Business and Business Environment: Types of Organizations and their Purposes

Business and Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................4
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.............................5
M1 Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisation................................................7
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.......................................................................................7
M2 Analyse the advantages and disadvantages of interrelationships between organisational
functions and the impact that can have upon organisational structure........................................9
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples................................................................................9
M3 Apply appropriately the PESTLE model to support a detailed analysis of the macro
environment within an organisation..........................................................................................10
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses..........................................................................................................11
P6 Explain how strengths and weaknesses interrelate with external macro factors.................12
M4 Apply appropriately SWOT/TOWS analysis and justify how they influence decision
making.......................................................................................................................................14
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
The environment in which business is operating consist of internal and external factors both like
employees, needs of customer and expectations, supply and demand, management, government
activities, social trends and economic changes. Various forms of business exist in the
environment depending upon the nature, size and many other factors. It also comprised of certain
trends in business that is emerging as a change in fashion of working. The report below will be
prepared in context to BP PLC which is a multinational oil and gas company of UK and it is a
public limited company listed on London stock exchange(Al and Hussain, 2018). It is vertically
integrated and is present in every area of oil and gas industry. The report will therefore cover the
types of organisation that exist in the business environment and also describing about its size and
scope. The report will also cover the relation between different marketing functions to the
objective of organisation. In-depth details about the positive and negative impacts on the macro
environment by illustrating the same. The report will further cover the deep analysis of internal
and external factors of the BP PLC for examining the strength and weakness associated with it
and along with this report will also provide the inter relation of internal and external factors.
TASK
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures
There exist distinct types of organisation whose purpose vary. Discussing each one in detail-
 Public organisation: These organisations are owned by the government and operates on
the basis of money gained from taxes. This is basically not for profit organisation and
includes schools and hospital to roads and bridges. It provides some services that is
considered as vital for the society(Alsufyani and Gill, 2021). BP PLC itself is a public
organisation .
Purpose- the main aim of BP PLC is to prevent the concentration of control related to economy
and growth with respect to private monopolies. Thus these kind of enterprises also aims to
provide public at large.
 Private organisation- This is run by the individual or the companies rather than any
government entity. This can be sole proprietorship, business owned by two or more

private individuals, small and mid size enterprises and also the corporations and
multinationals.
Purpose- These enterprises plays a major role in development of a country. One of the report
suggests that about 60% of the gross national product in country comes from private sector. The
main objective is to earn profits. The industry also increases capital formation within the country.
 Voluntary sector- It is also referred as third sector, civil society or not for profit sector.
These organisation have some differentiating feature that distinct it from private sector.
In these enterprises, there is no role of local and national government(Anton, 2019).
Charities form of organisation covers the major area in the voluntary sector. There exist
around 165000 charities in UK.
Purpose- The primary purpose of voluntary sector is to create an era of social welfare rather than
thinking about making profits. The way in which voluntary sector achieve their purpose is by
performing wide range of activities and advising the groups related to certain matters. The
existence of these kind of organisation is for some specific purpose like the fulfilment of social
purpose.
Legal structure of organisation- The legal structure of business is the basis for any business
start up. Neglecting this can expose an organisation to some legal formalities in context to BP
PLC may have to pay additional amount and also may bring on some personal liability.
Legal structure of Private sector- Sole traders, partnerships and companies.
Legal structure of voluntary sector- it is in the form of trust that is governed by trust deed that
outlines the goals of trust and involves the name of trustees and about the administration of
same.
P2 Explain the size and scope of a range of different types of organisations.
It has been observed that in an economy not all organisation operate with the aim of making
profit but when business aim so, it is not required for them to operate on the large scale than
includes huge workforce(Antonacopoulou and Georgiadou, 2021). These organisation can be
micro, small, medium or large. The points that differentiates these businesses are the employees
working, number of owners, market share they have and also its legal status.
 MICRO ENTERPRISE- they are the small businesses which sells goods or services to
local area or local market. They are mostly financed by micro credit.