Different Types of Organizations and Their Legal Structure

UNIT 1
BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain different types of organizations with legal structure.................................................3
P2 Explain size and scope of different types of organization......................................................5
TASK 2............................................................................................................................................8
P3Explain relationship between different functions and how they link to organizational
structure........................................................................................................................................8
CONCLUSION..............................................................................................................................11
TASK 3..........................................................................................................................................11
P4 and M3 Identify positive and negative impact of macro environment using pestle analysis
upon business operations...........................................................................................................11
TASK 4..........................................................................................................................................14
P5 and M4 Conduct internal and external analysis of specific organization in relation to
strength and weaknesses............................................................................................................14
P6 Explain how strength and weaknesses are interrelate with macro factors............................15
D2 Critically evaluates the impact of macro and micro factors on business objectives and
decision making.........................................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

TASK 1
INTRODUCTION
Business environment helps in developing customer’s relationship due to which proficiency
within business is to be maintained. Within business environment several stakeholders are
indulged such as competitor, customer, suppliers, employees, government etc. All these are
essential for growth through which number of opportunities is captured that leads higher success.
Within this BBC is taken as public organization, Dyson as private organization, and British Red
Cross society as voluntary organization. This report undertakes several types of business entity
along with their size, scope, legal structure. It also inculcates interrelationship between several
departments that helps in taking decisions for attaining objectives.
P1 Explain different types of organizations with legal structure
A business entity is termed as that process where several people are involved to achieve a
common objective. These organizations are several types that are elaborated below:
Private sector organization- It refers to that type of organisation in which no government
interference is reflected in operations and functions of business entity. It is mainly owned and
regulated by a group of people and an individual person with the purpose of generating profits
according to their scope and size(Mutalimov and et. al., 2020). The best example of Private
Sector Company is Dyson limited that is a leading British organization deals in electronic
appliances like hair dryer, vacuum cleaner, desk fans, LED lamps and many more.
 Purpose- The main purpose of this organisation is to earn high profits by satisfying
customers requirements related to electronic appliances. The main aim is to maximise the
working efficiency within office by selecting experiences and talented candidate to
perform task efficiently.
 Legal structure
o Sole proprietorship- It is owned and regulated by an individual person with the
objective of earning profits. In this all risk and profits are hold by an individual
authority because they are the sole owner of an enterprise.
o Partnership- In this type of structure operations of business are done by two or
more than two people within a partnership agreement. In this partners are bound

in partnership agreement where they are working for earning profits. All partners
sharing profits and loss as per presented in agreement of partnership act. This act
helps in taking the decisions effectively and efficiently for benefits of an
organisation.
o Company- It is reflected in two ways- Public limited company and private
limited company. When the holding of company majorly in the hand of public are
known as public limited company, whereas when authority mainly are in hand of
private shareholders than it is called private limited company(Khajeheian,
Friedrichsen and Mödinger, 2018). In this type of entity separate entity are
provided to their holder that are work under the companies act to run the
operations appropriately for gaining profits. Dyson limited are working under
private limited company to gain profits in dealing electrical appliances.
Public sector organization- It refers to that type of business sector which is hold and controlled
by government to provide services to people of nation. The main aim of this organization is to
work for welfare of citizens not for gaining profits. The best example of this type of organization
is BBC that is a public service broadcaster to citizens of UK.
 Purpose- The key purpose of this sector is to offer benefits to country people by
providing goods and services(Quinlan and et. al., 2019). In this they offer entertainment,
graduate training to businesses for welfare of people.
 Legal structure
o Central government- It refers to that which is several organisations are working
under the control of central authority. They are mainly responsible for collecting
funds to public and use same for their welfare(Halbert and Ingulli, 2020). BBC is
that company which is hold and controlled by central government.
o State government-These types of businesses are working for limited but having
high holding of central authorities in their operations.
o Local government-This type of institutions is owned by local government like
local council and several other corporate parties. They collect funds in the form of
local tax for welfare of people.
Voluntary organization- This is a type of organization that is formed by number of individual
people who voluntary work together to attain objectives related to public welfare. They collect