Different types of organizations with their aim and lawful structures

This report discusses the different types of organizations, including private, public, and voluntary organizations, and their respective aims and legal structures. It also examines the interrelationships between different functions within organizations and their link with organizational structures and objectives. Additionally, the report explores the positive and negative impact of the macro environment on business processes and conducts a SWOT analysis. The case study focuses on Unilever, a large-scale UK-based company.

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
P1 Different types of organizations with their aim and lawful structures..............................3
P2 Explaining size, scope, vision, mission and stakeholders of different organizations.......4
M1) Linkage of size, scope and Structure with enterprise offerings and objectives..............6
TASK2.............................................................................................................................................7
P3 Examining relationships between different functions and their link with organizational
structures and objectives.........................................................................................................7
M2) Merits and demerits of interrelations and effect over organizational structure..............8
TASK3.............................................................................................................................................9
P4 Positive and negative impact of macro environment on business processes....................9
M3 Application of PESTLE model......................................................................................10
M3 Application of PESTLE model......................................................................................11
TASK4...........................................................................................................................................11
P5 SWOT analysis................................................................................................................11
M4 Application of SWOT analysis......................................................................................12
P6 Determining relations of external macro environment with strengths and weaknesses. 13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business is an economic system where products or services are exchanged in monetary
terms. Business Environment is combination of external or internal factors like management,
customers, suppliers, government, technology, trends, economic changes, etc. All these factor
affects functions and operations of organization, directly or indirectly (Corcoran and Gillanders,
2015). The present report is based on Unilever, a large scale UK based company. It is one of
largest company dealing in consumer goods in more than 190 countries. In this report various
types of organization will be studied with their purpose, size, scope and legal structure.
Interrelationships between organizational functions and other department and how they are
connected to objectives and structure. Later on, it will also examine positive and negative effects
of macro environment on business operations of respective company. Furthermore,
environmental analysis will be conducted to identify strengths and weakness of businesses. It
will also provide description about its interrelationship with the external macro factors.
TASK1
P1 Different types of organizations with their aim and lawful structures
Private Organization: These business enterprises are the one which works for earning
higher profits. Private company can be managed by individuals, partnership, associations and
agency. It includes all those firms that are operating for profit and self-sufficient without any
state interference. There are basically three main types of lawful structure in private form of
company which are described below:
Sole Proprietorship: It is wholly owned by an individual and single person who bears all
risk and enjoys profits. It requires low capital investment and small businesses like grocery
stores, salon, etc. falls under this category (vom Brocke, Zelt and Schmiedel, 2016).
Partnership: When two or more individual form organization to earn profits, such firms
are partnership firms. They divide profits, losses, roles and responsibilities equally among them.
Limited Liability: It includes big companies like Unilever which operates business as
separate entity from its owners. These companies work at international scale pays taxes under
firms name. Unilever comes under this legal structure which performs all of its activities under
the provision of company's act. Also, all of the operational activities of the company are
performed by its highly skilled and devoted 155000 number of employees.

Public Organization: It is mainly controlled and operated by governmental authority for
providing better products or service to society (Bah and Fang, 2015). British Broadcasting
Corporation is public sector broadcaster located in London and it is considered as largest
broadcasting station in world. Legal structure of public organization is described below:
(A) Local organisation: Local government monitors and control these types of
businesses.
(B) State organisation: In this, major control is under the hand of state government
which monitors business enterprises.
(C) Central organization: These types of business associations are managed, operated
and controlled by centralized government. BBC is operating its activities under central
government of United Kingdom. All of main activities that is functioning, operations and other
associated work of the entity are handled and managed by government of UK only. It can also be
said that firm has to operate under the jurisdiction of central government.
Voluntary Organization: Business enterprises belonging to the group of people, agency,
association or individual who works for societal development with nonprofit earning motive. It
works with help of volunteers who provides services to individuals, groups and nation. The
purpose of volunteer organizations to provide higher development to society (Tregear, 2015).
These volunteers enter into agreement to complete purpose like trade associations, environmental
groups, learned societies, etc. Oxfam is voluntary association that works globally to eradicate
poverty and injustice present in world. This provides individuals to know their rights, enhance
livelihoods and contribute in decisions which effects their lives. Legal structures of voluntary
business enterprises are of two types that are explained below:
 NPO: NPO basically stands for Non-profit organisations which mainly works for
serving society or individuals without working for the motive of earning profits.
 NGO: These types of enterprise carry out their operational activities without any kind
of interference of government. Oxfam is an example of NGO which is working for
the purpose of raising money for the third world countries in need of aid and funds. It
is run by the group of trustees who have developed Council of Trustees which
governs the Association of Oxfam.

