Types and Purpose of Different Organizational Structures

This presentation discusses the types and purposes of different organizational structures, including private sector organizations, sole traders, partnerships, franchises, private limited organizations, and charity organizations. It explores the advantages and disadvantages of each structure and provides insights into their operations and objectives.

Business
Environment

Types and purpose of the different types of
the organisation structures
Private sector organisation
It is the profit-making company which is managed and
owned by the private enterprise and there is no control of
the government on the private companies. The venture
which is private sector are free from the authorities
ownership and control

Sole traders
Advantages
Sole trader organisation means the trader is the owner of the company where
he has right to control over every part of the organisation and take the
relevant decision which is in the favour of him. They have right over all the
profits which is earned by him and need not to distribute to the others.
Disadvantages
In the sole trading organisation, the owner which is trader have the unlimited
liability over him, if there is any loss occurs, all need to bear by him. It is
very difficult for the sole trader to raise the large amount of finance

Partnership
Advantages
There will be more capital available to run and invest in the business
as there are more numbers of the partner who are accessible to
invest their fund. The organisation is easy to run, manage and form
as there is less restriction over the enterprise by the different laws.
Disadvantages
The biggest disadvantage in partnership is the profit is distributed
among all the partners in the organisation. If one partner does not
agree for the deed then many problems will arise.

Franchise
Advantages
In this type of business, the failure of the operational activities is very low
because franchiser provides a better support to overall operation. All the
employees are trained so they have skills to market the products and
services very easily.
Disadvantages
There is very high cost involved in such business model and also focuses on
the royalty payment aspects. There is lack of flexibility and independence
and franchiser have all the rights.

Private limited organisation
This type of business is managed and owned by the government in
order to offer diverse kinds of products and service for the well-
being of the society. The advantage of this organisation is that firm
offers products and services that helps to enhance the living
standard as well as economy. Other than, disadvantage is that the
venture is not able to generate high revenue as their main motive is
not to earn profit as compared to other competitors in market.

Charity Organisation
This is the kind of the business which fits in the category of the
organisations who works having an objective not for any type of
profit making, but for the delivering assistance to the other
organisations in order for their success and development. These
organisations may be running publicly or privately. Sometimes this
venture charity is major focusing around the religious, educational or
other public interests.

'Lidl'
Products:
The company want to deliver their best products and services to their
potential costumes, around 70% of the company's products are
sourced from and within the United Kingdom. The company is also
working very closely with a variety of independent organisation,
including Marine stewardship council, red tractor and rainforest
alliance and others. Mainly Lidl is offering food offers and Non-food
offers, and company is having wider range on the Wines, Recipes
and others.

CONTD..
Vision: - The main vision of Lidl is to be the most trusted
supermarket chain and determine factors values for their
future success such as Recognition, responsibility, trust and
respect.
Mission: - Their mission state that the organisation want to
gain the competitive advantage over its competitors by
serving the best quality products at the low prices

CONTD...
Objective: - In order to deliver the best product quality and
shopping experience to their customers maintaining the fair
price.
Structure: - Lidl is having flat structure in which all the
employees of the company are allowed to provide their
potential suggestions and make decision at their level.

References
Aguilar, F.J., 2017. Scanning the business environment. Macmillan.
Davis, K. and Blomstrom, R. L., 2016. Business and its environment.
McGraw-Hill.
Kennerley, M. and Neely, A., 2013. Measuring performance in a changing
business environment. International Journal of Operations & Production
Management. 23(2). pp.213-229.
Buchholz, R. A., 2016. Business environment and public policy: implications
for management and strategy formulation. Prentice Hall.