Different Types and Purposes of Organisations

This document explains the different types and purposes of organisations, including public, private, and voluntary sectors. It also discusses their legal structures and the size and scope of different types of organisations. The relationship between organisational functions and their link to organisational objectives and structure is also explored.

Business and the
Business Environment

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures......................................................................................................................3
P2, Explain the size and scope of a range of different types of organisations.............................6
TASK 2............................................................................................................................................8
P3. Explain the relationship between different organisational functions and how they link to
organisational objectives and structure. ......................................................................................8
TASK 3............................................................................................................................................9
P4. Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.................................................................................9
TASK 4..........................................................................................................................................13
P5. Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses...........................................................................................................13
P6, Explain how strengths and weaknesses interrelate with external macro factors.................16
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Business is a mixture of different settings and events including some commercial activities
which are performed and executed by companies or individuals as entrepreneurs for motive of
profits and attaining the strategic objectives by following all the legal structure and operational
guidelines (Alotaibi and Liu, 2017). The Report is divided into two separate parts in which the
first segment highlights different types of organisation that exist in the marketplace with their
purpose and legal structures and also elaborate on their size and scope. Several functions and
their interrelationship that are present in the organisation are also evaluated. The second part of
the report is developed on Tesco which is a supermarket store in United kingdoms developed in
1919 by Jack Cohen. The Macro environment of a company is evaluated their PESTLE, SWOT
and TOWS model is utilised for understanding the internal and external business environment
and knowing the interrelationship among them.
TASK 1
P1. Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures
Meaning of a Business Organisation:
Business organisation is a term that defines a structure and objective of a specific entity that is
developed according to be plans and overall external and internal business environment. Every
general business is the signed with the focus over two specific objectives that is of earning higher
profits and moving towards growth and success by spreading awareness and making that are
present in the society. There are numerous types and categories of businesses which are being
run in the environment. These business organisations are defined below:
Types of Business Organisation:
 Sole Traders are individuals single handily set up their business which is known as sole
proprietorship where the ownership and control of all the business related activities are in
hands of single person who is not a separate from the business. In other words an
individual who is running their own businesses are known as a sole traders who are
responsible and liable for all the liabilities and enjoy the benefits earned.
 Partnerships is a business setting that is developed by efforts of more than two parties
who are known as partners. The relationship between partners is governed and regulated

with the help of a partnership deed also known as an agreement which are signed by all
the parties involved in the partnership business which define their specific scope and
structure of the partnership along with representing all the responsibilities and role of
each partner and their capital investment ratio.
 Private Sector organisation are privately held businesses which are initially started with
the smaller level holding small size and scope but with growth and success changes into a
large organisation. A privately owned business is small on initial level and therefore there
are less than 50 shareholders involved in the business according to United Kingdom the
entity is not allowed to trade there shares publicly not even able to exercise any trading
activities on any stock exchange. Hilton Hotel is a good example of a private organisation
which is dealing at international level. Specifically, the size of a private sector business
organisation can be both small and huge based on the business which is performed by the
organisation or it also depends on the market in which it is performing like it is local,
national or International. Tesco PLC is considered to be a public organisation which also
run as a private one because its shares can be owned by public as well. Size specifically
based on the different levels like local, national or international, in which a public
organisation is performing. On the other hand, the scope of an organisation within private
sector is to earn maximum level of earnings through specifically delivering required
services to the customers and clients. Including this, the goal private organisation like
Hilton hotel is to to become the leader throughout meaning high profit margins within the
industry in which it is performing like hospitality sector.
 Public Sector Organisation are most commonly limited liability companies which has
the power to sell their shares in stock market and conduct appropriate sharing activities
with the help of available stock exchange. Private sector organisation unnecessarily have
to maintain a minimum capital of £50,000 in United Kingdom and are also responsible
for failing their financial returns and records every 12 months by following the respective
accounting principles. Over public sector organisations have to get their certificate after
reading from Companies House before conducting any share exchange activities
(Alotaibi, 2016). Crown prosecution is said to be a public sector organisation which
specifically helps different individuals with legal issues. Crown prosecution is
performing at national level therefore it has great number of employees that are dealing

