Types, Size, and Scope of Organisations in Business Environment

Business and the
Business Environment
(Unit 1)

Table of Contents
INTRODUCTION....................................................................................................................3
Different types, size and scope of organisations...................................................................3
Difference between public, private and voluntary organisations...................................3
Difference between micro, small and medium sized enterprises and large
organisations..................................................................................................................7
Range of legal structures associated with different forms of business..........................7
Interrelationship between different organisational functions and how they are interlinked
with organisational structure..................................................................................................8
The impact macro environment has on business operations..............................................10
The internal strengths and weaknesses of Ikea and their interrelationship with external
macro factors. Understand organisational purposes of business........................................12
SWOT Analysis............................................................................................................12
TOWS Analysis............................................................................................................14
CONCLUSION.....................................................................................................................16
REFERENCES.....................................................................................................................17

INTRODUCTION
Business environment is consisting of various factors that has huge impact on
the operations and strategies of the organisation. The environment provides a
numerous opportunities to the business and it is necessary to identify the opportunities
to improve the performance to get success within the business. Business can easily
identify opportunities and overcome from the negative impacts if they are aware of all
the factors. Within the environment
This report will cover case study of IKEA stores which is a British multinational
conglomerate, who are operating their business in all over the world. They are selling a
product such as home appliances, home accessories, ready meant furniture, and
including home services.
This report will explain the types of businesses including their size and scope. this
report will also discuss about the functions within the organisation and there Enter
relationship with each other. this report will conclude past analysis to identify the factors
within the business environment that affect on the company’s operations (Xu, W., 2019).
In the end of this report will determine the internal weakness and strength of the IKEA
Company and their Inter relationship with micro factors.
Different types, size and scope of organisations
Difference between public, private and voluntary organisations
There are various type of businesses within the business environment who have
various roles and way of doing their work. Each of the organisation have their own
purpose and their type. Here is the purpose and type of organisations.
Public companies are created by the government bodies and when they create a
public company then their main purpose is to provide benefits to the public and local
communities. most of the companies work for the non-profit, but some of them are listed
as a public company, but they are earning profits it serves highly regulated areas such
as broadcasting and public transportations. Public companies mainly work to add value

for their customers and create product that could be helpful for the public and useful as
well. Examples- Sainsbury is the public limited company who are second largest
supermarket within the United Kingdom an having a good reputation within the market.
Private companies are owned by the individual person or the companies group
who share we spend their own capital investment and also take the benefits and liability.
companies who are registered as the private limited work on the purpose to earn
profitability by selling their goods and products to the customers and customers buy
product from them because they want to satisfy their needs. IKEA is an privately owned
company who are operating their business in various countries and they are selling
products such as kitchen appliances, home appliances and providing home services to
their customers. this company was founded by Ingvar Kamprad In year 1943.
The main purpose of the voluntary companies is too provide benefits to the
society and the work for the welfare of society (Collier, N. And et.al., 2018). they focus
to provide services and help to the needy people and their main source of income is
donations by the NGOs and government bodies. Age UK is an registered charity firm
Within United Kingdom who are Helping the people with the old age group and they Run
a shop and by selling the clothes they earn money that is spent on the old age people to
help them.
The legal entity is in Group or the individual that has legal rights and duties
related to the agreements, contracts, obligations, transactions, penalties and sues. This
term can be applied to any kind of organization formally constituted according to the
particular set of laws governing the country. UK environmental law Association. it is in
legal body that is authorized to make a law elated to the environment and implement
effectively.
There are mainly 4 type of organisation that are public private voluntary and
legal, this all types have their own size and scope that are limited.
Comparison base Public company Private companies Voluntary company
size NHS is an example of
public sector
On the basis of Size
there are many
A voluntary group or
the union is the group