P2 Explaining size, scope, vision, mission and stakeholders of different organizations
Overview of Unilever: Unilever is largest provider of consumer goods globally with
wide variety of goods and brands. It is a private organization which deals in consumer goods like
food, personal care and household segments, over 400 brands. Product of this business enterprise
are supplied in more than 190 nations worldwide. Unilever has a legal structure of public limited
company which issues their shares in public to raise capital (Levi-Jakšić, Jovanović and
Petković, 2015). Stakeholders of this company includes its employees, board members,
customers, suppliers, vendors etc.
Purpose: The primary purpose of Unilever is to increase their concern at huge level so
that they can make higher profits.
Size and Scope: Its headquarter is in London, UK and it operates in more than 190
nations and have approximately 169,000 employees. It has wider scope because it invests in
research and development, focus on trending and ensures innovative product to meet customer
satisfaction.
Vision: “To become a leader within the confines of global retail sector.”
Mission: “To provide high quality products to customers to gain high satisfaction from
them.”
Legal Structure: It is identified that Unilever's legal structure is highly depends on top
authority which includes CEO and board of directors. They have the right to take all the
decisions with the assistance of law and legislation.
Overview of BBC: British Broadcasting Corporations (BBC) is public service provider
as broadcaster and one of oldest as well as largest station. The company mainly offers public
broad cast services to customers which includes desktop alerts, news feeds, BBC news and sport
on interactive TV are some of the main services provided by this company to its competitors.
Services of this company are supplied to customers worldwide. It basically comes under
centralized legal structure. The main stakeholders of this company are government, service users,
employees, suppliers, investors and many other business related person (Aithal and Aithal,
2016).
Purpose: The important purpose of British Broadcasting Corporations (BBC) is to
resolve national issues & maintain wellness in society

Size and Scope: It has around 20,950 number of employees worldwide who effectively
operates their business in all operating nations. It has broad scope within the industry as they can
add on some specialized services in their portfolio that will support in influencing customers
interest.
Mission: “To act in the interest of society by providing effective broadcasting services
across the globe.”
Vision: “To become word of mouth for customers.”
Legal Structure: In present context of BBC each and every decision of the company is
being taken by the government. State as well as central government are the one who takes all the
decisions for business functioning.
Overview of Oxfam: Oxfam is a multinational association of 17 firms which is working
collaboratively for reducing global poverty and injustice. It mainly belongs to NPO legal
structure. The main stakeholders of this company includes individuals and group of
communities, organization, donors, supporters, staff, government of UK, and general public of
different countries.
Purpose: Main purpose of such organization is to provide developed and healthy society
to the individuals across the world.
Size and Scope: It operates in more than 90 nations with local communities to eradicate
poverty issue and address emergencies across globe (Oxfam Marketing Plan, 2016). There is the
broad scope of company in other field of areas social work too. By entering into this zone, they
can serve society in better manner.
Vision: “To maximize charities at international level by joining hands with different
communities.”
Mission: “To eradicate poverty across the periphery of every country.”
Legal Structure: Voluntary business organization highly depends upon top authorities
and trusties. In reference to Oxfam each and every business decisions highly depends on the
trusty. All such decisions are highly associated with the development of overall society and
employees.
M1) Linkage of size, scope and Structure with enterprise offerings and objectives
Structure, size and scope of business organisations are directly related to business
objectives add their product offering. This is because, objectives of business enterprises are

developed as per the availability of capabilities and resources. Also, formulation of business
objectives is done by considering scope, size and structure of the company (Gradl and et. al.,
2017). Apart from this, it is also seen that objectives of large scale companies are also larger
whereas these objectives are smaller for small scale companies. Along with this, it can also be
said that offering of company also depends upon their size as large scale company has vast
portfolio of products and services whereas, businesses belongs to small scale has limited
products and services in their product portfolio.
TASK2
P3 Examining relationships between different functions and their link with organizational
structures and objectives
All the business functions of company are interlinked with each other and also has major
influence over organizational goals and objectives (Boons and Lüdeke-Freund, 2013).
Interrelationships between various functional units of organization is as follows:
Research & Development and Production Department: Research department of
Unilever identifies various customer's need and design product according to specification. This
department further communicates these developed specifications to the production team so that
they can incorporate this information in their manufacturing and produce effective products as
per the requirements of customers (Shelton and Shopley, 2017). This will support them in
fulfilling customer’s requirement which will ultimately contribute in the fulfillment of
organizational ultimately goals of providing best product to customers according to their
requirements.
Marketing and Human Resource Department: Marketing departments needs skilled
workforce to operate at ground level and meet targets effectively. For this, marketing division
need to communicate job specifications to HR department. For instance: HR department of
Unilever further uses job specification for hiring marketing employee and supports marketing
team in fulfilling their individual level of targets. This is clearly depicts their interrelationship of
HR department and marketing department with one another as without their support they cannot
execute their respective job responsibility in rightful manner. As, Unilever make use of
decentralized structure, this makes its easier for respective departments to communicate with

other departments. As a result, they are able to accomplish their goals and objectives in quicker
manner.
Finance and Marketing Department: Every activity of marketing department requires
funds and financial unit ensures that there are adequate sources of funds to finance promotional
campaigns to advertise product and increase brand awareness (Hockerts, 2015). For instance:
Marketing department of Unilever develops their budget for marketing activities and then further
takes approval from finance department. Without taking approval for the same marketing
department can perform their work and attain respective targets. This directly support in
fulfillment of organizational objectives which is higher sales. This depicts their interrelationship
with one another as with support of finance department marketing team is able to execute their
activities and directly brings hike in finances with effective sales performance.
Organizational structure: It is systematic outline about flow of various activities
directed towards achieving firm's goals. There are centralized and decentralized structures that
helps businesses to separate functions, power and authority.
Centralized Structures: In this type of organizational structure decision-making power are
kept in few hands mainly in top management without any participation of middle or lower level
managers. This brings easy control, coordination activities and quick decision making. BBC is
public company which adopts this structure to maintain power in hands of Royal Charter
Commission to make and implement relevant decisions.
Decentralized Structure: In this decision making power is distributed to middle and lower
level managers in hierarchy level. This improves employee motivation, better decisions and
improved productivity. Unilever has adapted decentralization as its organizational structure for
providing higher power to individuals and also contributes in the improvement employee’s
efficiency (Benmamoun and et. al., 2016).

(Source: Decentralized organizational chart, 2018)
M2) Merits and demerits of interrelations and effect over organizational structure
Interrelationship of one organizational function with another clearly states that it makes
easier for companies to attain their individual objectives as well as collaborative organizational
functions. The main advantage of interrelationship among different organizational function
maintenance of free flow of organizational work as every work is completed within the company
as per their organizational structure. On the other hand, the main demerit of interrelationship
among different organizational function on its organizational structure can be seen in the form of
raise of conflicts within the company. This mainly occurs due to different perception managerial
head of different functions which affects attainment of their objective.
TASK3
P4 Positive and negative impact of macro environment on business processes
Unilever is British-Dutch consumer goods company located in London and operating worldwide.
It offers different brands including beauty products, cleaning, personal care, food and beverages.
Due to its operations in different countries, macro environment has great impact on business, its
influence can be seen through PESTLE analysis:
Political: These factors include intervention of government in industry like political
stability, corruption, foreign trade policy, labor law, etc. Unilever abides by all local and regional
laws of every country where its products are distributed (Buno, Nadanyiova and Hraskova,
Illustration 1: Decentralised organisational chart, 2018.