with different legal issues. Goal of a public sector organisation is to embrace the living
standards of civilians of a country.
 Not for Profit Organisation (Voluntary) are the businesses which are set up in the
market with a very different objective from other business entities that is not related with
any financial gain and earning profits bringing change in public and in society by
providing services to those who are unable to have appropriate opportunities for
completing their daily requirements. In present context, Oxfam can be considered as a
good example of a not for profit organisation, which also so consider as a charity
organisation that helps people who are in need. Goal of a voluntary organisation is to
specifically help the people who are in need like vulnerable. Scope of this organisation is
to improve the living standards of a group, community or the society. Basically, the size
can be both small and large in numbers based on the the area in which a non-profit
organisation is dealing.
Difference in Types of Business Organisations:
BASIS PROFIT
ORGANISATION
PRIVATE
ORGANISATION
VOLUNTARY
PURPOSE The purpose of public
sector enterprises as
they are government
bodies that to seek to
deliver appropriate
goods and services to
to people including
military, police,
public, infrastructure
and other for benefit
of society.
The private
organisations are the
integral part of
country's economic
systems which are
privately owned by
individuals and group
of people and running
the operations for
profit making.
privately owned
organisations are an
important source of
growth and
development and
The sole purpose and
initiative of voluntary
organisation is to
provide benefits to
the society by
enriching it and
without any
expectations of
returns and profit. the
voluntary
organisation also
create social wealth
and works for benefit
and improvement of
the society.

generation of per
capita income of
country along with
widening the
countries GDP
(Batocchio, Ghezzi
and Rangone, 2016).
SET UP FOR Example of Virgin
mobile as a public
owned company and
one is the leading UK
Challenger banks.
The focus of virgin
mobiles is laid on the
approach which seat
to offer a good value
to the customers by
delivering a positive
contribution towards
the society.
Tesco is the best
example of a private
Organisation in
United Kingdom.
Tesco is the British
multinational retail
company which has
been sitting to lay
emphasis on
generating a huge
range of revenue and
income by opening a
competitive
advantage of its own.
Cancer research UK
is a voluntary
organisation and they
provide social
services by
conducting research
and campaigns for
preventing cancer
from the society and
spreading awareness
amongst people.
SIZE Virgin Mobile is a
large organisation it
self holding
operations in huge
size and its employee
base is vast and wide
spread in those areas
where the firm
operates.
It is a large
organisation
operating in number
of location worldwide
and in huge markets.
Cancer research is a
voluntary
organisation who
have small permanent
employee base other
enter and leave on
their own will. `

SCOPE The geographical
scope of Virgin
Mobile is wide
spread from UK to
many other
developed and
developing markets
in the world.
Same is the case of
Tesco, the firm is
established in UK
and now operating in
markets like Ireland,
India and others.
The scope of Cancer
research in
geographical term is
limited in UK.
P2, Explain the size and scope of a range of different types of organisations
Difference between Micro, Small, Medium and Large Organisation:
BASIS MICRO
ORGANISATION
SMALL
ORGANISATION
MEDIUM AND
LARGE
ORGANISATION
Size Micro Enterprises are
small business sectors
where employment level
is very low and with low
investment capital
(Belas and et. al., 2018).
Small business
Enterprises are owned
by independent bodies
and small number of
workers is involved in it
seeking to enhance their
business activities and
operations in order to
for long run and
increasing their sales
volume.
Medium and large
organisation includes
those employees
working as voluntary
membership and mostly
involves the
multinational bodies
holding the possibility
of increasing their
growth on a very fast
scale.
Scope The scope of micro
business organisation is
in developing countries
as they constitute of this
type of enterprises in
large number there all
The small size
businesses privately
owned businesses
mostly sole proprietors
working in partnerships
holding a chance of
Medium and large
organisation includes
multinational businesses
that work as a part of
government sector and
thereby earning huge

the necessities are
compelled by micro
businesses adding value
to the economy and buy
domain there in scope
for better income and
opportunities.
bearing in their sizes
and revenue structure by
capturing appropriate
opportunities.
profits. The capital is
kept aside for future
developmental purposes
for seeking to develop
internal aspects of
company.
Number of
employees
10 or less 50 or less 250 or less
Goals Goal of a micro level
organisation is too on
enough to fulfil daily
needs or to survive
within today's
competitive market.
Goal of a small
organisation can be the
same as micro level
companies but the major
difference is they
specifically earns more
than the micro ones.
Goals can be different of
both medium and large
level organisations
because, some may have
to become a leader
within the area in which
they are performing and
some of others might
not stop themselves by
their only but to earn
maximum profits
through expanding
business at International
or National level.
TASK 2
P3. Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.
In previous sections it has been identified that there are different types of business organisations
that is Private, Public and Voluntary. This business organisations are of different sizes and scope
which are separating them from each other into Micro, Small, Medium and Large businesses and

