Types, Size and Scope of Organisations and their Functions

Business
and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A (Covering LO1 & LO2)....................................................................................................3
1 Different types size and scope of organisations.......................................................................3
2. Relationship of functions in a organisation and heir link to organisational structure............7
PART B (Covering LO3 & LO4)....................................................................................................7
3.Positive and negative impact of Macro environment on a business operations.......................7
4 Internal strength and weakness of business and its interrelationship with various macro
factors..........................................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERNCE...................................................................................................................................11

INTRODUCTION
Business is a process which helps in exchange of transactions in form of exchange taking
place of goods & services for increasing its value. Based on motive and objective of a
organisation. organisations are divided into three categories which can be public, private or
voluntary (Pounder, 2015). In this report there are two companies which have been considered
their mission, vision, scope has been analysed so that their overall impact on organisation can be
understood. Various factors inside and outside a organisation are determined. Further there is a
interrelationship present between various organisational function which are also been discussed
in this report.
PART A (Covering LO1 & LO2)
1. Different types size and scope of organisations
Organisation are classified into different categories based on their motives. Different
types of organisations are described below:
Private Organisation : These are those companies which are owned by private enterprises
which can be a partnership, person or a association which have a major motive of earning profit.
Purpose: Major purpose of a private organisation is to earn profit and create value for increasing
their overall market share and expansion of exiting base of customers (Trad, and Kalpić, 2016).
The financial resources available with them are managed for achievement of their overall
objectives. JCB is a private organisation which is having a major motive of earning profits.
Legal Structure of Private Organisation :
Sole Proprietorship : This is a business which is controlled & owned by one individual, that
person is liable for all liabilities, losses or profits occurring in due course of its business.
Partnerships : These business are managed, owned and controlled by two or more individuals
who are commonly regarded as partners they have a mutual decision on how their overall profits
or losses will be divided or shared amongst them.
Limited Companies :These are type of separate legal entities who are managed by a company.
Capital is procured with help of shares which are issued to public.

Public organisation : Public Companies are those which are run and owned by government and
their major objective is not to maximize profits but to do social welfare. For such organisations
funds are provided by government. They have a objective to improve standard of living of people
and enhance equality practises in society (Holden, 2016). BBC is a also public organisation
which is provide funds by Government and operated by government.
Purpose : Main objective is social welfare of society ad upliftment of people living in society.
Legal Structure of Public Organisation :
Central : This is a apex body which is regulated and controlled by economy by giving authority
to various department who work for society's welfare.
State : These are having responsibility for a particular territory and they are given authority
based on which they regulate & monitor different departments which are falling under their
supervision.
Local : These are communities which are managed by a particular locality. They have
responsibility of development which can simplify the life of people living in society.
Voluntary Organisation : These organisations are those which are incorporate for solving a
particular issue (Domazet and Marjanović, 2016). These organisations have those people who
are working with their choice. They provide services to group, individual or a country. Cancer
Research is also a voluntary organisation.
Purpose : Min purpose is providing assistance so that issues can be solved. These are not for
profit organisations who are having motive of welfare of people living in society.
Legal structure of Voluntary organisation :
Trust : These are those organisation who are managing land holdings, property and utilising
funds for achievement of particular objectives.
Unincorporated Association : These organisations have people who are voluntarily engaged for a
short period of time to meet particular objectives.