Types and Purposes of Organisations: Explained and Described

Business
And
Business Environment

Table of Contents
INTRODUCTION......................................................................................................................3
TASK 1......................................................................................................................................3
P1. Explain various types and purposes of organisations.......................................................3
P2. Describe the size and scope for range of different types of organisations.......................4
P3. Interpret the relationship between different organisational functions with their
objectives and structure..........................................................................................................6
TASK 2......................................................................................................................................7
P4. Identify the positive and negative impact of macro environment has upon business
operations, supported by specific examples...........................................................................7
P5. Determine the internal and external analysis of specific organisation in order to
determine the strength and weaknesses..................................................................................9
P6. Explain how strength and weakness interrelate with external macro factors..................9
CONCLUSION........................................................................................................................10
REFERENCES.........................................................................................................................11

INTRODUCTION
Business environment refers as the combination of internal and external surroundings
which develops intrinsic strength over weakness and extrinsic opportunities to overcome
threats. The project is based upon Tesla which is an American electronic vehicle and clean
Energy Company introduced by Nikola Tesla in 1856. The Elon Reeve Musk is an engineer
and technology entrepreneur which is the current CEO of Tesla organisation. This project
analyse the various types of organisation with description of its size and scope
(AGBOLADE, 2014). It further interprets the relationship between different organisational
functions through their objectives and structure. Additionally, this identifies the positive and
negative impact of macro environment on business by determining its internal and external
analysis for examining its strength and weakness.
TASK 1
P1. Explain various types and purposes of organisations
Business environment is classified on the basis of internal surroundings which include
suppliers, customers, competitors, public, market intermediaries and external surroundings
that involve political, economical, social, technological, legal and environmental factors.
There are various types of organisations which are running for profit, not for profit and non-
government business sector which are classified as under:-
Public Sector:- This refers as the enterprise which is most probably governed and
controlled by government through political leaders by focusing on public transportation,
education, infrastructure, health care, military services, etc. It focus on not-profit organisation
which are small business such as BBC, Automatic Weapons Establishment (AWE), British
Army, Environment Agency, NHS, etc., which produce products and supply services. From
the above prescribed UK public companies National Health Service (NHS) is selected as it
provide medicines for health and safety measures to help public. This organisation follows
rules and regulations of UK government through hospitality and medical centres by supplying
treatment facilities and healthy living which create opportunity for growth and stability of
business.
 Purpose:- The main purpose of public sector is to develop infrastructure for
delivering goods and services, acknowledging with education, distributing income
and welfare, etc. The purpose of NHS is to provide funds for healthcare facilities to
mainly dependent patients through keeping them healthy and fit.
 Legal Structures:- This sector mainly focus on legal and lawful structure that
involves local, state and central government which helps to run business socially. The
NHS is considered as Public Health England with directly commissioned services for
legally providing funds to social care (Aydiner and et.al., 2019).
Private Sector:- It is defined as the sector which does not involve the legal
regulations of government are mostly operated two or more entrepreneurs for maximisation

of profits. The aim of this sector is to fulfil the requirement of target market by producing
goods and services through least-cost effectiveness for enlarging customers. It focuses on
profit organisations which are large business such as Tesco, Tesla, Sainsbury, JCB, Mark and
Spencer, Morrison, Greenergy, etc. From the above mentioned companies Tesla is selected
for popularly known for its American electronic vehicle and clean energy company.
 Purpose:- The main purpose of this is to maximise wealth and profits by providing
employment more than the public sector. The main aim of Tesla is to accelerate the
world’s transition to sustainable energy (Bah and Fang, 2015). The goal of
organisation is to drive electric vehicles through proper quality, quicker actions and
more fun to drive for clients through luxurious and comfortable cars.
 Legal Structures:- This sector mainly focus on providing tax benefits for owners,
minimise liability which includes sole proprietorship, partnerships, joint ventures, etc.
The legal structure of Tesla is described in U-form which consist structural group of
employees for engineering, sales and services (Legal Structure of Tesla, 2019).
Voluntary Sectors:- This sector is also known as non-governmental business which
is non-profit making company running their business effectively. The main aim of
organisation is to perform their functions for providing services to social welfare. It focuses
on non-government organisations perform as medium-sized businesses that are National trust,
Oxfam, National council for voluntary organisation (NCVO), etc., works for social welfare
and charity. From the above prescribed UK public companies NGO is selected for its various
charities, child protection and social investment act in 1945.
 Purpose:- The main purpose of this is to provide benefit and enrich society while not
focusing on the motive of profit maximising without government intervention. The
main aim of NGO is to support public with human rights, environmental and health
protection.
 Legal Structures:- This sector mainly focus on unincorporated association, trust and
guarantee for public sector. It is most probably classified as small group with short-
term goals and low incomes. The legal structure of NGO usually practices charities
with hugely varied goals and motivation for wide variation in lawful activities
(Bardauskaite, 2014).
P2. Describe the size and scope for range of different types of organisations
The size and scope for different types of organisation which are classified as public,
private and voluntary sector have been mentioned below:
Public Sector (NHS):-
On the basis Explanation
Vision The vision of NHS is to deliver better facilities for health care
services and experience for patients.
Mission The mission of NHS is to improve health, well-being and
people’s experience to value excellence by clinical practice,
service improvements and innovation.