Different types of organisations with their Purposes and Legal Structures

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.