Different Types, Size and Scope of Organizations

Business and the
Business Environment
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Table of Contents
INTRODUCTION...........................................................................................................................4
L01 Explain the different types, size and scope of organisations....................................................4
Different types and purpose of firms: public, private and voluntary sector and legal structures 4
Size and scope of different organizations....................................................................................7
LO2 Demonstrate the interrelationship of the various functions within an organization and how
they link to organizational structure..............................................................................................10
Relationship between several functions of firms and their interrelation to organizational
structure and objectives..............................................................................................................10
LO3 Use contemporary examples to demonstrate both the positive and negative influence/impact
the macro environment has on business operations.......................................................................11
Positive and negative impacts the macro environment has upon business operations..............11
LO4: Determine the internal strengths and weaknesses of specific businesses and explain their
interrelationship with external macro factors................................................................................14
Internal and external analysis of particular firm to identify strength and weakness..................14
Interrelation of strength and weakness with external macro factors..........................................15
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18
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INTRODUCTION
Business environment is the process of having sum total of several factors like internal
and external factors that consists client, employees, demand and supply, owners and many more.
All these factors directly influence different types of functions and operations within the business
along with their overall managing systems. On the other side this assorted factors also influence
working environment conditions of business. Apart from this business environment commonly
brings so many changes within the working process of employees that have positive impact on
them. With the help of this business can be sustained for long period of time into competitive
scenario. Furthermore, this assignment is based on different types of organization such as public
(Crown Prosecution Service), private (Marks and Spencer) and voluntary (Oxfam). Along with
this report includes different types, scope and size of firms and interrelationship of several
functions and their linked with organizational structure. At last, PESTLE analysis and SWOT
analysis in the context of firm will get covered (Avramenko, 2012).
L01 Explain the different types, size and scope of organizations
Different types and purpose of firms: public, private and voluntary sector and legal structures
According to the competitive advantages so many organizations are dealing with
different types of goods and services in order to achieve targeted goals. There are so many firms
who follow assorted kinds of structure, those are as follows:
Private organization: These sorts of firms mainly considered as the person, partnership and
corporation that all are managed and controlled by public with the aim of achievement of
targeted goals in a successful way. Herein, Marks and Spencer has been selected as private firm
which is one of the best British multinational retailers and it is headquartered in London, United
Kingdom. It was formed in 1884 through Thomas Spencer and Michael Marks. It deals with
essential items like clothing, home appliances etc. With the help of dealing with such kind of
items they can achieve their goals through satisfying entire needs and demand of people. This
private firm does not include government pressure so that they always make their own decision
in order to sustain at market for long time (Berg, Kilambi and Siebel Systems Inc, 2014). For
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example: If talk about Apple it is one of the best private firm who produce ample number of
mobile phones, software, computers, Mac book and many more. In order to make these assorted
goods they are not require to take permission from government and make their own decision
towards it. With the help of this they can achieve their goals without facing any government
challenge at marketplace. It develop huge profit for them as private company made for earn
profit.
Legal structure: Marks and Spencer follows organizational legal structure in order to
have limited management levels between employee’s front line and administrative level. With
the help of following such kind of structure organization is able to encourage workforce to take
proper decision making process. Due to less management level of communication becomes
easier which allows frequent changes as well as problem solutions (Ballard and et. al., 2012).
Cooperatives: It is the process that depends on person by whom they are able to meet
social, economic needs of consumers and bring so many functions or approaches to implements
on them.
Purpose: Marks and Spencer having aim to offer its goods and services within general
stores so that upper as well as middle class people can buy their goods on time. Apart from this
they want to add more decorating items within their firm so that they can achieve their goals.
Stakeholders: Marks and Spencer have numerous stakeholders such as civil society
firms, customers, employees, investors and media by which they can get profit at competitive
scenario.
Public organization: Public sector mainly encompassed of firms that are operated and owned by
government as well as exist in order to offer services for people within society. Similarly, public
sector do not made for earn profit. In this sector, Crown Prosecution Services has been chosen as
public firm which is great public agency used for conducting criminal prosecution at England
and Wales. At present, this public agency having approx. 6,000 people as workforce in order to
give huge satisfaction to people through providing better services. For example: National Health
Services is considered as best public firm that commonly improves and considered health of
people in order to give them safety tools towards their health (Bharadwaj and et. al., 2013).
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Legal structure: CPS mainly follows ample number of evidence and police as legal
structure by which they can take accurate decision and able to communicate their different
views.
Sole traders: These are self-employed person who run their own business and does not
consists any kind of legal identification as well as severalty work for society.
Proprietorship: In this two or more people works together along with have
responsibility to manage each function of firm at marketplace.
Purpose: Main purpose of CPS is to overcome crime from the nation through taking
helps from police in order to satisfy people every time. With the help of this they can get proper
information and achieve goals.
Stakeholders: In CPS there are so many people who are considered as stakeholders and
associated with government agencies, financial institutes that helps firm to take strong decision
making process for better growth of society (Hilton and Platt, 2013).
Voluntary Organization: It includes particular group who signs the agreement as per their own
choice is called voluntary firms. With the help of this they can fulfill their aim and achieve
targeted goals. It includes professional associations, learned societies, trade unions and many
more. In the context of Oxfam, it consist several kind of alliances along with twenty independent
charitable trust that works together to reduce poverty from nation. It was established in 1942 by
Cecil Jackson-Cole in England. Thus, this firm is not for profit and seeks human profit always.
For example: NGO’s are effective volunteer firms who generally offer better services to people
and fulfill their needs and wants effectively.
Legal structure: Oxfam apply hierarchical structure for developing best values, beliefs,
norms and trust into the mind of people so that they can build strong community without any
issues. There are few aspects of this structure, which are:
An Unincorporated association: It is known as large number group of people who works
together to achieve desired goals effectively.
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