Types and Purpose of Companies: Public, Private & Voluntary Sectors

Title HNBS 301 Business and
the Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
PART 1............................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain different types and purpose of company: public, private & voluntary sectors along
with legal structure......................................................................................................................3
P2 Explain size and scope of various types of companies..........................................................4
TASK 2............................................................................................................................................6
P3 Interrelationship among organizational functions.................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES ...............................................................................................................................8
PART 2 ...........................................................................................................................................9
INTRODUCTION ..........................................................................................................................9
TASK 3 ...........................................................................................................................................9
P4 Determine positive & negative impacts of macro environment on business operation.........9
PESTLE ANALYSIS....................................................................................................................10
TASK 4..........................................................................................................................................12
P5 Conduct SWOT of company................................................................................................12
P6 Explain how strength and weakness are linked with external macro factors......................13
CONCLUSION .............................................................................................................................14
REFERENCE.................................................................................................................................15

INTRODUCTION
Business environment includes internal and external forces which can affects the
function, operation and activities of company. For this it is vital to coordinate and collaborate all
function together for smooth running (Ivanovich, 2020). In present report, a private company,
Tesco is selected, a voluntary company, Wellcome Trust and a public sector British Broadcasting
company is chosen. In which this report covers different types of company on the basis of scope
& purpose. Additionally, relationship among organisational functions.
MAIN BODY
PART 1
TASK 1
P1 Explain different types and purpose of company: public, private & voluntary sectors along
with legal structure.
Organisation are formed for performing different operation in order to gain specific goals
or objective. In business environment there are three different types of company i.e. private,
public and voluntary. All these have different aim and purpose & there existence in market
shows different purpose (Saleh and Watson, 2017). In which brief discussion of all these are as
follow:
Private company: Such types of firm operates their business with the aim of earning
profit & they are self sustaining or non federal entity. It includes partnership group, association,
agency or corporation. Tesco, M&S, Sainsbury etc. are the examples of private companies which
operates their business at international level.
Legal structure of private company
Sole trade- Sole traders are those who manages and handle their business operation itself.
They are only responsible for loss or profitability. Owner possess responsibility to carry out
activities that are linked with operations legal & financial aspects.
Partnerships- In such types of business there is less requirement of fund along with it the
risk involvement is less. In this there are two or more than two partners work together. John
Lewis is an example of this type of business unit.

Private limited company: These types of firm are authorise by private proprietor and are
not permitted to sell their market shares in market. For instance, Airdri
Public limited company: Such firm's are free to sell their market shares in market for
gaining huge amount of capital. For instance Tesco, Sainsbury's etc.
Public company: These types of companies are mainly governed by government with the
aim of offering services or products. Additionally, they contributes their large section towards
economy of nation. Example are gas, oil, steel fertilizers and many more (Hamilton and Webster,
2018). Primary aim of private companies is to increase the profitability for development and
growth of nation. British Broadcasting company comes under public organisation. Lawful
structure of public companies are as follows:
Central government department are owned by state government.
Local authorities are managed & controlled by local authority.
Voluntary companies: Main aim of operating these firm is to provide social welfare and
development to the individual of nations. Wellcome trust is an example of such type of company.
This was founded by Henry Wellcome in 1936. there legal structure are as follows:
Trust- there are specific trustees who provides funds for the welfare of society
Others- Community, royal charter bodies etc.
Un-incorported association – These refers to those which mainly committed to to
perform task and operations.
P2 Explain size and scope of various types of companies
All companies have different scope, vision, size and mission and offers different
products. All these wish to maximizes their stakeholders for enhancing capital with their
assistance so that firms will able to sustain and operates for longer period in market. Scope &
size of companies are as follows:
Private Ltd. : Primary aim of these types of companies is to increase profitability by
attaining predefined goal and that is laid by tip management. Tesco is a multinational
organisation and has supermarket chain in retailing industry of UK and making more profit.
Objective of this firm is to increase market shares by offering various products to increase sales
(Vision, values and business strategies A Tesco case study, 2020). These firms made adequate
research studies towards consumers and on that basis make required modification for consumers
offerings.