Different Types and Purposes of Organizations

This report explores the different types and purposes of organizations, including public, private, and voluntary sectors. It also discusses the size and scope of various organizations and their relationship with organizational functions. The report includes specific examples and analyzes the positive and negative impacts of the macro environment on business operations.

Business and Business
Environment

INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Explain different types and purposes of organisations; public, private and voluntary sectors and
legal structures.........................................................................................................................................3
P2 Explain the size and scope of a range of different types of organizations..............................................4
TASK 2.......................................................................................................................................................5
P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure. ..................................................................................................5
TASK 3.......................................................................................................................................................7
P4: Identify the positive and negative impacts the macro environment has upon business operations,
supported by specific examples ..............................................................................................................7
TASK 4.......................................................................................................................................................8
P6 Explain how strengths and weaknesses interrelate with external macro factors..................................9
CONCLUSION.........................................................................................................................................10
REFERENCES..........................................................................................................................................11

INTRODUCTION
Various organizations are set up with a specific purpose or mission which is different
according to ideas behind incorporation of the company or business. There are internal and
external factors of the business organization by which business environment is influenced. This
report is focused on external and internal factors which impacts on organization. For this report
analysis is in the context of multinational U.K groceries and general merchandise brand which
has a gross revenue. Functions performed by departments of a company and relationship
between various departments. Purpose, type and legal structure of different departments of
organizations and also size and scope of different organizations along with conclusion. This
report also revolves around internal and external analysis of specific organizations in order to
identify strengths and weaknesses.
TASK 1
P1 Explain different types and purposes of organisations; public, private and voluntary
sectors and legal structures.
Public organizations: It refers to not for profit organizations made with the motive to
provide services to the society. These organization generally have more interference of
governments as it works for the welfare of the people. Such services includes water supply,
education, public transport, telecommunications and various other services which can benefit the
society at large.
Purpose: The motive to incorporate these organization is to work for development and
improvement by which public is benefitted. These organizations are the bodies which are owned
and run by the government that seek to deliver the services to the goods. Its purpose is to serve
the society and not making profits. It may be run by private officials but government has direct
interference with the activities of the organizations. In context with NHS which is a healthcare
hospital in UK is made with the purpose of serving the people 24/7. It serves about 1million
people in 36 hours. It is one of the biggest private set up in England. Therefore it is contributing
toward the society at a large extent(Johnson and et .al., 2017).

Legal structure of NHS: Being a leading and fastest growing public company in UK they
have focused to improve their health facilities and providing more easily access to the people
who are in need for the health care services.NHS is successful in providing healthcare facilities
to the needy people by contributing positively and following the laws accordingly.
Private organizations: It includes the organizations which is incorporated with the
motive of earning profit. These can be owned and run by the government or by public officials.
These organizations generally have minimum interference of the government. It get involved
only when a private set up which can harm the life of people and pollute environment. These do
not work to serve the society so profits earned from these business are distributed in the members
of the company only or reinvested into another business( De Vries and et .al., 2017).
Purpose: The purpose of the organization is solely the profit- making. These are the
source for development and growth of the society. As it is made with the purpose of profit
making but it also provides employment to the people by which country of economy increased
which is a source for economic development of a country. In context with Tesco which is a
multinational British brand is retail company made with the purpose of generating profits.
Legal structure of Tesco: It is a private limited company which a has limited liability
which If suffers from the debt can sale its shares but the shareholders personal assets cannot be
claimed in the case of default. The creation of private limited company requires various
documents with registrar of the company. Tesco has complied with documents and legislations
required to become a private limited company( Kuzieva, N.R., 2017).
Voluntary Organizations: These are like public organizations which works for the
welfare of the society without the motive of earning profit. These organizations are made with
specific agenda or work for the social good. They help the people which are in need according to
the motive and intention of incorporation of the organization.
Purpose: The sole purpose behind these organizations is providing benefits and enriching
the society without any profit with the intention of serving the society ( Zaman, K., 2018). In

context with BHF They help the needy and poor people which are not capable to help their self.
They create wealth and make efforts in direction of improving the society.
Legal structure of BHF: British heart foundation is a voluntary organization which
gives services related to heart and circulatory disease having 14 trustees who are medically
qualified. The company is registered under the companies act and works according to the laws
accordingly.
P2 Explain the size and scope of a range of different types of organizations.
There are different types of business organizations which are made according to investment and
purpose . Various business enterprises according to size and scope are explained below:
 Small scale enterprises: In this type of business sector capital investment low. It
includes sole proprietorship and small partnership firms which have turnover of not
more than £6.5 million and employees up to 50 only.
Scope: As it involves a low cost of investment so, it has more popularity in developing countries
in which people are employed at daily or weekly wages. There is necessity of small businesses as
it adds value and income to the country which helps in widening and developing the economy. It
also provides opportunities for lowering the cost of business and providing employment. There
are some examples of micro enterprises such as Mrshfield Bakery, Fourex, Imaginera etc( Bocij
and et .al., 2018).
 Medium scale enterprises: It plays n important role in growth of the economy as these
types o business do not involves a high cost of investment and provides employment. It
includes fewer than 50 and less than 250 employees. It has turnover of around €50
million. These type of set ups are driver for economic growth and sustainability.
Scope: They are independent and self owned business which do not includes a large number
of workers and not a large amount of revenues. These organizations includes small scale
industries, corporations and partnership firms which has chance of varying in size and revenue

