Different Types and Purposes of Organizations

This document provides an overview of different types of organizations, including public, private, and voluntary sectors, and their legal structures. It explains the size and scope of these organizations and discusses the relationship between different organizational functions. It also explores the positive and negative impacts of the macro environment on businesses.

Business and the
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1. Explain different types and purposes of organizations; public, private and voluntary
sectors and legal structures..........................................................................................................4
P2. Explain the size and scope of a range of different type of organisations..............................5
TASK 2............................................................................................................................................7
P3. Explain the relationship between different organizational functions and how they link with
the organizational objectives and structures................................................................................7
TASK 3............................................................................................................................................8
P4. Positive and negative impacts of macro environment...........................................................8
TASK 4..........................................................................................................................................10
P5. Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses..........................................................................................................10
P6. Explain how strengths and weaknesses interrelate with external macro factors.................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business is resolved as monetary or organization framework at which items and
administrations are traded for winning cash and pieces of the overall industry. In regard of this
business condition is considered as summation of outside just as interior components that sway
on an organization adversely or decidedly. For each organization it is fundamental to direct
powerful business just as keep up legitimate business condition as that will help in
accomplishing want objective and target effectively at serious commercial centre (Fabuš, 2017).
Association chose for this report is ALDI which is a privately owned business working in retail
industry. Its administrative centre is situated at Germany just as they offer basic food item just as
family unit fundamentals. In addition, task will likewise incorporate two additional organizations
for the examination for example NHS which is open organization and Oxfam which is an
intentional firm. Points canvassed in this report are various types, size and extent of organization,
interrelationship among the different capacities in an organization. Notwithstanding this it will
incorporate positive just as negative part of large scale condition just as it likewise clarify about
inner quality and shortcomings of explicit business and interrelation with outside elements of full
scale condition.
TASK 1
P1. Explain different types and purposes of organizations; public, private and voluntary sectors
and legal structures
Private venture: These associations are exclusive endeavours produce structure by which
it has by the appropriate number of speculators, as Aldi which is a German based worldwide
rebate general store chain that has its stores in around 20 nations and established in 1946.
Purpose: The overall purpose of private venture is to maximise the profitability and also
develop clear communication regarding the structure of company for the better operation of
company.
Legal structure: Sole proprietorship: This type of business developed and operated only by individuals
and in terms of this only the owner is liable to pay the income tax on the profitability
which is earned for the sake of business.

 Partnership: It is considered as the formation of people among minimum 2 and
maximum 20 in order to run the organisation for the sake of profit. In respect of this, it is
set up under the guidelines of partnership deed in order to avoid conflicts. Corporation: It is the formation of various individuals who develop independent business
unit. Moreover, these organisations are developed by stakeholders who are elected by the
BOD to run business organisation.
Public venture: These are the associations that are transparently bargains inside the market
and furthermore have their capacities through likely portion of stocks. For instance, NHS is the
freely supported medicinal services association since 1948 and has been subsidized from the
general tax collection.
Purpose: There objective is to transform the economy regarding the overall development
of nation and also spread awareness among people regarding the effective utilisation of available
resources.
Legal Structure: Central government: It include several business activities that are instructed and fully
controlled by the business. In terms of this, government has the power to make laws for
the whole industry by considering the local government as well. State government: They share their political powers with national government but also
controlled by state government. Local government: This government collect funds in order to form a community which is
known as the council tax. Moreover, local government plays very unique role regarding
the prevention of suitable requirements.
Voluntary Organization: These are the associations that gather data from individuals so as
to comprehend the plausible structure so as to accomplish their objectives and targets. For
example, Oxfam which is confederation of 19 autonomous magnanimous associations put
accentuation on the alleviation of worldwide destitution.
Purpose: Its objective is to join maximum people within the organisation in order to
grow and develop their strength. Along with this, they also work for the social welfare of the
society.
Legal Structure:

 Trust: It is the kind of charity which is operated by the group of people as the trustee and
it is governed by the trust deed and also considered as the most flexible regarding the
statutory framework. Unincorporated organisation: It is developed by the constitution which is not described
under any law. For this, organisation need to include various features that are restricted
on the grounds of distribution funds.
Difference between Profit, Not-for-Profit and Non-Profit Organizations (NGOs)
Basis Profit Organisations Not-for-Profit
Organisations
Non-Profit
Organisations
Meaning A bit of leeway
association is contains
about the getting cash
planned likewise as
directing things and
associations through
clients pay driven
defence (Alotaibi,
2016).
This association is
correspondingly
suggests as non
business part, not pay
driven alliance. It is a
connection focused on
isolating a common
view point.
Non-Profit
associations are
likewise one of the
mix work task in
which it incorporates
the working highlights
which isn't entitled as
cash making yet to
give some
improvement which
brings social work not
salary driven desire.
Objectives The goal of bit of
leeway connection is
fundamentally to
supervise thing to
individuals picking up
cash and there is
prohibit any social
clarification.
The target of Not pay
driven association is
too not securing cash
excusing that by
expending and
moving the social
government help
towards the general
public.
The target for Non
advantage connection
is the having a social
work or which has
avoided the cash
making or circle
factor. To contribute
something for the
general populace.

