Types and Purposes of Different Business Organization

BUSINESS ENVIRONMENT

INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Types and purposes of different business organization.......................................................................3
P2 Size and scope of different types of organization...............................................................................5
TASK 2.......................................................................................................................................................7
P3 Relationship between organizational function and objectives............................................................7
TASK 3.......................................................................................................................................................9
P4 Impact of macro effect on organization’s business operations...........................................................9
TASK 4.....................................................................................................................................................12
P5 Internal and external analysis of BT to identify strength and weakness...........................................12
P6 Apply SWOT analysis in BT groups and their interrelationships with external macro factors.........13
CONCLUSION.........................................................................................................................................14
REFERENCES..............................................................................................................................................15

INTRODUCTION
A business contain both internal and external factor of an organization and how these
factors impact functioning of organization in business market place. Elements that are included
in business environment are consumers, competitors, geographical market place, employees,
organizational culture, decision making and role of managers. An organization can grow
effectively by making efficient planning and challenges in environment. BT Group Plc. formerly
known as British telecom was founded in 1969 (Borio, 2014). It is a multinational
telecommunication company in UK dealing with products like broadband services, television
subscriptions mobiles, broadband, fixed line broadband. The company has increased their roots
in across 180 countries and planning to penetrate market in other geographical areas. This
assessment will discuss different types of organization and their purposes, ways through which
company is focusing on different organizational function and their links to objectives and at the
end negative and positive impact macro environment in business activities, they can be analyzed
by different analytical tools like PESTLE and SWOT for better evaluation and learning .
TASK 1
P1 Types and purposes of different business organization
In business world there are majorly four types of organization, who play different roles in
business activities according to their characteristics. They are mentioned below
Sole trader- This is a time of business activities where only one person is responsible for
development of their business activities from marketing, promoting, dealing to decision making
related to their business activities (Chavis, 2011).. As a sole trader person is vulnerable to risk
and uncertainty in competitive environment and solely accountable for all profit and losses he
gain in business activities. Many small scale business and startups are considered as a sole trader
e.g. Anite is a small scale business is a sole trader.
Scope – They have small capitals, less risk involvement, liability is not much, size of
business is very small and it is limited in particular geographical region.
Partnership – It is recorded as collaboration of two or more that two people sharing their
business plan and resources and do business activities. For success of their joint venture they
share their skills, values, knowledge, inventory and plan with each other for gaining better profit

from market place. Government of UK have formulated and enacted a legal act for bare
regulation of joint ventures called Partnership act 2002
Scope- Partners sell and buy on partnership’s behalf in credit or cash, partners mostly
avoid donating and lending money from capital of their partnership ventures, and partners cannot
take lines or lent money without taking advice from their partners.
Company - It is a legal body that has their own existence and right to exist and business
in business market. Most of the investment for a company is mainly due to shareholders as they
can give suggestions and inputs for creating values for organization.
Scope – company mainly focus on increasing their customer base in different market to
earn more revenue for their products, expanding and creating brand image are some of the
important aspect of their growth policy.
Charity organization- These organizations are basically termed as non- profit
organization can exist in public or private sectors. Creation of charities may be for a social cause,
philanthropic activity, education, community, religion etc. Different country has defended types
of charity organization in their countries’ therefore tax exemption will also be different
according to geographical boundaries. Welcome trust, British Red Cross is some of the renewed
charity organization tends to invest in health and wealth of country
Scope – Expect no return for their charity programmer, their main aim is to donate in
social cause and upliftemt of society.
LTD. – These are limited companies where liabilities and rest of members are limited.
They only have risks and uncertainties in accordance to investment and share values. Many
limited companies are limited to guarantees and shares. These companies can be found in public
sector and private sectors. BT group, Marks and Spencer are some of the renewed LTD.
Company doing good business across UK.
Scope – limited company are mostly large organization as they perform philanthropist
activity across country by donating some amount for growth and prosperity of country, through
these activity they generate goodwill and faith about company that help them exceptionally in
sales and marketing activities.
Classification of companies on the basis of different sectors.
Private sector Company – These are some the company majorly concentrates on
expanding their business and earn more revenue from profit market. They can be large and small
scale organization depending of their growth, size and stability in market. Apple ink, Arcades
Group, Best way, John Lewis Partnership are some of the major organization earning large sum
of revenue.