Relationship between Organisational Functions and their Interrelation with Objectives and Structure

Business
And
Business Environment

Table of Contents
INTRODUCTION......................................................................................................................3
TASK 1......................................................................................................................................3
P1. Explain different types and purposes of public, private and voluntary sectors with their
legal structures........................................................................................................................3
P2. Describe the size and scope for range of different types of organisations.......................5
TASK 2......................................................................................................................................7
P3. Explain the relationship between different organisational functions with interrelation of
their objectives and structure..................................................................................................7
TASK 3......................................................................................................................................8
P4. Identify the positive and negative impacts of macro environment upon business...........8
TASK 4......................................................................................................................................9
P5. Describe the internal and external analysis of an organisation to identify its strength
and weakness..........................................................................................................................9
P6. Explain how strength and weakness interrelate with external macro factors................10
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................12

INTRODUCTION
The business environment consists of internal and external factors which affect the
functions of business that develops competitive strategies to compete with rivalries. The
organisation which is selected for this project is Morrisons which was introduced by William
Morrisons in 1899. It is the UK’s fourth largest supermarket chain with fresh services and
value to compete with rivalries. This project describes different types of organisation with
their size, scope, purpose and legal structures (Aithal, 2016). It further explains relationship
between different organisational functions through interrelation of their objectives and
structure. This also identifies the positive and negative impacts of macro environment upon
business operations. Additionally, it interprets the internal and external analysis of an
organisation from strength and weakness which interrelates with external macro factors.
TASK 1
P1. Explain different types and purposes of public, private and voluntary sectors with their
legal structures
Business environment is defined surrounding of an organisation which impact upon
the operational functions of an enterprise. The internal surroundings consist of suppliers,
competitors, public, customers, market intermediaries and external atmosphere includes
political, economical, social, technological, legal and environmental factors. There are
different types of organisations which are classified as public (not for profit), private (profit)
and voluntary (non-government) business sector which are mentioned below:-
Public Sector:- This enterprise is most probably governed by government through
politicians as focusing on public transportation, infrastructure, education, health care, military
services, etc. It runs business with aim of not-profit organisation which is considered as small
business such as BBC, British Army, Environment Agency, Network Rail, Automatic
Weapons Establishment (AWE), NHS, etc. This manufactures product for promotion and
supply it through various services for enlarging customers. From the above mentioned UK
public companies National Rail is selected as being the large managing network of railway
for government. This organisation follows ethos, norms and code of conduct imposed by UK
the head office of railway which provide guidance to operate business for its growth and
stability.
 Purpose:- The aim of public sector is to expand road and rail network for delivering
goods and services, distributing income and social welfare, etc. The main purpose of
Network Rail is to facilitate valuable and reasonable railway services for public.
 Legal Structures:- This sector mainly focus on legal legislations that involves local,
state and central government which helps to run business effectively with no profits.
The National Rail is considered as business operating its functions with transportation
facilities approved by government legal structure (Aydiner, and et.al., 2019).

Private Sector:- The sector which does not involve government regulations is
operated by entrepreneurs for maximisation of revenue and profits. The main purpose of this
sector is to fulfil the desire of target market by manufacturing goods and services with least-
cost effectiveness for enlarging customers. It mostly depend on profit motive organisations
which are termed as large business such as, Tesla, Sainsbury, Tesco, JCB, Mark and Spencer,
Greenergy, Morrison, etc. From the above prescribed private companies Morrisons is selected
as being fourth largest supermarket chain in United Kingdom.
 Purpose:- The main purpose of this sector is to maximise profitability ratios by
creating high job opportunities as compared to public sector. The aim of Morrisons
brand is to accelerate the change in midst of pandemic. The goal of organisation is to
become more competitive by serving their customers with total quality management.
 Legal Structures:- This sector mostly concentrates on providing tax benefits to their
business owners, minimise liability for sole proprietorship, partnerships, joint
ventures, merger and acquisitions, etc. The legal structure of Morrisons is described in
organisational-structure in which all the actions are performed in particular head and
department (Cai and Yang, 2014).
Some of the examples for legal structure are mentioned below as:-
 Sole Proprietorship:- This business refers an enterprise which consists of only one
entrepreneur that develops innovative ideas for planning through strategic decision
making procedure. Managers of Morrisons follow the direction and guidance of
business owner as to perform their actions with the motive to achieve organisational
goals and objectives.
 Partnership:- It is defined as the business which consists of either two or more
partners or business owners who collectively invest funds and share profits
proportionately. It is an arrangement where parties, known as business partners, agree
to co-operate in accordance with their mutual interests. Managers of Morrisons focus
on this private sector as to meet the requirements of customers that result in sharing of
profits as prescribed agreement.
 Corporation:- This is legal enterprise which is separate and distinct from its owners
which consists of all the rights for an individual, except the right to vote and certain
other limitations. Managers of Morrisons determine the rights and responsibilities that
individual possess by entering in contracts, loans and borrow money, sue and be sued,
hiring employees and pay taxes.
 Co-operation:- It is described as an organisation performs its action with
collaboration and co-ordination among each other that develops the ability to achieve
success efficiently. The workers act together for common, mutual, some underlying
benefit, etc. It is an activity of workforce to complete their action with help of
someone for some specific target. Managers of Morrisons provide charity and
donation for society that result to increase customer support and loyalty.
 Franchise:- This is defined as the marketing concept adopted by an organisation as
strategy for business expansion. It further focus on implementing franchisor licensing
with its know-how procedures, intellectual property, use of business model, brand and