Different Types and Purposes of Organisations

This article explains the different types and purposes of organisations in the public, private, and voluntary sectors. It discusses the size and scope of these organisations and the relationship between different organisational functions. It also identifies the positive and negative impacts of the macro environment on business operations, using specific examples. The subject is Business & the Business Environment, and the document type is an essay.

Business & the
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures.................................................................................................................1
P2 Explain the size and scope of a range of different types of organisations........................4
TASK 2............................................................................................................................................5
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure..................................................................................5
TASK 3............................................................................................................................................7
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples...........................................................................7
TASK 4............................................................................................................................................9
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses.......................................................................................................9
P6 Explain how strengths and weaknesses interrelate with external macro factors...............9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business is regarded as the practices that concentrates upon generating capital by
producing product or services to audiences. Likewise, business environment is referred as the set
of components which closely involved with practices of entities. These factors has an external or
internal influences over firm's performance, development and outcomes (Bargiela-Chiappini,
Nickerson and Planken, 2013). This report is based upon North West London chamber of
commerce that aids firms to become more successful. So, the undertaken organisation for this
report is TESCO. It is renowned retailer which operates worldwide having headquarters is in
England, UK. This report covers many kinds of organisation, its size, scope, objective and
others, relationship among different organisational functions, positive and negative affects of
macro atmosphere and swot analysis. Moreover, interrelation among strengths and weaknesses
with external macro environment are also discussed in this report.
TASK1
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures
The different kinds of organisation: public, private and voluntary are described
underneath:
Public organisation
Public sector organization can be defined as organizations that are formed due to an act
that is passed by the government with a viewpoint of maximizing welfare of the public (Boons
and et. al., 2013). Background Details: National Health Service (NHS) is a public organization in UK that
is funded by the government. Products and Services: Its provides medical and health care services to the public there
with no restriction to pay the full cost. Vision : NHS visions to create an environment allows innovation to improve the health
and welfare of the public in the best way possible. Mission : NHS aims to advise people regarding the basic standards of care, improvement
of the whole system and eventually achieve leadership at the clinical level.
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 Objectives : The company's main objectives is to provide the most elevated standards of
care that are not only safe but also focussed and effective. Types:
◦ Public corporation: This is referred as the corporation that is develop through the
special act of parliaments, state and central.
◦ Government association: It is regarded as the entities where paid up capital is approx
51 % and is possessed through state or central or partly by both of them. All practices
are performed after taking the permission of government. Purpose : The company is focussed on providing the best health care services to the
public through the use of limited resources that are available. The funds that the company
receives from the public are completely put to use for the public. Legal structure : The legal structure of the firm controls how doctors and clinicians are
hired, various ways through which patients can be introduced to treatments and the flow
of funds in the organization.
 Stakeholders : Stakeholders of NHS are various clinical commissioners, national health
service providers, royal colleges, professional groups like the British Medical
Association, the Association of Directors of Adult Social Services etc.
Private Organisation
Private organisation is regarded as an individuals agency as well as corporation that is not
governed through the public body with the intent of generating profitability (Clarke, Li and Xu,
2016). Background Details: TESCO is regarded as the private entities which deals into retail
industry. It have above 6569 outlets which is situated into international market as well as
serving within United Kingdom, Malaysia and others. It is known as the ninth as well as
their largest retailer in terms of gross revenues and gross. Products and Services: It renders products related to foods, clothes, accessories, groceries
and others. And services in respect of banking, mobile services etc. This also provides
home delivery services for clients in order to facilitates them comfortability. Objectives: The TESCO's objectives is to render clothing, groceries and electronics
products as well as online.
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 Vision: The TESCO's vision is to develop creative ideas, acquiring opportunities,
applying skills at international level, accomplishing requirements and obtaining loyalty,
goodwill and faith from audiences. Mission: Its mission is to make entities better as well as rendering what it want in
efficacious way. Types:
◦ Joint Stock Companies: This is regarded as entities which is developed due to limited
resources as well as heavy risk or burden (Ehret, Kashyap and Wirtz, 2013). The
managing individuals involves boards of directors, chief executives services as well
as it may be private and public limited.
◦ Sole proprietorship: This is regarded as entities which is operated through single
person, owner as well as sharing profitability and risk among themselves. It involves
carpenter, tailor and many more. Purpose: The main purpose of TESCO is to serve audiences or shoppers every day in
effective way along with being leader for clients as well as assisting them to provide
standard quality goods as well as services. Legal Structure: The legal structure that TESCO is complying, public limited which
involves huge number of individual who are working in it.
 Stakeholders: The main stakeholders of TESCO are suppliers, clients, local communities,
creditors, government and others.
Voluntary Organisation
It is regarded as group of person who enter within agreement like volunteers for
developing body for attainment of objectives (Frösén and et. al., 2016). Background Details: Oxfam is referred as charitable entities established in year 1942 that
concentrate upon obviating disaster relief, poverty and others. They concentrates upon
resources such economical justice, crucial services, gender justice and many more. Products and Services: It serves services like render home to disaster individuals as well
as redeveloping and saving lives in respect of crisis. Objectives: Its objectives is to provide assistance to individuals, save lives, protect global
food suppliers as well as enhancing funds for primary services.
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 Vision: The vision of Oxfam is developing the world poverty free as well as treat fairly to
all the persons. Mission: The Oxfam mission is to assists in creating solution for poverty injustice. Types:
◦ Unincorporated Association: This is developed with assistance of agreement in
which group of individuals comes together instead of profit gaining. The explanation
are involved into agreement which have to be comply through each members.
◦ Trust: This is developed for performing fiduciary of agencies as well as trust. It is
owned through 1 among 3 kinds such as bank, independent partnership as well as law
entities. It involves trustee as well as advantageous to handle several practices as well
as operations (Hair, Page and Brunsveld, 2019). Purpose: The purpose of Oxfam is to aids as well as develops long lasting solutions to
poverty injustice. Legal Structure: The legal structure of Oxfam used Unincorporated association in which
agreement is developed among staff. It perform upon public instead of gaining
profitability.
 Stakeholders: The stakeholders of Oxfam are suppliers, people, customers, government
and many more.
P2 Explain the size and scope of a range of different types of organisations.
The size as well as scope of several kinds of organisations are described underneath:
Public organisation:
Size: The National Health Services concentrates upon facilitating medical as well as
health care services to individuals. Moreover, it is huge in size that gives free services to the
residents of United Kingdom who can not able to afford it.
Scope: The scope of National Heath Service is to aids about 64.6 as well as 54.3 million
person into United Kingdom. They targeted to deals with around one million patients in each 36
hours which involves emergency services, antenatal screening, treatments, end life care and
many more.
Private organisation:
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Size: Within TESCO above 460, 000 staff are performing as well as they have several
subsidiaries such as booker group, bank, stores ltd. And others. For maximisation of profitability
as well as market share, they have to expand its entities in worldwide marketplaces.
Scope: The TESCO practices is referred as primary components of plan of action. Its
main scope is to enter into that marketplaces in which they may sale its goods and services in
profitable way. Being huge market retailer at United Kingdom plan to explore within U.S. so that
it can gain more profitability.
Voluntary organisation:
Size: Oxfam is small entities which aids UK residents through obviating advocacy, pro-
migration, poverty, relief from disaster and others. They have around 20 independent charitable
firms that perform to make the nation poverty free.
Scope: Oxfam is spreading its services in another portion of world. It performs with
partner entities as well as try to vulnerable female and male to end wrongful conduct or injustice
that cause poverty (Janita and Chong, 2013). It also perform to enhance poor individuals voice
for influencing regional and global decisions that impact them a lot.
TASK 2
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.
The enterprises doing its practices at market area have to maintain relation with several
departments for optimistic results. This is not possible for a single organisational function to
perform operations appropriately (Laudon and Traver, 2016). Each department required to
perform collectively for optimistic outcomes. The relation of various division as well as its
relation to objectives and structure described underneath:
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 Marketing with R&D: Both these department have to perform task collectively.
Marketing develop data that aids research & development manager to create effective
research to accomplish optimistic results. TESCO' s marketing manager perform market
search for its goods as well as inform to manager of R&D. So, they perform investigation
as well as opt effective technology for production according to clients requirements
properly. Also, in case decision are already made then it has to so changes in efficacious
way.
 Marketing with finance: Finance section is answerable to manage organisational funds
that is conducted through respective manager. It has to conduct several practices and task
such as budgeting, funds allocation and others to all divisions (Lee and et. al., 2015).
Marketing section have to examine and assess cost and market needs to perform
advertisement, promotion etc. thus, bot have to work together to do appropriate allocation
of funds. The respective organisation possess both functions in its enterprise to so its
activities efficaciously. Such as, in case marketing manager required capital to do
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Illustration 1: TESCO organisational structure
(Source: TESCO organisational structure. 2018)

promotion then it has to approach to finance and represent its budget then consequently
fund is provided to perform practices.
TASK 3
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.
This is vital for entities to examine macro factors for operating enterprises efficaciously.
Macro environment is referred as situation that exists within economy as whole instead of
particular industry. So, for identifying the positive and negative impacts TESCO use PESTEL
analysis that are described underneath:
Political factors: It is regarded as factor that find what as well as how government
intervenes within country' s economy. With Brexit, TESCO have to goes through several
problems as there is raise into cost of food that have enhanced in year 2016 as well as devalued
sterling of pound. Moreover, imports of food have become more costly for retailers. Positive impact: Brexit have enhanced cost which drives towards gaining higher
profitability from deflation of pre Brexit to post inflation of it.
 Negative Impact: This drives towards enhancing cost for food importing from another
country that is expensive for undertaken organisation.
Economic factors: This ascertain economic performance as well as firm which are
assessed in respect of economic development customers incomes and others. Brexit have affects
upon TESCO's rate of economic growth because of various factors. Positive impact: Because of presence into internal market as well as diversification drives
towards respective organisation success at competitive market that aids them to enhance
market share by 27.7% into market of UK grocery.
 Negative impact: The Brexit leads to reduce the spending of customers sue to various
factors that drives towards declining TESCO'S profitability.
Social Factors: This involves values, norms and others in which entities operates its
business functions effectually. It consists health condition, income distribution and many more.
The changes into individuals lifestyle drives towards modification in its purchasing power which
affects TESCO's profitability.
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 Positive impact: TESCO may bring technology as well as accomplishing the
requirements of audiences properly in order to gain higher profitability.
 Negative impact: In case respective firm fails in accomplishing changing audiences needs
they have to face difficulties for surviving in that market.
Technological factors: This is referred as factor that shows innovation into technology
that effects industry's operation as well as develop market conditions either favourable or
unfavourable (Majava, Isoherranen and Kess, 2013). This involves automation, innovation an
others. Undertaken organisation have adapted technology in its entities that makes customers
buying easier. Positive impact: Undertaken organisation comply technology into enterprise that involves
quicker delivery to reach at final audiences that leads towards raising their brand value
and goodwill.
 Negative impact: Because of lack of advance technology adoption into business have
affected TESCO sales at market area that reduces business sales and profitability as well.
Environmental factors: This factor is vital due to raise into scarcity of carbon footprints,
raw material and others. It involves weather, changes in climate and others. Positive impact: Respective organisation have inspire its users to shop at websites
tesco.com in which drivers will do not has to utilise fuel saving routes as it helps in
accumulating unwanted plastic bags from audiences and recycle it.
 Negative impact: At present times, undertaken organisation is facing demand for zero
waste super market as wastage of food that is enhancing and affecting retail industry. As
they have not adapted such environmental care in its entities.
Legal factors: For operating entities, legal laws like patent, copyright and other have to
be comply into its operations. The modification in such legislation impact TESCO's performance
for attainment of goals. Positive impact: The optimistic effect is that undertaken organisation perform its
practices as per Food retailing Commission (FRC) that is strict code of practices.
 Negative impact: The TESCO have faced dishonest investor as well as problems of
accounting frauds in which it has to pay GBP 12 million for settling down legal actions
(PESTLE Analysis of Tesco, 2019).
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TASK 4
P5 Conduct internal and external analysis of specific organisations in order to identify strengths
and weaknesses.
For identifying the strengths and weaknesses of entities, this is so much vital for them to
perform SWOT analysis. This is regarded as business structure which drives to examine as well
as find external and internal aspects which affects project, operations and goods (Schaltegger and
Burritt, 2017). So, TESCO's SWOT analysis are described underneath:
Strengths Weaknesses
The largest Grocery within United Kingdom:
Undertaken company is considered as the
growing grocery retailer into UK. This is the
higher gaining revenue firm in compare to
another. In year 2018, cost of operation raise up-
to 28%.
Its operations failed within U.S. And
Japan: In year 2012, TESCO was exit from
U.S and Japan market. They have failed into
operations which forced them to closed
outlets after 9 years in Japan as well as after
5 year.
Opportunities Threats
Online shopping: The selected organisation have
an opportunity for upgrading and developing
business related to online shopping as well as
home delivery services. It drives towards raising
profitability and development of business
effectively.
Competition: The essential threat that
respective organisation is facing,
development and performance of its rivals
like ALDI, Walmart and others (TESCO
SWOT Analysis 2019 | SWOT analysis of
TESCO, 2019).
P6 Explain how strengths and weaknesses interrelate with external macro factors.
This is vital to examine strength and weakness that are associated with external
surroundings efficaciously (Valencia, Person and Snelders, 2013). The above explained external
factors have strengths as well as weaknesses of TESCO that are described underneath:
External Macro Factors Interrelation
Political Factors Strengths: Enhancement into profitability margins.
Weaknesses: Food exportation price enhances as well as food
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items become costly for entities.
Economic Factors Strengths: Strategies drives towards business growth along with
raise into market share.
Weaknesses: Reduces the buying power of customers because of
Brexit.
Social Factors Strengths: Meeting the demands and needs of customers.
Weaknesses: Fails to meet targets that leads towards reduction into
profitability.
Technological Factors Strengths: Automated as well as fastest services in respect of
delivery.
Weaknesses: Failure in technology adoption minimises
profitability.
Environmental Factors Strengths: Shopping done by tesco.com saves the environment.
Weaknesses: Zero wastage demand affects enterprises.
Legal Factors Strengths: Complying legal laws and legislation within
organisation.
Weaknesses: Misconduct practices minimises goodwill as well as
brand value.
CONCLUSION
As per the above presented report, it have been concluded that it is vital for business
person to analyse the business environment. Public, private and voluntary are some kinds of
organisation whose legal structure, objective, scope are different from one another. Moreover,
various department of firm are interrelated with one another that provides positive results.
SWOT and PESTEL are performed to get knowledge regarding optimistic and pessimistic
impacts so that it can leads towards development. The strengths and weaknesses are interrelated
with macro atmosphere that aids firm to survive at competitive market.
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REFERENCES
Books and journal
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Clarke, G., Li, Y. and Xu, L. C., 2016. Business environment, economic agglomeration and job
creation around the world. Applied Economics. 48(33). pp.3088-3103.
Ehret, M., Kashyap, V. and Wirtz, J., 2013. Business models: Impact on business markets and
opportunities for marketing research. Industrial Marketing Management. 42(5). pp.649-
655.
Frösén, J. and et. al., 2016. Effective forms of market orientation across the business cycle: A
longitudinal analysis of business-to-business firms. Industrial Marketing
Management. 52. pp.91-99.
Hair Jr, J. F., Page, M. and Brunsveld, N., 2019. Essentials of business research methods.
Routledge.
Janita, I. and Chong, W. K., 2013. Barriers of b2b e-business adoption in Indonesian SMEs: A
Literature Analysis. Procedia Computer Science. 17. pp.571-578.
Laudon, K. C. and Traver, C. G., 2016. E-commerce: business, technology, society.
Lee, Y. K. and et. al., 2015. Market orientation and business performance: Evidence from
franchising industry. International Journal of Hospitality Management. 44. pp.28-37.
Majava, J., Isoherranen, V. and Kess, P., 2013. Business collaboration concepts and implications
for companies. International Journal of Synergy and Research. 2(1-2).
Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues, concepts
and practice. Routledge.
Valencia, A., Person, O. and Snelders, D., 2013. An in-depth case study on the role of industrial
design in a business-to-business company. Journal of Engineering and Technology
Management. 30(4). pp.363-383.
Online
PESTLE Analysis of Tesco. 2019. [Online]. Available through:
<https://www.marketingtutor.net/tesco-pestle-analysis/>.
TESCO SWOT Analysis 2019 | SWOT analysis of TESCO. 2019. [Online]. Available through:
<https://bstrategyhub.com/tesco-swot-analysis-2019swot-analysis-of-tesco/>.
TESCO organisational structure. 2018. [Online]. Available
through:<http://www.orgcharting.com/tesco-company-organisational-structure-chart-
example/>
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