Business Environment: Types, Purpose, Size and Scope of Organizations

This report provides an in-depth analysis of the business environment, focusing on different types of organizations. It begins with an introduction to the business environment and its impact on businesses, followed by an exploration of various organizational structures, including public limited organizations, private companies, and voluntary sectors. The report delves into the purpose, size, and scope of each type, highlighting their distinct characteristics and contributions to the economy. It examines the legal structures, operational models, and key differences between profit and non-profit organizations, providing a comprehensive overview. The report concludes by emphasizing the importance of understanding the business environment and its influence on organizational success, supported by relevant references.

BUSINESS
ENVIRONMENT
TASK 1

Content
 Introduction
 Different types organisations and their purpose
 Size and scope of different types of organisations
 Conclusion
 References

Business Environment

Introduction
Business environment is sum total of internal and external factors
which impact on business. It is a set of political, legal,
institutional, economical and social conditions which are
uncontrollable and also impacts functions of company.

Different types organisations and their
purpose and legal structure
Public limited organisation
Private company
Voluntary sector

Private Organisation
Private organisation- It is an important part of an economy under
which services and products are manufactures as well as
distributed though business firms and individuals which are not
a part of state bureaucracy and government. It is a segment of
national economy which is controlled, managed and also owned
through private enterprises or persons.

Continue...
In private limited organisation, each shareholder should be part
of business and in no circumstances can sold shared to
members of general public.
There is a liability of shareholder for debts of firm and lose value
of investment in organisation. Firm is run through Board of
Directors and also headed through Chairman.

Public Organisation
Public organisations
The membership of public firms are open to the general public.
Minimum persons are needed to incorporate this kind of firm is
seven and there is no limit. These firms work for increasing an
economy of United Kingdom country. In addition to this, public
sector employees labours by state, federal and local
government.

Continue...
It is like a private limited firm and PLC is incorporated business
and also run through Board of Directors on behalf of
shareholders It has an AGM at which the vote on shareholders
on some main problems related to firm.
Main different among private limited firm and PLC is that Public
limited company can sell its all shared on Stock Exchange to
general public and also can raise share as comparison to
private limited.

Voluntary Organisation
Voluntary organisations
It is group of people which voluntarily enter in an agreement to
form firm in order to achieve business objectives. Under this,
volunteers and funders give their contribution and work for
welfare of the society.

Difference between various
organisation
Basis for
comparison Profit Organisation Non- Profit
Organisation NGO
Meaning It operates its
business for
generating more
profit for owner.
This type of
organisations is a
kind of legal entity
and operate for serve
society as whole.
This organisations are
work for offering
srevices and products
in context to welfare
of society.
Aim Its main aim to
generate more
income for the
entrepreneurs and
also their staff
members.
These firms are
mainly founded in
order to serve
environment as well
as humanitarian
needs.
Its aim is to promote,
commerce, science,
research and some of
the useful things.
Management Partners, Sole
proprietorship,
directors etc.
Governing bodies,
trustees and
committees.
Volunteers, funders
etc.

Scope and Size
Public organisation: Size as well
as scope of this organisation
depends on type of firm. The
main motive of public
organisations is to work for
welfare of the society and also
satisfying needs of consumers.

Continued...
Private sector- Under this,
main objective of this sector
is to generate more profit
and be a leading firm of
retail in all over world. This
sector contributes towards
an economy of United
Kingdom.

Continued...
Voluntary sector- It is a duty of social activities which are undertaken
through business firms and these are non- governmental and not-
for- profit. This sector comprises of business organisations whose
aims to advantages and enrich society without earning profit.

Conclusion
It has been concluded from the above given report that
business environment plays a necessary role in an
organisation. It is necessary that firm should determine all
those factors which develops negative impact on business.

References
Cassell, M. A. and Blake, R. J., 2012. Analysis of Hofstede's 5-D model: the
implications of conducting business in Saudi Arabia. International Journal of
Management & Information Systems (Online). 16(2). p.151.
Cavalcante, S., Kesting, P. and Ulhøi, J., 2011. Business model dynamics and
innovation:(re) establishing the missing linkages. Management Decision. 49(8).
pp.1327-1342.
Cronan, T. P., and et. al., 2011. Decision making in an integrated business process
context: Learning using an ERP simulation game. Decision Sciences Journal of
Innovative Education. 9(2). pp.227-234.

Thank You