Types and Purpose of Organisations in Business Environment

Business
and Business
Environment

Table of Contents
1 Explain different types and purpose of organisations.........................................................3
2 Description of legal structures in private sector..................................................................4
3 Organisational structure aliment with business objectives and their role in creating products
and services............................................................................................................................6
4 Critically analyse complexities in various business structures and relevance of
interrelationship between organisations.................................................................................8
CONCLUSION..............................................................................................................................10
REFERNCE...................................................................................................................................11

INTRODUCTION
Business environment is a combination of various external elements which posses a
effect on various business activities such as various external stakeholders such as
suppliers,customers, demand, supply and many others. Internal stakeholders include employees
and external stakeholders include customers, suppliers etc(Teece, 2018). This report is based on
Tesco which is a private organisation and a leading brand of super market in UK. Oxfam is
selected as a voluntary organisation and in public sector organisation BBC is has been selected.
This report is based on different purpose and types of organisations,. Description of a particular
structure which is being adopted by a private sector organisation is there and role and importance
of organisation structure in achievement of their objectives is analysed. Lastly, importance of
such interrelationship is analysed.
1 Explain different types and purpose of organisations
Organisation can be categorized in different structures based on their objectives
according to profitability, society's welfare. Scope, purpose is described below:
Public organisation: Public sector mainly include organisations that are mainly operated and
owned by governmental authorities in order to provide services to citizens as to fulfil their needs
in a well defined manner. Main aim of these organisations is to satisfy need of customers rather
than to earn large base of profitability. Entities in these organisation offer their services mainly
for the benefit of community as a whole. This is a organisation which is owned and controlled by
government of a country. They provide best services to enhance overall position and image in
market. NHS is a public organisation and it was established in 1948 to increase overall service of
health to people.
 Purpose: NHS is a public sector organisation and it has been established with a aim thet
they will be able to provide free of cost service to needy people in t he country. Major
purpose is to provide best service so that overall improvement of health can take place.
 Stakeholder: There are various stakeholders who are related to overall functioning of
company this includes individuals such as employees, debtors, creditors who affect
functioning of Tesco indirectly or directly(Saleem, 2017).
Voluntary service organisation: This refers to those organisations which is involved into
initiation of programs and projects which are related to overall benefit of society. Voluntary
service overseas is a voluntary organisation which refers to a group of individuals which work

on achieving a common objective. It can be incorporated or unincorporated. Major purpose of
this voluntary organisation is mentioned below:
 Purpose: Voluntary organisation provide their services to individuals and community
with a purpose to provide humanitarian services to them while increasing their living
standard. This will help in solving of various issues which are being faced by people of
society.
 Stakeholders: these are those people who are affecting the overall functionality of
company. It includes employees, customers and other related people who affect overall
functionality of company.
Private organisation: It is organisation which consists of individuals, agencies and various
partners. They are not a public body and have major objective to earn maximum profits. TESCO
is a private organisation which is dealing in various types of grocery products at affordable
prices by their customers..
 Purpose: Tesco is a private company and its headquarters are located in Garden city in
UK. It was founded by Jack Cohen. This had a sole motive of offering best quality
products This was established in
 Stakeholders: These are investors, shareholders, customers, employee, trade unions
which has a affect on functioning of the company.
2 Description of legal structures in private sector
Tesco is a general merchandise seller company. They are having a hierarchical structure
in which they are divided into positions, structures and obligations which have been divided into
different parts so that work can be performed in a smooth manner. Following is the description
of legal structure in Tesco:
Board of Directors: there are 10 members who are part of board of Tecso. They are responsible
for all major changes which are taking place in the company. Tesco has chosen a strategic
business unit across various business areas . There are some matters which are significant and are
reserved for decision to be taken by Board(Ricciardi, Zardiniand Rossignoli, 2016).
Chairman: The chairman is responsible for ensuring overall effectiveness as they take into
account interest of different stakeholders who are responsible for promotion of high standards of
corporate governance. Major key responsibilities are: