Analyzing Types, Purpose, and Legal Structure of Public, Private, and Voluntary Sectors

This article analyzes the different types, purpose, and legal structure of public, private, and voluntary sectors. It discusses the size and scope of various sectors and their relationships with organizational functions.

Business
And
Business Environment

Table of Contents
INTRODUCTION......................................................................................................................3
TASK 1......................................................................................................................................3
P1. Analyse different types, purpose and legal structure of public, private and voluntary
sector.......................................................................................................................................3
P2. Explain the size and scope of various sectors..................................................................5
M1. Inspect the structure, size and scope of various organisational sectors..........................8
TASK 2......................................................................................................................................8
P3. Describe the relationship between organisational functions which interrelates with their
objectives and structure..........................................................................................................8
M2. Demonstrate the benefits and limitations of interrelationships.......................................9
CONCLUSION........................................................................................................................10
REFERENCES.........................................................................................................................11

INTRODUCTION
Business environment is the sum or collection of intrinsic and extrinsic surroundings
of an enterprise which include factor such as employees, customers, suppliers, management,
technology, social and market trends, etc. The organisation selected for this project is Rolls-
Royce as being British multinational engineering company incorporated in February, 2011.
The Chief Executive Officer of Rolls-Royce is Warren East on 2nd July, 2015 which is
headquartered in London, United Kingdom (Ahmad, 2014). This project analyse purpose and
legal structure for public (Environment Agency), private (Rolls-Royce) and voluntary sector
(Amnesty International) with their full description of vision, mission, objective, size and
scope. Additionally, it also describes the relationships between various functional areas of
organisation with their structure and culture.
TASK 1
P1. Analyse different types, purpose and legal structure of public, private and voluntary
sector
Business Environment:- The factors which are inside and outside the surrounding of
an enterprise and can favourably or unfavourably affect the stability of an enterprise is
concluded as business environment. The intrinsic factors include employees, suppliers,
management, owners, etc whereas extrinsic elements involves activities by government,
innovation in technology, economic changes, social and market trends. The various types of
sectors are mentioned below as:-
Public Sector:- This enterprise is most probably governed by government through
political leaders with their rules and regulations, ethos, norms, code of conduct, policies and
procedures. It is a portion of economy system that is controlled by national, state or
provisional and local governments (Dent, 2015). This is the ability of business with objective
of not-for-profit organisation which is considered in which they promote their product to
potential customers to increase their consumption. There are various types of public sectors in
United Kingdom which are National Rail, British Army, NHS, Environment Agency, BBC,
Automatic Weapons Establishment, etc. From the above mentioned companies, Environment
Agency is selected as being the non-departmental public body which was established in 1995
and headquartered in Bristol, UK.
 Purposes:- The main aim of public sector is to protect the surroundings taken as
whole by maintaining it cleans and safe. Managers of Environment Agency mainly
focus on providing pure atmosphere for human beings to breathe fresh air and survive
their livelihood (Purpose of Environment Agency, 2020).
 Legal Structures:- This refers as to legal legislations which are approved by the
government and are mandatory for business to follow those policies and procedures.
Managers of Environment Agency mainly focus on providing an environment with

