Types of Business Organizations and their Legal Structures

This report provides an overview of different types of business organizations, including private, public, and voluntary organizations, and their legal structures. It explores the size and scope of Marks and Spencer, Marriott, and Oxfam. The report also discusses the relationship between various functions within M&S and how they contribute to achieving organizational objectives. Additionally, it examines the positive and negative impacts of the macro environment on business operations and conducts an internal and external analysis of M&S to identify strengths and weaknesses.

BUSINESS & BUSINESS
ENVIORMENT

Contents
INTRODUCTION.................................................................................................................................4
P.1 The purpose of private (M&S), public and voluntary organisation and their legal structure.......4
P2 Size and scope of Marks and Spencer, Marriott and Oxfam.........................................................5
P.3 relationship between the various functions within M&S for achieving the organisational
mission and objectives.......................................................................................................................6
P6 Identify the positive and negative impacts the macro environment has upon business operations,
supported by specific examples.........................................................................................................7
P5 Conduct internal and external analysis Marks and Spencer in order to identify strengths and
weaknesses........................................................................................................................................8
P6 Explain how strengths and weaknesses interrelate with external macro factors...............................9
CONCLUSION...................................................................................................................................11
REFRENCES......................................................................................................................................11
INTRODUCTION
Business environment includes all the internal factors like employees, management, policies
and external factors like customers, suppliers and government which affect business policies and
operations of company. And there are different types of business organizations operating in economy
some for profit earning and some for employment purpose. The present report will focus on various
kinds of business organization like private, public and voluntary organization their size, scope and
legal structures. The report will cover Marks and Spencer which is one of the leading British
multinational retailers operating worldwide with about stores and online service. The report will
further cover positive and negative impact which macro environment have on business operations of
Marks and Spencer and the relationship which all the functional areas have amongst them. Also
conduct the internal and external analysis like PESTLE and SWOT to identify how strengths and
weakness help Marks and Spencer to achieve business objectives. The macro factors regard to all the
external factors affecting business like political, social, economical, legal, environmental and
technological factors.
P.1 The purpose of private (M&S), public and voluntary organisation and their
legal structure.
The main purpose of the any organisation is to make the social and economic development in
nations. To bring the better development of the nation different organisation has the various roles. The
m
Private organisations: This type of the organisation have owned by the small business groups as they
have limited liability. The private sector is the fragment of a national economy claimed, controlled
and oversaw by private people or undertakings. The private sector has an objective of profiting and

utilizes a greater number of specialists than people in general area. A private organisation have
association is made by framing another venture or privatizing an open area association. A huge
private-division partnership might be secretly or traded on an open market. Organizations in the
private division drive down costs for merchandise and enterprises while seeking shoppers' cash; in
principle, customer would prefer not to pay more to something when they can purchase a similar thing
somewhere else at a lower cost. As the M&S is the private sector organisation in United Kingdom
which have the main purpose is to bring out the economic development.
Legal structer of the private organisasation: as the private orgnisation need the certificate of
incorporation and documents required is Article of association and Memorandum of association.
Public organisation: These types of organisations are the piece of the economy worried about giving
different legislative administrations. The organization of general society division differs by nation,
however in many nations citizen are in public segment incorporates such administrations as the
military, police, framework (open streets, spans, burrows, water supply, media communications, and
so forth.), open travel, state funded instruction, alongside medicinal services and those working for
the administration itself, for example, chose authorities. People in general area may give benefits that
a non-payer can't be barred from, for example, road lighting, administrations which advantage all of
society instead of simply the person who utilizes the administration. Therefore the public organisation
main purpose is to social development of nation. As the legal structure of these organisation is
depends on government supreme bodies.
Voluntary organisation: these types of organisation have is a social affair of individuals who go into
an assertion, as a rule as volunteers, to outline a body or relationship to accomplish a reason.
Voluntary organisation is also called non-profits organisations. Essential delineations fuse trade
affiliations, trade unions, learned social requests, capable affiliations, and regular get-togethers. The
main purpose of this type of organisation is to bring out the social development and help society in
whenever they need in difficult situations. The legal structure of this type organisation is monitored
by the government.
P.2 size and scope of M&S and one organisation from the public and voluntary sector.
P2 Size and scope of Marks and Spencer, Marriott and Oxfam.
All the organizations have their own purpose, size and scope and they all contribute in the
economical development of the country in their own ways. And all these purpose, size and scope of
different organizations link to the business objectives and product and services offered by the
organization.
Bases Marks and Spencer Marriott Oxfam
Scope M&S is having very
wide scope as it is
operating on a wider
area having its lifestyle
stores, online stores
and selling many
products and services
on a worldwide level.
Marriott hotels are
operating on global
level and having their
hotels and resorts all
over the world. Thus,
the scope is very wide
Oxfam being a
voluntary organization
and a charitable trust.
Is operating worldwide
as it help the needy
people all over the
world.
Size M&S having around
979 stores in UK which
include 615 selling
food products. With
having 84939
employees and 454
international level.
Marriott owes 5700
properties in over 110
countries and territories
around the world. An
operating with 30
brands internationally
with having around
195000 rooms.
As this is also
operating n a
worldwide level which
serves about all the
nations and fight for
poverty of the
economies of the
world.
Structures There are number or
employees and
Marriott hotels are
having a total staff of
The majority of
employees include the

