Types and Purpose of Organisations in Business Environment

This report discusses the different types and purposes of organisations in the business environment, their size and scope, and the interrelation of different organisational functions. It also includes examples of public, private, and voluntary organisations.

Business and Business
environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Different types and purpose of organisations..............................................................................3
Size and Scope of different types of organisation.......................................................................5
Relationship between different organisational functions ...........................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment is classified as the surrounding in which the organisation conducts
and operates its activities. This environment is huge and consists of several factors which are
further classified in two parts that is the internal and the external environment (Barbosa,
Castañeda-Ayarza and Ferreira, 2020). Organisations are of several types based on the type of
operations and ownership. This report revolves around the types and purposes of different types
of organisation and their scale of operation in the environment. Further the scope and size of
these businesses are discussed and the interrelation of the different functions in the organisation.
MAIN BODY
Different types and purpose of organisations
The businesses differ on the basis of ownership and operations carried out in the
organisation. There are three types of business operating in the industry, all three of them has
different purpose and objectives (Barry, 2017). Further detailed discussion of these three types of
industries is done below:
Public organisations: This type of organisations are funded and managed by the government of
the country. Generally these organisations are less expensive as compared to the other businesses
dealing in the same industry. Revenue generation from these industries are considered as the
wealth and property of the country and the government ruling in the country. One of the most
popular and successful UK based public organisation is UK Sport (UKSP) which is known for
hosting the Britain's Olympic and Paralympic Sports. They host all the major sporting events
happening across UK.
Purpose- The purpose of the government funded organisation is to provide the services to
general public at the minimum costing. These companies generate revenue to support the
economy of the country.
Legal structure- The legal structure of government countries are decided by the
government body who controls the operations of the organisation. The legal structures is decided
by two bodies of government that is: Central Government: The organisation that comes under the control of this government
are managed and ruled by central government of the country. In case of UK Sports, their

operations are managed by the central government of the country. They decide the
grounds on which the company will continue its operations. State Government: In this case the legalities of the organisation is controlled and
managed by the local state government.
Private organisation: These organisation are managed and operated by the private bodies and
the government has no control over the operations of business (Bergquist, 2017). This sector is
property of the owner and entrepreneur and they are the one who deals with the risks and profit
in the business. J.D Sports, is a private organisation that manufactures the product and services
related to the sporting activities.
Purpose- Private organisations are started and incorporated for the purpose of revenue
generation. They stay in the market to earn profit from the manufacturing and selling activities.
Legal structure- The legal structure of the private organisations are dependent on the
ownership type and the operations of the company. Government has set up different laws and
structure for every organisations. Further the types of private organisation in terms of ownership
are discussed below: Sole proprietorship- This refers to the industries and the company which are fully owned
and managed by a single person. In this kind of proprietorship, a single person is exposed
to all the risks and profit in the business. Partnership- These types of industries and businesses are managed and owned by two
persons, the ratio of their investment may vary on mutual agreement. The profitability
and loss ratio is also calculated based on the share of investment they have in the
company.
Voluntary organisations: These organisations can be either private or public but they exist for
the purpose of social welfare (Cosenz, Rodrigues and Rosati, 2020). They are generally funded
by the people who are willing to donate for the betterment of the society. Example of such
voluntary organisation is Sports England, they aims to develop the sporting activities happening
across the country.
Purpose: The purpose of the voluntary organisations are to provide social service and do
help and welfare of the people in the society.
Legal structure: The company works on a very basic legal structure where they show
transparency of the funds that they generated from different sources across the country.

