Business Environment Report: Organization Types and Legal Systems

This report provides an overview of the business environment, focusing on the purpose, nature, and scope of different organizational structures. It examines public, private, and voluntary organizations, detailing their characteristics, objectives, and legal frameworks. The report highlights the distinctions between these sectors, including their funding models, stakeholder structures, and primary goals. It explores the roles of the public sector (e.g., NHS), private sector (e.g., Virgin Atlantic), and voluntary organizations, emphasizing their contributions to society and the economy. Furthermore, it delves into the legal systems that govern these organizations, emphasizing the importance of adapting to the competitive business environment. The conclusion summarizes the key differences and similarities between these organizations and the importance of adapting to the competitive environment.

Business
Environment
Task 1

Content to Cover
• Introduction
• Purpose of different organizations
• Nature and scope
• Conclusion
• References

Introduction
Business environment is a concept that is made up of number of
internal and external elements that are present in the surrounding.
Some factors are beyond the control of the business organization.
Therefore, in order to keep in pace with the competitive
environment, they have to work with effectiveness and efficiency.

Purpose of private, public and voluntary
organization and legal system
• Public sector: This type of organization is under the control of
government and have different set of rules as compared to other
institutions. They have the policy to raise their capital through
issue of shares and can have unlimited number of shareholders
for their company. Their basic aim is to serve services for the
society and do not exist for earning profits and revenues. The
other characteristic associated with this sector is that they have
limited liability of the extent of their expenditure.

Con…
Private Sector: These type of business organization is under the
control of some individuals and their prime motive is to earn high
financial gains and competitive image in business environment.
This can be formed with minimum of 2 staff members and
directors. The maximum number of stakeholders is 50 only. The
partner that can be formed comprises of maximum of 200
members that is defined in the law.

Continue………..
Voluntary organization: This type of institution is established to deliver
voluntary services to the society in order to increase their living standards
and quality of life. All NGO’s are included in this type of sector. They do
not exist for earning huge financial gains. They are governed under
section 21 and there is trust which governs this type of business entity.
They are known as nonprofit organization system that involve work in
solving several issues that get arise in the society in which they are living.
Therefore, their important objective to face such issues and raise the
society of peace and free of challenges.

Continue..

Size and scope of a range of different types of
organizations
Virgin Atlantic, a trading name of Virgin Atlantic
Airways Limited and Virgin Atlantic International
Limited, is a British airline with its head office
in Crawley, United Kingdom. The airline was
established in 1984 as British Atlantic Airways, and
was originally planned by its co-founders Randolph
Fields and Alan Hellary to fly between London and
the Falkland Islands

Cont..
The public company which include NHS that deliver its services
in England. It is regarded as top four nation’s health service
provider organization system. The feature associated with this
business entity is that they do not charge anything for their
patients and supply free of cost services to them. They are
formulated to deliver social services to the people that are living
in the society.

Cont..
• Voluntary business organizations system are distinctive
individual entity from public and private sector. They are
incorporated for the good motive to be served by themselves.
The type of organizations that are included in this are trade
unions. Associations and professional associations that are
formed for some purpose and aims that has to be full filled by
them. These motives have to be completed by them. For
instance, labor unions are formed to protect the interests of
individuals and labors that are present in the company.

Conclusion
It has been concluded that each and every business entity is
different from each other in terms of rules, regulations that
govern these separate business firms. All of them have certain
specific norms and system which is concerned about number of
members. Capital required as well as laws control the working of
this system. Government also have to frame various rules and
regulations that guide the actions of these organization system
and perform overall work process according to it.

Reference
• Gassmann, O., Frankenberger, K. and Csik, M., 2014. The
business model navigator: 55 models that will revolutionise
your business. Pearson UK.
• Bernstein, M.H., 2015. Regulating business by independent
commission. Princeton University Press.