managers working in
the whole organization.
With the senior
management working
on the top formulating
the policies and rules
for the working of
company.
about 50000 in whole
world serving all the
customers on daily
bases. Having different
departments and
managers at all the
levels of different
departments.
voluntaries working for
nonpayment or very
less payment. Whole
organization divided in
four parts namely
north, south, east and
west.
Purpose The purpose is to earn
maximum profits and
serve the world.
Major aim is to
employee unskilled and
skilled labors and to
give the shareholders
with maximum
benefits.
To eradicate poverty
and to give aid and
help to the needy
people in the world.
Figure 1 Structure of Marks and Spencer.
[Source: Structure of Marks and Spencer. 2017]
P.3 relationship between the various functions within M&S for achieving the
organisational mission and objectives.
Finance: the most important division in the organisation is the finance in M&S. they will maintain the
booking of the organisation and proper accounts as well the profits and loss will be generalised by
these division. As the financial performer of the organisation they will help to make the strategies for
the finance discoing in organisations.
Human Resource: M&S human resource in organization and operations used to be the two part
territories of HR. The vital arranging part became possibly the most important factor because of
organizations perceiving the need to consider HR needs in objectives and techniques. HR manger will
regularly sit on organization official groups as a result of the HR arranging capacity. Numbers of
workers and the advancement of remuneration and wages frameworks are among components in the
arranging role. Various variables influencing Human Resource arranging Organizational Structure,
Growth, Business Location, Demographic changes, natural vulnerabilities, extension and so forth.
Furthermore, this range includes the domain of ability administration. As the human resource have the
most import role to achieve the organisational objectives.
Marketing: as the marketing is the most important role in Organisation by perfuming different
activities to bring out the business objectives for M&S. as the M&S marketing division is frequently
seen as of most important inside the utilitarian level of an organisation.
Information from an M&S marketing division would be used to deal with the exercises of other
office's inside the firm. For example, a publicizing division could decide, through advancing
exploration that buyers needed another sort of thing, or another usage for a present thing. Considering
this, the advancing division would teach the R&D team to influence a model of profit in terms of
customer new needs.

Operation and production: The most important division is the operation and production division as
they will focus on the production process according to the demands they will produce the products. As
the operation division will focus on the better tools and techniques for in M&S.
The above division coordination will bring the success in organisasation. As these deprtmetn have the
important role in the organisation? The human resource will help M&S to bring better manpower in
organisation at the right place at the right time. Human resource have more responsibility in
organisation to make better development of employees by arranging proper training which will
enhance their productivity for better production. But the most important division is the finance as
they perform the various roles for the organisation such as to allocate the funds to all the division
according the requirement for their purpose. As the marketing division have the various functions in
organisation to bring more vibrant strategies of marketing to attract the customer by various
promotion strategies used by this division.
P4 Identify the positive and negative impacts the macro environment has upon
business operations, supported by specific examples.
Macro environment includes those outside components which are wild and
furthermore influences basic leadership, execution and techniques of the association. These
outer variables incorporate financial, legitimate, social and social elements, mechanical
changes and common powers. Change in purchasers taste and inclinations, change in loan
fees, change in government arrangements are the case of large scale ecological variables.
"Marks and Spencer" additionally influenced with these outside condition powers. In the
outer condition new hazard factors are emerges frequently and they hard to distinguish for the
chiefs of the business. Full scale condition factors include:
Political and legitimate variables: Political and lawful components incorporate change
in the administration exercises and changes in the lawful strategies and directions. Political
and legitimate components influence advertising choices of the organization. For instance,
government give endowment or low rate of tax collection of retailer business then it affects
decidedly on the promoting choices of the association. Political powers incorporate
probability of race and the conceivable results whether condition will tranquil or there will be
odds of political change.
Monetary and economic Factors: Economic variables are wide in go it is the blend of
national and worldwide condition. Business associations are working under complex
financial condition which influences both the choices related with association's generation
and shopper basic leadership process.

Environmental Factors: Every association utilize some common assets for its
business, for example, backwoods, rural items, ocean items and so forth there are some non-
reestablishment assets utilized by the business association. Association should take choice
subsequent to considering the accessibility of these assets.
Social and cultural powers: Social and social variables incorporate target clients of the
association, changing in their taste and inclinations, client’s demeanors and qualities and so
on these components change the business association's request and supply. In the event that
business produces merchandise according to client taste and inclinations than it influences
association emphatically.
Technological Factors: These variables incorporate new advancements, abilities and
information required for generation of products or administrations. These innovation and
materials required for the creation are likewise affect the business choices of the association
Marks and Spencer face these full scale ecological variables. Huge and significant
changes in the full-scale condition factors are generally outside the control of business so it is
essential that administration of the organization ought to have the capacity to investigate the
impact of these components so they could use sound judgment. These impacts are
examination by executing PESTEL investigation technique.
P5 Conduct internal and external analysis Marks and Spencer in order to
identify strengths and weaknesses.
Outer condition factors and inside condition factors influences the business association.
Before settling on any business choice inside and outer examination ought to be led since
condition in which business works is an essential piece of arranging. With the assistance of
inside and outer examination association can distinguish their quality and shortcomings and
plan their exercises as needs be.
Inside investigation helps in distinguishing and assesses association's particular
attributes like its center skills, its capacities and accessibility of assets. Interior investigation
demonstrates that whether authoritative exercises are performed with in the criteria of
association's vision, mission, vital destinations and methodologies. Under inner investigation

