Business Environment: Types of Organizations and Functions

This report provides a comprehensive overview of different types of organizations, including public, private, and voluntary entities, and their respective legal structures. It explores the purpose and objectives of each type, using examples like the BBC, Hilton Hotel, and Wellcome Trust to illustrate their size, scope, and market positions. The report further analyzes the relationship between organizational functions, such as human resource management, marketing, production, finance, and research and development, and how these functions are linked to the overall objectives and structure of a firm. The analysis highlights the importance of effective communication and coordination between departments, especially within a flat organizational structure, to achieve business goals and maintain a competitive edge. The report also includes a comparative analysis of the three organizations based on their background, products/services, objectives, type of firm, scope, market size, and vision.

BUSINESS & BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P 1 explain the different types of the organisation and their purpose and their legal structure.. 1
P 2 Size and scope of various types of organisation: .................................................................3
LO 2.................................................................................................................................................5
P 3 Relationship between organisational functions and there link to objectives and structure of
the firm........................................................................................................................................5
CONCLUSION................................................................................................................................7

INTRODUCTION
Business environment is the surroundings on an organisation which affect the business internally
and externally the factors which affect the business are employees, customers, supply and
demand, owner and society (Prajogo, 2016). Business environment helps to determine the
business opportunities and useful resources. It assist to planing for growth and profitability of the
business. This report will includes the different types of the organisation and their purpose and
their legal structure where it will mainly focus on the public, private and voluntary organisation.
This study will also highlight the Relationship between organisational functions and there link to
objectives and structure of the firm.
LO 1
P 1 explain the different types of the organisation and their purpose and their legal structure.
Types of the organisation:- business firms are mainly divided in the three types of the
organisation which are as follows-
1. Public companies
2. Private companies
3. Voluntary companies
These organisation are works for own goals and objectives which are pre-planned and try to be
achieve those objectives.
Public limited company:- a company which is registered under the companies act 1980, which
the minimum capital required and the shares offers to the public for the sale. PLCs are also called
the public held companies.
Formation of PLCs:- originally the PLCs are also formed like the other companies. Where it
requires two of more people to form it and fill the article of association also describe the purpose,
capital and memberships (Jaakkola and et.al., 2016). It gives the liability to its shareholder to the
lesser extent. It requires minimum 50000 pounds authorise capital to formation as the PLC and it
can sell its share to the public for raising funds.
Purpose of the PLC:- the main objective of the PLC is to maximisation of the profits with the
welfare of the public. Where it try to expand the business with the public satisfactions. It also
aim to make the brand image in the market.
Example:- British Broadcasting company is a example of the PLC which is formed on the 18
October 1922 as a public sector company, and headquarter is situated in London.
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Private companies:- it refers to the any person, partnership firm, company or association which
is not public body and works for the profits is called the private organisation. This organisation
are generally works for the profit making and growth in market. A private organisation is a non
federal body which operates for the profits (Esangbedo and Che, 2016). This companies are held
by the private owners. This may issue the stocks and share but their shares do not offers for the
general public.
Formation of the private company:- According to the companies act 2006 “in the
incorporation of the company in the UK their should be a director must be appointed which age
is above the 16 years and have a office in the UK. Also it must be fulfil the conditions of the
private limited company. And have minimum 2 members and maximum 200 members.
Purpose of the private limited companies:-
Profit maximisation- prime objectives of the private companies is profit maximisation. This is
the area where public and private firms can be differentiate. The company are desire to maximise
the profits of the shareholder who invested in the company.
Transparency in reporting- transparency means that the open up the all records and financial
annual reports. This also an objective of the private firms that it should transparent in the
financial and annual reports.
Example:- Hotel Hilton Is the example of the private limited company which established in the
UK and many more countries
Voluntary companies:- this are the companies which are generally comprised with the purpose
of the enrich the society benefits often without the purpose of the making the profit. With the
little or the no government intervention (Hillary, 2017). It is also known as the civic sector and
community sector.
Purpose of voluntary organisation:- the main purpose of the voluntary organisation is to provide
the welfare to the society and benefits to the society. The voluntary firms are invest back into the
community and the organisation so that it can give the something extra to the society.
Example:- Welcome trust is the example of the voluntary firm which is a research based
organisation. The firm deals with the bio medical and improve the health of human and animals.
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P 2 Size and scope of various types of organisation:
There are three types of organisation which are Public firms, Private company and
Voluntary organisations. Following are the table of difference in which there is a discussion on
various size and scopes of the firms:
Basis BBC HILTON HOTEL WELLCOME
TRUST
Background BBC is the public services
broadcaster. It is the world's
oldest broadcasting
company. It is the statutory
corporation. BBC's
headquarter is in
Westminster, London. BBC
is founded by John Reith in
18 October 1922 (Doyle,
McEachern and
MacGregor, 2015). It
comes under the mass
media industry.
Hotel Hilton is one of the
known multinational
hospitality organisation.
Which deals and manages
huge portfolio of Hotels.
Its headquarter is in
Virginia, US. This hotel is
owned by the Conrad
Hilton and established in
31 May, 1919. it is the
Hotel with 923,110 rooms
in 113 countries.
Wellcome trust is the
research based
organisation in United
Kingdom. This firm is
deals with the bio
medical research to
improves the human
and animal's health.
This company is
founded by Sir Henry
Wellcome in 1936. Its
headquarter is in
London.
Products and
services
This firm deals with the
Broadcasting, radio and
web portals and services
like Television, online etc.
Hotel Hilton deals with
the services of Hotels and
Resorts.
Wellcome trust deals
with the
pharmaceutical
products.
Objective Main goal of the firm is to
the potential generation of
revenues via commercial
exploitations
Hotel have a mission to
became the most
hospitable firm in the
world. It has two aspects
one is hospitality ODF the
hotel and other is its
positive impact on the
Wellcome trust have
an mission or an
objective to improves
the health of animals
as well as human
beings. They have goal
to achieve global
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customers. expansion with the
drug resistance
infection.
Type of firm BBC is the public
organisation.
Hilton Hotel is the private
organisation.
Welcome Trust is a
Voluntary firm.
Scope British Broadcasting
Company has a large scope
to grow more and more in
international market. It
provides the global news to
in the worldwide.
Hilton Hotel has very
broader scope to expand
there firm in the
international market
(Kolk, 2016). Through
effective services they
became on of the most
leading Hotel in the
worldwide.
Market scope for
Welcome trust to
expand in international
market is high. By
providing effective
quality of human and
animal precautions
they can expand their
business in
international market.
Market size Revenue: The revenue
generation of the company
in a year is $4.954 billion in
the 2016-17.
Employees: there are
20,916 employees are
working under this firm.
Market size: It serves in
worldwide.
Vision: Firm having a
vision to continuing to lead
in the development of
newer broadcasting system
with an IP ans storytelling
at its core.
Revenues: Its revenue in
2018 is above $8.90
billion.
Employees: There are
169,000 workers who
works in the organisation.
Market size: this hotel
runs in the 113 countries
in world.
Vision: The organisation
has a vision to fulfils the
world with their warmth
of hospitality by
providing the better
experiences.
Revenues: It has $e.80
billion revenue in
2017.
Employees: There are
2,057 workers are
working under this
firm.
Market size:
Welcome trust are
working in the UK and
overseas.
Vision: The firm have
a vision to provides
the qualitative
medicines and
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conducts effective
researches for humans
and animal health.
LO 2
P 3 Relationship between organisational functions and there link to objectives and structure of
the firm
Hilton hotel is having flat organisation structure that is there are few levels of
management and there employees are less supervised by the managers so that they are able to
make there own decision. This helps the employees to be more responsible towards there duties
and communication between the departments is also effective (Laudon and Traver, 2016). They
all work in coordination and it makes there work easy going by taking appropriate decision on
there own.
Figure:- 1
Organisational functions have a key relationship with the objective and structure of the firm and
it is very important for the firm to maintain the relationship.
Human resource management and Marketing department:-
Both the departments have to work together so that objectives of the Hilton hotel are
achieved. Human resource department is responsible for recruiting the employees for the firm
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Illustration 1: flat organisational structure
(Source: Flat organisational structure. 2019)

