Types and Purposes of Organisations

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures......................................................................................................................4
P2 Explain the size and scope of a range of different types of organisations.............................6
TASK 2............................................................................................................................................8
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.......................................................................................8
TASK 3..........................................................................................................................................10
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples..............................................................................10
TASK 4..........................................................................................................................................11
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses..........................................................................................................11
P6 Explain how strengths and weaknesses interrelate with external macro factors.................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business Environment is characterised as the surroundings in which a company operates
its functions and operations. It includes various intrinsic and extrinsic components that influence
the working of overall organisation (Anolfatto and MacDonald, 2019). There are three different
types of sectors including public, private and voluntary under which firms operate. This report is
based on Tesco which is a multinational company of Britain that offers groceries and other retail
products to customers. The firm was established in year 1919 and its headquarter is located in
Welwyn Garden City, Hertfordshire, United Kingdom. This assignment covers diverse types and
purposes of organisations along with their size, scope and legal structures. Moreover, it defines
relationship between different functions of entity and their link with its structure and objectives.
Apart from this, positive and adverse impact of macro environment upon business operations
and SWOT analysis of company is included. At last, the report demonstrates interrelation
between strengths and weaknesses and external macro factors.
TASK 1
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures
There are different types of organisations and each one has its own purpose and legal
structure that leads it towards success. The primary aim of each company is to satisfy needs and
requirements of customers and earn high revenues in market. Below mentioned are different
types of sectors:
Public sector organisation: These includes the organisation that are completely owned
and run by government. Primary aim of public sector companies is not only to earn maximum
revenues, but it also emphasize on satisfying needs and wants of customers (Argyris, 2017). An
example of public sector organisation is NHS which is a government owned public organisation.
Purpose:
 To earn adequate amount of profits by satisfying needs and requirements of customers
and public welfare.
Types of legal structure:
Central government: This government handles all the affairs of state and local authorities
and gather funds in the form of tax raised from public.

State government: It handles all the issues and affairs of a particular state and have some
powers that are applicable in certain areas (Birru and et. al., 2019).
Local government: It have the power to manage affairs of local areas only including
towns, cities etc. and gather funds in the form of council tax.
Private sector organisation: It includes the companies whose functions are owned and
operate by private individuals or entity. The main motive of private sector organisations is to
earn maximum revenues and capture large number of shares in market. An example of private
sector organisation is Tesco which is a general merchandise retailer of England, United
Kingdom.
Purpose:
 To earn maximum revenues and capture large number of market shares by offering
innovative products to customers.
Types of legal structure:
Partnership: It is a legal structure in which organisation is formed by the partnership of
two or more people. A partnership deed is signed between both the partners with their mutual
agreement. All the profits and losses are equally divided among all partners.
Sole proprietorship: In this legal structure, the entire business is own and run by single
individual only and is solely responsible for all profits and losses of company. A license from
local government is required to run sole proprietorship business.
Limited company: It is the organisation which is registered under Companies Act and its
owners are legally accountable for the debts or liability only to the extent of their stake in
company or the capital they invested in the company.
Voluntary sector organisation: It includes those firms which are run by group of
volunteers who are willing to work for welfare of society (Bocken, Rana and Short, 2015). These
organisation operates only for the purpose of improving life of people who lived in society and
enhance their living standard. An example of voluntary sector firm includes Oxfam which
operates for the purpose of reducing poverty from nation and all over the world.
Purpose:
 To work for welfare of society and improve living standard of people by fulfilling their
basic needs required for survival.
Types of legal structure: