Analysis of Different Types and Purposes of an Organization

Business environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ..........................................................................................................................................1
P1 analysis of different types and purposes of an organization..................................................1
P2 Identify the size and scope of different type of an organization............................................5
M1 Evaluate how structure, size and scope of an organization link to the business objectives
and products or services..............................................................................................................7
TASK 2............................................................................................................................................7
P3 Explain the relationship between organizational functions and how they link with business
objectives and structure. .............................................................................................................7
M2 Analyse the advantages and disadvantages of interrelationship between organizational
function.....................................................................................................................................10
D1 Critically analyse the complexities of business structure and interrelationship of different
organizational functions............................................................................................................10
SECTION 2 (LO3 & LO4)............................................................................................................10
P4 Identify the positive and negative impacts of macro environment on business operations.10
M3 Apply PESTLE analysis to support a detailed evaluation of macro environment.............12
P5 Analyse the internal and external environment of an organization by using SWOT
analysis......................................................................................................................................13
P6. Interrelation of Strengths and Weaknesses with External Macro Factors..........................15
M4: analysis of SWOT and justify how it have an impact on decision making.......................16
CONCLUSION..............................................................................................................................18
.................................................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Business environment refers to the collation of both internal and external factors of organisation.
These factors affect the function and decision making process of company and determine how
company can operates directly or indirectly. Business environment of organization explain, how
organization is working and how they make strategies according to the external factors which
influence an organization. In this report Ford motor company has been chosen, Ford is private
company, its American multinational auto maker which was found by Henry Ford. Ford is
multinational company and manufacture lager scale of cars. This report includes three
organization, Ford as an private company,(Eling, and Schaper, 2017) Shelter voluntary
company and National health services (NHS) as public organisation. In this report different types
and purpose of organisation; public, private, and voluntary sectors and legal structures is
explained, size and scope of different organisations, relationship between different organisation
and their functions. Furthermore, positive and negative impact of macro-environment, SWOT
analysis of two organisations; Ford and Shelter and internal and external analysis of specific
organisation. In this report interrelation between strength and weakness is also explained. How
structure, size and scope of different links to business objective and product and services offered
by the firm. Analysis of advantages and disadvantages of inter-connection of organisation is also
included in this report.
TASK 1
P1 analysis of different types and purposes of an organization.
An organisation refer to the set of people who work towards the same goal and
objectives. Organization can be profitable and non profitable. Profitable organisations work for
gain monetary benefits from the external world and non profitable organisations work for social
welfare and improvement of societies. Various types of organizations and there purpose is
explained below.
Public sector organization: These organisation are owned by the government of country. They
provide good and services for the benefits of local public and institutions. Public sector
organisations are run by the government and operates from the money earn by the taxes. These
organisation is not run for profit earning, they run for the welfare of public and their living

standard. Example of public organisation is National health service (NHS) which operates for the
benefits of population. They provide heath facilitates to all the citizen of UK.
 Purpose: The main purpose of national health service is to provide health care facilitates
to the UK's population. They provide services(Fabuš, 2017) on the basis of their needs
of Medicare rather then their ability to pay.
Legal structure:
1. Public corporations: This corporations refers to the companies created by the state
government for providing better services to the public. To carry out public mission and
services public corporation participates in various activities and provide services that are
also provided by the public corporations. This sector work for the better future of the
citizens by providing them services.
2. Manciple enterprises: This enterprises are the businesses that are owned by the
government. That provide services to the public and generate revenues. The main motive
of this entities is to provide more protection they force cities to provide better space to the
boundary. It helps the public to have better living standard and increase their residential
areas more perfectly.
 Central government: National health service works under fully governments controls and
all the activities are formed, mange and performed by the central government. Central
government collects funds from local (Gaganis, Pasiouras, and Voulgari, 2019) public in
the form of taxes.
 State government: These organisation are controlled and formed by the state
governments and the state public can use these companies goods and services.
 Local government: These kind of companies are regulates by the local authorities of city
and manges by the collection of council taxes. Local body and municipals are control
these organisations.
Private sector organization: These organisations are the part of economy that is run and
operates by the companies and individual that is not controlled by the government. These
organisation are run for purpose of profit sharing. It includes all profit firms that is not included
in government control. Ford Motor car, is private organization that design and manufacture cars
and operate on global level and this organisation is run for the purpose of profit maximization.

 Purpose: The main motive of these organisations is to earn maximum profit share and
increase the turn employee turn over in their firm. They run as money maker in the
market as compared to government organisations.
Legal structure: Sole proprietorship: This owned and operate by the individual that have small amount of
investment in their business. These individuals take all the risk by their own and dose not
depends on the others. The main purpose of sole proprietors is to make profit and have
stable growth in market. Partnership: This organisations are partnership firms where tow or more individuals
have contract to work together for the purpose of profit sharing and growth of their
organisation. All the partners of organisation are equally responsible of the profit and loss
of the company. Decision making process of the firm are taken under the consideration of
all the partners. Limited company: These organization are work as stock venture in an business
organisation. They have their individual identity from the organization. All the
organisation of UK is bounded to follow and rules and regulations from of company
act,2006.
Voluntary organization: It refers to the group of individuals who enters into an specific
agreement in order to achieve particular goal and objectives. Shelter is an voluntary organisation
that is largest tent manufacture in the world.
 Purpose: The main propose of voluntary organisations is to work for making social
wealth an identity instead of making profits. These organisation helps society and work
and provide them benefits.
Legal structure: Trust: The trust is important for voluntary (Hamilton, and Webster, 2017) organization,
gaining public trust for charity operations and governed by the trust deeds to mange the
financial orations. Unincorporated Association: This is the group of volunteers and association that
constituted by the article and memorandums. Charitable incorporated organization:This is the new type of charity organization, the
aim of this organizations is to afford the charity limited liabilities without having an

registration as limited company. This organizations are run for non-profitable reasons. It
is an voluntary organizations that works work the welfare of the local citizens.
 Community interest Company: This are the organizations which are non charitable
limited company. They main motive of this organization are to provide benefits to the
communities, fulfill the social purpose rather than make profit and revenues for the
stakeholders. This entities are for easy(Jevšenak, 2019) set up that could be beneficial for
the individual who wants to set up this organization.
Organisation can also be divided in following types on the basis of size:
 Micro: This includes small organisations and firms with small amount of investments and
have limited resources. This organizations usually operettas by less than 10 employees,
the business with less than $2 million revenues annually. This business are run within an
city by the group of individuals. SME: this includes small and medium organisation which are bigger than the micro
firms. It requires adequate amount of resources.
 Global: It operates large scale organisations which requires high level of financial and
other resources because they works in more than one communities.
Differentiation between Micro, small, medium, and large.
Micro Small Medium Large
This organization
works with the less
investment in their
firm, the investment
rate of the micro
business is up-to $2
million, they work
with less than 10
employees. This
organization work in
small scale and
operates in the local
areas of the country.
The small business
that run and operates
by the individuals for
the purpose of profit
maximization in the
industry. The annual
turnover of these
organizations(Khajeh
eian, Friedrichsen,
and Mödinger, 2018)
are under $10 million.
The company work
with less 50
This organizations are
invested medium
amount of money in
their businesses. The
aim of these
organizations are to
maximize profit and
increase the sale of
product and services.
The medium-size
organizations works
with less than 250
employees with
These organization
operates in national
and internal level on
large scale. The main
motive of these
organizations are to
increase the growth of
the company and build
brand image in the
industry. They work
with more than 5oo
employee, these
organizations operates