Types of Companies and their Scope and Purpose

This article discusses the different types of companies - public, private, and voluntary - and their scope and purpose in the business environment. It also explores the interrelationship among different functions of organizations and the positive and negative impacts of macro surroundings on company operations. Additionally, it conducts a SWOT analysis of a company.

Business and the
Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
Various types of company along with their scope and purpose..................................................3
Scope along with size of companies..........................................................................................5
TASK 2............................................................................................................................................7
Interrelationship among different functions of organisation.......................................................7
TASK 3............................................................................................................................................8
Positive and negative impacts on macro surrounding on operations of company......................8
TASK 4..........................................................................................................................................10
Conduct SWOT analysis of company.......................................................................................10
Interrelation between strength and weakness with large factors...............................................12
CONCLUSION .............................................................................................................................14
REFERENCE.................................................................................................................................15

INTRODUCTION
Business environment includes both internal and external factors that affect the function,
operation and strategies of company. So it is vital for the entities of company to analyse all these
factors effectively. Additionally, coordination & collaboration is also important for the smooth
running of business operations. In which the present report consist a private company Tesco, a
voluntary company Wellcome Trust and the public company is selected and that is British
Broadcasting. All these firms operate their business for different purpose. The present report
carries discussion about all these three types of company such as public, private along with
voluntary with their scopes & purpose. Additionally, the relationship among organisational
function of a company and that is described with the assistance of PESTLE and SWOT
framework and lastly the evaluation of strength and weakness of company is carried out.
TASK 1
Various types of company along with their scope and purpose
According to research at UK, Company operates their business and operation for the
accomplishment of organisational goal along with objective. In which there are various types of
company which run their business with the different purpose in this business environment and
that are public, private and voluntary organisation. Their existence in market is for different
aim. The private company in international business atmosphere will serves a lot of company.
Different types of business organisation are as follows:
Private company: Companies comes under such types of organisation are those who
operates with the help of partnership, association, agency or corporation. All these refers to
private companies and operates their business with the primary purpose of earning money as well
as to full fill the market demands by their offerings. These firms are free from federal policies
and they are only the responsible for any loss or benefits. Example of such kind of companies are
Tesco, Sainsbury, M&S etc. these are the private companies and it also includes some public and
private limited firm, sole traders and do on (Islam, 2017).
Legal structure of private company:
Sole traders: Sole traders are those who manges and handles the various organisational
function in effective manner itself. Owners of these types of firm posses responsibility for carry
out the function & operations that are linked with their operations, legal and financial aspects.

Partnership: It tends to another type of private company which requires a less funds ass
well as the risk involvement is also lower in this. Example of such types of firm is John Lewis
partnership (Jaelani, 2016).
Private limited companies: These are those companies which are operated by individual
and they are not permitted to sell their market shares in market to other players. For instance
Aridri.
Public limited companies: Under such types of categories all companies are free to sell
their shares in market in order to gain the market shares and for increasing the profitability of
company by providing wide variety of products to consumers.
Public organisation: These are such types of business unit which are mainly govern by
the government, in which their main is to offer qualitative product or services to consumers so
that the living standards and status of individual will be improved. This organisation contributes
a large number of extents towards economy of nations. The various types of enterprises that it
includes are gas, oil, steel, fertilizers and so many others. The main objective of public
organisation is to improve the profitability of company and that ultimately tends to growth of
nation by developing economy. British Broadcasting is an example of such types of public
company (Jonah, 2018).
Central government department: - These types of companies are governed by the central
government of the nation.
Local authorities: These companies are controlled and managed by local authorities.
Voluntary organisations: It refers to those types of companies, which are operated by
some trustees and the main of of operating to to do well fare for the peoples of society along with
their development. In context of present scenario, Wellcome trust is chosen as Voluntary
origination. This is a social welfare trust and supported by Henry Wellcome in 1936. In
relevance to this following legal structure are related with the voluntary organisation:
Trust: In this type of trust, these are mainly operates by trustees an they provides funds
for the welfare of society along with the development.
Others: Royal charter bodies, communities and so on.
Un-incorported associations: All these are considered as management committees and
that mainly assist for effectively performing the task and operation so that goal will be attain.

