Types and Purposes of Organisations

Business Environment

INTRODUCTION
Business environment refers to internal as well as external forces that have influence on the
business activities. These factors mid range from policies of government to legal application.
These are very dynamic and ever changing with the time and fluctuations in the business world.
Organisations make plans and strategies in order to overcome the challenges possessed by such
forces. It is important to to increase the overall performance and sustain in the competition for a
long time. Business environment presence threats as well as opportunities for any business which
should be identified and evaluated. There should be effective management and strategies to use
the resources in changing environment so as to maintain the performance, increase profitability
and growth. In this report, TESCO has been chosen which is a British multinational groceries
and general merchandise retailer having its headquarters in Hertfordshire, UK. Furthermore, this
report covers different types and purposes of organisation such as public, private and voluntary
along with their size, scope and legal structures. In addition to this the relationship between
different organisational functions and their connection with objectives, identification of positive
and negative impacts of micro environment. These have been followed by an internal and
external analysis of a particular organisation together with SWOT analysis.
TASK 1
P1. Different types and purposes of organisations
Organisations can be established in public, private or voluntary sectors by considering the nature,
legal structures and other benefits. These sectors have their characteristics along with the benefits
and demerits which should be considered before establishing an organisation. Some entities in
the respective sectors have been provided below:
Public sector- This sector is associated with the government and provides a range of
governmental services example infrastructure, public transportation, public education etc. British
Broadcasting Corporation (BBC) is a public service broadcaster located in Westminster, London.
it is one of the oldest and largest organisation in the field having more than 22000 employees. Its
purposes are to provide impartial news and information with a view to engage the world and help
them understand. To support learning for people of all ages, to show most creative, quality

content and to reflect United kingdom by reflecting culture and values. It has been established on
the royal charter where an agreement is made between Secretary of State for Culture, Media and
Sports.
Private sector- This sector comprises of individuals and companies who run the organisation
with the motive to make profit. The government of the country does not hold or on any shares or
activities. In simple terms, there is no involvement of the government. In this category, TESCO
has been chosen which is a retailer in groceries and general merchandise. Is operating at
international level by making its present in many countries. Also, it is one of the leading and
successful companies in this industry. The main purpose of Tesco is to make profit by creating
value for customers to earn their lifetime loyalty. Also, to offer a wide range of products and
services from groceries, household products, clothing to insurance with a view to meet the
requirements of customers. It has been incorporated by forming MOA signed by its directors and
shares were subscribed by the shareholders. The directors hold the power to make decisions and
strategies which are applied within the organisation.
Voluntary sector- The entities in this sector half no profit making motive. It is entirely different
from private sector. It is directed towards the betterment of society and organisations are non
governmental nonprofit. Sometimes, it is known as the third sector, community centre nonprofit
sector. Oxfam as an organisation in which industry which is focused on eradication of global
poverty. It was founded in 1942 and comprises of 19 independent charitable organisations having
the same objective. It was registered in accordance with UK law. The headquarters are at
Nairobi, Kenya. The purpose is to help people earn a living and provide them basic necessities in
the situations of vulnerabilities. It supplies food and send children to school and stand against
injustice. The legal structure a not-for-profit limited liability company which forms council of
trustees.
P2. Size and scope of range of different types of organisation
The size and scope difference in all the three sectors which have been mentioned above. Every
organisation has their purposes which are based on the size and scope. These two factors have
been explain with reference to the entities presented above. These are as follows:
BBC- When this company was established, the services were limited to the regions of United
kingdom. After gaining success, it started broadcasting the news through television, radio and
online in 28 languages. Therefore, the scope is quite wide as it services are provided throughout

the world. It employees over 20000 staff in total in which more than 16000 hour in public sector
broadcasting. In addition to this, 35,402 are the individuals who are in part time, flexible and
fixed contracts.
TESCO- This organisation is one of the leading entities in the industry deals. Retaining services
of selling tea products and services is not just limited to the national boundaries of UK. There are
many markets in Europe and Asia along with USA where it sells the products and services. This
is to capture wide markets and make the position more stronger. It is planning to expand its
business in other countries as well for gaining a competitive advantage at international level.
According to the data provided by Tesco, approx 500,000 people are working in the company at
worldwide level. Also, it has around 7000 stores in different parts of the world.
OXFAM- This entity has wide scope which extends to all those people who are fighting
inequality to beat poverty together in different locations of the world. There are many countries
who have participated in the activities of Oxfam. It helps in providing dignity and opportunity
for underprivileged people. The working of Oxfam extends to who almost over 90 countries and
they all share six goals and vision working towards removing poverty. It has spent around 1.27
million dollar and read more than 22.2 million people as a part of long term development and
humanitarian assistance programs. Along with this, 5,300 people around the world are associated
with this organisation and there are 22,000 volunteers in volt who help in achieving the
objectives.
TASK 2
P3. Explain the relationship between different organisational functions
Organisational function refers to main process or set of activities which are undertaken by a
department or areas of a company. These may range from operations, human resources,
information, finance and many more. The relationship between these functions has been
provided as follows:
Marketing- The activities undertaken by marketing department about researching the current
requirements and demands of the customers. This unit provides valuable information which
helps organisation produced new products with enhanced quality in order to increase customer
satisfaction. Tesco has been improving in providing better services on the basis of data provided
by marketing department. This hurts the organisation to connect in a better way with the outside
world. It helps in achieving competitive advantage. Production department provides all the