Explain the Different Types, Size and Scope of Organisations

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
Different Types, Size And Scope Of Organisation................................................................1
LO 2................................................................................................................................................6
An Analysis Of Two Types Of Organisational Structure And Ensure A Clear Understanding
Of The Relationship Between Different Functions At Sainsbury's........................................6
LO 3...............................................................................................................................................10
Report on impact of Brexit on Sainsbury's business organisation and also use PESTLE tool to
highlight the negative and positive impact on business. .....................................................10
LO 4...............................................................................................................................................14
Swot Analysis of Sainbury's and its impact of micro and macro factors on business decisions
..............................................................................................................................................14
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Business environment can be defined as sum of all internal and external factors that affect
overall working of organisation to great extent. Sainsbury company is the UK based retailer
company deals in food, clothing, property investment services and banking sector. Sainsbury was
established in 1869 and it also takeover Argos Parent home retail group in April 2016 at £1.4
billion. Sainsbury closes most of the Argos stores and converted them into the large Sainsbury
supermarkets. Present report is based on business and business environment of Sainsbury
company at the time of Brexit.
This report includes the types of organisation and their purpose. Further it defines the
organisational structure and their interrelationship with various function in the organisation.
Report explains with the positive and negative impact of PESTLE analysis on business operation
in Brexit time and lastly it ends with the description of SWOT Analysis and impact of micro and
macro factors on Sainsbury's business decision and objectives.
TASK 1
Different Types, Size And Scope Of Organisation
Different types of organisation
There are many organisations those which have different purpose and ownership
(Organization: Meaning, Definition, Concepts and Characteristics ,2019)
Organisation can be classified into different types based on their mode of incorporation, liability
of the members etc. The most common types of organisations on the bases of ownership are:
 Public Organisation
 Private Organisation
 Voluntary Organisation
Classification of organisation on the bases of size is as below:
 Micro Organisation
 Macro Organisation
Public Organisation: The public Organisation is usually comprised of organisation that
are owned and operated by the government and exist to provide services for its citizens.
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The major objective of such an organization is to render concerned service to people
while at the same time earning enough to keep functioning better, to get better infrastructure and
to pay its employees (Torry, 2017). For example: BBC (British Broadcasting corporation) is
working as public company in UK. It is the British public service broadcaster that circulate news
to people. The main purpose of organisation is to broadcast all detail on time. It provides radio,
web portals services as well to mass audience. It comes under tertiary sector, as it works in
service industry.
Private Organisation: These are such firms in which owner takes all the decision for the
firm and there is no intervention of government. Purpose of private organisation is to maximise
profit an expand business across the world. For example: Argos is working as private
organisation, it was take over by Sainsbury. Sainsbury offers range of grocery items, cloths,
home accessories to its consumers across the world. Enterprise continuously work to raise its
profitability and make efforts to open new branches in other locations as well (Carney and et.al.,
2015). It comes under secondary sector.
Voluntary Organisation: This is the type of organisation that provides health care
services to people and work for social welfare always. Its main agenda is to improve well-being
of people. Some UK based Voluntary Organisation is Welcome Trust. Its main agenda is to
help every one. It is global charitable foundation that comes under tertiary sector.
Micro Organisation: A Micro organisation is small business that employs a small number of
employees. A micro organisation is usually operated with fewer than 10 people and its turn over
is under £2 million and turnover is and is started with small amount of capital. Most micro
organisations specialize in providing goods or services for their local people. It includes Lawn
and landscaping, street vendors, carpenters, plumbers etc.
Micro organisation serves a vital purpose in improving the quality of life for people in
developing countries. Some UK based Micro Organisations are- Boss Brewing Company
(Faherty and Stephens, 2016)
Macro Organisation: Macro organisations are the part or subsidiary of the private
organisation. The share of these business are less liquid, and their valuations are more difficult to
determine. These are big size firms that have more than 250 employees in organisation. For
example: ALDI is working as macros firm. It can be sole trader, partnership firm etc. Sole trader
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is the type of firm in which owner is responsible for whole liability of company. Whereas
partnership firm is the type of business in which both partners share profit and liability.
Difference among these organisations
Public
Organisation
(BBC)
Private
Organisation
(Sainbury's)
Voluntary
Organisation
(Wellcom,
Trust)
Micro
Enterprise
(Boss
Brewing
Company)
Macro
Enterprise
(Aldi)
Vision and
Mission
Vision of
BBC is to
enrich people
lives and
inform them
or educate
them.
Mission of this
organisation is
to be
customer's
first choice for
food,
delivering
products of
outstanding
quality and
great service
at a
competitive
cost through
working
faster, simpler
and together.
Adopting right
long term
strategy and
priorities.
Improve the
mobilization
of the
abundance of
natural
resource in
country.
Vision of
macro
companies are
to maintain
sustainable
relationship
with the
customer.
Objectives The major
objective of
such an
organization is
Objective of
this
organisation is
to achieve
Objective of
Voluntary
organisation is
to provide
Its objective is
to spread
industries and
trade in an
Objective of
this type of
organisation is
to earn profit
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to render
concerned
service to
people, It
organises
various
programs so
that large
number of
people get to
know about
recent news
and daily
activities.
target,
increasing
sales and
profit
maximization(
Carney and
et.al., 2015).
social services
to poor, needy
neglected, old-
aged, the sick
and the down
trodden.
economically
backward
areas. This
helps in the
development
of overall
economy(Fah
erty, and
Stephens.,
2016).
expand their
business.
Legal
Structure
Board of
director run
the business
and
shareholders
have right to
vote in
company. It is
essential to
sell shares on
stock
exchange(Torr
y, 2017).
It runs by the
board of
directors on
behalf of the
stakeholder. It
must have its
memorandum,
and Article of
association
This
association is
governed by
the
constitution,
legal
documents
which govern
the association
Owner,
partner are
responsible for
all the
liabilities of
company. It is
not necessary
to sell shares
to stock
exchange.
It runs by the
board of
directors on
behalf of the
stakeholder. It
must have its
memorandum,
and Article of
association
Scope Scope of BBC
is wide. As
this
There is a high
Scope of
Private-sector
Wellcome
trust become
an irresistible
Boss Brewing
Company has
scope to grow
Aldi can enter
into new
locations and
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