Types of Organisations Operating in a Business Environment

REPORT ON TYPES OF ORGANISATIONS OPERATING IN A BUSINESS
ENVIRONMENT
From: Business Advisory
Subject: An analysis of types of organisations: purpose, size, scope, legal status and structure
Executive Summary:
This particular assignment includes the analysis of the different types of organizational, its
scope size and organization structure. Further, this includes the impact of the macro and
micro environment factor on the business organisation that is GSK.
1.0 Introduction
An organisation constitutes of a group of people who are organized for a particular purpose.
Te purpose may be any kind of business, entrepreneurship or any department of government.
Some of the most elemental features of any organisation includes: teamwork, sharing same
goals, leadership, high employees morale, adapting to the risks and the like which indicates
of the organization to be a healthy one.

1.1 Types of organisations
The different types of organisation are discussed hereafter that exemplifies the structures,
scope and size of the organization
Public Sectors Organisations:The public sector organisation is usually comprised of
organisation that are owned and operated by the government and exist to provide services for
its citizens. Through the process of outsourcing, public sector organisation will often engage
private enterprises to deliver goods and services to its citizens.
Basic characteristic of Public organisation
The public ownership consists of the all the organisations that are governmental or
controlled by the public. These often include organisations that are publicly funded
agencies, enterprises and the entities that include delivering public programs, services or
goods (Bouckaert, G. and Van Dooren, 2016). The characteristics of the public
organisation includes are presented in terms of the following:
State ownership: The enterprise ownership is vested to the state that may be under
Central, local or government ownership.
State control: It is controlled both by government directly in relation to its
functionality and management. The government exercises the control in relation to any
kind issues and exercises the control.
Public accountability: These types of organisations are accountable to the public
owing to their funding being done by public. The accountability is done though
committees, legislations, ministers, audit institutions and the like.
Autonomy:These organisations are free from the daily interference in terms
management and affairs excising the utmost autonomy.
Coverage: These types of organisations cover all areas, fields of activity and operations
of the organisation.
Goals and objective
The goals and objectives of the public organisations includes the: economic development,
self-reliance, employment generation, development of backward areas, economic surplus,
consumer welfare, public utilities and egalitarian society, defense, labor welfare and the like.

Legal form of Public Organisation
The legal form of any public organisation is that of corporation, companies or franchises as
well. This is because; it has many rights, duties, and privileges as well (Adamas, 2014)
Private sector organisations
Organisations that are run by companies or individuals are the private sector that is the part of
the economy of any country. The goal san d objectives of private sector organization include
profit maximization, restricting access, transparency in reporting.
Types of private sectors organisation
1. Sole traders:This is self employed public sector where individual is the owner.
 Advantages: Low costs as start ups, owner is the boss. The profits are limited to the
sole trader.
1. Disadvantages: Unlimited liability, no legal distinction, limited capacity to raise
Partnerships: The business that is run by more than one or twenty members is known
as partnership. Partners has to register as self employed.
 Advantage: Partners share the responsibility, richer source of capital, minimal tax
fillings, no double taxation.
 Disadvantages: Unlimited liability, self-employment taxes
 Capital.

2. Companies: Company is a distinct entity that is legal and separate from
shareholders. These can be private or public.
 Advantage: Limited liability to shareholder, easy to transfer ownership by selling
shares favorable taxation rates
 Disadvantage: Expensive to establish, financial affairs are public, profits being
distribute, directors held personally for legal obligations.
3. Joint ventures: Joint ventures are also known as the Limited companies that are
governed by the registered companies.
 Advantage: sharing risks and costs, access to new markets, distribution networks
 Disadvantage: Blurred objectives, difference and management in the organizational
culture.
4. Franchising: Companies are already established and holds reputation
commendable shares in the market. This type of organizations sells their copy right to
the public.
 Advantage: The risk of business failure is very less, established market share,
experience is required.
 Disadvantage: Higher costs, monitoring the ongoing franchise is intrusive, profits
shared among all the franchises.
5. Licensing: Licensing means leasing or renting the intangible asset. This allows the
company to carry out the confidential business that is authorized to the holder of the
license in the business. The creation and the management are all done in terms of the
contract.
 Advantage: The investment is lesser for expansion from the side of the owner.
 Disadvantage: Quality is not maintained, less control over the licensed business.