Business Environment: Types, Purposes, and Size of Organizations

This report provides an overview of the business environment, focusing on different types and purposes of organizations. It begins with an introduction to the business environment, highlighting key elements like management, employees, and regulations. The report then delves into various types of or...Read More

Business EnvironmentBusiness Environment
TASK 1 (P1, P2)

Covered ContentCovered Content
 Introduction
 Different types and purposes of organisation
 Size and scope of various types of organisation
 References

Introduction
Business Environment comprises various macro and micro
elements such as management, employees, customer and
business regulations that influence on organisation's
performance. It is necessary that administration makes
system function appropriately and deliver adequate items
and services in marketplace.

Different types and purposes of organisation
 Market comprises various types of organisations which
are operating their business to generate adequate revenue
and accomplish their desires.
 It is essential that administration of companies make
system function in respect to their sector.

Basis of
Comparison
NGO NPO For Profit
Meaning NGO stands for Non-
government associations;
these are firms whose main
goal is to provide services
for welfare of society.
Independent and common
people conduct activities to
make firm function
appropriately, they need to
utilise resources and deliver
appropriate items in
marketplace.
Non- profit
organisation are
corporations which
provide variety of
products and
services to public.
Management deliver
items to improve
market situations and
here profit is also not
distributed among
investors.
These are firms which
are constituted by
individuals to deliver
adequate goods and
services in market so
as to generate
appropriate amount of
revenue.
Area of
Operations
Large Limited Large as well limited
Objectives These are companies whose
prime objective is to
develop society and conduct
operations to improve
economy's conditions.
These are firms
which are evolved
which comprises
goal to encourage
science, art and
commerce concepts.
Their main motive is to
grab attention of large
number of clients to
generate sufficient
profit and revenue for
business.

Cont...
Public Sector: These are companies which are formulated by
government and its structure is made by them as well.
 Purpose: This sector includes firms which are constructed and
established in marketplace to evolve economy of nation in
which business operations are conducted.

Cont...
Private Sector: This segment includes firms whose structure
need to framed on basis of guidelines and arrangements.
 Purpose: This kind of sector main objective is to
acknowledge needs and wants of people; thereby provide
efficient products and services to customers.

Cont...
Voluntary Sector: These are organisations which are
established by individuals to conduct appropriate business
activities for society's welfare and incur adequate monetary
components. Oxfam, which is an intentional division firm is
part of this segment.
Purpose: Management of this sector is to enhance standards of society and
develop it in according to need and wants of people.

Size and scope of various types of organisations
Companies vary on basis of scope, structure and objective;
which is discussed beneath:
 Micro scale
 Small scale
 Medium scale
 Large scale

Cont...
Micro Small Medium Large
This type of scale
business main aim
is to carry out
activities through
which executive
are able to get
financially secured
within society and
adequate income
for their livelihood.
This sector
includes firms
whose prime
motive is to
regulate good and
healthy lifestyle.
Apart from this, it
is essential that
administration
make system
function through
which they are
able to utilise
market
opportunities.
This kind of sector
specifies that main
purpose of these
segment
organisations is to
construct global
leader. For this, it
is necessary that
business is
expanded within
international
market.
In this sector,
prime focus of
companies is to
establish
sustainability and
structure economy
in according to
market situations.
This benefit firms
to enhance market
image and
goodwill.

Cont...
Scopes of different types of organisation are stated beneath:
 Micro Scale
 Small Scale
 Medium Scale
 Large Scale
 Transactional Scale

References
 Rong, K., Hu, G., Lin, Y., Shi, Y. and Guo, L., 2015.
Understanding business ecosystem using a 6C
framework in Internet-of-Things-based sectors.
International Journal of Production Economics. 159.
pp.41-55.
 Doh, J., McGuire, S. and Ozaki, T., 2015. The Journal
of World Business Special Issue: Global governance
and international nonmarket strategies: Introduction to
the special issue. Journal of World Business. 50(2).
pp.256-261.

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