2015). This helps company in executing all of its operational activities with less hindrance which
leads to quick attainment of organizational work. The strong political conditions of dominant
revenues generating countries such as US, UK tend to serve as the opportunity for Unilever.
However, the large extent of corruption prevailing in United Kingdom making it stand on
Number 5 in terms of “Most Corrupt Nations across the globe” tends to hamper the operations of
the respective organization. Further, Unilever operates in almost every country and frequent
political policy changes results in disadvantage for this company for which they have to face
civil and criminal cases which effects brand image and revenue generation.
Economical: Factors including inflation rate, economic growth, exchange rate, income
level which affects purchasing power of customers and demand or supply for company. Effective
economic situation of UK brings opportunity for Unilever as they can use valuable
transportation, infrastructural and communication networks. Whereas, BREXIT influence
inflation that affect profitability of respective company as they are not be able to execute their
operational work in effective manner (Pounder, 2015). Further, the unemployment rate of UK is
3.9% which implies that the labor of UK can be employed by organization only through
stipulation of high wage rates.
Social: It represents characteristics and values of population like growth rate, age,
income distribution, attitude, lifestyles and culture of society. Unilever offers products that focus
on personal care and well-being which is becoming lifestyle these days. It has positive impact on
developing strong image and capture market share globally. In Asian countries where social
needs of consumers changes frequently, Unilever fails to make changes according to social needs
and this impact on its market share and brand image which leads to decline in profits
(Schaltegger, Hansen and Lüdeke-Freund, 2016).
Technological: These factors are innovations in technology that affects industry and
market directly or indirectly. Unilever uses higher level of automation machinery which makes it
easier for them to supply products and services to customers on time. This also lead to attainment
of competitive edge within industry. Further, social media is one of the most rapidly emerging
technological trends within every part of the globe which is accessed by over millions of people
at a single point of time. This opportunity can be leveraged by Unilever in order to ensure long
term sustainability at market place. On the other hand, most rivalry companies adopt latest

technology even before Unilever which affects operations of this organization due to substitution
effect.
Legal: These are specific laws related to employment, consumer protection, copyright
and patent, safety etc. Unilever is subjected to laws and rules related to food, personal care,
health, safety of employees and others of industry (Kolk, 2016). Unilever follow the laws of
every country to avoid any kind of unethical process and trade successfully to become global
leader. But, in some cases Unilever fails to follow rules which impact its operational activities.
Environmental: This factor is comprised of environmental laws that are required to be
adopted by company for sustaining longer in market. Unilever promotes renewable and
sustainable products through Eco-friendly material used in designing and packaging. This
supports them in developing their positive brand image within the industry. But this
sustainability comes with a cost. Unilever has to spend a lot to develop its products eco-friendly.
M3 Application of PESTLE model
On the basis of above described PESTLE analysis of Unilever, it can be said that every
factor has its positive as well as negative influence over organizational performance. From this, it
has been identified that stable UK political stake of UK government, compliance with
legislation, adoption of advance technological etc. provides effective support to Unilever and
allows them to grab maximum opportunities (Otache and Mahmood, 2015). Whereas, negative
influence of PESTLE analysis can be seen in the form of changes in taste and preferences of
customers from social factor, adoption of latest technology by rivalry company and inflation
could place negative influence over their organizational performance that could also affect their
sustainability.
M3 Application of PESTLE model
On the basis of above described PESTLE analysis of Unilever, it can be said that every
factor has its positive as well as negative influence over organizational performance. From this, it
has been identified that stable UK political stake of UK government, compliance with
legislation, adoption of advance technological etc. provides effective support to Unilever and
allows them to grab maximum opportunities (Otache and Mahmood, 2015). Whereas, negative
influence of PESTLE analysis can be seen in the form of changes in taste and preferences of
customers from social factor, adoption of latest technology by rivalry company and inflation

could place negative influence over their organizational performance that could also affect their
sustainability.
TASK4
P5 SWOT analysis
SWOT analysis is essential to identify organization's Strengths, Weaknesses,
Opportunities and Threats after studying internal and external environment.
SWOT Analysis of Unilever:
Strengths Weaknesses
Unilever has strong global presence which
makes it easier in maintaining its sales
performance worldwide.
Strong brand image and increasing popularity
of Unilever because of meeting demand of
every age and income level (Rubtsova and et.
al., 2015).
The company has lesser focus over grocery
sector due to more emphasis on personal and
health care products which becomes its major
weakness as they generate negligible revenue
from that sector.
Distribution channel is solely dependent on
distributors and retailer's demand.
Opportunities Threats
Changing lifestyle towards healthier products
increasing demand for organic and herbal
goods of Unilever.
The company can also add on premium and
specialised products in skin care segment for
customers as it is becoming trendy across the
world.
Increasing competition at local as well as
global level is becoming major threat for
Unilever.
Global environment is full of uncertainties and
estimation is impossible thus create threat to
working and strategies for Unilever.
SWOT Analysis of BBC:
Strengths Weaknesses
BBC has started its operations from 1922 and
still maintaining its reputation which increases
Negative controversies about this company has
affect its brand image at market that has also
influenced its sales performance in negative

