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Purpose, Size And Structure Of Different Types Of Organization

University: LONDON CHURCHILL COLLEGE

  • Unit No: 1
  • Level: Undergraduate/College
  • Pages: 7 / Words 1827
  • Paper Type: Assignment
  • Course Code:
  • Downloads: 3549
Organization Selected : Sainsbury

INTRODUCTION

In an economy, small and large-scale organizations play the most important role in order to provide appropriate growth. The business environment is also a factor that influences in decision-making process of a firm. For this, the management of an organization needs to make an impactful strategy to reduce the negative impact of these. The Business environment is categorized into two different factors internal and external that have a 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 their negative impact easily. This report is based on Sainsbury which is the second-largest supermarket chain. This firm was established in the year of 1869 by John James Sainsbury. This project determine the Purpose, size and structure of different types of organizations and different business functions. It also determines the Impact of internal and external factors on the firm and the interrelation of the firm with macro-environmental factors.

TASK 1

P1 Types and Purpose of Private, Public and Voluntary Organizations 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 are based on its target objectives that are required to be accomplished properly. Types of these organizations are -

Public sector organization - These types of organisations are basically established to provide necessary services to each and every individual. The government of a country has proper control over these firms to manage their activities properly (Reinhardt and Stavins, 2010). The major working criteria of these companies are providing education, social care services, electricity, highways, rural area development, water facilities and so on. All these working activities and facilities are based on individual requirements and needs. For example, NHS is a public sector organisation which is working to provide health care services to needy people.

Purpose of NHS -

  • The main purpose of this organisation is to provide health care services to the public of a country.
  • Build a healthy environment for everyone.
  • Resolve issues and diseases of clients with dignity and respect.

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

Private sector organizations - These are privately owned organisations which are basically established to get higher growth and profitability. In these organisations, proper control is held by its owner or an individual person. For example, Sainsbury is a private sector organisation that provides 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 at a minimum cost.
  • Maximise the 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 an effective manner. In this process, all the operational and functional activities are operated through the mutual understanding of partners.

Voluntary sector organisation - These types of organisations basically work for social care activities and welfare. These firms are basically owned by individuals and groups of people. The government has proper control over these organisations to manage its working activities. For example, Oxfam is a voluntary sector firm which is working to reduce poverty in the country.

Purpose of organisation -

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

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P2 Size and scope of different organizations

Each and every business organisation is basically established to get maximum profits and desirable growth easily. For this, the manager of an organisation is creating their future objectives and goals to manage operational and functional activities in an effective manner. The size and scope of an organisation is based on these objectives. The size of a business organisation considers employees' strength, organisational resources and their assets that are used to manage target objectives and goals. The scope of a firm is determined by geographical area, number of stores and existing services. The size and scope of different organisations are given below -

NHS

  • Size and scope - NHS is a public sector organisation which was basically established to provide health care services to their clients. This firm was basically performed in 1948 for health as well as social care services (Kolk, 2016).
  • Vision and mission - NHS works to resolve issues and problems of clients in an effective manner. The main objective of this firm is to manage healthcare activities on the basis of individual problems and their issues. Their major vision is to establish better treatments for their clients.

Sainsbury

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

Oxfam

  • Size and scope - Oxfam is a large-scale organisation which is works for social care activities in a country. The 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 provide their appropriate contribution in order to getting future objectives and goals easily. For this, managers analyse skills and abilities to provide them with appropriate responsibility. On the basis of this, they distinguish them in different departments as

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

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

Finance - This division of the organisation is working to manage funds and investment in an effective manner. The finance manager of Sainsbury works as an adviser who provides appropriate suggestions for investment and future outcomes. They basically manage all financial statements of organisation (Pikka, Iskanius and Page, 2011).

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CONCLUSION

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

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

REFERENCES

  • Reed, O. L. and et. al., 2013. The legal and regulatory environment of business (p. 328). McGraw-Hill/Irwin.
  • Reinhardt, F. L. and Stavins, R. N., 2010. Corporate social responsibility, business strategy, and the environment. Oxford Review of Economic Policy. 26(2). pp.164-181.
  • Shigang, Y., 2010. Competitive strategy and business environment: The case of small enterprises in China. Asian Social Science. 6(11). p.64.
  • Karagiorgos, T., Drogalas, G. and Giovanis, N., 2011. Evaluation of the effectiveness of internal audit in Greek Hotel Business.
  • Kolk, A., 2016. The social responsibility of international business: From ethics and the environment to CSR and sustainable development. Journal of World Business. 51(1). pp.23-34.
  • Nishitani, K. and et. al., 2012. Are firms' voluntary environmental management activities beneficial for the environment and business? An empirical study focusing on Japanese manufacturing firms. Journal of environmental management. 105. pp.121-130.
  • Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a handbook for visionaries, game changers, and challengers. John Wiley & Sons.
  • Pikka, V., Iskanius, P. and Page, T., 2011. The business enabling network-a tool for regional development.International Journal of Innovation and Regional Development. 3(3-4). pp.324-344.
  • Pulver, S., 2012. Business and the Environment.
  • Avramenko, A., 2012. Enhancing students' employability through business simulation. Education+ Training. 54(5). pp.355-367.
  • Bovee, C. L., Thill, J. V. and Raina, R. L., 2016. Business communication today. Pearson Education India.
  • Cavalcante, S., Kesting, P. and Ulhøi, J., 2011. Business model dynamics and innovation:(re) establishing the missing linkages. Management Decision. 49(8). pp.1327-1342.
  • Hair, J. F., 2015. Essentials of business research methods. ME Sharpe.
  • Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University Press, USA.
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