Business Environment Analysis: Public and Private Sector Differences

This report analyzes the business environment, focusing on the differences between public and private sector organizations. It examines the objectives of both sectors, highlighting the welfare-focused approach of the public sector and the profit-driven goals of the private sector, using examples of IKEA and Mack and Jack's Brewery. The report also explores the organizational structures, comparing the tall structure of IKEA with the implications of different business sizes and scopes, like the comparison between Sainsbury's and Iceland. The analysis covers key aspects of business operations, including market share, customer focus, and the importance of strategic management in achieving business goals. The report also includes references to support its analysis.

Business Environment
Task 1 P1, P2, M1

Public sector organisation
• The major objective of
public sector organisation is
to provide the welfare to the
society and promote their
well being in the country.
• This kind of organisation
provides the benefits to the
society by job security,
retirement benefits,
allowances, perquisites etc.

Private sector organisation
• The private sector companies are
divided on the basis of sizes like
small and medium enterprise and
large enterprise which are either
privately or publically traded
organisations.
• Individuals or enterprise that is
known as the private sector
organisation. The private
companies are run with assistance
of funds that are collected through
various stakeholders and
investors.

Objective of private organisation
Ikea have various major
objectives which are as
follows-
• Stakeholders welfare
improvement
• Economic development
• Employees welfare

Objective of Public organisation
It have various kinds of
objective which are as
follows-
• To expand the
business
• To enhance the
market share

Difference between the Types of
businesses
Public sector
• This kind of organisation provides the benefits
to the society by job security, retirement
benefits, allowances, perquisites etc. Its
activities and functions provides welfare to the
stakeholders.

Continue..
Private company
• Ikea company have major objective to earn the
maximum profitability and market share by
delivering high quality of product and services
to customer in the market.

Mack and jack
Mack and jack is a retail store to sample some
of our fine and handcrafted ales.Say say say is a
song written and performed by paul McCaryney
and Michael Jackson relerased in 1983. Mack
and Jack's Brewery invites customer on
saturday and sunday at 1 pm and 3 pm and it is
kind of privcate company which major objective
to aquire large number of customer to gain the
highest profitability by supplying beer.

Size and Scope
• The size and scope of
Sainsbury’s Limited firm is high
and broad as compared to the
Iceland company. The scope
of Sainsbury’s in the
international market by serving
various segment of customers.
• The size and scope of Iceland
limited company is limited in
the market where its existing
performance shows that said
company is limited to its
country by providing service in
UK's major cities.

Organisation Structure
Mack and jack -
Organisation structure is
very important aspect
which defines the ways
of communication and
interaction of various
functional department in
the organisation.

Conti..
Ikea
Ikea have adopted the tall organisation
structure, under which top management have
strict command and regulation over various
departments of company.

References
Reim, W., Parida, V. and Örtqvist, D., 2015. Product–Service Systems (PSS)
business models and tactics–a systematic literature review. Journal of
Cleaner Production 97 pp.61-75.
Cumming, D.J. and Zahra, S.A., 2016. International business and
entrepreneurship implications of Brexit. British Journal of Management
27(4) pp.687-692.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in
Tourism, CABI Tourism Texts. Cabi.