Different types and purpose of public, private and voluntary organization

BUSINESS AND BUSINESS
ENVIRONMENT

Contents
INTRODUCTION.....................................................................................................................................4
TASK 1.......................................................................................................................................................4
P1 Different types and purpose of public, private and voluntary organization........................................4
P2 Size and scope of different type of organization.................................................................................6
TASK 2.......................................................................................................................................................7
P3 Inter-relationship between different organizational function and objectives......................................7
TASK 3.......................................................................................................................................................7
P4 Identify positive and negative impact of macro environmental factors...............................................7
TASK 4.......................................................................................................................................................9
P5 Internal and external analysis of TESCO............................................................................................9
P6 State how strength and weakness is inter-related with external macro factors..................................10
CONCLUSION........................................................................................................................................11
REFERENCES........................................................................................................................................12

INTRODUCTION
Business environment can be defined as the surrounding in which firm operates and
practice their business activities. It is the sum total of all internal and external factor that has an
impact on function and operation of the company (Asif, Garvare and Ahmad, 2011). It is
important for every manager to taken into account all such factors that either directly or
indirectly affect the working of business entity. It help in formulating effective policies and plans
and implementation of those. The selected organization for this report is TESCO which is the
UK based Retail Company. The company hold second position in terms of generating revenue
after Walmart. The report includes size, scope, structure and purpose of public, private and
voluntary organization. Interrelationship between different organizational functions and
objectives has also been discussed in this report. In addition to that, impact of all external and
internal factors has examined and SWOT analysis has been conducted in order to determine its
strength and weakness and its interrelationship with external factors.
TASK 1
P1 Different types and purpose of public, private and voluntary organization
Different types of organization exist or working in business environment namely public,
voluntary and private. Each one is having its own distinctive purpose and legal structure. There
are various rules and regulation that has been implemented by government which every business
needs to follow in order to run their business successfully in the market. This help organization
in executing their operations and activities in an effective manner. Following are the purpose and
structure of different types of organization:-
Private sector: These organization are normally owned, controlled and managed by private
individuals. There is less interference or involvement of government in private sector. The sector
is playing key role in contributing towards the growth and development of economy. The main
purpose of privately owned business enterprises is to earn maximum profit and provide large
number of employment opportunities to people so that they can more workforce as compared to
public sector. They are mainly contributing in GDP percentage of the respective country.
Contribution of private companies in gross domestic product of UK is 89%. The run with an aim
of expanding their business operation in overseas market and gain high competitive advantage
over their rivals. Productivity are sales of private sector companies increases at higher rate as
compared to public sector companies. The example of private sector is TESCO.
Company overview:
TESCO is a leading UK based Retail company that mainly offer food and non-food item to
customers. The company has ranked themselves on second position in terms of generating higher
revenues and profits after Walmart (Bhaduri and Ha-Brookshire, 2011).
Purpose of Nestle:
1. The main purpose of TESCO is to earn higher revenue by providing quality products to its
customer.
2. To make strong their customer and market base.
Legal structure of private firm: It further classified as:
Partnership: When two or more person enter into a contract with an aim of start a new business
venture collectively it can be called as a partnership. It is a kind of written document that has

been signed by partners enclosing all terms and conditions regarding their partnership. Partners
who have signed the contract are equally responsible for all profit and loss that has been bear by
respective firm throughout the year. Partnership deed include information related with roles and
responsibility of each partner, share in profit and loss etc.
Sole proprietorship: Such types of companies are normally run and operated by single individual
known as the sole proprietor. The person is solely responsible for all profit and loss that has been
generated by their company during an accounting period. It requires small amount of finance in
order to establish such type of business. Quick decision making is their main advantage because
there is less involvement of partners (Cavusgil and et. al., 2014).
Limited companies: Such type of companies are normally categorized into two types:
Limited by guarantee: Such type of companies do not have shareholder or share capital but
instead they have members who act as guarantors
Limited by share: In such type of companies liability of the shareholder to creditor is limited to
their capital that is originally invested.
Merits and demerits of private organization:-
Merits:
1. There is less interference of government in operation and activities of companies.
2. Effectively satisfy customer needs and wants as per their requirement.
Demerit:
1. Private players cannot issue their shares to general public
2. The only emphasize on maximizing their profitability ratio, however society development is
not their prime area of interest.
Public sector organization:
Such type of firms are normally controlled and regulated by government bodies of respective
country. The main purpose of public sector organization is not only to earn adequate profit but
also promote welfare and development of society and its member. Health care institution,
electricity, education are some of the sector where public sector organizations generally operates.
The example of public sector is NHS.
Company overview:
National Health Services (NHS) is a publically funded healthcare organization, located in
England, UK. It mainly direct healthcare services to UK domestic population at free of cost.
Some of their free facilities includes emergency and infectious disease etc.
Purpose of NHS:
1. Implement innovation in healthcare services.
2. Serve society and its member in an effective manner.
3. Effectively contributing towards the lives of patient.
Legal structure of public enterprise: It encompasses:
1. Central government: This government body regulate the whole country. Their main aim is to
collect tax from private players and general public and print denomination.
2. State government: Function of state government is mainly controlled and supported by central
government. Their main objective is to providing better education facilities to children
(Chetwood, and et. al., 2014).
3. Local government: This authority works for small geographical region such as city, town or
state. Their functions are normally handle by state or central government.
Merits and demerits of public sector organization:
Merits: