Elaborate various types of organisational and legal structures

Business And Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Elaborate various types of organisational and legal structures..............................................1
P2 Analyse size& scope of organisations...................................................................................3
M1 Examine how scope and size of organisation are co-related with its firm objectives..........4
TASK 2............................................................................................................................................5
P3 The relationship between different organisational functions and their linkage to
organisational objectives and structure. ....................................................................................5
TASK 3............................................................................................................................................7
P4 The positive and negative impacts of macro environment on business operations ..............7
TASK 4............................................................................................................................................9
P5 Internal and external analysis of organisation in order to identify strengths and weaknesses
.....................................................................................................................................................9
P6 Strengths and weaknesses interrelate with macro factors\...................................................11
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Business environment refers to the various micro and macro factors which affects the
business in its activities, operations and functions. Business environment includes employees,
suppliers, owners, technology, social trends, stakeholders, market trends, etc. in short it includes
the internal and external factors of business where internal factors are the suppliers, employees,
customers, owners and stakeholders (Abe, Bassett and Dempsey, 2012). Whereas external factor
includes technology change, market trends, social trends, economic change and condition,
political factors and so on. Internal factors of any business environment can get control by the
business but the external factors of the business are not in control by any business, they work
interdependently to business environment. This report talks about the business environment,
types and forms of business with the factors which can affect the business and business
environment. For reference this report has taken an example of TESCO company and has tried to
related the above factors with it. This report also covers the interrelations of different
departments in organisation, the positive and negative impacts of macro environment on business
(through PESTEL) and analyses of strengths and weaknesses of an organisation (through Porter's
five forces model, VRIO and SWOT analysis).
TASK 1
P1 Elaborate various types of organisational and legal structures
Organisation refers to team of people who comes together to achieve desired objectives
and goals. Organisation play different role according to their functionality and requirements. So,
there different types of organisation in business environment like voluntary, public and private. It
depends on firm to adopt which kind of organisation. Market is wide and dynamic which leads to
uncertainty of situations as well as activities and entities should acquire various forms of
business to over come with challenges (Alotaibi, 2016). Types of organisations are discussed
below-
Private organisation-
Theses are those firm which comes in market with motive of profit and revenue. There
main focus is on expanding of business and to acquire more manpower sources. Private
organisation includes huge cost, more resources and time management. In this context TESCO

can be considered as private operating sector. There are several types of private sectors like sole
proprietor, franchise,cooperatives etc (Bansal and Hoffman, 2012).
Legal structure-
 Partnership- Partnership is safest structure of business and organisation. It refers to
carrying out activities of business by two or more than two party. Partnership is of two
types ordinary and limited. Ordinary refers to paying of losses solely it is similar to sole
proprietor. Limited partnership refers to sharing of losses by both the parties according to
their mutual agreement. Example - TESCO with British heart foundation.
 Sole traders- Sole traders/ proprietors are those which runs their own business and are
solely responsible for their risk and loss bearing. These organisation perform limited
activities within their line. Types of sole traders such as cafe owners, saloon etc. Risk
level is low in this type of business and organisation. These traders can work as employee
as well as owner both or can hire other people as subordinates (Belás, 2015).
 Private limited- These are those company in which shares are limited and can be shared
between personal belongings. Public members in this form of structure are not allowed to
purchase or sell the shares of company. Private company which has limited shares such
as Virgin Atlanta. These types of companies follows the accounting principle of going
concern concept because firm can be run by solely business owner even if the employees
or board of directors/ shareholders quit.
 Public limited- This is most flexible form of structure in organisation. Members of firm
can sell and purchase the shares in market/ public to acquire more profit and expand of
business. Example -Marks and Spencer (Dahles and Susilowati, 2015).
Public organisation-
Another form of organisation structure is public organisation in which companies are
governed and registered by government with motive of serving to the welfare of society and
providing services and products such as gas, petrol, water, coal etc. They provide a huge
contribution in nation's economy. Types of public organisation such as HSBC holdings. Legal
structure is stated below-
 Central government department- These types of companies are registered and works
under government regulations.
 Local Authorities- Organisation are maintained and managed by local authorities.