also their business legal structure and objectives differentiate from one another. Every
organisation which exist in the marketplace have different functions which ones integrated and
complete their respective task contributes to the ultimate organisational goals and objectives with
the help of strategical means. Tesco is a privately owned entity and considered as one of the
largest retailer in United Kingdom holding several operations and departmental units as it is a
multinational organisation which is diversifying into different geographical locations serving to
customers with its numerous stores.
Organisational functions:
 HR department: Tesco PLC, already has an effective HR department which helps
company in recruiting the best employees based on their qualifications and skills who fits
the vacant seats within the company.
 Finance department: This is said to be the Primal department of Tesco PLC because
this department looks into financial books and keeps an eye on all the expenses and profit
margins that takes place every year.
 Research and development Department: Another crucial organizational function of
Tesco PLC, which helps in analysing the market and pulling out the information about
different trends that took place which helps in taking right decisions in order to grab the
competitive advantages within Retail industry.
Organisational structure: The organisational structure which has been followed by Tesco PLC
is hierarchical, which helps company in in rotating the information in a systematic way.
 Tesco Plc. Governance Structure
Illustration 1: Tesco Corporate Governance Structure, 2016
(Source: Tesco Corporate Governance Structure, 2016)
 Tesco Plc. Organizational Structure

Illustration 2: Tesco organizational structure at store level, 2016
(Source: Tesco organizational structure at store level, 2016)
Under this section the organisational functions of Tesco are elaborated along with their
interrelationship with one another (Chaouk, Pagliari and Moxon, 2020).
 Sales and Marketing department- Sales department of Tesco is considered as one of
the most important and essential operational unit because the nature of the business entity
is of retail running in a competitive environment. Therefore revenue generation is one of
the biggest objective of the company and which is fulfilled by sales department of Tesco.
Marketing department of Tesco is responsible for several tasks from conducting a market
research to building a good brand image of the company in market places to conducting
appropriate promotional actions for Tesco. both sales and marketing department of Tesco
and their tasks are interlinked because according to the market research conducted by
marketing unit and strategic and plans and promotional actions taken by them the sales
department and sales individuals develop there sales strategy. It is important that both the
departmental units are effectively communicating with one another and integrating the
task for bringing a alliance in between there external communication with customers.
 Human resource and Marketing department- The Human resource Department of
Tesco a vital role in the organisation with the most appropriate and talented workforce

also by fulfilling the manpower needs of company. Human resource Department
undertakes recruitment and selection activities on behalf of Tesco for bringing the best
experts and developing appropriate operational teams. Marketing and Human resource
Departments tasks are interlinked as the HRM unit will bring the most export marketing
individual for the company. therefore it is very important that both the department in
units are communicating with one another and fulfilling each others requirements so that
the best people can be attracted and employed by Tesco.
TASK 3
P4. Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.
Micro environment refers to the external business environment of an organisation which
influences and impacts several activities and decisions of company. Therefore, PESTEL analysis
tool is utilised for Tesco to understand all the external factors that are influencing business and
operations. PESTEL analysis have six elements which are considered as the key drivers of
change leading to respective threats and opportunities available in front of the business existing
in the external business environment. Political- Tesco is a supermarket Store in Retail industry holding its headquarters in
United kingdoms but operates through more than 12 to 15 other countries leave it
exposed to many political elements that can affect the operations and objectives of Tesco.
The European union referendum is causing a huge risk for Tesco in relation with the
investors and that is imposing a negative impacts on the business. Also currently the UK's
political environment is unstable that also imposes a threat and negative impact causing
huge political issues which are rising constantly (Chattopadhyay and Bhawsar, 2017).
o Positive: Rather than focusing on United Kingdom’s market, Tesco PLC may
effectively take into consideration of different growing markets where it can
expand its business which would be really very helpful from going through the
impact of Brexit.
o Negative: The negative impact that came in front due to Brexit was that the
market become open which was considered to be the Primal chance for many

