Types and Purpose of Organisation; Public, Private and Voluntary Sectors and Legal Structures

This document provides an explanation of different types and purpose of Organisation such as Public, Private and Voluntary Sectors and Legal Structures. It also covers the size and scope of a range of different types of Organisation.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain different types and purpose of Organisation; Public, Private and Voluntary Sectors
and Legal Structures....................................................................................................................3
P2 Explain the size and scope of a range of different types of Organisation..............................4
TASK 2............................................................................................................................................6
P3 Explain the relationship between different Organisational Functions and How they link to
organisational objectives and Structure......................................................................................6
TASK 3............................................................................................................................................8
P4 Identify the Positive and Negative Impacts the macro environment has upon business
operations, Supported by specific examples...............................................................................8
TASK 4............................................................................................................................................9
P5 Conduct Internal and External analysis of Specific Organisation in Order to Identify
Strengths and Weaknesses..........................................................................................................9
Strength.....................................................................................................................................10
P6 Explain how strengths and weaknesses interrelate with External Macro Factors...............11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business is an activity of seeking profit in exchange of commodities from one party to
another party. The products and services are purchased or sell in respect of earning profit but
sometime business may face loss which doesn't mean that they will stop their activities of
exchanging. Business environment are the factors which influences the performance, growth,
survival and profitability of an organisation. These factors are controllable or sometime
uncontrollable for Company (Gorla, Chiravuri and Chinta, 2017). There are two types of
Business Environment such as Internal Environment and External Environment. In Internal
environment the factors which exist are Strength and Weakness of an Organisation it also
includes Human resources, vision and Mission, Objectives, Labour Union, etc. External Factors
are the threats for business, they are divided into two category Micro and Macro Environment.
The project covers Types, Size, Scope and purpose of Organisation. An Explanation is given fro
different organisation functions and how they are interlinked to each other. The report also
contains Positive and negative impact of macro environment, also an analysis is conducted of
Internal and External within Business (Khajeheian, Friedrichsen and Mödinger, 2018).
TASK 1
P1 Explain different types and purpose of Organisation; Public, Private and Voluntary Sectors
and Legal Structures.
Public Sector Organisation is one of the type of organisation which is regulated by
government and some of the public agencies, they provide services to people. The public
organisation are considered a snot for profit organisation. The Purpose of this Sector is to
provide services to Citizens rather than earning profit. The goal of Public Sector Organisation is
to look out the interest of public by improving services like solving out issues, addressing
concerns of public and providing medical care. Most of the public sectors are used to finance by
public money which is paid by them in terms of taxes to government. The Examples of Public
Organisation is Police, Public transit, Military are public sector agencies. British broadcasting
corporation is Public Sector Organisation (Gebauer, Haldimann and Saul, 2017).
Private sector Organisation is owned by privately owned person and it is not Operated
by government. The Ultimate goal of this type of Organisation is to earn profit, they contribute
large share of economy in Capitalist and free market society. The private sector organisation is

managed and controlled by enterprises. The purpose of private sector organisation is to make
profit that provides benefits to its shareholders, investors and owners. The Private organisation is
financed by money of shareholders and Bank loans (Newell and et. al., 2016). The Examples of
private sector organisation are Retail, sole proprietorship, hospitality Industry, etc. Tesco is
Private Sector Organisation.
Voluntary Sector is an Organisation which is not controlled by government and it is not
for profit organisation. The purpose of voluntary sector is to provide benefits and enrich the
society with or without government intervention. The Voluntary sector comes under third space
as other two sectors neglect their needs and doesn't see as profitable organisation. The Examples
of Voluntary Sectors are Charities, Civil society, Community sector, etc.
Legal Structure of Organisation
Sole proprietorship is one of the simplest form of organisation structure which is owned
by single person. The owner manages all the activities of business and they are only liable to
bear any loss. The sole proprietorship have enough confidentiality as there is no law for them to
maintain financial accounts and other documents (Halbert and Ingulli, 2020). They doesn't have
to share profits as they are independent person to operate the activities of business. For example,
small retailer businesses, artist, financial planners, etc.
Partnership is an other form of organisation which is owned by two or more persons.
They mutually agree to form a partnership and run the business successfully. The partners in an
Organisation have shares according to their capital which they bought in establishing Business.
The partners shares losses and profit in their agreed ratio, a partnership deed is made in which all
the rules and regulation are drawn by which all the activities will be performed in an
Organisation. For example, BMW & Louis Vuitton, Casper & West Elm.
Limited Liability Company is a type of an Organisation which is owned by its
Members. It is simple to form and provide protection to business from liability (Bruijl, 2018). It
is separate from its owners which means any loss occurred, entity will be liable to pay of debts.
For example, Nike, Blackberry, Westinghouse and Blockbuster are limited liability companies.
P2 Explain the size and scope of a range of different types of Organisation.
Size and Scope of Organisations

