Different types and purpose of organizations: public, private and voluntary sector and legal structure

This document provides an overview of the different types of organizations - public, private, and voluntary sector. It explains their purpose and legal structure. It also discusses the interrelationship among different organizational functions and the positive and negative impacts of the macro environment on business operations. The document is based on the analysis of the supermarket industry and includes examples of companies operating in this sector.

Business and Business
Environment
1

Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Different types and purpose of organizations: public, private and voluntary sector and legal structure
.................................................................................................................................................................3
P2 Size and scope of a range of different types of organizations.............................................................6
TASK 2.......................................................................................................................................................9
P3 Relationship among the different organizational functions and how they link to organizational
objectives and structure...........................................................................................................................9
TASK 3.....................................................................................................................................................10
P4 Positive and negative impacts of macro environment.......................................................................10
TASK 4.....................................................................................................................................................12
P5 Internal and external analysis of organisation in order to identify strength and weaknesses............12
P6 Strength and weaknesses of organisation with external environmental factors.................................14
CONCLUSION.........................................................................................................................................16
REFERENCES..........................................................................................................................................17
2

INTRODUCTION
Business is considered as an organization system at which products and services are
develop as well as exchange in order to generate money and other benefits at the marketplace.
Business environment is determined as a situation related to internal as well as external business
environment which impact on the business operations and functions properly. For every
company it is essential to conduct analysis of business environment because through that they
able to understand situation as well as able to gain competitive advantages at the potential
marketplace (Alles and et. al., 2018). Moreover there are several types of organization according
in which a company set their business accordingly. The respective report is based on the
supermarket industry in which there are numbers of companies are operating such as Aldi, Marks
and Spencer, TESCO and many more. The respective report is based on the analysis of
supermarket or retail industry as well as includes evaluation of business environment. Topics
include in respective report are different types, scope and size of organizations, it also include
interrelationship of the various functions in a company and how it link to structure of company.
Moreover, topics are also include in it are positive and negative impact of macro environment on
business operations and functions of a company. Respective report will also include internal
strength as well as weaknesses of a particular business as well as there is explanation of
interrelationship with external macro factors.
TASK 1
P1 Different types and purpose of organizations: public, private and voluntary sector and legal
structure
Private organization
Definition Private company is considered as kind of business unit whose
functions as well as practices are conducted in order to generate
profits at potential marketplace (Bob, 2020). Example – ALDI –
It is a private company which is operating in United Kingdom and
other nations as supermarket. It is introduced by Karl and Theo
Albrecht in 1946. They offer wide range of household essentials,
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food and beverage products and sanitary items.
Purpose The primary aim or purpose of ALDI is to provide quality
products to the potential customers so that their standard of
leaving gets increased. Moreover respective company offers their
products at the reasonable price so that they attract and retain
more customers for long time as well as it will also help them in
gaining competitive advantage.
Legal structure The legal structure of respective company is corporate
governance. In respect of this they conduct interaction with the
different stakeholders for identifying their need, expectation and
requirement for attaining desire goal impressively (Boons and et.
al., 2013).
Products and services Respective company offer huge numbers of products range
related to household essentials, food and beverages, sanitary
products and so on.
Public organization
Definition Respective sector is considered as those organizations which
owned as well as operated by government as well as present to
provide services or facilities to the society or citizens. For
example – NHS (National Health Service) – It is a business which
is operated under government as well as they are engaging in
providing medical facilities to the society (Brennan, Canning and
McDowell, 2020). It is introduced in 1948 as well as they are
nested in almost all regions of United Kingdom such as Northern
Ireland, Wales, England, Scott land and many more.
Purpose The primary purpose of National Health Service is to serve proper
health care services and facilities to the society as that will help in
improving their conduction successfully. The respective company
offer quality medical services at the affordable price for ensuring
that there will be proper living environment.
Legal structure Respective structure of National Health Service is of high level
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because they are conducting their business at the multinational
level as well as them also ensuring that they adopt every policy
and procedure in effective manner. They also include guidelines
of government while developing decision for the workplace.
