Business Types, Scope, and Interdepartmental Relations Report

This report provides a comprehensive analysis of the business environment, focusing on Perrinn Cars as a case study. It begins by classifying organizations into private, public, and voluntary types, detailing their objectives, legal structures, and purposes. The report then examines the scope and size of companies and their impact on organizational goals, using examples such as the BBC and British Heart Foundation. Finally, it explores the interrelationship between various departments, including HR, operations, sales, and marketing, and their links to organizational structure and objectives. The analysis highlights how these departments must align to optimize resources and achieve business goals, emphasizing the importance of adapting to a globalized business environment and leveraging resources effectively. The report concludes by summarizing the key findings and implications for businesses operating within a dynamic environment.

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
P1.Various types & purpose of organisations.............................................................................3
P2. scope & size of the company that affect objective and performance. ..................................6
P3. Interrelationship among departments of organisation and their link with organisational
structure & objectives.................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment includes internal & external factors which have direct impact on
the overall performance of businesses. Factors like technology, customers, government,
suppliers, current market trends, society, health and safety and so on is included in business
environment factors that affect organisation in attaining goals. In this current report, Perrinn cars
that is a car manufacturing company if sports and racing cars is taken. The company headquarter
in UK and start its operation in year 2011(Ahokangas, 2014) . The report covers different types
of organisation that is private, public & voluntary with their legal structure. Along with this, the
size and scope of these organisation and their impact on goals of organisation is discuss. In
addition to this, the interrelationship of various function of organisation with type of business
structure is going to cover in this report.
P1.Various types & purpose of organisations
Organisations are classified into three types that is private, public and voluntary. The
objectives of these organisations is different which are described in detail below:
Private Organisation: Any corporation, agency, partnership or a person who is not
working under a public body is known as private organisation. The main motive of these
organisation is to earn high profits by giving good services to the public. Private organisation
take funds from their own sources. Perrinn cars, a private company in UK deals in production of
sports & racing cars. The company goal is to earn more profit and expanding its business in more
countries. This will lead company to increase its market share and productivity.
Purpose: private organisations aim is to achieve high profits as well as gain more market
share. With this, private companies wants monopolistic competition so that they can be the price
maker & increase profits(Botha, Kourie and Snyman, 2014) . These organisation engage more
customers by their effective marketing strategies so that its customer base increases which leads
to the maximization of sales & profit.
Legal Structure of Private Organisation :
Sole Proprietorship : In this the business operates & managed by an individual. The
person is liable for all the losses as well as risk related to the business. The individual can do
business with a name of owner or any other name. It does not come under legal entity. Sole
proprietors does not need any registration & incorporation. The liability of a sole proprietorship
is unlimited. If he business suffers any losses it will be the loss of sole proprietor as the money

that is invested is his personal income. The person have the right to exit the business, if wants as
no legal formalities is required to wind up the business. The sole proprietor does not need to
share its revenue and profit of the business. Due to sole proprietor limited skills and resources
the company sometimes may be incompetent and suffer losses which leads to the winding up of
business.
 Partnerships : It is a legal relationship between two or more than two persons to execute
the activities of a business. The partners share their money to achieve the common goal.
They share the profits as well as losses of the business or according to the specification
written on the partnership deed(Davies, 2016) . Both partners has the right to take
decisions related to the business. The partnership is of different types such as limited
partners, general partners, salaried partners and so on. The number of persons required
minimum is two and maximum is ten in banking and twenty for other kind of business.
Th agreement between partners is oral as well as written. In addition to this, no partner
has the right to give his partnership to anyone, it takes place when it is decided mutually
by partners.
 Limited Companies: The company whose liability is controlled and limited. The liability
of subscribers and members is limited as per the amount invested and guaranteed. The
personal finance is separate from the finance of business. The persons who put amount in
business has responsible for company debts. If any of the partner exit or die, the
operations of the company did not shut. The decision making is quick and easy as the
directors has the control and ownership of the company.
Public organisation: These organizations are managed & controlled by government
bodies. These organisation work to give common service to the public at affordable price. Public
organisation supported financially by government and their profitability is less as compare to
other organisations. The decisions about these companies whether it is finance, marketing
activities and so on are taken by government only(Foss and Saebi, 2018) . Public organisation
gives job security to its employees with a good culture and environment. For example, BBC is a
public service company, headquarter in UK. Its subsidiaries is BBC weather, BBC radio, BBC
music and many more. The company is funded and controlled by the British government.
Purpose: The main motive of public companies is to develop the economy and raise the
standard of living of citizens. These companies work to develop backward areas in order to

