Different types of organization and its legal structure

Business and Business Environment
INTRODUCTION.....................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Different types of organization and its legal structure........................................................................3
P2 Size and scope of various kinds of organization.................................................................................5
TASK 2.......................................................................................................................................................8
P3 Relationship between different organizational function.....................................................................8
TASK 3.......................................................................................................................................................9
P4 PESTLE Analysis...............................................................................................................................9
TASK 4.....................................................................................................................................................12
P5 SWOT Analysis................................................................................................................................12
P6 Strength and weakness interrelation with external factors................................................................13
CONCLUSION........................................................................................................................................14
REFERNCES...........................................................................................................................................15

INTRODUCTION
Business Environment aggregates of all forces, factors and institutions which are external
to and beyond control of an individual business firm but which exercise a significant influence
on the functioning and growth of enterprises. Additionally, it has direct impact over organization
decision making which impact positively or negatively over firm’s productivity and profitability
(Shenkar, Luo and Chi, 2014). Moreover, it enable establishment to identify or examine its
strength and weakness in order to adopt challenges or threat that helps them to attain sustainable
proficiency and growth. This report is based on Arcadia Group that is one of the leading
retaining company established in the year of 2002. It deals into clothing, accessories, and shoes
with more than 2500 outlets across UK. This report covers, different kinds of organization along
with their legal structure, size, scope, purpose, interrelationship between various business
function. Implication of PESTLE and SWOT analysis for analyzing internal and external macro
environment.
TASK 1
P1 Different types of organization and its legal structure
An enterprise is a process of dividing work into convenient tasks or duties, of grouping
such duties in the firm of posts of delegating authority to each position and of appointing
qualified manpower to be responsible that the work is carried out as planned in order to
accomplish common goal or objective. Along with this, every organization contains its own
purpose and legal structure which enable them to monitor or govern its business operation and
function for an attainment of high level of profitability in an appropriate manner. However,
setting up legal structure is one of the first decision during establishing a company as it defines
the way business is organized as well as allow them to determine legal obligation and can gain
better positioning within competitive marketplace. There are different kinds of organization with
its purpose and legal structure which are as follows:
Private
They are legally distinct entities with their own assets, profits and liabilities, along with
this personal finances of any shareholders are protected by limited liability. Moreover, its shares
are not offer to general public. For acquiring deeper understanding of this concept, Arcadia

Group is considered as it one of the branded retailing company in UK which operate across the
globe with a high and best quality of products and services.
Purpose
The core goal of Arcadia Group is to become the first and best choice of customer by
rendering high quality of products and services in an affordable price.
Legal Structure
However, Arcadia some of the legal structure of Arcadia Group are as follows:
Sole Proprietorship: It is regarded as simplest structure in which it consist an individual
personality who is responsible for entire business operation and function as well as obliged to
take all gain and loss by its own.
Partnership: Under this, business entity or ownership is divided among two parties who
come together with mentality to share all risk, responsibilities, profit and loss equally in order to
achieve organization common goal in an effective and efficient way.
Corporation: It is considered as more complex and expensive than other business
structures. However, it is an independent legal entity, separate from its owners and such, it
requires complying with more regulations and tax requirements (Prajogo, 2016).
Public
It is also similar to private limited companies, in the sense that they are legally distinct
entities with their own assets, profits and liabilities. But one difference is that they can freely
trade their shares to general audience as well as it can be listed on a stock exchange. In order to
acquire detailed information about this sector of company, BBC is more effective and suitable
firm which is a world’s oldest and leading broadcasting organization which is commenced in the
year of 1922 and it serve worldwide with a fair and transparency in trading their products or
services. Thus, BBC is governed by Executive board and BBC trust which help them to obtain
maximization of profit. The several types of legal structure and it’s in public sector are as
follows:
Purpose

Their main aim is to enrich people’s lives with programs and services that inform, educate and
entertaining by being most creative organization in the world.
Legal Structure:
Local government: It is an authority which determine and execute measures within
restricted area inside and smaller than a whole state. Along with this, this government has two
fold aspect i.e. Mixture of both deconcentration and decentralization.
State government: Under this, it seek most of its help or support from central government
and provide proper advice and guidance to local authority in order to fulfill the requirements of
general public as well as boost up firm’s productivity
Central government: It is totally responsible for national environmental policy directed to
contributed towards sustainable economic development and to health, safety of people by
maintaining or improving quality of working environment (Kljucnikov and et. Al 2014).
Voluntary
It is fully independent from local and national government and distinct from private
sector. The key function of its establishment is to serve society and improve their life standard by
fulfilling their demand and interest in an innovative manner. To acquire more knowledge
regarding voluntary, sector, World Vision is considered as one of the not for profit organization
which is highly dedicated to improve life style of a company as well as find ways to eradicate
poverty or injustice among community or societies. It follows trust legal structure. Some of other
structure are as follows:
Trust: It is governed by trust deed which set outs the objects of trust, names the trustee
and provides for an administration of trust. One of its advantages is that its formation provides
continuity in life of company even after the death of owner or trustee.
P2 Size and scope of various kinds of organization
Private – Arcadia Group