Different Types of Organization
Each and every organization needs to implement the effective strategies and planning to accomplish set objectives and goals in effective manner. This report reveals the size, structure, business requirements and activities which needed to consider before incorporating the business entity. This report reflects the business challenges and issues which could be related to size and business requirements of the business and organization need. It is analyzed that every business entrepreneur firstly needs to analysis the business challenges and types before starting up new business. The main objective of this paper is to identify the reason behind the incorporating the particular type of the organization. This report reveals the size scope, objectives and interrelation between the type of organization and employees’ need. There are several types of organizations such as public, private, non-profit organization and sole proprietorship organizations which could be incorporated as per the needs and demand of the entrepreneurs. At the initial of this report, type of the organizations, size and scope have been discussed. After that the various parts, functions and department of the organization have been given. In the end, challenges, issues, recommendation and conclusion related to the incorporation of the particular sort of organization have been discussed. It is analyzed that the type of the organization incorporation should be based on the size of the business and its complexity throughout the time (Apple Incorporation. 2018).
With the changes in time, legally, there are five sort of the major organization which could be incorporated by the entrepreneur to set up a strategic business functioning such as public, private, non-profit organization and corporative charities. There are several examples which could be undertaken to describe the particular type of the organization. Tesco Plc is the public organization which is indulged in telecommunication business and having high amount turnover. Ideally, company is incorporated as public company which wants to raise capital by issue of shares and having complicated business. In case of private sector business, there could be private company such as Kiwi Import. This company is incorporated by the two directors who take all the imperative decisions to run the business effective. In addition to this, one person company is the type of company in which only one member is the whole sole owner and takes imperative decisions. The private organization is the best option to start up a new business when company wants to have less complication in its business process and strengthen its overall business outcomes. The Non-profit organization is incorporated for the particular social purpose and least care for earning profit from the market. The British Red Cross organization is one of the non-profit organizations which are indulged in offering its health care services to the clients in market. It is the most popular company having objective to serve society with its advance society’s oriented services in market. In addition to this, Private and Public organization both have their own objectives and purpose and incorporated for their particular purpose. It is analyzed that when company wants to raise capital from the public then it will have to go for public enterprises so that its shares could get listed on the stock exchange. However, public company has high legal compliance as compared to small organization. It is analyzed that if entrepreneur has small type of business then it would be better to incorporate private company.
Increasing Growth and Complexity of the International Business Environment
All the public companies are indulged in big business process such as CSR activities, financial planning and employee orientation work program. After assessing the annual report of one of the listed public company, it is observed that JB Hi-Fi Company is the top most company which is indulged in strengthens the business outcomes. It is analyzed that JB Hi-FI Company has to manage its CSR activities program, sustainability business practice and strengthen the business program (De Deyne, Verheyen, and Storms, 2016).The main objective of this company is to align the interest of the stakeholders with the organization development. This company has to comply with the listing and other applicable corporate law and regulations if it wants to sustain its business in long run. On the contrary to that, when entrepreneurs are having small business ideas then they are indulged in incorporating the one person company or small sole proprietorship. This is developed so that it could help entrepreneurs to keep the business legally different from its owners. It is done to make the liability of the owners limited. In addition to this, it is hard for the private company to raise capital from the market due to the high legal compliance and corporate governance program. Furthermore, sole proprietorship company is also having its disadvantage as it is very small in nature and at certain limit of time, it may requires organization to convert into private and public organization.
The international business environment has been changed throughout the time. It is analyzed that if company wants to have growth in its business then it must focus on tapping the new international market. It has been observed that countries like UK, US and Australia have been showing high growth in their GDP rate and purchasing power of the clients. These are the positive indicator for the organizations who wants to tap international market for the business expansion. In addition to this, Asian Countries are also revealing high amount of growth in its business. It is analyzed that international alliance and strategies are the base for the international business. For instance, Apple Incorporation enters into the strategic alliance with other organizations so that it could cover international market with its highly advance electronic products. It has been observed that Apple incorporation has focused on the Asian countries and Australian market to strengthen its business on the international market. It has been observed that if company wants to grow effectively in market then it must focus on strengthen the international business strategies. It will not only increase the turnover and profitability but also strengthen the brand image of company on international level. The international alliance and business expansion are the best international strategies to tap the international market.
