Types and Purposes of Organisations in Business Environment

Business Environment

Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1 ...............................................................................................................................................3
P1 Discuss several types & purposes of organisations; public, private,voluntary sectors & legal
structures. ........................................................................................................................................3
P2 Briefly examine size & scope of range of different type of organisations.................................4
TASK 2.................................................................................................................................................6
TASK 3.................................................................................................................................................7
P4 Comparison between micro, small, medium size and large enterprises.....................................7
TASK 4.................................................................................................................................................8
P4 Analyse internal and external analysis opf specific organisation to identify strength &
weakness..........................................................................................................................................8
P6 Explain how strength & weakness inter-relate with external macro factors...........................10
CONCLUSION..................................................................................................................................12
REFERENCES...................................................................................................................................13
Books & Journal:...........................................................................................................................13

INTRODUCTION
Business environment is defined as combination of internal as well as external factors that
impact the organisation's management, personnel & the whole system (Čepel, 2018). In this
competitive market, it has become important to focus on business surroundings so that decisions
making is done properly. This report gives a brief information about how business environment
affects the firm overall structure. Sainsbury, a multinational and largest supermarket firm
headquartered in UK. Organisation deals in variety of products such as grocery, apparel's,
cosmetics etc. This report comprises of different types of organisations, size & scope of various
type of organisations, various organisational functions linked to structure & objectives, positive and
negative impact of macro environment, internal and external analysis and relation between strength/
weakness with external factors.
TASK 1
P1 Discuss several types & purposes of organisations; public, private,voluntary sectors & legal
structures.
Organisational structure is defined as process or system which reflects how resources or
activities are carried out to accomplish goals (Cherunilam, 2016). With help of structure, it is
possible to examine the flow of information between the company. Every enterprise have different
form of structure according to which decision-making process is done. So, it is important to be
aware about these structures so that roles & responsibilities are assigned accordingly. Therefore,
various types of organisations structure are described below-
Private organisations- These types of entities run their business with aim of earning profit
& are privately owned by individual. Their main purpose is to expand the business in market to
increase their capital ratio. They focus on self development & growth. So, legal structure of such
firms are mentioned below-
Sole traders-
They are one who run business & other activities by their own as solely person. These type
of firms use and invest their own capital to carry out the functions or operations widely. The sole
traders make decisions independently without consulting to everyone. They are individually
responsible for their own risks or profit earned. In this, it comprises of restaurants, cafe's, clubs etc.
Private limited-
In this, these are one who carry out business with limited number of shareholders. These
type of firm have shares with limited extent which cannot be sold in market for business use. They

do not allow public to participate in decision making process. They only allow trade of shares in
between the friends or families who are involved in business activities. For example- JCB,
Walmart etc. comes under this category of enterprise.
Public limited companies-
These are one which operate with aim of providing services & products in market. In such
type of businesses, shares can be used for sale as well as purchase. Also, decision making is being
carried by participating every individual in firm. Moreover, freedom of expression is present & is
enjoyed by every person. For example- MC Donald is to be considered as public limited company.
Partnership-
It is also considered a private organisations because in this profit, risks etc. are shared by
partners equally. It is also used for business expansion at global level. For example- Louis Vuitton
& BMW have been into partnership with each other.
Public Organisation- These kind of enterprise are one which are being controlled,
managed & run by government permissions. Main motive of these are to provide public services to
citizen of society. Mostly these includes petrol, shelter, water etc. For example- HSBC Holdings
comes under this category as it is largest bank of UK & provide variety of services such as credit
card, debit card, loan etc.(Gaganis, 2019).
Central government department-
These type of entities run their activities by properly following rules, regulations, & certain
guidelines which are proposes by government.
Voluntary Organisation- They are those who carry out their functions, operations with aim
of social welfare & to help citizen of society. They generate capital for business from money
lenders, business man, banks etc. Legal structure is discussed below-
Trust- It is association which is made of shareholders, contractual bodies etc. These
involves groups of people who manages this association. (Taylor, 2019)
Therefore, the stated paragraph depicts that there are several kinds of organisations who run
their business according to their legal structure. It is seen that legal structure of every organisation is
different form each other. So, purpose of each entity is also different which means that with correct
analysis entrepreneur can selects their choice of firm. Moreover, by properly following structures it
is easier to adopt appropriate for of entity.
P2 Briefly examine size & scope of range of different type of organisations
It is crucial for every entity to focus on their size as well as scope so that they are aware
about their needed resources or capital. Every entity have heterogeneous mission, goals which they
accomplish within a period of time.