An environment is defined as conditions around or more precisely something external to an entity. The business environment is the sum of all the internal and external factors and conditions relevant to the business (Fernando, 2011). To start a new business, the one willing to must have some basic idea or knowledge of the business environment and their constraints.
This assignment is about the demonstration of the knowledge about, business, business environment, organization, functions of organizations, types of organization their size, their scope, and their operations. And to use that knowledge for explaining one of your clients, that is willing to start a business, the basics of business, while serving for a small business consultancy firm in Qatar.
Types of Organizations
An organization is defined as a set of people grouped together to achieve some purpose while guiding the actions of individuals in order to accomplish a particular goal (Denhardt, 2011). In economy, there are three main organizational sectors, Public, private and voluntary.
The public sector is defined as the set of organizations that provide fundamental services to the public. These organizations are generally government-owned or funded organizations. Example of public sector organizations are Railways, Police Force, Roads and Highways.
Organizations and individuals, providing services and products with a primary goal to make some profit, are classified under private sectors. Example of private sector organizations are shops, industries, manufacturers etc.
The third type of sector is voluntary, neither government funded or public, nor profit based or private. They sit in-between them. Not so profitable for private and not affordable for the public, Voluntary sector usually has organizations like NGOs and Charities.
Size of Organizations
The characteristics of an organization depend upon its size. Organizations are classified as small medium large (Caplow, 1957) on the basis of their size.
Small size organizations are those having no more than 100 employees. They are usually owned by a single person. Decision making is largely done be owner itself. Have a smaller audience and limited development opportunities for employees are other main characteristics of small organizations.
Medium Scale Organization
Organizations, having a number of employees between 100-1000 are referred to as medium size organizations. Medium scale organizations are owned by single or multiple owners. Their decision making is done by owners along with key leaders. They have medium audiences but are limited to the industrial or geographical niche.
Large Scale Organizations
More than 1000 employees in an organization make it a large-scale organization. Large-scale organizations are mostly investor-based equity with professional management. Large term planning with a diverse global market.
Sometimes organizations are also classified on the basis of locality or span of their environment. The key classification of organization on this basis are:
- Local Organizations: Organizations whose organization environment is a small area or city.
- National Organizations: Organizations having an area of interest spanning to country level.
- International Organizations: Organizations having environment both in the country and outside the country, but they primarily focus on the country level.
- Multinational Organizations: Like international organizations, multinational organizations also have an interest in the country as well as outside the country. However, they focus on every country they operate.
Scope of Organization
Organizations have missions, visions, objectives and goals. Missions are the role and purpose of the organization. Scope, to fulfil the mission’s objectives, is defined as the activities related to the goals and purpose of the organization (Sutherland and Canwell, 2004). The scopes of organizations are defined in terms of what target to achieve, how to achieve, when to achieve, what audience to focus, how to focus on when to focus etc.
Analysis of Organizations
To properly understand, structure, size and scope of organizations, analysis of some organizations from Qatar are hereby given as an example. Three organizations have been selected for this purpose. Blue Salon, Ministry of Finance Qatar and Reach out to Asia. Analysis of the structure, scope and size of these companies are as follows:
Blue Salon is Qatar’s leading luxury departmental store. Founded in 1981, by Late Mr. Abdul Raheem Abu Issa, with a vision to bring international brands to Qatar, Blue Saloon is Qatar’s leader in Fashion. More than 5000 employees and 70 plus outlets throughout the middle east, Blue Salon is considered to one of the leading groups in the gulf (Blue Salon, 2018).
On analysis of Blue Salon, since the sole purpose of this organization is to earn the profit, it is found to be a private sector organization. The number of employees makes it a large organization and the scope of the organization is to represent international brands in the country.
- Structure: Private Sector
- Size: Large Scale – International
- Scope: Represent international fashion brands in Qatar
Ministry of Finance – Qatar
Qatar’s ministry of finance is founded in 1960. From drafting and implementing the budget to refining and managing the financial strategy of the state, the Ministry of Finance is the central body to represent the public finance and economy of Qatar (Ministry of Finance Qatar, 2018).
The analysis of Qatar’s Ministry of Finance, it is found to be a large-scale public organization, with sole interest in states financial and economic matters. The scope and objective of the organization are to observe and maintain states financial performance.
- Structure: Public Sector
- Size: Large Scale – National
- Scope: To regulates the financial policies of Qatar
Reach out to Asia – ROTA
Founded in 1995 by His Highness Sheikh Hamad bin Khalifa Al Thani, ROTA (Reach out to Asia) is a non-governmental organization working in more than 10 Asian countries. The sole purpose of ROTA is to provide high quality primary and secondary education to the needy people across Asia.
The non-profit structure of ROTA makes it a voluntary organization. With large numbers of volunteers and employees, it is said to be an international large-scale organization with a scope to provide quality education in Asia.
- Structure: Voluntary Sector
- Size: Large Scale – International
- Scope: To provide quality education to needy Asians
Organization structure is defined as the system of task and relationship that defines how the people in the organization coordinate organizational resources with their actions in order to achieve organizational aims and objectives (Aquinas, 2008). Business organizations are classified into four types on the basis of the business structure. A sole proprietorship is the first type of business structure that does not require any specific organizational functions. A sole proprietorship is a business organization that is run by a single owner. Partnership business structure is the type of business that is started by more than one person. Every member in partnership has equally liable for business activities. LLC or Limited Liability Company is the type of business structure that is somewhat in between corporation and partnership. Corporations are business structures that are separate legal entities with multiple shareholders.
Functions like human resources, sales and marketing, productions and operations, finance and accounts, administration and customers services are the one that defines the function of an organization. All these organizational functions are interrelated to one other to some extent. For example, marketing bridges the gap between the organization and the customers. Similarly, finance is related to the usage of organizational resources.
To start a new business or organization, or to achieve its goals, an organization should define its, aims and objectives prior to the step taken forward. It should consider its business function and select a business structure best suited to its need. A good mission, vision, scope, objectives and function can make an organization to function properly and purposely.
Aquinas, P. (2008). Organization structure and design. New Delhi: Excel Books.
Blue Salon. (2018). About Us. [online] Available at: http://www.bluesalon.com/about_us [Accessed 14 Oct. 2018].
Caplow, T. (1957). Organizational Size. Administrative Science Quarterly, 1(4), p.484.
Denhardt, R. (2011). Theories of Public Organization. 6th ed. Boston: Wadsworth/Cengage Learning.
Fernando, A. (2011). Business Environment. 1st ed. Chennai: Pearson.
Ministry of Finance Qatar. (2018). Ministry Strategy. [online] Available at: https://www.mof.gov.qa/en/Pages/Ministry-Strategy.aspx [Accessed 14 Oct. 2018].
Reach out to Asia. (2018). About ROTA. [online] Available at: https://www.reachouttoasia.org/en/aboutus [Accessed 14 Oct. 2018].
Sutherland, J. and Canwell, D. (2004). Key concepts in business practice. Houndmills, Basingstoke, Hampshire: New York.