/org-chart/bp >.
Pestle Analysis of Marks and Spencer. 2017. [Online]. Accessed through:
<https://www.swotandpestle.com/marks-and-spencer/ >.
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