Business Environment: Analysis of Organizational Types and Structures

This report provides a comprehensive overview of the business environment, focusing on the different types and purposes of organizations. It delves into the distinctions between for-profit and non-profit entities, private, public, and voluntary sectors, and examines their respective objectives and operational structures. The report further explores the legal structures of private, public, and voluntary organizations, including sole proprietorships, partnerships, and various corporate forms. It also analyzes the size and scope of organizations across different sectors, from micro to large businesses, highlighting their characteristics and strategic objectives. Finally, the report discusses various aspects of organizational dynamics such as licensing and transactional companies, and concludes by summarizing the significance of the business environment in shaping organizational sustainability and productivity. The report includes references to support the analysis.

Business Environment
Task 1

Cover Content
• Introduction
• Different types and purposes of organisations
• Size and Scope of various types of organisations
• Conclusion
• References

Introduction
Business environment is significant part of the organisation which
determine its sustainability and their productivity of business. The
definition of business environment can be connotes factors, institution
and external components which are not considered in the control of
business as well as influence enterprise functioning. This consist of
competitors, consumer, supplier and government along with other
technological, legal and political factors. Th environment of business
influence each other along with perform together to affect then
activities of an organisation.

Different types and purposes of
organisations
In the recent business sector, numerous organisation are coordinating
their activities within the commercial sector as it is helpful in the
accomplishment of objectives and aims along with the company's
benefits. The main business target is focusing over gaining more
consumer and improving the basic living standard.

Cont..
Comparison Criteria For benefit NPO NGO
Meaning This can be detailed as the entity
that are framed to achieve
maximum revenues out of the
operated operations. Main goals of
such organisation to deliver
consumer services and gain
maximum benefits out of
performed operations.
Organisation which are basically
non-service oriented comes under
this segments which are mainly
light their focus over the benefits.
revenues gained by these entities
are invested within the
organisation for improvising their
operations more effectively
despite of spending on owner.
These are structured for the betterment
of society and are non-governmental
working for the public welfare. These
are non-benefit oriented organisation.
Operations Segment Varies which can either be small or
extensive
Limited Large
Objectives Main target of organisation to
make more revenues as well as
satisfy consumer to earn their
loyalty in regard of their services
and products.
These are formed to promote as
well as support the art, commerce
and science among every
individuals.
Main focus is to promote entire
community and resolve their problems
and issues emerged through the unit.

Cont..
Private Sector: In these category type, whole
organisations are being structure and
planned by government of country along
with produced income through sharing the
work among organisation.
Purpose: Such sort of companies include main
aim over the evolution of economy

Cont..
Public Sector: In these type of organisation, companies majorly are
structured to attain maximum products and service merchandising as well
as gaining maximum benefits.
Purpose: Main cause of these sort of entities are performing according to the
requirement.

Cont..
Voluntary Segment: These types of companies
are framed for the social betterment that are
organised with the voluntarily agreement of
people groups.
Purpose: The main aim before framing such
organisations is to improve social condition.

Cont..
Legal Structure of Private Organisation:
Sole Proprietorship: In these sort of companies,
practices are carried out through a person
who are responsible for debts and benefits of
entire organisation including decision
making.
Partnership: In this two or more than two
individuals starts business operations in order
to achieve set objective.

Cont..
Legal Structure of Public Organisation:
• National Government: As per this, company provision are executed
that has framed through government of United Kingdom and are
often performed by management along with various commercial
practices of business economical development.
• Local Government: These sort of entities mainly pursuit for
fundamental elements for local services and goods along with
performing in the social betterment

Cont..
Legal Structure of voluntary firms:
• Unincorporated association: These type of voluntary firms has no
separate legal body from its individual trustees. These type of firms
operate on a binding contract.
• Company limited by guarantee: This is another legal structure of
voluntary firms which have a separate legal entity. Operations of
this is based on various articles and memorandum.

Cont..
An incorporated association is a registered legal entity usually
established for recreational, cultural or charitable purposes. It must
have at least five members and all profits are put back into the
association's activities. This structure offers many benefits to
suitable organisations.

Cont..
Company
Company is an artificial person created under the law, it is separate
from its owner. Company has the legal rights and responsibilities as
a person, such as entering into the contract, right to sued and be
sued, borrow money and pay taxes etc.

Cont..
Private Limited Company: In contrast to a public company, a private
company cannot be owned by any members of the public. It will
instead be owned by an NGO (non-government organisation) or a
relatively small number of shareholders, and the sale of company
shares is handled privately.
Public Limited Company: A public limited company is a corporation
whose ownership is open for the public, as anyone can get the
shareholding, by purchasing the share of that company.

Cont..
Voluntary Organisation - :
Unincorporated Organisation -
The group of people enters into an agreement for the same purpose but
other than profit. Like voluntary group or sports club. It does not
need any cost to setup. And individuals are personally responsible
for the any financial responsibilities and contractual obligations. If
association makes profit, then it has to pay corporate tax and
company tax return in same way as limited company.

Size and Scope of various types of
organisations
It can affirm that the nature of market is dynamic which render distinct
benefits to the commercial entities which are significant for maintaining
the operations of organisation which is operated in the significant
manner.

Cont..
Private Sector: Such sort of organisations are operated through individual
or private owners that are fundamental part of the country as this
covered more benefits and revenues in a nation through dealing
extensive employments and business operations internationally,
nationally and locally.
Scope: Company deal in different type of products including grocery,
financial, general merchandise and many more. Entity generate large
number of profits every year and has its stores in various countries.

Cont..
Public Sector: In such sort of organisation, scope and size are generally
planned on the grounds of their purpose and types of association. These
firms operate their business to and develop their interest and
requirement of customer.
Scope: Company offer different type of products to its customers. It has its
own superstore, supermarket and convenience shops across the globe.
Organisation deal in so many products in order to fulfil the
requirements of its target customers.

Cont..
Voluntary Segment: In these types of organisation, monetary asset are
performed by sponsors and investors. Oxfam is the global voluntary
company i.e. licenses in United Kingdom with nearby 150 trusts.
Scope: Oxfam is involved in offer different services with the aim of poverty
eradication, disaster relief and many more. Further company operate on
an international level.

Objectives differentiation
Micro Small Medium Large
It is the key purpose
of organisations
which are aiming
over revenues
earning and more
employee in relation
of deliver better
standard of living.
In such companies,
major focus is over
the lifestyle
betterment and
delivering effective
opportunities in the
present competitive
business market.
As per such entities,
main focus sets over
the international
recognition and
expansion of business
to become leader of
trade.
Such components
involve companies
which are organising
their activities more
successfully. Key role
of economical
sustainability along
with structuring
economy determining
nature of business.

Cont..
Small Business
Sole trader is most common form of ownership in UK. It is business
which owned by a single person. The number of employee may have
more than one.
The benefits of sole trader, as you have full control over the business you do
not need to wait for meetings to take decisions. As a sole trader, they can
provide more personalised services to customers, Which improves overall
customer services. The major benefit is, any profit after tax made is all
yours.

Cont..
Large business
Management of these type of companies are capable of carry out
marketing activities of different products at a time. Expansion of
business operations in other areas improve economies of scale. They
get discounts when they purchase raw materials in bulk and this
enhance purchasing economies of company.

Cont..
There are numerous aspects of organisation which are required to demonstrate and understand in
which some are mentioned as below:
Licensing: These sort of companies desire for the agreement to other organisations in relation of
trading and manufacturing distinct services and products under the specific brand recognition.
Transactional Company: These type of organisation mainly are extensive in size along with
wide range of operations within the global marketplace.

Conclusion
This can be summon from the above discussed assignment that
business environment is significant part of the organisation which
determine its sustainability and their productivity of business. Th
environment of business influence each other along with perform
together to affect then activities of an organisation. These activities
help in understanding competitive environment of business along
with certain revenues of firm.

References
 Agarwal, R., Grassl, W. and Pahl, J., 2012. Meta-SWOT: introducing a
new strategic planning tool. Journal of Business Strategy. 33(2). pp.12-
21.
 Aterido, R., Hallward-Driemeier, M. and Pagés, C., 2011. Big
constraints to small firms’ growth? Business environment and
employment growth across firms. Economic Development and Cultural
Change. 59(3). pp.609-647.
 Auzair, S., 2011. The effect of business strategy and external
environment on management control systems: a study of Malaysian
hotels. International Journal of Business and Social Science. 2(13).
 Avramenko, A., 2012. Enhancing students' employability through
business simulation. Education+ Training. 54(5). pp.355-367.

THANK YOU