Types and Purpose of Organisations with Legal Structure

This document provides an overview of the types and purpose of organisations with their legal structure. It explains the size and scope of different types of organisations and how they link to business objectives and offerings. It also explores the interrelationship between organisational functions and their impact. The document analyses the complexities of different business structures and interrelationships. Additionally, it discusses the positive and negative aspects of the macro environment on business operations.

UNIT 1
BUSINESS AND
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Explain types and purpose of organisations with their legal structure..................................1
P2 Explain size and scope of range of different types of organisation.......................................3
M1 Analyse how structure, size and scope of different organisations link to business
objectives and their offerings......................................................................................................4
LO2..................................................................................................................................................5
P3 Explain relationship between different organisational functions and to objectives and
structure.......................................................................................................................................5
M2 Analyse advantage and disadvantage of interrelationship between organisational functions
and their impact...........................................................................................................................6
D1 Provide critical analysis of complexities of different types of business structure and
interrelationships of organisational functions.............................................................................7
LO3..................................................................................................................................................7
P4 Positive and negative aspects of macro environment upon business operations...................7
M3 Apply pestle model to support detailed analysis within organisation..................................8
LO4..................................................................................................................................................8
P5 Internal and external analysis of specific organisations to identify strength and weaknesses
.....................................................................................................................................................8
P6: Define how strengths and weaknesses interrelate with macro external environment..........9
M4 Apply SWOT analysis to influence decision making.........................................................10
D2 Critically evaluate impact both macro and micro environment on business objectives.....11
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Business environment refers to all the factors that are not controllable to the organisation.
It includes investors, customers suppliers etc. that may affect the proficiency of business. There
are various types of business enterprise like private, voluntary, public sector that all need to be
active towards the changes so that dealing with those changes is easy. In this Dyson is a private
organisation that is British largest technology company established in 1991 in UK. The company
deals in all types of electronic appliances like vacuum cleaner, air dyer etc. This project based on
different types of business organisations with their legal structure in which their size, scope and
purpose also involved. In this different organisational functions play their essential role to chives
the objectives. In this interrelation between extrinsic and intrinsic factors also discussed with
their strength and weaknesses(Khan and Quaddus, 2015).
LO1
P1 Explain types and purpose of organisations with their legal structure
Organisation refers to the form of association that is develops by human beings for
attaining some purposes like earning profits and benefits of society(Deasy and et. al., 2015).
Some kinds of organisations can be shown below:
Public sector organisation- It refers to those organisations that is owned and funded by
government on behalf the public. This business are not mainly working for earning profits but
focusing on providing welfare to the society people. The example is BBC that is working for
broadcasting news , entertainment channels in the world.
Purpose: The purpose is to serve the services for welfare of general public by effectively
using resources.
Legal structure
 Central- This type of structure arrange funds by taking income tax from general public.
BBC is central government owned public sector company
 State- They can use their power in some specific region and follow the orders of central
government.
 Local- This type can collect the financial resources from society changes that denotes to
council tax.

Private sector Organisation- It refers to those enterprises which is owned and controlled by an
private individual or group of persons. Dyson is the private company that is work under this
sector in various countries like UK, US etc.
Purpose: The main aim of this organisation is to gain high profits by dealing in
competitive business industry that leads them to improvised their resources and
effectiveness(Franklin and Marshall, 2019).
Legal structure
 Sole proprietorship- It refers to those in which a person can handle all their activities
and collect goods and services for gaining profits. In this licence is not excluded some
exception cases like taxi driving etc.
 Partnership- It is an association that involves more than one person. The obligation
related to legality is like as sole business. In this partners are bound to indulge in
agreement that includes information related sharing proportion of profits and liabilities.
 Company- This legal structure is bound to register under the companies act to become
limited. In this profits are related to company not shareholders as they get the profits in
the form of dividend. Dyson company is a private company that is governed under the
companies law.
Voluntary organisation- It includes those people who are willingly enter into the organisation
without earning profits but to attain the objectives related to public welfare. In this Oxfam is one
of the charitable organisation that works for removing poverty in the society(Eling and Schaper,
2017).
Purpose: The objective of this organisation is working for social welfare that does not
included development but also the growth of the people ion society as a whole.
Legal structure
 Trust- This legal structure is not a legal entity in which no agreement is required in their
own name. In this funds can be arranged by trustees and also handle by them. Oxfam is
the organisation that is based on this legal structure.
 Unincorporated Association- In this aspect there is no limitation on liability in this
members enters into charity in which they personally liable.

