Types and Purposes of Organisations

Business and the
Business Environment

Table of Contents
Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Various types and purposes of organisations; public, private and voluntary sectors and
legal structures............................................................................................................................1
P2 Size and scope of different types of organisations.................................................................4
TASK 2............................................................................................................................................6
P3. Inter-relationship between different organisational functions and their linkage with
organisational objectives and structure.......................................................................................6
TASK 3............................................................................................................................................9
P4 Impact of the macro environment upon business activities of the enterprise.......................9
TASK 4..........................................................................................................................................11
P5 Internal and external analysis...............................................................................................11
P6 Relation of strengths and weaknesses with external macro factors....................................12
Conclusion.....................................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business is the activity where the buyers and sellers come together to buy and sell the
goods and services in exchange of some value. It can be of any form like private, public or both.
The motive of every organisations are different (Schaltegger, Hansen and Lüdeke-Freund, 2016).
The place where the trading activities are carried on is the external business environment. It
plays an important role in every business concern. It involves internal and external constituents.
Both the factors has an impact on the functioning of the commercial enterprise. For the purpose
of this report the private organisation Wilko is taken. It is engaged in retailing chain of consumer
goods, groceries, stationery goods, bathroom and kitchen products. The headquarter of Wilko is
at England, UK. Through this study the different type of organisations with various size and
structure, departments role and relation with other units, the impact of macro environment on
business enterprise has been discussed.
TASK 1
P1 Various types and purposes of organisations; public, private and voluntary sectors and legal
structures.
Public sector
These organisations are owned and run by the government. They are mostly not profit
oriented (Quinlan and et. al., 2019). Public Health England is the example of the public
organisation. Its headquarter is in London, UK. It is the agency of the Health and Social care
department.
Purpose- The purpose of the public organisation is to provide various services to the public so
as to improve their standard of living. Public Health England work with partners to provide
support and make improvements in health and wellbeing of the society.
Legal Structures- It comprises:-
Central government:- It holds the supreme power in its hands and regulates the overall
functioning of the country. They are funded directly from the taxes collected from the people of
the country.
State government:- It is controlled by the central government and works according to the
guidelines of the central government. It looks after the promotion of the economy of the state.
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Local government:- This type of legal structure of local government acts within the
powers delegated to them by the legislation and higher government. Public Health England has
this legal structure.
Private sector
These organisations are owned by individuals and are not controlled by the government.
They are run by the need to make profit (Prajogo, 2016). The example of private sector
organisation is Wilko. It is retail company which sells consumer goods in England, UK.
Purpose- The basic purpose of the private organisation is to earn profit and grow in the market.
for improving their way of living. Wilco wants to sell quality products to the customer at
affordable prices so as to continuously grow in the market.
Legal Structures- It consists of
Sole proprietorship:- It is owned and controlled by one person. It is not incorporated
body. Owner is responsible for the liabilities of the business.
Partnership:- It is formed by two or more members. They also not incorporated body and
have a separate legal entity.
Limited Company:- It involves private companies which have limited liabilities. They are
generally engaged in medium and small size businesses. Wilco is a private limited company.
Voluntary sector
They are owned and run by the individual and trustees voluntarily with or without the
interference of the government (Oriesek and Schwarz, 2016). Royal Voluntary Service is
example of this sector working in England, Scotland and Wales.
Purpose- They work to provide necessary welfare services to the public, to improve the
community. Royal voluntary service engaged in helping people who are in need.
Legal Structures- It includes the four structures-
Trust- It involves trustees. It is not a separate legal entity. A trust deed is formed during
its formation.
Unincorporated association- Here a group of people with a common interest comes
together to work for the benefit of the public. The liability of the governing body is unlimited as
they are not a legal entity.
Company limited by guarantee – The directors of this type of legal structure can be the
trustees or other members. It is a separate legal entity.
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