Products and services The products and services which are offer by National Health
Service are related to healthcare as they want to build a world
with healthy environment (Brillinger and et. al., 2020). In
addition to this respective company products and facilities are
available at the affordable price so that everyone can evil it
properly and effectively.
Voluntary organization
Definition It is also known as voluntary union and voluntary group. It is
considered as type’s organization in which group of people comes
together by an agreement in the voluntary form in order to
achieve goal related to social service in impressive way. For
example – Oxfam – It is known as organization which is
combination of approx 20 independent charitable firm or group
which primary focuses on minimizing poverty around the world.
It is nonprofit company operating from 1942 and it is established
by Cecil Jackson Cole.
Purpose The primary aim of respective company is to determine as well
as develop ways through which poverty can be minimizing from
around the world so that each and every person will leave
properly and effectively. Moreover they also work for aware
people about their rights in the society.
Legal structure Respective company is conducting operation as the social workers
who want to minimize poverty from the world as well as for these
members of firm develop plans, strategies and ways (Cross and
Miller, 2020). The legal structure of respective company includes
trustee, donors, associates, communities and so on.
Products and services Oxfam over their services as well as products in order to
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minimize poverty situation from the world so that every person
leave happily and equally.
P2 Size and scope of a range of different types of organizations.
Product and Services Size and scope Vision Mission
National
Health
services
This is a public
organization that is
facilitating various
Healthcare services in
sectors of medicines and
they are also providing
facilities of test at very
reasonable cost for the
public. Apart from this
they are also offering
reasonable services in
the optical and Dental
Care (Carolei, 2018).
Managers is a very
large organization
and it is
supported by
government becaus
e it is a public
organization there
catering to the
population of
approximately 54
million and they are
also having people
that are
approximately 1.1
billion in this
organization. They
are approximately
catering to 1 million
patients in 36 hours
and also involving
the routine checkup
and regular
treatments of such
people
The vision of
NHS is
dependent on
basically
3 objective that
is creating
better care for
people by
providing them
higher value
and better
health
Mission NHS is
working towards
a mission
of facilitating a
quality care for
better health of
people.
ALDI ALDI is providing ALDI is having Vision of this The overall
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Product that is household
products, sanitary
products, essentials and
many more.
approximately
30 mm working that
are working in UK.
They have more
than 10000 stores in
20 countries such
as Austria
Spain and
Switzerland. They
are also planning
for recruitment of
more than 500
workers in their
new stores that is
around 80 in
number
(SABBENA and
JAMES, 2018).
organization is
to enable all
the Australian
Shoppers to
create a
higher standard
of living and
also provide
high quality
products at
reasonable
prices so that
people have
opportunities
to purchase
their daily
requirements at
high quality
and low prices.
mission of ALDI
to ensure that
people are
spending a letter
and they are
having more
quality products.
The major
mission is to
facilitate high
quality product
creation at lower
prices so that or
society can have
access to standard
of living.
Specially worked
for those people
who have been
associated with
the
organization since
long time so that
there
are requirements
can be fulfilled in
the Limited
period of time.
Oxfam Oxfam is
organization that
is dealing with providing
Oxfam is having 20
charitable
organisations that
The vision of
Oxfam is to
create a world
Mission of
Oxfam is to help
in development of
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human services to lower
segment of society
and they are
also suffer supporting for
the areas that are prone
to natural disaster like
drought prone and
famine prone. They also
have a intention to deal
with the situations of
poverty that
is providing across
different parts of
the world they are
willing to sell their
products and services at
fair prices so that people
are able to deal with the
natural calamities and
are able to survive
in such an certain
situations.
are working for
reduction of poverty
in different parts of
the world (Salamon
and Sokolowski,
2016)
.
that is poverty
free and
develop a
scenario that
can help all
people in
dealing with
adverse
situations that
have taken
place with
them.
solution for all
the areas that is
dealing with
poverty and they
are also having
some
International
movements for
making a future
that is free of
poverty (Taiwo,
Lawaland Agwu,
2016).
TASK 2
P3 Relationship among the different organizational functions and how they link to organizational
objectives and structure.
