Types and Purposes of Organisations in Business Environment

This presentation provides an overview of the different types and purposes of organisations in the business environment. It discusses the characteristics and objectives of for-profit, non-profit, and NGO organisations. The presentation also explores the size and scope of various types of organisations and their legal structures. Overall, it highlights the importance of understanding the business environment for successful organisational operations.

Business Enviroment
P1 &P2

Table of Contents
 Introduction
 P1 Types and purposes of organisations
 P2 Size and Scope of various types of
organisations
 Conclusion
 References

INTRODUCTION
Business environment is refereed to area where business
operations are conducted by people; so that organisation
goals and objectives are accomplished timely. Internal
and external factors are various constituents which
directly or indirectly impact on system functionality.

P1 Different types and purposes of
organisations
Business environment consists various forms of firms which
execute business activities within defined sector to
generate adequate revenue and timely accomplish goals
and objectives. Public and private are two sectors which
are constituents of business environment.

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Basis of
Comparison
For Profit NPO NGO
Meaning These are firms
which are started by
individuals with
intention to earn
profit; thereby
deliver adequate
items and services
in market. Business
person main target
is to fulfil demands
of people and
generate adequate
revenue from
business. They even
want to enhance
market position and
share.
This factor consists
those firms which
provide products
and services to fulfil
needs and wants of
people and don't
take profit as their
aim. Funds which
owner receive after
selling items in
market is reinvested
by them again in
firm so that business
operations are
conducted
appropriately.
It is defined as non-
governing
associations which
are established in
market to provide
welfare to society.
These are
organisation which
are started by
individuals to deliver
adequate items and
services to people;
thereby attain their
needs and wants.

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Area of Operations These organisation
consists activities
which either are
executed at large
level or at limited
one.
Non-profit firms
carries out limited
operations in their
branches.
Large scale of
activities are
conducted by
NGO's.
Objectives Prime goal of firm is
to grab attention of
large number of
people and generate
adequate revenue
from business.
Main objective of
NPO is to
encourage art,
science and
commerce among
public.
NGO prime aim is to
execute various
forms of activities to
enhance conditions
of society, thereby
develop economy of
nation.

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Public Sector: This is form of sector which comprises
companies whose structure is planned and formulated by
government. Hence, income generated by firm will be
shared by individuals that are employed and are
conducting activities.

Purpose: Organisations which are part of public sector
prime aim is to develop economy and provide job to
people and chances to gain adequate income.
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Private Sector: This is kind of sector which consists firms
that are started by individuals to deliver appropriate items
and services in marketplace and generate adequate profits.
Recently, there are organisations which are enhancing at
fast rate.

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Purpose: Main motive of firms is to conduct market survey
to find needs and wants of people; thereby deliver
adequate items and services in marketplace and generate
sufficient amount of profits.

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Voluntary Sector: This sector consists enterprise which
group of individuals themselves come into agreement to
accomplish goals and objectives which are common for
them. These people make plan and program to enhance
economy and take care that there are no problems and
difficulties present in environment.

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Purpose: Prime objective of these forms of firms is to make
system function efficient and enhance conditions of
economy.

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Legal Structure of the Sectors:
Private Sector:
 Sole Proprietorship
 Partnership

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Public Sector:
 State Government
 Local government

P2 Size and Scope of various types of
organisations
Today in high-tech word, in order to get superior position at
marketplace, a company requires to carry out its business
in a unique way. Carrying business operations in a proper
manner by formulating innovative ideas into it help in
enhancing production as well. Along with this, it aid to
increase growth in expansion of business also.

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Private Sector Companies- These enterprises are also
known as citizen sector which are run by private owners.
The main purpose of these companies is to earn more and
more money. The speciality of such firms is that they
provide high employability which helps in reducing
unemployment in a country.

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Public Sector companies – It includes services and
products of government like police, military, water supply
agencies, banks and more with common purpose is to
serve mankind. They work on development of welfare of
the society and used to provide services to customers for
fulfilment of basic needs.

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Voluntary Sector – It is a third sector company which
includes voluntary and community enterprises as distinct
with private or public ones. These companies are
independent of government as well as work on basis of
not-for-profit organisation. These firms are raised funds
through investors and sponsors.

Objectives differentiation
Micro Small Medium Large
These firms are
worked on basis of
earning finance for
their livelihood.
These organisations
are worked to
acquire customers
by fulfilling their
desires in a
profitable way.
Middle companies
are main focusing
on expanding
business in an
appropriate manner.
They used to take
opportunities of
marketplace through
which they can
easily enter into
international market.
Instead of
expansion, big
organisations
concern on
enhancing economy
by customer
retention. Their main
motive is to hold
sustainability at
marketplace.

Conclusion
From the above business report it can be concluded that
business environment plays an important role in the
organization as the resources which are available in the
economy are utilized in effectual and planned ways in
order to achieve growth and success in their overall
business activities.

References
Agarwal, R., Grassl, W. and Pahl, J., 2012. Meta-SWOT:
introducing a new strategic planning tool. Journal of
Business Strategy. 33(2). pp.12-21.
Aterido, R., Hallward-Driemeier, M. and Pagés, C., 2011.
Big constraints to small firms’ growth? Business
environment and employment growth across firms.
Economic Development and Cultural Change. 59(3).
pp.609-647.

Thank You