Various Types of Organizations and Their Purposes in Business Environment

Business and the Business
Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Various types of organisation and their purposes...................................................................1
P2 Size and scope of different types of organisations................................................................3
LO2..................................................................................................................................................5
P3 Inter-relation between organisational function and association with organizational structure
.....................................................................................................................................................5
LO3..................................................................................................................................................6
P4.Positive and Negative impact of PESTLE on McDonald's's..................................................6
LO4................................................................................................................................................10
P5.Strengths and Weakness of McDonald's's............................................................................10
P4.Strengths and Weakness inter-related external macro factors..............................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment is the mixture of various factors whether internal or external
that affects the functioning of company operating under dynamic environment. Analysing the
business environment is of utmost importance for the organizations to survive in this cut-
throat competition and gaining competitive advantage. This report provides a brief about the
different types of organizations and their varied purposes, Size and other attributes those
organisations, Inter-relationship between the different organizational functions and their
linkage with organizational structure, macro environment's positive and negative impact,
internal & external assessment of organizations and the association of strength and weakness
with external macro factors.
LO1
P1 Various types of organisation and their purposes.
Public company
A public company is a company whose securities and stocks are in the possession of
general public and are traded by them.
Example National health service (NHS) is a healthcare organization in England under the
capitalization of government established mainly for the welfare of the English residents (Akter
and et.al., 2016).
The main purpose of this organization is to serve the wide range of patients without
charging any cost for the services. It offers a comprehensive array of services and respond to
varied needs of the mass population. The major aim of NHS encompasses the continuous
effort to enhance the quality and reliability of their services and reduce the errors.
The legal structure of NHS is governed by National health service act 2006. NHS is
under the control of government of UK through department of Health and social care.
Funding for NHS is governed by department of health. Various laws of parliament and the
government affects the NHS like EU law. Procurement within the NHS comes under public
contracts regulations 2006 (Sodeyfi, 2016). It supplies health careservices to the needed
person and take care of their health conditions.
Private company
Unlike public company, a private company is a corporation whose securities and share
are not dispersed among the public for subscriptions. These are exchanged privately.
1

Example McDonald's is a privately owned as the super market chain for the fast food industry
operating in UK. It was founded and became one of the leading grocery retailer around the
world. The company is having the royalty over the business having the feature of chicken
products, breakfast items soft drinks with milkshakes, wrap and deserts which is response of
changing the taste of consumers.
McDonald's believes in being customer oriented and work toward strengthen their core
values and purpose which emphasises on providing good food at the reasonable prices. Its
main objective is to displaying the transparency to their suppliers and stakeholders. Besides
this, It aims to become the most trusted market leader in the eyes feature of chicken products,
breakfast items soft drinks with milkshakes, wrap and deserts which is response of changing
the taste of consumers. of consumers.
Comprising a 15.9% share in the retail sector, the ownership of McDonald's has a
complex structure where it is a part of major holding and assets companies Being in the
merger with one of the well-known companies would provide them with the overall 31.4%
market share.
Voluntary organization
A voluntary organization is an association comprising the group of individuals who
are devoted for the welfare of human beings and society as a whole. It is not regulated by any
state or external force but rather their own members.
Example Oxfam is one of the well known NGO and charitable non profit organisation led by
some social activists and academics. It was established in 1942 in England and now has
flourished with its widespread operations(Gavurova and et.al., 2017).
Oxfam work towards addressing the issues of poverty and injustice among the
individuals. It provides a helping hand to the vulnerable females and men with an aim to end
the race of injustice and poverty. Its main purpose is to alleviate the powerlessness and help
the underdeveloped areas facing the survival problems.
Oxfam is the international alliance of 20 organizations operating in 94 countries &
working in collaboration to mitigate the global poverty. Its major donors are UN and EU
government, fundraising sops and corporations. The board of trustees are elected by the
members itself who are involved in raising various campaigns and fundraising.
2