structure accordingly. Some examples of medium scale industries are Southern business
technologies, Fontain motors, Matefile etc.
 Large scale enterprises: These types of business includes the large scale industries and
multinational companies which have tendency to employ a large number of employees
which differs from size of every enterprise and had a large amount of turnover and
revenues which is not less than 1.5 billion euros.
Scope: It includes multinational companies which earns a large amount of profits and
provides employment to a large number of people which results in positive increase of country’s
GDP. It is helps in development and growth of the economy. The capital earned by these
companies are set aside for the further internal aspects and challenges. There are various
examples of large scale enterprise such as Tesco, HSBC, Unilever ,BP and many others( Davies
and et .al., 2017).
TASK 2
P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure.
There are various departments in a organization. For working of an organization there are
various departments which perform their duties accordingly. In context of Tesco there are
various departments which plays an important role and are dependent on each other for their
functioning they are explained below:
Operations Department: It seek to oversee the whole process of production. It is responsible
for creating a way of working which enables the business to work smoothly. The quality and
quantity of the products of a company is maintained by the operations department. In context
with Tesco operating department is responsible for satisfying their customers according to their
needs and wants through their products( Chawinga and et .al., 2017).
Finance Department: It tracks a record of expenses and income of the company. it controls the
finances and cashflows to make company reliable so that in time of need it can pay off its debts,
bills and can invests to gain more power. In reference to Tesco finance department is an
important part as it provides funds to every department and follow its obligations to maintain the

profits of the company. Financial department of TESCO establishes an outline for their
operations by laying out funding for every operations. In order to ensure continuity in working
the financial department associated organization works on acquisition of funding and in addition
to that making sure that there are enough reserves for operations.
Marketing Department: This department is responsible for promoting and advertising the
products and services of the company. It also deals with complains and problems of the
customers through social media, applications and providing customer care services. They listen
to problems and provides solutions to maintain the healthy relation with their customers. In
Tesco, marketing department helps to develop the relation and interaction by which they deliver
a strong brand image and participates in various activities by using effective methods and tools.
Human resource Department: They focus on carrying effective selection and recruitment
process for hiring the efficient and best employees by which companies productivity and
profitability increases rapidly. In context with Tesco HR department of Tesco is responsible for
adopting the convenient and strategic method for recruiting and provides training to the
employees by which they work efficiently.
Production Department: This department is responsible for maintaining the process production
and ensures about the quality of the products of the company. In context with Tesco it has duty
of this department to check and maintain the availability of the products o Tesco in market. It is
responsible for delivering the products within the reach of the customers( Gromoff and et .al.,
2017).
These are the various departments which work together for the smooth working of a company.
Without working together it is not possible for a company such as Tesco to function. Operations
department is responsible for cash flows and expenditure of a company which is provided by
finance department of Tesco. As it is the duty of the finance department to control the
expenditure and make efforts in increasing the revenues. So, these departments cannot work
without assessment of each other. Moreover, production department controls the supply and
demand of the customers and responsible for maintaining the quality and reach to customers
which also needs finances and marketing strategies. If people do not have knowledge about the

quality and prices of the products and services provided by a company maintaining the quality
has no worth. People who works and maintains all the functions of a company plays an
important role which is the key responsibility of human resource department of the company. it
adopts the methods and tools which are convenient according to the needs of the company. it
also provides training which helps a candidate to develop skills and knowledge which increases
the profits of the company. It is inferred that these departments have relation with each other and
cannot work separately.
TASK 3
P4: Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples
Pestle analysis in context with Tesco is explained as above:
PESTLE ANALYSIS
Political It is a UK based multinational
company which have to follow
various regulations. As it
operates across carious countries
it has to face various political
factors according to the political
structures and changing political
circumstances. It is an
opportunity for Tesco to carry
out their business where political
environment has stability.
Otherwise, regular changes in tax
policies, various supply policies
can effect the profitability of
company negatively.
Economic The company have to keep an