stable the economy. Public organisation work to create employment opportunities and uplift the
standard of societies. They want to save people from profiteering & Exploitation. These
organisations works to bring equality and create awareness in the societies.
Legal Structure of Public Organisation : Central : The government body that controls economy by giving liberty to departments to
work for the development of societies and improve their conditions. The companies earn
profits and spent it on the welfare of local communities & societies. State : The rights is given to the particular zone & state. The companies follow those
regulations which comes under this supervision.
 Local : These are local communities that controls a particular community. The main
motive is to upgrade standards of people of society.
Voluntary Organisation: Voluntary organisations are those group of people who enter
into a contract for a particular purpose. Such as trade unions, environmental groups, learned
societies and so on. Voluntary organisation is incorporated as well as unincorporated. They are
NPO and are funded by trustees (Graham and Kaye, 2015) . For instance, British Heart
Foundation in UK is a voluntary organisation. The primary motive of organisation is to make
people fight with cardiovascular diseases. They want heart break is no longer the reason of
premature death & disability. They aware societies about this disease and tell people the solution
of prevention.
Purpose : The purpose of these organisations is to enrich society and work for the
benefits of society. Their main motive is not to earn profit but to uplift societies. Their work is to
increase social wealth in spite of material health.
Legal structure of voluntary organisation Trust : Voluntary organisations are the charities that is trusted by all the citizens. They
properly use the amount that is invested by the public on the welfare of people.
 Unincorporated Association : Voluntary organisation implements plans and projects for
particular issues.

Growth of business environment :
Advancement in technologies, change in current trends, customers choices & preferences,
Global businesses is expanding its market easily and quickly so that they can compete in the
market and remain longer in the market. Nowadays, the resources, funds are easy available for
organisations to enlarge their businesses. The opportunities and possibilities is more in
developing countries, this is the reason domestic markets spread their business in international
market (Goedertier, Vanthienen and Caron, 2015) . For every organisation it is important to work
at global level so that they maximize their customer base and cover large market share. This will
lead organisations to increase productivity & gain high profits at marketplace.
P2. scope & size of the company that affect objective and performance.
The possibility to do deal with some subject is scope. Scope is of three types that is
global, local and wide scope. When something defines globally it is global scope and when
something defines inside than it is local scope.
Perrinn cars: The leading company of Sports & Racing cars. The aim is to generate
sales and increase revenue. The company give quality in their services which is different from its
competitors. Perrinn cars have greater than 1300 employees that help companies to reach at high
level in the market.
British Broadcasting Company : A public organization that aims to entertain, educate
and aware people through its services. It is one of the leading and oldest companies in
broadcasting. BBC includes entertainment, sports, regional ans so on channels. BBC have more
than 37000 employees and broadcast its channels in 31 languages.
British Heart Foundation: A voluntary company funded by the trustees which aim is to
fight people with heart diseases and decrease the population of people who have cardiovascular
disease. The company wants to prevent the rate of premature death that is happen due to heart
diseases. British Heart foundation have more than 12000 supporters.

Compan
y
Vision Mission Size Scope Stakeholders
Perrinn
cars
To be the
leading
manufacturing
company of
Sports as well
as racing cars
is the vision of
Perrinn cars.
To provide
unique and
different class
cars to the
customers so
that customers
get attracted
and remains
loyal is the
mission of the
company.
Perrinn cars has
170 plus
employees and
starts operating
from year 2011.
Perrinn cars
produce racing
cars and want to
increase its
operations in
other countries
in order to gain
market share
and
profitability.
Perrinn cars is a
automotive
company and is
manufacturing
based joint
venture.
BBC BBC vision is
to entertain
people by
giving distinct
and creative
services to its
customers.
To aware and
educate people
by giving
accurate & high
quality
information is
the mission of
company.
BBC have
38000
employees
overall and
functions in
more than 34
countries .
The company
want to add
historical
programmes,
real life
programs in
order to aware
the customers
and attract them
The company
consist of
external as well
as internal
stakeholders
that includes
customers,
suppliers , etc.
British
Heart
Foundati
on
Tom make
world free
from heart
disease so that
premature
death does not
happen.
To make people
strong that help
them to to fight
with
cardiovascular
disease.
The foundation
have greater
than 12000
supportive and
employees.
(Gray, Adams
and Owen,
The foundation
wants to enlarge
its services to
all over the
world.
British Heart
Foundation
includes
trustees,
volunteers,
employees,
beneficiaries

