Different Types of Organisation and Their Legal Structures

Business & the
Business Environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Explain the different types of organisation with their purpose and their legal structures......3
Size and scope of organisation...............................................................................................5
Task 2...............................................................................................................................................6
Organisational structure and functions...................................................................................6
Task 3...............................................................................................................................................7
Positive and negative impact of macro environment upon business operations....................7
Task 4...............................................................................................................................................8
Internal and external analysis of organisation........................................................................8
Strengths and weakness are related with external macro environment................................11
Conclusion.....................................................................................................................................12
References:.....................................................................................................................................13
Books and Journals...............................................................................................................13
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INTRODUCTION
Business environment is the collection of internal and external factors which influences
the company in numeral ways (Rosa, Sassanelli and Terzi, 2019). The factors can include
customers, suppliers, competitors, suppliers and many more. Businesses have to take care of
such factors as they can impact the performance of the business. Every time business has to deal
with many things and the businesses has to operate their activities within the presence of such
factors. The business environment is dynamic in nature and keeps on changing and so for such
situation business has to make themselves prepared so that it cannot create bad impact on the
growth and profits. Sainsbury is the largest chain of supermarket which provides all the things
required by the consumer. The business was started by John James Sainsbury in 1869 having
headquarters in Drury Lane, London. This report will cover different types, sizes and scope of
organisations and the interrelationship of various functions within the organisation and how they
link to organisational structure. It will also cover positive and negative impact of macro
environment and strengths and weaknesses of the business having interrelationship with macro
factors.
MAIN BODY
Explain the different types of organisation with their purpose and their legal structures
There are different types of organisations having different structure and purpose to
formulate their activities. Different organisation with their purpose and legal structure is
mentioned below-
Private organisation- These organisations are owned by the individuals who usually work to
earn the profits. Their main agenda is just to earn profit because of which they provide varieties
of things to the people just to gain the market share (Madsen, 2020). Companies who are owned
individually by the people does not have any government intervention and they make their own
rules and regulations for the daily activities. For example- Sainsbury is a multinational
supermarket which is second in number in London. They follow the Consumer Protection
Regulations act, 2013 and abide by all the other laws which are safer for the consumers and also
for the employees working in the business.
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Purpose- The main purpose of the private organisation is just to earn profit and they carry out
their own rules and regulations inside the business without having any government intervention.
Legal structure
Sole proprietorship- Sole proprietorship is the business which is owned by a single person and
is considered to be the simplest form of business (Suresh, Sanders and Braunscheidel, 2020). It
is the most inexpensive business which can be started by just small investment and does not
require any registration of business by the authority.
Partnership- Partnership is a kind of business which is started by two or more people based on a
formal agreement. In this agreement all the duties, responsibilities of the partners are mentioned
and in this agreement it also provides the information regarding the ratio in which the profits and
losses has to be shared by the partners.
Corporation- Corporation is basically a organisation which is developed by the shareholders,
individuals with the objective to earn a profit. It has a separate legal entity and the personal
liability of the shareholders is also less. Setting a corporation helps to reduce the income tax and
does not have to pay corporation tax on the salary.
Public organisation- Public organisations are those which are operated by the government and
are also funded by the government (Silvander, 2019). They generally don’t run the business for
the profit motive but their main agenda is just to provide social welfare to the people living in the
society. For example- British Council which specialises and work for the culture and educational
opportunities and helps in providing the knowledge to the UK.
Purpose- The main purpose of the public organisation is to help the society and work for the
society without thinking of earning the profits. Public organisations are built for providing the
services which are demanded and required by the general public and which are being served by
these organisations.
Legal structure-
Central government- The central government is the top most government which controls all the
powers and all the rules and regulations. They have to power to form the laws for the business
and every business has to conduct their activity according to their instructions otherwise the
business could get the closure.
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