P2. Explain the size and scope of a range of different type of organisations
Size of a business association alludes to the size of tasks and the business exercises of that
association. Various elements can be utilized to decide the size of a business association, for
example, capital utilized, number of representatives, turnover etc. Based on number of
individuals utilized, business associations can be characterized into four distinct sorts who are: Micro-business organisation: Associations with fewer than ten individuals as
representatives are named as miniaturized scale business associations, for example, sole
ownership. Small-business organisation: Association which has more than 10 yet fewer than 50
workers are private company association, for example, organization firms. Medium-business organisation: Associations which utilizes in excess of 50 individuals
yet under 250 individuals are named as medium-sized association, for example, open and
private part. Large-business organisation: Association which utilizes in excess of 250 individuals are
named as huge scope business associations, for example, private-part and open segment
worldwide organizations.
Basis ALDI NHS Oxfam
Objectives and goals They have necessities
to offer the top quality
sorts of help towards
the clients.
Having a huge level
of beguilement also as
other structure factor
to ensuring for giving
the best and most
recent models data as
much figure to the
world.
As it kind of NGO and
it controls through
government and
targets are to push the
social causes and
gives the improvement
towards the general
people (Hamilton and
Webster, 2018).
Market share The piece of the pie of
aldi is tested by Lidl
and as of now its offer
rose by 13.2% to
14.1%.
NHS bargains at the
worldwide level and
gives its social
insurance
administrations to
The bit of the pie of
Oxfam is having 50
above branches
worldwide and it
having less piece of

worldwide under the
direction and
guidelines of
government and broke
down that it has
around 9.6% market
in UK as the piece of
its open review.
the pie.
Growth and
sustainability
The headway pace of
right as of now
premise is
orchestrated by
around 3.2% which is
separate and the 4%
on present year of
2020 as they are
predicting to build up
their territory and
business.
As through the
general records the bit
of leeway rate was
around 11.2% and
turnover is 104
million euro.
The Oxfam having the
drawn out new
development and
dauntlessness to the
degree advancing of
social government
help (Fabus, 2018).
TASK 2
P3. Explain the relationship between different organizational functions and how they link with
the organizational objectives and structures
Each association comprises of various capacities and offices which are basic for business
exercises of the organization and are interrelated. Connection between various capacities inside
the hierarchical setting of ALDI Ltd. is being talked about as follows:
Production Function: Production work refers to the way toward assembling merchandise
and ventures in an association by transformation of crude materials into completed products.
Creation work is essential for achievement of business goals of ALDI Ltd. what's more, it relates
with the other hierarchical elements of the organization. For instance, creation and deals work

are interrelated since the merchandise are delivered and structured by the data gave by deals and
advertising division of the organization as for key patterns in the market (Prajogo, 2016).
Essentially, creation relates with money capacity of ALDI Ltd. to decide the expense of items
and the market cost at which the items ought to be offered in the market to build benefit.
Sales & Marketing Function: Sales and Marketing capacity refers to the thorough
arrangement of exercises which incorporate individual selling, publicizing, and advancements
etcetera which are meant to build the deals of the item and administrations in the market (Deasy
and et. al., 2016). It is significant capacity for accomplishing the business goals of ALDI Ltd.
since it decides the measure of income which comes into the organization and impacts each other
action. For instance, deals branch of ALDI Ltd. works in agreement with the fund capacity to
decide consumption on selling exercises and meet the money related focuses of the organization.
Human Resource Function: It refers to the way toward overseeing and controlling worker
execution in the organization to accomplish the most elevated level of operational profitability
which is urgent for accomplishment of business goals of ALDI Ltd. HR Function is connected
with each other capacity of the association (Holotiuk and Beimborn, 2017). For instance,
controlling the profitability of workers by HR office helps the creation and offering office to
accomplish better outcomes by increment representative efficiency and effectiveness.
Henceforth, it tends to be assessed that diverse hierarchical capacities and offices are
interrelated and are essential in deciding the achievement and achievement of objectives and
goals for any business association.
Organisational structure:
 Matrix: This structure is based on the grid structure instead of any hierarchy and for this,
the various types of work assignments need proper report for more than one manager who
are assigned under the different projects.

 Divisional: It follows the liberty between the group of people and it is mostly seen in
those organisation in which suitable tasks are operated at the same time. Along with this,
it is also considered as the very complicated structure as many projects are operated at the
same time.

