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

Business and Business
Environment

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

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

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