Different Types of Business Organizations and Their Goals and Legal Structures

Business and
business
environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY .................................................................................................................................3
P1 Explanation of different organisation from public private and voluntary sector with their
goal and legal structure...........................................................................................................3
P2 Explantation of the size and scope of different types of business organisations..............7
M1 Analysis of structure, size and scope of different organisation with link to business
objectives and products ........................................................................................................9
TASK 2............................................................................................................................................9
P3 Explantation of relationship between various business functions and their connection to
organisational functions .........................................................................................................9
M2 Analysis of advantage and disadvantages of interrelationship between organisational
functions and their effect on organisational structure .........................................................12
D1 Critical analysis of complexities of business structures and relation between organisational
functions ..............................................................................................................................12
TASK 3 ........................................................................................................................................12
P4 Determination of the positive and negative effect the external environment has upon daily
business activities.................................................................................................................12
M3 Application of PESTEL model with detailed analysis of the external environment of the
company ..............................................................................................................................15
TASK 4 .........................................................................................................................................16
P5 Internal and external analysis of business firms to identify their strengths and
shortcomings ........................................................................................................................16
P6 Interrelation between strengths and shortcomings with external environment factors ..17
D2 Critical evaluation of the impact of external and internal factors which impact business
goals and the decision making..............................................................................................18
CONCLUSION ............................................................................................................................19
REFRENCES ................................................................................................................................20
Books and Journals...............................................................................................................20

INTRODUCTION
The present report is is based on three UK based business firms from the public, private
and country sector. National Health Service is a UK based firm which operates in the public
sector which is selected fro this report. The British organisation selected fro the private sector is
leading member of the UK retail industry Morrisons. The voluntary sector organisation selector
for this report is Cancer Research UK which is a leading cancer charity firm. Description about
the objective, scope and legal structure of the selected organisation from private, public and
voluntary sector of the company is given in this report. Linkage between product offered by
different types of organisations and their scope size and structure is also mentioned in this report.
Interrelationships between various organisational functions along with complexities of various
business organisations is given in this report. Relationship between various organisational
functions and their linkage to goals and structure adopted by the company is given in this report.
Analysis of merit and demerits of interrelationship between organisational function id given in
this report along with the effect organisational functions have on organisational structures.
Positive and negative effects of external environment upon business operations is also given in
this report along with detailed PESTEL analysis of a particular organisation. Internal and
external analysis of an organisation is provided in this report along with ways in which strengths
and weakness of an organisation interrelate with external factors. SWOT analysis is conducted
on an organisation with description about hoe it influences decision making process.
MAIN BODY
P1 Explanation of different organisation from public private and voluntary sector with their goal
and legal structure
Voluntary, Public and Private sectors consists of different type of organisation which
have different legislative structure and aim. Different organisations with their legislative
structure and aim are provided below:
Private company
A private business enterprise is owned and controlled by small number of shareholders,
board members of the firm or another enterprise which is not under the control of the
government (Beatty, Samuelson and Abril, 2018). The stock of the company is under the
ownership of small group of individuals or held privately by a single individual.

Morrisons which is a leading member of the UK retail industry is an example of Private
company. The firm is headquartered in Bradford, West Yorkshire, England and was founded in
the year 1899. the firm has more than 494 stores located at prime locations across UK. The net
income of the company in the year 2020 was £513 million and the enterprise has employed a
huge workforce 110,000 workers in order to conduct their daily business activities effectively.
Objective: The main objective of a private company is to maximise their profitability
and maintain transparency in various business practices in order provide maximum satisfaction
to their consumers. Legal structures of private business organisations consists of corporation,
sole proprietorship and partnership.
Corporation : A corporation is defined as a large company or group of organisations
which are the part of private sector and act as an individual entitle and recognised as one under
the law. Corporations can perform various legal functions which includes filing taxes, owning
property and can be held under legal liability under the law (Boasson and Wettestad, 2016).
Sole proprietorship: A sole proprietorship is defined as a privately held business firm
which does not have separate legal existence from it's owners. The company is started under a
trade name which is selected by the single owner of the firm. This type of privately held firm has
high popularity due to the ease of construction and low amount of legal paperwork for setting up
the business. The owner of the firm is personally liable for various business activities such as
delay in payments.
Partnership: A partnership firm by definition has two or more than two individuals who
are considered the owner of the business organisation. The term partnership defines relationship
between two or more individuals which conduct business activities with a shared view of
generating profits. Partners in a business suffer losses together and divide profits earned through
the company. Partners of a business firm share certain responsibilities such as payment of
equipment and machinery and each partner is required to pay taxes on their share of profits.
Public company
This type of business organisations are part of the public sector and are under the
ownership of the government authorities of that area. A public company is tasked with providing
goods and services to the citizens of the country at certain price which is usually low in
comparison to private business organisation (Cheah, Amran and Yahya, 2019). Every business
activity related to this type of organisation is controlled by the government such as recruitment

