Different Types and Purposes of Organisations

This report discusses the different types and purposes of organisations, including public sector firms, private sector organisations, and voluntary firms. It explores the size and scope of these organisations and the interrelationship between different organisational functions.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different types and purposes of organisations.................................................................1
P2. Size and scope of a range of different types of organisations..........................................4
TASK 2............................................................................................................................................5
P3. Relationship between different organisational function...................................................5
TASK 3 and TASK 4.......................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment is referring as the accumulation of overall person, entities and another
aspect that may or may not be under organisational control but this can impact their performance,
development and sustainability (Alsaad, Mohamad and Ismail, 2017). The company undertaken
in this report is H&M which is a leading clothing retailer and operates in around 62 countries. Its
headquarters is in Stockholm, Sweden. This report covers several organisation's kinds, intent,
size, scope and others, interrelationship among organisational functions.
TASK 1
P1. Different types and purposes of organisations
In context of ownership, organisations are divided into three kinds that has different, scope,
objectives and others. So, different types of organisation are described below:
Public sector firm is considered as those company that are not managed as well as
controlled through any specific person. These firms are controlled through government that may
be state or central (Apăvăloaie, 2014). Within this context, the selected organisation is NHS.
Background of firm: The public firm like NHS, the National Health Service was formed in
1948 at England, Scotland and so on. It provides the healthcare facilities to public initiating form
dental to optical treatment services. It only charge fees from patients for their prescription only.
Aneurin Bevan is known as the founder of this respective organisation who run its company to
provides help to overall patients who are suffering from the diseases. Product and services: The services that is serve by respective organisation are many
forms of tests, medicines free or at reasonable price, facilitating medical services to
overall person. All significant care and services are provided through them to remove
diseases as well as make individuals healthy. Vision: The respective organisation vision is depending on 3 components such as better
health, better care as well as effective value. Mission: National Health Services mission is to serve effective quality of care to whole
public daily for better health.
 Objectives: National health service objectives is developing surroundings for both
workers as well as patients for facilitating them benefits.
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 Purpose: The NHS have 4 main purpose such as developing enthusiasm for scholarship,
stimulating expectation for giving services, promoting leadership as well as creating
characters of secondary school’s students. Types:
◦ State government: This is known as the oldest kinds of company which is a part of
government department. It has not any separate existence other than government that
performs under one department control. Such as railway, broadcasting and others.
◦ Statutory or Public Corporation: It is the kind of firm that is develop through
particular parliament act or state or central legislation (Gupta, 2013). It is financed
through government as well as its objects, limitations, powers are also decided
through legislation act. Legal structure: The legal structure of respective public company is public corporation
as this is develop with the assistances of particular parliament act. Moreover, this is
financed through government in order to give effective services to UK public related to
medical test, treatment as well as for developing its health situation.
 Stakeholders: Its stakeholders are commentators, clients, channels and many more.
Private sector organisation is referring as an organisation which are managed and
controlled by an individual’s such as sole proprietor, owner and others (Belás and et. al., 2014).
The private firm is H&M.
Background of firm: H&M is the renowned clothing retailer firm which is famous for
their fast fashion clothing. It operates in about 62 countries having headquarters is in Stockholm,
Sweden. They have around 5000 outlets and employ about 120,000 staff (Number of H&M
Group stores as of 2018, by selected country, 2019).
 Product and services: H&M offers fast fashion clothing for men, women, children and
teenagers. This also offers accessories in all over the country. Moreover, this facilitates
quality services to their clients.
 Vision: Its vision is to lead the changes towards circular as well as renewable fashion
while being an equal and fair firm.
 Mission: The mission of H&M is to drive long lasting optimistic modification as well as
develop living situations through investing in societies, individuals as well as creative
ideas.
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 Objectives: Its objectives is to educate as well as motivate their customers upon how to
take care of its garments to prolong their lifespan.
 Purpose: Its main purpose of H&M is to enhance its market share and development in
order to maximise profitability level.
 Legal Structure: The legal structure of private organisation may be corporate or
unincorporated. So, H&M follow the corporate legal structure.
 Stakeholders: Its stakeholders are clients, employers, staff, suppliers and many others.
Voluntary firm: This is defined as the non-profit company which are developed for the
betterment of society. This is also called the association, Union and society which is a
individuals group that enters into agreements like volunteers for governing body for attaining
goals (Belás and et. al., 2015). Background: Oxfam is a voluntary firm which was developed in year 1942 and also
called the 20 charitable company confederation. This particular organisation is mainly
focused upon global poverty alleviation, disaster and so on. It is the non- profit team with
aggregation of activities. Respective organisation was developed in United Kingdom,
England and many more. Winnie Byanyima. Products and services: Oxfam products and services which they served are facilitating to
disaster suffering individuals. This formed creative manner for people in order to lift
them out from poverty as well as thrive. Whenever the crisis happens they give assistance
to save as well as redevelop livelihoods. Vision: The vision of respective organisation is to develop world poverty free. It wants to
create a world in such a way in which all people are treated fairly in order to enjoy its
life, rights an assume accountabilities. Mission: Respective organisation mission is to aids in developing solutions to injustice of
poverty. As this is a part of international movement for modification, making future that
is poverty free.
