P1 Different Types & Purpose of Organisation

UNIT 1
Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1

P1 Different types and purpose of organisation..........................................................................1
P2. Size and scope of various kinds of entities...........................................................................4
TASK 2............................................................................................................................................6
P3 Relationship between functions of different departments in an organisation and manner in
which they link to organisation structure and objective..............................................................6
TASK 3............................................................................................................................................8
P4 Positive and negative aspects of macro environment............................................................8
TASK 4..........................................................................................................................................10
P5. Internal and external analysis of specific organisation in order to identify strengths and
weaknesses................................................................................................................................10
P6 Strengths and weaknesses interrelate with external macro factors......................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment is a combination of all internal as well as external factors that
affect organisation functions,supply and demand, customers, employees, management and
business regulations. Each and every business organisation perform their operations in distinctive
environment that include numerous form of internal as well as external factors that affect their
functioning (Anıl and Ficici, 2017). Business environment include certain salient feature such as
it is dynamic, uncertain, relative, multi-faceted and complex. Present report has been conducted
on Siansbury’s Company was established in 1869 while having headquartered in London, EC1
and UK. In this report formative discussion has been made on organisational structure, size and
scope. In addition with this, report include legal structure of different types of organisation
operating their functions different sectors. Along with this, interrelationships among diverse
range of departments. Lastly, PESTAL and SOWT evaluation has been included in this report
with the help of which organisation can effectively able to determine their strength and
weaknesses and further lead towards more growth opportunities in best effective manner.
TASK 1
P1 Different types and purpose of organisation
There are many different types of companies who preform their business activities and
functions in different sectors which are private, public and voluntary. All such companies, have
a motive of satisfying needs of their targeted customers. When these organisations function
effectively then it leads to high earnings of revenue fir company which indirectly has a positive
impact on country as a whole this process leads to increase in GDP of country and helps in its
economic growth. This report is required to be presented to shareholders of Sainsbury in their
Annual General Meeting to provide information related to structure of organisation. When
company will be able to do this they will be able to do expansion of their distribution network
and also supply chain network of company. Below mentioned are some of different types of
companies private, public and voluntary mentioned with some of their essentials.
Public Organisation:
companies in private sector are those which are fully or partially owned by government
and they control such companies. They mainly operate their business activities for welfare of
society and they don't posses sole motive of earning profits. Public sector copmapnies are
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offering large range of services which includes education, health care, communication,
transportation, infrastructure and many more. Crown Prosecution services which is located in
England and Wales provide advices related to legal issues to police and investigative agencies
who are mainly related to criminal prosecutions.
Purpose: Crown Prosecution service was founded in year 1986, they had a motive of finding
Main purpose of Crown prosecution Service is to find out criminal offence taking place on a
individual. This agency is in England and Wales and they also have a motive to render lega;l
advices to investigative agencies and police.
Legal Structure: Companies who run their business in public sector are those which are
controlled by government of country & other institutions which are related to it. Government
structure mainly depends on a particular government which helps in running, maanging and
controlling of business.
State Government: Companies which are working within ithis structure are wholly or
sometimes partially controlled by state government.
Local Government: Companies which are running their business in structure which is
managed and administered by local government.
Central Government: This is a company which has major share in having control and
management by authorities of Central Government.
Private Organisation:
Organisations who perform their operations in private sector and are owned, controlled
and managed by a sole person, companies and may be other related institutions. Companies in
this sector have major motive to earn maximum profits. To start a private company it is very
important to have a a proper structure which is formulated and they posses a base of loyal
customers. Sainsbury is a supermarket chain situated in UK and they are offering wide range of
services through convenience shops, superstore, forecourt shop and many others.
Purpose: Sainsbury is one of biggest retailers of UK and they provide finance which helps them
in running their business functions with a purpose which can help them in reviewing their supply
chain and expanding their sources in UK and also outside UK. Company has a purpose to offer
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food, drink deliveries to their stores. Sainsbury is also planning to hire British staff so that they
are able to secure supply of labour in an effective manner.
Legal structure of Private companies is described below:
Sole proprietorship: Companies which are running their functions which are owned,
controlled and at same time managed by a sole individual. There is one sole individual who is
responsible for all functions being taking place in company. All risks and profits associated with
company is also born by a single person known as sole proprietor.
Partnership: When two and more individuals come together to start a business it is
termed as partnership. It is a written agreement made between partners where they make a
certain agreement to share profits and losses of business. They work on a common motive to
maximize profits and at same time serve the society. There is a legal agreement made before
starting of partnership venture which lists down various liabilities of all different partners in
company.
Company: In this type of organisations there are shares offered to public by initial public
offers. Their main motive is to earn large profits. These are those type of organisations which
have memorandum of association and articles of association in which there are laid objectives
which helps company and their employees in making decision regarding work they have to do to
attain those objectives.
