Types and Purposes of Organisations

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............................................................................................................................................7
P3. Explain the relationship between different organisational functions and how they link to
organisational objectives and structure........................................................................................7
TASK 3............................................................................................................................................8
P4. Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples................................................................................8
TASK 4..........................................................................................................................................10
P5. Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses..........................................................................................................10
P6, Explain how strengths and weaknesses interrelate with external macro factors.................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

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