Types and Purpose of Organisations

Business and Business Environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain different types and purpose of organisations.............................................................3
P2 Explain the size and scope of different type 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............................................................................................................................................8
P4 Identify the positive and negative impact of the macro environment on the business
operations.....................................................................................................................................8
TASK 4..........................................................................................................................................10
P5 Explain internal and external analysis of organisation in order to identify strengths and
weaknesses.................................................................................................................................10
P6 Interrelation of strength and weakness with the macro factors.............................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Business Environment comprises of the external and internal environment factors such as
suppliers, stakeholders, customers, government policies and regulations and all these factors has
direct impact on the business (Teece, 2010). Business environment provide support in analysing
the market conditions and helps in business decisions and in developing strategies. The
organization chosen for this report is TESCO. The company has a global business and has vast
operational activities. The company is dealing in almost all segments and is consider among top
companies in UK. The report covers following topics- different type of organizations and their
purpose, the relationship of different functions and structure of the organization, internal and
external analysis contribution in understanding the strengths and weaknesses and their impact on
the operations of business.
TASK 1
P1 Explain different types and purpose of organisations.
In order to provide support to organisations in defining the roles and responsibilities, it is
important that firms analyse and evaluate what type of organisation is best for them which help
in achieving the business objective (D’Haen and Van den Poel, 2013).
Types of organisations
Private Sector Organisation- The private sector organisations refers to those companies
which are been established and run for profits and they are owned and run by individuals or
partners. For example: TESCO is the private company established in UK and they are dealing in
the retail sector.
Purpose- TESCO is the large scale private sector organization of UK where the company focus
on providing groceries and daily essentials at affordable prices to the customers.
Objective- The objective of the company is to maximize sales and profit margins by providing
products at low price to its customers. Moreover they want to introduce healthy eating products
in its range of groceries.
Goods & Services- TESCO is dealing in both goods and services that is has a diversified range
of clothing, furniture, electronics, financial services, telecoms, internet services, etc.
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Type of Private sector organisations:
 Sole trader: Sole trader is very simple from of business where business is operated and
run by individuals.
 Partnership: This is a type of private organisation which is run by two or more people
that is under legal agreement two or more individuals establishes their business.
 Limited liability partnership: These are those companies which are limited to perform
operations to the extent of investment.
 Limited company: A limited company is a type of private sector organisation which
operates as a separate legal entity.
Legal structure- In the context of TESCO, it is a limited company which is owned and run by
investors and shareholders. The company is following flat hierarchical structure in order to
establish good communication among all departments (Herbst and Merz, 2011).
Public Sector Organisation- These are those type of organisations which operate for
serving society and are owned by government and agencies. Their main focus is providing
benefit to society and not to earn profits. For example: NHS(National Health Services) is a
company operated and owned by government and they provide healthcare services to people for
no charge.
Purpose- NHS (National Health Services) is operating with the funds provided by welfare
department of UK. The primary focus of the company is to provide good healthcare facilities and
services to the people, specially to those who cannot afford expansive treatments.
Objective- The objective of the organisation is to keep people healthy and focus is on reduction
of health inequalities from country.
Products and Services- The organisation deal in service sector that is in GPs and dentists to
hospitals and in case of emergency.
Type of public sector organisations
 Departmental undertakings: These are the oldest form of public sector organisation
which are established and run by ministry.
 Statutory corporations: These are those type of public sector organisations which
are finance by government (central or state) and are mention in the special act of
parliament.
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