Voluntary Organisations:
Those companies which are owned and controlled by group of people who has main
motive of welfare of people of society and not to earn maximum profits. Oxfam is a company in
which there are 20 individuals and it is a charitable institution. They are conducting their services
with a motive of offering services without intention to earn monetary profits. Types of
companies which are in Oxfam includes trade unions, charitable organisations, some foundations
& other non profitable companies. Society and community is main aim of such type of
organisations which help them in conducting their functions and also help in deciding their
overall plan of operations.
Purpose: Main purpose of Oxfam is to perform their functions to reduce poverty and also help
people in raising their standard of living. This company does not aims to earn profits but onl;y
they work to benefit society as a whole.
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Legal Structure: Legal structure is discussed below:
Unincorporated Organisation: It is a form of company in which individuals sign an
agreement that they will work together and in more combined way. They perform functions to
fulfil their objective other than earning profits. In such type of unincorporated companies all its
members are responsible for all obligations.
Trust: It is a type of voluntary company in which they have a formal agreement is created
among two individuals who provide rights related to property, fund a trustee.
Limited Organisation: This is also a type of Voluntary organisation but it has limited
number of members and they have holdings of shares in the company.
P2. Size and scope of various kinds of entities
Business environment can have variety of organizations viz. Public, private and
voluntary. These have their individual functions and activities that are performed in order to
achieve the goals and objectives (Vasilcovschi and Georgescu, 2012). Each one of these have
different size and scope for carrying business operations. Furthermore, there are structure for
every entity suggested by government and should be followed throughout the business
operations. Size and scope of different types of organizations are presented below:
Public organization- When the government has the ownership and control in the
business operations of an entity, it is called public organization. Crown Prosecution Services
(CPS) is an example of this type which is located in England and Wales. It is a non-ministerial
department engaged in providing legal advices to people such as police, agencies involved in
investigation etc. Size and scope of CPS have been shown as follows:
Size- Crown Prosecution Service offers its services to the areas situated in England and
Wales. The main aim is to refer right person under the appropriate criminal proceedings so that
innocent people need not to suffer. There are approx. 14 teams working together on the
instructions of Chief Crown Prosecutor. In addition to this, there are more than 6000 people
involved in this organizational structure.
Scope- Crown Prosecution Services are focused into providing services with an intention
to fulfil the expectations of users. Also, it is considering the option to switch to digital mode for
gaining speed in all the activities and functions. The data may be from internal as well as
external sources which are related to the organization.
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Private organisation- These are the entities in which the control and ownership are held
by an single person or groups. The level of interference of government is low as these are private
entities. Sainsbury is included in this category which is a successful and growing entity in
supermarket chain. It has more than 16.9% of share in supermarket sector. Its provides services
from different medium such as superstore, supermarket and similar channels.
Size- Sainsbury has huge number of services offered by it and people can choose from
them. It has about 186,900 employees together with 1415 shops in different locations of the
world. The range of services that are being offered are very wide which are provided to the final
customers through supermarkets and superstores. This helps it get connected with the buyers
who purchase the products on repetitive basis and are indeed loyal to the brand. From the
services offered, it has managed to make operation income of 518million Euro which is huge.
Scope- Sainsbury knows the importance of having candidates who are skilled and capable
to perform well and fulfil the goals and objectives of the company. Therefore, it appoints people
who can contribute to profits and sales and take the company to new heights. Furthermore, then
main motive is to provide higher customer satisfaction that can be gained from offering variety
of services. In addition to this, the employees are capable of communicate in 50 different
languages and the diverse workforce belongs to 24 different time zones. Sainsbury add more
services and make the scope wider in order to attract more customers.
Voluntary organisation- This the third category of entities which are controlled and
managed by number of people sharing common goals and objectives. Oxfam is a voluntary
organisation which works as charitable entity and the motive is to eradicate poverty from
different locations in the globe. Also, to help people live a better life by improving their standard
of living.
Size- Oxfam started to work by forming alliance with many independent charitable
entities. It provides welfare services in almost 14 different nations throughout the world. The aim
is to remove poverty and similar issues from number of locations in the globe. Furthermore,
there are people who have taken the role of volunteers in order to perform activities for the
betterment of people living in the society.
Scope- It is directed towards those areas where it is yet to provide the services in order to
expand the scope. This is how it is working efficiently.
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TASK 2
P3 Relationship between functions of different departments in an organisation and manner in
which they link to organisation structure and objective
It is important for an organisation to perform their business operations in smooth and
effective manner. In order to accomplish this organisation is required to ensure that there is
proper coordination in workplace departmental units. This will lead towards more sustainable
growth for companies. In addition with this it is the basic responsibility of managers of
Sainsbury's to ensure that organisational objectives and goals are clearly defined to each and
every individual within company in order to fulfil organisational goals in best effective manner.
