Different Types and Purposes of Organizations

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