Types and Purposes of Business Organizations

Table of Contents
BUSINESS ENVIRONMENT........................................................................................................3
Organisational types and purposes of business ..........................................................................3
Requirement of variety of stakeholders......................................................................................4
CONCLUSION................................................................................................................................6
REFLECTION.................................................................................................................................6
REFERENCES ...............................................................................................................................8

BUSINESS ENVIRONMENT
18 February, 2021
Introduction
Business environment refers to the internal and external factors like, political, social,
customers etc. that affect an organisation (Farooq, 2020). In the report two companies are taken,
NHS and Sainbury. NHS is a public company and Sainsbury is private company (Čepel., 2019).
Comparison is done on the basis of types of organisation and stakeholders between the two
companies.
Organisational types and purposes of business
Public organisation
It is organisation which is owned and managed by the government. Goods and services
are provided by the government for benefit of the society and they raise money from people in
the form of tax (Jeong., 2017). The main purpose of the public organisation is to provide services
to public rather than earning profit. NHS(National Health Services) is a public company in UK.
It is non profit organisation which aims at providing services to the public. NHS is health and
social care which provide free services to customers who are not able to pay money and lower
amount is charged from other people (Eling and Schaper, 2017). Purpose of company is not to
earn profit, health and social care is priority of organisation.
Private organisation
Organisations which are owned by individuals and their purpose is to earn profit. In these
organisations profit is distributed among owners, shareholders and investors. In private
organisations there is no role of government. Sainsbury is private company and its aim is to
increase revenue by selling more products. It provides different types of grocery products to
customers and increasing sales by attracting more consumers. The main aim of company is to
earn profit. Private organisations are part of economy, it is controlled by individual person or
more than one person (Komljenovic., Loiselle and Kumral, 2017).
Voluntary organisation