There is interrelation among different departments of Sainsbury's is mentioned below:
Illustration : Organisational Structure
(Source: Organisational Structure, 2019)
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Human Resource and Finance Department:
It is the basic responsibility of Sainsbury's human resource department is to recruit
effective and potential candidates for every department as to fulfil vacant job recruitment of
company. HR department of organisation hold the formative responsibility to increase workforce
effectiveness by hiring talented candidates from different sources. In addition with this most
important responsibility of HR manager of company is to train their employees with every
evolvement in technology. For this there is a need of adequate funds that can be effectively fulfil
by finance department of company. As they have the responsibility to find different source from
which funds can be collected. With the help of this, finance department fulfil every essential
requirement of every department include HR unit. Thus, with the help of this interrelationship
Sainsbury's can effectively able to perform their operations and further able to satisfy customers
with their best services.
Research and Development and Production Department:
Research and development department of Sainsbury’s is one of the most important
departmental units have responsibility to ascertain actual needs and preferences of consumers.
Research and Development department of company aid production department by providing
them knowledge that is related to current behaviour of consumers and latest technology. This
will benefit production department to update their production process by using innovative
technology and gain more competitive edge in market. While on the other hand, production
department in return helps R&D department by offering them information related to any kind of
required changes in product and services. This interrelationship benefits Siansbury’so improve
their process if production by strengthening company technological measure. This will help them
to gain more competitive advantages against their competitors and acquire large share in
marketplace.
With the interrelationship in each of their departmental units Sainsbury’s can effectively
raise performance level of their employees and ensure stable growth of company. Along with
this interrelationship benefits company to analyse necessary related gaps and fill them in
accurate given time in order to strengthen organisation internal working structure and gain more
competitive advantages against their competitors.
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TASK 3
P4 Positive and negative aspects of macro environment
Siansbury's operate their functions as a second largest form of super market chain and offer
their services in all around the world. Thus, it becomes essential for company to effectively
understand the impact of internal as well as external factors in order to perform their operations
in best effective manner. Mentioned below there are some positive as well as negative impact of
macro environment on organisational functioning is being discussed:
Political: Political environment include political conditions of any country and nation which is
required to be effectively analyse and understand by an organisation in order to operate their
functions as per according to that country political conditions (Sood and Sukthankar, V. K).
Thus, it is essential for Siansbury’s to have complete knowledge and information related to
government policies of that nations where they perform their operations. With the help of this
they can effectively able to operate their functions without facing any form of political
hindrances.
Positive:It has been analysed that UK have stable form political conditions which makes
easy for an organisation to expand their business. In addition with this by abiding government
policies Siansbury’s can effectively able to get additional form of benefits such as relief in
taxation. This will further aid them to get more profitability.
Negative: Negligence of abiding political conditions of country may lead Siansbury’s to
face governmental threats which hamper their smooth functioning for work and reduce level of
profitability.
Economical : It is a crucial element which is required to be effectively consider by an
organisation as it affect their operating cost and profitability. As Siansbury’s operate their
functions in UK marketplace which is currently going through economic fluctuations. Thus,
company is required to frame strategies with the help of their experienced analyst in order to
operate their functions in best effective manner.
Positive : It has been analysed that UK economy offer numerous opportunities for
business organisation which is essential for a company to stabilize their operations. Thus
Siansbury’s can get various advantages by operating their operations in UK market.
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Negative : In current situation there are different types of factors in UK economy such as
unstable raw market, fluctuations in rates of raw materials as well as high level of transportation
cost. This further lead towards creating numerous form of problems and issues for Siansbury’s.
Social :As per according to this factor Siansbury’s is required to effectively understand society
values and behaviour in order to operate their functions in best effective manner. With the help
of this company is required to satisfy society with according to their needs and demands
Positive : Siansbury’s by evaluating social conditions of society can effectively able to
perform their functions. In addition with this by determining values and beliefs of their society
company can able to satisfy customer society with best.
Negative :Organisation is required to evaluate needs and beliefs of society as negligence
of this may lead Siansbury’s to dissatisfy their customers.
Technological : It has been analysed that technology is evolving in its fast phase and keeps on
changing with continuous manner of time. For this it is essential for Siansbury’s to adopt
technological advancements in their organisational structure as to increase their overall
profitability. This will further aid them to make and improvement in their customer experience in
best effective manner.
Positive :With the help of this Siansbury’s can able to increase work effectiveness of
their employees with the help of which they can able to offer more productive outcomes. In
addition with this technology also aid them to reduce necessary form of cost and effectively
maintain inventory and other form of resources ratios in best effective manner.
