Different Types and Purposes of Organisations and Their Impact on Business Operations

This report explains the different types of organisations, their legal structures, scope, vision, mission, and objectives. It also explores the relationship between organisational functions and structure and how they impact business operations. The report includes case studies of UK Sports, Bannatyne's Health Club, and Sport England.

Business and Business
Environment

Table of Contents
INTRODUCTION................................................................................................................................3
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures..........................................................................................................................4
P2 Explain the size and scope of a range of different types of organisations..................................6
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure............................................................................................8
CONCLUSION ...................................................................................................................................9
REFERENCES...................................................................................................................................10
INTRODUCTION..............................................................................................................................11
P4- Identify the positive and negative impacts the macro environment has on business
operations, supported by specific examples...................................................................................11
P5 Conduct internal and external analysis of specific organisations in order to identify strengths
and weaknesses..............................................................................................................................13
P6- Explain how strengths & weaknesses interrelate with external macro factors.......................13
CONCLUSION .................................................................................................................................14
REFERENCES...................................................................................................................................15
Books and Journals.............................................................................................................................15

INTRODUCTION
In simple terms business refers to the set of activities performed by Individual, organisation
or enterprise with the aim of production of goods and services that can be trade in the market at
particular price with ultimate goal of earning revenue and generating profits. This report contains
information in relations with multiple companies i.e. UK sports, Bannatyne's Health Club and Sport
England to efficiently analyse the organisational types, structure, culture and its impact on business
operations. A detailed information on scope, vision, mission and objectives of such organisations is
mentioned forth in this report.

MAIN BODY
P1 Explain different types and purposes of organisations; public, private and voluntary sectors and
legal structures.
Business organisation refers to an entity or body engaged in commencing commercial
activities or operations of buying and selling of goods and services in order to earn profit. There are
multiple types of business organisations depending upon the size, stakeholders and business motive
of the organisation. Further mentioned are the types, purpose and structures of business
organisations to understand the details in brief.
 Public Sector Organisation – Public sector organisations refers to the companies and
enterprises owned and controlled by state or central government of a country. Such
organisation are highly focused in providing public services in order to benefit and uplift the
specific business it conducts its operations in. For example - UK sports is a public limited
company highly contributed towards hosting major sports events and international events
across UK to uplift the sports culture and it also conducts sports events enabling participants
to take part regardless of sex, age and interest with the aim of developing interest for sports
in Individuals.(Sugden, 2018)
Purpose of Public sector organisation – The main objective of public sector enterprises is to serve
the general public of the country it is established or commencing its operations in. Upliftment of
society and culture is the primary objective rather than generating profits.
Legal Structure of Public sector organisation
1. Central Government – Certain large PLC companies are controlled by central government
bodies to commence business activities. Government treasuries and taxes paid to
government by citizens helps in bringing financial reserves for such companies. Also, public
firms generate finances through issue of shares and bonds to the public. For Instance -
2. State Government – Several organisations are controlled by specific bodies of government.
Central government have watch over the performance of such organisations and companies
but up-to limited extent.
3. Local Government – There are multiple small PLC's that are owned by municipal
corporations with main aim of generating revenue for the development and upliftment of
local community.(Pyper, 2021)
 Private Sector Organisation – Such organisations, enterprises and companies are owned and
operated by individuals, groups of individuals. The entire management is handled and