Scope along with size of companies.
According to research at UK, Different type of companies has different purpose, size,
mission and vision of company as well as offering. All these firm wish to influence maximum
shareholders in their firm so that they will able to increase their capital with the assistance of
them and will able to gain advantage of competitive market. Scope and size of companies are as
follows:
Private limited company:
Such types of company possess purpose for increasing the profitability and operation
efficiency with the assistance of gaining predefined goal and that are being laid by the top
management of companies. In context of this, a private company is chosen which is Tesco. It is a
lading company in retailing industry for the grocery products in UK and making huge profit
there. These companies have major or primary aim to earn profit by satisfying the needs of
consumers. These firm carry put effective market research in order to identify the needs of end
users and on the basis they modifies their strategies for the successful execution of operations
Background: Tesco is a leading brand and has second largest supermarket chain in UK.
This company was founded by John Choen in 1919. they offers wide variety of product to
consumers for the accomplishment of organisational gaol.
Vision: The primary vision of this company is to develop high values with regards to
business by providing qualitative product along with services to the potential consumers.
Mission: The main mission of Tesco company is to offer positive environment to staff
members so that they will able to perform allotted task effectively and will able to offer quality
product to consumers.
Objective : To generate more revenue in order to increase the market shares of company
across the whole world.
Products: Tesco Company is a leading companies and operates its business at
international level for this they deal with wide range of product which are related with the
grocery, home furnishing cloths and etc. (Khajeheian, 2018).
Size : Tesco company is a large firm as they run their business at global extent and the
number of employees that they consist currently is more than 5,00,000

Structure: Tesco Company follows functional organisational structure as it make easy for
manger to manage all members of company in effective manner as well as all information will be
spread to all levels of management.
PLC ( public limited company)
It tends to those companies which are the part of public sectors by a legal framework at
any degree. For instance BBC ( British Broadcasting company ).
Background: BBC is a public service corporation of British and that headquarter of this
company is located in London. This is very old and famous company, established in 1922 on 18th
October by John Reith. This was launched by royal charter. This company offers services related
with the digital, culture, media and sport (Oishi, 2019).
Service or product: BBC provides information to individuals with the help of digital
media such as newspaper, TV, Radio, News, Internet and so on.
Vision : To become the internationals most creative and innovative business unit.
Mission: BBC provides information to peoples by offering entertainment programs with
new sessions.
Size: In BBC currently the number of employees working with them are around 21000.
so it also a large size company.
Objective: BBC has a goal to provide knowledgeable programs and information to
consumers so that individuals have relevant information related to the issues or problems that
occurs across the globe.
Structure: Hierarchical organisational structure is followed by BBC Company.
Voluntary company:
Voluntary company refers to that business unit which run these business function for the
welfare and development of community individuals. Their main aim is not only to earn money
but also to do good things for society of that their living standard will get improved. In context of
this, the present company that is selected for voluntary organisation is Wellcome Trust. This is
well known trust of UK (La Mesa, 2019).
Vision: Vision of Wellcome company is to improve the health of peoples long with
animals by conducting research on biomedical
Mission: Their primary mission is to so good in biomedical research so that individual
will able to gain advantage of that.

Size: Wellcome Trust consist more than 1800 employees with themselves and that is
considered as the large firm.
Objective: To improve the health and wealth of individuals and for this they provide
funds to several biomedical researchers.
Structure: Matrix organisational structure is followed by the Welcome Trust company.
TASK 2
Interrelationship among different functions of organisation.
Marketing and finance: The role that is performed by the department of marketing is to
carry out effective promotion in order to increase the awareness about product or services at
marketplace. And the role that is performed by the finance team is to manage all inflows and
outflows of cash. So that fund will be effectively utilised. Internation between among these two
will arises when a marketing department needs funds for promotional activities such as for
advertising, there is need of expense so that time finance team will aid them in providing funds.
In context of Tesco, the finance department provides marketing and finance budgets to marketing
team of company for the promotion. This interrelation need to be very strong as it aids to
effectual use their funds in order to attain the gaol of company (Rosenberg Hansen, 2016).
HR & Marketing: The main objective and duty performed by the Human resources
management team is to recruit highly skilled, experience and knowledgeable candidate in order
to launch some innovative and creative products to consumers. For this the vacant position
within the firm will be determine by entities of marketing team. For effective promotional
activities, it is important to recruit those individual who have educationalist in marketing or
digital marketing as there is a trend of digital marketing. In relevance to Tesco company,
marketing department provides requirements of candidates to HR departments. This coordination
aids Tesco to recruit and select workers who have all required abilities. This interrelationship aid
Tesco to accomplish the goal of effective hiring (Ślusarczyk, 2019). So this will increase the
productivity and profitability of company and that ultimately lads to high quality staff.
Organisational structure: Organisational structure refers to a systemic way for managing
the entire staff of company there are various type of organisational structure. In which functional
organisational structure is followed by Tesco Company as it provides clarity to all members like
whom they are responsible and answerable. As well as it assists in increasing the operational

