Types and Purposes of Organisations in Business Environment

Business and the business
environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
P1 Different types and purposes of organisations; public, private and voluntary sectors and
legal structure...............................................................................................................................3
P2 Size and scope of a range of different types of organisations................................................4
L3 Relationship between different organisational functions and their link to organisational
objectives and structure...............................................................................................................6
P4 Positive and negative impacts macro environment have upon business operations..............8
P5 Internal and external analysis of the organisation in order to identify strengths and
weaknesses...................................................................................................................................9
P6 Strengths and weaknesses interrelate with external macro factors......................................11
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment means the surrounding of the business and also include both internal
and external factor which affects the business. Employees, government, customers, laws etc are
some of the e.g. which affects business decisions. Tesco is a multinational company based in
UK. It was founded in 1919 by James Cohen. It is the largest retailer worldwide. Apart from
grocery it has diversified its business into clothing, telecoms, financial services, home items,
furnitures etc. This report will discuss about types and purposes of public, private and voluntary
sectors with legal structures and also the size and scope of different types of organisations.
Further it will evaluate the relationship between different organisational functions and their link
to organisational objectives and structure. It will identify positive and negative impact macro
environment is having on business operations. This study will also conduct internal and external
analysis of organisations in order to identify strengths and weaknesses and how strengths and
weaknesses interrelate with external macro factors.
MAIN BODY
P1 Different types and purposes of organisations; public, private and voluntary sectors and legal
structure.
Private Sector company: The private sector company is owned and managed by private
individuals with the objective to earn profit. These companies are not controlled by the
government. Private sector plays important role in the development of the country. It gives job
opportunities to the citizens and also contribute in the national income. Private sector can
sometimes even do joint venture with public companies.
Private sector are those entities which are not controlled by the government. Private sector
include profit making companies and non-profit making companies which are not owned by the
government. It also means all the other sectors except public sector (Čepel and et.al., 2018).
E.g.- Tesco is the private company of UK. It is a multinational retail chain. Tesco’s business
includes clothing, furniture, telecoms, electronics, financial services etc. They also have
Clubcard facility to provide discounts and coupons to their customers. Their objective is to

provide low price products to the customers as compare to their competitors without
compromising on the quality. Company come up with innovative product to increase its market
share.
Public sector company: Public sector companies are those companies which are owned and
managed by the government of the country. They give jobs to their citizens and work for the
development of the country. They provide services which is benefit for the society and use the
resources in the best possible way. They work for their people, profit is never their main
objective (Gaganis, Pasiouras and Voulgari, 2019).
Private sector company is the company which is controlled by the government. The company in
which more than 50% shares are owned by the government or any agency under the government
power. Company in which all the undertakings remain with the government.
E.g.- BBC (British Broadcasting Corporation) is the UK based government company. It is a
news channel which broadcast current news. It is the biggest and famous new organisation
worldwide. It also provides online news facility. BBC is not under the influence of any political
party and telecast shows which is benefited for their viewers and listeners. Company works on
creativity and have best British writers. Their content is easy and reliable.
Voluntary sector company: Voluntary sector which is also called non-profit organisation whose
main purpose is to serve the society rather to earn profit. These companies are different from
public and private sectors. In voluntary sector they believe in charities and also include
cooperatives, community interest groups and small informal groups.
Voluntary organisation is an organisation which runs with the help of volunteers and which
provide services to individuals or groups. They also help disabled people.
E.g.: British red cross is the UK based voluntary company which do charity (Belás and et.al.,
2019). They help people in the time of crisis, not only in UK but worldwide. Company help
people without any benefit, discrimination, origin, religion, political interests etc. Their
volunteers and staff work with unity and humanity. Compassionate, inclusive, dynamic and
courage are the values of red cross. Company provide health and social care to the people by
providing medicines, helping them to hospitalised etc.
P2 Size and scope of a range of different types of organisations
TABLE I