Types and Purposes of Organisations: Public, Private, and Voluntary Sectors

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This document provides an overview of different types of organisations, including public, private, and voluntary sectors. It explains their purposes, legal structures, and interrelationships with different organisational functions. It also discusses the positive and negative impacts of the macro environment on business operations, using specific examples. The document is relevant for students studying business and business environment.

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Business and Business
Environment

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Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures......................................................................................................................3
P2 Explain the size and scope of a range of different types of organisations.............................5
TASK 2............................................................................................................................................7
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.......................................................................................7
TASK 3............................................................................................................................................9
P4: Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples................................................................................9
TASK 4..........................................................................................................................................11
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses. ........................................................................................................11
P6 Explain how strengths and weaknesses interrelate with external macro factors................12
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Business is define as the organisation or the firm which is engaged in the industrial or the
professional activities. It can be run with the consideration of earning profit or may run in
context to do the charity or the social welfare (Viswanadham, 2018). There are several factors
by which the business can be impact and these factors can be determine by the SWOT and
PESTLE analysis with the positive and negative impact of each factor. Business environment is
defined as the integration of the various factors that impact the functioning of an organisation
and it involve demand, supply, management etc. so it is important for an organisation to
understand the various concept of the business so that they can do the necessary changes early in
order to cope up with the situation. Tesco is the chosen organisation for this report, It is the
public multinational company which is dealing in groceries and general stores. This report will
cover the different types of business with their purpose that includes the legal structure of public,
private and voluntary organisation. Furthermore, It will explain the interrelationship of different
organisational functions with their objectives and structure with in the business enterprises. This
also analyse the micro and macro factors in the business environment with the use of PESTLE
and SWOT analysis.
TASK 1
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures.
Organisation is defined as the group of people that are mutually agreed on performing
various task in achievement of the common objective. The purpose and the functionality of the
each organisation may be differ and these organisation is explained as follows:
Public sector organisations
These are the organisation which is owned and controlled by the government bodies.
They conduct their business with the consideration of serving the general public for their welfare
and improvement of their lifestyles.
Example: Tesco Plc
Purpose: These organisation is working with main purpose of offering products and
services. They use the scare resources of the country so that they can make the best use of it
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while offering the products and services to the general public with the consideration of their
welfare.
Legal structure: the public sector organisation includes the following
Central government- These are the organisation which is formed and managed and the
central government as they also control the flow of work within the organisation. They
usually collect the funds from the public and use that for the welfare of the general
public.
State government- The organisation which is controlled and managed by the state
government that is establish in the limited area with the consideration of doing social
welfare in the society.
Local government- These are the organisation which is controlled and owned by the
local authorities like municipal corporation. All the fund is collected by the organisation
in the form of council tax (Urbach and Röglinger, 2019).
Private sector organisations
These are the type of organisation which is owned and controlled by the private
individual and there will be no interference of the government. Such business can be run by the
single person or the group of people with the aim of generating higher profitability.
Example- Dyson
Purpose- The main purpose of such organisation is earn the maximum profit out of
available resources and this can be done by having the balance between the sale, price, volume
and cost incurred on the business.
Legal structure- The private sector organisation have the following legal structure:
Sole proprietorship- It is the type of business which is owned and controlled by the
individual owner who is responsible for the day-to-day operations. A single owner is
responsible for all the profits and losses and liable to pay personal income tax.
Limited company- The organisation which is having the separate legal entity from its
owners. They can bound to function with the consideration of Companies Act. The
liabilities of the owner are limited of their share
Partnerships- It is a type of business in which two or more individual are agreed on the
common prospective and also agreed to share the profit and losses on their agrees ration