of employees and price of the product or service offerer by the company. The main source of
financial investment received by public firms is money collected through taxes which is
provided to the company by the government.
National Health services is a UK based public organisation which is owned and
controlled by the British government. NHS England , NHS Scotland and NHS Wales are three
part of the system which makes up the NHS organisation. NHS is an common term which is
used to refer to publicly founded healthcare systems of the United Kingdom. NHS has been
funded by the British government through taxes since the year 1948.
Objective: The main aim of public sector organisations is to provide high quality
products or services to the consumers at a low price and serve public good. Public organisations
are constructed by the government for accomplishment of several other objectives which include
creation of employment opportunities, acceleration of economic development of the country and
elimination of income inequality present in the region (Ebrahimi and Barati, 2018). The legal
structure of public firms consists of three structures which are central government, state
government and local authorities.
Central Government
Public organisation which are operated by central government of a nations are included
in this legal structure. They have to obey the instructions of the central government and conduct
various business operations on the basis of supervision from the government authority which are
elected at the central government.
State Government
This legal structure is applicable to business firms which are controlled by state
government and their ownership is given to state government. These type of organisation have to
follow the rules and regulations off the state in which they operate and they are not allowed to
exercise control in regions which are not a part of their state territory.
Regional government authorities
The public firm included in this legal structure is under the ownership of a regional
government authority and have to take orders from that government body (Eling and Schaper,
2017). The main aim of this government body is welfare of the citizens residing in the particular
region which is under the governance of regional government authority.
Voluntary Company

This kind of business firms are run by individuals who are not paid for running the
company and voluntary conducting the task of operating various business activities. These
organisations conduct business activities for benefit of a social group or accomplishment of a
social cause. Voluntary organisations are autonomous and non statutory.
An example of this type of organisation is Cancer Research UK. This voluntary
organisation is UK based research and cancer awareness charity which was formed in the year
2002 after the merger of Imperial cancer research fund and the cancer research campaign.
Cancer Research UK conduct research on various types of Cancer with the aim of finding cure
of this disease. The research at the respective firm is completed by their staff and grant funded
researchers. Cancer research UK conducts awareness campaigns about cancer which increases
public knowledge about the diseases. In addition to this the aim of such public awareness
campaign is to affect public policy for development of research in field of cancer and benefit of
cancer patients.
Objective: The main aim of such type of organisation is public welfare and improvement
of society for the benefit of individuals which are marginalised. The company does not aim to
earn high profitability from their daily business activities but focuses on societal welfare. This
type of company gains financial resources from charity from individuals or groups which share
objectives with the company and help the accomplish such objectives (Galati and et. al., 2016)
(Halbert, and Ingulli, 2020). The legal structure of this type of organisation consists of trusts
and unincorporated association
Trust
This legal structure of voluntary organisation is an irrevocable trust establishes for
accomplishing the objective of charity. A trust is constructed with the objective of completing
various charitable goals enjoys various levels of benefits from paying taxes. A trust deed which
is an agreement formed between various members of the trust need to be prepared which outlines
duties of members for the construction of a trust.
Unincorporated Association
This type of voluntary organisation is build when two individuals who want to conduct
business activities collectively but do not aim to formulate a structured business firm (Hamilton
and Webster, 2018). Such individuals construct an unincorporated association which does not
require much legal paperwork for formation.