Differences between Non-Profit, Profit, and Non-Government Organizations

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
ACTIVITY 1....................................................................................................................................3
Differences between non-profit, profit and non government organizations................................3
Differences between small, micro and medium sized enterprises...............................................4
Legal structures associated with different forms of companies...................................................5
Legal structure, scope and size of different firms link to objectives and products of business...6
Critical analysis of interrelationship of varied organizational functions and then its connection
to organizational structure and objectives....................................................................................8
ACTIVITY 2....................................................................................................................................8
Macro environmental analysis through PESTLE framework......................................................8
Micro environment analysis by using Porter's five forces model..............................................10
Value chain analysis and VRIO model used to identify organization's internal weaknesses and
strength-350...............................................................................................................................11
SWOT analysis of Morrison......................................................................................................13
Justification of weaknesses and strengthen interrelated with micro and macro factors............14
CONCLUSION..............................................................................................................................14
REFERENCES .............................................................................................................................15

INTRODUCTION
Business environment is collection of varied factors some are external and some are
internal such as supply & demand, consumers, staff members, stakeholders and government, that
impact on business practices as well as performances.
The current report is based on Morrisons and also define some information about Virgin
group and Oxfam. It explains the differences between non-profit, NGO and profit companies, the
purpose of varied firms and differences between small, micro and medium sizes enterprises.
Furthermore, this assessment justify the interrelationship of several organizational functions and
their connection to organizational structure & objectives. This study clarifies macro & micro
environment analysis, Porter's five forces model and VRIO model to identify the strength and
weakness of firm. Moreover, this report define how strength & weakness interrelated with
external factors as well as influence on strategic business decision-making.
ACTIVITY 1
Differences between non-profit, profit and non government organizations
Public organizations-
Public sector is usually comprised of companies that are operated and managed by the
government, they are able to provide better services and quality products to its consumers which
is the centre focus of public sector firms more than then earning profit. Under this sector non-
profit and profit making organizations work and operate their business effectively. Entrepreneurs
pay taxes to the authorities and this money is used to finance most of the public sectors. The
purpose of public sector firms is to cater important public services and use available resources
effectively for benefits of society (Misuraca and Viscusi, 2015). For example, Morrison is one of
the biggest supermarkets chain in UK, they operate its business all around the world and provide
better quality items to local people. The aim of this company is to give people a one stop shop
and provide them more of what they exactly want on shopping period. Morrison recognized as
non profit company considered by IRS.
Private firms-
It is different type of sector, in which organizations are run and owned by private
individuals (Daunfeldt, Johansson and Halvarsson, 2015). Franchises, sole traders and
partnerships are the examples of private sector businesses. The purpose of this sector firms is to
make profit, increase their marketing share, operational efficiencies and maximize sales year by

year. It is composed of economic aspect that are intended to earn profit for owners of
companies. In simple words, private sector organization are businesses which are not run and
owned by national authorities. For example, Virgin group Ltd, is one of the leading investment
firm along with international identify and appealing brand image within market place (Garcia-
Bernardo and et.al., 2017). The aim of this organization is quite different from public sector
companies, its purpose is to change business for good that in return provide profit and put long
term positive impact on productivity.
Voluntary firms-
Voluntary sector play vital role in society, organizations under this sector are accountable
for well-being. It is the duty of social activities undertaken by firms that are non-government and
non-profit enterprises (Alfraih and Almutawa, 2017). This sector is also known as community
and third sector, in contrast to public & private sector. On the other hand, some firms will be
accountable for assuring that it set budgets and does what it is set up to do. In certain cases they
attempt to help specific type of people like Blind. The only purpose of this sector firms is to
enrich and benefit society and help local people. For example, Oxfam work under voluntary
sector, they tackle poverty wherever they find it, include in UK as one of the richest and well-
developed nations in the world. NHOs finance their activities with the help of charity
programmes which make them able to receive money and utilize for society well fare.
Differences between small, micro and medium sized enterprises
Micro sized organizations Small sized firms Medium sized enterprises
 Micro Sized enterprises
are businesses with
assets valued and
annual sales at less
than 2 Million each
year and with less than
5 workers including
owner (Petersen,
Bruwer and Le Roux,
2018).
 Their commitment and
 On the other note,
small sized businesses
work with 1 to 100
workers, that is more
than Micro firms.
 These types of
enterprises is able to
invest in future
business growth but not
too much.
 They earn more than
 The attribute used most
often is number of
workers, small business
defined as firms with
fewer than 100 people
on the other hand
medium sized
enterprise are those
companies with 100 to
999 staff members.
 Medium sized firms are