Types and Purposes of Public, Private, and Voluntary Organizations

Business and The
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Different types and purposes of public, private and voluntary organisation..........................3
P2 Size and scope of a range of different types of organisation..................................................6
LO2..................................................................................................................................................9
P3 Relationship between different organisational functions and how they link with
organisational objective and structure.........................................................................................9
LO3................................................................................................................................................11
P4 Positive and negative impact that macro environment has upon business organisation......11
LO4................................................................................................................................................13
P5 Internal analysis of TESCO (SWOT analysis).....................................................................13
P6 Explain the strength and weakness interrelation with external macro factors.....................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
As defined by Keith Davis “Business environment is the aggregate of all conditions,
events and influences that surround and affect it”. This involves every condition and element in
business environment. Business organisation is of two types that is external business
environment and internal environment. External environment consist of factors outside business
organisation and internal environment refers to factors within business organisation. This report
will discuss about different types and purposes of public, private and voluntary organisation.
Later, size and scope of a range of different types of organisations and relationship between
different organisational functions and their link with organisation objectives and structure will be
discussed in report. Later, positive and negative impacts of macro business environment on
business will be discussed. Later report will also discuss about internal and external analysis of
Tesco and interrelation of strengths and weaknesses with external macro factors will be
discussed. Tesco is a British multinational groceries and general merchandise retailer, it was
founded in 1919 and is headquartered at Hertfordshire, England. Tesco operates at around 6800
locations in 10 countries. This report will also involve certain other organisation along with NHS
in public organisation and British Red Cross in a voluntary organisation and wll discuss about
legal structure of these organisations.
LO1
P1 Different types and purposes of public, private and voluntary organisation
There are different types of organisations that are public, private and voluntary
organisation. Different types and purposes of these organsiations are as follows-
Public organisations
Public organisations are those that are owned and operated by the government. These
organisations are operated for the purpose of providing services to society and people of
community. Organisations that are owned by local, state or national government and such
organisational are financed by sources of taxes and products and output of these is provided for
community and societal benefits.

Concerned with legal structure of public organisation, such organisations are owned and
operated by government (Canel and Luoma-aho, 2018). This means that ownership of such
organisations is either held by state government or national government, in order to maintain
their ownership, 51% or more shares are owned by government. NHS is an example of this type
of organisations. NHS is a publicly funded healthcare systems of UK this means that this is
funded out of general taxation.
Private organisations
Private organisations are those that are owned and operated by private people and these
organisations mainly operate with a purpose to generate and increase profit through business
activities. On the basis of their size and nature, these organisations might be operated by more
than one individual. Funding of these organisations is also done by private and then they share
profit earned by such organisation. On the basis of legal structure, different organisations are as
follows-
Sole Proprietorship
This organisation is owned and operated by one person and in terms of size, these
organisations are often micro and small organisations. Risk and profit generated by these
organisations solely owned by the owner of the business.
Partnership business
Partnership businesses are those organisations that are owned and operated by two or
more people and activities of business are influenced by partners of the business (Khan and
Khandaker, 2016).
Transnational organisational
Transnational organisations are those that operate in multiple countries with foreign
direct investment and such organisation has office in each country and adopts a decentralised
approach.
Global organisations