Size and Scope of Different Types of Organisations

Business environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types and purposes of organisations; public, private and voluntary sectors and
legal structures........................................................................................................................1
Differences between organisations for profit and not for profit, and non-government
organisations (NGOs).............................................................................................................2
P2 Explain the size and scope of a range of different types of organisations........................3
TASK 2............................................................................................................................................7
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure..................................................................................7
TASK 3............................................................................................................................................9
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples...........................................................................9
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses.....................................................................................................11
TASK 4..........................................................................................................................................13
P6 Explain how strengths and weaknesses interrelate with external macro factors.............13
VRIO of PRIMARK ............................................................................................................17
TOWS Analysis....................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Business environment acts as an most essentials element, as this include different types of
factors with the understanding of which organisation can effectively able to operate their
business functions (Hilton and Platt, 2013). Within business environment there are different
types of internal as well as external forces that further drive functioning of business in a negative
and positive manner. It is essential for business organisation to effectively understand these
factors in order to conduct business operations in a well defined manner. Present report has been
conducted on PRIMARK. Company was founded in the year 1969 and operate their functions in
retail industry. Clothing, Cosmetics and housewares are main products of company. Size as well
as scope of voluntary, public and private organisation has been covered in this report with
SWOT analysis. Lastly report include relationship among organisational functions within
organisational structure.
TASK 1
P1 Different types and purposes of organisations; public, private and voluntary sectors and legal
structures
There are numerous range of organisations those who perform their operations in best
effective manner with an aim to gain high rate of profitability. All these organisations operate
their functions with some certain roles and responsibilities as to offer qualitative products and
services to customers. Main motive behind this is to serve customers with best and earn adequate
profits. It has been determined that every organisation perform their operations in different legal
structures. There are classification of these organisations are defined below:
Private sector
Organisations those who perform their operation in private sector have main motive
which is to effectively gain large base of profitability. These organisations are duly managed by
firms, individuals and other legal authority. In addition with this, sole traders are also considered
as private sector organisations as they perform their business by own. Organisations within this
sector effectively conduct their functions with an aim to serve customers in best effective manner
and ensure high rate of profitability. Funds have been mainly gather by these private sector
organisations through business entities, investors, bank loan, financial institutions etc.
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For example PRIMARK operate their functioning in private sector as they conduct their
roles and responsibilities with having their own working structure.
Legal Structure: Legal Structure of private organisation includes:
Sole proprietorship:
In this a single individual undertake their business and are sole responsible for the loss
and profit. Hairdressers, Newsagents and market traders are some of the examples of sole
proprietorship.
Partnership:
Partnership is mainly defined as an association within which two or more than
individuals come together for a common purpose. In this an agreement is signed which is also
termed as deed of partnership.
Legal Structure of PRIMARK:
PRIMARK operate their functioning as private limited company. This significantly
indicates that shareholders of company is having limited liability. In addition to this, it has been
identified that entity incorporated under laws of Scotland, England and Wales.
Advantage of legal structure for company
This has been identified that one of the most prominent advantage of legal structure for
PRIMARK is that it allow entity to indulge in easy tax preparation. In addition to this, by
operating their functioning in private limited company, PRIMARK can significantly able to
enjoy utmost profit and benefits. It is a separate legal entity as a company is a juristic person
which is established under Act. It allows free& easy transferability of shares.
Disadvantage of legal structure for company
One of the major disadvantage of private limited company legal structure is that in this,
organisation can not sold their shares on a public stock exchange. In addition to this, they are
having disadvantage of limited growth as well as restricted number of shareholders.
Public sector
Public sector include those organisation who are fully controlled by public bodies,
government agencies and government bodies. These organisation operate their functions as to
serve customers in best effective manner and further provide welfare to individuals and society.
It has been analysed that public sector organisations operate their functions in a democratic way
as in this every person who is entitled can undertake their own decision. Public sector
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organisation have authorisation by government entities. Further it has been determined that
organisation in this sector that different size, shape and structure as compared to legal bodies.
For example BBC conduct their operations as public sector entity and they are mainly
managed and controlled by government bodies.
Legal Structure: BBC operate their services in private sector are are mainly controlled by
governmental authorities. Mentioned below legal structure of company:
State Government:
In this form of legal structure sharing of political as well as legal rights mainly
undertakes among national and sate authorities. Within this state government mainly enjoy
formal decision-making rights without concerning to central government prior permission.
Local Government:
Within this, diverse range of local governing authorities operate their functioning in
regional as well as local level.
Central Government:
This is a supreme authority. It has been identified that within UK central government
hold rights to undertake decisions that are mainly related to securing people form terrorism,
nation security and distribution of national treasury budget.
Advantage of legal structure for company
Most important advantage of legal structure of public limited company is that it allows
companies to raise capital via public issue of shares. In addition to this, organisations involved in
public sector is also having different form of finance opportunities.
Disadvantage of legal structure for company
Disadvantage that is entitled with potential for loss of control, stock market vulnerability
and increased legal implications. This somehow affect entities within public legal structure to
fulfil their organisation aim.
Voluntary organisation
Entities those who conduct their functions in Voluntary sector have an aim which is to
effectively satisfy needs and wants of society (Boons and Lüdeke-Freund, 2013). These
organisations allocate funds from large private sector organisations and other organisational
units. They donate their funds as to gain goodwill. Volunteers offer their contribution willingly
in order to effectively serve individuals.
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