Different Types and Purpose of Organisation in Business Environment

This document discusses the different types and purposes of organisations in the context of private, public, legal, and voluntary sectors. It explores the scope and structure of these organisations and their link to business objectives. The document also evaluates the relationship between different organisational functions and their link to different structures.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Different types and purpose of organisation in context to private, public, legal and
voluntary sectors:.........................................................................................................................1
P2: The size and scope of a range of different type of organisation:...........................................4
M1: Analyse the scope and structure and size of different organization link to business
objectives.....................................................................................................................................6
TASK 2............................................................................................................................................6
P3: Evaluate the relationship between different organisational function and their link to
different structure:........................................................................................................................6
M2: Advantage and disadvantage of interrelationship between organisational function ...........7
D1: Analysis of different types of business structure and interrelationship of different
organizational function ...............................................................................................................7
Task 3...............................................................................................................................................7
P4 Identification of impact of macro environment upon operations of business:.......................7
M3 Application of pestle model for analysing macro environment:...........................................9
TASK 4..........................................................................................................................................10
P5 Identification of strengths and weaknesses of firm through internal and external analysis: 10
P6 Interrelation of strengths and weaknesses with macro-environment:...................................11
M4 Application of SWOT analysis and evaluation of its influence on decision-making of
business:.....................................................................................................................................13
D2 Critical evaluation of impact of micro and macro environment on decision making and
objectives of business:...............................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business environment refers to internal and external factors that affects an organisation’s
operations directly or indirectly. Internal environment includes firm’s structure, employees and
managers and in external environment it includes customers, stakeholders, clients and investors.
Business environment helps in planning, managing, controlling and identifying opportunities that
improves the overall performance, growth and profitability of the organization. Business
environment also considers micro and macro environment (Baba, 2018). The company which is
selected for the report is Dyson. It is a British technology company established in United
Kingdom by Sir James Dyson in 1991. It design and manufacture household appliances such as
vacuum cleaners, air purifiers ,hand dryers, blade less fans, heaters and lights. This report covers
topic such as different types and purposes of organizations, size and scope of the different
organizations, relationship between different organizational functions and how they
organizations objective and structure. Apart from this it also includes negative and positive
impact of micro environment upon business, internal and external environment of firm with
strengths and weaknesses and strengths and weaknesses of external environment.
TASK 1
P1: Different types and purpose of organisation in context to private, public, legal and voluntary
sectors:
In the organisation, there are different types of sector is formed for their own purpose.
They have different objectives such as profit making, social welfare and social responsibilities
(Bashir, and Farooq, 2019). They are run and establish by different number of people in order to
meet organisational goal. There are different types of organization and legal structure are
described-
Private sector Organisation-
It refers to the sector which is owned by individual and company for profit and
achievement of specific goal which is not state controlled. It includes that organization which is
non-profit and it is not controlled by government (Buckley, Enderwick, and Cross, eds., 2018).
The example of private sector is Tesco, Sainsbury's, Dyson. The selected private organization is
Dyson which provide the household appliances to the customer. Dyson is the British technology
establish in the United Kingdom by the James Dyson in 1991. they manufacture in the household

appliances, hair dryers, vacuum cleaners, air purifiers and heaters, it employed 12000 employees
across the world, they move towards its headquarter to Singapore for the manufacturing of the
electric vehicle. The organisation is facing different types of issues because of Brexit and
COVID 19. Brexit resulted in improper execution of operations as the entity is mainly
established in UK and because of Brexit it is not able to carry out operations successfully in rest
of the countries in European Union. Apart from this COVID 19 has also impacted functionality
of business because it is not able to carry out the operational activities properly because of
governmental policies regarding lockdown and other restrictions. Both the external forces
impacted upon the functionality of business because the senior authorities of the entity need to
pay attention towards all of them and modify organisational policies accordingly.
Purpose- the purpose of Dyson is to increase customer satisfaction by supply all products
which are require in the market on appropriate time for earning huge profit and increasing the
sale.
Legal structure- Following are the legal structure is follow-
Sole trader- in this, only individual is running the business alone. There is no legal
distraction between entity and owner. They enjoy all profit and all risk by their own.
Partnership- it means when two or more person invest their money in the business and
manage all operation with take the mutual decision. They share profit according to the ratio of
their profit sharing (Chuang, and Huang, 2018).
Limited company- it refers to organisation which do not issue shares direct to public but
they can issue shares through initial public offer and final public offer with aim to earn profit.
Hence, Dyson company has used the limited company as a legal structure.
Public sector Organisation-
It refers to the state sector which includes public goods and government services such as
military, law enforcement, and infrastructure. The public sector varies from country according to
their legislation that governs state owned organization (Cockayne, and et.al., 2018). There is
some example are child maintenance service and National health service. One of the selected
public organization is National health service that provides public health service under
government administration, they provide insurance to the entire population and health services
are free except for certain minor changes.

