Report on Private and Public Sector : NHS and Oxfam

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 & P2: Various types and purpose of organization and their size and scope..........................1
P3: Interrelationship between different organizational functions...............................................2
P4: Impact of macro environment on business functions...........................................................3
P5 & P6 SWOT analysis of Tesco and relation of strength and weakness with external macro
factors..........................................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment refers to the internal and external factors that are considered by the
organisation for the successful strategic planning and management.. Internal factors includes
employees, business regulations demand, management and others whereas external factors are
customers, supply, environment, government policies etc. Tesco is a UK private sector
organisation which is a multinational grocery and general merchandise retailer offering large
product range to its customer. It The report discusses about NHS which is a public sector
organisation and Oxfam, which is a voluntary organisation working for the welfare of the
society. The report also discusses about private sector and public sector organizations. The report
focuses on interrelationship between different organisational functions performed by Tesco,
NHS and Oxfam. It also ponders on impact of macro environment on business operations of
Tesco. Moreover, PESTLE analysis is conducted for Tesco considering all the external
environment factors. Furthermore, SWOT analysis has also been carried out to assess the
strength, weakness, opportunities and threats of the company.
P1 & P2: Various types and purpose of organization and their size and scope
An organization is a group of people who join their hands to meet a specific goal. The
organization possesses a specific structure, based on which the activities and functionality is
defined (Adeoye and Elegunde, 2012). Various roles and responsibilities are distributed among
the members to pursue the organizational goals.
There are various types of organization such as:
 Public sector: Public sector organizations are owned and operated by government. These
are not formed to generate profit but to provide facilities to the citizens at minimum
possible rates. Various methods such as issue of shares are used to raise funds for these
types of organizations such as, taxes, fees, financial transfers from other level of
government (Bastian and Muchlish, 2012). Sometimes, public sector organizations join
hands with private organizations and create public-private partnership in order to deliver
services or business venture to the society. Public sector organizations are basically
related to education, electricity, emergency services, infrastructure, hospitals, public
transit etc. NHS is a public organization in UK which is involved in provided healthcare
services to promote healthy living.
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 Private sector: They are owned by private individuals or groups. The sole reason is to
generate and maximize profits. Business units are established to fulfil the demand of
products and services in the market. These types of establishments are not controlled by
the state or any government authority. They also join hands with public sector
organisation and deliver services jointly for a specific period or forever. Private sector
companies can be sole propitiatory, partnership, SMEs, large multinational corporations,
trade association etc. In most of the developed countries, private sector companies
contribute the most towards GDP of the country. Tesco has been a large multinational
private sector organisation, functioning in UK which is a grocery and general
merchandise retailer.
 Voluntary sector: Voluntary sector consists of the organisations whose motive is to
benefit the society. These organisations come into existence not with the motive to
generate profits but to do well for the country. The return of profits earned by the
organization is usually invested back by the organization or to the community. The
examples of voluntary sector include Charities, foundations, social welfare organizations,
faith based organizations, recreational groups. This sector contributes very less towards
GDP of the country due to its non profit motive. Oxfam is a renowned charitable
voluntary organization who focuses on to remove poverty from the world.
P3: Interrelationship between different organizational functions
An organisation has to perform various functions for the smooth functioning of the
organization. Tesco, NHS and Oxfam has been involved in different business activities and
therefore have to conduct different functions. Some of them are mentioned below:
Tesco: Being a private sector organisation, the company has to perform various functions
 Tesco: Being a private sector organization, the company has to perform various functions
such as marketing, human resource, accounting and finance, research and development.
Every function contributes to business objective in its own manner. Marketing
department helps to ascertain the demand of customer and make sure that what is
required is produced by the company. It also assures to promote Tesco in an appropriate
manner so that company can maximize its profits. Finance department make sure that the
company possess adequate finance to conduct activities of the business. Also, it takes
care of profits and losses of the company. Human resource helps to recruit right kind of
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