Types, Size, and Purpose of Organizations | Desklib

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1: Different types, size and purpose of organization.................................................................3
P2: Size and scope of different organization...............................................................................5
P3: Relationship between different organizational functions .....................................................8
P4. Positive and negative impacts the macro environment has upon business operation..........10
P5: TOWS analysis of Morrisons to identify its strengths and weaknesses..............................12
P6: Relationship between external factors and strength, weakness...........................................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................16

INTRODUCTION
Business or organization is group of people gathered together for achieving a common
goal, it contains activities like exchanging of goods and services with money. Business
environment consist of factors which affect the operations in company, these factors may be
internal or external. Internal factors include shortage of workforce, communication within
departments and many other issues. External factors include changing market trend, customer
requirement and many more. Morrison is chosen for analysing relationship between various
organizational department. Morrison is the fourth largest supermarket chain of UK. This report
will evaluate different types of organizations and it will also check their scope. With that the
report will also analyse merits and demerits of interrelationship between various departments of
organization. Positive as well as negative impact of macro environment on organization will also
be examined by the report. Report will also analyse strength and weakness of organization.
MAIN BODY
SECTION-1
P1: Different types, size and purpose of organization
There are variety of types of organization with varied size structure having their own
purpose to operate in certain defined industry. Three different types of sectors are Public sector,
Private sector and Voluntary sector.
Public sector:-
It can be defined as the organization that are owned and operated by the government of
the country and that exist only to provide services to its citizens. It can also be said as
government and publicly controlled enterprises that deliver public goods and services(Lenaerts,
Kilhoffer, Akgüç ,2018).
Purpose
Purpose of public sector organization is to help the government of that country to
exercise social control on industry and trade for equitable distribution of goods and services. The
main purpose is to set up with the aim to provide services to public rather than making profits out
of them.
Legal Structure

As public sector refers to all the organizations and businesses which are accountable to
local and central government these enterprises are funded directly by the government of that
particular country. Just like private companies public companies are run by Board Of Directors
on behalf shareholders and also has and A.G.M where shareholders vote on certain key issues
relating to the company. Organization under public sector sells its share on stock exchange
prevailing in that country.
Example
For example National health service organization is public sector undertaking based out
of UK which is publicly funded healthcare organization with a vision to deliver better health,
better care and better value by providing quality care to every person every day which serves as
mission statement for NHS.
Private sector:-
This is the companies whose shares are not offered to the public and which are subject to
certain legal requirements. This is the companies held under private ownerships where the
business has a separate legal identity from the owners.
Purpose
Purpose of private sector undertaking is with the intention to maximize profits for its
shareholders and to become leading organization in their line of business. Private companies are
also focused in securing right kind of structure of organization which helps them in serving their
business interest( Raharjo, Eriksson,2017).
Legal Structure
Shares of the company can not be sold to public. Each share entitles its owner to 1 vote at
the time of companies Annual general meeting and also to share the profit of the company at the
time end of financial year known as dividend. Company is run by Board of directors who are
elected by shareholders which is being headed by the Chairman. Shareholder liability is limited
to the amount of investment they made.
Example
For example Morrison Supermarket is a private limited company which is fourth largest
chain of supermarkets in United kingdom where its vision is to enable its people to take
ownership of the products and work with the partners to ensure its sharing of vision with a