Types and Purpose of Organisation: Public, Private, and Voluntary Sectors

Business and Business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1..............................................................................................................................................1
P1 Explain the different types and purpose of organisation; public, private and voluntary
sectors and legal structures.....................................................................................................1
P2 Explain the size and scope of different types of organisations.........................................3
Task 2...............................................................................................................................................4
P3 Explain the relationship between different organisational functions and how they relate
with organisational structure and objective............................................................................4
Task 3 ............................................................................................................................................5
Covered in PPT.......................................................................................................................5
Task 4...............................................................................................................................................5
Covered in PPT.......................................................................................................................5
CONCLUSION................................................................................................................................6
References:.......................................................................................................................................7

INTRODUCTION
Business are considered as important institutions that contribute towards the development
of an economy and society. It contributed towards the economy in various aspects like, creation
of employment opportunities, providing better quality of life and supply of goods and services
Business as a part of market environment operate and run their operational activities in a
dynamic environment that has direct influence on the way they operate and whether they will
accomplish their goals. Business entities have a fully control over the internal factors like,
suppliers to choose, employee to hire etc., whereas the external factors are beyond their control
such as, economic, political, global and legal factors. On May 9, 1886 Dr. John Pemberton
served the first drink at Jacob's Pharmacy, in Atlanta, since then the Coca-Cola has taken the
shape of giant firm and one of the largest producer of carbonated soft drink. The report covers
the company's size and scope, organisational structure, and influence of macro environment on
its business.
Task 1
P1 Explain the different types and purpose of organisation; public, private and voluntary sectors
and legal structures
Business ownership can be classified majorly in three categories which are private, public
and voluntary sectors, in which business exists and operate in different organisational and legal
structures.
Private sector
These sectors of an economy constitutes a business entities which are owned, managed
and controlled by individuals with an objective is to generate profit. These companies don't have
a state ownership and control over their business operation and business decisions are taken by
individuals. Coco-Cola a giant producer of carbonated drinks in the world which is been run,
managed and owned by individual with the purpose of generating profit (Karla and Pestel, 2020).
Purpose of Private sector
The private sectors organisation contribute largely to the development of an economy as
delivering of good and services generate a national income and contribute to tax revenues (Liu
and Yang, 2019). These sectors are also responsible for providing employment opportunities to
the common masses.
1

Legal structure of Private sectors
Legal structure of business organisation's in private sectors are classified in three
categories which are mentioned beneath. Sole-proprietorship : This is the most common form of businesses as they are simple,
easy and involves a less amount of investment. It can be formed under the name of an
individual where he/ she is liable for its debts (Segal and et. al., 2019).
 Corporations : The legal structure is formed by the various shareholder who together
elect the board of directors and corporations run and exists as a legal entity. Coca-Cola is
large multinational corporations founded in a year 1892, which is a largest producer of
carbonated soft drinks.
Public Sector
Public sector undertaking business organisations are those which are owned, managed
and controlled by government and government institutions. All levels of government-controlled
and owned enterprise in an economy, apart from private and voluntary organisation, constitute a
large part of economy (Small, Yasseen and Salie, H., 2019).
Purpose of Public sector
The significant purpose of private sectors organisations is to ensure a fair and equitable
distribution of goods and government services like military, public education, police, health-care
and social needs to the each and every community of a country and to foster the economic
development and standard of living of people.
Legal structure of public sector National Organisations : The prime objective of public sectors undertaking BBC is to
work for the interest of people and meeting their needs in a best possible way by
providing information and raising awareness through media channels. Organisation at
national level has a role of central government and work for the welfare of a nation
(Tanguy-Melac and et. al., 2020).
 Local or municipal organisation :Municipal or local owned organisations are owned
and managed by municipalities rather than a state or central government. These
organisations look after various services like, water management, transport services,
housing, social affair and employment, health and education services.
Voluntary sectors
2