managed by Industrialists and executive bodies. There is no involvement of government in
functioning of such enterprises. For example - Bannatyne's Health Club is owned by
businessman Duncan Bannatyne, for efficient management of the company. Proper
experienced personnels are hired at each level of department according to the need of the
company for smooth functioning.
Purpose of Private Organisations – The main objective of private sector companies and
organisations is to attain maximum profits through their business activities of selling products and
services in the market. Expanding business and generating maximum revenue is the main goal of
private sector business entities.(Baptista, Alves and Matos, 2020)
Legal structure of Private sector Organisations
1. Sole Proprietorship Organisation – Sole proprietary entities are run by single or individual
person who conducts planning, execution of business strategies on its own. Sole proprietor
of a business enjoy profits alone and also bears the loss solely if happens.
2. Partnership Business firms – In such businesses, two or more individuals shares
responsibility to conduct business operations and manage the profits and losses earned
during financial years.
 Voluntary Sector Organisation – These are the organisations which aims at creating social
impact rather then aiming for generating profits. Such organisations are considered as non
profitable organisations working towards social causes in order to enrich and benefit the
society.
Purpose – Voluntary sector organizations are focused on individual, groups, and Community's needs
and conducts programs and initiatives to meet them according with the aid of charities and
government's financial aids. For example – Sport England is a voluntary organisation which aims at
developing better quality sports infrastructure in the country to create better play field for the sports
enthusiasts.
Legal Structure :
1. Trusts – In such business structure there is no specific owner of the business organisation. A
head of operations is appointed by the mutual will of members which is called as “Trustee”.
2. Unincorporated Associations – It refers to voluntary organisations formed by two or more
individuals to meet any religious, social, charitable or educational lawful purpose. It doesn't
include the motive of earning profit.

P2 Explain the size and scope of a range of different types of organisations.
Public Sector Organisation
UK Sports (United Kingdom sports)
 Background – Formed in 1997, UK sports is the government owned sport organisation
which is responsible for making investments in Olympics and other athletic sports and
Paralympic sports events in United Kingdom.
 Size – Currently UK sports comprises of 15 board members, 50 departmental teams and 25
other staff members. Also, collaboration with other state sports federation has aided UK
sports in producing 120 Paralympics athletes for UK.
 Scope – UK sports aims at conducting sports events with the aim of uplifting sports culture
in the country. For this, it participates in bidding of sports events and provides assistance to
the sports and games conducted in the country.
 Product and services – The major focus of UK sports is to conduct world class sports events
by providing strategic funding to sports federations.
 Mission – To conduct Olympics and Paralympic events in united kingdom, and provide
multiple opportunities to boost sports culture in the country.
 Vision – To build efficient and healthy working relationship with sports federation
throughout the country to create competitive sports culture.
 Stakeholders – Along with central public bodies other stakeholders includes players,
sponsors, board members, trainers etc.
 Business Objectives – The main objective of UK sports is to build sports culture especially
emphasising on Olympic and Paralympic events.
Private Sector Organisation
Bannatyne's Health Club
 Background – Bannatyne's health club was founded in 1997 by an Scottish businessman
Duncan Bannatyne. Bannatyne health clubs and spas has current presence around the United
Kingdom.
 Product and services – Company has established multiple health clubs and spas in cities of
UK. Also, each of its gyms and health clubs provides personal physique building coaching
services.
 Size - Currently company has more than 66 gyms and 37 spas at around 62 locations in the

United Kingdom with current membership of 195000 members.
 Scope – The rising health concerns among the youth of the present world has made
Bannatyne's health club a prominent business model for the upcoming era.
 Vision – To bring health is wealth culture among the young generations and bringing
importance towards building physique is the vision of Bannatyne's business model.
 Mission -Being a private sector organisation, Bannatyne health club aims at expanding its
business by merging and acquiring hotel spaces to expand its operations with final aim of
generating higher revenue and profits.
 Business Objectives – Generation of maximum profits, acquiring new markets is the
ultimate goal of Bannatyne.
 Stakeholders – The main stakeholders of the company are the Owner, executive bodies and
investment partners.(Kuchina-Musina, Morris and Steinfeld, 2020)
Voluntary Sector Organisation
Sport England
 Background – Founded in 1996 in the name of English sports council, Sport England is non
departmental public organisation or voluntary organisation.
 Product and services – Sport England deals in two major statutory functions – it works as a
lottery distributor for sport matches on the other hand it protect and develops playing fields
for the respective games being played in UK.
 Size -
 Scope – As an organisation focused on enhancing sports infrastructure in UK, Sport England
is the most rapidly growing brand of providing apex services to sports venues for conducting
events in better possible manners.
 Vision – To enhance, promote and provide new development layout to the sports
infrastructure to the company.
 Mission – Build better sports infrastructure and provide advanced facilities in sports to uplift
the sports culture within the respective states of the country.
 Business Objectives – the main objective of Sports England is to develop sports venues and
leisure venues to attract the youth towards sports and events.
 Stakeholders – Majorly trustees appointed by the central civic bodies, volunteers, and staff
members are the main stakeholders of the company.

