2 Explain the size and scope of a range of different types of organisations

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Different types of organisation, their purpose and legal structure....................................3
P2 Scope and size of different types of organisation.............................................................5
LO2..................................................................................................................................................7
P3 interrelationship of organisational functions with its objective and structure..................7
LO3..................................................................................................................................................9
P4 Positive and negative impact of macro factors on business operations............................9
LO4..................................................................................................................................................9
P5 internal and external analysis to find strength and weakness of organisation..................9
P6 Effects of macro factors on internal analysis....................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business and Business environment means collection of all the internal and external
factors including customers, employees, management, demand supply etc. which affect the
business organisation. Present study is based on Sainsbury's. It is second largest supermarkets in
UK that deals in groceries, clothing, home wares, electric etc.it has 16.9 % share of supermarket
in UK. The company has expanded its business in many different sectors including Sainsbury's
supermarket, Sainsbury's fuels, Sainsbury's cafe, Sainsbury's local, Sainsbury's online
distribution. The company has its many subsidiaries also named Sainsbury's bank, Sainsbury’s
energy, in all it can be concluded that Sainsbury’s has captured a larger share in the market of
UK where it retailing in almost every industry.
LO1
P1 Different types of organisation, their purpose and legal structure
Public company-
Public sector organizations are the one which owned and operated by government
authorities. Such firms exist for offering quality services to its citizens and creation of
employment opportunities. In public organization government owns 51 % shares and treated as
separate legal entity. Government organization are funded through many sources through taxes,
fees, gifts, financial transfers etc. these are the companies whose shares are traded freely on stock
exchange. They can issue their securities through an initial public offering. Example of public
sector can be taken as Sainsbury's which is a public company (Bouckaert, Peters and Verhoest,
2016.)
Purpose
 The government organisation work for welfare of the public not for earning and making
profits. They also provide the service in which the non- payer-cannot be excluded as like
street lights whose benefits is taken by all the public including those who has not paid.
Legal structure
 The public company is run by Board of directors on behalf of their shareholder.
 They can sell their shares on stock exchange to public members.
 Public limited company (PLC) has to publish their annual accounts.
Private company
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These are those companies which are operated by private group of individuals. it is held
by some individuals having a separate legal entity. They doesn't offer their company's stock to
public for sale and which is operate under legal requirements private companies require
minimum 2 members and maximum 20 members in an organisation. These companies are not
able to transfer the shares freely , law has provided them some of exemptions which public
companies do not enjoy. example of private company are:-River island which is a successful
private company deals in fashion brand.
(Fallon and Rice, 2015)
Purpose-
Their focus is to earn maximum profits and carrying on the activities which helps in
maximizing the firms profit.(Fallon and Rice, 2015)
Legal structure
 Business should have separate legal entity for the business.
 Each shareholder of the company Must be part of the business and have no right to sell
their shares to general public.
 These companies are required at least 1 director and 1 company secretary
 Each shareholder having limited liability for any debts of the company.
 A company must be run by Board of Directors and headed by chairman.
 All the legal documents should be completed including the most important documents
that are memorandum of Association and article of association.
 After the completion of these documents they are sent to registrar ,after confirmation
regarding ball documents are submitted that they issue a certificate of Incorporation.
Voluntary organisations
These are those organisations in which individual or group of individuals enter together
into an agreement as volunteers to accomplish a purpose of providing welfare services and not
for making profits. The voluntary organisation are set-up to educate ,providing knowledge to its
members for social norms and objective so that they can achieve their goal. Examples of such
organisation are:-
Red cross , YWCA Foundations, world vision, bill and Melinda gates foundation etc. which
deals in providing health and welfare services to the people so that they can satisfy the people
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who are in need. These organisations help in development of the people in education, housing,
health, many services which overall help them in the personal development of population.
Purpose
These organisations worked for providing welfare services and aiming in creation of wealth for
public and society.
Legal structure
 it should be unincorporated association which means they not having a separate legal
entity from their individual trustees.
 The voluntary organisation must be limited by guarantee ( CLG)
 It should be charitable incorporated organization.( CIO)
 The owner of the voluntarily organisation is responsible for all the liability of
organisations a stheir members holding limited fallibility..(Fozer and et.al., 2017.)
P2 Scope and size of different types of organisation
Public Private Voluntary
Company name NHS River Island Red Cross
Objectives of the
company
It main purpose is to
provide free of cost
treatment to public and
improve health and
social care.
The main objective of
company is to enhance
its profit and expand
operations across the
world.
To protect and
alleviate the human
sufferings wherever it
found by protecting
life and health with
ensuring of respects
for human.
Vision The company vision is
towards providing a
better quality of health
services at free of cost.
To become the leading
brand in the industry
and gain competitive
advantage.
Generating human
respect and preventing
their life in case of
needs by providing
health and welfare
services.
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Mission It main mission is
prevent and reduce
health issue and support
to low income people.
To become the
successful brand in the
industry and make
people loyal towards
the brand.
To prevent human
sufferings in case of
emergencies.
To alleviate human
any sufferings by
human by imposing
and mobilizing the
power of volunteers.
Organisational
structure
They follow tall
organisational structure
so that they will be able
to provide the health
care and welfare
services across the
world.
Company follows flat
organisational
structure, there is
smooth flow of
information and all the
members can
coordinate with each
other effectively.
They follow the matrix
structure so that they
will be able to get the
information from each
individuals and
accordingly the
decisions can be taken
and implemented.
Legal structure This company can
freely transfer their
shares to public.
7 members are
minimum required in
the business and has no
limit for maximum
members.
It is not necessary to
sale its shares on stock
exchange. Owner is
responsible for all the
liability of company.