Negative : Siansbury’s is required to invest huge amount of maintenance cost. Along with
this company is also required to train each and every employee in order to utilize technology in
best appropriate manner.
Legal :As Siansbury’s operate their functions all around the world thus, it is essential for
company to follow every required rules, legislation and law in order to safeguard organisation
from any kind of further penalty. With the help of this they can perform their operations without
any legal issue and problems.
Positive : With the help of abiding all essential legal requirements Siansbury’s can
effectively able to frame strategies with the help of which they can effectively able to perform
their operations. With the help of applying all the legal requirements company can further able to
ensure goodwill in marketplace along with long term sustainability.
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Negative : Breaking of any law in organisation will lead to several problems to
organisation like, penalties and can cause to damage in long term sustainability of them.
Environmental : In order to perform business functions while considering environment it is
essential for Siansbury’s to undertake each and every form of rules and regulations of a nation
where their operate their functions. With the help of this they can effectively able to perform
their activities without affecting environment (Charfeddine, 2016).
Positive : By having concern towards environment Siansbury’s can effectively able to
contribute towards welfare of environment. This will aid company to strengthen their brand
image that later help them to increase their profitability.
Negative : Organisation is required to ensure that all legislation run in their work
structure in best effective manner. In addition with this, negligence of any law may lead
company to face cancellation of licence and other form of financial problems.
TASK 4
P5. Internal and external analysis of specific organisation in order to identify strengths and
weaknesses
SWOT analysis is a tool which is used by organizations for identifying strengths,
weaknesses, opportunities and threats in order to carry the business operations. This has been
conducted in respect to Sainsbury which is as follows:
Strengths- Sainsbury is leading as supermarket chain in UK as well as other parts of the
world and this reflects its strong position. The workforce is about 150,000 which makes it
powerful in accomplishing the goals and objectives.
Weaknesses- The scope of business is huge and it has presence in different parts of the
world due to which the operations get affected by many factors. There are fluctuations which
may impact the business in significant manner. Furthermore, the competition is increasing with
the time which may shake its current position in the industry.
Threats- Business organizations receive assistance from the government in many ways.
This is to promote business in UK and attract investors to make investment. This has given
chance to new entrants to establish business in this market as there are huge potential in this.
Opportunities- Sainsbury is a company having strong position in the market also it is
going good in the business as compared to competitors. Business organizations look for
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developing countries to make investment in order to start their own business. Furthermore,
number of joint ventures and similar alliance can also be formed. Together with this, it can also
add online facility and home delivery.
P6 Strengths and weaknesses interrelate with external macro factors
It has been analysed that macro factor do not have any kind of control on an organisation
but they later influence their functionality. Some of these factors include, social, environmental,
economical, political and legal (Burayidi, 2013). Thus, Siansbury’s is required to understand
strength and weaknesses for each and every factor as to conduct their operations in best effective
manner.
1. Political
Strengths : Political factor hold strong relationship with organisation and government
bodies. Thus, it is essential for company to implement all essential political laws in order to
perform their operations in best effective manner.
Weaknesses : With regular change in political conditions Siansbury’s may face
numerous form of issues. In addition with this, company may also face issues related to taxation
that may further lead towards financial loss.
2. Economical
Strengths : Good economic condition aid Siansbury’s, to introduce different types of
products and services in order to increase profitability in best effective manner.
Weaknesses : Due to heavy fluctuations company may face issues related to financial
loss. In addition with this, fluctuations in economy create sense of fear among employees related
to job loss.
3. Social
Strengths : It is essential for company to analyse customers perceptions, taste and
preferences in order to satisfy them in best effective manner. With the help of this Siansbury’s,
can not only able to provide welfare to society but also aid nation with development.
Weaknesses : With the change in buying pattern, preferences and taste of consumers may
lead towards facing employees with low level of morale. This may later affect employees
motiavtion and organisation functions.
4. Technological
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Strengths : With the implementation of technology in organisational structure
Siansbury’s, can effectively able to increase their profitability and further enhance level of
resources.
Weaknesses : This lead to increase the maintenance cost of organisation and also increase
the cost of their products by which the buying behaviour of customers may get affected.
CONCLUSION
As per the above mentioned report, it has been concluded that there are different types of
organisation those who perform their operations public, voluntary and private sector
organisation. There are different types of factors included in internal as well as external
environment that affect functioning of organisation. Thus, it is essential for company to evaluate
them as to perform operations in best effective manner. This report also include SWOT and
PESTLE analysis with the help of which organisation can effectively able to identify strength
and weaknesses and further perform with best profitability.
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REFERENCES
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Toedt, M. ed., 2014. Data Revolution: How Big Data Will Change the Way of Doing Business?.
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