good atmosphere by planting more trees which creates opportunity to breathe fresh
air.
(a) Local Government:- It is the procedure through which companies perform their
actions by following the legal legislations imposed by local government.
(b) State Government:- This is ability of an organisation to follow the rules and
regulations governed by the state government which is highest post as compared to
local government (Greenwood and ed., 2016).
(c) Central Government:- It is the supreme level government whose decision of
policies and procedures are bound by every organisation to implement them in order
to sustain in perfect competition market. Managers of Environment Agency are
mainly emphasized by the ethos, norms and code of conduct for central government in
order to provide the clean and safe atmosphere for public to live with fit and healthy.
Private Sector:- It is the enterprise which does not involve the interference of
government and is run by two or more entrepreneurs in order to sustain in perfect competition
market. This sector has the capability to maximise their revenue and profitability ratios for
increasing their growth and stability in global market. There are various types of private
sectors which are Bentley Motors, Sainsbury, Rolls-Royce, Tesla, ASDA, Mercedes, etc.
From the above prescribed companies of United Kingdom, the Rolls-Royce Motor Cars
Limited is selected as being the wholly owned subsidiary of BMW in 1998 for designing,
manufacturing and distributes its power systems for aviation and other industries.
 Purposes:- The main purpose of private sector is to increase their sales and profits by
developing their products with least-cost effectiveness which enlarge customers. It is
the objective of Rolls-Royce is to become the world’s most exclusive manufacturer of
luxury automobiles.
 Legal Structures:- This refers as the legal rules which are to be followed by an
organisation within private sector to provide their employees with equality and
diversity. Managers of Rolls-Royce implement this as to develop employee relations
through facilitating co-ordination with equal pay act as well as health and safety.
(a) Sole Proprietorship:- It is defined as the enterprise which have one entrepreneur
in its business with the capability to develop innovative ideas through strategic
decision making procedure for competing with rivalries.
(b) Partnership:- This refers as the business which have two or more than two
entrepreneurs who actively participate in an enterprise for sharing their profits and
loss in accordance with their investment proportion. Managers of Rolls-Royce have
two business owners which are Charles Rolls and Henry Royce as an electrical and
mechanical business in 1884. This leads them to share their profits and loss actively
with assets and liabilities share (Mgeni, 2015).
(c) Franchise:- It is the process through which a large organisation gives its company
name and logo to a small business for accomplishing success in future.
(d) Corporation:- A corporation is legal entity that is separate and distinct from its
owners. The corporation enjoy most of its rights and responsibilities by entering into

contracts, loan and borrow money, sue and be sued, hire employees, own assets and
pay taxes.
Voluntary Sector:- This sector is also known as civil sector which is non-
governmental business and perform its action with non-profit activities by providing funds,
charities and donations. It is the duty and responsibility of this economic part for undertaking
activities for social welfare which leads to develop customer relationship management
through enhancing their support and loyalty (Munemo, 2017). There are various types of
voluntary sector which includes National Group Organisations (NGOs), Amnesty
International, National Trust, etc. From the above mentioned companies of United Kingdom,
the Amnesty International has been selected as being the non-governmental organisation by
majorly focusing on human rights by providing employment for more than eight million
members and supporters around the world.
 Purposes:- The main objective of voluntary sector is to provide funds for social
welfare through giving charity, funds and donations. Managers of Amnesty
International aim to draw attention on human rights abuses and campaigns for
compliance with international laws and standards.
 Legal Structures:- It is the most common form of unincorporated structure for
voluntary and community organisation which favours for new and small groups.
Managers of Amnesty International is a global movement of more than seven million
people who take injustice personally by campaigning for world where human rights
are enjoyed by all.
(a) Trust:- This refers as a small group performing its actions with the motive to
provide funds for an organisation and large number of people perform their actions
with the motive of social welfare. Managers of Amnesty International mainly focus
on providing human rights by following the international law and standards.
(b) Charitable association:- It is the ability of an organisation when earning more
profits used to share it as charity to the people or small community who are in need of
it for their survival (Przybylek, 2014).
P2. Explain the size and scope of various sectors
The size and scope of public (Environment Agency), private (Rolls-Royce) and voluntary
(Amnesty International) are further described in detail which is as follows:-
Public Sector (Environment Agency):-
Features Description
Vision The vision of Environment Agency is to become a nation which is
capable to protect their finite national resources. It is attuned to
pursuit sustainable development for clean and healthy environment
that enhance the Filipino Quality of life for present and future
generations.
Mission The mission of Environment Agency is to protect, restore and
enhance environmental quality towards good public health,

