Report on Business Environment: Types, Purpose, and Legal Structures

This report provides an overview of the business environment and its impact on firms, focusing on different organizational types such as public, private, and voluntary organizations, as well as small, medium, and micro enterprises. It details the purpose and legal structure of each type, including aspects like capital requirements and membership limits. The report also examines the size and scope of organizations like the NHS, McDonald's, and the Red Cross, highlighting their vision, mission, objectives, and stakeholders. Furthermore, it explores the inter-relationship between different organizational functions such as marketing, finance, HR, and operations within McDonald's, concluding that the business environment significantly influences businesses and that organizational functions are interconnected. Desklib provides this and many other solved assignments for students seeking academic support.

BUSINESS AND THE BUSINESS
ENVIRONMENT

 Business environment implies for the factors (internal and external) which in turn have
significant impact on firm’s operations.
 This PPT includes the types, purpose and legal structure of different firms like public
organisation, private organisation, voluntary organisation, small, medium and micro
enterprises.
 It also describes the size and scope of NHS, McDonald's and Red cross and the
interrelationship between the organisational functions of McDonald's.
INTRODUCTION

Types of organization
P1.Types, purpose and legal structure of different organizations
PUBLIC ORGANISATION
PRIVATE ORGANISATION
VOLUNTARY ORGANISATION-

Contd…
PUBLIC ORGANISATION-
Purpose-
 The primary objective of such organization is the welfare of the people and not profit
maximization.
 To make effective use of resources for the benefit of the society (Faghih and Zali,
2018).
Legal structure-
• Paid up capital: minimum paid up capital required for public company is rupees 5 lac.
• Minimum members: at least 7 members are needed to begin a public corporation.
• Maximum members: there is no limit on maximum members, Unlimited members can be
appointed (Lægreid and Verhoest, 2010). 02/03/19

PRIVATE ORGANISATIONS-
Purpose-
 The foremost objective of private organization is to maximize profit.
 To create the wealth of the stakeholders.
 Enhance the goodwill of the company.
 To reach competitive position in the marketilitating transparency to the members of the company
(Kopnina and Blewitt, 2018).
 To achieve the winning position across the world
Legal structure-
 Paid up capital: no limit on minimum paid up capital.
 Minimum members: minimum 2 members are required to create a private company (Bryson, 2018).
 Maximum members: private organisation can have maximum of 200 members.
Contd…

Voluntary organization: Purpose-
 The prime objective is to enhance the wellbeing of the individuals.
 To achieve a specific goal.
 Safeguard the health and life of the human being.
 The prime objective is to enhance the wellbeing of the individuals (Ridley-Duff and Bull, 2015).
 To achieve a specific goal.
Legal structure-
Voluntary organisations can be formed as a trust, unincorporated association and a private company limited
by guarantee and the voluntary groups follows the legal structure as per the provisions of the law given
for trust, association and private company limited by guarantee (Bryson, 2018).
Contd…

Contd…
MICRO ENTERPRISES-
• Micro business have assets less than $250000 per year. It can hire employees
below 10. They facilitate products and services in their local region.
• For example- local tailor shops. Sole traders have control over the firm and owner is
responsible for liabilities of the firm (Bryson, 2018). Sole trader is responsible for paying
tax on the bases of personal income.
02/03/19

Contd…
MEDIUM ENTERPRISES-
• These firms can hire approx 41employees as per the UK standard.
• These firms are required to maintain ongoing cost record and volume.
02/03/19

Contd…
SMALL ENTERPRISES-
• These firms get registered as an LLC corporations and can hire approx 500 or
fewer employees. For example- partnership firm, corporate, sole proprietorship firms.
Partnership firms are made with association of two or more people (Lægreid and
Verhoest, 2010).
• Both partners are responsible for overall liability of business. These firms have to pay
corporate tax rather than personal tax.
02/03/19

Basis of difference NHS McDonald's Red Cross
overview National health service
is the public company
funded for UK. It is the
largest corporation that
enables the residents in
making payments for
the healthcare
(Hamilton and
Webster, 2018).
It is an American fast
food restaurant chain
founded in 1940 and
headquartered in
Chicago, U.S.
It is the world's largest
voluntary organisation
that ensure safety and
protect the health and
life of humans from
any sufferings.
P2. Size and scope of different organisations

It provides all types of
healthcare services
like eye care, primary
care, dental care, long-
term care etc.
The product menu of
Mc Donald's include
burgers, soft drinks,
French fries, ice
creams, Mcflurry,
shakes, chicken
nuggets and many
more.
They facilitate
emergency kits, first-
aid boxes, relief
services etc.
Market size The major working of
this company is in
Europe region
countries like Scotland
northern Ireland,
Wales and England.
It has around 37,241
restaurants at different
locations worldwide.
It has its presence
nearly in every
country and around
190 national societies
are the part of the
committee of red
cross.
Contd..

Times It is majorly working in Europe
region and has a wide scope to
expand in the future.
This company has a huge scope as
it has a worldwide presence in
more than 101 countries.
As the focus is on humanitarian so
the scope of red cross is wide in
those countries that are facing
health sufferings.
Vision Vision of NHS is to deliver better
health, better care and better value.
To help financially for healthcare
and to provide better health
services (Our mission, vision and
values, 2019).
Creating positive environment and
to capture the large market share
and achieving competitive
advantage over its competitor
(McDonald’s Mission Statement &
Vision Statement (An Analysis),
2019).
Preventing the life of the human
and protect the human beings from
any health sufferings. The
American Red Cross, through its
strong network of volunteers,
donors and partners, is always
there in times of need.
Mission To provide quality of care to
every person every
day Delivering the best healthcare
services across the world.
To become a leader in fast food
restaurant chain. McDonald's
brand mission is to be our
customers' favorite place and way
to eat and drink.
To protect the lives of the people.
The American Red Cross prevents
and alleviates human suffering in
the face of emergencies by
mobilizing the power of volunteers
and the generosity of donors.
Contd..