In a company there are several departments who work together for the attainment of
desire goal and objective. For management it is necessary to manage each and every department
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in the effective manner in order to conduct work properly in the potential marketplace. In respect
of ALDI which is operating in retail industry they have numbers of departments who all work
together for the attainment of desire goal and objective (Draijer, 2020). These all departments
perform several role and responsibilities so that they can their desire goal. Below some of the
interrelationship among the different organizational functions are mentioned:-
 Marketing and finance department – The main function of the marketing department is
to promote the business operations and offering in potential customers so that more and
more audiences get encourage conducting purchasing. On the other hand the main role
of finance department is to take care as well as management finance of the company so
that they conduct their work in effective manner. These both departments work in
interrelated manner because through that they can attain their desire goal and target
successfully. The finance department of ALDI provides finance according to which
marketing department conducts their promotional as well as advertisement activities. In
addition to this, if marketing department of respective company required funds they will
propose the amount in front of marketing department. Through this effective
interrelation respective company able to conduct their operations and functions in
effective manner.
 Research and development and Marking department – The role of research and
development department is to conduct regular research or analysis of market as well as
workplace as that will provide support to management for the decision making.
Moreover it will also help in conducting marketing activities in innovative and
impressive manner (Haselton and Van Hise, 2020). On the other hand, role of marketing
department is to conduct promotion activities in attractive way for which they contact
with research and development department for knowing new trends. In respect of ALDI
their marketing department also contact to research and development department when
they want to know feedback or reaction of audiences in respect to their products,
services, advertisement, brand name and so on. In respect to interrelation of both
departments respective company able to attain desire goal and objective.
This show that all departments are essential for a company because through that they
able to attain their desire goal as well as objective in effective manner. In respect of ALDI their
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all departments work together or interrelated manner so that they attain their desire goal as well
as aim successfully (Hilton and Platt, 2013). Moreover proper and effective interrelation among
the department leads to attainment of predetermined target impressively as well as on timely
manner. In this all departments like human resource, finance, operations, marketing, research and
development and many more work interrelated for successful attainment of goal.
TASK 3
P4 Positive and negative impacts of macro environment
Macro environment is considered as external factors which are generally uncontrollable as
well as it impact on the decision making process of a firm in both positive as well as negative
way. This factor may include factors like competition, political condition, economy, technology
change, social change and many more. For understanding macro environment companies
operating in supermarket sector may conduct PESTEL of United Kingdom, which is mentioned
below:-
 Political Factors – Its is determine as factor which include different factors related to
government policy, labour law, foreign trade, instability, political stability and many
more. In June 2016 Brexit take place due to which numbers of people leave United
Kingdom which directly impact on their political conduction and retail industry.
o Positive Impact – United Kingdom is politically stable which provide
opportunities to the supermarket industry to conduct their business effectively and
grow business (Iglesias and et. al., 2020).
o Negative Impact – There is frequent change in the political laws of a United
Kingdom due to which supermarket industry need to conduct change accordingly.
 Economic Factors – It is considered as factors which are directly related to the economy
of nation such as economic growth, exchange rate, income of a person, inflation rate,
deflation rate, interest rate and many more. it is generally seen that in United kingdom
during the peak time demand of supermarket products get increased but in last three years
demand get decreased due to slow restoration of economy. Due to this situation
respective industry bear huge loss.
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o Positive Impact – When nation economy get increase people economy also get
increased which enhance their purchase which leads to respective industry sales,
profit and market shares.
o Negative Impact – Due to decrease in nation economy society or people economy
also get decrease which impact of the supermarket sales and profit ratio.
 Social Factors – The respective factor considered shared attitude as well as beliefs of
society (JIAO and XU, 2020). This factor will include age, health consideration, gender,
distribution, culture and many more. For surviving in market a company need to adopt
social factor essentially for the decision making. In context of supermarket in United
Kingdom offer products according to customer or society demand.
o Positive Impact – In current time need and demand of society is increasing which
leads to more profit for supermarket industry as their sales get increase as well as
it also provide opportunity to grow business in different locations.
o Negative Impact – There is frequent change in the society need and demand
which is challenging for the United Kingdom supermarket industry.