customer loyalty.
Strong command in technical, software and
graphic design supports this company in
becoming market leader in industry.
manner (Mark and Nwaiwu, 2015).
Operating cost of BBC is higher as compared
to its competitors which is affecting their
performance and becoming major weakness of
respective company.
Opportunities Threats
Joint partnership with other satellites channels
will bring numerous of opportunities for BBC
as its popularity will enhance in quicker
manner.
It can also enter into other sector like
entertainment and fashion zone, for gaining
more opportunities that will lead to higher
monetary gain.
The major threat faced by BBC is from its
competitors among them all major one is
CNN.
Introduction of more number of domestic
channel is becoming major threat of BBC
channel as its viewers might divert to these
new channels.
M4 Application of SWOT analysis
As per the evaluation of SWOT analysis, it can be said that this provides effective
knowledge to manager about their organisational actual condition. This also aware them about
their core weaknesses for which manager of the company is required to make effective decision
in order to address them in appropriate manner. Along with this, managerial team can also take
help from opportunity section in order to develop future strategies for them. This will definitely
support them in attaining their organisational goals in quicker manner as because of this the
company is able to improve their organisational performance at marketplace (Adeola and
Ezenwafor, 2016). Unilever can use their SWOT matrix to identify their opportunities by which
management of this company can decide in which market they should expand to attain
sustainable growth and development.
P6 Determining relations of external macro environment with strengths and weaknesses
Relationship between macro environment with strengths and weaknesses shows both
positive and negative impact on organisation. It shows that how external factors affects internal
environment of company (Vaiman, Sigurjonsson and Davidsson, 2011). Unilever and BBC's
pestle analysis will have impact of their strengths and weaknesses in following ways:

Particulars Unilever BBC
Political As with the help of political
stability of the country, it will be
possible for the company to
formulate long term policies, this
will prove to be strength for the
company as the products and
services of company will be
provided at constant prices for
long period of time.
According to strong political
condition of UK, the government
is also strict towards compliance
of all laws. This directly hampers
working proficiency of BBC as
complying with every law delay
their working capability. As a
result, it places impact over their
performance in negative manner.
Economic Due to the increased issues
related to transportation costs,
communicational networks, it has
proven to be weakness for the
company as this will impact more
reduction in the reach of grocery
products to the reach of their
customers.
Unemployment rate of UK is
3.9%. This becomes weakness for
BBC as for enhancing their
workforce, it is essential for
company to provide higher wages
to employees.
Social Unilever is providing their
customers with high quality
products and services which has
created good brand image with
the help of which it will be
possible to provide their products
to different age groups of people
which will also be accepted
easily by them. These positive
situations are proven to be a
strength for Unilever (Austin,
Dávila and Jones, 2017).
People of UK feels more attracted
towards new things which simply
means that social factor of this
nations can be considered as
weakness for BBC as increasing
number of channels are
influencing its customers towards
them. This is reducing its
clientele.

Technological Along with the high level of
technology, the improvements in
the channels of distribution of
organisation assist the company
with positive effects (strength).
Adoption of latest technology
requires higher cost. This brings
difficulty for BBC.
CONCLUSION
As per above described report, it is concluded from above report that enterprise
environment includes all internal and external factors which directly or indirectly affects working
of business. Different types of companies like private, public and voluntary organisations which
differ in various contexts. Their objectives affect relationships of various structural departments
according to its distinguish organisational structure. Usage of PESTLE analysis is helpful in
exploring various macro environmental components that has affirmative and unsupportive
impact on processes and decisions of organisation. Analysis of internal and external environment
of business identifies capability, powerlessness, opportunities and threats of organisation.

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Unilever SWOT & PESTLE Analysis. 2019. [Online]. Available Through:
<https://www.swotandpestle.com/unilever/>.
Oxfam Marketing Plan. 2016. Online Available Through:
<https://barbradozier.wordpress.com/2016/05/04/oxfam-marketing-plan/>.