Basis of
Difference
Large Businesses Medium Size
Businesses
Small Size
Businesses
Meaning Large Businesses are the type
of Organisation on the basis of
Size. It is a business which
consist more than 250
employees.
Medium Size
Businesses is another
type of Organisation
which have less than
250 staff members and
their turnover should be
under £50 million.
Small Scale
Business activities
are performed at
small level which
includes less capital ,
fewer machines, and
less labour. The
Business includes
fewer than 50
employees in a unit.
Objectives
and goals
The objectives and goals of
large business is to earn profit
with enhancement in its
operation activities.
The businesses operates
their operational
activities at medium
level and gain revenue
by accomplishing their
objectives and goals.
The objectives and
goals of Medium
Size Business is to
increase their growth
by expanding
operation activities
with enhancing its
market share.
Market Share They have high Market share
which means the sale of
company is good. For example,
HSBC is a Banking Industry its
market share is high in Market
as it is one of the recognise bank
in UK.
Market Share of
Medium size business is
sometime high or low it
depends on the quality
and services offered by
company. For example
Checkout.com is an UK
based company, the
market share of
company is not to so
The Market Share of
Small Size Business
is depend on its
performance in
Market. For
example, The
Canvas Cafe is
consist in small size
business, the market
share of the Outlet is

high due to its presence
in Market.
low due to its
positing and
capturing power in
Market.
Profit Share The Profit Earned in Large
Businesses is High due to the
value they have earned in
Market. The profit is shared
between employers and
employees, generally the
decision is based on Owner of
Company.
The profit earning
capacity of Medium size
business is good,
sometime they earn
huge profit and might
face loss too. The profit
share of company
depends on the ratio of
shareholders which is
decided by Owner.
The profit sharing in
small size business is
low as there are less
employees. The one
of the example of
small size business is
sole proprietorship,
the business are
owned by single
person they earn
huge profit and bear
any risk occurred.
Growth and
Sustainability
The production system in this
type of business is usually large
and it requires high investment
for establishing production unit
which leads to increase in
growth. The sustainability of an
organisation can be achieved if
the production unit work
without wasting materials and
harming environment.
The growth and
sustainability of medium
size business depends on
developing new ideas
and implementing it in
launching new products
to compete in Market.
The Small size
business can grow by
expanding their
operational activities
in new area and
market.

TASK 2
P3 Explain the relationship between different Organisational Functions and How they link to
organisational objectives and Structure.
Role of Marketing and its interrelationship with other functions
The Role of Marketing is to communicate the customers why they must purchase the
products and services of Company. They play a role in increasing the brand image and value in
Market by providing excellent services with better quality of products. The Marketing
department is linked with human resource and finance department as for making marketing
decision related to promotion and organising marketing campaigns they require investment for
which they have to coordinate with finance department (Seyedghorban, Matanda and LaPlaca,
2016). For organising market campaigns and promoting the brand value they requires employees
which is selected by Human Resource department. Both the department have to maintain a
proper communication between them for the need and requirement of human resource in
Marketing Function.
Role of Human resource and its interrelationship with other functions
The role of Human resource department is to manage overall employees of an
organisation by increasing their performance and efficiency. The Human resource department
performs various activities such as training, recruiting, compensating, hiring, developing policies
and strategies. The human resource are interlinked with other functions as all the department
needs employees to perform the duties and responsibility in an organisation so they have to
coordinate with Human resource department for any requirement of staff (Escaleras and Chiang,
2017).
Role of Finance and its interrelationship with other functions
The role of Finance Function is to manage and maintain the flow of Cash exchanges, they
also helps in managing profitability, expenses and credit of an organisation in effective and
efficient way so that Company leads to increase in growth. They are responsible for proper
planning of resources and Financial activities. The Finance department requires the help of
marketing function, as for making financial plan including cash flow analysis, capital
requirements and other financial policies they require marketing input. They provide information
related to operation of Company to operation department and they execute the performance and
day to day activities in Business.

