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

Business and Business
Environment

Contents
INTRODUCTION.....................................................................................................................................3
PART 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 organisations....................................6
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure............................................................................................8
PART 2.................................................................................................................................................11
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples....................................................................................11
P5 Conduct internal and external analysis of specific organisations in order to identify strengths
and weaknesses...............................................................................................................................13
P6 Explain how strengths and weaknesses interrelate with external macro factors.......................14
CONCLUSION.......................................................................................................................................15

INTRODUCTION
The business is considered to be an activity with the help of which the business aims
to earn profits. The businesses are classified into different types on the basis of the motive of
operating(Talamini, 2013). For this they have to analyse the business environment
irrespective of the nature of business as they have direct influence of internal and external
factors of the business. This enables them to identify various opportunities and threats that
the businesses can grab and reduce the impact through their strengths of the organisation. In
this report different types of organisation are taken into consideration with their structure,
size, scope, purpose etc. In addition to this their structure are also discuss that facilitate to
understand different functions which are performed by the organisation. Along with the
internal and external analysis is also undertaken for the company so that they can accomplish
their business objectives by minimising the impact of various micro and macro factors.
PART 1
P1 Explain different types and purposes of organisations; public, private and voluntary
sectors and legal structures
Success of an organisation depends on the competences and experience by target
market (Janita and Miranda, 2013). There are different type of organisations which are
classified on the basis of their purpose, nature and objectives. Majorly the type of
organisations is Public, Private and voluntary that established to render quality services their
service users. An analysis and detailed description of these organisations are determined
below:
Private sector organisation
Private sector organisation plays a most important part in a country’s economy
system. These kind of organisations are run by companies and individuals with a clear
intention of making desired profit. A perfect example of private sector organisation is Marks
and Spencer which is British multinational retailer that selling clothing, food products and
home product to its direct customers. This organisation was founded by Michael Marks and
Thomas Spencer in the year of 1884.
Different type of private sector organisation

Joint venture: Joint venture is known as a business agreement between two or more
parties that agree to pool their resources for a specific purpose or to accomplish a task.
Sole Proprietorship: This is one of the simplest business form in which an individual
can operate a business who is not a legal entity. In sole proprietorship the person who own a
business is personally responsible for all its debts. For example, Ma baker which is award
winning sole trade business in UK.
Partnership: This is a formal business form between two or more parties who agreed
to manage and operate a business as well as to share its profit mutually.
Features: One major feature of private sector organisation is its management which is
by individual or 2group of individuals without any involvement of government.
Goal: Goal of Marks and Spencer is to make an inspirational quality accessible
organisation for others. It incorporates quality based products and services for the customers.
Purpose of Private sector organisation: One major purpose of private sector
organisation is to earn profit and become a leading organisation in the target market. As the
purpose of M&S is to serve a quality of products and services to its customers in order to gain
desired profit and business sustainability.
Objectives: Objective of Marks and Spencer is to set a standard and benchmark for
other on the basis of organisation quality products and services. It contains core values as
quality, service, innovation and trust.
Legal feature: M&S follows the legal structure of a public limited company and it is
listed on the London Stock Exchange. It is a limited liability company whose shares may be
sold and traded to the public.
Public sector organisation
Public sector organisations are known as those firms which are owned by government
in order to provide goods and services for the benefit of communities (Laudon and Traver,
2016). For example, NHS is a public sector organisation of UK which provides healthcare
services to all the citizen on the basis of their healthcare need rather than analysing their
ability to pay for it.
Different type of Public sector organisation