Types and Purposes of Organizations and Their Legal Structure

Business and Business
Environment

Introduction......................................................................................................................................3
LO1..................................................................................................................................................3
P1. Explaining several types and the purposes of an organizations along with their legal
structure .......................................................................................................................................3
P2. Describing size and the scope of different range of an enterprise ........................................4
LO2..................................................................................................................................................6
P3. Describing relationship between different types of organizational functions ......................6
LO3..................................................................................................................................................6
P4. Determining negative & the positive effect of macro environmental factor on firm............6
LO4. ................................................................................................................................................8
P5. Conducting an internal or external analysis for identifying the weaknesses and strengths ..8
P6. Explaining interrelationship of external factor with that of strengths and weaknesses.........9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

Introduction
Business environment refers to the sum of an internal and an external analysis that affects
an entity from several ways whether it is in positive or negative manner. An overall growth of
the business depends of both of these factors. The present report is based on Tesco, a leading
retailer and a supermarket chain in UK dealing in grocery products. Furthermore, the report
depicts type and purpose of different types of companies and the relationship between various
functions of organization. The study also presents an external and internal analysis by way of
Pestle and SWOT in order to assess the factors that impacts organization behavior.
LO1.
P1. Explaining several types and the purposes of an organizations along with their legal structure
TESCO
Company type- It operates as private organization in UK and also in other countries across the
world.
Purpose- The main purpose of this organization is to gain more and more profit, market share
and revenues by way of facilitating products and the services to customers in interest of their
shareholders and the owners distributed in dividend form.
Legal structure- In accordance to company law UK, private company are usually been owned
by the group of an investors or the small family owned business. In such organization
shareholders are not seems as legally liable for a business assets and debts. It is regarded as spate
legal entity which means that owners and company are distinct identity (DeConinck, Moss and
Deconinck, 2018). Such companies are not listed within the share market and must uses an
abbreviation relating to Ltd at an end of the name.
NHS
Company type- This firm functions its business as public organization within the UK around the
globe.
Purpose- The primary objective of this type of an entity is to make welfare of the people with a
motive to contribute towards society or community (Kasemsap, 2018). Along with this the firm
relies on their respective stakeholder’s contribution in terms of capital.
Legal structure- As per UK Company, it is the company that sold the proportion of their own
shares to general public by way of IPO in order to raise funds and its name ends with Plc. It is
the corporation that is operated and owned by government from the use of public funds.

Red Cross
Company type- This Corporation acts as the voluntary organization which does not make profits
and work for welfare of the people within entire UK and in other countries as well.
Purpose- The main motive of such corporation is to helps people and contributes to the
community as a whole without being paid for facilitating services. There major purpose is to
protect and safeguard the people suffering from any kind disease and is need of blood.
Legal structure- Voluntary organizations are considered as the group of the people, enterprises
that are linked together for contributing to society. It is usually operated by an individual who
does not get any payment in exchange of the services provided by them. The basic and main
feature of such firm is that it does not need any legal form and is solely dependent on their
capital contributions by stakeholders (Alsaad, Mohamad and Ismail, 2017). They can make
themselves register as the volunteers in reaching towards their objectives and goals.
P2. Describing size and the scope of different range of an enterprise
Basis TESCO NHS Red Cross
Vision To provide a better
life of the people by
offering several
products at minimal
prices so that people
could afford for
buying.
Vision is to enable
people in living
healthier and more of
independent lives by
way of higher quality
care to all the people
in community.
Building a strong
network of the
volunteers, partners
and the donors for
always helping people
at times of the need.
Mission The mission statement
of this company is
seen as providing
wide range of the
grocery and
supermarket goods at
affordable prices to
the people.
Company’s mission is
to facilitate services
and the care to
families who are in
need of it across the
globe.
It is the company that
aspires for turning the
compassion into the
action so that all the
people are prevented
from being affected
by the disaster around
the country and world.