P2 Explain size and scope of range of different types of organisation
British Broadcasting corporation (BBC)- It is one of the public owned enterprises that is
prominent broadcaster in UK and world. As BBC is the largest firm that is funded by the license
fee that is paid by the household of UK(Gebauer, Haldimann and Saul, 2017).
 Background- BBC is the public enterprise that is established in 1922 and that is funded
by UK people who have televisions in their houses. It offers several channels including
radio broadcasting.
 Size- Number of employees work under BBC is around 20000 in all over the world.
 Product and services offered- BBC offers the nine television channels such as BBC
one, BBC i-player, BBC online, BBC Two etc.
 Scope- BBC scope is to increase the market by developing their set up in India, China
etc. as there people more focus on using technology and entertainment.
 Vision- BBC vision is to become a famous enterprise that offers creative services and
goods to their customers in world.
 Mission- The mission of BBC is to entertain people lives by entertaining them with their
broadcasting.
 Business objectives- The main objective of BBC is to offer the channels to public that
have some knowledge and helps in their educations by using BBC news and also provide
entertainment channels so that people spend their leisure time effectively.
Dyson- It is the privately owned company that is founded in 1991 who designs and
manufacturing the electrical household appliances.
 Background- Dyson is one of the largest British technology company that deals in
manufacturing and designing the varieties of electrical appliances. It is developed by
James Dyson in England, UK.
 Size- Dyson size is very larges as in this approx 12000 employees are working in their
organisation(Moroni, Arruda and Araujo, 2015).
 Scope- Dyson can deals in all over the world like UK, US, India etc. so that scope is very
wide.
 Products and services- Products that was offered by Dyson is Vacuum cleaners, bled
less fans, Air purifiers, lights etc.

 Vision- The vision of Dyson is to become a world largest unique technology use
company that fulfils all the requirements of the users.
 Mission- The major mission is to find everyday solutions to the people so that there life
is become easier.
 Objectives- The main objectives of Dyson is to develops the machineries and shipping
aspects that helps in eliminating the wastages.
OXFAM- It is one of the famous non profit organisation that functions extensively by removing
the poverty and natural disasters in the country.
 Background- Oxfam is one the voluntary organisation that has global presence who
works to end the poverty and injustice within country. It perform the varieties of
functions like offering disasters relief, poverty alleviation etc.
 Product and services- Oxfam offers the several services like free education, fair trade,
focus on health, poverty of people and their livelihoods.
 Size- Within Oxfam there are around 1000 of local partners are involves who works with
the more than 50000 volunteers in all over the world.
 Scope- In world population is increasing and poverty enhanced due to this business have
wide scope in uplifting the society people condition.
 Vision- Oxfam vision is to made the world without poverty where people living
standards is good and all individual treated equally. They believe in creating the fair
universe that is free from poverty.
 Mission- The mission is to become a famous charitable organisation for the people so
that high class people funded it for the welfare.
 Business objectives- The main objectives is to offers the best solutions to the people
poverty, disasters problems. And focus on securing the future of the people in the world.
M1 Analyse how structure, size and scope of different organisations link to business objectives
and their offerings
From above discussion it is analysed that the scope and size of the organisation is based
on their legal structure and it can be developed as per the continuous improvement and
technological advancements. This helps the businesses to attain their objectives as per their size,
scope. In this company having large base of customers than they focus on offerings the best