efficiency as it increase the involvement of employees in decision making process of enterprise.
With the help of this structure, it has been often seen that each and every department with
Business Company are managed by specific candidates and that is known as manger.
TASK 3
Positive and negative impacts on macro surrounding on operations of company.
In business, it is essential to be aware about business environment so that factors impacting
upon business are identified in proper manner. External factors have deep effect n organisational
structure which are needed to be determined with proper considerations. In context of selected
firm, they use PESTEL analysis to examine external elements that are further discussed as
follows-
Political factors- In this component, it comprises of factors like employment law, labour
law etc. In relevance of Tesco, they are being too affected by these factors as for example- due
to financial instability and ongoing of pandemic situation government has forced companies to
produce more job opportunities.
Positive impact-
Main positive impact of this factor is that it increases goodwill of firm at higher scale.
Negative effect-
Due to large generation of opportunity of employment, wages of other employees
decreases (Strzelczyk, 2017).
Economic factor-
It is another component in which it depicts the intensity up to which government can
interfere. It includes factors like inflation & deflation rate, foreign exchange rates, etc. Tesco is
mostly known for its diversification business and strategy. It has wider effect on company
because it leads to change in enterprise because of change in policies, taxes rates etc. (Sparks,
2019).
Positive impact-
Due to this factor, chosen firm has been able to expand their business at global scale.
Negative impact-
Due to increase of labour cost, it is affecting entity's overall financial structure because
they have large number of employees who aims at increased wages.

Social factor-
It is another element in which it factors like habits, perception, culture, region etc. It is
crucial to focus on these as because products and services are produced within society. Due to
increase of demands in market, Tesco has increased their stores and products portfolio.
Positive effect-
Main positive effect of this component is that it has large number of products portfolio
which leads to better engagement with customers.
Negative effect-
Due to frequent changes in society and community, firm has to change polices at regular
level.
Technological factors-
It comprise of elements such as use of artificial intelligence, software, hardware etc.
Tesco also has high end security management system through they protect their user’s
information (Van der Voet, 2016).
Positive impact-
Due to use of technology, they are able to achieve competitive advantage in market.
With adaption of new technologies, they are able to cope up with new market situations in
effective manner.
Negative effect-
As technology changes occur at rapid scale, it disrupts the business environment of
enterprise.
Environmental factors
It includes elements like green agenda, climate change, etc. In relevance of Tesco, they
have been following environmental law at all aspects. For example- firm establishes campaigns
for protecting of environment in effective manner (Toyibah, 2017).
Positive effect
Due to reduce of plastic bags in products and services, firm has establish a positive
relationship.
Negative effect
To follow all environmental changes requires a huge capital, which is difficult for
business.

Legal factors-
It is last component of PESTEL in which it includes factors like law, legislations, rules
etc. In reference of selected firm, their legal department remain active in legal way so that
problem or issue does not arise.
Positive effect
Main positive effect is that Tesco follow carry out their activities with properly
following all rules & regulations.
Negative effect
Tesco has been accused of gender discrimination within their workplace. It negatively
affects their goodwill of firm at larger scale.
Therefore, from above discussed matter it has been examined that it is essential for entity
to analyse external business environment factors so that it is easy to make effective decisions.
Furthermore, appropriate type of market analysis is needed to be done so that goals are achieve d
in correct way (Vasilev, 2017).
TASK 4
Conduct SWOT analysis of company.
SWOT analysis is a model that is used by companies in order to determine the internal
strength and weakness along with external opportunity and threat. To main growth of sales and
profit it is vital for company to carry out SWOT analysis. This gives an idea for performing all
business function in effective manner. SWOT analysis of selected companies is as follows:
SWOT analysis of Tesco
Strength Weakness
Tesco is one of the leading brands in
grocery of UK and have position 1 in
supermarket at UK. Have higher sales
and revenue generation throughout the
world.
Tesco adapted new technologies in
order to offer qualitative, innovative
products in best optimal manner for
Tesco fails to carry out effective market
research in some nation and due that
they face financial losses.
Due to high debt and credit card
liability, the financial profits of
company got affected.