Role of Operations and its interrelationship with other functions
Operation management role is to implement the right process which gives best outcomes
and result and make company more profitable in Market. They improve performance, secure
compliances, formulate strategies and procure resources. The operation department of
organisation helps in increasing the efficiency which brings maximisation in profit earning
capacity of Business. The operation department ensures that all other functions of organisation
are going in planned direction or not (Lim, 2018). The marketing department and operation
department are interlinked with each other as marketing helps in creating demand and operation
department helps in fulfilling the demand.
These all functions are interlinked with each other as they helps in achieving goals and
objectives of Company. All the functions of Business increases efficiency and performance of
employees that makes them to contribute their best in increasing growth of Organisation.
TASK 3
P4 Identify the Positive and Negative Impacts the macro environment has upon business
operations, Supported by specific examples.
Pestle Analysis on Tesco
Political Factors
Due to Financial instability, Tesco plays an important role in creating a jobs for people.
Brexit has bring new regulations which create an impact on the sale of Tesco. The War between
US-China has also affected the performance of Tesco. As the Company is established in different
countries any change in tax policies can create an impact on the profitability of business.
Economic Factors
Tesco uses two strategies for the success of its business they are internationalisation and
diversification. The Company needs to put their eyes on economic changes in Countries in which
they operate as these are the factors that could affect the profitability, distribution and sales of
Organisation (Chung and et. al., 2016). Due to decrease in Household incomes and disposal
income they shifted their focus on advertising its brand value by not keeping more emphasis on
Luxurious items.
Social Factors

Tesco has planned to facilitate the needs and demands of customers which helps in
increasing the brand image of Company. Tesco must tie up with local shopper to increase their
sales and profitability. By using this technique the Company can connect with customers and
can gain their loyalty. Nowadays, Customers are more focused on their heath, they demand
healthy food items which doesn't harm their health (Russo and Confente, 2017). The Company
must look out the changing behaviour and pattern of consumers as they demand organic food
items.
Technological Factors
Tesco has adopted a latest technology to attract customers and regain their trust after the
problems occurs due to poor customer experiences. The Company have also introduced RFID
Technology which helps in increasing store experiences for employees and consumers. They
have also developed its own online mobile payment system by which customers can pay for
products easily without waiting in line for making payments and save their time. Tesco was
facing an issues related to horse meat scandal and poor customer experience. The latest trends
can affect the functioning of activities in Tesco (Tuan and et. al., 2019). The company have to
watch latest trends that can help in making changes according to it and remain competitive in
Market.
Legal Factors
Tesco have faced many legal issues, the employees have taken a legal action for the
discrimination of age and gender. The workers were getting low pay for weekend, bank holidays
shifts and night. A other legal action was also taken for misleading the investors and conducting
accounting fraud which is settled by paying certain amount.
Environmental Factors
The Company have taken various initiatives for creating sustainable society and
improving the environment. They have launched a Phase 2 of Reduce, Remove, Reuse and
Recycle plan. Tesco has taken a part in reducing the plastic at minimal level and create an
innovative way of using residual plastic. Tesco is working on creating a system by which fishes
were caught in boat so that there will be Zero Tolerance policy for illegal sourcing (Nguimkeu,
2016). The Company has reduced its Carbon footprint and also minimise the waste produced in
stores.

TASK 4
P5 Conduct Internal and External analysis of Specific Organisation in Order to Identify Strengths
and Weaknesses.
SWOT Analysis of Tesco
Strength
The one of the strength of Tesco is that they are not dependent on single segment, they
have diversified customer base. The Company have invested more in providing training and
development to their employees by which they can give their best outcomes to increase the
productivity of Company. They satisfy their customers by providing products at affordable price
by which they can achieve high level of customer satisfaction. The Company have diversified
geographically in different areas like clothing, petrol, telecoms, books and internet services.
Tesco is also listed in London Stock Exchange due to its Financial strength (Niedermeier, Wang
and Zhang, 2016). They have their own private labels which helps them in increasing its brand
equity in Market. For packaging Tesco have new packaging techniques that attracts customers to
buy the products. The Brand has established because of its innovative advertising and marketing
strategies.
Weakness
Tesco has faced many controversies which has created a huge impact on its performance
and brand value. The weakness of Tesco is that they have limited presence in developing
countries which makes other competitors to capture the new market. The Company have faced
controversies with Weatherford and Vacro for violating their some of the patents. In case of
economic slowdown Tesco can face huge problem as they operate their business in North
America by focusing on few operation creates an impact on its performance.
Opportunities
The opportunity which Tesco can gain is to expand their business in developing countries
so that their profitability and growth could increased. The diversification in other country can
leads to create strong customer base by which they can gain loyal customers. To expand their
reach and grab more and more customers Tesco can use digital media for attracting customers
towards supermarket. The business of Tesco can be enhanced by acquiring smaller chains and tie
ups with social networking sites so that their sell could be increases. For sustaining in Market
Tesco have to innovate constantly so that they cab gain competitive advantage.

