Unit 1 Business Environment: Org Types, Functions, Structures

This report provides an analysis of organizational types, functions, and structures within the business environment, focusing on the size and scope of various organizations, including public, private, and voluntary sectors. It explores the interrelationships between organizational functions and their link to the organizational structure, using Apple as an example. The report further discusses the advantages and disadvantages of these interrelationships and their impact on organizational structure, emphasizing the importance of strategic planning and adapting to the international business environment. The analysis incorporates examples such as Tesco, Kiwi Import, and the British Red Cross to illustrate different organizational models and their objectives.

Hewlett-Packard
Organization type and structure
Name of the author-

Table of Contents
Introduction.................................................................................................................................................3
Different type of organization,....................................................................................................................3
Size and scope of the various types of the organizations.............................................................................5
Explain different types and purposes of the organizations; public, private and voluntary sectors and legal
structures.....................................................................................................................................................6
Explain the size and scope of a range of different types of organizations....................................................7
Analyzing how structure, size, and scope of various types of organization are linked to business
objectives and the products and services offered by the organization..........................................................8
Demonstrate the interrelationship of the various functions within an organization and how they link to
organizational structure...............................................................................................................................9
Apple’s Organizational chart..................................................................................................................10
Advantages and disadvantages of the interrelationships between various organizational functions and its
impact on the organizational structure.......................................................................................................11
Conclusion.................................................................................................................................................11
References.................................................................................................................................................13

Introduction
Each and every organization needs to implement the effective strategies and planning to
accomplish set objectives and goals in effective manner. This report reveals the size, structure,
business requirements and activities which needed to consider before incorporating the business
entity. This report reflects the business challenges and issues which could be related to size and
business requirements of the business and organization need. It is analyzed that every business
entrepreneur firstly needs to analysis the business challenges and types before starting up new
business. The main objective of this paper is to identify the reason behind the incorporating the
particular type of the organization. This report reveals the size scope, objectives and interrelation
between the type of organization and employees’ need. There are several types of organizations
such as public, private, non-profit organization and sole proprietorship organizations which
could be incorporated as per the needs and demand of the entrepreneurs. At the initial of this
report, type of the organizations, size and scope have been discussed. After that the various parts,
functions and department of the organization have been given. In the end, challenges, issues,
recommendation and conclusion related to the incorporation of the particular sort of organization
have been discussed. It is analyzed that the type of the organization incorporation should be
based on the size of the business and its complexity throughout the time (Apple Incorporation.
2018).
Different type of organization,
With the changes in time, legally, there are five sort of the major organization which
could be incorporated by the entrepreneur to set up a strategic business functioning such as
public, private, non-profit organization and corporative charities. There are several examples
which could be undertaken to describe the particular type of the organization. Tesco Plc is the
public organization which is indulged in telecommunication business and having high amount
turnover. Ideally, company is incorporated as public company which wants to raise capital by
issue of shares and having complicated business. In case of private sector business, there could
be private company such as Kiwi Import. This company is incorporated by the two directors who
take all the imperative decisions to run the business effective. In addition to this, one person
company is the type of company in which only one member is the whole sole owner and takes

imperative decisions. The private organization is the best option to start up a new business when
company wants to have less complication in its business process and strengthen its overall
business outcomes. The Non-profit organization is incorporated for the particular social purpose
and least care for earning profit from the market. The British Red Cross organization is one of
the non-profit organizations which are indulged in offering its health care services to the clients
in market. It is the most popular company having objective to serve society with its advance
society’s oriented services in market. In addition to this, Private and Public organization both
have their own objectives and purpose and incorporated for their particular purpose. It is
analyzed that when company wants to raise capital from the public then it will have to go for
public enterprises so that its shares could get listed on the stock exchange. However, public
company has high legal compliance as compared to small organization. It is analyzed that if
entrepreneur has small type of business then it would be better to incorporate private company.
All the public companies are indulged in big business process such as CSR activities,
financial planning and employee orientation work program. After assessing the annual report of
one of the listed public company, it is observed that JB Hi-Fi Company is the top most company
which is indulged in strengthens the business outcomes. It is analyzed that JB Hi-FI Company
has to manage its CSR activities program, sustainability business practice and strengthen the
business program (De Deyne, Verheyen, and Storms, 2016).The main objective of this company
is to align the interest of the stakeholders with the organization development. This company has
to comply with the listing and other applicable corporate law and regulations if it wants to
sustain its business in long run. On the contrary to that, when entrepreneurs are having small
business ideas then they are indulged in incorporating the one person company or small sole
proprietorship. This is developed so that it could help entrepreneurs to keep the business legally
different from its owners. It is done to make the liability of the owners limited. In addition to
this, it is hard for the private company to raise capital from the market due to the high legal
compliance and corporate governance program. Furthermore, sole proprietorship company is
also having its disadvantage as it is very small in nature and at certain limit of time, it may
requires organization to convert into private and public organization.
Increasing growth and complexity of the international business environment

The international business environment has been changed throughout the time. It is analyzed that
if company wants to have growth in its business then it must focus on tapping the new
international market. It has been observed that countries like UK, US and Australia have been
showing high growth in their GDP rate and purchasing power of the clients. These are the
positive indicator for the organizations who wants to tap international market for the business
expansion. In addition to this, Asian Countries are also revealing high amount of growth in its
business. It is analyzed that international alliance and strategies are the base for the international
business. For instance, Apple Incorporation enters into the strategic alliance with other
organizations so that it could cover international market with its highly advance electronic
products. It has been observed that Apple incorporation has focused on the Asian countries and
Australian market to strengthen its business on the international market. It has been observed that
if company wants to grow effectively in market then it must focus on strengthen the international
business strategies. It will not only increase the turnover and profitability but also strengthen the
brand image of company on international level. The international alliance and business
expansion are the best international strategies to tap the international market.
Size and scope of the various types of the organizations
There are several types of organization such as public, private, non-profit organization
and sole proprietorship organizations. However, in this, we could take example of Apple
Company which is indulged in offering advance tech products and services to clients in market.
It is analyzed that this company has increased its market share by expanding its business in
international market through online and offline business ventures. The main focus of this
company is to strengthen its market share by creating core competency in product differentiation
strategy. In this strategy, company has been offering standardized quality phone products in
market which increases its sales in market (De Deyne, Verheyen, and Storms, 2016).
Explain different types and purposes of the organizations; public, private and voluntary
sectors and legal structures.
The main purpose of incorporating the business is to earn profit from the undertaken
business strategies. It is considered that if company wants to sustain its business in long run then
they will have to customize their products and services as per the client’s needs and demand. It

may include introducing the new product line and strategies. Company may use the international
strategic alliance and new product line which ay includes redefining the product and service
lines. In addition to this, there are several types of the organization such as public, private, non-
profit organization and sole proprietorship organizations.
Public organization- It is incorporated when company wants to operate its business on big level
and having high complexity. There are several examples of the public companies such as JB Hi-
Fi Company, Tesco and Wesfarmers (De Deyne, Verheyen, and Storms, 2016).
Private company- It is the small organization which is incorporated when there is less business
complexity and owners of the company wants to keep their business separate ownership and
legal entity. It may include Kiwi Impart Private limited
Non-profit Organization- This organization is being incorporated for the social objectives and
not for earring profit purpose. It reveals how well company could align the interest of its
business with the organizational development. It is less concerned about the profit and more of
satisfying the stakeholders. It includes such as British health care society and Red Cross care
organization (De Deyne, Verheyen, and Storms, 2016).
One person company- This Company is incorporated when owner of the company wants to
create separate legal entity and also wants to have whole sole ownership. There is requirement of
one director to run and operate the business in market.
The Apple Company operates its business on international level and demographically it has been
changing its technologies and adding advance features in its business cycle. In addition to this,
despite of the international financial crises, this company has been winning over the market with
its product differentiation strategy (Ashkenas, et al. 2015).
Explain the size and scope of a range of different types of organizations.
In order to identify the size and scope of the range of the different types of organization,
we have to analysis all these different organization (Moore, Aitken, and Semple, 2015).
Public organization- It is considered that public companies such as JB Hi-Fi Company, Tesco
and Wesfarmers are the example of the public limited organization. There is no certain size for

these companies but these companies need to have at least 7 directors and all the legal
compliance and corporate governance program. If these public companies are listed then they
will have to comply with the applicable listing rules and regulations (Reid, et al., 2015).
Private company- It may include Kiwi Impart Private limited. The minimum size of this
company is that it requires at least 2 members and 2 directors to run the business in market. This
business is incorporated when company wants to sustain its business on international level.
Non-profit Organization- this organization includes such as British health care society and Red
Cross care organization. It is analyzed that these companies are indulged in serving to society
and less inclined towards earning profit from the market. This company is exempt from paying
income tax to government and do not distribute the profit among its members. This company has
to follow society legal compliance program if it wants to sustain its business in long run (De
Deyne, Verheyen, and Storms, 2016).
One person company- It is the small company which is incorporated with the single member.
This company is promoted when the owner do not want to share his ownership with other
business owners. It is analyzed that one person company has less complexity and it is easy for
operating the business (Apple Incorporation. 2018).
The limited companies:
The limited liability company is noticed by the corporate association. The main reason behind
creating the limited liability company is based on its separate legal existence of company. The
Apple incorporation is the international company which is offering highly advance tech products
and services. This company has been tapping the new market with its high quality tech goods in
market. It has set up strong corporate legal compliance program which has strengthened its legal
brand image on international level. Company has been holding annual general meeting since
very long time. It has several sub units of the company (Ashkenas, et al. 2015).
The scope of the organization is depending upon the products and services sold in the
market. For instance, scope of the selling the high tech goods, machines and mobiles phones are
the some of the core products sold by the company. This company has increased its overall