 Technological Factors – It is one of the main external factors which impact on the
company business operations and functions. Through this a company able to adopt new
technology for the production as well as for managing work. People of United Kingdom
encourage the use of new technology and it also attracts them.
o Positive Impact – By adopting technology respective industry companies able to
save their time as well as conduct proper quality work which help them in
attaining desire goal (Laudon and Traver, 2016).
o Negative Impact – Implementation of technology leads to decrease in demand of
labour which increase ratio of unemployment at the United Kingdom.
 Environmental Factors – The respective factor provide guideline that a company need
to consider environmental aspects while developing decision as that will help in
decreasing carbon footprint, pollution and soon. Moreover, it will also include some other
factors like climate change, weather, and environment and so on. At United Kingdom
supermarket business get impacted as they need to consider all rules and regulations.
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o Positive Impact – United Kingdom supermarket implement environmental laws
which increase their goodwill in marketplace as well as it will also increase
loyalty of customers among the specific supermarket.
o Negative Impact – For UK supermarket it is not follow to adopt each and every
legislation related to the environment as it leads to increase in expenses.
 Legal Factors – It is considered as rules, regulations and policies which are developed
by a government for providing guidelines to companies (Markou and et. al., 2020). This
will include factors like copyright, patent, consumer protection, antitrust and many more.
Supermarkets operating in United Kingdom need to consider all legal factors so that they
conduct business properly and effectively.
o Positive Impact – By adopting every legal legislation supermarket able to conduct
their business operations and functions in the effective manner at United
Kingdom.
o Negative Impact – There are various laws which a company needs to adopt which
is conducting its business in supermarket industry which is not possible to
implement.
TASK 4
P5 Internal and external analysis of organisation in order to identify strength and weaknesses
For every company it is essential to conduct analysis of internal environment because
through it they can develop proper strategies and plans for attaining goal (Newman and et. al.,
2020). There are several methods through which a company can conduct analysis of internal
environment. In respect of ALDI they adopt two models or analysis for analysis internal
environment, both are mentioned below:-
SWOT Analysis
Strengths Weaknesses
 Aldi is well known supermarket chain
which offer quality products and
services in the affordable prices which
attract customers.
 Respective company is still not much
competitive in comparison to some
multinational supermarkets like
TESCO.
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 Respective company offer wide range
of products according to customer’s
need, requirement and expectation at
their several stores.
 Respective retail store has very strong
presence in the market of Germany as
they have nearby 2500 store there.
 This store also has strong or huge
presence in the marketplace of Europe
and other nations.
 ALDI retail store also have very limited
or less presence in the global market
which impact their operations (Sinha,
2020).
Opportunities Threats
 Respective retail store has opportunity
to expand their business in the global
marketplace like Asia, Africa and many
more.
 ALDI may also adopt more effective
technology for offer innovative
products to attract customers.
 Respective company goes through
competition from competitive
companies such as TESCO, Amazon,
LIDL, Walmart and many others.
Porter’s five force model
 Bargaining power of customer – In respect of ALDI power of customer will be high
because in the market there are numbers of companies which offer same kinds of
products in the affordable price. Due this customers can easily switch from one company
to another as well as it impact on making loyal customers.
 Bargaining power of suppliers – The bargaining power of ALDI supplier will be
moderate because they offer grocery, fruits and vegetable which numbers of suppliers are
available in the market (Vilčeková and et. al., 2020). Moreover they also develop as well
as maintain effective or proper relationship with their supplier which helps them in
getting products in proper or less price.
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 Threat of substitutes – For respective company threat of substitutes will be high because
there are numbers of companies in the marketplace where similar kinds are products offer
and at almost same price (Vo and et. al., 2020). So the threat will be high because if
customer not find any products at ALDI they can easily switch to another.
 Threat of new entry and exit – In respect of ALDI threat of new entry and exit will be
low because Respectrive Company has strong market presence as well as they is
operating at the high level which is not easy for new company to touch their business in
less time.
 Competitive rivalry – The competitive rivalry of ALDI is high because there are several
other companies operating in the same industry and offer similar products such as
TESCO, Walmart, Amazon and many more. These company impact on respective
company business and attaining competitive advantage.
P6 Strength and weaknesses of organisation with external environmental factors
External environment is considered as analysis of macro environmental factors which
impact on business operations and functions as well as these forces are not in control of a
business. In this management need to develop proper strategies and plan for handle external
environmental factors effectively for the attainment of desire goal as well as target successfully.
In respect of United Kingdom supermarket they need to consider macro environmental factors as
well as they also need to consider its strengths and weaknesses. Evaluation of it in respect of
United Kingdom supermarket is given below:-
 Political Factors – It will include factors like tax rate, interest rate, policies of
government and many more. For UK supermarket it is essential to adopt political factor
but it has both negative and positive aspects.
o Strength – United Kingdom political condition is stable which provide
opportunity to supermarket to conduct their business properly and effectively to
maximize profit successfully (Wu, Zhang and Lu, 2015).
o Weaknesses – Supermarket of United Kingdom conduct import as well as export
which sometime get expensive due to political condition and laws.
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 Economic Factors – This factor will include elements like income, interest rate,
inflation, exchange rate and many more (Zhu, Wang and Nastos, 2020). It is essential to
adopt economic factor for conducting business of supermarket in United Kingdom.
o Strength – The economic condition of United Kingdom is strong which provide
opportunity to supermarket to increase sales by attracting customers through
offering quality products.
o Weaknesses – Sometime inflation arise due to which there is decrease in sales of
supermarket at the United Kingdom.
 Social Factors – Respective factor will include gender, age, demography, customer
demand and need and many more factors. The positive and negative aspects of social
factor in respect of UK supermarket are mentioned below:-
o Strength – Supermarket of United Kingdom offer quality products which increase
their sales and profitability ratio.
o Weaknesses – The taste, need, requirement and preference of customers change
regularly which impact on business operations and functions of supermarket.
 Technological Factors – By considering this factor a company able to improve their
operations and management in effective manner. It will also have some advantages and
disadvantages.
o Strength – By implementing innovation and advance technology supermarkets of
United Kingdom able to attain their desire goal by improving their work quality
effectively.
o Weaknesses – Due to implementing advance technology respective industry loss
several skilled, talented and experienced employees as well as it generate
unemployment rate.
 Environmental Factors – The respective aspect include factors like climate change,
weather, environmental law and many more (Zhu, Wang and Nastos, 2020). It also has
several strength and weakness which impact on United Kingdom supermarket.
o Strength – In current time people of United Kingdom prefer organic and fresh
products as well as government also develop rules according to which their
supermarket offer products and services to potential customers.
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o Weaknesses – Implementing eco friendly operations and practices in each and
every operation will be expensive for the supermarket of United Kingdom.
 Legal Factors – Respective factor will include several aspects such as discrimination,
safety act, health law, protection act and many more. This factor also has negative and
positive aspects.
o Strength – By adopting each and every law supermarket of United Kingdom able
to conduct their operations in effective manner as well as it also provide
opportunity to grow business successfully.
o Weaknesses – It is not possible for the supermarket firm of United Kingdom to
adopt each and every legal aspect for conducting operations and functions.
CONCLUSION
By conducting analysis of above mentioned points it can be analyze as well as
summarized that for every company it is essential to conduct analysis of the business and
business environment because through it they able to conduct their work properly by developing
proper decision as well as plans. There are several different types of organizations which
entrepreneur need to decide according to their business plan, vision, aim, budgets and operation.
Moreover they also need to conduct internal as well as external environment analysis so that they
will develop proper goal as well as objective successfully and for that they adopt different
models or analysis such as PESTEL analysis, SWOT analysis and many more. Company
management also need to determine relationship among the different departments of a company
as that will help in developing decisions in effective manner. Management of an organization
also needs to determine positive as well as negative impact of macro environment factors so that
they develop strategies according to the situations properly and effectively. In addition to this it
is also essential for an organization management to conduct analysis of both internal as well as
external environment so that they will develop proper strategies accordingly.
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