 Objectives: The Oxfam objectives is to aids in development of last solution to poverty
injustice. Purpose: The main purpose of respective organisation is assisting to develop long lasting
solutions towards poverty injustice. Types:
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◦ Unincorporated Association: It is the firm that is formed through the assistance of
agreement among group of individuals that comes together for another reasons
instead of making profitability. It is the kinds of company that do not need any
amount for setting up into market place. Whole details are explained within
agreement that required to be comply through members as well as in case of
contractual obligations.
◦ Trust: This is considered as the corporation that is developed for operating fiduciary
of agencies as well as trusts. Moreover, it is owned through one of three forms of
structure like bank, independent partnership or law company (Franks and et. al.,
2014). This is not crucial to exercise whole power that have granted to them. In this,
there are two individual’s beneficiary as well as trustee in order to manager various
activities. Legal structure: The legal structure of Oxfam is Unincorporated association which is
developed with an agreement among members. This works for individuals not to obtain
profit.
 Stakeholders: Respective organisation stakeholders are institution, volunteers, workers,
partners, government and many others.
P2. Size and scope of a range of different types of organisations.
The size as well as scope of several kinds of firms are:
Public firm: Size: The NHS provides their facilities to above 54.6 million people within UK and 54.3
million individuals in England. Also, they deal with about 1 million patients in every 36
hours that includes regular screening, treatment and so on. Moreover, they have many
hospitals and primary care with about 150, 000 doctors and 320, 000 nurses.
 Scope: The National Health Care aim to bring some reforms for challenges and
opportunity both for the pharmacy professions. The present moves into commissioning
structure, focusing by integrated care which assists in enhancing better outcomes from
medicines.
Private Organisation:
 Scope: The scope of H&M is to start their more stores across various countries in which
it can sell its products effectually. As they are performing into clothing sector and also
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planning to explore its entities practices into other industry through manufacturing
innovative and trendy products.
 Size: The H&M size is huge as they run in approx. 5000 outlets and employ around 1, 20,
000 workers. Also, considered as the second valuable brand in terms of apparel across
world.
Voluntary firm: Scope: Oxfam expanded their services and facilities within many parts of world. This
performs with the partner company as well as provides free services to those individuals
whose financial condition is not good. It determined for the changes that help them in
mobilising the person power against destitution.
 Size: Oxfam that comes under voluntary firm provides its services to the public of United
Kingdom in order to obviate poverty and others. Also, there are about 20 independent
charitable company who performs for the country in order to make country free from
poverty. Moreover, it independent charitable company works within around 94 countries
and liable for the charity activities, assets as well as governance.
TASK 2
P3. Relationship between different organisational function
The interrelationship among different functions of H&M are described below:
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Figure 1 Organisational chart
(Source: Organisational chart. 2019)
 Sales and marketing function: Within H&M, both functions are interlinked with one
another within work area. Sales as well as marketing section develop strong relation so
that sales department obtain a rough idea regarding their target clients by marketing.
Through performing marketing efficaciously into cut throat competitive world, the sales
ratio may have enhanced at marvellous scale (Dyllick and Muff, 2016). H&M
concentrated upon this two entities functions in order to attained targeted objectives
within cut throat competitive world. This effects the organisational structure of H&M
positively as both are interlinked efficaciously.
 Marketing and R&D: When R&D as well as marketing functions both are focused on
acquiring knowledge regarding users’ needs then both should have to make their works
easier as well as results become more efficacious. The information render by marketing
manager assists R&D manager to perform proper investigation for attaining profitable
results. Apart from this, both functions have to work together in order to get knowledge
regarding changing trends for increasing productivity. Thus, respective company has to
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make decisions according to information rendered by both department managers for their
development and products modification.
TASK 3 and TASK 4
Covered in PPT
CONCLUSION
From the above report, it has been concluded that business environments is the crucial
aspects within organisation as it assist them to know about the factors impact their entities.
Moreover, there are 3 types of organisation that are public, private and voluntary which has
different scope, size, purpose and others. Also, the interrelation among various function aids
them to attain objectives efficaciously.
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REFERENCES
Books and Journals
Alsaad, A., Mohamad, R. and Ismail, N. A., 2017. The moderating role of trust in business to
business electronic commerce (B2B EC) adoption. Computers in Human Behavior. 68.
pp.157-169.
Apăvăloaie, E. I., 2014. The impact of the internet on the business environment. Procedia
Economics and finance. 15. pp.951-958.
Belás, J., and et. al., 2014. Significant attributes of the business environment in small and
meduim-sized enterprises. Economics and Sociology.
Belás, J., and et. al., 2015. The business environment of small and medium-sized enterprises in
selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management.
Dyllick, T. and Muff, K., 2016. Clarifying the meaning of sustainable business: Introducing a
typology from business-as-usual to true business sustainability. Organization &
Environment. 29(2). pp.156-174.
Franks, D. M., and et. al., 2014. Conflict translates environmental and social risk into business
costs. Proceedings of the National Academy of Sciences. 111(21). pp.7576-7581.
Grewal, R., and et. al., 2015. Business-to-business buying: Challenges and
opportunities. Customer needs and Solutions. 2(3). pp.193-208.
Gupta, A., 2013. Environment & PEST analysis: an approach to the external business
environment. International Journal of Modern Social Sciences. 2(1). pp.34-43.
Online
Number of H&M Group stores as of 2018, by selected country. 2019. [Online]. Available
Through:<https://www.statista.com/statistics/268522/number-of-stores-worldwide-of-
the-hundm-group-by-country/>
Organisational chart. 2019. [Online]. Available Through:<https://www.edrawsoft.com/retail-
organizational-chart.php>
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