Different Types and Purposes of Organizations in Business Environment | Desklib

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1. Different type and purposes of organization.........................................................................3
P2. Range of business organizations...........................................................................................6
LO2..................................................................................................................................................8
P3. Relationship between different organisation functions.........................................................8
LO3................................................................................................................................................10
P4. Macro environment impact upon business operations .......................................................10
LO4................................................................................................................................................12
P5. Impact of internal environment over business organisation ..............................................12
P6. Interrelation of strength and weakness with external business environment......................13
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment is a term used to denote all the external and internal factors linked
up with business organisation (Herbert and Brown, 2016). It also involves all stakeholders
associated with the corporate organisation in order to conduct business operations. This report is
based on the case study of Marks and Spencer (M&S). Company was established in the year
1884 by Michael Marks and Thomas Spencer. M&S operates worldwide business operations in
retail sector. Company has an specialization in dealing with high quality clothing, home products
and food products. Henceforth, this report will focus over various types and purposes of
organisations in business environment. Based on the size and scope business organisation types
will also project in this report. Emphasis of this report will also on the relationship between
different organisational departments of the company. Impacts of macro business environment
over business organisation operations will also summarised in this report. SWOT analysis will
also conduct to assess about the strength and weaknesses of an organisation.
LO1
P1. Different type and purposes of organisation
Corporate organisations can be considers in following parts.
Public Sector: Public sector is considers as government organisations or all such companies
owned by government. Government owns organisations always frame as per the legislations. IN
case the government is holding company it must be registered as per the companies act.
Advantages:
 Government own such organisation.
 Aim of the organisation is to conduct any social cause.
Disadvantages:
 Profits is not the prime objectives of operation's.
Private Sector: All organisations other than government is called as private sector. Private
sector is segregated into following parts.
Sole Trader: Sole trader are considered as an corporate organisation consist of only one person
operating all business operation's. Aim of the sole trader is to earn profits out of the business
operation's.
Advantages:

 Profts are solely distribute to one person.
 No scope of any conflict between business partners.
Disadvantages:
 Resources are limited in nature due to one person involve in the business.
Partnership: Partnership is considered as conducting business by more than one person involve
in the ownership claim. Partnership business do not necessarily require registering like
company's.
Advantages:
 Less capital requires to operate business.
 NO need to register the business.
Disadvantages:
 Limited resources available for conducting business operations due to only few owners of
business.
Limited: Companies are part of this segment. All corporate organisation resisted under the
companies acit is a part of this segment.
Advantages:
 Huge involvement in economic growth and development.
 Provide products and services to people in society.
Disadvantages:
 Profit objectives is such a huge in this segment.
Cooperative: Cooperative sector organisations is considers as bunch of organisations come
together to conduct operations who shares the same business objectives.
Advantages:
 Cooperation of more than one organisation expand the scope of business operation's.
 Improves profitability.
Disadvantages:
 This cause to unusual issues in regards to profit segregation.
Voluntary Sector: Voluntary sector are considers as non profit sector or non commercialised
sector. Organisation under this sector so not conduct operations to generate revenue out of the
services.
Advanatges: