Explaining Types and Purposes of Organizations

This article explains the different types and purposes of organizations, including private, public, and voluntary sector organizations. It discusses the legal structures of these organizations and explores the scope and size of each type. The article also highlights the interrelationship between various organizational functions and how they are linked to the organizational structure and objectives. Additionally, it identifies the positive and negative impacts of the macro environment on business operations, using TESCO as an example.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1 .................................................................................................................................................1
P1 Explaining several type or purpose of organization; private, public and voluntary sector or
the legal structure-..................................................................................................................1
P2Explaining scope and size of various type of organization-...............................................3
LO2..................................................................................................................................................5
P3 Explaining relationship among various organizational function and how they are link to the
organizational structure and objective-..................................................................................5
LO3..................................................................................................................................................6
P4 Identifying negative and positive impact macro environment on the operation of business-
................................................................................................................................................6
LO4 .................................................................................................................................................8
P5 Conducting external and internal analysis of particular organization for identifying its
strength and weakness-...........................................................................................................8
P6 Stating strength and weakness interrelation with the external macro factor-...................9
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
Business and the business environment plays an essential role in growth and
development of any organization.
TESCO is biggest super market chain in the whole UK. It had huge market share across
the supermarket sector. The above report includes the stating several type, size and the scope of
organization. Demonstrating interrelationship of several function across the company or how
they are link to structure of organization. Report further carried froward with the demonstration
of negative and positive impacts macro environment on business operations. The report ends
with determination ODF strength and weakness of particular business and stating relationship
with macro-environment factor.
LO1
P1 Explaining several type or purpose of organization; private, public and voluntary sector or the
legal structure-
There are different type of companies that are private, public and voluntary who had the
own vision, objectives and missions. These are described below-
Private Sector Organization-
Private company is partnership, corporation, individual or agencies which is not run by
any national body. This includes all business which are for the profit which are not operated and
owned by government. For example- TESCO, Sainsbury etc.,
Purpose
The purpose of TESCO is for creating value to the consumer for earning their loyalty
lifetime. They provide huge range of goods and services from household products, grocery and
clothing etc.,
Objective
The main objective of this company is to produce new product and service and improve
the existing one. By which they can fully satisfy their consumer and gain creates a brand loyalty
among consumers (Petrescu and Petrescu-Mag, 2016).
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Type of private sector organization
Partnership:
Partnership is done when two of the individual agreed to sharer profit equally in the
business through partnership deed. Along with profit all the partner are responsible for risk as
well as profit in the business.
 Joint Stock Company:
It is kind of private sector organization which is owned jointly by shareholder. Certain
amount of stock has been purchased by these shareholders that better-known as share. This
company have separate legal entities.
Legal structure
TESCO's legal structure is that they deal with quality of the product and service. For
performing function or activity of company effectively, department that is finance, HR and some
other which can contribute for gaining goal and objective of company.
Public Sector Organization-
Public sector organization are those which are operated and owned by government body
and exist for providing services to the citizens. These are the part of economy which is
composed of public enterprise and services. For example- BBC
Purpose
The major function of BBC to offers broadcasting service to the customer around world.
They also try to satisfy their consumer and making great experiences for them.
Objective
The objective of company is to building sustainable, consistent along with profitable
business. They make surety for meeting need and demand of the shareholder.
Type of Private Sector Organization
 Government Company:
This type of organizations are wholly or partially owned by state or central government.
The main advantage of this government organization is that it can be easily constituted than the
public sector company.
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 Departmental Undertakings:
This is oldest kind of the public company that has no single entity other than
governments (Evans and et.al., 2017). Role of the departmental undertakings had whole
controlling on departments of the governments.
Legal structure
BBC's legal structure state that it render products and services world wide. The pricing of
their products are reasonable which can also be afforded by medium income group.
Voluntary Sector Organization-
These organizations are known as non-profit organization which major purpose is for
helping and serving individual by rendering them products or service rather than gaining profits.
This organizations could be NGOs, charity etc. For example- NHS England.
Purpose
The main purpose of NHS is to serve free healthcare service to the needy people. They
also try to give best services to their patient.
Objective
By better authorization, enhancing national and local outcome of the health, reducing
inequalities in health. To helping in creating safest and the high qualities of health care services
to patient.
Type of Voluntary Sector Organization
 Trustee:
These are non-profit organization where individual sold their property for third party
benefit. Trusty could be hired for various reason such as charity (Virglerová and et.al., 2017).
 Charity:
It is voluntary organization which deal for the welfare of citizen along with keeping in
concern with taste and preference. Resources which falls under charitable activity has been
controlled by these organizations.
Legal Structures
Legal structure of NHS is it is non-profit organization which is situated in England and
along with that it has multi stakeholder independent organization.
P2Explaining scope and size of various type of organization-
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Private Sector Organization-
Vision “To be the most highly valued business by: the consumer we serve, the community in
which we operate, our committed or loyal colleague or the shareholder.”
Mission “We make what matters better, together.”
Size It provides product and services across the world, and employ over 450,000
employees in their stores and shops (Abdullahi and Zainol, 2016).
Scope It is operating its business globally and also wants to expand further to various
nations.
Sector TESCO belong to the tertiary sectors.
Public Sector Organization-
Vision To casting powerful complementary brand so that they can easily reach to consumer
for maintaining their potential growth and development.
Mission To become unit leader in the luxurious marketplace at global stage along with keeping
quality of good or service.
Size It had approximately 900 workers working with company and further contributing
their effort for gaining its aim and objectives.
Scope It operates business at huge level and has their own plant of manufacturing in Italy or
Florence.
Sector Respective company belong to the secondary sectors.
Voluntary Sector Organization-
Vision To providing a social and health cares to localized individual of the England and
providing them great health service or well-being.
Mission To connecting organization and people for developing environment which enable
innovations or changes for person well-being or health.
Size It has more than 870000 staff in the organization that includes health care professional
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and nurses.
Scope It is situated in England and at various locations in United Kingdom and further
expanding to the other locations as well (Dey, 2019).
Sector This organization belong to the tertiary sector.
LO2
P3 Explaining relationship among various organizational function and how they are link to the
organizational structure and objective-
There are different department in the organization which are responsible for the
company's overall growth and development. These departments can be Finance, Human
Resource, Marketing etc., Every department has their own key functions or importance, play a
major function in the organization. Each of the department are interlinked with each other so that
company's all activities can be effectively performed. Thus, the goal and objective of company
can be efficiently fulfilled. If any one of the department is not performing better than functioning
of other department will also be affected by this. In respect of the TESCO, interrelationship with
various departments has been explained.
Marketing and Finance-
These two departments are interconnected with to each one among. For promoting and
advertising goods and service to the consumers, marketing department will require help from the
finance. By this they can easily perform their activities in appropriate manner. For example-
TESCO is introducing organic product range for their customer as per the demand of their
potential customer and for this they are launching a campaign so that sell of the product could be
enhanced easily (Clarke, Li and Xu, 2016). For performing these activities they will need to
advertise their product n social media and many other channels. To perform this they will need
fund which is been acquired by finance department of organization.
Finance and Human Resource-
These both department are interlinked with each among. For performing recruitments or
selection procedure, this is essential for having supports from the financial departments. This
will be helpful for in performing their operation effectively. In context of the TESCO, for
employee behaviour HR department is responsible. For retaining employee for long time
company will need to give appraisal that are bonus, incentive etc., So finance department will be
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helpful to them for providing appraisal to the employees and effectively recruiting and selecting
employees to the company.
Marketing and Human Resource-
The Marketing and Human Resource department are interlinked. As for hiring or
recruiting candidate, marketing department will need to analyze area for which candidate are
being selected. For recruitment process, the marketing department will require assistances of the
HR department will be hiring candidates as per requirements. Example, TESCO needs to hire
capable and talented employees who had communication skill and having experience ion respect
field. In order to meet needs of organization, department of marketing is accountable for guiding
HR by which they could recruit who fit to the position as need by company.
Therefore, it can be determined that, it is essential for a company to had effective
communications or the strong relations among various departments through which goal an
objective of organization could be fulfilled in highly effective manner (Mawejje and Okumu,
2016). This will also be helpful for them in gaining competitive advantages in market and
enhance the image of brand.
LO3
P4 Identifying negative and positive impact macro environment on the operation of business-
The negative or positive impacts of macro environment in TESCO could be identified on
the basis of the PESTLE Analysis. It is stated below-
PESTLE Analysis-
It is the tool or framework which can be utilized for analyzing and monitoring macro-
environment factors which had profound impact on company's performance. It can be stated
below-
Political Factor- This factor could be defined as fluctuation in the government policy, labour
law and any other segment of politics. This factor had direct and indirect impact on the operation
and function of organization. This has both negative and positive impact on the TESCO which
are as follows-
 Positive: Tesco had been greatly benefited from promotion on the free trading blocs by
government. Further immersion of the 10 more countries into European. Thus, the
political changes in United Kingdom had positively affected the company.
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 Negative: Whereas if the political change are avoided by company then this could have
impact the sale of their stores, and so they won't be able to provide goods and service as
per the consumer need and demands (Bendre and Acharya, 2020).
Economic Factor- This factor refer to fluctuation in the exchange, interests and taxation rates
etc., that can effect the operations of organization. It can have negative and positive impact on
the company that is described below-
 Positive: TESCO has contributed in growth of the economy by enhancing GDP along
with living standard of consumer. So this had a positive impact on the growth and
revenue of company if country had good economy.
 Negative: Due to the situation of Brexit in country there is recession in market and thus
it could have a negative impact on the sale and profit of TESCO.
Social Factor- There are several social factors that can be age, population, distribution, culture,
taste etc., This factor is most essential for the growth and development of organization. These
can have positive and negative effect on the TESCO which is described below-
 Positive: As per the consumer demand TESCO had introduced the organic food for their
consumer so that their needs could be fulfilled and sale and revenue could also be
enhanced. This had an positive impact on growth of company.
 Negative: But if these factors would be avoided by TESCO further than they can lose
their potential consumer and thus sale & profit of company will significantly affected.
Technological Factor- Adopting technologies is helpful for a company to enhance their quality
of product along with modify strategies through which goal and objective of organization can be
meet out (Okeyo, Gathungu and Peter, 2016). There are several technological factors some of
them are R&D activity, innovation etc., The positive and negative impact can be described
below-
 Positive: Using effective technologies into the TESCO is helpful for them in increasing
quality of goods and service so that more and more consumer can be attracted.
 Negative: Whereas if TESCO uses outdated technology in their business then the quality
of their product will be adversely affected and can create barriers in the growth or
sustainability.
Environmental Factor- There is several environmental factor that are climate, natural resources
etc., This could have negative or positive impact on the TESCO which is stated below-
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 Positive: By adopting various sustainable business practices into their operation help
TESCO to gain huge consumer loyalty base and thus by this they had gain huge revenue
and sales.
 Negative: Use of the earthy resources and the material which are eco-friendly can tend
the TESCO to bear high production cost.
Legal Factor: It is most important factor which should be considered by each and every
business for operating their business in legal manner. Legal factor could be law, regulations
related to the business etc., this could have both positive and negative impact on TESCO which
had described below-
 Positive: TESCO follows all the law and regulations which are formulated by
government by this they can render quality products and service sot their consumer and
can conduct their business activity in legal manner effectively (Kanyugi and Gudda,
2019).
 Negative: If laws ad regulation are neglected by TESCO then they could have to pay
some amount of fine and suit which could effect the reputation of brand and the goodwill
of company.
LO4
P5 Conducting external and internal analysis of particular organization for identifying its
strength and weakness-
SWOT Analysis-
It is strategical planning method which is utilized by organization for identifying
strength, weaknesses, opportunity and threat which are affiliated to the planning of business.
These can be described below-
Strength-
 It is the biggest grocery retailer and the No.1 supermarket in whole UK.
 TESCO has high revenue and sales as compare to other supermarkets.
 Company has leading market share that is 27% in retail sector.
Weaknesses-
 TESCO's had faced a failure in the market of US and Japan and had exited from these
country in 2012.
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 In 2017, they are charge with fine for false accounting deceleration which had and
impact on company reputation.
 As company had low cost strategy due to which they had less profit margin.
Opportunities-
 They had an opportunity to expand further into global Asia market.
 Strategic partnership could also be developed by TESCO with the repute company
through which they could continue in the marketplace for long time (Koišová and et.al.,
2017 ).
 They could grow and upgrade their online shopping business and home delivery as well.
Threats-
 TESCO had a major threat from the big supermarkets present in the marketplace.
 Due to the impact of Brexit the trade deal and cost have created a threat to company.
 They also have threat from credit crunche and economic crisis present in the market.
P6 Stating strength and weakness interrelation with the external macro factor-
Factors Strength Weakness
Political TESCO had adopted political changes
in such a way that there sales has been
enhanced as they had got support from
government. Thus brand image of
company can be gained by political
factor.
If it is not adopted by TESCO then
the sales of the company will be
adversely affected. Along with that
some time they had to pay penalty to
government and can also have
cancellation of their licence. By
which brand reputation of TESCO
will decline.
Economic If the economy of the country is well
then they TESCO will also have huge
number of sale and could easily
operate its business activity. They are
always working for enhancing GDP of
county and standard of living.
If TESCO could not adopt the
economic changes they can face
problem in conducting transaction
globally. This can affect
organization's productivity.
Social TESCO renders organic food products Whereas if company is not following
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to their customer which is demanded
by their consumer thus this is helpful
for company to sustain their existing
consumer as well as attract new one.
the trends in market and consumer
preference then their consumer can
shift to another brand which will
decrease sale and profit of company.
Technological TESCO must update themselves with
the advance technologies which s
helpful for them to render quality
product and service to their consumer
(Marijs and Hulleman, 2019). Thus,
there sale will be enhanced.
If new technologies and innovations
are not updated by company then
they could not fulfil render quality
product to their consumer and further
they will be dissatisfied by company.
Environmental Implementing sustainable environment
practices is helpful for company to
gain huge loyal consumer base.
If the company dose not implement
this the consumer attraction towards
company will decline and thus sake
of company will also decrease.
Legal Law and regulations are widely
followed by TESCO by which they
can conduct their business operation in
legal manner.
If they don't follow any law and
regulation then they could face any
legal obligation and restrictions by
government further which could
affect rand reputation and goodwill of
company.
CONCLUSION
From the above study it business environment has an essential part in growth and
development of the any enterprise. Company can only sustain in market if they had effective
strategies and plan while keeping in mind all the factors which could affect their business.
Organization could gain huge consumer attraction if they had implemented the policies as per
the consumer demand. Thus, company can gain huge revenue and profit if they analyzed the
business environment and implement their business operation as per that.
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REFRENCES
Books and Journals
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