Purpose and Scope of Organizations

Business and Business environment

Contents
Introduction......................................................................................................................................2
LO 1.................................................................................................................................................2
P1 Purpose of different organizations..........................................................................................2
P2 Size, scope of different type of organizations........................................................................4
LO2..................................................................................................................................................5
P3 Organizational function and their interrelationship with objectives......................................5
LO 3.................................................................................................................................................7
P4 Positive and negative impact of Macro environmental factors..............................................7
LO 4.................................................................................................................................................9
P5 Internal and External analysis of British Airways..................................................................9
P6 Interrelationship between strength, weakness and external macro factors...........................12
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

Introduction
Business environment consist of many internal and external factor. These components
impact on functioning, supply, demand of the firm. It is difficult for the management to predict
the future because business environment is dynamic in nature. Uncertainty can take place
anytime thus, it is essential for the entity to manage internal and external environmental factors
effectively (Grant, 2016 ). Present study is based on British Airways which is the leading airline
company and having strong command over market. Current assignment will discuss purpose of
different type of organization their size and scope. Furthermore study will shed light on functions
of an organization and its relationship between objective and structure. In addition, SWOT
analysis and PESTLE analysis model will be used in respect to British Airways.
LO 1
P1 Purpose of different organizations
British airways are the leading private airline in United Kingdom. It carries more than
34.6 passengers every year and has strong customer data base. It offers luxurious travel facilities
to its travelers which help the entity in satisfying these people and gaining their trust as well.
There are many organizations which run for different purposes (Fleisher and Bensoussan, 2015).
Public organization
Public firms are those entities which are governed by government and are publically
traded. These types of organizations are operated, governed and controlled by government. NHS
is the great example of public limited firm. National Health Service is the government body
which work for the well fare of population. Its main objective is to provide satisfactory services
to customers so that their needs can be fulfilled (Yee-Loong Chong and et.al., 2014). Another
objective of this firm is to create value for shareholders so that they be associated with the
organization for longer duration. These corporations pay more attention on fulfilling corporate
social responsibilities so that they can improve condition of society. They work to earn some
profit so that cost can be recovered and it can conduct further operations easily.

Tesco is another public limited firm which main purpose is to offer products and services
as per the need of customers. They work in such manner so that it can contribute in the economic
development and can generate employment opportunities for population (DeFusco and et.al,
2015). It has many shareholders which have direct power to influence the operations of the
company. It is listed in stock exchange.
Private organization
Private organizations are those firms which do not ruled by government. British Airways
is the private organization, board of directors take decision for the company. Its main purpose is
profit maximization. Company works to earn high profit so that it can sustain in the market for
longer duration and can gain competitive advantage. British airways provide luxurious travel
facilities to its customers which attract new consumers and make them satisfy towards the brand.
Apart from this, it has large customer data base which support entity in increasing its revenues
(Abrahamsson and et.al., 2017). Another purpose of the cited firm is to gain competitive
advantage. There are many firms those which are operating in the same field such as Easyjet etc.
These competitors provide same services to passengers. In such condition it becomes difficult for
the British Airways to sustain. But it offers unique facilities and luxurious travel benefits which
make it different from others. This helps the firm in gaining competitive advantage. Another
objective of British Airways is to satisfy consumer’s needs and make them loyal towards the
brand so that they give their positive reviews to others. Expansion across the world is the
purpose of the company, it plans to expand its business in different location so that it brand
image can be spread across the world (Batista and Cornachione, 2014).
Private organizations have no intervention of government, these firms can make their
decisions by own. It has limited liabilities, they are listed in stock exchange. It needs to have
paid-up share capital of one lakh and it is restricted to transfer its shares. Two or more person
can hold maximum share in private firms and these persons have high power to take decision for
the growth of the organization (Virglerová Dobes and Vojtovic, 2016).
Voluntary sectors
These are another type of organization which generally work for social welfare. Profit
maximization is not the aim of these firms. They just work for providing satisfactory services to
population so that they live their life easily. For example Red Cross is the voluntary firm which