Types of Organization and Legal Structure

BUSINESS AND BUSINESS
ENVIRONMENT.

Table of Contents
INTRODUCTION...........................................................................................................................3
P 1 Types of organization and legal structure:-...........................................................................3
P 2 Scope and size of various types of organizations..................................................................5
P 3 Relationship between organizational functions.....................................................................6
P 4 Pestle analysis of Tesco........................................................................................................7
P 5 SWOT analysis of Tesco.......................................................................................................9
P 6 Strength and weaknesses of the PESTLE analysis..............................................................10
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment refers to the internal and external factors that affect the functioning
of company functions, it includes the employees, customers, management, demand and supply
and business rules and regulations. The function of company are affected by these factors and it
also affects the environment of business organization.
Tesco is the multinational companies which deals with the groceries and mechanize. It
has shops in seven countries. The headquarters of Tesco are in the Green city, Welwyn,
Hertfordshire. Tesco was found in year 1919 by Jack Cohen. Company has more than 6800
stores. The products in which the Tesco deals are, supermarket, hypermarket, convenience shop
and superstore. This report will evaluate the various types, purpose, size and scope of the
organization, it also includes the interrelation between organizational function and their links.
This report also includes the pestle and swot analysis of the Tesco and their influence in
decision-making process.
P 1 Types of organization and legal structure:-
There are many types of organizations for exam private, Public & voluntary:-
Private organization:- Private sector business are the ones which are owned by the private
individual and run by the private individual. Partnership, corporation, agency are private
organization and it is not operated in public and profit body. It includes all the profit to owner
and profit that are not government owned.
Purpose:-
The purpose of private organization is to get profit from the organization working and it
includes the way in which the business can get more of a profit for itself. The organization
creates the value of the company in market with its competitor. Private sector creates monopoly
and create their power in the market so that business grows, to rule the area and location the
business is running in and capture the most of the people (Bouckaert, Peters and Verhoest, 2016).
Legal structure: The legal structures include one Director, with the age more than 16, In
private sector there is no limitation to employees count, the director makes decision-making,
Finance comes from stakeholders, loans and profit retention. Private structure of business
controlled by one man direction.

Example:- Swire is a private company working in UK, and they work in the properties and real
estate and stores etc.
Public organization:- Public sector is owned and run by the government for their people. Public
sector business are worked for people and it gets financed by people who pay taxes to
government and this money is used in benefits of people by the government. Public sector
provides public services to people and use resources for the benefit of the community.
Purpose:- The purpose of public sector is to minimize the monopoly of the private sectors, The
public sector provides essential things in low and reasonable cost in relates to private sector.
They set up heavy industries which require money and are restricted to private sectors. Public
sector focus on providing helps to the needy one as poor people of a country, And they focus on
less to the profit and more to the public benefits of the country.
Legal Structure:- The legal structure of public sector is in two ways the general government
and public corporations. General government further divided into three categories that are
(central government, state government, local government)
Example:- Unilever is a public organization working in UK in providing the products and service
market.
Voluntary Organization:- Voluntary sector works on focusing the public sector benefits even
without thinking of any profit, Voluntary organization are also known as public welfares,
Voluntary sector organization does not generate revenue for their employees as it is a welfare
work and people choose to work by their own.
Purpose:- The purpose of Voluntary organization is to provide welfares in the society and help
the public sector so that they can directly benefit the people and work for society.
Legal Structure:- The legal structure works as Trustee or board which connects from regulation
and funders in organization, after that they connect with the CEO who further connects to staffs
and voluntaries and target audience to end up with the beneficiaries to the sector.
Example:- Save the children international is a voluntary organization which works for the
benefits of children on international level (Mackintosh and et.al., 2016).