This statement implies that an organization cannot simply be made up of a random group of people. If that is so, then we must ask what does make an organization. The first inference I draw from this statement, then, is that an organization must have a purpose. The organization must exist to serve some purpose that is important to its members.
A second thing that can be inferred from this statement is that an organzation does not need to be limited to a particular physical place. An organization can be any group of people who are associated with one another for a given purpose. In other words, having a common purpose is much more important than being in a common place.
So this statement implies that organizations must have purposes and that they need not be made up of people who are in the same physical place.