Types and Legal Structure of Business Organizations - Desklib

This article discusses the various types of business organizations, including public, private, and voluntary sectors, and their legal structure. It also covers the size and scope of different sectors and their purposes. Additionally, it explores the relationship between organizational functions and structure. The article includes examples of companies like Tesco and UK Sports.

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Various types and purpose of public, private and voluntary sector organizations and their legal
structure..................................................................................................................................3
Size and scope of various types of business organizations....................................................5
TASK 2............................................................................................................................................8
Relationship among the various functions of company and their linkage to objectives and
structure..................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment refers to the sum total of all external and internal factors which influences
the business. The concept of business environment states the total of all individuals,business
organization and various other forces which are outside the power of sector which impacts its
manufacturing. The financial culture,authorities, technical and various forces working outside
the business organization and part of its environment. The consumers and business
organization,competitors,media, judiciary and establishments which outside the organization
including the environment. It aids in identification of opportunities and get first mover advantage
and aid the enterprise for threats and early signals warning identification . It also helps in
tapping useful resources and coping with fast changes. This project mentions the info about
various types of business organization and the legal structure with its size and scope. This project
mentions the different forms of business organizations structures in reference to Tesco. It is a
mnc situated in UK established in year 1919. It deals in groceries and merchandise retailing.
MAIN BODY
Various types and purpose of public, private and voluntary sector organizations and their
legal structure
The organization is referred to as the bunch of individuals who have recognized the objective
and goals for performing the activities of business organization for achievement of pre defined
objectives of the organization with accountability and control. The main purpose for the
development and growth for making profits and give jobs for increasing the rate of employment
rates in the economy(Halbert and Ingulli, 2020). Here are some of the various types of sectors in
which the business organization can grow and develop-
Public sector organization- They are the business organization which do not work for
money and are controlled and under taken by state authorities or central authorities . The main
purpose of these sectors business organization is for serving the public and society without the
intention of earning money as main priority. They basically focuses on enhancement of peoples
living standard, society well being and development of the country. British Broadcasting
Corporation, Bank of England are some examples of public sector business organization in
United Kingdom.

Purpose- The main motive or purpose of these types of business organization is for serving the
country and public or society for making them goods and services available at very cheap rates
in compare to other companies with full use of the resources(Lin, 2018).
Legal Structure
 Central government- These business organization are basically controlled and funded
by the central authorities by tax collection or treasure. For example the National
Probation Service.
 State government- These types of business organization are basically controlled by
particular department of government. Intervention of central authorities is in the
organization but at some limited level. For ex- Chartered Institute of Public Finance and
Accountancy.
 Local government- The public sector business organizations are mainly controlled by
the municipal authorities and revenue generation is done for regional communities. For
ex- National Audit Office.
Private Sector organization- It is the most crucial part of economy if the nation. They
are included in the category where the control and ownership in with the group of private
individuals or by single individual. They are not connected to authorities and there is no
intervention of authorities in the company operations. The main purpose of these business
enterprises is to make huge profits and stay in the market place for a long time period. For
examples are Swire, Pentland Group, Dyson and many more(Ohiomah, Benyoucef and Andreev,
2020).
Purpose- The main motive and purpose of these business organization is to make more money
and became leader in the respective sector.
Legal structure
 Sole proprietorship- It is the type of business organization which is held and managed
by single individuals and the founder of the business organization is accountable for all
the liabilities ,profits and business loss. For ex- IKEA.

 Partnership firms- It is the type of business organization in which there is as
agreement among the 2 or more than 2 individuals who agreed for profit sharing and
business loss in pre determined ration or equally. For ex- Red Bulls and Go Pro.
Voluntary Organisation- These are those business organizations which are group of
individual who agree to form a group and enter in voluntary agreement for solution of societies
troubles and formation of legal body for achievement of same motive and objectives. These
business organizations are incorporated for achieving specific goals for particular time period.
Some of the examples of voluntary business organization are FC Stock City, Shelter in United
Kingdom.
Purpose- The main motive of these types of business organizations is for development of more
opportunities and give social services focusing on development of society.
Legal Structure-
 Unincorporated Associations- It is referred to as the group of 2 or more than 2
individuals who come together for common motive and every individual is accountable
for duties and responsibilities. Ex- Glaxo Kline Plc.
 Trust- It is a joint venture which is not compulsion by law and members are known as
trustees who are accountable for the actions. For ex- Barts Health Trust.
Size and scope of various types of business organizations
Voluntary firm
Sobell Leisure centre-
 Background- Sobell lesiure is the business organization founded by Late Sir Michael
Sobell. The organization is a public sector organization and offering many facilities and
services to general public.
 Goods and services offered- The business organization offers various facilities like
gym,parks,pools,tennis courts and pitches indoor and many more.
 Size- In current scenario the foundation is doing management of services of more than
250 and does operations in more than 55 hubs in context to classes of fitness.
 Scope- The foundation is coming with a plan of more services in the name of Better
brand name.

