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

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