Relationship between Organisational Functions and Objectives

Business and
Business
Environment

Contents
INTRODUCTION...............................................................................................................................3
MAIN BODY.......................................................................................................................................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 organisations.....................................5
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure..............................................................................................7
P4 Identify the positive and negative impacts the macro environment has upon business operations,
supported by specific examples.........................................................................................................8
P5 Conduct internal and external analysis of specific organisations in order to identify strengths and
weaknesses......................................................................................................................................10
P6 Explain how strengths and weaknesses interrelate with external macro factors.........................12
CONCLUSION..................................................................................................................................13
REFERENCES..................................................................................................................................14

INTRODUCTION
Business environment is basically determine as a sum of all the internal and external
factor that has direct and indirect impact upon business decision making (Avramenko, 2012).
These kind of factors and forces affect a firm’s ability to create and maintain a successful
customer relationship. Both internal and external factors have different impact upon business
activities as impact of internal factors are controllable whereas external factors are beyond
the control. This report is based on Tesco which is British multinational general merchandise
and grocery supermarket founded in the year of 1919 by Jack Cohen. This organisation
provide quality products and services in at worldwide by operating in different subsidiaries as
Tesco stores, Tesco Bank, Tesco mobiles, Tesco family dining ltd. and so on. This report is
going to determine purpose, scope, size and legal structure of public, private and voluntary
sectors organisation. Further it will also determine interrelationship between different
organisational departments of an organisation as well as impact of internal and external
factors upon business operational activities. At last, it will define how macro factors can be
consider as strength and weakness for a firm.
MAIN BODY
P1 Explain different types and purposes of organisations; public, private and voluntary
sectors and legal structures.
In an economy, different type of organisations operate that are classify separately on
the basis of their business nature, purpose and business objectives (Ballard and et. al., 2012.).
As per the given scenario of this assignment, organisations are classified in three different
sector as Public, Private and Voluntary for which organisations are selected as NHS, Tesco
and Oxfam. A detailed information of these organisations are determined below as:
Private sector organisation
Private sector organisations are known as an essential part of economy of a country.
These kind of organisations are run by individuals, companies and group of individuals. Main
objective of such organisations is to make money and gain sustainability to run their business
for a long term duration. For example, Tesco is a private sector organisation which provide
several services at worldwide. This organisation was founded by Jack Cohen in the year of
1919 with a store but now this organisation produce own products and services.
Different type of private sector organisation:

 Joint venture: Joint stock companies are those in which financial resources are
limited but it leads to heavy risk burden. In these kind of ventures capital can be
raised through the sale of different value shares.
 Sole Proprietorship: When a business is managed by an individual, it is called sole
proprietorship in which its owner shares all costs and benefits by itself (Belás and et.
al., 2015). It is the easiest and oldest way of doing business. In this business, there is
minimal restriction in terms of easy develop to dissolve.
 Partnership: When two or more individual works together with an aim to earn
desired profit and growth is called partnership. These kind of firms are formed by
signing partnership agreements that contains profit sharing, authorised member
details, capital progression and so on.
Goal: The goal of Tesco is to be the leader of market by serving quality products and services
to customers in easier way.
Purpose of Private sector organisation
One major area in which public and private companies are overlap is determine a
desire of profit maximisation. In these companies, profits are restricted to the company’s core
owner who can be just one person or a group of individual who invested in the company with
a motive to earn maximum profit. As one major purpose of Tesco is to become a market king
by serving quality products and services to their target customers.
Public sector organisation
Public sector organizations are known as entities formed to manage the policy and
procedure as well as operating requirements that allow a government to achieve its public
governance goals (Bharadwaj and et. al., 2013). For example NHS is a public sector
organisation which was founded at Wales, Scotland, Northern Ireland and England in the
year of 1948. The organisation basically provide healthcare services to the patient by
following rule and policy of government.
Different type of Public sector organisation
 Public or statutory corporation: Statutory Corporation is a corporate body which is
formed by special parliamentary act or central legislations. This kind of firm is
entirely funded by government. The legislative act decides objects, limitation and
power of these division.