Business and Business Environment: Types and Purposes of Organisations, Organisational Functions and Objectives

Business and the
Business Environment
1

Table of Contents
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
P2 Explain the size and scope of a range of different types of organisations........................7
LO 2.................................................................................................................................................9
P3 Relationship between different organisational functions and the way they link themselves
to organisational objectives and structure..............................................................................9
LO 3...............................................................................................................................................11
P4 Positive and negative impacts of the macro environment on business operations with
examples...............................................................................................................................11
P5. Evaluate the internal capabilities and factors of micro environment that affect business
and its performance..............................................................................................................12
P6 Interrelation of strengths and weaknesses with external macro factors..........................14
CONCLUSION..............................................................................................................................15
REFRENCES.................................................................................................................................16
2

INTRODUCTION
Business environment is defined as aspects associated with surroundings of business
enterprise that affects and influences its operations as well as effectiveness. This is known as
aggregate of all events and conditions that affects business operations. This encompasses of
different factors which affects operations of company as well as its customers, stakeholders,
competitors, regulations and other governmental activities. business environment is dynamic and
that is why companies have to improve technical as well as operational capabilities on regular
basis (Agwu, 2018). This is important for organisations to analyse internal as well as external
environment before running operations within market. The companies considered in this report
for private, public and voluntary sector are Tesco, NHS and OXFAM. This report will provide
explanation about scope, size, legal structure, purpose, types, vision and other factors of private,
public and voluntary sector. Moreover, there is also discussion about external analysis such as
PESTEL and SWOT.
TASK 1
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures.
Within a business environment, there are three types of organisations - private, public and
voluntary sectors. The explanation about company’s scope, size, mission and vision are
mentioned below -
Private sector organisations
Private sector is known as organisation that is owned by individuals and not
governmental bodies. These organisations operate within market for increasing profit and sales.
one of the example of private sector organisation is TESCO.
 Background details of organisation- Tesco was founded by Jack Cohen in the year
1919. This is a private sector organisation which conducts operations in retail sector
internationally. Tesco provides services to people through supermarkets, super stores,
hypermarket and convenience shop.
 Products and Service- This company is offering products and services like daily utility
products, groceries, bank, magazine, clothing, etc.
3

 Vision- The vision of this company is to increase value of products and services and
provide high quality products to consumers. They also want to increase customer loyalty
and enhance number of potential customers.
 Mission- To mission is to develop value for customers in order to earn lifetime loyalty
from potential customers.
 Types-
◦ Sole Proprietorship: It refers to the organisations that are run by individuals for
earning profits. It is known as oldest form of private sector organisation and there are
very less restrictions while running these organisations. The example of sole
proprietorship includes Carpenter, Local Grocery store, Tailor, etc.
 Partnership- This is known as agreement that exists between two or more individuals for
running a private business (Aker, 2019). In context of partnership business, profit and
loss has to be beard by both the partners. Generally, the agreement depends upon shares,
authorised capital, ownership and profits.
 Joint Stock Companies- There are limited financial resources in joint stock companies.
This consist of heavy load of risk for owners. There are different values for companies
which are operating in joint stock. Board of Director, CEO, Shareholders are main
operating partners of joint stock companies.
 Purpose- The main purpose of Tesco is to become one of the biggest retailing
organisation across the world. This provides high quality products and services to
customers.
 Legal Structure- Corporate governance is the legal structure used in Tesco. This
company uses the strategy which helps to satisfy demands of all stakeholders.
Public sector
Public sector organisations are those which are ruled by governmental authorities. These
are an essential part of economy (Ali, 2019). These include industry of public sector consisting
of school, electricity, emergency service, fire services, gas, healthcare and many more. An
example of public sector organisation is NHS.
 Background details of organisation- NHS is a public sector organisation of UK that
provides health care facilities to people at low charge. There are four operating systems
4