Business and the Business Environment: Types of Organizations and Legal Structures

This report on Desklib covers the types and purpose of organizations in the public, private, and voluntary sectors, along with their legal structures. It also explains the size and scope of different types of organizations and the relationship between organizational functions and their link with objectives and structure. Additionally, the report includes a SWOT and PESTEL analysis of JD Sports to assess its external factors and internal strengths or risks.

Business and Business
Environment

Contents
Contents...........................................................................................................................................2
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................1

TASK 1
Business and business
environmentExplain different types and purpose of organisations public, private and
voluntary sectors and legal structures
Every company run their operations in a specific type of
organisation like public, private and voluntary to operate, manage and
accomplish the main goal for which they commence their business. Through
legal structure, they perform as well as conduct their responsibilities,
authorities, roles and task effortlessly.
Public sector organisation
The public sector organisation is formed and managed by
government of a country. They provide their products or services for the
welfare and improvement of society. For example, British Council is a pubic
organisation in UK that was established in 1934 by British government to
provide services related to education to public.
Purpose- The main goal of British Council is to provide education and
promote international cultural globally.
Legal Structure- The legal structures in public sector organisations are
shown below:
National level- Business managed and owned by the president as
well as members of legislature of the country. They operate their business to
provide education services or finance to government of state and regional for
smooth working.
State level- In this level, the members of state government work to
provide product and services for the betterment of community in state under
the guideline of central government.
The British Council company run their business activities at the national
level to provide their education services nationally or globally.
Private sector organisation
The private sector organisation is established and managed by the
Purpose- The main purpose of JD Sports is to earn maximum profit or brand
value by providing sports products to the target audience.
Legal structure – Given below are the legal structure in reference to private
sector organisation.
Partnership- It is structure of private company which is formed and by the
multiple owner to earn profit. The responsibility, authority and profit is
distributed among members as per their share in the organisation.
Public limited company- This type of company managed by the directors or
top level management as well as owned by the shareholders. The company
offers their shares to general people and listed in the share market of the
country.
The JD Sports company run their business operation as public limited
company to increase customer base and market share.
Voluntary organisation
The voluntary business is autonomous and managed by individuals
in the society to provide product and services to people of their community. For
example: Samaritans, it was formed in 1953 at UK to provide emotional
support or help to people.
Purpose- The main purpose of Samaritans is to provide their health services to
the people who suffers from mental issues.
Legal structure- The legal structure for voluntary organisations are as
follows-
Unincorporated associations- Individuals from a society come
together to run a organisation for the support or help of public as well as
provide their services for the welfare of community instead of making profit.
Charitable trust- It is formed as legal entity as a non-profit organisation. The
members act as trustee, agent, social worker and fiduciary on the behalf of a
company or person to achieve the specific goal like social service.
The Samaritans work as charitable trust for the betterment of people in UK.

Explain the size and scope of a range of different types of
organisation
Every organisation operates in different environment for various different
purposes. Each organisation has different vision, size, scope, products or
services and business objectives. The range of size and scope of different
kinds of organisation is discussed as below:
Private Sector Organisation (JD Sports)
 Background- JD Sports is a British sports fashion brand founded
in 1981, headquarter in Greater Manchester, England.
 Product or Services- It deals in accessories, footwear, sports
apparels and sports equipments. It also sponsors various football
teams.
 Size and Scope- JD Sports have over 37000 employees in around
800 stores worldwide providing great services and quality
products.
 Vision and Mission- Vision is to have long term sustainable
earnings to enhance the position of company. Mission is to
provides advance technologies and satisfy customer needs fully.
 Business Objectives- The objective is to earn more revenues by
attracting a large number of people in the brand.
 Legal Structure- It operates as a public limited company and
offers its share to public for the growth of company.
 Stakeholders- Executive Chair, Chairperson, employees and
general public.
Voluntary Organisation (Samaritans)
 Background- Samaritans is a charity formed in 1953 by Chad
Varah of London.
 Size and Scope- There are around 200 branches across the UK with
over 21000 trained people working as volunteers.
 Vision and Mission- Its vision is to reduce the number of suicide and
mission is to aware people about mental health.
 Business Objectives- To create awareness about various mental health
issues and prevents people from suicide.
 Legal Structure- It is a trust formed to provide services to general
public
 Stakeholders- Board of trustees, Government, volunteers and
investors.
Public Sector Organisation (British Council)
 Background- British Council is established in 1934 founded by
British Government, its headquarter is in London and operates in
around 100 countries.
 Product or Services- To provide educational opportunities and build
international culture. The organisation has more than 80 centres for
teaching which offers face-to-face teachings.
 Size and Scope- The number of employees in British Council are
around 12000 of staff in centres for teaching, offices, and libraries in
UK and in over 100 countries. British Council provides the scope of
versatility, ambition, motivation and creativity in a supportive and
opportunistic environment.
 Vision and Mission- The vision of British Council is to assist young
people to learn the skills, self-confidence as well as relations to
understand their potential so that they can participate in strong
communities. Likewise, the mission is to develop opportunities
globally for people of UK as well as for other nations and build
trustworthiness between them worldwide.
 Business Objectives- The objective of British Council is to build and
develop connections and trust between UK and other countries by

