Organizational Functions and Structure Report

Running head: BUSINESS ENVIRONMENT0
Business and The
Business
Environment

BUSINESS ENVIRONMENT1
Table of Contents
Introduction................................................................................................................................2
Task 1.........................................................................................................................................3
Public Organisation................................................................................................................3
Tesco PLC..........................................................................................................................3
Private Organisation...............................................................................................................5
PricewaterhouseCoopers....................................................................................................5
Voluntary Organisation..........................................................................................................7
American Red Cross..........................................................................................................7
Task 2.........................................................................................................................................9
Impact of Macro Environmental Factors on H&M’s Business..............................................9
Conclusion................................................................................................................................14
References................................................................................................................................15

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Introduction
An organisation is a legal entity comprising various peoples, such as associations,
individuals, and institution that work together in a business or public serving to accomplish
common objectives. Each organisation has a management structure which determines and
maintains the relationships between different stakeholders and activities to ensure that each
role, responsibility, and authority is designed to achieve the organisational goals. There are
different types of organisations which are divided based on their characteristics such as
private, public, legal and voluntary, each of these organisations have different organisational
structure, legal framework, size, scope, and stakeholders.
This report will evaluate different types of organisations based on their characteristics and
provide various examples to understand their functions and attributes. The report will discuss
various organisational functions and assess their connection with the structure and goals of a
corporation. Further, the report will analyse environmental factors that positively or
negatively impact or influence the organisational structure of “Hennes & Mauritz”. The file
will evaluate various internal and external environmental factors to determine the weaknesses
and strengths of H&M and connect them with external sources.

BUSINESS ENVIRONMENT3
Task 1
Organisation is a legal body which includes various parties who work together in order to
accomplish common goals. Following are explanations and legal structure of different types
of organisation along with examples.
Public Organisation
A public organisation is a company whose capital is divided into small parts called share;
such shares are freely traded on the stock exchange and a person become the owner of a
company by purchasing its shares (Luoma-aho, 2008). According to Pichault (2007), a
public organisation can be listed or unlisted. The listed companies are able to sell their shares
on stock exchange. As compared to other organisational structures, public organisations
larger in size due to their ability of raising capital through sale of shares (Coluson-Thomas,
2012).
Legal Structure
The legal structure of a public corporation is considerably complicated than compared to
other companies since it requires complying with multiple legal requirements. For example, a
public organisation is required to continuously file disclosures regarding various aspects such
as directors holding, annual statements, IPO, promoters holding, audit report, and many
others (Ng and Lossemore, 2007). The legal structure of a public organisation is complex and
strict because it involves public money. The company is requiring notifying stock exchange
of any significant change in management or shareholding.
Registration of a public company is compulsory, and without registration a public company
cannot attain its separate entity status. At the time of registration, minimum two directors and
one secretary are necessary, and the minimum share capital must be £50,000 among which
£12,500 must be paid up capital (Von Bogdandy, Dann, and Goldmann, 2010). The company
is also requiring preparing memorandum of association and article of association which
include the necessary framework and other essential details. Following is an example of
public organisation to understand its various aspects including size, scope, objectives,
mission, vision, and stakeholders.