environmental integrity and economic viability.
Objective The main purpose of Environment Agency is to protect the
surroundings taken as whole by maintaining it cleans and safe.
Background The Environment Agency was established on 2nd December, 1995
headquartered in Bristol, United Kingdom and consolidates in one
agency of variety of Federal research, monitoring, standard-setting
and enforcement activities to ensure environmental protection.
Key People The Environment Agency Chairman is Emma Howard Boyd and the
Chief Executive Officer is Sir James Bevan.
Product The Environment Agency is the principal flood risk management
operating authority. It has the power to manage flood risk from
designated main rivers and sea. The Environment Agency also has a
strategic overview role for all flood and coastal erosion risk
management (Sharma and Modgil, 2015).
Services The Environmental taxes, reliefs and schemes for business. The
remaining directorates are central shared services groups for
Finance, Legal Services, Resources and Communications. It is our
job to look after your environment and create better places for
people and wildlife.
Size The Environmental Agency is the leading public body protecting and
improving the environment in England and Wales. It is an executive
non-departmental public body (NDPB) which employees more than
11,000 workers by creating job opportunities.
Scope The scope of Environmental Agency remit covers almost the whole
of England, about 13 million hectares of land, 22,000 miles of river
and 3,100 miles of coastlines seawards to the three-mile limit which
include 2 million hectares of coastal waters.
Profit Share The Environment Agency is non-departmental public body with
government agency is non-profit organisation.
Market Share The market share of Environment Agency is developing and
emerging markets which represent over 15% of total market.
Shareholders The shareholders of Environment Agency are principals and
managers of the agents.
Rivalries The Environment Agency rivalries are Met Office, Highways
England and Department for Environment, Food and Rural Affairs.
Websites The websites of Environment Agency is www.gov.uk/ea.
Private Sector (Rolls-Royce):-
Features Description
Vision The Rolls-Royce vision is to develop purest form of model by
creating the automotive equivalent of haute couture as being the
future of luxury mobility (Stubbs, 2017).

Mission The mission of Rolls-Royce is a pre-eminent engineering company
focused on world-class power and propulsion systems.
Objective The main purpose of Rolls-Royce is to become the world’s most
exclusive manufacturer of luxury automobiles.
Background The background of Rolls-Royce describes that it was founded by
Charles Rolls and Henry Royce as an electrical and mechanical
business in 1884.
Key People The key people of Rolls-Royce are Warren East, Torsten Muller-
Otvos and Giles Taylor.
Product The Rolls-Royce products are Phantom, Cullinan, Wraith and Dawn.
Services The Rolls-Royce service is automobile customisation (Trevino and
Nelson, 2016).
Size The size of Rolls-Royce includes 1300 large number of employees
in 2014 with its wheelbase of 3,552 mm (SWB) and 3,772 mm
(EWB).
Scope The scope of Rolls-Royce is the geographic coverage of system
which applies globally and covers the people under the direct
supervision.
Profit Share The profit share of Rolls-Royce has profit-margin up with 90bps to
10.1%.
Market Share The market share of Rolls-Royce has revenue up with 4% of strong
power generation growth and market share with increased service
penetration.
Shareholders The Rolls-Royce shareholders mainly focus on its stock price which
is at 294.30 GBX + 0.60 (+0.20%) at May, 2020.
Rivalries The rivalries of Rolls-Royce are Bentley Motors Limited, Mercedes,
ITP Aero and Aston Martin.
Websites The website of Rolls-Royce is rolls-roycemotorcars.com.
Voluntary Sector (Amnesty International):-
Features Description
Vision The vision of Amnesty International is to build a world in which
every person all of human rights enshrined in Universal Declaration
of Human Rights and other international standards.
Mission The mission of Amnesty International is to achieve vision by
undertaking research and take action focused on preventing and
ending grave abuses of human rights (Upadhyay and Zeng, 2014).
Objective The goal and objective of Amnesty International is to draw attention
on human rights abuses and campaigns for compliance with
international laws and standards. It works to mobilize public opinion
for generating pressure on governments to control abuse of people.
Background The Amnesty International was founded in 1961 by Peter Benenson,

a British lawyer. It was originally intention to launch an appeal in
Britain with the aim of obtaining an amnesty for prisoners of
conscience all over the world.
Key People The key people of Amnesty International are Sean MacBride, Irene
Khan and Julie Verhaar.
Product The product of Amnesty International includes United Kingdom fair
trade, organic shop, etc.
Services The services of Amnesty International are to Finance department by
accounting for about US $ 300m raised annually for human rights
work across the world. It includes services such as Legal advocacy,
media attention, direct-appeal campaigns, research, lobbying, etc.
Size The size of Amnesty International for ten years of foundation with
the organisation comprised more than 1000 voluntary groups in 28
countries through which figures rose steadily.
Scope The scope of Amnesty International is more than seven million
members and supporters in over 150 countries and territories,
campaigning for human rights worldwide.
Profit Share The Amnesty International is non-governmental organisation with its
headquarters in United Kingdom focused on human rights. This is a
social welfare type organisation which does not have the motive of
earning profits.
Shareholders The Amnesty International Launches “Share Power” to Leverage
Shareholder Advocacy Efforts.
Rivalries The rivalries of Amnesty International are Greenpeace, Doctors
Without Borders and International Red Cross.
Websites The websites of Amnesty International is amnesty.org.
M1. Inspect the structure, size and scope of various organisational sectors
There are three types of organisational sectors which are public (Environment
Agency), private (Rolls-Royce) and voluntary (Amnesty International). The Environment
agency adopts the flat structure as it follows various legal instructions imposed by Central
government. Managers of Rolls-Royce implement the divisional structure as it discriminate
business activities into various functional areas such as finance, human resource, marketing,
etc. The Amnesty International uses the matrix structure as it is the combination of both
functional and divisional formations (Velu and Jacob, 2016).
TASK 2
P3. Describe the relationship between organisational functions which interrelates with their
objectives and structure
Organisation structure:- It refers as the structure which describes that how various
activities are to be performed in different departments with engagement and involvement of

