Analysis of Business Types: Sizes, Purposes, and Scope Report

This report provides an overview of three main types of business organizations: private, public, and voluntary. It defines the purpose of each type, highlighting that private organizations aim for profit maximization, public organizations serve the public interest, and voluntary organizations focus on societal welfare. The report examines the size and scope of specific examples, including Marks and Spencer (private), Tesco (public), and Oxfam (voluntary), illustrating their financial performance, employee count, and global reach. The conclusion summarizes the key differences in organizational goals and operational approaches. References are provided to support the analysis.

Business and Business
Environment
Task 1

INTRODUCTION
• This report will explain different types of businesses, their size and scope.
• It will describe purpose of various businesses.

PURPOSE OF PRIVATE ORGANIZATIONS
• These are companies that are set up with the intention of earning profits.
They are owned by individuals or groups and not by government.
• Revenues are generated and reinvested by these organisations for it's
sustenance and profits are shared accordingly.
• Private companies take up a big part of an economy in some countries .
• They are required to follow legal rules and regulations created by the
government.

PURPOSE OF PUBLIC ORGANISATIONS
• These consist of companies that are et up for purposes other than
financial gain.
• They are operated by government and provide services for their citizens.
• Their main motive is to work for benefit of the public.
• They are highly regulated as compared to private organisations and have to
go through many legal and structural conditions.
• Business activities are done so that profit can be generated and distributed
among members and public shareholders.

PURPOSE OF VOLUNTARY ORGANISATIONS
• These are non profit organisations which operate independently. They do
not come under the government, but receive funding from them at times.
• They rely on external funds such as donations, grants, dues and are not
interested in earning profits. Their staff are not paid to work with them.

SIZE AND SCOPE OF MARKS AND SPENCER
(PRIVATE COMPANY)
• Marks and Spencer is a large organisation with more than 80,000
employees and has generated an income of £115 in 2017.
• They have earned an international revenue of £1 billion with 1000 stores in
UK and 400+ internationally.
• They have generate £3.7 billion from clothing and home, £5.9 from food.
Their shareholders get a dividend of £18.7million per share.

SIZE AND SCOPE OF TESCO (PUBLIC COMPANY)
• Tesco earns a revenue of £62 billion and has more than 400,000 employees
present in company. They have over 6000 shops worldwide.
• They worked at reducing emissions across international operations by
17.2 and reduced wastage by 15%.
• It's market share in UK had grown steadily over the years and has been
performing great with a 30% share price rate.

SIZE AND SCOPE OF VOLUNTARY
ORGANIZATION
 Oxfam is an international confederation founded in 1942.
 They are located in more than 90 countries.
 Company has a operating budget in international market around
US $8.7 millions.
 They are established with an aim to remove poverty from world.
 They have provided relief to many poor families.
 Respond effectively and quickly to any hazardous situation or global
crisis.
 They have helped over 445000 people and provided around 54000
shelter kits .

CONCLUSION
• The above report concludes that there are generally 3 types of organisation
and they all work differently.
• Private organisations are profit orientated. They work towards
maximization of profts.
• Public organisations are people and profit orientated. They work for the
benefit of consumers, company and communities.
• Voluntary organisations are set up for welfare of society and aim towards
helping those in need.

REFERNCES
• Arvidson, M. and Lyon, F., 2014. Social impact measurement and non-
profit organisations: compliance, resistance, and promotion. VOLUNTAS:
International Journal of Voluntary and Nonprofit Organizations. 25(4).
pp.869-886.
 Wilson, C.M., 2018. Designing purposeful organisations (Vol. 42, No. 47,
pp. 42-47). ROUTLEDGE in association with GSE Research.