Business Environment Analysis: Types of Organizations and Their Scope

This report provides a comprehensive analysis of the business environment, focusing on different types of organizations, including private, public, and voluntary companies. It explores the purpose and scope of each type, using examples such as Nestle, NHS, and Oxfam to illustrate their operations and impact. The report also examines the size and scope of these organizations, differentiating between small, medium, and large enterprises. It highlights key factors that influence business functions, such as employees, management, and market dynamics. The conclusion emphasizes the importance of collaboration and cooperation within organizations to achieve predefined objectives within the business environment.

Business
Environment
P1 & P2

Table of content
• Introduction
• Different types and purpose of organisation
• Size and scope of different types of organisation
• Conclusion
• References

Introduction
Business environment is defined as all internal and external factors that
have major impact on the organisational functions including
employees, management, customers, demand and supply etc. This is a
combination of internal and external elements which influence on
business and its operations.

Different types and purpose of
organisations
Private company: A
private company is one
whose shares are not
traded into stock market,
and it limit owner's
liability to their share.

Contd..
Nestle is a private company and world's largest food and beverages
company that have more than 2000 brands in rural to urban areas,
serving in 189 countries globally.
Purpose of nestle is to enhance quality of life and contribute to a
healthier future. Nestle want to shape a better and healthier world and
inspire people to live a healthy life.

Public company
Public company: A public company can have minimum seven members
in it, and run by the Government of the specific area or country.

Contd..
NHS: National Health Funding is a publicly funded national healthcare
system for England and stand one in four of national health services in
UK. It it the largest single payer system globally.
Purpose of NHS: NHS works for the healthy and safe world and want
to promote different health services across the world.

Voluntary company
Voluntary company: Those organisation which helps in public
welfare and fulfil their needs at time of natural calamities, or accidents
etc. by charities, association and corporation come under voluntary
companies. Their only objective is to give public services and to
remove poverty.

Contd..
Oxfam: It is an International coalition of around twenty organisation
working together with local communities and partners in more than
ninety countries.
Purpose: Around the globe, Oxfam works to explore practical and
innovative ways for people to lift themselves out of poverty and thrive.
They save lives and help them to rebuild livelihoods when calamities
strikes. They strengthen the needy and poor.

Size and scope of different types of
organisations
Small Enterprises: Small enterprises are those firms which employs a
small number of employees like they employ till 50 number of
employees and they do not have high turnover and high volume of
sales. For example, Oak Cash and Carry Limited is a private limited
company which deals in retail sector and is a small size enterprise. Its
business is to provide cash and services.

Contd..
Medium sized Enterprises: Medium sized Enterprises are those
enterprises who employs between 50 and 249 employees and they have
their turnover and volume of sales higher than small sized enterprises.
For example, A David and Co. Limited is a food and beverage industry
which deals in commercial services. Its objective is to capture highest
market share in food and beverages industry by targeting more and
more customers.

Contd..
Large Enterprises: Large enterprises are those firms which employs at
least 5000 employees and has an annual turnover greater than 1.5
billion Euros. They have their turnover and volume higher than small
and medium sized enterprises. For example, Tesco plc is a large sized
enterprise which is a retail company, operates as a grocery retailer.
Company also deals in retailing and associated activities and retail
banking and insurance services.