Unit 1

Unit 1
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Explain different types and purposes of organisations..........................................................3
P2 Explain the size and scope of a range of different types of organisations.............................5
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.......................................................................................6
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples. ..............................................................................7
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses..........................................................................................................10
P6 Interrelation between macro factors and internal factors.....................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Business environment can be describe as the surrounding of organisation in which it have
to perform activities. This will includes various components such as customers, technology,
government, market trends and many other factors (Ballard and et. al., 2012). It is crucial for
organisation to consider these factors while decision making. This report is based on Tesco
company. This organisation is a multinational groceries store that is offering its products and
services in different part of the world. Tesco company is dealing in retail sector and its major
products are Supermarket, hypermarket, superstore and many more. This company was
developed by Jack Cohen and its head office is located in England. This report will include types
or purpose of organisation along with its size and scope. In this relationship between different
functions of organisation is determine. This report will includes micro and macro factors of
business that will have impact on decision making. Apart from this interrelation of strength and
weakness with external factors are determined.
MAIN BODY
P1 Explain different types and purposes of organisations
Organisation refer as the group of people that are combine together in order to attain the
goal and objective of business. There are different types of organisation that is performing
business activities with different purpose (Bansal and Hoffman, 2012). Major types of
organisation is classified into public private and voluntary. Organisation types and purpose is
mention below -
Private sector – This type of organisation is privately owned and conducting business
activities. Private sector company is controlled and managed by owner who is responsible for
taking major importance decisions. For example Tesco company, Airdri etc.
Purpose – The purpose of private organisation is to earn more profits and enhance
organisational activities. Private business aim to offer its products and services to large number
of customer in order to earn more revenues.
Legal structures – Private sector companies are classified into several parts which
support owner to carry out business activities.
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 Sole trader – In this kind of private organisation only one person is responsible for
performing business activities and taking major decisions. Sole trader is also consider as
self employed person who runs and own business individually.
 Partnership – This type of organisation have two or more person who combines together
in order to carry out different business activities. In this profits or loss is distributed
among owners as per their percentage in business.
Public sector – This type of companies includes all those organisation that is managed
and controlled by government. In this organisation goods and services are developed in order to
provide support to nation or its citizens (Crane and et. al., 2019). In this power to take decision
and develop strategy is hold by government. Example of public sector company is BBC
organisation.
Purpose – The purpose of public sector company is to do welfare of society and develop
economic activities in nation. Public sector organisation purpose is to enhance social economic
activities in country and provide benefits its citizens.
Legal structures – Different legal structure of public sector company is mention below -
 Central public company – This type of companies are controlled and handle by central
government. Decision and strategies that is developed by central government will be
followed and performed all over the nation.
 State public company - Public companies which is managed by state government are
consider as state public companies. In this type of organisation all rules and regulation
which is developed by state government needs to be followed by organisation.
Voluntary sector – This sector includes all those companies which are developed and
created in order to provide benefits to society and meet with the needs of citizens (Geigenmüller,
Ata and Toker, 2012). Voluntary company are providing different products and services which
will lead to satisfy the requirement of citizens. For example NHS organisation.
Purpose – The purpose of developing voluntary organisation is to do welfare of society
and meet with the needs of citizens. Voluntary company are not providing services earn profits
but enhancing society and citizens are the main motive.
Legal structures – Voluntary sector legal structure is mention below -
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