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with the consideration of active the organisational goal. They are governed by the
Partnership Act which includes the share of profit, capital etc.
Voluntary organisations
These are the type of business which is owned and controlled by the individual or the
group of people in the society with the common aim of serving the general public. They work in
a team in order to enhance the lifestyle of the society.
Purpose- The main purpose of such organisation is to do the social welfare and resolve
the v social problems. They do not work with the aim of generating higher profitability as they
work for the serving the society(Tseng Yi and Yeh, 2019).
Legal structure- The voluntary organisation have the following legal structure:
Unincorporated association- These are the organisation which is managed by the group
of people e.g. community and work in accordance of following memorandum of
association.
Trust- It is the type of organisation which work for the charity and they are responsible
for managing trust deeds in order to full fill the needs and objectives.
P2 Explain the size and scope of a range of different types of organisations.
Micro sized organisations- These type of firms has the turnover of 2 million euros and
work between 0-9 employees. Small sized organisations-Number of employees engaged in the such operations are 10-
49 and generate the revenue under 10 million Medium sized organisations-These are the firms which operate their business with 50-
250 employees and has the turnover of 50 million euros. Large sized organisations- These are the business which operate their business with
more than 250 employees and generate the turnover of 250 million.
Examples of two different organisations-
Dyson Limited Background-Dyson is the multinational company which manufactures and design the
appliances for the household and it is founded in 1991.
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Products offered- The company is offering vacuum cleaner, hair dryer, air purifier,
heaters etc. Size-The company is operating their business more than 12000 employees with the
consideration of generating high profits(Talwar and et. al., 2017). Objectives-The company is working on main objective of manufacturing the cost
effective products in order to increase the sale of the company. Vision-The vision statement of the company is to offer the cost effective product so that
they can support their customers. Mission-The mission statement of the company is to provide the solutions for the various
problems of the individual in their daily lives. Turnover- 4.4 million
Tesco Plc Background- Tesco is the leading company in the retailing industry that is dealing in
general merchandise and groceries. Products offered- The company is offering the groceries items in supermarket,
hypermarket, convenience shops and superstores. Size- The company is working with 450000 employees in the consideration of attaining
the aims and objectives of the company (Trad and Kalpic, 2018). Objectives- The main objective of the company is to produce the cost effective products
so that they can offer the products with good discounts. Vision-The vision statement of the company is to be high valued company with their
loyal and trusted customers. Mission-The mission statement of the company is to be a champion that provide the
better quality products in order to enhance the living of the individual.
Turnover- 53 billion
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TASK 2
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.
Every organisation run their various operations with the help of various department in
order to attain the common organisational goal individually or collectively. They are interlinked
and dependent on each order in order to achieve the organisational goal. In order to provide the
products with best quality, Tesco Plc is engaged in the various business activities in order to run
the business operations. Here is the explanation of inter relationship of the various department in
context of Tesco Plc:
Marketing and Human Resource department- Marketing unit is responsible for
promoting the goods and services of the Tesco so that large group of customers get
attracted and aware about the product line of the company make the purchase. Human
resource also concern with the hiring of skilled and capable candidate so that they can
give their best towards the achievement of the organisational goal. These two department
is closely related to each other as Human resource hire the potential candidate who have
the convincing power to make the sale of the various products and services in the large
market.
Finance and Information Technology department- Finance unit is responsible for
procuring and allocating the financial resources based on the revenue generation of the
company. On other hand, IT department is responsible for implementing the use of
artificial intelligence so that various task in an organisation can be accomplished in an
appropriate manner and It will leads to increase the overall efficiency of the
employees(Oumlil and Balloun, 2017). These two department are interrelated to each as
the financial department give the necessary resources then IT department will adopt the
innovative techniques in order to make the best use of each resources so that company
can meet the competitive advantage.
Production and Research And Development Department- Production department is
responsible for manufacturing the goods and services in order to meet the huge
competition in the large market in order to satisfy their loyal customers. On other hand,
Research and development unit is concern in identifying the new and innovative ways of
operation business and launch the advance product according to the current trends of the

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market so that company can easily meet the changing demand of the customers. These
both departments are closely related to each other as the research and development unit
innovate the techniques or the method of doing business then production department
make the necessary change in order to produce the innovative products.
Organisational structure-
It is the pathway of doing the various business activities with the consideration of
attaining the organisational goal. Various types of organisational structure is explained as
follows:
Hierarchical Structure: It is the type of structure in which the chain of the commands
goes from top to bottom as it is the pyramid shaped chart in which every employees is
liable to their seniors in order to manage the various task of their employees.
Illustration 1: Tesco organisational structure 2016
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Illustration 2: Tesco Organisational Structure 2016
Tesco is the public limited company which is operating their business globally The
company is following the hierarchical organisational structure due to having the large size of
their business operations(Leke, Chironga and Desvaux, 2018). It has executive depart and the
stores and do not follow the rigid structure rather each store has the separate organisation
structure that is depending on their wide range of products and the location.
TASK 3
P4: Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.
A PESTLE analysis is the strategic tool that analyse the impact of macro factor in the
external environment so an organisation can take the corrective decision in order to implement
the change. It includes Political, Economical, Social, Technological, Legal and Environment
that impact the overall functionality of the business. Tesco is the top leading company in the
retaining industry and its headquarter is in Hertfordshire, England. Here is the explantation of
external environment of the UK with the use of PESTLE:
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POLITICAL FACTOR- These are the factors which includes the changing in the
government, foreign trade policy, taxation policy, environmental law. Tesco is operating
their business in 12 countries and facing major impact of government fluctuation(Junior,
Oliveira and Yanaze, 2019).
Positive impact- There is the stable government in the UK so that it help the company to run
their business operations in an effective manner.
Negative impact- Tesco is facing the reduction in their sale and profitability due increase in the
rates of import duty.
ECONOMICAL FACTOR- These are the factors which includes the inflation, demand,
supply, interest rate, exchange rate that affects the profitability of the business as there is
the significant impact on the operations of the business.
Positive impact- The annual wages of the company is amounted 4.5 million and increased by
4.4% in the 20 years. And this take the economy to its higher growth.
Negative impact- UK is facing the high recession as the huge impact of COVID-19 that is
affecting the overall efficiency of the business. SOCIAL FACTOR- These are the factors which includes the culture, shared belief of the
individual which reflect their actions. It also impact the age distribution, health
consciousness and age of the population.
Positive impact-In order to meet the poor delivery issues, Tesco is doing the fast and flexible
delivery in order to deliverer products in less time.
Negative impact- Tesco is offering the junk food each is causing the obesity in the general
public and affecting the health issues of an individual. TECHNOLOGICAL FACTOR-These are the factors which includes the change in the
technology or introducing the innovative techniques in order to implement in the various
business operations(Dźwigoł, 2020).
Positive impact- Tesco is adapting the advance technology in order to offer the innovative and
advanced products to their potential customers.
Negative impact-Innovation and advance techniques incurred the huge amount of production
cost that leads to increase the overall cost of production. LEGAL FACTOR- These are the factors which includes the laws and rules associated by
the government that affects the overall production of an organization.

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Positive impact- Tesco is operating their business with the guidelines provided by FOOD
RETAILING COMMISSION(FRC) in order to run the various operations in lawful manner
(Centobelli and et. al., 2020).
Negative impact- Tesco is investigated in the accounting frauds and also charged 12 million for
misleading the investors. ENVIRONMENTAL FACTOR- These are the factors which is concern with the
environmental issues and finds the ways in order to solve them.
Positive impact- Tesco is collecting the plastic bags from their customers and recycle them in
order to contribute in saving environment.
Negative impact-Company is working on the global level and sometimes it is tough to follow all
the environmental law in order to run their business successfully.
TASK 4
P5 Conduct internal and external analysis of specific organisations in order to identify strengths
and weaknesses.
SWOT analysis is the framework of analysing the micro factors of an business
enterprises which includes strength, weaknesses, opportunities and threat for the company(Bashir
and Farooq, 2019). It helps in identifying the loopholes in the various operations in order to
solve them so that an organisation can attain their goal in an appropriate manner. In context to
Tesco, SWOT analysis is explained as follows:
Strength Weaknesses
It is the top leading company which is
operating their business globally as it is
the largest grocery retailer in the UK.
The company is having the 3751 in
2008 and now the company is operating
with 6966 stores in the large market.
Tesco is offering the cost effective
products but this is minimizing the
profit share of the company.
Company was charged penalty for the
wrong accounting declaration in 2017
and misleading of their customers.
Opportunities Threats
Tesco is facing various issue and not
performing well in all the nations so
The company is facing the huge
competition as there are many big firm
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they are having the opportunities of
joint ventures with the local vendors.
The company can increase their sale by
selling their products on online stores.
e.g. wall-mart.
Company is facing the economic
recession in the country and facing
decrease in the share prices and the
profit margin of the company.
P6 Explain how strengths and weaknesses interrelate with external macro factors
When the company is copping their strength and weakness with the external factors, It is
important to analyse the SWOT and PESTLE analysis of the internal and the external factors so
that company can make the accurate pathway in order to meet the highest profitability within the
organisation. The interrelationship of strength and weaknesses with the external factors is
explained as follows:
Political factors: It includes the interference of the government bodies. The strength is
Government of the UK is stable so that Tesco can run their business operation is an
appropriate manner and the weakness of the company is there is high import duty on
goods which is affecting the profit of the company.
Economical factors: There is economic recession in the UK as it impacting the business
at the larger scale. On other hand, The strength of the company is that they are generating
the 4.5 million profit and contributing in the uplifting of the economy(Al Omoush And et.
al., 2018).
Social factors: The strength of the company is they are doing fast and flexible delivery to
their potential customers in order to meet the poor delivery issues. On other hand, the
company is manufacturing the junk food which effects the health of the individual.
Technological factors: Tesco is using the innovative products and meeting the current
demand of the market. On other hand the weakness of the company is advance
technology leads to incurred huge cost on production and reducing the overall
profitability of the business.
Legal factors: Tesco is operating their business in the lawful manner and using it as the
strength. On other hand, There are various accounting frauds done by the company and
had to pa the penalty of 12 million.
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Environmental factors: The strength of the company is they are functioning their business
with the use eco-friendly resources as they collect the plastic and recycle them in order to
save the environment.

