Business and the Business Environment - Types of Organizations and Organizational Functions

This report discusses the different types of organizations and their legal structures, the size and scope of various organizations, and the functions of different organizational departments. It also highlights the relationship between different organizational functions and how they link to organizational objectives and structure.

BUSINESS AND
BUSINESS
ENVIRINMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
The term business refers to an organization which is involved in the commercial
activities. It can be profit and non-profit entities. The business can be run on large scale and
large scale operations. Every business requires a formal plan to start its business and a business
plan refers to the formal document which defines the goals and objectives of the company.
Business environment is defines as the collection of the internal and external factors that
hampers the operations of the business and also affects its functioning(St Clair, et.al,2017). It
elements of the business environment constitute such as suppliers, competitors etc. So it is
important for the company to analyse these market forces and plan its strategies accordingly.
This report will cover the purpose, scope of the KAPPA(private sector), NIKE(public
sector) and UK Sports(voluntary sector) and its various functions and objectives. It also
highlights the functions of various departments and functions of the organization.
MAIN BODY
Different types and purposes of organizations; public, private and voluntary sectors and
legal structures.
Organization is defines as identifying and grouping the activities to be performed by the
individuals, also delegating the responsibility and establishing an effective relationship for
building the level of communication and motivating the employees to work hard for achieving
the objectives of the firm. The establishment of developing en effective relationship means
developing coordination among the members of all the departments for effective working of the
organization(Hrabia, et.al, 2017). The various features of the company are it helps in division of
work assigned to each individual according to their skills and abilities, to develop coordination at
all the levels of the company and work towards the achievement of the common objectives of the
company. In this report, KAPPA is taken which is of private sector, NIKE a public sector and
UK Sport a voluntary sector company.
Public sector: Nike is an American Multinational Corporation and is involved in the design
development, manufacturing, global marketing and production of the sports equipment. It is
known for the leading merchants of athletics shoes and a major producer of sports equipments.
The company reflects the quality and limits of the company in its operations. Every company's
corporate structure involves the communication among the employees, teams and at all the levels

of the departments. But Nike's corporate design highlights the requirement among the different
territorial marketplace(Cerchia, and Piccolo, 2019.). The focus is on the demands of the
customers and there preferences depends upon the sports popularity and the geographical
area(van den Berg, et.al,2020). The company has developed its strategies by considering all the
relevant elements prevailing in the market.
Private sector: KAPPA is an Italian sports brand and is the manufacture of the sports apparel
and sports gear in France. The series of clothing and sports wear includes sports shoes, training
gears, polo shirts and jackets etc. The company focuses on two types: short term goals and long
term goals. The is mainly centred into building the reputation of the brand globally, its product
design and on the research and development of the strategies, to expand its network to various
different countries and to manage and improve its supply chain by working on the management
related to the supply chain of its products in various markets. The company is more concerned on
the long term goals and regularly reviews its marketing strategies in order to improve its
performance level in the market and working on improving its brand portfolio. The company is
majorly focusing on the sustainable development of its brand by adapting the market changes
and also the changing preferences of the customers domestically and globally.
Voluntary sector:Voluntary sectors is defined as the organizations whose main purpose is to
develop and for the welfare of the society and is considered as non-profit organizations, In these
type of sectors there is no interference of the government regulations. Investment made in the
organization is invested back for the welfare of the community or in the expansion of the
organization. UK Spots organization which provides funding to the in the events of the sports
ans invest in various Olympic and para Olympic sports. The main purpose of this organization is
for the welfare of the society, rather than focusing on achieving the profits.
The size and scope of a range of different types of organizations.
Size of an organization is described among the three types of organization that is for
micro, small and large scale organization. Micro level business includes where the investment
and employment level is low. Small scale business include the independent bodies which involve
workers working at small level in order to increase the volume of sales for long term. Large scale
business works at high level and huge investment are done in these organizations and works
towards achieving the long term goals of the organization(Appe, and Schnable, 2019). The
scope of micro enterprise is wide covering various activities without the requiring much

