Different Types and Purposes of Organisations


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Organization Selected : Sainsbury


Business environment includes various forms of organisation and different factors which impacts on operations. This assignment is based on Sainsbury which is popular retail store established in London. Different variety of food, home, health, beauty and many other items are provided by company. This report defines different types and purposes of organisation which vary with each other in respect to size and scope (Bahand Fang, 2015). Every firm and functions have relationship with each other which help management accomplish objectives. Internal and external analysis provides information to senior about positive and negative impacts of macro environment. This also benefit executive to identify strengths and weaknesses; thereby interrelate with external macro factors.


P1 Different types and purposes of organizations

Public, private and voluntary are various organisation which are present in market. These are different firms which have variance capital and objectives. Business operations are executed by subordinates for welfare of society and achieve objectives. Apart from this, market have various enterprise which are started by individual to generate adequate profit. Different kinds of organisation which exist in market are stated beneath (BuÄŸra and SavaÅŸkan, 2012):

Public Sector:

This segment comprises firms which are owned and controlled by government. Barclays is public sector firm which executes financial services and provide different instruments to people.

Purpose: Public sector includes organisation with aim of providing items and services for welfare of society. These firms even increases employment opportunities for people to gain adequate amount for regulating their livelihood.

Private Sector:

This aspect includes enterprise which are established and managed by an individual or group of persons. Variety of items and services are provided by Sainsbury to give options to customers and make them purchase things in according to their taste and preferences.

Purpose: Private sector comprises firms which are started by individual with goal of generating profit. Apart from this, executive deliver different products to enhance market image and goodwill in respect to competitors (Cai and Yang, 2014).

Voluntary Sector:

This segment is also defined as community sector which includes organisation which are incorporated by people to independently execute activities and gain money to deliver appropriate things and services for needy ones. NSPCC is firm which is started by individual to raise funds for young adults and children which are ill-treated and misused.

Purpose: This sector includes firms which carries aim of providing things to earn appropriate money for execution of activities and not as profit.

Legal Structure: This is description of public and private sector organisation which follow instruction and plan as formulated by seniors (Craig and Campbell, 2012).

Public sector:

  • Local government:Primary and secondary education, library, council housing, social services, sport facilities and parks are various services which are managed and controlled by local regulatory bodies.
  • Central government:Defence, social security, national health service, police, universities and prisons are various things which are regulated and monitored by authorities.

Private sector:

  • Sole Trader: Accountant, hairdresser, painter, plumber and many more are business which are executed by individuals to generate adequate revenue for their livelihood.
  • Partnership:More than two individuals sign agreement to conduct activities and deliver appropriate things to people. Profit or loss is shared by all members which is distributed in respect to their capital share and involvement (Hamilton and Webster, 2015).

P2 Size and Scope of various types of organisations

Each and every firm such as micro, small, medium and large which are present in market. These are organisation which differs with each other in respect to objective, size, scope and structure. Availability of funds and manpower determine goals and targets set by executive. These are aspects which determine business operations conducted in according to objectives are stated below:

  • Small scale: This type of organisation which is bigger than micro, as around 50 to 70 staff are available with administration which help them gain approx 6 million dollars of revenue (Hilton and Platt, 2013).
  • Micro scale:This aspect includes firms which are started by individual to utilise funds and members to deliver appropriate things to customers. This help executive to manage standards and livelihood; thereby get financially secured.
  • Medium scale: Business person expand branches in same city and also in various other nations. For this, approx 200 subordinates are available which help management generate 10 to 20 million dollars.
  • Large scale: This form of aspect comprises enterprise which have number of branches in same city and in different nations. Sainsbury target different market segments to enhance sales and profitability. There are around 250 to 500 employees which benefit administration to mange outlets (Portugal-Perez and Wilson, 2012).








Prime goal of this sector is to conduct adequate business activities and generate appropriate revenue form business.

This kind of firms main focus is to provide variety of items and services in respect to needs and wants of people (Prajogo, 2016).

Main motive of this sector organisation is to enhance market reach which help management to have large number of customers.

This sector includesfirms whose prime goal is to develop competitive advantage to position company higher than competitors.


Market and profit share

Micro scale firms have very small market reach and revenue gain, as enterprise has only one outlet.

Small enterprise has limited market share and profitability which is due to amount of resources.

Medium scale firms market share and revenue is lower than large but bigger than small.

Large organisation are established in different nations so there is high market share and profit.

Growth and sustainability

Micro firms require to enhance customers by opening new outlets in same city.

These form of enterprise have goal to increase outlets to enhance customer base and sales volume.



Medium organisation require to expand business and open branches in different nations.

This segment includes firms which require to maintain position and reputation in market.

