(PDF) Types And Purposes Of Organisations Assignment

BUSINESS AND
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
P 1 Explain different types and purposes of organisations; public, private and voluntary
sectors and legal structures.....................................................................................................3
P2 Explain size and scope for different types of organisation...............................................5
TASK 2............................................................................................................................................6
P3 Explain the relationship between Different organisational functions and how they link to
organisational objective and structure....................................................................................6
TASK3.............................................................................................................................................7
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples. .........................................................................7
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses. ...................................................................................................10
TASK 4..........................................................................................................................................11
P6 Explain how strengths and weaknesses interrelate with external macro factors.............11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment is the sum of all the external and internal forces that affect the
operation of business. There are various type of organisation such as public, private or voluntary
organisation which has their own legal structure. The private company chosen for this report is
Sainsbury which is a parent company of Sainsbury's supermarket Ltd. The public company
chosen for this report is NHS which was established in 1948. The voluntary organisation chosen
for the company is Oxfam which is a charitable organisation focused on reducing poverty. This
report will cover different type of organisation and their size and scope. It will also show
interrelationship of various functions within an organisation and demonstrate about positive and
negative impact of macro environment through PESTLE analysis and determine strengths and
weakness of specific business through SWOT and its relation with external macro factors.
TASK1
P 1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures.
There are various type of organisations exists which work to achieve their goals and
objectives. The legal structure of various organisation are as follows-
Public organisation- This sector is owned and operated by government and provide
services to citizens of country. The funding for public organisation are arranged by taxes, fees
and through financial transfer or from other government. NHS is a organisational unit which is
not a trust in legal sense but through the effect of government (Baycheva-Merger and
Wolfslehner, 2016). They follow the principles which states that services are provided
comprehensive, universal and free at the point of delivery. Each services is providing a
comprehensive range of services which is free for the people ordinary resident in the United
Kingdom apart from the dental treatment.
Legal Structure-
 Local government- The rules and regulation which are formed by local government
for the people living in the particular region.
 State government- The rules and regulation which are formulated by state
government for the people living in state to provide better services.

 Central Government- The rules and regulation which are formulated by central
government for the broad region which is country.
Private organisation- This sector is owned and operated by a private body which can be
sole trader, partnership or company. The purpose of private sector is to This is a major non
profit group of organisation with high collection of operations. The purpose of voluntary sector
is to provide a sustainable livelihood and provide work for injustice through local accountable
organisations enabling to increase their effectiveness to earn money and attain growth and
development. Sainsbury's is the chain of supermarkets with huge share in supermarket sector.
The purpose of private organisation is to attain highest market share of supermarkets in united
kingdom. The legal structure of private organisation depends upon the type of private body
which are-
 Sole trader- This type of organisation is owned and operated by a one person. This is the
simplest form of business under one can operate their business. The sole trader is not
different from the business entity legally. The one person is solely responsible for the
business profit and debts. This entity do not offer protection for personal assets which
creates a legal obligation in case of not able to meet debt. For example, Social chain
which is formed by two persons (Bysted and Hansen, 2015).
 Partnership- This type of organisation is owned and operated by two or more person.
This the complex form of business as it includes debt on whole organisation taken by one
partner. The profit and loss are distributed equally or equal to their capital invested
depends upon the legal compliance. For example, Wettone Matthews Ltd is a partnership
consultancy firm.
 Small and Medium Enterprise- A small enterprises is an enterprise whose investment
in plant and machinery is more then 25 millions but do not exceeds 5 billion whereas
medium enterprise is an enterprise whose investment is between 5 billion to 10 billion.
For example- John good shipping which is an independently owned logistic company.
Voluntary Organisation- This sector include voluntary association or nongovernment
organisation which are independent, flexible, democratic who work for welfare of the society.
Oxfam is a charitable organisation established in 1942. This is a major non profit group of
organisation with high collection of operations. The purpose of voluntary sector is to provide a