Purpose- The purpose of national health service for all UK citizens based on the
requirement of their need in their healthcare. There main propose is to improve the health and
supporting us to keep mentally and physically well, to get better when there is no recovery is
possible.
Legal structure- the legal structure of public organisation are as follows-
Local government- Organization that are registered by local authorities such as
municipalities, school district and many other structure also come in this.
State government- it refers to the government which is run by administration of state
government like executive, legislative.
Central government- Central government means management control is in the hand of
central authorities. They take the decision regarding any issue arise in the central area.
Hence, National health service follows the legal structure based on the rules and
regulation provided by state government.
Voluntary organisation-
In this organisation, they are run by group of person with a motive to deliver social
service for the betterment for society as well as to individual. They are the non-government
organization which is different from national and local government (Dincer, Hacioglu, and
Yüksel, 2018). There are various types are Oxfam and Samaritans. The selected voluntary
organisation from the above example is Samaritans which found in 1953.
Purpose- the purpose of Samaritans is that to provide emotional support to everyone in
their emotional distress and going to suicide doe some reason and they can help population
through telephone helpline also.
Legal structure- legal structure of voluntary organization is-
Unincorporated association- They are form for the short term goals which is ideal for
small organisation which is economical. They have low income and not acquire properly. They
also provide legal advices to the group of people (Dwyer, and Hopwood, 2019).
Trust- They are formed for the general public which define the clear purposes. They
maintain their relationship with trustees and property.
Limited company- it means the entity which are limited by shareholding. These are the
company which manage staff, team and large fund and land.
Hence, the managers of Samaritans follow trust legal structure.

P2: The size and scope of a range of different type of organisation:
There are different aspects that affects the working of an organisation and all of them are
very crucial in terms of profitability and growth of the firm (Ghobakhloo, and Azar, 2018).
Scope, size, vision, mission, turnover, global growth, etc. of different firms are explained in
detail below-
Public sector organisation- National Health Service(NHS)
 Scope- The firm that is NHS has a wide scope in the market due to its vast operations and
hence it is also very beneficial for the citizens of the UK as it provides free services to the
people that are basic necessity in daily life.
 Vision- Its vision is to expand its operations and reach as many people as it could so that
it can be helpful in the long run and thus resulting in overall benefits for the firm.
 Mission- Its mission is to provide world class services to its citizens so that nobody
remains out of reach and thus providing each and every person basic element for living.
 Total number of employees- The firm operates at a wide scale and thus employs a large
number of employees which results in increased income of the individual and thus
uplifting the standard of living and subsequently resulting in increased GDP of the
country.
 Turnover- Though it provides free services but it manages to get funds as it is a public
sector unit and thus has a large turnover that helps the company to increase the level of
services it gives to the people of the UK. Global growth- The firm is also expanding globally and due to its vast importance it is
gaining many appreciations from all over the world (Gómez, and Mouselli, 2018).
Private sector organisation- Dyson
 Scope- The scope of the firm that is Dyson is very big as it operates on a huge scale and
its profitability helps the firm in doing so which results in increased growth.
 Vision- Vision of the firm is to produce goods that are of high quality so that individual's
that are using the goods and services of the firm should be satisfied with the company's
performance.
 Mission- The mission of the firm it to achieve high growth and profitability in the
industry in which the firm operates.

 Total number of employees- As the firm does its working on a large scale it also recruits
a large number of people so as to increase its work force.
 Turnover- Dyson has a vast turnover and all the credit of it goes to the quality of the
product that it gives to the customers. Global growth- As the firm is well established in the UK since long it has also
expanding in other parts of the world also that helped the firm immensely.
Voluntary sector organisation- Samaritans
 Scope- It has a vast scope due to the work that the firm Samaritans is doing as it is very
essential element in the current scenario.
 Vision- Its vision is to make its service very impactful so that the reason behind the firm
that is its goals and objective are very well achieved and accomplished.
 Mission- The mission of the firm is to provide essential support to each and every person
in stress and the ones with suicidal tendencies by helping them out in every possible
manner.
 Total number of employees- As the firm is doing an excellent work in the current
scenario it employs a huge number of individual's so that all the objectives of the firm are
achieved and that too well in time.
 Turnover- Although the firm does its operations free of cost but due to the excellent
work it is doing the firm gets funds from various sources and that too a good amount and
thus resulting in increased turnover.
 Global growth- As the firm is doing a great job in the society it has also expanded its
work area to almost each and every part of the world so that it can help every individual
in distress well in time.
M1: Analyse the scope and structure and size of different organization link to business objectives
In the organization, there are three different types of sector is present. In the public sector
National health services have a wide scope (Gupta, Mejia, and Kajikawa, 2019). And the firm
operates at a wide scale and thus employs a large number of employees which results in
increased income and the legal structure is follow by state government of UK. In the private
sector Dyson is very big as it operates on a huge scale. And the company operates large number
of employee in their workforce because they are selling the product of house appliances. In