Scope of Different types of Organisations:

  • Public sector: Barclays institution aim is to enhance market reach by enlarging firm in same city and other countries.
  • Private sector: The executive of Sainsbury firm goal is to expand business in different segments and increase type of items. Along this, another objective is to open new outlets in different nations and increase the customer base (Savrul, Incekara and Sener, 2014).
  • Transnational Company: Sainsbury is multinational enterprise which has outlets in more than one country which help administration to have large customer base. This help company to improve sales volume and generate adequate profit from business.
  • Market forces and economic operations: Organisation and its business operations are affected by market conditions. Government, customers and competitors are various components which indirectly influence activities. These are various tactics which are taken care by Sainsbury are stated below:
  • Scarcity and Choice: Sainsbury is supermarket which provide different variety of food items and other things. For this, management require to use resources efficiently and deliver products in respect to market trends.
  • Supply and demand: Sainsbury require to have adequate products available in store which help administration to provide things in according to taste and preference of people.
  • Income elasticity: Public purchase products in respect to amount of money available with them. Sainsbury provide different range of items which help firm to grab attention of large number of customers (Sodeyfi, 2016).


P3 Relationship between different organizational functions and their link with objectives

HR, finance, operation, marketing and sales are various department which are present in each and every organisation. These segments require to function in connection with each other, so that appropriate items and services are given by Sainsbury. This help administration enhance market position and accomplish goals and objectives. These is description of different organisation function:

  • Human resource: Recruitment, selection, compensation, training and development are various practices that are performed by employer. This help Sainsbury to have adequate workforce which help management to provide appropriate information to people about items.
  • Finance: This department responsibility is to frame financial statement that is profit and loss, balance sheet to have complete information about income and expenses of Sainsbury. Besides this, each segment is given adequate funds to execute activities effectively (Welford, 2013).
  • Operation:This unit manufacture items and provide appropriate services to customers. Sainsbury is retail store which require to have adequate variety of products to provide choice to people and make them purchase things in according to their demands.
  • Marketing:This department of Sainsbury uses promotional techniques such as online advertising, social media and personal selling to inform public about items to attract people and establish competitive advantage over rival firms.

Organization structure:

  • Functional structure:Finance, HR, operation, marketing, R&D and sales are various department which are formulated by administration to distribute workforce and provide them duties in according to their skills and abilities (Bahand Fang, 2015).
  • Divisional structure:This form of tactic define that organisation manage activities in respect to geographical area covered by them. Along this, market and products are two aspects used by management to organise business.
  • Strategic Business Unit:This form of structure define large firms which function as independent company. Administration have single range and variety of things that are provided to customers.
  • Matrix structure:This tactic specifies that management selects members from each segment to accomplish projects.

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From the above report, it can be comprehended that business environment has different organisation that is private, public and voluntary. These firms differs with each other in respect to size, scope, objective and structure. Micro, small, medium and large are various scale of enterprises which are present in market. Organisation function have relationship with each other which help administration accomplish goals and objectives. PESTEL and SWOT analysis are technique used by management to identify positive and negative impacts of macro environment. With interrelation of strengths and weaknesses with external macro factors helps seniors to design system and make it function in according to market conditions.

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  • Bah, E. H. and Fang, L., 2015. Impact of the business environment on output and productivity in Africa.Journal of Development Economics.114.pp.159-171.
  • BuÄŸra, A. and SavaÅŸkan, O., 2012. Politics and class: The Turkish business environment in the neoliberal age.New Perspectives on Turkey.46.pp.27-63.
  • Cai, S. and Yang, Z., 2014. On the relationship between business environment and competitive priorities: The role of performance frontiers.International Journal of Production Economics.151.pp.131-145.
  • Craig, T. and Campbell, D., 2012.Organisations and the business environment. Routledge.
  • Hamilton, L. and Webster, P., 2015.The international business environment. Oxford University Press, USA.
  • Hilton, R. W. and Platt, D. E., 2013.Managerial accounting: creating value in a dynamic business environment. McGraw-Hill Education.
  • Portugal-Perez, A. and Wilson, J. S., 2012. Export performance and trade facilitation reform: Hard and soft infrastructure.World development.40(7). pp.1295-1307.
  • Prajogo, D. I., 2016. The strategic fit between innovation strategies and business environment in delivering business performance.International Journal of Production Economics.171.pp.241-249.
  • Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a globalizing business environment.Procedia-Social and Behavioral Sciences.150.pp.35-45.
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  • Sodeyfi, S., 2016. Review of literature on the nexus of financial leverage, product quality, & business conditions.International Journal of Economic Perspectives.10(2). pp.146-150.
  • Welford, R., 2013.Hijacking environmentalism: Corporate responses to sustainable development. Routledge.
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