 Vision- It focuses at giving best facilities to its consumer base by diversification of its
communities,giving quality standards and serving public online.
 Mission- The business organization focuses at development of games and sports legacy
with improvement of participation in sports and activities physically. S
 Objectives of Business- The main purpose of Sobell Leisure Center is for giving jobs,
training staff as well offering of health services to general public.
 Stakeholders- As it is a voluntary business organization which includes the trustees,staff
members,volunteers and many more.
Private firm
TESCO-
 Background- The company is situated at Welwyn Garden City ,United Kingdom dealing
in the high quality of sports wear and was incorporated in the year 1919.
 Goods and services offered- The business organization mainly deals in groceries and
home use goods at affordable cost to consumers all over the world.
 Size- The business organization has more than 70,000 employees in all over the world
and has turn over of more than 30 $ billion.
 Scope- The business enterprise offers and produces the high quality consumers goods and
groceries also the home products.
 Vision- The vision of the company is for becoming the leader in its category all across
the globe.
 Mission- The main aim and purpose of the business enterprise of providing the high
quality goods to consumers as low quality of goods cause loss to brand image of
company.
 Objectives of Business- The main goal of the business organization for generating more
money, capturing more market place and become leader in the market place.
 Stakeholders- The stakeholders of the business organization are consumers,sports
person,board of directors ,workers.
Public firm
UK sports-

 Background- It is a United Kingdom based business organization formed by national
lottery and funding by government and was incorporated in the year 1997(Franklin and
Marshall, 2019) .
 Goods and services offered- The business organization gives targets strategic finance for
high class programmes of sports,giving programmes of development for supporting the
leatherettes.
 Size- The organization had invested and directed the athletics and sports events having
more than 60 Olympics medals and more than 100 medals in Paralympic in 2012 London
Olympics.
 Scope- The company focuses at bid of different events of sports and gives coaching to
sports person in games.
 Vision- The company focusing on build of healthy relations with world level federation
and various bodies which are related to sports.
 Mission- The business organization focuses at working in partnership for conduction of
Olympic and Paralympic sports events in United Kingdom.
 Objectives of Business- The main goal of company is giving better coaching to athletes,
governance of leadership with sports investments.
 Stakeholders- The company stake holders are financiers, trainers,members of
board,partners and many more.

TASK 2
Relationship among the various functions of company and their linkage to objectives and
structure
Organisational functions- They are the function which are the activities set carried in
the departments internally and has the own part and accountability. The types of functions of the
business are sales,marketing,consumer service,human resource,research and development and
many more(Rajput, Zahid and Najaf, 2018). Some of the various functions are-
 Human Resource Department- They are the bunch of people which are accountable for
hiring of skilled professionals by giving proper training to them( Uluskan and Godfrey,
2018). The department is linked to marketing and finance as the human resource
departments hires the staff members as per the demand and need of department of
marketing and human resource department gets finance for training of employees from
finance department as the need.
 Sales department- It is accountable for trading and sales of commodities in return of
money and instruments of finance. The most significant role is played by this department
due to the company sustainability in market place is dependent on the department. The
sales department is linked directly to Hr and manufacturing department as Hr give
workers and staff as the need and manufacturing department gives commodities for
trading in market places(Damarwulan and Farida, 2018).
Organisational Structure- It is the model frame work which mentions the out line of
various function and roles of workers and many accountability in the business organization
internally. The structure gives various tasks like allotment of task,coordinating and supervising
the achieving of pre determined goals and objectives. Here are some of the various structure of
organizations-
 Divisional Structure- In this structure type the company section on the goods
bases,services and demographics. Big organizations basically uses these types of
organization structure as they operate in large area and have posses of small enterprises.

It allows each department for working independently and each has own functions,
resources and departments.
 Hierarchical Structure- This one is the most common structure used by the companies.
In this the business management sections the every roles and functions in various level
from top to down where every juniors needs to report to the senior. It represents the
pyramid in which the business organizations is placed at high level by directors of boards
of departments(Alsaad, and Taamneh, 2019).
The structure used by the Tesco company is Hierarchical organizational structure in
which each and every worker of the business organization is accountable for reporting to the
senior. It advances the department loyalty and did not raise to misunderstanding. It also give
various opportunities to workers of the business organization so they work hard and fulfils all
the activities of organization effectively. By this organizational structure help the enterprise can
create pre defined communication structure and because of this the troubles faced by workers
are solved in easy manner by the executives.

CONCLUSION
The above project concludes that there are various types of business organizations which
have various motives and goals for achieving, The different types of business includes the
voluntary,public and private having various sizes, scope and structure. For achieving the success
of business as it is significant for following for proper structure of organization which can be
hierarchical,divisional and many more.

REFERENCES
Books and Journals
Alsaad, A. and Taamneh, A., 2019. The effect of international pressures on the cross-national
diffusion of business-to-business e-commerce. Technology in Society, 59, p.101158.
Damarwulan, L.M. and Farida, N., 2018. The Role of Quality of Entrepreneurial Networking
and Responsiveness to Global Business Environment in improving the Marketing
Performance of Indonesian Exporting SMEs. Quality-Access to Success, 19(165).
Franklin, D. and Marshall, R., 2019. Adding co-creation as an antecedent condition leading to
trust in business-to-business relationships. Industrial Marketing Management, 77,
pp.170-181.
Halbert, T. and Ingulli, E., 2020. Law and ethics in the business environment. Cengage Learning.
Lin, P., 2018. Adapting to the new business environment: The rise of software robots in the
workplace. The CPA Journal, 88(12), pp.60-63.
Ohiomah, A., Benyoucef, M. and Andreev, P., 2020. A multidimensional perspective of
business-to-business sales success: A meta-analytic review. Industrial Marketing
Management, 90, pp.435-452.
Rajput, A., Zahid, M.M. and Najaf, R., 2018. Using CRM to model firm performance in a
business-to-business market. Journal of Relationship Marketing, 17(2), pp.118-151.
Uluskan, M. and Godfrey, A.B., 2018. Business environment-supply chain framework and
benchmarking supply chain structures: Haiti versus China. Benchmarking: An
International Journal.