All the decisions are
taken by owner and
board of members, as
there is no intervention
of government.
The voluntary
organisations follows
the legal structure
same of incorporated
association and trust.
Stakeholders In the public company
managers , government
Employees, suppliers,
managers, customers,
Public, managers,
employees, customers
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and employees are
stakeholders of the
company.
investors can be stakeholder of
the company.
Scope This is the world's
leading health care
service company which
provide efficient
services.
River Island has
adequate financial
resources and has high
scope to grow well in
international market in
near future.
There is high scope of
business, as firm is
continuously entering
into new markets in
order to provide
quality health care
services to patients.
Advantage Health and safety
improve through NHS.
Health issues reduce
day by day.
Standard of living
increase to people.
People get quality
health services and
issue related to health
also reduce.
Disadvantage Corruption increase
because political party
consume money of
donation and charity.
Competition increase
because day by day
fashion and clothing
organization
increasing.
Corruption increase
day by day through
this.
LO2
P3 interrelationship of organisational functions with its objective and structure
Organisational functions interrelation with objectives
Organisational functions are of different type including human resource management,
finance, marketing, production, purchase, sales, etc. .All the departments are interrelated with
each other. Functioning of one unit impact on other department as well (Mellor, 2018 )
The organisation always tries to perform the functions efficiently so that they can be able to
achieve their objectives and goals.
Interrelation of functions with structure
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The control and management of functions are required to perform effectively so that all
the activities can be performed accordingly.
The managers off the Sainsbury's manages and control these functions by following
organisational structure. Sainsbury's follows tall organisational structure, as higher authorities
take all the decision and lower level employees have to follow instruction of top management
(Syam and et.al., 2017)
This structure supports in making quick decision, as there is no need to involve lower
level employees in decision making process thus, management can make quick and correct
decision. All the departments have to follow guidelines provided by these authorities that helps
in smooth functioning of operations and getting desired results.
1.Human resource management with marketing-
HRM of the organisation are important resource of the organisation as they are the only
people who implement all the resources efficiently and have optimum utilisation of resources.
the HRM of Sainsbury's recruit the most skilled and specialised person which further help
marketing department to market their company's product in most efficient way.
The better the product is marketed the more the customers get attracted and hence Sainsbury's
will able to achieve the great and larger market share in the industry. (Wollmann, 2016. )
2.purchase and finance-
Purchasing of the raw material will only be possible if the finance department will
arrange all financial resources effectively . Finance department is responsible for effective
allocation of funds and monitoring the cash outflow activities. This help purchase department in
minimising unnecessary cost and buying raw material from reliable suppliers. On other hand
purchase department concentrate on buying material from good suppliers those which can offer
cheaper raw material with high quality. That aids finance department in managing funds well.
3.production and sales
-the efficient production and timely production of quality goods and services will help
sales department to take orders and fulfil them in given time period. Production department helps
in generating quality goods, by this way sales can be increased. Whereas sales department helps
in increasing demand, by this way production unit get to know about needs of consumers and
employees can produce products accordingly.
4.production and purchase-
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The production can only be implemented when timely purchase of raw material can be
done. The timely and effective availability of raw materials will lead to the initiation of
production processes production process is being performed by optimum utilisation of all
resources. it is basically the integration of human, technological and other resources which
combined by human resource of the company.
LO3
P4 Positive and negative impact of macro factors on business operations
Incorporated in power point presentation
LO4
P5 internal and external analysis to find strength and weakness of organisation
Incorporated in power point presentation
P6 Effects of macro factors on internal analysis
Incorporated in power point presentation
CONCLUSION
In the above study, we have studied about the purpose and legal structure of the public,
private, voluntary and small, medium enterprises. Also, we have identified the external macro
factors relation with internal factors of organisation and their effects on business of Sainsbury's
All they three sector organisations work under their different legal structures which will help
them to achieve their objective if they work and perform their activities under legal guidance.
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REFERENCES
Books and Journals
Bouckaert, G., Peters, B.G. and Verhoest, K., 2016.Coordination of public sector organizations.
Basingstoke, UK: Palgrave Macmillan.
Fallon, B.J. and Rice, S.M., 2015. Investment in staff development within an emergency services
organisation: Comparing future intention of volunteers and paid employees.The
International Journal of Human Resource Management. 26(4). pp.485-500.
Fozer, D and et.al., 2017. Life cycle, PESTLE and multi-criteria decision analysis of CCS
process alternatives. Journal of cleaner production. 147. pp.75-85.
Ho, J.K.K., 2014. Formulation of a systemic PEST analysis for strategic
analysis. European academic research.2(5). pp.6478-6492.
Kolios, A. and Read, G., 2013. A political, economic, social, technology, legal and
environmental (PESTLE) approach for risk identification of the tidal industry in the United
Kingdom. Energies. 6(10). pp.5023-5045.
Mellor, H.W., 2018. The role of voluntary organisations in social welfare. Routledge.
Syam, A. and et.al., 2017. Unit-2 Organisation and Structure of Public Relations Departments-
Government and Private.
Wollmann, H., 2016. Provision of Public and Social Services in European Countries: From
Public Sector to Marketization and Reverse—or, What Next?. In Local public sector
reforms in times of crisis (pp. 187-204). Palgrave Macmillan, London.
Wye, L. and et.al., 2015. What do external consultants from private and not-for-profit companies
offer healthcare commissioners? A qualitative study of knowledge exchange. BMJ
open.5(2). p.e006558.
Online
Sainsbury's SWOT Analysis, Competitors & USP. 2019 [Online]Available
through:<https://www.mbaskool.com/brandguide/lifestyle-and-retail/2042-
sainsburys.html>.
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