P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.
Organisational Functions – There are multiple departments and levels within the company
where set of activities and operations take place for efficient achievement of business goals. Such
activities and operations performed jointly within the organisation sums up to Organisational
functions. There are several functions that takes place within the organisation, few are mentioned
below -
 Marketing – Marketing department performs marketing functions within the organisation.
Teams and marketing individuals conducts market research to identify the most prominent
market to launch new products of the company. Also, designing the roadmap and strategies
to attain competitive advantage in the market is conducted by marketing department of the
company.
 Human Resources – Human resources department performs functions like planning, hiring,
recruiting, training, compensating and retaining the employees of the organisation. This
department makes sure that efficient and required personnels are hired within the workplace
to bring productivity in the organisation.(Williams, 2022)
Organisational Structure – Structure of the organisation comprises of frameworks and set of
rules followed by various departments and level within the organisation to frame productive
workplace leading in achievement of the desired goals in best productive manner. Out of multiple
organisational structure used by companies below mentioned are the most prominent structure
widely used in companies and organisations.
 Hierarchical Structure – This is the most common organisational structure being used from
ages in business world. In such structure there is a chain of authorities issuing commands
from top level to bottom or entry level and a supervisor is assigned at each level to monitor
the performance of the employees. Also, in such structure responsibilities and authorities are
clearly defined to individuals.
 Flat or Horizontal structure – Flat structure is adopted by newly evolving companies to
create collaborative and participative work environment within the organisation. In such
organisational structure flow of communication is smoother as informal communication
methods are adopted to minimise time consuming between tasks. Also, employees can easily
account their tasks and concerns without the need of managers to address on behalf of them.
(Raziq and et. al., 2020)
Organisational functions are interdependent on each other. For instance – efficient performance by
human resource department in hiring and placing required personnels at each department enables

better achievement of tasks and responsibilities at each level. In the same way, better cooperation
with vendors and management by Operation departments helps marketing and sales personnels to
identify and implement the measures to launch the product in appropriate market segment.
On the other hand proper organisational structure is followed by companies according to their
nature of work. UK Sports uses Hierarchical structure at its workplace. At every department tasks
and responsibilities are shared with supervisor who delegates them to the teams according to the
skills and knowledge of the individuals. A formal business environment could be observed as
information is shared levels to levels involving every department in working of company's structure
CONCLUSION
It can be concluded from the above report that different types of organisation have different
objectives and legal structure. Along with this it can also be observed that every company's scope,
objective and vision differs according to their nature of business and final objective. Also,
companies follow a proper organisational structure that proves efficient according to their business
operations. It can also be observed that for commencing efficient business activities, company must
consider multiple external factors that can impact in either ways.

REFERENCES
Baptista, N., Alves, H. and Matos, N., 2020. Public sector organizations and cocreation with
citizens: A literature review on benefits, drivers, and barriers. Journal of Nonprofit &
Public Sector Marketing, 32(3), pp.217-241.
Kuchina-Musina, D., Morris, J.C. and Steinfeld, J., 2020. Drivers and differentiators: a grounded
theory study of procurement in public and private organizations. Journal of Public
Procurement, 20(3), pp.265-285.
Pyper, R., 2021. Public Sector Reform in the UK: Key Developments, Debates and Political
Responses in Challenging Times. In Public value management, governance and reform in
Britain (pp. 45-86). Palgrave Macmillan, Cham.
Raziq and et. al., 2020. Organisational structure and project success: the mediating role of
knowledge sharing. Journal of Information & Knowledge Management, 19(02),
p.2050007.
Sugden, R., 2018. Voluntary organisations and the welfare state. In Privatisation and the welfare
state (pp. 70-89). Routledge.
Williams, P., 2022. Organisational culture: definitions, distinctions and functions. In Handbook of
Research Methods for Organisational Culture (pp. 5-22). Edward Elgar Publishing.