Business Organisations -Types, Sizes, Purposes, Structures, Functions and the Impact of Macro- Environment on the UK Retail Sector using PESTLE, SWOT & Porter's Five Forces Models

Types of organisations

An organisation can be classified on the basis of its business purposes, viz. vision, mission, goals and/or objectives (Kamugisha, 2017). All organisations generally have common purposes such as achieving profit, along with organic growth and long-term sustainability in the commercial arena. However, there are some organisations, which mostly dedicate their efforts to have sustainable business growth and not just to earn a business profit. Let us first identify the key differences between profit, not for profit and non-governmental organisations.

Profit organisation	Not for Profit organisation	NGOs
A profit-seeking organisation generally operates in the private sector, which only aims at supporting its own cause (En.wikipedia.org, 2018). A profit organisation can be of the following types: i)     Sole proprietor ii)                  Partnership based iii)      Public limited and private limited firms.  A Sole proprietor is a form of business organisation in which a single trader or individual operates a business with his/her own capital, skill, and knowledge and is entitled to have the entire profit or loss of the business (Shukla, 1952). A partnership form of a business organisation involves more than one individual, who bring in their resources to initiate their business (Claeys-Jackson, 2017). The drawbacks of the above-mentioned forms of businesses have led to the growth of joint-stock or limited liability organisation (Sharma and Gupta, 1992). Such an organisation has to be registered under the Companies House (King, 2018).	A not for profit organisation works mainly for the benefits of the society in which it operates. Such an organisation definitely strives to earn revenue; however, its objective is to fulfil a particular organisation mission (Leonard, 2018). This type of organisations is exempted from tax payment, unlike the profit organisations, which have to pay taxes out of its profit (Finkler et al., 2016). Ideally, this type of organisations receives its fund either in the form of donation or gifts from various sources.	The NGOs are formed to address the practice of disproportionate spreading of trade profits in various intensely iniquitous societies across the globe as well as to control the occasional denigrating tendency of trade rules on the progressive societal ethics, sustainable growth and human health (Hannah, 2016). They have surfaced out as major strengths for influencing the public policies and carrying out human services in various parts of the world (Bater, Hondius, and Lieber, 2004).

Discussion on business purpose and supply of goods and services

1.      Barclays PLC – a UK based profit-oriented investment multinational bank (En.wikipedia.org, 2018)

“Helping people achieve their ambitions – in the right way”- is the Barclays PLC’s mission statement (Home.barclays, 2018). We can infer that a profit organisation may not have only one business purpose of earning the profit, but also to serve their customers in the best possible manner. Without serving customers adequately, it will be difficult for such an organisation to maintain profitability. Any ethical and righteous profit-making the organisation knows how to place its customer ahead of all business goals.

Barclays PLC has other business goals, which do get changed in different business and political scenarios. In order to maintain its profitability, the bank has decided to reduce capital, operational expenses, and business complexities. In the last three years, they have closed down some of their existing units; forfeited their shareholding of Barclays Africa; disposing of more than 20 business units, and leaving their operation from twelve countries (ibid.).

In 2016, Barclays decided to operate through their two major divisions – Barclays UK and Barclays International (ibid.). Here the bank has a purpose to accomplish the needs of UK regulation in related to ring-fencing. As per this regulation, all the leading UK high street banks, including Barclays PLC will have to separate some of their retail and minor corporate banking services delivery functions, such as savings and current account deposits and payments, from the intricate, comprehensive investment banking activities as well as from specific delivery functions outside the UK and the European Economic Area (EEA) zones (ibid.). An organisation’s business objectives also decide the way it delivers its products/services to its end users.

2.      The Message Trust – a UK based nonprofit organisation

The vision of the Message Trust is to transform the lives of citizens by sharing the messages of Jesus Christ through artistic displays such as music performance; dance and theatre (see Message Trust, 2018). Their mission and goals are to help the students in several schools across the UK to develop their beliefs on Christian principles; to focus on lifting the spirit of deprived local communities and recreating a reliable community (ibid.). Let us now analyse on how they deliver their services in order to fulfil the above-mentioned organisational missions.

Functional aspects: They have collaborated with musical bands, theatre companies, special guests and various churches in order to create events. Such events are meant to attract a large number of young people, who come to hear the gospel message. They have even sent their teams to different schools in the UK, who have organised dance and pop music programmes to instil the message of the gospel in the minds of the pupil (ibid.). Apart from these social objectives, they also maintain their commercial objective by selling different items such as books, music albums, DVDs, posters, T-shirts through stores and online modes.

Sizes of Organisation

The size of business organisations in the UK is determined by the number of employees and the business turnover as shown below in tabular form:-

Micro	Small	Medium	Large
A micro the business organisation generally operates with less than 10 employees and having a business turnover below £2 million (Bamford-Niles, 2012).	A small business organisation has less than 50 employees with a turnover, not more than £5.6 million (Kushnir, 2006)	A medium business organisation has less than 250 employees and annual earnings below £50 million (Rhodes, 2017; Bamford-Niles, 2012).	A large business enterprise has 250 plus employees (Rhodes, 2017).

Discussion on the market share, profit share, growth and sustainability among different sized enterprises 

Micro, small and medium-sized business (MSMB) enterprises are more prevalent than the large enterprises in the UK private sector (Rhodes, 2017). In terms of business volume, the larger ones are having a business turnover greater than each of the different sized enterprises; on the contrary, the number of a micro business is even more than the rest of other sized enterprises (ibid.). Nearly 96% of UK businesses belong to the micro organisations (Gov.uk, 2017). The small business enterprise is more likely to have better sustainable business growth since they can incorporate any change more swiftly than the large enterprises (Stoner, Freeman and Gilbert, 1995). Majority of the MSMB consists of start-up business firms; whereas, the larger organisations are already established players (Oecd.org, 2018). MSMBs can ensure better economic growth, foster innovation and enhance employment in the European Union (Airaksinen et al., 2018). A large enterprise can generate a higher level of value addition in industrial manufacturing sectors; whereas, MSMB can develop higher capabilities in the service sector (ibid.).

Structures of Organisation

The organisational structure indicates a strategy-based approach through which an organisation’s functions are segregated, aligned, and synchronized with the association between managers and executives; between managers and managers; and between executives and executives (Stoner, Freeman and Gilbert, 1995).

Line/Hierarchical	Functional	Matrix	Product Organisation
A simple form of hierarchy is more commonly found in micro organisations, in which the proprietor is involved in different business functions (Lægaard and Bindslev, 2006). However, with the expansion of the organisation, more employees need to be hired in performing major functions, such as purchasing, accounting, staffing, etc. (Haynes, 1999).	In a functional form of organisational structure, certain precise functions that are common to all the departments, are allocated under one head, who is qualified enough to perform those functions (Shukla, 1952).	A matrix structure indicates the application of various ordering system. It is an attempt to combine the benefits of hierarchical and functional organisational structures (Stoner, Freeman and Gilbert, 1995).	Product organisational structure applies to those organisations, which have apparently separated product or services groups (Lægaard and Bindslev, 2006).

Complexities of Transnational, International, and Global organisation structures

Over the last three decades, globalisation has opened the doors of business opportunities for different types of organisations (Devereaux and Griffin, 2006).........TO READ THE REMAINING PORTION, KINDLY DROP ME VIA EMAIL - asi_gani@hotmail.com