eye on the changing economic
condition in the countries where
Tesco operates its business. It
can become a positive point for
the company if it tracks the
economic stability of different
economies. Any changes in the
economic conditions of UK may
effect the revenue of Tesco and
redesigning may involves a
higher cost( Trad, and Kalpi.,
2017).
Social Due to fast life people prefer to
buy everything from one place
only. So, Tesco has planned to
facilitate the demands of their
customers for which stores have
been opened to satisfy the needs
of the customers. Changing
trends and societal influence
preferences of the people
changes rapidly but Tesco has
managed to capture its customers
by shifting towards organic
products.
Technology By the advancement of the
technology Tesco has managed
to attract its customers by
adopting the trends of technology
such as by providing facility of
online shopping through various

social sites and applications. As
people spent more of its time in
using internet which is a
opportunity of technological
advancement for Tesco
Legal The change in government
policies effects the operations of
a company. There are various
laws and regulations which must
be followed by the company for
its smooth functioning. In context
with Tesco legalities must be
followed seriously to maintain
the reputation of the
company( Fernandes, A.R.,
2017).
Environmental Tesco has taken initiative in
order to improve the
environmental practices and
sustainability. It is making efforts
in reducing the use of plastic
which is a plus point for the
goodwill of Tesco as now a days
company has to perform some
duties towards environment.
TASK 4
P5 Conduct internal and external analysis of specific organizations in order to identify
strengths and weaknesses

SWOT analysis is performed by the various companies to analyze various internal and external
factors of the companies which impact the company. In context with Tesco SWOT analysis is
performed to know about the situation of the Tesco( Ferro and et .al., 2017).
Strength
 Tesco is one of the leading grocery
retailer store in UK. It has higher sale
and revenues than any other
multinational stores un UK. Its profits
increases every year which make it one
of the biggest and strong competition in
the market.
 It has a vast geographical
diversification. It has more then 6800
stores in around 14 countries which
covers a huge area of Europe and North
America.
Weaknesses
 There has been a number of complaints
by the customer of Tesco about the
quality of products. It is a disturbing
element for Tesco. It indicates that
there is requirement of improvement in
controlling quality of products.
 There is also a problem of shortage of
products with Tesco. Many of the times
demand of the product is high and it
does not comply with needs of the
customers( Linder and et .al., 2017).
Opportunity
 With the advancement of the
technology it has opportunity to expand
its business by the use of social media
as people nowadays, prefer online
shopping rather than going to stores.
 Emerging and developing new markets
has also become an opportunity for the
Tesco. As it can open its stores in
developing countries where there is a
need for these types of stores.
Threat
 There are various threats as there is
large amount of competition in the
market. There are various stores such as
Asda, Walmart, Carefour and many
others which becomes threat for the
Tesco.
 Recession in the economy of the
companies has also become a threat for
the company such as Tesco. If spending
capacity of the people decreases it can
hamper the profits of the company.

P6 Explain how strengths and weaknesses interrelate with external macro factors.
Using TOWS matrix model, interrelationship has been discussed in context with Tesco.
Threats:
 Presence of huge competition in the market and availability of substitutes such as
Walmart, Asda and many other brands has become a threat for Tesco.
 There has been increase in growth of other stores in the company and purposing more
convenient products at a low price( Allmendinger and et .al., 2017).
Opportunities:
 The company has expanding their business rapidly in the various countries.
 They are using high end of promotions and also by introducing the online stores by which
availability of their products have become more assisible.
Weaknesses:
 There has been a number of complaints by the customer of Tesco about the quality of
products. It is a disturbing element for Tesco. It indicates that there is requirement of
improvement in controlling quality of products.
 There is also a problem of shortage of products with Tesco. Many of the times demand of
the product is high and it does not comply with needs of the customers.
Strength:
 They possess an effective and positive management system within the company which
has helped the departments to carry out effective decisions for the company.
 They have constitute a method of reliability and transparency within their organization as
well as with their clients( Chaturvedi and et .al., 2017)

CONCLUSION
From this report it is concluded that there are various business functions and relations in context
with Tesco. Various departments and their relationship with each other is also discussed. Internal
and external factors is explained through PESTLE and SWOT analysis along with strength and
weaknesses in relation with external factors of Tesco. In addition to that, it can also be concluded
that the threats associated with operational contingency of Tesco are Presence of huge
competition in the market and availability of substitutes such as Walmart, Asda and many other
brands has become a threat for Tesco. In addition to that, there has been increase in growth of
other stores in the company and purposing more convenient products at a low price.
Furthermore, the opportunities for TESCO in market are The company has expanding their
business rapidly in the various countries. Furthermore, they are using high end of promotions and
also by introducing the online stores by which availability of their products have become more
assisible. On the basis of aforementioned dynamics and arguments it can also be concluded that,
strengths associated with TESCO's operations are they possess an effective and positive
management system within the company which has helped the departments to carry out effective
decisions for the company and in addition to that, they have constitute a method of reliability
and transparency within their organization as well as with their clients.

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