Business Environment: Purpose, Structure, and Scope of Private, Voluntary, and Public Organizations

This document provides an overview of the business environment, focusing on the purpose, legal structure, and scope of private, voluntary, and public organizations. It explores the interrelationship between different functions and how they contribute to achieving business objectives. The document also discusses the size and scope of selected organizations, such as Coca Cola, Oxfam, and the National Health Service, and their respective roles in the business environment.

Business and Business
Environment

EXECUTIVE SUMMARY
Business environment is defined as collection of factors such as internal as well as
external which include clients, supplier, government, owner and many more. There are three
types of environment. Firstly, internal environment which help to communicate and used to
deliver offerings in market. Secondly, micro environment which affect organisation to serve
customers. Lastly, macro environment means large forces that affect working environment of
company. These all factors directly or indirectly affect functions, activities and performance of
organisation. The feature of business environment is complex and dynamic which indicates that
there are changes in company that impact and they have to adopt those changes quickly.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
P1 Determine the purpose and legal structure of private, voluntary and public organisation4
P2 Assess the size and scope of private, voluntary and public organisation..........................6
P3 Explain the relationship between the function and how they are link with business
objectives and structure .........................................................................................................7
CONCLUSION ......................................................................................................................9

INTRODUCTION
Business environment have direct impact on organisation either positively or negatively.
Different type of organisation influence work environment such as private, public and voluntary.
In this report, private organisation is taken as Coca Cola as it provide non-alcoholic beverages in
many countries and headquartered in United States. There main objectives is to earn profit by
providing best quality to customers. On the other hand, voluntary organisation is Oxfam is taken
as base company it is an NGO which have one motive to reduce poverty, face discrimination
among people, gender and so on. Moreover, national health service is taken as public
organisation in this project and their objective is give free health services. This report includes
size, purpose, scope and legal structure of private, public and voluntary organisation. There are
some of relationship between the organisational functions that they link with other department to
achieve organisational objectives.
MAIN BODY
P1 Determine the purpose and legal structure of private, voluntary and public organisation
 Public organisation: Public organisation is owned and controlled by government. The
main aim of this type of organisation is to maintain welfare and development of society
which is done by giving services to public or society as a whole They do not make profit
while providing services to citizen rather they work for welfare of society. There are
various public organisation such as public transportation, postal and police services,
institutions and many more (Beatty, Samuelson and Abril, 2018). National Health
services is a public organisation which is selected for this report. The objective of
selected company is provide free services for health of people and established in 1948.
Purpose: The purpose of National Health services is to give better treatment facilities to
patients who are resident in that country. They provide services that increase potential of each
patient and live their quality life.
Legal structure: The legal structure of the chosen company, manager and employees of
National Health service adopt all laws define by both central and state government to operate
services effectively and efficiently.
 Voluntary organisation: This is defined as non for profit organisation where individual
and team with group of people make an agreement to form an organisation to achieve the

common objective. Voluntary organisation include environmental groups, charitable
trust, social welfare organisation (Berghoff and Rome, 2017). Oxfam is an international
NGO and established in 1942 and include 20 independent charitable trust. Oxfam
headquarter is located at Nairobi, Kenya but founded at England.
Purpose: The purpose of Oxfam is reduce poverty and live quality of life to maintain
status in society. They develop various programmes such as saving for change and many other
which help selected organisation to make people financially sufficient. This work include health,
gender equality, human rights and so on.
Legal structure: Rules, laws and regulation are made by higher authority which are
known as trustee of organisation. This help voluntary organisation to maintain cordial
relationship with employees so they work for welfare of society.
 Private organisation: Private organisation is owned by individual, partners and
corporation. These type of organisation have common aim that is to generate revenue by
selling goods or services in market (Cherunilam, 2020). Coca Cola is a private
organisation or corporation and country of origin is in United States and introduced in the
year 1886. It is largest manufacturer and marketer of non- alcoholic and have licence for
more than 500 non-alcoholic brands and sell in more than 200 countries. They owned
their own products and market by four products which include Diet coke, Fanta and
Sprite. It manufactures various finished products such as juice drinks, water products then
they sell products to retailer, wholesaler and distributor and also with bottling partners.
Purpose: Main purpose of Coca Cola is to attract customers to buy beverages from
market and generate profit. They also have to increase sales and maintain their market position
and gain competitive advantage. The objective of coca cola are known to be in every country
worldwide and take responsibility to produce best quality non-alcoholic beverages with canned
products. It also ensure that to sustain growth in market.
Legal structure: In context to selected organisation, the decision and rules are made by
higher authorities such as CEO, Board of directors. After taking decision and develop strategies
they communicate to all employees in organisation and they also assign roles and responsibilities
of all staff members (Liu et. al., 2017).
P2 Assess the size and scope of private, voluntary and public organisation
Public organisation: National Health Service