quality to their customers in all over the world due to this there objectives is to be fulfilled and
enterprises is sustain for a longer period of time(Lu and et. al., 2015).
LO2
P3 Explain relationship between different organisational functions and to objectives and
structure
Departments within organisation are highly interrelated with each other and the success
of their business also depend on this. Dyson is largest British technological company that works
with the motive of generating profits and it is only possible with the effective coordination
between the several departments of the company(Khajeheian, Friedrichsen and Mödinger, 2018).
Some interrelations between department within Dyson can elaborated below:
 Marketing and HR department- In case of Dyson, marketing department is effectively
interrelated with HR department because HR department can do the hiring function and
it is based on the marketing promotional activity as marketer can focus on marketing the
vacancy so that interested candidate can apply for the job and HR department get the
skilled employee for their vacant position. This helps in attaining the objectives on the
specified period of time(Rialp-Criado and Komochkova, 2017).
 Purchasing and R&D department- In this market expansion is based on the marketing
research and quantity of purchase the stock is based on the market expansion. For
enhancing the market share by Dyson they mainly emphasis on the research team.
Organisational structure
 Hierarchical organisational structure- It refers to that type of organisation structure
where authority can be divided according to the hierarchy that move from upward to
downward. In this goals can be achieved effectively because the work can be done in a
proper hierarchy.
 Divisional organisational structure- It refers to designing the organisation in such a
way that spilt the departments into small groups. This type of structure organised
functions as per based on market, geographical region, products etc. in case of Dyson this
structure can be adopted that helps in clearly understand the task by employees so that
goals can be achieved on specified period of time(Gregory, Ngo and Karavdic, 2019).

Illustration 1: Dyson organisation structure
M2 Analyse advantage and disadvantage of interrelationship between organisational functions
and their impact
It is very essential that all departments are working interrelatedly because it shows the
strength of the company by reflecting the profitable results on specified period of time. It also
helps in maintains the effective understanding between the team members that will develops
market growth of firm. But it may impact negatively also as it create baisedness in the employees
due to this conflicts may arise and goals cannot be attained on time. This also impact on
proficiency of organisation(Chen and Wu, 2015).

D1 Provide critical analysis of complexities of different types of business structure and
interrelationships of organisational functions
It is critical analysed that there are major complexities are present in different structure of
organisation such as poor performance, conflicts, misunderstanding etc. sue to this results can be
attained on time. And maintaining the effective interrelationship between department is also very
complex as in this lots of task are included and it is very difficult to understand which one is
important. For this every employees has a clear in their mins their roles and responsibilities. So
that objectives can be attained on time and company receive higher profits.
LO3
P4 Positive and negative aspects of macro environment upon business operations
Political- As Dyson is majorly influenced by the political factor that affect the operations of the
company that involves tax rates, political stability etc(Hakanen, Helander and Valkokari, 2017).
Positive- Because of stable political condition Dyson can enjoy the low cost in changing
policies and regulations.
Negative- High import duty charged by the government affect the import of goods from
China and other countries due to this profits of the company will reduced.
Economical- Dyson can mainly focused on the economic factor of the country because it is
related to the purchasing action of public.
Positive- As the growth of the UK is very good due to this purchasing power of buyers is
also effective that helps in gaining higher profits.
Negative- Due to Brexit inflation occur in many European countries this will affect the
buying of customers.
Social- This factor related to the changes occur in the customers demands and their behaviour
affect the profitability of Dyson.
Positive- Homogeneous demands of the customers in the country affect the profits of the
Dyson in positive way so that they can sustain for longer period of time.
Negative- Because of adopting high end technology by Dyson customers cannot
understand it and it will affect their operating cost and profits negatively.
Technological- This aspect related to advancement in technology . In case of Dyson it will
impact in two ways i.e. positive and negative.

Positive- Using high technology in their products by Dyson makes the life of the people
easier.
Negative- Using advanced technology includes more cost that will affect profits of the
organisation.
Legal- This factor majorly emphasis on the laws that was imposed by government for benefits of
employees and consumers. In case of Dyson implications can be shown.
Positive- As Dyson can follow all the rules and regulations related to saving the interest
of employees that helps in achieving their goals effective;y.
Negative- Policies and laws related to import and export are not effective for Dyson due
to this they may face the issue of reduction in profitability(Kessler and Buck, 2017).
Environmental- This factor reflects the laws and codes of conducts related to saving the
environment and this factor impact Dyson in positive and negative ways.
Positive- In this Dyson can enjoy high sustainability as they create social awareness in
customers regarding the use of products without harming environment.
Negative- Using laws related to environment protection included more cost that will
affect the Dyson profits and operating cost.
M3 Apply pestle model to support detailed analysis within organisation
In order to examine the forces prevailing in external factor PESTLE analysis is best
source. This analysis helps the business enterprise to examine their dynamic environment so that
goals can be attained on time with the conditions of the market. Company also frame long term
goals by examine the pestle analysis due to this set target can be achieved effectively(Saleh and
Watson, 2017).
LO4
P5 Internal and external analysis of specific organisations to identify strength and weaknesses
Swot analysis of Dyson
Strength
 Higher investment on research and
development.
 Innovative designs and high quality of
products.
Weakness
 higher prices as compare to
competitors.
 Lawsuits and controversies with brands
such as- Amway, Samsung, Vax etc.