Explain the relationship between various organisational function and
their link with objective and structure.
Every company has various functions of management in their
organisation like finance, technology, operations, marketing and human
resource. All the functions are connected with each other for smooth flow of
working. In JD Sports, the company follows divisional structure to produce
different line of sports product in organisation efficiently.
Every product line has different functional unit as well as they are interlinked
which are as follows:
Human resource and operation- In JD Sports, human resource
department recruit and manage the employees as well as operation department
works to produce sports product from raw material to final goods. Both the
department are interlinked with each other as operation department give
information to human resource department about the need of workers for
producing large amount of goods. Along with that, human resource
Finance and technology- In JD Sports, finance department
makes budget and control the flow of cash as well as technological
department installs advance or productive machines for smooth
manufacturing. For the achievement of company's objectives, both
department works together. Technological department consult with
finance department about the budget for purchasing various machines in
the organisation to increase productivity.
Marketing and customer services- In JD Sports, the
marketing department promote their sports product to attract large
number of customers as well as customer service department retain
customer by answering their queries. Both department make better
strategies to increase customer base and brand value. Customer service
managers discuss with marketers about the customer trends and target
markets.
Benefits and limitation of relationship in organisational functions
The benefits of divisional structure for JD Sports are effective
communication, easy flow of work, financial control, better environment
for employees and accountability in work which increase productivity
and profit of company. Whereas, there are some limitation also such as

TASK 2
Slide 1:
Slide 2:
Slide 3:
1

This report covers the SWOT and PESTEL analysis of an organisation to assess the external
factors and internal strengths or risk.
Slide 4:
2

The macro factors of JD Sports can be examining by PESTEL analysis which is discussed
underneath:
Positive- The political stability and importance to retail sector of UK provides various future
opportunities, thus impacts JD Sports positively.
Negative- The Brexit decision impacts negatively the operations of JD Sports as it had to shut its
business in EU which affect its overall profitability.
Slide 5:
Economical-
Positive- The consumer spending rate in UK is high which helps JD Sports to grow its business
on large scale.
Negative- The labour and supply cost in UK is relatively high which increase the cost of
production of JD Sports.
Social-
Positive- People of UK prefers a good standard of living and adopts a healthy lifestyle which
increases the market share of JD Sports as it deals in sports related accessories.
Negative- The changing preferences and tastes of people according to the change in market
trends impacts negatively on JD Sports sales.
3

Technological-
Positive- JD Sports uses the advance technologies in their production which helps them to
compete better in the market and people also prefer good quality products.
Negative- The cost of new technology adoption and the time to understand the dynamics of new
machines impacts negatively on the operations of JD Sports.
Slide: 6
Environmental-
Positive- JD Sports goods are being made on environmental standards which helps in creating a
goodwill for the company. It also uses renewable technologies for which the government
provides subsidies too.
Negative- The unstable weather conditions impacts negatively the operations of JD Sports as in
extreme cold weather the sales of company go down.
Legal-
Positive- JD Sports follows the health and safety laws for the employees to conduct accurate
operations of business.
4

Negative- The reputation and position of JD Sports is affected if the company fails to return its
taxes or timely auditing.
Slide: 7
External analysis refers to the process to identify the external factors like market condition,
customer trends, advance technology and so on which affect the operation of JD Sports. SWOT
analysis is the management tool which helps managers to determine their internal strength and
weaknesses as well as external opportunities and threat for future growth. By SWOT analysis,
managers of JD Sports makes effective business plan which increase their productivity and profit
in future that are as follows-
5

Slide: 8
Slide: 9
Strengths and weaknesses are different or opposite elements which provide benefits and
challenges to the organisation. Strengths and weaknesses are interlinked with each other as well
6

as they increase the risk and threat of external micro factors in the business. Therefore, correct
analysis of these factors helps the managers of JD Sports to achieve their business goal
efficiently. External micro factors are analyses by the managers of JD Sports with the help of
PESTEL analysis which state their strengths and weaknesses that are given below:
Slide: 10
Slide: 11
7

Slide: 12
Slide: 13
8

9