foreign business organisations to start performing within United Kingdom which
can be taken as a threat for Tesco PLC. Economic- Currently in United Kingdom there are two specific factors that are
negatively impacting the economy which is initialisation of BREXIT deal and outbreak
of covid-19 due to coronavirus. It implies that domestic businesses of United Kingdom
are severely affected because of the two significant reasons and therefore Tesco is also
being negatively impacted due to this economic issues. The economy of United Kingdom
is becoming unstable and unpredictable which is causing a threat on Tesco and its
operation specifically on profitability and revenue standards of the entity.
o Positive: Specifically, outbreak of novel coronavirus also brought ample number
of opportunities for Tesco where it can spread its business through online
platforms which will not only help company in getting attention of new customers
but it will also help existing customers to be loyal.
o Negative: Many of the supermarket in United Kingdom and different stores were
kept close due to outbreak of pandemic COVID-19, which impacted negatively on
productivity and profitability of Tesco PLC. Social- The social environment around the globe and more prominently in United
Kingdom is unstable and unpredictable because of the regular dynamic changes taking
place in customer trends and in overall business operations. Therefore it is not easy to
analyse the impact of social factors on Tesco. But the people of United Kingdom are
considered as loyal customers and which is a beneficial element of social external
environment which is causing a positive impact on Tesco in such conditions as well.
o Positive: Organic products are offered by Tesco PLC within its super market
which can be considered as a positive impact on brand image of the company in
front of the society and its potential customers.
o Negative: Due to greenwashing act, Tesco PLC might go through different range
of problems and can shift the interest of of loyal customers towards the other
business organisations that are offering the same sort of alternative products just
like Tesco PLC. Technological- The super store Tesco is an organisation that always keeps up with the
regular updates and changes taking place in the technological market. Tesco always

moves towards bringing innovative changes in the organisation by influencing the
technological factors and making them a competitive advantage of the company.
Therefore, technology is one of the positive external factor that is being imposed on a
Tesco. Marketing department of Tesco is one of the most appropriate unit which is being
benefited with involvement of technologies as it provided them an appropriate
opportunity for conducting marketing activities in very small amount and resources.
o Positive: Technology has held Tesco PLC in in performing financial transactions
in much more easier way through electronic fund transfer and so on.
o Negative: Due to price and Technology, cyber bullying and cyber threat has also
increased which might impact upon company's image in front of the whole market
and its potential customers as well. Legal- The legal factor is related with political element fixing over the areas where law is
changed and which can change the business performance and its objectives. Complete the
legal structure and code of conduct of United Kingdom is not stable as political parties
and governments are not stable as well and this is the result of BREXIT. External legal
environment of United Kingdom and the laws are regularly changing on the other hand
the new laws are becoming very difficult for companies to understand and impose
drinking more complexities and difficulties along with use uncertainty in results for
Tesco (Fernandes, 2017).
o Positive: This primal benefit is that following the code of conduct of United
Kingdom and of other countries, Tesco PLC can easily perform its operations in
an ethical way which will put positive impact on its brand image at International
or National level.
o Negative: Any sort of misconduct like breaching of any rule or code of conduct
may directly impact negatively on company’s brand image. Environmental- The last and the most recent external environmental tractor which is
been identified and enquired is environment. This element focus is over contribution
Tesco is making keeping the environment clean and returning a little bit to the society
from which company are using several resources. Tesco is an organisation which is
committed enough towards renewable resources and means of operations keeping the

business activities sustainable. The four environmental factor has positive impact on the
performance and operations of Tesco.
o Positive: Developing policy like proper utilisation of recycled products and bring
customers with recycled carry bags would not only build up the trust of customers
but it will also positively impact on natural environment and save it for the next
generations.
o Negative: Following all the policies in relation to renewable resources are directly
impacting upon Tesco PLC's profit margins.
TASK 4
P5. Conduct internal and external analysis of specific organisations in order to identify strengths
and weaknesses
SWOT ANALYSIS OF TESCO:
STRENGTHS
 The strength of which is considered according to current market situation is its leading
market share of more than 28%. Tesco is one of the biggest grocery retailers in the

United Kingdom standing on the fourth position in the world by comparing with its
revenue and sales units (Guo-rong, 2018).
 Tesco also horse riding position in the world as it have tag of the leading supermarket the
highest market share. The company have this leading market share because of its large
presence it around 6800 stores around the globe present in all separate regions in several
market’s. In Asia as well the company has a huge market share and geographical
diversification
WEAKNESSES
 Failure in the United States and Japanese market is one of the most influential and
potential weakness of Tesco. The company faced huge losses and a lot of wastage of
resources because of the failure of American and Japanese market stores. In recent years
Tesco expanded its business operations to US and Japan but now these stores are shut
down as a company was not able to export their operations and execute their plans
effectively in international waters.
 Another very potential weakness of Tesco which created sample of problems for the
company is its sudden change in club card made in 2018. The customers of Tesco are
very unhappy and angry with the entity which is not at all beneficial for a retail
organisation dealing in aggressively competitive market.
OPPORTUNITIES
 According to the current scenario and situation of United Kingdom on the world
economy the most beneficial and potential opportunity that is available in front of Tesco
is alliance building butter relation with other brands in international market places.
Discuss the policy of moving and expanding into International borders by pairing with
other branch and currently it is the most potential opportunity available in front of it.
 Another opportunity that is created by technological advancement and advanced devices
so Tesco is of online shopping stores and websites. Nowadays people are more attracted
towards online shopping and there comfort. This is why it is one of the most potential
opportunity for Tesco allowing it to competitive edge by strengthening it and making it as
the best potential factor for the company.
THREATS

