Different types of organisations with their Purposes and Legal Structures

This report discusses the different types of organisations including public, private, and voluntary sector organisations. It explores their purposes, legal structures, and the interrelationship between organisational functions. The report also highlights the size and scope of these organisations and their linkage with objectives and structure.

BUSINESS AND THE
BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Different types of organisations with their Purposes and Legal Structures.....................3
P2. Size and Scope of various types of Organisations...........................................................5
TASK 2............................................................................................................................................7
P3. Interrelationship between different Organisational Functions and Their Linkage with
Organisational Objectives and Structure................................................................................7
TASK 3 ...........................................................................................................................................9
P4. Positive and Negative Impact of PESTLE Analysis on Macro Environment of Public and
Private Sector Organisation....................................................................................................9
TASK 4..........................................................................................................................................11
P5. SWOT Analysis of Both Public and Private Sector Organisation\................................11
P6. Interrelationship of External Macro Factors with Strengths and Weaknesses...............13
CONCLUSION..............................................................................................................................14
REFERENCES................................................................................................................................1
.........................................................................................................................................................1

INTRODUCTION
Business Environment includes all those forces which are outside the control of business
enterprise. These forces comprises investors, customers, suppliers, technologies, market
conditions etc. which influences the performance of organization (Argyris, 2017). All business
organizations like public, private and voluntary sector organizations needs to be aware of the
regular changes then respond to deal with those changes. Tesco PLC is a type of public limited
company which is one of the largest retailer of grocery products ranging from households items
to non household products. This report is based on public, private and voluntary sector
organizations in which their size, scope, purpose and legal structures and their linkage with
different departments of organization is enlightened. Also, the interrelationship between external
macro factors and strengths and weaknesses have been discussed.
TASK 1
P1. Different types of organisations with their Purposes and Legal Structures
Organisation is a form of human association which is established for the attainment of
some purposes. The aim of establishing this organisation can be either earning profits or the
social welfare. There are various kinds of organizations which are discussed below :
1. Public Sector Organizations : These types of sector includes those organizations
which are owned and financed by the government on the behalf of public. The primary objective
of public organizations is not to earn profit. They focused on social welfare of the public and
society. NHS is the example of public organization which broadcast the news across the world. Purpose – The purpose of public organization is to the highest standard of excellence and
professionalism with high quality of safe care to customers. Vision: The vision of public company is to develop their position of company. Mission: To provide best services to customers. Size: The number of employees in NHS is more than 1.4 million Scope: The main scope of company is to allow project manager to estimate costs.
 Legal Structures –
Legal structure of public company is to accountable to central or local government. They
are funded directly by government and they tend to supply public company. This have minimum

number of employees are more than 1000 employees. The company have to follow MOA for
proper work (Colenso,2012).
2. Private Sector Organizations – This sector includes those organisations which are
established and controlled by the private individuals. The owner of private organisations can be
either a single individual or a group of individuals. For example – Tesco PLC is a public limited
company indulged in retailing businesses in various countries like UK, US and many more. Purpose – The aim of private organization is to earn profits and to provide adequate
competition to the public sector organizations which will leads them to improve
efficiency and effectiveness. Vision: Vision is to describe future growth of company. Mission: To provide better services to customers. Size: Tesco is a British multinational grocery which currently had 6,800 stores across the
world and more than 4,00,00 employees Scope: Tesco has a scope of expanding it's market by dealing in frozen food, providing
customers with easy to cook quality food to its customers.
 Legal Structures –
The private company have the proper growth at the market place which can be the form
of sole proprietorship, partnership and corporations (Ehret, Kashyap and Wirtz 2013) this is
legally followed by state statute. The tax consideration enter into selecting a business structure
(Deshpande, 2018). in this requires minimum 200 employees.
Tesco PLC is a limited company and is governed by company laws.
3. Voluntary Organizations – Voluntary organization involves a group of individuals
who willingly enter into an agreement to form an organization in order to accomplish a objective.
Oxfam is a global charitable organization structure who works towards reducing the poverty in
the nation. Purpose : The aim of Voluntary organization is to work for the betterment of social
welfare. Social welfare not only includes development of individual but also growth of
society as a whole. Vision: To earn more profit by selling products and services. Mission: To create more growth within the company.

 Size: Oxfam works in 94 countries across the world, with almost thousands of local
partner organization. They works towards social welfare with more than 50,000
volunteers worldwide Scope: As the population is exploding, poverty is increasing and the organisation has a
wide scope of uplifting the conditions of people.
 Legal Structure –
The trust is not a legal entity which means they cannot enter into any agreements it their
own name. This leaves the trustees to open a path of personal liability. Unincorporated
Association – These association is not a legal entity. Hence there is no limitation of liability as
they entered into the agreement on the behalf of charity and are personally liable. The minimum
number of employees more than 50 employees.
Oxfam is a trust based voluntary organisation.
Growth of International Business Environment
Due to the continuous production of similar products, domestic market has led to the
saturation stage which has increased the growth in international markets. In recent years, the
trade barriers implied by Government had opened the doors for doing the businesses globally.
P2. Size and Scope of various types of Organisations
National health services (NHS) : NHS is a public owned company. They are known as
largest medical services provider in the world (Golovnev and et. al. 2013). The NHS is Funded
through general taxation with small contribution of national insurance payments.
 Background: NHS is a public owned company which is incorporated in 1948 for
providing best medical services to patients.
 Product or Services offered : Emergency services of infection diseases, eye test, dental
care etc.
 Size:The number of employees in NHS is more than 1.4 million.
 Scope: The scope for NHS can be to expand their emerging markets like in China, India
etc.
 Vision: Is to develop a partnership between patients and their clinicians.
 Mission: To create an environment that enable changes and innovation in order to
improve people health.

 Business Objectives: the work across organizational boundaries and in the partnership
with the other organization in the interest of patients and local communities.
 Stakeholders: NHS provider, local government association and director of adults social
services (Hamilton,and Webster2018).
TESCO PLC: Tesco is a public limited company which is founded 100 years back
(Huang and et. al. 2013). It is one of the largest retailing store across the world which offers wide
range of goods and services related to household and groceries.
 Background: Tesco is a type of public limited company which is a part of private sector
organizations. It is one of the largest retailers in the world which sells a variety of
products such as grocery items to non household items.
 Product or Services offered : The products offered by Tesco ranges from all grocery
products to non household items as well like clothing , electronics etc.
 Size: Tesco is a British multinational grocery which currently had 6,800 stores across the
world and more than 4,00,00 employees (Tesco posts highest growth in seven years.
2019).
 Scope: Tesco has a scope of expanding it's market by dealing in frozen food, providing
customers with easy to cook quality food to it's customers.
 Vision: Tesco's vision is to become the highly valued business by the customers and to
earn trust and loyalty from their target customers.
 Mission: The mission of Tesco is to grow profitability and to earn the lifetime loyalty
from their customers.
 Business Objectives: Tesco aims to create wide range of healthy products by cutting
their prices and offers more discounts (Singh, 2012). Their objective is to develop a
online website which would helps to create more customers.
 Stakeholders: The stakeholders of Tesco includes their employees, suppliers who supply
products to Tesco, their customers who buys their products and services and also their
trade unions.
OXFAM: Oxfam is one of the non profit group with an extensive collection of
functioning like working towards tackling the poverty and natural disasters.

 Background: Oxfam is a type of voluntary organisation structure which is global
organisation who works to end the injustice to the poverty. It is an non profit group
which perform various operations like poverty alleviation, disaster reliefs etc.
 Product or Services offered : Oxfam works for fair trade, education, health, poverty,
natural disasters, livelihoods etc.
 Size: Oxfam works in 94 countries across the world, with almost thousands of local
partner organization. They works towards social welfare with more than 50,000
volunteers worldwide (About Oxfam. 2019).
 Scope: As the population is exploding, poverty is increasing and the organisation has a
wide scope of uplifting the conditions of people.
 Vision: The vision of Oxfam is made the world without poverty where people are valued
and treated equally (Teng, Thekdi and Lambert 2012). They believe that people together
can create a fair world, free of poverty.
 Mission: Their mission is to become the favourite charity of people by convincing them
to donate the funds for their organization.
 Business Objectives: Objective is to provide good solutions to the injustice of poverty.
There aim is to empower the people to create a secure future from poverty.
 Stakeholders: The trustees of Oxfam, staff and their volunteers , suppliers and
communities where they operates are included in stakeholders of Oxfam.
TASK 2
P3. Interrelationship between different Organisational Functions and Their Linkage with
Organisational Objectives and Structure
The departments of organisation is highly dependent on each other directly or indirectly.
Tesco PLC is a public limited company in which their main motive is to earn profit which is
possible only if there is a proper coordination between their different departments (Wetherly,
2014). The relationship between various departments are discussed below:1. Marketing and Human Resource Department : Marketing department is highly
dependent on HR department for their marketing personnel for promotional activities as
HR people are responsible for hiring the marketing people who can best contributes to
their sales. For instance, There is a proper coordination between these two departments

of Tesco leads to increase in promotional activities which further helps in profitability of
business. As a result, if the company's aim and objectives are attained by raising financial
performance of the firm.2. Purchasing Department and R & D Department: The expansion of market depends on
the marketing research and the quantity of purchasing the inventory depends on
expansion of markets. In order to expand the market share in different countries of Tesco
PLC, they rely heavily on the research team. For example, R&D of TESCO provide ways
to implement the strategies that helps the firm to raise its productivity. Such that R&D
provide ways to provide best quality of products to their customers so that it will helps to
raise their brand image.3. IT Department and Finance Department : IT sector makes sure that each department
receives the information at right time and right place. IT department of Tesco requires
funds to upgrade the delivery process and online shopping. Tesco's Finance Department
focuses on planning and organizing the funds for each department. For example, without
having sufficient funds, it is difficult for the IT sector to upgrade the software in Tesco.
There dependence on each other ensures higher profitability by selling Tesco's products
and as a result, it helps to attain the defined aim and objectives.
Organisational Structures
 Matrix Organisation Structure – It is a structure in which there is more than one boss of
the employees due to diversified operations. For Example: Syngenta follows matrix
organisation structure which is also called as project team structure where there are
different team for specific projects (Analysing The Organisational Structure, 2019). Each
team consist of members from different departments. Syngenta uses expertise of different
people to bridge its functional areas.
 Functional Organization structure: In this organizational structure, firm also reporting
the relationship on the basis of group such that every big companies, department are
separated for marketing, finance, operations etc. therefore, in this structure, functional
heads have to report directly to the company's president and CEO. Therefore, it divides
the major functions of a firm into different groups and Airtel is the top firm that follow
the same structure.

 Hierarchical Organisational Structure - It is a type of organisation structure where
hierarchies organises the people into departments where authority travels from top to
bottom (Golovnev and et. al. 2013). NHS follows an hierarchical organisation structure
wherein there hierarchies are divided in a order which includes NHS Trust, Executive
Board, Executive Team and Management Board.
Tesco is also following a hierarchical organisational structure wherein department at the
top of pyramid have a maximum responsibilities and authority wherein Regional Manager is the
top most at store level organisational structure. In this type of organization structure, TESCO
creates a defined structure for communication and also establish the clear picture of authority.
TASK 3
P4. Positive and Negative Impact of PESTLE Analysis on Macro Environment of Public and
Private Sector Organisation
TESCO PLC
Illustration 1: Organisational structure of TESCO

Political Factors : Tesco is exposed to many political influences which affects the
operations of Tesco which includes Tax rates, legislations and political instability etc. Positive Impact: Due to political stability in UK, the cost of changing policies and rules
in Tesco are low.
 Negative Impact: Import duty charged on inventory imported from outside the UK like
Asia and China affects Tesco's profitability. Example- import duty imposed by government has created negative impact on operations
of Tesco because it import raw material from outside UK.
Economic Factors: Tesco is paying more emphasis on economic factors as these factors
directly impacts the buying behaviour of their customers. Positive Impact: The purchasing power of people of UK is high so they can afford
quality products offered by Tesco hence increasing it's market. Negative Impact: Brexit has brought inflation in UK and lead to increase in prices of
products and people of UK are spending less due to economic instability. Example – In year 2018 the minimum wage rate has been increased by 4.4 % for 25
years old and onwards. This has resulted in increase in cost for Tesco.
Social Factors: Change in customer behaviour and demographic changes are the social
factors which affects the Tesco profitability. Positive Impact: The customers have started moving towards one stop shopping to save
their time. Hence, Tesco had started increasing the number of groceries and non
household products to increase the customer footfalls. Negative Impact: The negative impact on Tesco is that due to changing customer
behaviour to healthy food products has lowered the sales of Tesco. Example – Obesity is a major issue for customers and society as they are more concern
regarding health. Tesco is having opportunity to develop organic products.
Technological Factors: Using the advancement in technology by Tesco can increase the
customer satisfaction. Tesco should develop supply chain management to enhance the cost
efficiency. Positive Impact: Tesco had develop the facility of online shopping with home delivery
with the advancement of technology. Example -Tesco has implemented RFID technology
that helps to improve in store experience of customers.

 Negative Impact: Tesco had a direct competition with other retail stores like Sainsbury
and Morrison which instigate a need for providing products at low profits to the target
markets.
Legal Factors: Tesco's business is directly influenced by the specific laws of government
like health and safety laws , consumer protection laws etc. Positive Impact: Tesco follows all the prevailing laws of government in UK which
increases trust among the consumers and increase customer base.
 Negative Impact: Tesco have to work in accordance with Food Retailing Commission
(Ehret, Kashyap and Wirtz 2013). For example – Without giving notice for change in
price they are not allowed to increase or decrease their prices. Example – In year 2016, nearly 17 workers has taken legal action against Tesco on the
basis of gender and age discrimination. This has negatively affected reputation of firm.
Environmental Factors: Tesco understands the relevance of social responsibilities and
focuses on reducing the environmental wastage by optimally utilising the natural resources. Positive Impact: By increasing the social awareness in customers, Tesco is minimising
the waste produced in their stores. Example- Tesco has launched tesco.com website that helps to collect unwanted plastic
bags from customers. It helps to reduce pollution in environment.
 Negative Impact: Tesco's competitive position in UK is getting influenced due to the
tightening of environmental policies and regulations.
TASK 4
P5. SWOT Analysis of Both Public and Private Sector Organisation\
SWOT Analysis of NHS
Strengths Weaknesses
 The firm have highly skilled clinical
staff and its operates its unit at
international level by providing
emergency services to their patients.
 It maintain good relationship with their
customers and also provide effective
 Sometimes NHS nurses are not able to
meet the patients requirement and as a
result, they have to suffer.
 Company has another weaknesses
related to not using updated and
advance techniques into the working