technology for its functioning. It helps in the growth of the economy as well developing the job
opportunities in the country. The scope of small industries are that they are localized which
fulfils the demand of the people and market. They are basically owned by the sole traders. Large
enterprise generally includes the multinational companies and works at high level and use of
technology for earning revenues and production in the company. By taking the examples of the
organization, the focus is laid on its size and scope of each organization. The number of micro
level industries are more in order to increase the growth opportunities for the developing
countries and the given organization British heart foundation which is a non-profit organization
in which very low investment is required but it aims at achieving goals which benefits the society
and also increase the awareness among the public. It fulfils two aspects: provide job
opportunities and also for the welfare of the society. Every organization faces problem in the
market due to increase in the competition in the market which affect the company operating at
any level and restrict the development of the organization(Engel, and Mattheis, eds., 2019). The
small business operating individually wants to expand its business and increase their production
capacity and sales volume. The company analyses the changes in the factors in the market and
improve its strategies by proper management and also satisfying the needs and demands of the
customers. The large scale enterprise such as Nike which is a well-known brand which operates
at higher level and huge investment is required resulting in increasing its brand popularity and
understanding customer needs.
Relationship between different organizational functions and how they link to
organizational objectives and structure.
For the effective working of the organization, it is divided into various departments like the
production, Research and development, Marketing, Human resource and accounting and finance
department. All the departments have its own functions and are connected which can affect the
entire operations of the company. Every employee of the company is allotted some task
according to the knowledge and skill of the employee. The company has to examine the external
factors that affects the working of the overall management and work according to it. With the
rapid increase in the competition in the market, the departments of the company have to improve
their functioning that can affect its functioning.

 Production: The production departments is responsible for converting the raw materials
into finished goods and the department focus on improving its efficiency in order to
increase the output to reach the desired target of the firm. Its main aim is to produce the
goods of right quality and quantity with minimum cost and moreover it focuses on
improving the efficiency of the organization.
 Marketing:It plays a very important role in supporting the organization and is basically
concerned with identifying the customers needs(Whitler, et.al, 2018.). The company
focuses on identifying the requirements and how organization can fulfil those needs. It
helps to build relationship and interaction between the business and its customers. It helps
to build the image of the company by actively participating and build customer
interaction by using various methods.
 Human resource:The Human resource department is basically concerned with the
recruitment and selection which aims that right people are recruited at right job. It is also
concerned with providing various training to the employees so that employees shall carry
out the activities with the use of their knowledge(Williams, 2017). It also focused on
building good relations with the employees and maintaining safety working environment
in the organization.
 Accounting and Finance:This department operates all the expenditures of the company. It
is mandatory to follow the provisions related to finance and also manages the profits of
the firm.
CONCLUSION
It can be concluded from the report that for the efficient management of the company, it
is important for the firm to analyse the market forces that affect the working of the organization.
The company has focused on the different types of organization and its legal impact. The report
also highlights the size and scope of various organizations, departments and its functions. It
stated that every department is important for the organization and are related to each other

REFERENCES
Books and journals
Appe, S. and Schnable, A., 2019. Don’t reinvent the wheel: possibilities for and limits to
building capacity of grassroots international NGOs. Third World Quarterly, 40(10),
pp.1832-1849.
Cerchia, R.E. and Piccolo, K., 2019. The ethical consumer and codes of ethics in the fashion
industry. Laws, 8(4), p.23.
Engel, U. and Mattheis, F. eds., 2019. The Finances of Regional Organisations in the Global
South: Follow the Money. Routledge.
Hrabia, et.al, 2017. Combining self-organisation with decision-making and planning. In Multi-
Agent Systems and Agreement Technologies (pp. 385-399). Springer, Cham.
St Clair, et.al,2017. Characterising the latent structure and organisation of self-reported thoughts,
feelings and behaviours in adolescents and young adults. PloS one, 12(4), p.e0175381.
van den Berg, et.al,2020. An exploration of key human resource practitioner competencies in a
digitally transformed organisation. SA Journal of Human Resource Management, 18,
p.13.
Whitler, et.al, 2018. When and how board members with marketing experience facilitate firm
growth. Journal of Marketing, 82(5), pp.86-105.
Williams, L.A., 2017. Social Media Transformation of Human Resource Management.
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