Types of Organisations and their Link with Objectives and Structure

Business and Business
Environment

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
Part 1................................................................................................................................................3
1. Different types of organisations...............................................................................................3
3. Link of different organizational structure, size and scope with their objectives.....................5
Legal structure of small organisation is limited company (Wood and et.al., 2019)....................6
Part 2................................................................................................................................................9
1. Internal and macro analysis of specific organization in order to identify strength and
weaknesses...................................................................................................................................9
2. Contemporary examples for demonstrating critical impacts of macro environmental factors
on the business operation...........................................................................................................11
3. Application of SWOT with interrelation or impacts of macro and micro factors.................13
4. key findings and critically evaluate how both macro and micro factors impact upon the
business objectives and the decision-making process within the organisation.........................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business environment refers to collection of all elements and factors that affect and
surrounds business environment. There are different organisations and environment of these
organisations are also different from each other. This report aims at discussing types and
purposes of organisations and their legal structures. Later this report will also discuss size and
scope of different types of organisation and how different organisational functions relate with
each other and their link with organisational objectives and organisational structure. In second
part report will involve analysing positive and negative influence of organisation on business
organisation. For the purpose of environment analysis report will contextualise Sainsbury’s chain
of supermarkets in UK and on the basis of market share is second largest chain of supermarket. It
was founded in 1869 and headquarter of the company is in London, UK. Sainsbury’s serve UK
and Ireland and operates around at 1428 locations.
Part 1
1. Different types of organisations
There are several types of organizations and these organizations mainly differentiates on
the basis of sector in which they operate. These sectors and organization are-
Public organisations
Organisations operating in public sector are known as public organizations. Such
organisations are owned by government and their operations and administration is also a
responsibility of the owner government. These organisations operate with the purpose to provide
required and basic services to public and society. Mainly these organisations operate on national
level, state level and local level on the basis of their ownership by governments. These
organisations’ size and scope differentiate on the basis of ownership of the government. This
means that organisation owned by local government in such situation size and scope of
government both remains limited (McEvoy, Ragab and Arisha, 2017). Such organisations are
financed by the funds that are raised by general taxation.

Concerned with legal because of their ownership by government their 51% or more
shares are owned by government. NHS is an example of such organisation that is owned By UK
government and operation of the organisation are also completed by government.
Private organisations
Private organisations are those their ownership is maintained by private people and
associations and operations are also undertaken and completed by private people and
associations. Purpose with which such organisations operate is to create and increase profit and
maintaining survival of the organisation in its environment and market. Legal structure of private
organisations have different organisations, that are-
Sole Proprietorship- Such businesses that are owned by sole owner of the business and in these
business owner and business are not considered separate from each other.
Partnerships- This is another legal structure of private organisation in this business organisation
is owned and operated by two or more people. Separation of business and partners differentiate
on the basis of type and nature of partnerships.
Limited Companies- These organisations are owned on the basis of shares and those who own
and hold shares of the organisation are its owners. These organisations have separate existence
from their owners (Schiele, 2020). Shareholders and owners of the company are not liable for
liability of the company. Sainsbury’s is an example of this type of organisation.
Voluntary organisations
Voluntary organisations are those that are operated with the purpose to make social
impact. These organisations focus on improving and enhancing existing lifestyle and also for the
purpose of welfare of society.
Concerned with legal structure voluntary organisations are operated by volunteers who
participate voluntarily by agreements. British Red Cross is an example of this type of
organisation. Different types of voluntary organisations are-
For-profit- This means that organisation generates profit through their activities and this
is again invested back in organisation to realise its objectives.