Types and Purposes of Organizations: Tesco, NHS, OXFAM

Business and The
Business Environment

Contents
INTRODUCTION.....................................................................................................................................3
LO 1............................................................................................................................................................3
P1 Different types and purposes of organizations; public, private and voluntary sectors and legal
structures.................................................................................................................................................3
P2 Explain the size and scope of arrange of different types organizations...............................................5
LO 2............................................................................................................................................................6
P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure....................................................................................................6
LO 3............................................................................................................................................................7
P4 Identify the positive and negative impacts the macroenvironment has upon business operations,
supported by specific examples...............................................................................................................7
LO 4............................................................................................................................................................9
P5 Conduct internal and external analysis of specific organizations in order to identify strengths and
weaknesses..............................................................................................................................................9
P6 Explain how strengths and weaknesses interrelate with external macro factors.................................9
CONCLUSION........................................................................................................................................10
REFERENCES........................................................................................................................................11

INTRODUCTION
Business environment can be defined as the collection of various internal as well as external
factors that can the overall performance of an organization. These factors can include employees,
customers and their needs, innovation and technology, demand as well as supply (Charter, 2017). It is
important for any business to be aware of the changes that occur in its business environment as this can
help in developing effective strategies and gaining a competitive advantage against competitors.
Organization chosen for this report is Tesco, which is a British multinational retailer of groceries as well
as general merchandise. The company was founded by Jack Cohen and is headquartered in Welwyn
Garden City, United Kingdom. The report includes an explanation of different types of organizations,
their size as well as scope. Apart from this, there is also an explanation about the relationship between
different organizational functions and how do they link to the objectives and structure of the organization.
The report also identifies positive and negative impacts that macro environment can have upon the
business operations along with specific examples.
LO 1
P1 Different types and purposes of organizations; public, private and voluntary sectors and legal
structures
Organizations can be grouped into three categories based on their level of operations, namely
private, public and voluntary organizations. The three types of organizations are explained below along
with their purpose as well as legal structures.
Private Organization: TESCO
Background of the company – A private organization can be referred to any organization that is
not operated by a public body and the main aim of a private organization is to generate profits. Tesco is
one of the leading private organizations based in the United Kingdom (Crane and et.al., 2019). The
company was founded by Jack Cohen and is a private retail company that operates across different
geographic locations across the world. Tesco sells a wide variety of products ranging from groceries to
general merchandise.
Purpose – Tesco is a retail company that offers a wide range of products to its customers at
affordable rates. The core purpose of the business is to be one stop for the customers by assisting them to
enjoy a better quality of life. Besides this, the company also aims to attain the loyalty as well as trust of its
customers so as to sustain in the market for a longer period of time. Customers today want high quality

products at low prices. Therefore, it is important for the company to offer products keeping in mind the
preferences and needs of the customers.
Objective – The main objective of Tesco is to offer the customers with the best quality of
products in order to gain their loyalty and trust. The products will fulfil the needs and preferences of the
customers.
Legal Structure – The legal structure of Tesco is a flat hierarchical structure and the company
has chosen this structure so as to increase its overall competitiveness in the market areas of its operation
(Davies and Rašković, 2017). This way, the company ahs been able to ensure high performance.
Stakeholders – An organization can have various stakeholders who possess different levels of
interest as well as power in its activities. The different stakeholders of the respective company include
customers, board of directors, employees, managers etc.
Products and Services – Tesco sells products in across different product lines like grocery
products, clothing, furniture, electronics and non-food products.
Public Organization: NHS
Background of the company – A public organization is the one which is owned by the
government but it also outsources some of its services to private companies. The National Health Service
or NHS is a public organization operating in the United Kingdom. The company was established in the
year 1948 and offers services across different geographical regions of the UK.
Purpose – The main purpose of the National Health Service or NHS is to provide appropriate
health care services to the different communities in the nation, so that they are able to live their life
effectively. All of the healthcare services are provided at affordable rates.
Objective – The primary objective of the National Health Service is to offer the best possible
healthcare services to the people at affordable rates.
Legal Structure – The NHS has a highly legal structure and this is because it operates at an
international level (De Vries and et.al., 2017). Therefore, it is important for it to adopt the various policies
and procedures that are set by the government. It is important for the company to adopt and implement
the same in order to ensure informed decision making.
Stakeholders – The different stakeholders of National Health Service include people are related
with the healthcare system either directly or indirectly. Customers, healthcare professionals and the
government are some of the stakeholders of NHS.