workers. This is the ability of managers to build good employee relations as to co-ordinate
with each other for accomplishing success within particular duration. There are four types of
organisational structure which are mentioned below as:-
 Functional Structure:- This is defined as the procedure through which an
organisation discriminate the role of its workforce in accordance with their
specialisation. It increases the ability to workers to perform their task with division of
work to improve effectiveness. Managers of Rolls-Royce can use this structure as to
segregate their roles and responsibility for improving efficiency to achieve success.
 Divisional Structure:- It refers as the process of diving the business activities into
various segments such as functional area of organisational structure. Managers of
Rolls-Royce can use this structure to discriminate business actions into various
departments such as finance, human resource, information technology, research and
development, etc.
 Matrix Structure:- This formation is described as the combination of functional and
divisional structure of business. It is very complex for business to perform action in
various groups through functional departments of specialisation. Managers of Rolls-
Royce can use this as to develop good team with more autonomy and expected
responsibility of their work (Zaridis and Mousiolis, 2014).
 Flat Structure:- It is the structure which take place within business at systematic
manner from top to bottom. Managers of Rolls-Royce can use this as the employee
directly communicates regarding its target on peer-based level.
The managers of Rolls-Royce implement divisional structure as it provides
opportunity for business to increase its competitive strategies from competing with rivalries
such as Bentley Motors, Aston Martin, Mercedes, etc. It is essential for an organisation to
discriminate work as it increase specialisation by improving effectiveness and leads to direct
and control their action for restricting errors through corrective measures.
The relationship between functional areas of organisation with various
structures as:-
 Finance and Human Resource:- The finance is described as management of money,
particularly in relation with companies which invest funds for capital generation in
future. Human Resource refers as the people who empower the workforce by hiring
and retiring them from job in order to increase efficiency through recruitment and
selection. Managers of Rolls-Royce focus on the interrelationship between finance
and human resource as to manage their expected and actual budget of revenue and
expenditure to achieve goals and objectives.
 Sales and Marketing:- The sales is defined as to sell finished goods and services to
their customers in order to increase profit-margin. Marketing refers as the activity
through which a producer strategises new idea to develop its new product with the
motive to fulfil the demand of their potential customers. The managers of Rolls-
Royce implement this interrelationship as to supply their qualitative finished goods
and services for remaining stable in global market.

M2. Demonstrate the benefits and limitations of interrelationships
The organisation most probably deal with various activities through their interrelation
of functional areas such as finance and human resource, sales and marketing, information
technology with operation, production and research and development. These
interrelationships are beneficial for managers of Rolls-Royce as it interact with each through
building employee relations with engagement, involvement, encouragement, co-ordination,
etc. It creates possibility for business to increase competitive strategies for growth and
stability to compete with rivalries in perfect competition market. These interrelationships
have limitations as the business lacks in proper communication which might delay in
accomplishment of success.
CONCLUSION
From the above discussion it have been concluded that it is essential for an
organisation to analyse the factors of business environment that might create threats to
sustain in global market. This project analyse purpose and legal structure for public, private
and voluntary sector with their full description of vision, mission, objective, size and scope.
Apartly, it also describes the relationship between various functional areas of organisation
with their structure and culture such as finance and human resource, sales and marketing,
information technology and production.

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Online
Purpose of Environment Agency. 2020. [Online]. Available through:
<https://smarterbusiness.co.uk/blogs/what-does-the-environment-agency-do/>