 Functional: This structure is used in order to organise the work of people as it is based
on the particular skills and knowledge that significantly require in order to run an
organisation. Moreover, with the specialised units that are reported under the single
authority.
TASK 3
P4. Positive and negative impacts of macro environment
Political factor: For ALDI it is fundamental to refresh just as change their methodologies as
indicated by political variables or choice of country which leading and extending business tasks
and capacities. It is so in light of the fact that through it they get guarantee that all activities are
directed appropriately (Saleem, 2017). The positive part of this is identified with United
Kingdom political condition which is steady which help ALDI in leading business easily in
country just as it will likewise help in increasing high upper hand at the commercial centre
effectively. Though the negative viewpoint is there are number of political variables which sway
on dynamic as individual organization not ready to follow which influence their fairly estimated
worth.
Economical factor: There is expansion happen in United Kingdom due to Brexit and
because of same market get rose to approx 2.9 percent in 2019 may. Because of this separate
retail organization need to adjust its perspective just as systems so they can get by in the market
effectively. The positive effect of this is buying conduct of a client thoroughly relies upon their
economy condition so by changing choice as per economy of UK individual organization ready

to achieve their craving objective effectively. Then again, in the event that economy condition
isn't acceptable, at that point client direct less buying which sway on organization benefit just as
representatives moral contrarily.
Social factor: For each organization it is basic to consider society while creating choice as
that will help them in creating viable choice and supporting at commercial centre for long time.
ALDI lead a few software engineers which help society being developed, for example, their
point is to show close by 1.2 million poor youngsters before the finish of 2020 as that will help
them in achieving high upper hand and put positive impact on the successful running of an
organisation.. Cultural factor is considered as positive as that will give this retail organization
chance to develop their business successfully at various areas (Ahmadi, Rahimi and Rezaei,
2018). Then again, negative effect is that need, request and desire change normally because of
which organization need to adjust or refresh their perspective as needs be for supporting in
advertise.
Technological factor: Individual retail firm receive just as actualize creative and new
innovation which help them in playing out their work all the more viably with least wastage.
Additionally it will likewise help them in gracefully chain the board at the store appropriately.
The positive effect of innovative factor for ALDI is that they ready to play out their obligations
in viable way just as they likewise ready to spare time, assets by limiting wastage appropriately.
Then again, it additionally has a few negative effects, for example, it prompts joblessness in the
general public which straightforwardly or by implication prompts increment in the crime
percentage.
Legal factors: It is basic for each organization to consider every single lawful angle which is
reported by administration of country or state. In regard of grocery store industry there are
different organizations confronting issues identified with the food and dairy items outrage which
sway on their generosity. However, by following lawful thought separate organization is
directing their business in legitimate way and ready to maintain a strategic distance from
circumstance of embarrassment (Virglerova, Dobeš and Vojtovič, 2016). The positive effect of
this is they ready to create solid generosity and market esteem which increment work fulfilment
among representatives which prompts their maintenance for long time. Then again the negative
effect of this is there are number of lawful enactment which isn't workable for individual
organization to follow every single.

Environmental factor: So as to embrace natural factor in compelling manners particular
retail organization begin providing their vegetable, natural products, dairy items, etc from the
locality British makers just as ranchers. This is on the grounds that through it they ready to help
nearby individuals and prompts condition supportability. This has positive effect on the
particular organization as they follow legitimate just as solid enactments identified with the earth
which improve their generosity at the commercial centre effectively (Niemimaa and et. al.,
2019). Then again it has some negative perspective, for example, considering every single law
identified with condition enactment is costly for organization which upgrades their financial
plan.
TASK 4
P5. Conduct internal and external analysis of specific organisations in order to identify strengths
and weaknesses
SWOT Analysis: This is an analysis which is required to use by organisation in order to run
and operate the business. This framework states the strength;, weakness, opportunities and
threats for their activities in relation to organisation. It also defined how to build functions and
maintain the organisational performance. In context to Aldi, a SWOT analysis is defined below:
Strengths: Supermarket chain: Aldi is larger supermarket chain that is operating business in many
countries that helps to increase the organisational productivity. Number of stores: This organisation is having 840 stores in country that are managing
the activities. Sales: This organisation is selling the products and services at retain prices that attracts
customers and deliver the best quality of service (Gavurova and et. al., 2017). Satisfaction to customers: This organisation is providing the best quality of products and
services at reasonable cost which satisfy the customers and maintain the profitability.
Weaknesses: Competitors: In business environment, Aldi has many competitors who are also selling
the products and services at retain prices that reduce the organisational profitability. Changes in needs and wants: This can be challenge for company to focuses on needs
and wants that reduced the sales.

 Low Margin: As Aldi is retailing company that is earning the profits by selling the
products at lower prices.
Opportunities: Preference for customers: This means needs of customers are changing and growing
where Aldi is providing products and services accordingly which attracts customers and
increase sales. Uses of new technology: This organisation is using new technology and innovation in
their distribution channel and payment methods that helps customers to book order and
make the payment for the purpose of successful delivery (Rittenburg, Gladney and
Stephenson, 2016). New environmental policies: The chosen organisation is following all legal and
environmental policies in relation to a business which helps to operate the business and
increase effectiveness. Lower inflation rate: The low inflation rates in UK and other place bring stability for
Aldi that support to operate the business by selling products at low rates.
Threats: Less number of suppliers: The threat of suppliers in UK is high as they are charging
amounts as per their wants which has affected business negatively.
 Lack of resources: This organisation is facing the challenge as lack of availability of
resources and capital that limits the business activities.
SWOT analysis of NHS
Strength
Proving good health – This organisation is understand the problems of people and
provide them good health so they feel good.
Outstanding organisational performance – Focusing on current factors that promotes
organisational performance and customer satisfaction.
Managing people trust – This organisation and members are providing better health
services for social welfare that create the trust between people.
Weakness
Incurring of organisational factors – In business environment, there are many factors
that increases the health care cost and reduces health care quality.

Limited area – NHS is providing the health care services in London which is limited
area that is not providing benefits of other person.
Opportunities
New business initiatives – This organisation is taking the benefits of new business
initiatives which can help to attracts the customers.
Uses of new technology – By using new technology NHS is brining improvement in
their existing process and healthcare services that maintain higher satisfaction.
Increment in service user, public involvement and career.
Threats
Non Delivery of CCG plans – This organisation is reducing the emerging activity due to
non delivery of CCG plans.
New ownership structures for NHS that increases cost of organisation.
P6. Explain how strengths and weaknesses interrelate with external macro factors Political: Political variables for ALDI ltd. for example, Brexit and the vulnerability of
economic situations in Britain relate with the inward qualities and shortcoming of the
organization and it becomes the strength of company. For instance, because of unsteady
monetary conditions in Britain, restricted worldwide nearness as a shortcoming of ALDI
Ltd. makes a much more regrettable effect on the activities and gainfulness of
organization. Economic: Economic factors, for example, charges, inflammation rate or level of family
unit salary in an economy influence the activities of an association and relate with the
qualities and shortcoming of the organization with becomes the strength of an
organistion. For instance, because of expanding swelling in Britain, the administration of
ALDI Ltd. can offer its items which are of acceptable quality and serious evaluating
because of minimal effort technique and increment the piece of the pie in United
Kingdom. Social: Social factors, for example, changes and patterns in utilization conduct relate with
the inward qualities and shortcoming of an association. For instance, the administration
of ALDI Ltd. can consider the inside quality of tremendous base of budgetary assets to
differentiate its item runs according to the changing needs of clients, for example, going

into the market of sound food items to advance good dieting propensities for purchaser
(Trad and Kalpić, 2016). Technological: This decade has seen probably the greatest flood of innovative changes,
for example, opening of new deals stage for example online deals and the administration
of ALDI Ltd. can think about its qualities and shortcoming as for execution of
mechanical changes and developments in the organization. The administration
considering the solid base of budgetary assets of the organization has chosen to put
resources into mechanical headways and improvements in the organization. Legal: Expanding legitimate confusion and rules by administration of various nations in
which ALDI ltd. works must be deliberately managed by the administration of the
organization. Lawful elements relate with the inside qualities and shortcoming of the
organization for instance, the group of exceptionally talented representatives can be
conveyed by the administration of the organization for checking the lawful skyline and
directing business activities according to the standards and guidelines.
 Environmental: The administration of ALDI Ltd. needs to contribute the gigantic base of
money related assets into green-innovation and accomplishing supportability in the
activities of the organization (Lee, 2017). Expanding natural concerns, for example, a
worldwide temperature alteration and discharge of ozone harming substances have put
the onus on organizations like ALDI to lessen the measure of carbon impressions which
includes significant speculation and change in existing tasks of the organization.
Henceforth, it tends to be understood that outer condition components and qualities and
shortcomings of ALDI ltd. are interrelated and the administration needs to consider both the
viewpoints before usage of any vital choice in the association.
CONCLUSION
Business environment is related to different factors which are important for business and
helps to increase the profitability. The management are playing important role who understand
the needs and wants of their customers and deliver best quality of products. Different types of
organisation such as public, private and voluntary sectors that is operating the business for
different purpose and increasing the brand image. Along with it also describe the prominent
relationship among different units of company and also conducted PESTLE analysis in order to

analyse the external environmental factors. SWOT analysis is uses to know the strength,
weakness, opportunities and threats which help to operate the business.

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