Threats
The competitors of Tesco can imitated their products and services which must be
changed or new products must be launched so that they can achieve uniqueness in the Market.
The one of the major threat which can affect the performance of Tesco is government policies
and taxation. If there is change in oil and gas prices the company may face consequences the
price can be fluctuate due to political turmoil. The variation of demands can also create an
impact on the business activities of Tesco.
British Broadcasting Corporation SWOT Analysis
Strength
British Broadcasting Corporation has started their Journey in 1922, due to their presence
in several decades customers have faith on the news which is broadcast. This create a loyalty of
customers toward Brand. The company is one of the largest broadcaster in World with several
numbers of employees by which they have gain huge popularity in Market. The strength of BBC
is that they bring new and latest things for their viewers. They have also contributed in bringing
HD Channels, Colour TV and 3D Channels. They apply unique marketing strategy which makes
company to gain more value in World (Svensson and et. al., 2016). The Company knows how to
achieve their goals and objectives. BBC has strong brand image that attracts more customers.
BBC have strong cash flows that makes them to invest and expand in their new projects.
Weaknesses
The weakness of BBC is that they heart the sentiments of audience, they broadcast
sensitive issues of Society by which a controversies is raised against company. They keep
digging the controversial issue which makes people that they are creating negativity in World. A
Biased Perspective is given by company on debate which is raised by them for broadcasting
news. The operating cost of BBC is High it is one of the main weakness of Organisation. BBC
Competitors are performing their functional activities at lower cost as comparison to them.
Opportunities
BBC has adopted an opportunity for making their business more profitable, they have
stepped into programs and Entertainment zones. They now Broadcast the shows of kids, fashion,
technology and entertainment. One of the biggest Opportunity they have grab is creating joint
partnership with different satellite channels. The Company can attract customers by identifying
requirements and demands of customers. A proper analysis must be conducted to know about the

customer preferences. The Organisation must try to avoid unbiasedness while covering any story
and broadcasting in news. For making their brand more valuable and recognisable BBC have to
organise global events.
Threats
The Threat for BBC is their competitors, the company have competitors in market which
create an impact on performance and growth of Organisation. The one of the biggest competitor
of BBC is CNN. They also face threat from domestic channel which are growing rapidly and
gaining strong customer base in Market (Friend and Johnson, 2017).
P6 Explain how strengths and weaknesses interrelate with External Macro Factors.
The Strength and Weakness are Interlinked with Macro Factors as Company strength
helps in overcoming the impact of external factors. The Organisation must overcome there
weakness and convert it into strength.
Basis of Difference Strength Weakness
Political With changing Political factors
also Tesco is providing jobs to
people. It is one of the strength
of Company that they creates
job in Financial instability too.
The Organisation has faced
many problems due to war and
Brexit which create an impact
on its performance and
business growth.
Economic If Company produces more
products and services,
customers have various choice
to avail the benefits this helps
in increasing consumption and
leads to high GDP.
For improving its stability and
performance the company
have to look out the economic
changes that could influence
Business activities.
Social Tesco aim is to fulfil the needs
and requirements of
customers. They make
products which attracts
customers.
The influence of Healthy and
hygiene food can put an effect
on organisation. Tesco have to
keep their focus on providing
Healthy foods to customers.
Technological By adopting new and latest Tesco has faced many issues

technologies Tesco can attract
more customers towards them.
They have to focus on
attractive and sustainable
packaging.
related to customer experience
and their trust. For gaining the
loyalty of customers they have
introduced a RFID
Technology.
Legal Tesco have there branch in
several countries. They follow
rules and regulation of each
country with proper norms and
adhere.
The Company have come
under various legal issues by
which there reputation in
market get decreased.
Environmental For making the business more
sustainable they have taken an
action of reducing plastic
packaging which is one of the
strength of Company.
The Organisation has received
worst rating for using toxic
chemicals in their products.
They are working on reducing
carbon footprints.
CONCLUSION
From the above information it is being concluded that there are different types of
organisation and each have its own purpose they are public, private and voluntary. The Legal
structure of organisation are Sole proprietorship, partnership and limited liability company. The
organisation are also divided on the basis of size such as Small business, Medium Size
Businesses and Large Size Businesses. There are various functions of organisation which are
interlinked to each other and achieve the goals and objective of Company.

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