2014) and so on that
give good
quality service
to the public.
P3. Interrelationship among departments of organisation and their link with organisational
structure & objectives.
Organisation have different departments according to their work and activities performed
by them. To perform appropriately the organisation departments must be properly aligned. It
helps companies to optimize the resources, save time, efforts of the subordinates. Department
that is marketing, HR, operations, Finance, sales are linked each other in order to do activities
and tasks of the organisation. The interrelatedness among these department is described I detail
below:
 HR and operations: The working of operation department is to identify the needs of the
subordinates. Human resources department helps organisation to fulfil their needs and
hire new workers as pert the criteria given by the operation department(Hillary, 2017) .
Hence, human resource department and Operation department is interrelated with each
other.
 Sales and Marketing : The working of sales department is to implement those plans
and strategies which is made by the marketing department. Marketing department
review the perception of sales people to know about customers response so that they
can improve their services in order to satisfy the customers. This relation among
departments assist companies to effectively implement their activities at marketplace
and engage customers for linger time. This leads to gain high profits as well as market
share.
 IT & Finance : Finance department give estimation of resources and budget to the IT
department so that they can bring new and updated technologies in the organisation.
This interrelatedness aid companies to offer new services. In context to Perrinn cars, the
company update its technology according to the market trends and customers choices
so that they can engage new customers and did not loose its existing customers. This

builds customer loyalty which is beneficial for the organisation and gain competitive
edge in the market.
The motive of the departments is common if it is finance, HR, marketing and so on
department. An organisation only fulfil its customers requirement when its departments work
effectively and interrelation among this is appropriate. With references to Perrinn cars, the
marketing department influence customers through its strategies which takes place in market by
sales department. Activities like promotion of products, advertising implemented by sales
department effectively (Niemann-Struweg, 2014) . The human resource department recruit
talented staff that helps operations department to produce manufacture cars. Advanced and
updated technology influence customer and help company to enlarge its customer base.
Organisational structure : An organisation structure consist of task and activities which
have to perform by the employees of the organisation. It shows the guidelines to how to attain
objective. Organisation structure defines each function, job, rules, authorities, responsibilities
and so on. It I basically develop to execute and implement goals. It describes the flow of
information and ideas to the subordinates of the organisations. On addition to this, it gives clarity
to the employees about their authority and whom they answerable and accountable too. The
organisation structure is of four types that is divisional, matrix, functional and flat structure.
Divisional structure: The structure that allow companies to divide work as per the
market , product type and service line (Saebi, 2014) . In divisional structure the operations and
activities flows independently. This structure helps organisation to be effective and flexible.
Divisional structure creates a good culture and help employees to meet the requirements of local
market. In addition to this, it is easy for managers to give direction to the subordinates and assign
their roles effectively.

Matrix structure : In this structure the subordinates accountable to more than one
administrator. The relation between employees & upper level authorities is in grids & matrix.
Functional structure: The subordinates reporting is as per their fields. The task is
divided according to employees skills into different departments like HR, finance, marketing and
so on .
Perrinn cars follow Divisional structure in the organisation in order to perform activities
and task(Shenkar, Luo and Chi, 2014) . This help company to smoothly run their activities and
managed its employees appropriately. In addition to this, their employees know what their duties
and roles are that leads company to effectively perform their functions.
CONCLUSION
After analysing this report, it has been concluded that organisations purpose is different
as per their types. The organisations legal structure is different of public, voluntary and private
sectors. The scope as well as size of businesses plays a crucial role in the development of goods
& services( Zaharia and Zaharia, 2015). The organisational structure affects the performance
and activities of the companies that is it helps companies to define employees their duties and
responsibilities. In addition to this, Interrelation among the departments is essential for every
organisation to attain objectives as well as increase sales of the company. This relation assist
organisations to maintain its customer base and retain them for longer period of time.

REFERENCES
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