Business Environment: Types, Purpose, Legal Structure, Size and Scope

This report provides an overview of the business environment, focusing on different types of organizations, including public, private, and voluntary sectors. It examines their legal structures, sizes, and scopes, using examples like London Transport, Iceland supermarket, and various NGOs. The report emphasizes the importance of stakeholder analysis for organizational success and concludes that understanding these elements is crucial for business growth and development. The document is available on Desklib, a platform offering a wide range of study resources, including past papers and solved assignments.

BUSINESS
ENVIRONMENT
LO 1

Covered Content
• Introduction
• Different types and purpose of organisation and their legal structure.
• Size and scope of different types of organisation.
• Conclusion
• References

Introduction
Business environment means combination of internal as well as external factors
which can affect activities of company and it is dynamic in nature. Every firm
has their own purpose which they need to accomplish within time so that they
can achieve their targets and objectives effectively and efficiently.

Different types and purpose of organisation and their legal
structure.
There are various forms of enterprises such as public, private as well as
voluntary sectors.
• Public sector organisation
• Private sector organisation
• Voluntary sectors

Public sector organisation
This type of enterprises are owned and run by
regulatory bodies. It may includes national as
well as local government and their agencies.

Legal structure
There are two forms of public sector which are as follows:
 General government
 Public corporation

Private sector organisation
It means those organisations which is held, managed as well as controlled by
an individual or any private establishment.

Legal structure
• Sole trader
• Partnership
• Limited companies
• Cooperatives

Voluntary sector
This type of organisation is not held by only an individual. It is also known as
not – for – profit enterprise. They formed to provide benefits to public as well
as never divide their revenues to their members.

Size and scope of different types of organisation.
Public Sector organisation: London transport is a regulatory body who is
responsible for conveyance system in London. Vision of London transport is
to business with different industry partner as well as stakeholders so that they
can deliver safe, secure and reliable conveyance system.

Continued...
Private sector organisation: Iceland is a supermarket which is established in
UK, they sale various types of products such as vegetables, meat, dry items as
well as meat. They have approx 2% share of United Kingdom food market.

Continued...
Voluntary sector: NGO's are non profit enterprises which are generally funded
through donations or charities. In worldwide, there are approx 3.5 million
NGO. They never share their profits among their members. There vision is to
attain long term success.