Size and Scope of different types of organisation
The size and scope of the organisation is dependent on their goals and purpose. Their aim
for the near future is the major component in deciding the size and scope at which the company
will operate in the near future (George and Paul, 2020). Scope refers to the potential and the
growth prospects that the company has in the future. Size refers the scale of operation at which
the company currently operates and wishes to operate in the future. Size and scope of different
types of organisations are discussed below:
Public sector organisation: The organisation considered in this is UK Sports which is
government owned organisation responsible for hosting and organisation of sports events.
Size: UK Sport is a 1996 formed organisation that is hugely funded by the government as
they host major events such as Olympics and Paralympic in the country.
Scope: They have a good scope in the future as the Olympics and Paralympic keeps
happening after a certain period of time.
Private sector organisations: J.D Sports is one of the market leaders in the sports products and
services, they have wide range of products for every sport.
Size: J.D Sports is spread across several parts in UK and has a huge workforce of around
85000 people. Their operations are carried on a good scale and thus they have a good
competitive edge in the industry.
Scope: They have good growth prospects which will help them in expanding their
business on a global level. The have a good ability to capture majority of the market due to their
high production capacity.
Voluntary organisation: These kind of organisation does not look for monetary growth and
focuses on expanding their helping ability to the more and more people.
Size: Sports England is a company which is looking to elevate the condition of sporting
activities in United Kingdom. Their operation scale is also big as they have spent around trillions
of Euros in making a good sports culture in the country.
Scope: The company has a good scope as they good funds incoming in the organisation
and thus hold good scope of sustaining in the environment.

Relationship between different organisational functions
Organisation functions refers to the core activities that are carried out within different
parts of the company. These departments are assigned different roles and responsibilities.
Distribution of functions in the organisation is done in order to increase the productivity and
speciality (Jawabri, 2017). All of these functions are important for the organisation and play a
major role in smooth functioning of the business. In context of J.D Sports that have several
functional departments in the organisation which are interdependent and works hand in hand
with each other: Finance and Marketing: Finance department is responsible for handling and managing
the monetary values of the company. Marketing team is responsible for advertising and
promoting the brand image and products in the market. Finance department of JD Sports
is responsible for allocating proper marketing funds to the marketing department so that
they can smoothly continue their operations. Production and research department: Production or operational department is
responsible for conducting and managing the activities that are related to manufacturing
and production (Schniederjans, 2018). Research department is a proper team which
analyses the need and demands of the customers, they conduct various interviews,
questionnaire and campaigns to understand the demand of the market. They work hand in
hand as the research department communicate the need and wants of the product and
different features that are required in the market.
 Human resource and marketing: The job of the human resource department is to
manage the personnel where as the marketing team is responsible for promoting the
products manufactured by J.D Sports. Human resource department is responsible for
hiring personnel that are good enough to carry the image of the company in the market.
They need to manage and maintain a qualified and trained marketing team as the sales
factor is dependent on this aspect.
CONCLUSION
From the above report it can be concluded that the organisations in the environment are
of several types and the differ in terms of ownership, aims, scope and operations. Every
organisation has different kind of growth prospects according to their functioning in the
environment. There are several types of functions in the organisation and all of these functions

play a major role in smooth functioning of the business. Marketing, HRM, Operations and
Finance are the major four functions of the business and all of them are interconnected and
dependent on each other.

REFERENCES
Books and Journals
Barbosa, M., Castañeda-Ayarza, J.A. and Ferreira, D.H.L., 2020. Sustainable strategic
management (GES): Sustainability in small business. Journal of cleaner production.
258.p.120880.
Barry, T., 2017. Communicative strategies and tactics of speech manipulation in intercultural
business discourse. Training, language and culture. 1(1).
Bergquist, A.K., 2017. Business and sustainability: new business history perspectives. Harvard
Business School General Management Unit Working Paper. (18-034).
Cosenz, F., Rodrigues, V.P. and Rosati, F., 2020. Dynamic business modeling for sustainability:
Exploring a system dynamics perspective to develop sustainable business models.
Business Strategy and the Environment. 29(2). pp.651-664.
George, B. and Paul, J., 2020. Digital transformation in business and society. New York, NY:
Springer International Publishing.
Jawabri, A., 2017. Exploration of internship experience and satisfaction leading to better career
prospects among business students in UAE. American Journal of Educational Research.
5(10). pp.1065-1079.
Schniederjans, D.G., 2018. Business process innovation on quality and supply chains. Business
process management Journal.