There are several types of organization such as public, private, non-profit organization and sole proprietorship organizations. However, in this, we could take example of Apple Company which is indulged in offering advance tech products and services to clients in market. It is analyzed that this company has increased its market share by expanding its business in international market through online and offline business ventures. The main focus of this company is to strengthen its market share by creating core competency in product differentiation strategy. In this strategy, company has been offering standardized quality phone products in market which increases its sales in market (De Deyne, Verheyen, and Storms, 2016).Explain different types and purposes of the organizations; public, private and voluntary sectors and legal structures.
Size and Scope of the Various Types of Organizations
The main purpose of incorporating the business is to earn profit from the undertaken business strategies. It is considered that if company wants to sustain its business in long run then they will have to customize their products and services as per the client’s needs and demand. It may include introducing the new product line and strategies. Company may use the international strategic alliance and new product line which ay includes redefining the product and service lines. In addition to this, there are several types of the organization such as public, private, non-profit organization and sole proprietorship organizations.
Public organization- It is incorporated when company wants to operate its business on big level and having high complexity. There are several examples of the public companies such as JB Hi-Fi Company, Tesco and Wesfarmers (De Deyne, Verheyen, and Storms, 2016).
Private company- It is the small organization which is incorporated when there is less business complexity and owners of the company wants to keep their business separate ownership and legal entity. It may include Kiwi Impart Private limited
Non-profit Organization- This organization is being incorporated for the social objectives and not for earring profit purpose. It reveals how well company could align the interest of its business with the organizational development. It is less concerned about the profit and more of satisfying the stakeholders. It includes such as British health care society and Red Cross care organization (De Deyne, Verheyen, and Storms, 2016).
One person company- This Company is incorporated when owner of the company wants to create separate legal entity and also wants to have whole sole ownership. There is requirement of one director to run and operate the business in market.
The Apple Company operates its business on international level and demographically it has been changing its technologies and adding advance features in its business cycle. In addition to this, despite of the international financial crises, this company has been winning over the market with its product differentiation strategy (Ashkenas, et al. 2015).
1. In order to identify the size and scope of the range of the different types of organization, we have to analysis all these different organization (Moore, Aitken, and Semple, 2015).
Public organization- It is considered that public companies such as JB Hi-Fi Company, Tesco and Wesfarmers are the example of the public limited organization. There is no certain size for these companies but these companies need to have at least 7 directors and all the legal compliance and corporate governance program. If these public companies are listed then they will have to comply with the applicable listing rules and regulations (Reid, et al., 2015).
Private company- It may include Kiwi Impart Private limited. The minimum size of this company is that it requires at least 2 members and 2 directors to run the business in market. This business is incorporated when company wants to sustain its business on international level.
Non-profit Organization- this organization includes such as British health care society and Red Cross care organization. It is analyzed that these companies are indulged in serving to society and less inclined towards earning profit from the market. This company is exempt from paying income tax to government and do not distribute the profit among its members. This company has to follow society legal compliance program if it wants to sustain its business in long run (De Deyne, Verheyen, and Storms, 2016).
One person company- It is the small company which is incorporated with the single member. This company is promoted when the owner do not want to share his ownership with other business owners. It is analyzed that one person company has less complexity and it is easy for operating the business (Apple Incorporation. 2018).
The limited companies:
The limited liability company is noticed by the corporate association. The main reason behind creating the limited liability company is based on its separate legal existence of company. The Apple incorporation is the international company which is offering highly advance tech products and services. This company has been tapping the new market with its high quality tech goods in market. It has set up strong corporate legal compliance program which has strengthened its legal brand image on international level. Company has been holding annual general meeting since very long time. It has several sub units of the company (Ashkenas, et al. 2015).
The scope of the organization is depending upon the products and services sold in the market. For instance, scope of the selling the high tech goods, machines and mobiles phones are the some of the core products sold by the company. This company has increased its overall turnover and profitability by 24% since last three years. It shows the positive indicator for the business growth of the company (Shafritz, Ott, and Jang, 2015).
This company has mission to satisfy its customers for all its advance products and service. This company has created core competency in product differentiation by offering high quality phone products and advance technologies gazettes in market.