and Marketing department helps the HRM in promoting the products of company so that it is
recognised in market and more and more youth get motivated to join the firm. If both the
departments are communicating effectively then only company can progress (Doyle, McEachern
and MacGregor, 2015). For marketing activities potential employees are required, for the same
HRM helps by selecting the skilled employees who are having experience in the field of
marketing. If both the department coordinate with each other then it would be easy to make
decision and objectives of Hilton hotels will be achieved.
Marketing and Production department:-
Marketing department is having a key relation with the production department as it helps
them to distribute the finished products with help of different distribution channels and providing
transportation facility. If structure is flat then it would be easy for both the departments to get
connected and reach out the potential customers with help of each other. In this way they can
achieve the objective of the Hilton hotel. It is very essential that communication between both
the departments are clear and effective as not having proper interaction may lead to poor
decision making.
Finance department and Human resource department:-
During recruitment and selection proper fund is required and finance department help the
HRM to make the process or recruitment and selection more effective by providing suitable
funds within the budget. HRM also have a relationship with finance department as it helps the
finance department to have potential accountants and analyst who can make proper budget for
the firm so that Hilton hotel can achieve there objectives by having good fund. Whenever funds
are required HRM communicate to the finance department and if structure of the firm is not flat
then there may be chances that no proper communication is possible (Esangbedo and Che, 2016).
Hilton hotel have a clear communication medium between these departments so that there
objectives are achieved on time and without any conflict.
Marketing and Research and development
Both the departments are interdependent on each other as without marketing value of
product can not be created in the market and all the credit goes to Research department in
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innovating the new product that can compete in market. A proper coordination is required
between the two departments so that objective of the firm can be achieved on time. For having
proper interaction Hilton hotel is using flat structure so that both the departments can
communicate easily and are able to make there own decisions that are beneficial for the firm
(Jaakkola and et.al., 2016). Marketing department identify the potential customers and there
needs while research and development helps in converting the needs and wants of customers into
actual offering so that Hilton hotel achieve the objectives.
CONCLUSION
From the above study it can be concluded that the different types of organisation which
are public, private and voluntary firms with its purpose. It has been also discuses about the size,
scope of various types of the organisation. This report has been summarised the relationship
between the different types of firms and explaining how they are interlinked to the objectives and
structure of the company.
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REFERENCES
Books and journals
Deasy, S. and et.al., 2016. Controlling use of a business environment on a mobile device. U.S.
Patent 9,247,042.
Doyle, T., McEachern, D. and MacGregor, S., 2015. Environment and politics. Routledge.
Esangbedo, M.O. and Che, A., 2016. Grey weighted sum model for evaluating business
environment in West Africa. Mathematical Problems in Engineering, 2016.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business, 51(1),
pp.23-34.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics, 171,
pp.241-249.
ONLINE
Flat organisational structure. 2019. [ONLINE]. Available. Through
<https://www.google.com/searchq=flat+structure+of+the+company&source=lnms&tbm=i
sch&sa=X&ved=0ahUKEwi69uqzlfPjAhURSX0KHb8ECO0Q_AUIECgB&biw=1445&b
ih=753>
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