turnover and profitability by 24% since last three years. It shows the positive indicator for the
business growth of the company (Shafritz, Ott, and Jang, 2015).
Mission of the Apple Incorporation
This company has mission to satisfy its customers for all its advance products and service. This
company has created core competency in product differentiation by offering high quality phone
products and advance technologies gazettes in market.
Visio of the Apple Corporation
This company wants to become the biggest mobile phone company by offering highly advance
featured mobile phones in market (Young, and Ghoshal, 2016).
Analyzing how structure, size, and scope of various types of organization are linked to
business objectives and the products and services offered by the organization
With the ramified business growth and expansion, every organization needs o align the
structure, size, scope and business activities with its business objectives? It has set up strong
correlation between organizational structure, size, scope with the objectives and goals. It is
analyzed that due to the complex business organization and structure company needs to manage
its business structure. Apple Company has followed decentralized business structure in which
functional, Human resource management, Information technologies and matrix organization
functions are handled. It is analyzed that the research and development department of the Apple
Company is highly strong. The public limited company has to comply with the listing and
corporate law requirement if it wants to sustain its business in long run. It is considered that
matrix project functions are undertaken if company is facing high complexity and issues in its
business process (Baily, 2017). The main owners of the company are its shareholders who have
invested capital. In addition to this, all the employees and staff members of company are
accustomed to act as per the directions and instructions of the chief financial officer of company.
It has more htan 15 directors in its business functioning who takes all the imperative business
decisions.

This public organization is accompanied with the large and big organizational activities which
are aligned to earn good amount of profit. The scope of company is to create strong brand image
on international level and satisfying its clients (Kwasa, Bloebaum, and Mesmer, 2015).
Demonstrate the interrelationship of the various functions within an organization and how
they link to organizational structure
After assessing the annual report of company it is considered that the size, scope and
organizational structure of the company are based on its set objectives and goals. If company is
having high profit and turnover and also facing high complexity in its business project functions
then it will have to incorporate the public limited. Entrepreneurs who are having objectives and
vision to render benefits to society and less interested in earning profit then they should go for
incorporating the non- profit organization (Kanten, Kanten, and Gurlek, 2015). Apple
incorporation is the international public company which has motive to earn profit from its
business activities. It is considered that due to the high complexity in its business process it has
been incorporated as public limited company. At the same time, Red British organization has
been incorporated as non-profit organization which is indulged in providing benefits to society.
This shows the scope and objectives which are considered by the company before starting up
new business. The structure of the company is based on the complexity and work functions of
the organization. On the other hand, scope of the organization is set as per the objectives and
goals. It is analyzed that Apple Company has been following decentralized business functions in
which all the decision and strategic planning is being made by the different line managers of the
process (Thies, Zdrallek, Schwan., and Ettinger, 2014).

Apple’s Organizational chart
Source: - https://research-methodology.net/apple-organizational-structure-a-hierarchical-
structure-that-may-change-in-near-future/
It is considered that Apple Company is being accustomed to act as per its chief executive officer.
It has several functions and activates which are managed by the organizational managers. It is
analyzed that it has strong cyber computing system and managing team members. It has created
core competency in market as the research and development of the company is unique (Kwasa,
and Kannan, 2015).
There are mainly five departments such as top management department, process level
department, matrix management, HRM management and other departments. This company is
accompanied with the highly complicated activities in which all the decisions are taken by line

manages. All the functions and activities of the organization are interlinked with each other and
managed by the strengthen enterprises resources planning and IT system.
Advantages and disadvantages of the interrelationships between various organizational
functions and its impact on the organizational structure
Advantages:
1. It is analyzed that company has aligned the interest of the employees with the organization’s
development. It has strengthened the communication channel which will help in creating the core
competency in business.
2. All the employees of the company is interlinked and supported by the matrix project managers.
3. The HRM department of company is indulged in hiring and recruiting the employees.
4. Company has been taking advantage of highly experience employees and interlinked
communication department which helps it to create synergy in its business process.
5. It has also set up strong alliance with other organizations (Kwasa, and Kannan, 2015).
Disadvantages
The main disadvantages of interlinked functions are that it increases the intruders in process
which slow down the process of organization. It also restricts the process to grow due to the legal
consent and meeting process. If Apple Company fails in its research and development
department and enterprises resources planning communication system then it might result to high
loss as all the system process is accompanied and interlinked to each other (Thompson, 2017).
Conclusion
It is considered that in order to operate the business, there is need to give legal existence
to the business organization. In addition to this, it also helps in creating the better output and
strengthens the overall output in effective manner. The advantage and disadvantages of the
particular type of the business is based on the complexity, objectives and requirement of the
capital in business. It is analyzed that there are several losses if entrepreneur creates private
company as it not only increase the liability of the owner but in terms of the brand image, private
company is less considered less trustworthy and less sustainable in market.

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