services to treat their patients.
 The company also have different tie-
ups with its doners and have skilled
staff that may also provide primary care
to their patients.
area to minimize time,.
Opportunities Threats
 Having a brand image at international
level, the company may also generate
an opportunities to develop good
marketing option such that social media
through Facebook and Instagram.
 It may also focus on customer care
model in order to sort out problems of
their customers.
 Sudden changes in the demand of
public is consider as as threat for the
company.
 High competition and increased use of
private sector is also consider as a issue
for the company.
SWOT Analysis of Tesco
Strengths
 Tesco is known as one of the leading
grocery retailer in the UK (Argyris,
2017).
 Tesco has diversified product range all
over the world.
 Tesco had its operations in various
nations like UK,US, China, Poland etc.
Weaknesses
 Tesco is entirely dependent on UK
market.
 Tesco is focusing on economic range of
products for mass volume.
 Its operations had been failed in US and
Japan.
 The financial profits are adversely
affected due to Tesco's credit card
liability.
Opportunities
 Tesco had an opportunity for join
ventures in stores which are
Threats
 Currency fluctuations in the countries

underperforming.
 Tesco may increase its profitability by
upgrading its online shopping and
home delivery services.
 Strategic alliances with other
competing brands enables Tesco to
attract more customers to their stores
(TESCO SWOT Analysis, 2019).
 They should focus more on non
households products.
can be a threat for losses to Tesco.
 Price war between the competitors is a
threat to Tesco.
 Expansion of businesses globally can be
very expensive.
P6. Interrelationship of External Macro Factors with Strengths and Weaknesses
Tesco PLC
 Political: The reduction in import duty on inventory from other countries like China and
Asia has enabled Tesco to expand successfully in the other countries apart from UK.
 Economic: During recession, the sales for the consumer goods also increases which can
help them in becoming the largest retailer across the world (Singh, 2012).
 Social: The availability of diversified range of products from all food items including
healthy items and non household products under one roof can increase the profits.
 Technological: Tesco can upgrade its online shopping services and home delivery
services which can make them better from their competitors. Hence, it would improve the
brand image of Tesco.
 Legal: The non allowance of increasing or decreasing the prices without notice is
bounding them to limit their market to certain countries only (Colenso, 2012).
 Environmental: The minimal wastage of natural resources in supply of inventory will
help them in becoming the leading grocery retailer across the world for long period of
time.
Strength and weakness interconnection with external macro factors-
Political stability enhance the productivity and performance of company effectively, it
allow them to work with earlier structure without making any changes. With the help of skilled
and talented staff firm will perform better when any chances occur related to technological

advancement. By using the digital technology organization gain opportunity to generate
awareness of their product at global level.
CONCLUSION
From the above report, it has been concluded that all the types of organisation has to
follow all the legal compliances prevailing in the operating country. The proper coordination
between all the departments of businesses helps in attainment of long term objectives. The
external factors affecting the organisation had both positive and negative impact on their
functioning. Tesco PLC follows hierarchical organisation structure which ensures smooth
operations which helps the company to earn probability and larger market share.

REFERENCES
Books and Journals
Argyris, C., 2017. Integrating the Individual and the Organization. Routledge.
Colenso, M., 2012. High performing teams in brief. Routledge.
Deshpande, A., 2018, November. Technology neutrality as a practice: A discussion of two UK
interventions on broadband and associated outcomes. In 2018 11th CMI International
Conference: Prospects and Challenges Towards Developing a Digital Economy within
the EU (pp. 1-6). IEEE.
Ehret, M., Kashyap, V. and Wirtz, J., 2013. Business models: Impact on business markets and
opportunities for marketing research. Industrial Marketing Management, 42(5). pp.649-
655.
Golovnev, I.F. and et. al. 2013. Defect generation as a phenomenon of structure self-
organization under external loads. Physical mesomechanics, 16(4). pp.294-302.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Huang, H.C. and et. al. 2013. Overcoming organizational inertia to strengthen business model
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Singh, P.K., 2012. Management of Business Processes Can Help an Organization Achieve
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Wetherly, P., 2014. The business environment: themes and issues in a globalizing world. Oxford
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