Different Kinds and Purposes of Companies

Business and Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
LO1..................................................................................................................................................3
P1. Explaining different kinds and the purposes of the companies ...........................................3
P2. Explaining size and the scope of different organizations ....................................................3
LO2..................................................................................................................................................6
P3. Explaining inter-relationships between different functional departments within the
company .....................................................................................................................................6
LO3..................................................................................................................................................8
Identifying positive and the negative effect of macro environmental factors ............................8
LO4................................................................................................................................................10
P5. Conducting an internal and the external assessment of particular company for the purpose
of determining the strengths & weaknesses .............................................................................10
P6. Explaining the relationship between macro and internal factors of an entity ....................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment referred as the internal or external factor which affects function of
the company that involves employees, management, customers, demand and the business
regulations. The present report is based on Tesco, a leading grocery retailer of UK operating with
its outlets in different countries across the world. Furthermore, the report presents size and the
scope of different kinds of companies. Moreover, it also highlights the macro and micro factors
that directly impacts working of an enterprise.
LO1.
P1. Explaining different kinds and the purposes of the companies
Different company operate its business under different sector that is public, private and
the voluntary organization.
Public Limited company- It means the company that has legal right to offer its holdings
to the public for sale. It is the firm whose shares might be sold freely and traded to public with
minimum capital of amount $ 50000 and is suffixed with PLC at end of company name. Such
organization can either be listed or unlisted on stock exchange (Rezaee, 2020). The purpose of
public sector companies is to provide best or quality services to the customers at a reasonable or
affordable price and utilizing scarce resources in optimum way for maximizing productivity of
the company. For instance- National Health service (NHS).
Private Company- It is the type of privately held small enterprise that is considered as the
profitable company under which the liability of owner limits to their shares. The firm is allowed
to have 50 or fewer shareholders and its shares seems as prohibited from being traded in the
public. An enterprise becomes as an independent legal form of structure when it is been
incorporated. The aim of such company is to earn profits and in creating the value of an
enterprise. For example- Tesco
Voluntary firm- It refers to the group or the union of individuals who enters into
agreement as volunteers for forming the body in order to fulfil the objectives (Surin and et.al.,
2016). It is counted as non-profit organization with primary objective to work for the well-being
of the society and focuses on creating social effects instead of profit. For instance- Red Cross.
P2. Explaining size and the scope of different organizations
Basis National Health ASDA Red Cross

Service
Overview The company was
established in the year
1948. It provides with
comprehensive range
of the healthcare
services except
optimal and the dental
care. It works for
welfare of the people
and profit is the
secondary motive of
this company.
It is one of the leading
or largest retailer that
dedicates towards
serving the customers
through their network
of grocery services
and the stores with an
inclusion of
supermarkets,
supercentre,
superstores, living
stores and the depots
around UK.
It is born of desire for
bringing assistance
without any
discrimination to
wound on battlefield
within its national &
internation capacity
(Kuula and Haapasalo,
2017). It has been
developed for
preventing &
alleviating suffering
with human. The main
purpose of this
voluntary firm is to
protect the life of
human and ensuring
respect for human
being.
Vision To help the people in
living healthier and
independent life by
way of providing them
with high quality care
services.
To be as highly valued
enterprise through
customers served,
communities within
which it operates, our
committed & loyal
colleagues.
To inspire, facilitate,
promote and
encouraging all types
of humanitarian
activities by the
national societies for
preventing human life
and contributing to
promotion &
maintenance of the