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CONCLUSION
It is concluded from the above report that Business is the important aspect which play an
significant role in the development of the economy. There are mainly three types of business
public, private and voluntary that are working on their own principles and structures. There are
various factors which impact the internal and external environment of the business as the
company is conducting the PESTLE analysis in which the political, legal factors have the
negative impact on the business and social, technological factors have the positive impact on the
business. Furthermore, It analyse the interrelation between strength weakness and external
factors of the company which affecting the decision making of the company.
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REFERENCES
Books and Journals
Al Omoush, K.S. And et. al., 2018. The degree of e-business entrepreneurship and long-term
sustainability: an institutional perspective. Information Systems and e-Business
Management, 16(1), pp.29-56.
Bashir, M. and Farooq, R., 2019. The synergetic effect of knowledge management and business
model innovation on firm competence. International Journal of Innovation Science.
Centobelli, P. and et. al., 2020. Designing business models in circular economy: A systematic
literature review and research agenda. Business Strategy and the Environment, 29(4),
pp.1734-1749.
Dźwigoł, H., 2020. Interim Management as a New Approachto the Company
Management. Review of Business and Economics Studies, 8(1), pp.20-26.
Junior, C.H., Oliveira, T. and Yanaze, M., 2019. The adoption stages (Evaluation, Adoption, and
Routinisation) of ERP systems with business analytics functionality in the context of
farms. Computers and electronics in agriculture, 156, pp.334-348.
Leke, A., Chironga, M. and Desvaux, G., 2018. Africa's business revolution: How to succeed in
the world's next big growth market. Harvard Business Press.
Oumlil, A.B. and Balloun, J.L., 2017. Cultural variations and ethical business decision making: a
study of individualistic and collective cultures. Journal of Business & Industrial
Marketing.
Talwar, R. and et. al., 2017. The Future Reinvented: Reimagining Life, Society, and
Business (Vol. 2). Fast Future Publishing Ltd.
Trad, A. and Kalpic, D., 2018, April. Business Transformation Projects An Enterprise
Architecture Applied Mathematical Model's Proof of Concept. In 2018 International
Conference on Applied Mathematics & Computer Science (ICAMCS) (pp. 42-425).
IEEE Computer Society.
Tseng, H., Yi, X. and Yeh, H.T., 2019. Learning-related soft skills among online business
students in higher education: Grade level and managerial role differences in self-
regulation, motivation, and social skill. Computers in Human Behavior, 95, pp.179-186.
Urbach, N. and Röglinger, M., 2019. Introduction to digitalization cases: how organizations
rethink their business for the digital age. In Digitalization Cases (pp. 1-12). Springer,
Cham.
Viswanadham, N., 2018. Performance analysis and design of competitive business
models. International Journal of Production Research, 56(1-2), pp.983-999.
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