voluntary sector,Samaritans has a vast scope. And it employee large number of employees
according to their requirement. And they follow the trust as legal structure.
TASK 2
P3: Evaluate the relationship between different organisational function and their link to different
structure:
Organisational functions are the main activities which are perform in the different areas
(Hao, Helo, and Shamsuzzoha, 2018). Some of them relationship between finance and human
resource management and marketing with operation in the Dyson. The manager of the Dyson
was follow the flat structure by believed in direct communication. And then now this company
follow divisional structure in which different task is divided according to roles and responsibility
of the employee by this they can easily achieve the goal in short period of time in effective
manner.
Relationship between finance and human resource management
In the Dyson, there is positive relationship is there between finance and human resource
management, because human resource manager help them in hiring the employee in finance team
according to the skills and finance manager help them in preparing the budget in the
organization.
Relationship between marketing and operation
In the Dyson, there is also a positive relation between marketing and operation. Because
marketing team analyse the market and then find the need of their product (household
appliances) in the retail shops. Then they tell to operation department regarding the production of
their goods and services.
M2: Advantage and disadvantage of interrelationship between organisational function
In the Dyson, there are some advantage which are they can maintain the coordination
through their interrelationship and they take the decision fast with mutual consent and by help of
both they can increase their sales and also earning profit. If the functions will be linked with each
other then it will support the execution of all the operations in systematic manner as it will guide
all the departments to work collaboratively for execution of all the operations. There is
disadvantage are there is possibility of arising conflict between them. They can focus on their
individual performance apart from organization goal. The main drawback of the interrelation of

functions is decreased employee commitment because when the functional will be interlinked
will result in higher work pressure for the staff members which may affect their engagement.
D1: Analysis of different types of business structure and interrelationship of different
organizational function
There are different types of business structure is followed by Dyson. Firstly, they follow
the flat structure in which there is communication is going through email or telephone. Then they
follow the divisional structure in which they divide the work according to skills of employee.
They are providing effect on the growth and effective level of employee. Their productivity is
also decrease. There is also conflict is arising between department which is the reason of lack of
cooperation and coordination between worker.
Task 3
P4 Identification of impact of macro environment upon operations of business:
Macro environment refers to external forces, which are uncontrollable and have influence
on performance of business. Monitoring macro environment is vital for business to recognize
future implication of external factors. Pestle analysis is utilized by organizations to track macro
environment. Pestle analysis is a framework that detects external environment that helps
management in effective decision-making and strategic planning process (Harrison, and et.al.,
2018). Following are the factors of pestle analysis and its impact on operational functioning of
Dyson:
Political: Policy changes, government stability, taxation policies, trade as well as fiscal
policies, etc. are evaluated in this factor. It has great impact on functioning of firm. Impact of
this factors on Dyson is further explained below:
 Positive Impact: Political stability in UK permits business in better strategy making as it
reduces risk of changing laws and regulations. Hence, it has positive impact on Dyson as
it facilitates effective operational functioning in business and avoids hinders.
 Negative impact: Brexit has impacted negatively to company, as Dyson operates
worldwide so increasing trade tensions among countries as hinder its functioning in
European Union which has negative impact on revenue of firm.

Economic: It consists consumer’s disposal income, unemployment rate, exchange rate,
interest rate, rate of inflation etc. Impact of these factors of business activities of Dyson are
stated below:
 Positive impact: After Brexit, inflation rate of UK reduced which positively impacted
profitability of Dyson. As, buying capacity of customers improved due to reduction in
inflation rate, hence, sales of company increased which lead to increment in its bottom
line.
 Negative impact: Expansion scope of business is reduced due to high interest rates.
Increment in interest rate has increased cost of borrowing funds which resisted firm in
investing in projects of high investment and hence hampered growth process of Dyson.
Social: Norms and expectations of culture, rate of population growth, attitude of people
towards culture, safety and health measures, health consciousness etc. are considered while
evaluating social factors (Kodhelaj, and et.al., 2019). Following are positive and negative impact
of this factor on Dyson:
 Positive impact: Improving trend of lifestyle enhancement has increased use of
technological items to reduce labour. Hence, demand for home care products such as
vacuum cleaners, air purifiers etc. have improved worldwide. This leads to improvement
in selling level of Dyson and boosted its revenue.
 Negative impact: Unawareness of people about technology in underdeveloped countries
negatively impacts sales potential of Dyson, as firm in operating worldwide. Reason is
that if people don't have knowledge about use of electronic or technological products,
such as, vacuum cleaner, than obviously they will not purchase it.
Technological: Emerging technologies, innovation or automation are included in
technological factor (Lu, Papagiannidis, and Alamanos, 2018). Impact of this factor on company
is discussed below:
 Positive impact: As Dyson is technologically ahead firm and keeps on innovating new
products, hence, it provides opportunity to entity for improving its scope and gain
competitive edge. It further provides Dyson leading position in this technologically
driven era.

 Negative impact: Improving use of advance equipment in Dyson has created insecurity
of job among its employees even some are not able to align with utilization of such
equipment’s which hinders productivity of business.
Legal: It considers legislation of country, such as, labour law, consumer law etc.
Following are its impact on Dyson:
 Positive impact: Following requirements of consumer law enhances customer services
which improves brand image of company.
 Negative impact: Legal issues, such as, security law, may occur while firm is seeking
financing through different investors.
Environmental: environment concern, climate or weather changes etc. are considered.
Following is its positive and negative impact on Dyson:
 Positive impact: Application of corporate social responsibility due to increase social
awareness enhances customer attractiveness and brand value of Dyson.
 Negative impact: If firm does not follow measures of social concern than sustainability
of company may be affected.
M3 Application of pestle model for analysing macro environment:
Macro environment consists of collections of factors and forces that are outside internal
functioning of business, that is, it refers to external environment that has impact on functioning
of an organization (Pereira, and et.al., 2019). Dyson applies Pestle analysis framework for
monitoring and examining impact of external factors on its business activities. It encourages
forecasting and efficient planning process in organization to provides company advantage over
competitors. While considering negative impact of application of this tool, it can be evaluated
that it is time consuming activity and as external factors change at fast pace, it questions
dependence of this framework.
TASK 4
P5 Identification of strengths and weaknesses of firm through internal and external analysis:
Internal analysis can be defined as an examination of internal components of firm with
the purpose of assessing competencies and resources of business. For analysing internal
environment of company swot is applied. SWOT analysis is a strategic framework that allows
firm to evaluate its strengths, weaknesses, opportunities and threats. It provides business a broad

overview of its internal functions and abilities (Schaltegger, and Burritt, 2018). This analysis
helps firm in identification of its core competencies to improve value of brand. It also ensures
business to maximize its profit with effective utilization of available opportunities and
minimization of in competencies due to weaknesses and threats.
SWOT analysis of Dyson:
Strengths Weaknesses
 Dyson Company always focuses on
new design in its different product. It
gives tough competition through
coming up with different product and
services like hair dyer, vacuum, purifier
etc.
 Company is able to survive in market
because of its new design, research and
development in its product. It require
keen focus and capital to maintain its
consistency.
 Products of this company are quite
costly in price because they deliver
high end for which they need to cover
their cost that tends to lose its costumer
(Zhou, and Wen, 2020).
 Dyson has less employees than its
requirement. They need sufficient
number of workforce to expand its
business and supply chain.
Opportunities Threats
 Company has a opportunity to expand
its business throughout the world.
Company will able to sustain in market
because of its good quality of products.
 Dyson can get advantage of strong base
in its home town which will help the
company to grow faster in other
countries also.
 The company face tough competitors in
market, it is important for company to
introduce new products and service to
grab potential costumer.
 It has to study demand in market as it
fluctuates a lot that effect the business
of Dyson. Costumer taste and
preferences changes over time and its
necessary to meet their demands.
SWOT analysis of Bosch:
Strengths Weaknesses