organization guarantees that it has appropriate measure of assets for conveying the working
exercises and procedures. Assets incorporate money related assets, physical assets like plant
and apparatus, HR, impalpable resources assets and social assets. With the investigation of
asset accessibility authoritative ability can without much of a stretch distinguished. Outer
investigation is a procedure of breaking down nature in which association work. Outside
investigation use to recognize current market patterns and occasions that influence the key
choices of the association. Outer investigation should be possible through SWOT strategy.
This examination incorporates:
Investigation of financial elements whether there is any adjustment in loan fee, swelling rate
and expansion rate.
Examination of innovative variables demonstrates changes required in the current
innovation by refreshing them or supplanting them with new one. Investigation of lawful
condition helps in recognizing change in lawful directions related with any uncommon
demonstration, changes in obligations and tax assessment arrangements. Social and social
examination helps in distinguishing current patterns, ways of life, styles and different parts of
culture. On the premise of inner and outside examination Organization may discover its
quality and shortcoming which may incorporate after:
Strength: Strengths incorporates exceptional highlights or attributes of the business
association. Greatest and most vital quality of an association is lucidity in its vision which is
winning benefit and fulfills clients independent of the economic situations. Organization can
quantify its quality by applying key execution markers.
Weakness: shortcomings are those components on which organization needs to accomplish
more work with the goal that it can enhance its ability and capacity. For instance, Marks and
Spencer works its business in various nations so its shortcoming is that it is hard to take after
control norms of over all areas.
Strength and weaknesses of the business association are connected with full scale and smaller
scale condition factors. Administration contrasts quality of the organization and winning
large scale condition factors like monetary, political, innovation, social and social and
afterward plan vital and operational arrangements (Jurigová, Z. 2016). A sudden change in
ecological components influences the choices taken by administration. Interrelationship
between full scale condition variables and association's quality and shortcoming are as per the
following:

P6 Explain how strengths and weaknesses interrelate with external macro
factors.
Monetary Factors: factors incorporate change in loan cost, expansion rate conversion
standard in the market. In the event that business association is monetarily suitable it has
adequate monetary assets than changing in these rates won't influence the valuing and
advertising procedure of the association. Organization should constantly have prepared to
confront the difficulties emerges because of progress in financial variables.
Political and lawful factors: Political and legitimate variables incorporate lawful guidelines
and directions and arrangements. Changes in these lawful arrangements influence the
organization to confront these lawful difficulties organization ought to have aptitude and
particular staff.
Social and social: To confront the test of changing social and social elements. A business
association ought to have great staff, practical money related assets and normal assets.
Organization ought to have quality of satisfying customer taste and inclinations according to
their requests which depend on their convictions and esteem
Technological Factors:If organization have quality that it can redesign its current innovation
with new innovation than organization can receive changes in which comes in mechanical
elements. For this organization ought to have great money related assets.
Environmental Factor: Every business association utilize common assets for giving item and
administrations. For instance if organization produces wooden furniture then it needs to take
after ecological laws and don't abuse the normal assets. So administration of the organization
ought to get ready techniques for this and take after every one of the behaviors.

Strength and weakness and large scale condition factors are connected with each other and
influence each other. On the off chance that organization neglects to recognize its quality and
shortcomings than it can't break down full scale condition factors then it neglects to define
key designs and strategic plans. Shortcomings will adversely influence the organization if the
organization can't satisfy the customers request by providing satisfactory measure of item
than it influences productivity of the organization. In this way, organization ought to
frequently attempt endeavors in enhancing its shortcomings
Strength: S remains for quality in this investigation. Quality means abilities and assets of the
organization careful which organization can make its monetary esteem and upper hand.
Weakness: W remains for Weakness of the organization. Shortcoming implies an absence of
assets or capacities which counteract organization in making financial esteems or increasing
upper hand.
Opportunities: O remains for circumstances. Openings implies accepting opportunities to
enhance shortcoming and execution of the organization which helps in making financial
estimation of the organization.
Threats: T remains for dangers. Danger implies those powers point of which is to decrease
organization's execution and diminish its financial esteem moreover. These powers
incorporate individual, gathering or government.
Along these lines, with the utilization of these examination device organization can find out
the impact of large scale condition on the associations basic leadership
CONCLUSION
It can be concluded from the project report that SWOT and PESTLE analysis helps the
venture to analyze the internal and external factors. This helps to analyze that what are the

different factors which can have direct and in direct impact over the performance and
productivity of the venture.
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