Size and Scope: National health service are providing services in 7 countries and have
employed 18000 candidates which are recently working in organisation. Moreover, they are
expanding their services in other organisation and employing more employees to increase sales
and revenue in selected organisation. According to the last year recent report they have earned
$540 billion. The vision and mission of national health service to improve health condition and
give services to patients. They have stated that they are planning to select and recruit candidates
related to medical professionals till year 2030 from 7,000 to 14,000. National health service main
principle is to provide free service at point of delivery and help only those people who do not
have ability to pay. In England, they operate differently from other countries because ther
patients have to pay prescription charges (Lyu and Hwang, 2017).
Voluntary organisation: Oxfam
Size and Scope: Oxfam deals with people who are reducing inequality in society by
removing poverty and injustice among different type of people in society. They work on various
various rights such as human rights. Justice, gender equality, health and many other rights which
are provided to citizen. In simple words, there main aim is to work for the welfare of society and
people. They are partners with other 20 charitable trust and is developing strategies to connect
with other trust in countries. The authorities of Oxfam deals with local and other countries to
reduce the discrimination and gender inequality. The vision and mission of chosen organisation
is to make word from poverty. The mission and value of adopted aims to express such as the
right to be heard, life and security, social services and other. They believe that these have make
changes positively to the live of all people and have basic rights with human.
Private organisation: Coca Cola
Size and Scope: Coca Cola is one of the largest owner and marketer in non-alcoholic
beverages in market (Mawejje and Sebudde, 2019). They are also distributor and manufacturer
of syrups and produce variety of beverages such as juices and drinks, water, sports and energy
drinks etc. however, they sold these products in more than 200 countries and was introduced
since 1886 in United States. Scope of Coca Cola is they have large number of customers and
they use technologies to advertise the products to attract customers to purchase canned products
in markets. In this industry there are many competitors such as red bull, Pepsi co etc. Therefore,

every day serve or customer consume 54 billion beverages whereas there beverages have
trademark and have licence of Coca Cola of account for 1.6 billion approximately.
P3 Explain the relationship between the function and how they are link with business objectives
and structure
There are various departments in organisation which operate roles according to that and
perform different activities in properly manner. There are various function to achieve
organisation goals and objectives like marketing, finance, sales, IT, customer service and many
more. Every organisation is linked size, scope and structure with their goods or services.
Organisational structure is defined as the structure where they develop various plan and
strategies to set goals and target in each department so they can perform work as per the set
standard (Dima, Dima and Mahagaonkar, 2018). Not only companies set objective rather they
delegate roles and responsibilities of each staff members so they have clear understanding
regarding what they have to perform.
In context to Coca Cola, higher authority plan strategies and executive conduct meeting.
They are structure in decentralised way because they identify need and requirement of customer
in different geographical areas. In this way Coca Cola can achieve goals and accomplish goals
and objectives of organisation. In the above paragraph, it is discussed about how different
departments of Coca Cola are linked with each other which are as follows: Sales and Marketing department: The both sales and marketing department plays an
crucial role in organisation to sell their product in large quantity and this can only be
done by encouraging customers and employees to produce best quality products. The
marketing department of Coca Cola promote products like beverages, energy drink and
so on by advertising and developing strategies to plan for campaigns which attract them
to purchase the new launched or existing product in market (Kwilinski and et. al., 2019).
Moreover, sales department of selected organisation produce and sell product to
customers and then take feedback regarding how they like product and take suggestion
to improve more. This help marketing department to make various plan for products in
order to gain competitive advantage and can increase sales and profitability ratio for
organisation. The interrelation between the sales and marketing department help

company to accomplish objectives of organisation so they can complete work on
particular time (Hillary, 2017). Human Resource and IT department: This human resource is main department of
organisation as they select and recruit talented candidates for company (Kuzieva, 2017).
This type of department give training and development sessions to new or existing
employees. They also conduct session when Coca Cola have modify or introduce
product, this enhance skills and productivity level of employees. This help organisation
to motivate employees so they can put efforts to produce high quality beverages in
market. On the other hand, IT department of Coca Cola manage all activities related to
software and they provide various facilities to Human resource department such as new
or updated software so they can maintain proper records of employees performance. In
this way they also select and recruit only those employees for IT department that have
skills and capabilities or have background in IT sector. This interrelationship help Coca
Cola to increase profit and productivity of department. Marketing and finance department: The marketing department of selected company
promotes various activities that help to increase sales (Holmqvist and Ruiz, 2017).
They identify and research to target customer or audience to purchase goods like energy
drinks, canned products and many more. They focus where they have to conduct
campaigns so they can retain interest of customer and attract them. By doing they focus
on that there is availability of funds available and this is to ensured by finance
department of organisation. However, they have to focus on maintaining there financial
statement clear and fair which help them to check and amylase the funds to invest in
marketing, advertise or campaign.

CONCLUSION
From the above discussion, it is concluded that business environment is very important
for every type of organisation either small or large. It is understood that there are different
organisation such as private, public and voluntary organisation and have different purpose and
legal structure. Public sector decision are taken by central and state government, private sector
taken by single owner, corporation and partners in organisation. Each department of company is
interlinked with other department to achieve organisational goals smoothly and efficient manner.
Moreover, marketing department is linked with sales department as they advertise and with help
of this they earn high revenue by selling products. Human resource department is linked with IT
department in two ways as first is they recruit most talented employees for IT department and
other department for accomplishing target successfully and IT department help HR as they
provide updated software to maintain record the performance of employees. Furthermore,
marketing and finance department also interrelate with each other as finance department provide
funds to market their products and they also ensure and maintain available funds in company.

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