 Huge workforce of skilled and
motivated employees.
Opportunity
 Dyson has opportunity to expand its
business internationally.
 Online presence through e-commerce
companies is also an opportunity. Opportunity of reaching customers
experiences through products
modification.
Threats
 fluctuation in UK markets creates threat
for firm.
 Delay in launching of new products.
 Availability of cheaper products(Evans
and et. al., 2017).
Swot analysis of BBC
Strength
 Largest broadcaster in the world with
23000 employees.
 Strong brand portfolio over the past
years. Technological advancement such as-
software, graphics and web design.
Weakness
 Raise controversies due to world
issues.
 News covered gives bias perspective
that doesn't match meet some audience.
Opportunity
 Popularity due to entering in fashion &
entertainment, kids channels etc.
 Joint partnership with other satellite
channels rising popularity. BBC has opportunity to try to be
unbiased.
Threat
 Increasing competition from channels
such like CNN creating threat.
 Lack of skilled workforce in certain
countries(Spieth and Schneider, 2016).
P6: Define how strengths and weaknesses interrelate with macro external environment.
Pestle analysis of Dyson
Factors Strength Weakness

Political Easy implementation of UK laws
impacts business of Dyson in
positive ways. For instance no
need to spend huge amount &
time on legal formalities.
Difficulty in rising funds and getting
loan in some countries due to high rates
of interest impacts Dyson in negative
ways.
Economical Growth rate of UK impacts the
business of Dyson in positive
ways. For instance increasing
sales of firm(Liu and et. al.,
2017).
High inflation rates of certain countries
reduces buying power of people that
negatively affects the sales and profits
of respective company.
Social & cultural Countries where individual's
lifestyle is matched with Dyson
will increases the sale.
In international market consumers are
not aware about technologies used by
Dyson impacts firm in negative way.
Technological High use of latest technologies of
respective firm creates
opportunity to grow in
technology advanced countries
like- Japan, UK.
Countries who has less engaged in high
technology negatively impacts position
of Dyson(Hillary, 2017).
Environmental Companies that are environment
focused affects business in
positive ways due to its
investment in ecological projects.
It is not possible for company to follow
each and every environmental policy
for different countries which negatively
impacts firm.
Legal Legal policies such as- health &
safety laws, consumer protection
laws of UK has positive impacts
on Dyson.
Import-export policies of certain
countries are not in favour of outsider
companies, affects expansion of
respective firm.
M4 Apply SWOT analysis to influence decision making
Swot analysis of Dyson shows high brand image, proper research and developments
techniques which helps in effective launching of new product through critical analysis. Company

has opportunity to explore and expend business more. In terms of BBC swot analysis represents
that company should focus on skilled and motivated workforce and using unbiased contents in
news to eliminating chances of spreading negative image(Reeves, Levin and Ueda, 2016).
D2 Critically evaluate impact both macro and micro environment on business objectives
The pestle analysis of Dyson shows technological advancement, environmental, health &
safety conditions, investment on environmental healthy projects of firm that affects business
decision-making in positive and negative ways. For instance high growth rate of a country enable
people to purchase more this will enhancing the sales and profits of the firm. Thus, all the factors
of pestle analysis should be considered before taking decisions regarding expansion or launching
of a new product.
CONCLUSION
From the above explanation it is concluded that business environment involves all types
of organisations that follow the legal compliances that prevail in the operating firm. In this
proper integration between company department helps in achieving the goals. It inculcates that
their external factors impact business in positive and negative way on their operations. In this
Dyson can follow divisional structure that helps in smooth functions of the departments that
gives profitable results in marketplace.

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