Different Types of Organisation, Their Purpose and Legal Structure

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1. Examine the different types of organisation, their purpose and legal structure....................1
P2.Examine the size and scope of a range of different types of organisations...........................4
Comparison between small, medium and large organisations.........................................................4
M1.Examine how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisation................................................5
P3. Examine the relationship between different organisational functions and there link to
organisational objective and structure.........................................................................................5
M2. Analyse the advantages and disadvantages of interrelationships between organisational
functions and the impact that can have upon organisational structures......................................7
D1.Provide a critical analysis of the complexities of different types of business structures and
the interrelationships of the different organisational functions...................................................7
P4. Examine the positive and negative impact of the macro environment has upon business
operations of ASDA....................................................................................................................8
M3. Analyse PESTLE model to support a detailed analysis of the macro environment within
an organisation............................................................................................................................9
P5. Conduct the internal and external analysis of ASDA in order to identify strengths and
weaknesses................................................................................................................................10
P6. Examine the strengths and weaknesses of ASDA and interrelate with external macro
environment...............................................................................................................................11
M4. Apply SWOT and justify how they influence decision making........................................12
D2.Critically evaluate the impacts that both macro and micro factors have upon business
objectives and decision making................................................................................................12
CONCLUSION..............................................................................................................................13
References:.....................................................................................................................................14

INTRODUCTION
An organisation is occupied by many people's to carry commercial activities in order to
attain profit and growth is a business and business environment consist of group of employees,
entities and internal and external factors of environment which determines the productivity,
profitability, growth and performance of the business (Szromek, 2020). The report covers the
three types of organisation: ASDA, a private organisation owned by single individual is a
supermarket chain located at Leeds, London. Tesco , a public organisation funded by the
government is a a multinational groceries and general merchandise retailer located at Wletwyn
Garden City, England. The last is voluntary organisation named as NCVO( National Council of
voluntary organisation. Apart from this report outlines the organisation and legal structure of
above organisations. Size and scope of private, public and voluntary organisation are also
discussed. PESTLE and SWOT analysis of organisation are conducted to analyse the strengths
and weaknesses. The inter relation of strength and weakness with external macro environmental
factors are outlined in the report.
MAIN BODY
P1. Examine the different types of organisation, their purpose and legal structure
Organisations are the commercial entities categorized in three sectors:
PRIVATE SECTOR
Private organisations are the companies owned by the individuals for the profit earning
and are not managed and controlled by the state (Li, 2020). Private sector inclined to have larger
market share of the economy. ASDA Stores Ltd. is one company among the private sector of
UK. ASDA is a second largest retail supermarket chain founded in 1949. The company was
earlier acquired by the Walmart but now in 2021 acquired by the EG group by Issa brothers.
Purpose of Private Sector
The main purpose of Private sector to earn profit with income and maximize the economy
and provide more employment that public sector. Private sector aims at increasing sales, growing
business and earning larger income. For example ASDA is a private company with the aim to
become largest supermarket chain of UK. The sole purpose of ASDA is to drive highest profit
and growth for future with its retail counter all over the world and UK.

Legal Structure Sole proprietorship:Sole proprietorship is type of private sector company owned by the
sole person who pays all the taxes and owns the profit personally. This is the easiest and
simple type as there are no government regulations (Özkaya, 2020). Partnership: Partnership is a arrangement of business between two or more groups or
individuals to operate the business and profits and liabilities are also divided between
them. This structure require the legal contract to agree the partnership.
 Corporation: The type of private organisation that guard owner assets and address
liabilities, in core, creating Unique entity without drawing any tie-up with individuals.
These companies are has different tax laws.
ASDA comes under the partnership type of private organisation as the firm is acquired
recently in 2021 by the two brothers of EG group to expand and establish its stores with the
petrol filling stations. The firm is now operated under the partnership of Zuber and Mohsin Issa.
All the decisions, profits and liabilities are together taken by the two partners.
PUBLIC SECTOR
Public sector of the economy are owned by the government for the community. Public
sector are the not profit driven else there made to serve the people in community and is for the
benefit of the public. Public sector employs have the job security and life time pension (Yoon,
2020). The rules and regulations in this sector are regulated by the government. Tesco is the
public limited organisation in the retail industry of groceries and other merchandise. It is largest
retailer of grocery in UK.
Purpose of Public sector
The sole purpose of the public sector is to serve the community or society with the
products and service at cheaper cost without any aim of profit. The public sector aim to collect
taxes from people and use this finance to serve local communities. Tesco a public limited
company with the purpose to save the money of people by selling there product and services
cheaper from other retail stores.
Legal structure Local Governance: Local governance is the authority of the local government to regulate
and control the public sector organisation with local laws and there benefit to local