Different Types and Purpose of Organisations: Public, Private, and Voluntary

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Explain different types and purpose of organisation public, private and voluntary along
with legal structure......................................................................................................................1
P2 Explain the size and scope of a range of different organisations...........................................4
M1 Analyse how the structure, size and scope of different organisation link to business
objectives and products and services offered by the organisation..............................................5
P3 Explain different organisational functions and how they link to organisational objective
and structure................................................................................................................................6
M2 Analyse the advantage and disadvantage of interrelationship between organisational
functions and its impact upon organisational structure...............................................................7
D1 Critical analyses of complexities of different types of business structures and
interrelationship of different organisational functions. ..............................................................7
P4 Identify the positive and negative impact macro environment has upon operations of
business with suitable example. .................................................................................................8
M3 Apply appropriately PESTLE model to support a detailed analysis of macro environment
within an organisation. ...............................................................................................................9
P5 Conduct internal and external analysis in order to find out strength and weakness of a
specific business..........................................................................................................................9
P6 How strength and weakness interrelate with macro factors.................................................10
M4 Apply appropriate SWOT and TWOS analysis and how they influence decision-making11
D2 Critically evaluate the impact that both macro and micro factors have upon business
objectives and decision making................................................................................................12
CONCLUSION..............................................................................................................................12
References:.....................................................................................................................................12

INTRODUCTION
Business environment can be defined as a aggregation of internal and external forces that
might or not be in control of a organisation but affects organisation's overall prosperity,
performance, profitability and survival. These factors are changes in supply and demand,
customers need and demands, government policies, technological innovations, social and market
trends, employees and economical factors. Sum of all these factors assist in organisational
planning, identifying further opportunities and threats and identifying available resources. Lidl
Stiftung & Co., founded in 1973, is a international discount supermarket chain with its operation
across Europe and United States (Vo and et. al., 2020). British Hearth Foundation (BHF) is a
British philanthropic organisation founded in 1961 by a group of medical professionals,
established for addressing the increased death rate and cardiovascular disease. Whereas, British
Broadcasting Corporation (BBC) was founded in 1922, whose prime objective is to broadcast a
news and current affairs to the public. They give service in 50 different languages with 250
correspondents around the world. The main objective of this report is conduct a detailed analysis
of the factors which affect organisation's ability to grow, prosper and survive .
Task 1
P1 Explain different types and purpose of organisation public, private and voluntary along with
legal structure
Organisations can be defined as business entity, formed by a individual or group of a
people with a specified objective.
Private Sectors
Private Sectors of an economy is formed by those business entities which are owned,
governed and operated by an individual or group of people along with a objective of profit
generation without the intervention of state government(Gani and Clemes, 2020). Under this
sector, organisations can be formed by creating a new business entity or by privatising the public
undertakings. Lidl Stiftung is a private company operating in a private sector which is largest and
discounted supermarket chain in Europe and United States. The company laid the foundation in
the year 1973 with a objective to share a part of their savings with customers, thus offering a
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discounted products. In other words Company has simply reduced its profit margin and passed
on to customer by means of discounted price
Purpose of Private Sectors
Purpose of these private sectors organisation are not limited to the profit maximization
rather they also work on developing and maintaining the infrastructures and other services.
Private sectors businesses are well known for their contribution in economic development and
promotes and small and micro enterprises. Additionally, they also focus on expanding its
existing businesses.
Legal structure of Private Sectors
Legal structure of private sectors constitutes sole-proprietorship, partnerships and private
limited companies. Sole-proprietorship:- Sole-proprietorship are also refereed as sole traders, where
business is owned, managed and controlled by a individual and is only responsible for all
the aspects of business including finances. Profits and losses are shared by himself and
there is no legal distinction between a business entity and owner as compared to other
structures. Partnerships:- Partnerships is a form of business entity where agreement between two or
more individual, who share a common interest, is created and governed by a deed of
partnership which states each partners roles and responsibilities, share of profits & losses
and amount of investment(Kramarova and Valaskova, 2020). Corporations:- An organisation which is created and formed by a group of people or
companies, individual and shareholders with an objective to make profit. Unlike, sole-
proprietorship they are distinct and separated from its owners. Lidl Stiftung Co. is a
perfect example having this type of legal structure. Like individuals, corporations too
enter into a contract, hire employees, pay taxes, own assets, sue and be sued.
Public sectors
Public sector in an economy consist of all the government owned organisations which
provide services to the society rather than a individual (Massihi, Abdolvand and Harandi, 2021)
. These include services like infrastructure, public transportation, health care, military, police and
education. Public sector is divided into three distinct level i.e. Federal or National, Regional
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