 BREXIT deal initiated recently there British exit from the European union holding
serious repercussions and issues for businesses in United Kingdom which includes Tesco.
This is the main threat that exist in the business environment of Tesco as the company
have to look over all the different business laws and practices developed by European
union and British government (Hamilton and Webster, 2018).
 One more threat that exists in the business environment and which is affecting the
economy of United Kingdom and the world is outbreak of coronavirus. Due to COVID19
disease the whole world is under lockdown which has impacted the economy and
businesses the most belonging to every different sector and industry. Tesco is part of
retail sector holding moderate amount of threat due to it but still it is a thread which has
a long-term effects on the businesses and on Tesco as well.
MORRISON'S SWOT ANALYSIS:
STRENGTHS
 Dispersion and Reach: Morrison’s has an enormous number of outlets in pretty much
every state, upheld by a solid circulation arrange that ensures that its items are accessible
effectively to countless clients in a convenient way.
 Cost Structure: Morrison’s' minimal effort structure causes it produce with ease and sell
its items at a low value, making it moderate for its clients.
WEAKNESSES
 Innovative work: Even however Morrison’s is spending more than the normal innovative
work consumption inside the business, it is spending path not exactly a couple of players
inside the business that have had a huge favourable position because of their inventive
items.
 High Day Sales Inventory: The time it takes for items to be bought and sold are higher
than the business normal, implying that develops on stock adding pointless expenses to
the business.
OPPORTUNITIES
 Web: there has been an expansion in the quantity of web clients everywhere throughout
the world. This implies there is an open door for to grow their essence on the web; by
utilizing the web to connect with its clients.

 Web based business: There has been another pattern and a development in deals of the
internet business industry. This implies many individuals are currently making buys on
the web. Morrisons can procure income by opening on the web stores and making deals
through these.
THREATS
 Mechanical improvements by contenders; New innovative advancements by a couple of
contenders inside the business represent a danger to as client pulled in to this new
innovation can be lost to contenders, diminishing Morrison’s' general piece of the overall
industry.
 Providers: The dealing intensity of providers has expanded throughout the years with the
diminishing in the quantity of providers. This implies the expenses of sources of info
could increment for Morrison’s.
P6, Explain how strengths and weaknesses interrelate with external macro factors
Basis Political Economical Social
Strength The top level
management and
leaders of Tesco.
follows all the
regulations and laws
while carrying out
specific tasks in a
smooth and proper
manner.
The company pay fair
wages to ermployees
and change according
to the changing
environment and
economical conditions
which ensures its
growth and success.
Tesco offers products
and service according
to the markety trends
and social needs.
Weakness Chaing laws and
policies due to
BREXIT is imposing a
weakening impact
over Tesco.
The economic
conditions of UK
negatively affect on
overall performance of
Tesco.
Due to frequent
changes in economy
Trends in market and
socio-economic
environment is
regularly changing and
affecting the firm's
stablity.

synergy is affected.
Basis Technological Environmental Legal
Strength By the support and
assistance of
technology, Tesco is
inducing its product
quality and its
productivity.
The company is
moving its operations
over eco-friendly
means with reducing
its carbon foot print.
Laws and regulations
are followed properly
and measures are taken
accordingly.
Weakness The operations and
employee are entirely
dependent upon
technology which is a
negative factor for
Tesco.
The managers of
Tesco Plc. is facing
problems in
integrating
environmental laws
and practices with
their respective
functions and
decisions.
Laws are frequently
changing and creating
inbalance in the
function of Tesco and
causing number of
problems in smooth
functioning.
CONCLUSION
The above report acknowledges and highlights about the business external and internal
environment concluding that it is very essential and necessary for or a business organisation to
evaluate its business environment. It is a mixture of internal and external factors which are
influencing and effect in the company’s decision making and operational performance. Therefore
the first part of the report different types of businesses that exist in the marketplace are discussed
such as sole proprietors, partnership and corporations. These businesses have different sizes and
scope according to their legal structure and objectives such as public, private and voluntary
organisations. The next part of the report is covering the external and internal environmental
analysis of the super store. Also at the end TWOS model is applied for understanding the
interrelationship and integration between internal and external environmental factors and their
impact on business.

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and-scope-of-organisations//>
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%20Analysis%202019&text=During%20a%20SWOT%20Analysis
%20the,effectiveness%20of%20a%20corporate%20plan./>