increasing the experiences of
consumers.
They have innovative M- commerce
facilities as well as mobile payment
applications for maintaining the growth
and development.
Opportunity Threat
There are many opportunities available
for Tesco company in order to expand
their market in other nation. For this
they need to carry out string market
research. Tesco perform work in South
Korea market with the assistance of
effective market research.
Company can make partnership with
reputed companies such as P&G,
Amway and so on. This aids Tesco to
provides more products and influence
so many consumers.
Tesco faces so many number of social
media backlash when it launched
Christmas advertisement. Due to these
peoples boycotts the stores.
As Britain is no more part of European
nation and that become the biggest
threat of company in order to deal with
trade and costs.
SWOT analysis of BBC (British Broadcasting company)
Strength Weakness

BBC started their business in year 1922
and since then they maintained a good
image and reputation among
consumers.
This company keeps itself updated and
foster new information for peoples.
BBC knows points of journalism and
offers new things to the viewers.
BBC faced many controversies and had
blamed for presenting news based on
sensitive issues of world.
Operating cost of BBC is so high and
due to this competitors of BBC are
operating their business in lower
expenses.
Opportunity Threat
BBC has opportunity to organise
programs related with the entertainment
fashion and technology.
BBC updates their operations and
offerings on daily basis so they have
opportunity to improve the numbers of
consumers by such offerings (Jaelani,
2016).
Biggest threat is strong competition at
marketplace.
Due to increment in domestic channels,
the competition is increasing for BBC.
Interrelation between strength and weakness with large factors
The decision making of all firms got affected by macro and micro components of
business environment. In context of this, with the assistance of PESTLE and SWOT analysis
entities of company can effectively analyse markets. Both of these framework aid management
to take best decision for increasing sales & market shares of company. Enterprises need to grab
opportunities of marketplace and carry out work effectively. Behind that main purpose of all
company is to cope up with the weakness and threat by effectively utilisation of resources.
Political factors are a part of macro environments that involves political stability & trade
policies. The biggest strength of Tesco Company is the leading brands in UK and that is political
stable country so it helps the entities of company to gain advantages of competition by
combating with other players of market. In relevance to this, weakness is that Tesco is operating

in UK and that is facing issues due to Brexit case. This hampers the overall performance of
business units of UK (Islam, 2017).
Economic factors are related with the purchasing behaviour of consumers along with
power. Strength of economic factor provides to Tesco is that they operates their business at high
economy nations. Which aids entities to trade freely? Weakness of this is they are not will be
gain strong margin of profit in lower economic nations.
Social factors are related with lifestyles, perceptions, choices and the living standards of
end users. In this situation Tesco company offers products to consumers according to their needs
and requirements and that provides satisfaction level to consumers. Weaknesses of Tesco against
this component are they have poor market strategy and that fails to meet the demands of
consumers.
Technological factors are linked with the advancement and updated technology. With
relevance to this, strength of company against this factor is they adopt all latest technologies for
performing operations as well as for gaining competitive advantage. Apart from this weakness of
Tesco against this component is that they have to offer some training and development sessions
to their staff members for adhering new technologies and this requires a lot of expenses (Jonah,
2018).

CONCLUSION
From above discussed report its has been analysed that all companies either private,
public or voluntary operates their business with different aim and scope. In context of this the
aim of public organisation is to provides services to consumers for enhancing the living
standards of individuals, private companies operates their business with the gaol of earning
moneys and voluntary organisation run their business with the aim of welfare of society peoples.

Additionally, it is vital to have interrelationship among functions of company for the effective
execution of strategies and operation of company. PESTLE and SWOT analysis will help in
identifying the conditions of market along with other players of market. This will aids entities of
company to effectively take right decision for increasing the sales and profit margin of company.

REFERENCE
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