 Core competency of Bosch is providing
quality products to the clients.
 Company has expert staff members
who ensure proper execution of all the
operational activities which enhances
brand value of an organization (Yan,
2018).
 As Bosch is a private organisation so
the competitiveness within the industry
is very high which is affecting its
stability as well we financial position
within the market.
 Although, the company is operating
globally still some areas are untapped
which leads to gap in service providing
of Bosch.
Opportunities Threats
 Firm have opportunity to expand its
presence on local untapped areas which
will improve its customer base and
ensure fulfilment of needs of all of
them all around the world.
 Application of effective marketing
strategy can help Bosch in leading
market and hence gain competitive
edge.
 Other small entities in the market in
which Bosch operates are attracting
customers which threatens customer
base of Bosch.
 High staff turnover effects productivity
and efficiency of business (Yuen, and
et.al., 2019).
P6 Interrelation of strengths and weaknesses with macro-environment:
Interrelation between 'macro environmental factors' and 'strengths and weaknesses' of
Dyson are analysed below:
Macro or
external
factors
Strengths Weaknesses
Political As UK is politically stable hence,
risk factor of Dyson is reduced. As
it provides opportunity to firm to
Dyson is a global operator hence,
changing foreign trade regulations and
government interventions affect business

forecast business environment and
strategically plan for development
and expansion.
operations of the company (Yousfi,
Batoulis, and Weske, 2019). Also,
initiative of government to protect and
expand SMEs or local companies may
hinder profitability of international
companies.
Economical Increasing investor attractiveness
encourages investment in
companies which maintain high
brand image and customer loyalty
(Wiprächtiger, and et.al., 2019).
Hence, as Dyson has high brand
value, its scope of investment
improvised that encouraged
investment in research and
development, innovation, customer
experience, etc. in firm and
strengthened its core competencies.
As Dyson is an international or global
company and operates worldwide, it has
to follow many trade regulations and
restrictions. This increases cost
company's cost of operation and hence
selling price of products are also high. It
discourages customer from buying
products and company faces threat from
competitors.
Social Increasing social class and lifestyle
of people encouraged Dyson to
constantly innovate, improvise and
diversify its product portfolio. It
increases experience and
satisfaction level of customers and
provides competitive edge to
business.
Company have to encourage health and
safety policies, health insurance of
employees, provide importance to culture
of each country it is operating in etc. All
these factors improve cost of company
which hinders its profitability.
Technological Increasing or changing technology
and automation supports motive of
company of innovating and
improvising its product which
Need of automation and transforming
technology motivates firm to use
advanced equipment but workforce of
Dyson lacks required skills to operates

enables firm in not only surviving
but leading the market in this
competitive environment
(Weygandt, and et.al., 2020).
this equipment and also incorporation of
such equipment leads to decrement in
number of employees which drives
dissatisfaction among workforce.
M4 Application of SWOT analysis and evaluation of its influence on decision-making of
business:
Micro environment indicates internal or immediate environment of company (Tseng,
Chiu, and Liang, 2018). It includes marketing intermediaries, suppliers, customers, employees
etc. SWOT analysis is applied by Dyson to monitor its internal or micro environment. Use of this
tool enables firm to deter threats and grab opportunities. It enhances decision making process of
management and provides improvement opportunity to firm by analysing and eliminating
weaknesses or drawbacks of business. Although, it cannot be neglected that swot provides too
simple categorization of internal environment of an organization which is much more
complicated in practical scenario.
D2 Critical evaluation of impact of micro and macro environment on decision making and
objectives of business:
Macro environment, such as, political changes, government regulations, technological
transformation, social awareness, changing policies etc., has huge impact on operations,
functioning and performance of employees, weather directly or indirectly. As, when government
regulations change it leads to change in business strategies accordingly which affects objectives
of business and performance of entire workforce (Volkodavova, and et.al., 2019). Similarly,
micro environment which consists of intermediaries, staff members, customers, suppliers etc.
also influences business to a great extent. For example, when employment policies changes
strategy or decision makers have to modify salary adjustments of employees accordingly. Hence,
increment of per day wage in labour law will lead to increment in cost of Dyson which will
further affect its profitability.
CONCLUSION
On the basis of this report it can be concluded that business environment consists of
collection of external and internal factors that influence functions of business. It is important for
management to evaluate and monitor factors of business environment for effective strategy

formulation and smooth functioning of business activities. Business are of different types which
can be broadly classified into public, private and voluntary organization. Business environment
can be classified into two categories, that is, macro and micro. Former evaluates external
environment can pestle analysis is used as a tool for this evaluation, and later considers internal
environment of company which can be studied with application of swot analysis. For all the
organisations it is very important to determine all their strengths and weaknesses and SWOT
analysis could be used for the same purpose. In order to determine the external environment and
the forces that are leaving negative impacts upon functionality of business PESTLE analysis
could be used. By using both the models it will be very easy for the enterprises to formulate
effective decisions for future and reach to the predetermines objectives.

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