This company wants to become the biggest mobile phone company by offering highly advance featured mobile phones in market (Young, and Ghoshal, 2016).
Analyzing how structure, size, and scope of various types of organization are linked to business objectives and the products and services offered by the organization
With the ramified business growth and expansion, every organization needs o align the structure, size, scope and business activities with its business objectives? It has set up strong correlation between organizational structure, size, scope with the objectives and goals. It is analyzed that due to the complex business organization and structure company needs to manage its business structure. Apple Company has followed decentralized business structure in which functional, Human resource management, Information technologies and matrix organization functions are handled. It is analyzed that the research and development department of the Apple Company is highly strong. The public limited company has to comply with the listing and corporate law requirement if it wants to sustain its business in long run. It is considered that matrix project functions are undertaken if company is facing high complexity and issues in its business process (Baily, 2017). The main owners of the company are its shareholders who have invested capital. In addition to this, all the employees and staff members of company are accustomed to act as per the directions and instructions of the chief financial officer of company. It has more htan 15 directors in its business functioning who takes all the imperative business decisions.
This public organization is accompanied with the large and big organizational activities which are aligned to earn good amount of profit. The scope of company is to create strong brand image on international level and satisfying its clients (Kwasa, Bloebaum, and Mesmer, 2015).
2. After assessing the annual report of company it is considered that the size, scope and organizational structure of the company are based on its set objectives and goals. If company is having high profit and turnover and also facing high complexity in its business project functions then it will have to incorporate the public limited. Entrepreneurs who are having objectives and vision to render benefits to society and less interested in earning profit then they should go for incorporating the non- profit organization (Kanten, Kanten, and Gurlek, 2015). Apple incorporation is the international public company which has motive to earn profit from its business activities. It is considered that due to the high complexity in its business process it has been incorporated as public limited company. At the same time, Red British organization has been incorporated as non-profit organization which is indulged in providing benefits to society. This shows the scope and objectives which are considered by the company before starting up new business. The structure of the company is based on the complexity and work functions of the organization. On the other hand, scope of the organization is set as per the objectives and goals. It is analyzed that Apple Company has been following decentralized business functions in which all the decision and strategic planning is being made by the different line managers of the process (Thies, Zdrallek, Schwan., and Ettinger, 2014).
Source:- https://research-methodology.net/apple-organizational-structure-a-hierarchical-structure-that-may-change-in-near-future/
It is considered that Apple Company is being accustomed to act as per its chief executive officer. It has several functions and activates which are managed by the organizational managers. It is analyzed that it has strong cyber computing system and managing team members. It has created core competency in market as the research and development of the company is unique (Kwasa, and Kannan, 2015).
There are mainly five departments such as top management department, process level department, matrix management, HRM management and other departments. This company is accompanied with the highly complicated activities in which all the decisions are taken by line manages. All the functions and activities of the organization are interlinked with each other and managed by the strengthen enterprises resources planning and IT system.
Advantages and disadvantages of the interrelationships between various organizational functions and its impact on the organizational structure
Advantages:
- It is analyzed that company has aligned the interest of the employees with the organization’s development. It has strengthened the communication channel which will help in creating the core competency in business.
- All the employees of the company is interlinked and supported by the matrix project managers.
- The HRM department of company is indulged in hiring and recruiting the employees.
- Company has been taking advantage of highly experience employees and interlinked communication department which helps it to create synergy in its business process.
- It has also set up strong alliance with other organizations (Kwasa, and Kannan, 2015).
The main disadvantages of interlinked functions are that it increases the intruders in process which slow down the process of organization. It also restricts the process to grow due to the legal consent and meeting process. If Apple Company fails in its research and development department and enterprises resources planning communication system then it might result to high loss as all the system process is accompanied and interlinked to each other (Thompson, 2017).
Conclusion
It is considered that in order to operate the business, there is need to give legal existence to the business organization. In addition to this, it also helps in creating the better output and strengthens the overall output in effective manner. The advantage and disadvantages of the particular type of the business is based on the complexity, objectives and requirement of the capital in business. It is analyzed that there are several losses if entrepreneur creates private company as it not only increase the liability of the owner but in terms of the brand image, private company is less considered less trustworthy and less sustainable in market.
References
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