Types of Organisations Operating in a Business Environment

REPORT ON TYPES OF ORGANISATIONS OPERATING IN A BUSINESS
ENVIRONMENT
)
GSK
From: Business Advisory
Subject: An analysis of types of organisations: purpose, size, scope, legal status and structure
Executive summary
The study will focus on different types of the organisations like private, voluntary and public.
It will focus on the features of the organisation and legal structure of the ventures would be
analysed. In order to analyse the study GlaxoSmithKline (GSK) has been taken. The size,
scope and structure of organisations would be discussed here. SWOT and PESTEL analysis
would be done for developing the business structure of the venture.
1.0 Introduction
Different types of business organisations like public, private and voluntary sectors help to
uplift the economical condition of the country. The financial development of the organisation
depends on their objectives, structure and size. Therefore, the study will focus on the types of
ventures and their scope in the market. It will provide discussion about the factors that

determine the organisational size and structure. PESTEL and SWOT analysis would be done
understanding the business condition of GlaxoSmithKline plc (GSK).
Task 1
1.1 Types of ventures
a) Public sectors ventures
As commented by Van Dooren et al. (2015, p.456), the public sector organisations are
governed by government of the country. It provides service like public education, military,
police, water supply and so on to the people as they can lead their life appropriately.
GlaxoSmithKline is the example of public sector organisation and provides health related
service like vaccine to the people.
Features
The authority of the public sectors needs to take permission from the government of the
country. In case of GlaxoSmithKline, Emma Walmsley (CEO) and Sir Philip Hampton
(chairman) run the venture maintaining the regulation of government of UK (gsk.com, 2017).
Contribution of people helps to build fund for running the ventures. They cover the specific
area for providing their service. GSK provides worldwide service by preparing
pharmaceutical products.
Figure 1: GlaxoSmithKline
(Source: gsk.com, 2017)
Objectives and goals
Objectives
● To achieve best position in the world
● To provide best services as people do not face problems related to their health.
Goal
The goal of GSK is to introduce new medicines as people can lead their life properly.
Legal structure
The public sector organisations follow the rules and regulation of UK government. The
legislation is Medical Council Act 1956 for maintaining the legal structure of GSK
(learn.sssc.uk.com, 1956).

b) Private sector ventures [John Lewis Partnership]
The private sector organisations help to earn profit in the contemporary era. Private
organisations are the part of government (Jia, 2014, p.300). John Lewis Partnership is the
example of private organisation (johnlewispartnership.co.uk, 2017).
Figure 2: John Lewis Partnership
(Source: johnlewispartnership.co.uk, 2017)
Objectives and goal
Objectives
● To expand business of the organisation
● To maintain legislation for running the venture legally
Goal
The goal of the organisation is to develop the economic condition of UK.
Legal structure
The private sector ventures need to have trade licence and VAT registration for running the
business appropriately.
Types of private sectors ventures
Sole traders
The features of sole traders are owner can enjoy the entire profit of venture.
Advantages
● Received entire profit
● Maximum privacy
● Start-up cost is low
Disadvantage
● Unlimited liabilities about debts
● Boss is the responsible
Legal form
● Control
● Tax
● Considerations
Partnership
Features
Partnership business helps to share the risk and profit of venture with the partner. General
partnership indicates that partners can take joint decision and limited partnership (LLP)
reflects that partners take decision in the specific aspect of business.
Advantages
1. Share risk
2. Increasing the source of capital
Disadvantage
1. Unlimited liability
2. Share profit
3. Taxes of self-employment