Purpose, Size And Structure Of Different Types Of Organization


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Answer :
Organization Selected : Sainsbury


In an economy, small and large-scale organizations play a most important role in order to provide appropriate growth. The business environment is also a factor that influences in decision-making process of firm. For this, the management of an organization needs to make an impactful strategy to reduce the negative impact of these. Business environment is categorized in two different factors as internal and external that has direct impact on organizational activities (Reed and et. al., 2013). Internal environmental factors are controllable but external environmental factors are uncontrollable, so for this management needs to analyse them properly to control its negative impact easily. This report is based on Sainsbury which is a second largest supermarket chain. This firm was established in the year of 1869 by John James Sainsbury. This project determine Purpose, size and structure of different types of organization and different business functions. It also determine  Impact of internal and external factors on firm and the interrelation of the firm with macro-environmental factors.


P1 Types and Purpose of private, public and voluntary organization and their legal structure

In an economy, different types of organizations are established in order to get higher profit and desirable growth. All these activities of an organisation is based on its target objectives that are requires to accomplish properly. Types of these organizations are -

Public sector organization – This types of organisations are basically established to provide necessary services to each and every individual. Government of a country has proper control on these firms to manage their activities properly (Reinhardt and Stavins, 2010). Major working criteria of these companies are providing education, social care services, electricity, highway, rural area development, water facilities and so on. All these working activities and facilities are based on individual's requirement and need. For example NHS is a public sector organisation which is working to provide health care services to needy people.

Purpose of NHS -

  • Main purpose of this organisation is to provide health care services to public of a country.
  • Build healthy environment of everyone.
  • Resolve issues and disease of clients with dignity and respect.

Legal structure – Public sectors organisation are basically owned by state, central and local government of a country. Basically, state government provides funds to these organisations, central authorities make proper control on functional approaches and local bodies bring management activities of such organisations.  

Private sector organization – These are privately owned organisations which are basically established to getting higher growth and profitability. On these organisations, proper control is held by its owner or an individual person. For example Sainsbury is a private sectors organisation that provide different products and services to customers to maximise their profitability and growth easily (Shigang, 2010).

Purpose of Sainsbury-

  • Provide quality products and services to customers on minimum cost.
  • Maximise number of customers of products and services.
  • Getting maximum growth and income easily.

Legal structure -

  • Partnership – This is a legal agreement between two or more candidates to operate business activities in effective manner. In this process, all the operational and functional activities are operate through mutual understanding of partners.

Voluntary sector organisation – These types of organisations are basically works for social care activities and welfare. These firms are basically owned by individuals and group of people. Government has proper control on these organisations to mange its working activities. For example Oxfam is a voluntary sectors firm which is working to reduce poverty from the country.

Purpose of organisation -

  • Provides health care and educational services to poor and needy people.
  • Minimise level of poverty from the country (Karagiorgos, Drogalas and Giovanis,  2011).

P2 Size and scope of different organizations

Each and every business organisation is basically established to getting maximum profits and desirable growth easily. For this, manger of an organisation is create their future objectives and goals to manage operational and functional activities in effective manner. Size and scope of an organisation is based on these objectives. Size of a business organisation is consider employees strength, organisational resources and their assets that are used to manage target objectives and goals. Scope of a firm is determine geographical area, number of stores and existing services. Size and scope of different organisations are given below -


  • Size and scope – NHS is public sector organisation which was basically established to provide health care services to their clients. This firm was basically perform in 1948 for health as well as social care services (Kolk, 2016).
  • Vision and mission – NHS is work to resolve issues and problems of clients in effective manner. Main objective of this firm is to manage health care activities on the bases of individuals problems and their issues. Their major vision is to established better treatments for their clients.


  • Size and scope – Sainsbury is a supermarket chain of that provide different products and services to their customers on the bases of their requirement need. This organisation was established in the year of 1869 by John James Sainsbury. This firm has various stores in worldwide in which approx. 1,81,900 employees are provide their quality services.
  • Vision and mission – This is a second largest supermarket chain in which employees provide different products and services to their customers. Main objective of this organisation is to provide quality services to customers on the bases of their requirement. Vision of this firm is to maximise number of customers in their stores to maximise profitability and growth easily (Nishitani and et. al., 2012).


  • Size and scope – Oxfam is a large scale organisation which is works for social care activities in a country. Size and scope of this organisation is very vast as they provide social services to different clients.
  • Vision and mission – This is a voluntary sector organisation which was basically established to remove poverty from the country.

P3 Interrelation between different organisational departments and their link to objectives

In a business organisation, several employees are provide their appropriate contribution in order to getting future objectives and goals easily. For this, manager analyse skills and abilities of them to provide them appropriate responsibility. On the bases of this, they distinguish them in different departments as-

Marketing – This department of an organisation is working to introduce products and services in effective manner (Osterwalder and Pigneur, 2010). Through this, they can easily maximise sales and growth of firm. In this organisational approach, marketing executive uses different tool as advertising, e-marketing and door to door promotion to introduce organisational products and service effectively.

Human resource – This division of an organisation is works to manage operational and functional activities properly. In this process, human resource manager of firm play a most important role in order to analyse firm's future objectives to accomplish them through different ideas and techniques. HR manager is conduct Recruitment and selection program to hire fresh and skilled candidate in organisation.

Finance – This division of organisation is working to manage funds and investment in effective manner. Finance manager of Sainsbury is works an adviser who provide appropriate suggestion for investment and future outcomes. They are basically manage all financial statement of organisation (Pikka, Iskanius and Page, 2011).

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As per the above report, it has been summarised that the business environment is a most important factor that has direct impact on profitability and growth of organisation. These factors are basically classify in two different aspects as internal and external. These both factors are very different to each others. Internal environmental factors are manageable but external environmental factors are intractable, so for this administration needs to analyze them properly to control its negative impact easily.

You may also like: Ethics In Business While Conducting Business In Specified Markets


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