Types and Purposes of Organizations: Public, Private, and Voluntary Sectors

BUSINESS AND BUSINESS
ENVIRONMENT
Table of Contents
1

INTRODUCTION......................................................................................................................3
LO1: Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures.........................................................................................3
LO1: Explain the size and scope of a range of different types of organisations....................4
INTRODUCTION TO TESCO...........................................................................4
PRODUCTS AND SERVICE OF TESCO...............................................................5
VISION AND MISSION OF TESCO.....................................................................5
OBEJECTIVES OF TESCO...............................................................................6
LO2 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure...................................................................6
ORGANIZATION STRUCTURE OF TESCO..........................................................7
LO3: Demonstrate both the positive and negative influence/impact the macro environment has
on business operations.......................................................................................8
PESTLE ANALYSIS OF TESCO..........................................................................8
LO 4: Determine the internal strengths and weaknesses of specific businesses and explain their
interrelationship with external macro factors............................................................11
SWOT ANLYSIS OF TESCO.............................................................................11
CONCLUSION............................................................................................................................13
REFERENCES.............................................................................................................................13
INTRODUCTION:
2

Organization is a group of people working together for a common goal and task. While
working in the organization the managers has to do different types of work like planning,
organizing, coordinating and controlling. Organization has to work under different type of
environment which depends on the political, economic, social, legal and technological
environment of the country in which it is doing operation.
LO1: Explain different types and purposes of organisations; public, private
and voluntary sectors and legal structures.
There are generally five types of business organizations. It includes private organization,
public organizations, cooperative organizations, charity organizations and NGOs. Private
organizations are those where ownership is in the hand of private individuals. They work on the
principle of attaining profit. They deal with the law structure of the country in which they are
working not that of their parent country. Private organizations can be further divided into sole
traders, partnership and cooperative organizations.
Sole traders run their business on their own. There is no separation in the liability of the
owner and the business organization. It is best suitable for the small investors. Since the decision
with respect to the business has to be taken by single person so it is quick and faster in
communication. In UK you have to get your business registered in HM revenue and customs and
start the business. All the tax payment has to be done by the owner itself. Partnership is a binding
agreement in between two or more person who is working together for a common purpose. The
parties involved in the contract may be company, other partnership fir or a individual person.
The partner is liable to the liabilities depending on the percentage of his investment in the
organization.
Public organizations are those which are controlled by the government bodies. Their
main aim is not profit but serving for the society. They are autocratic in nature. They do not
focus on the profit making but focus on the betterment of the society. There control is
centralized. The decision making is the hand of some individuals and the other do the
implementation part. Charity organizations are non government bodies and they work on the
principle of well being of the society. They are nonprofit organizations. Cancer research
organization is an example of charity organization in UK.
3

LO1: Explain the size and scope of a range of different types of organisations.
Organization should have a common purpose of working which motivates them to work
hard. They have a clear set of vision, mission and objectives of the organization that they have to
achieve in the specific period of time. Tesco is one of the largest retail companies of UK. It has
expanded into different countries like china, India, hungry, Malaysia etc. They put maximum
efforts to help their customers and the employee in the commitment that they have given. The
store manager is doing his best to provide the best service to the customer who visit their store or
do online shopping from their website. They have to get feedback from the customers because
they are the individuals who come in direct contact with the customers. They provide this
feedback to the top level management. The top level management takes decision and built
strategies on the feedback given by the customers.
INTRODUCTION TO TESCO
Tesco was founded by Jack Cohen in the year 1919. It started as a public limited
company. It has its headquarters in in the city of Welwyn Garden City at Hertfordshire, United
Kingdom. It has around 100 Tesco shops all round the world. The current chairperson is John
Allan. Tesco has a large number of businesses. They have easily adopted the legal structure of
the host country and deepened their relationship with the host country (Coe and Lee, 2013). The
values of the organization can be seen in each and every step they take for the organization. They
believe in the transparency of business. They tell the customer what they are producing for them
so that the customer sets the achievable targets for the organization. They are conscious towards
the dangers that business do towards the environment. They have started a zero carbon
supermarket, which is the first of its kind. This kind of environment change product does not
produce hazardous product for the society. This is one of the long term objectives of the
organization.
PRODUCT ANS SERVICES OF TESCO
4