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Introduction of Business and Business Environment

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This very study analysis the different aspects related to the three different types of companies. The three companies are Tesco, the public sector and the private sector TFL, both of whose aim is to make profit and the non-profit, charitable organization, NPSCC. In the first part, Besides analysing the different types of organizations, their purpose, size, and range are also studied here and reflected I In the second part, a deeper analysis is to be seen here that deals with the interrelationship of the various functions within every three sectors and how they are related to the process of fulfilment of the organization's aims and objectives.

LO1 Explain the different types, size and scope of organisations

Different types and purposes of organisations; public, private and voluntary sectors and legal structures

In the present world of business, different organisations can be separated from each other based on their goals and objectives. Organisations can mainly be categorised into Public, Private and Voluntary sectors.

Public Sector: The public sector falls under the category of For-Profit Organisations which are owned by not-for-profit government bodies.

Purpose of Public Sector: The main purpose of the public sector is to contribute towards the welfare of society by providing several governmental services such as transport, police and many others.

Private Sector: The private sector falls under For-Profit organisations owned by the government and private enterprises.

Purpose of Private Sector: The private sectors contribute towards the development of the economic structure and GDP of the country by generating profit.

Voluntary Sector: The voluntary sector falls under Non-Profit Organisations owned by non-governmental bodies

Purpose of Voluntary Sector: The voluntary sector helps in the advancement of society by providing various beneficial services without any profit.

Public Sector

The primary objective of any public sector is to contribute towards the welfare of society. To ensure the wellbeing of residents and their neighborhood, various beneficial products and services are provided by them (Arsi? et al., 2018). There are many organisations based in the UK that can be identified as public sectors. These UK based organisations operate under the control of the UK government. These organisations execute their business activities and strategies owing to the revenue generated by the public. To identify a few public sector bodies, Tesco is one of the most eminent names based in the UK.

Overview: Tesco is a UK based multinational company that was established by Jack Cohen in the year of 1919. The headquarters of Tesco is situated in Welwyn Garden City, England (TESCO PLC, 2021).Since its establishment, Tesco has experienced extensive prosperity and has expanded to set up shops in fourteen countries across Europe. Tesco has earned the title of the ninth-largest retailer in the world.

Products and services: Tesco was primarily involved in the retail of food and beverages. It has expanded its business activities in the field of electronics, medical facilities, insurance, clothing and many more. Tesco has implemented an online shopping website where customers can order grocery items, general commodities and various financial services. It also deals in the retail of DVDs and many internet facilities.

Purpose: The main purpose of Tesco is to help build a sustainable structure of the UK economy. The primary mission undertaken by Tesco is to provide a better and convenient life to its customers through their top-notch products, as a result increasing its brand value (Belás et al., 2019).Tesco aims to earn the loyalty of customers by providing high-quality services in an unbiased way.

Legal Structure: Tesco falls under the category of a public limited company. There are many advantages such as Tesco can advertise the sale of shares. These shares are distributed publicly through stock exchange procedure. Disadvantages also exist in the legal structure of Tesco such as sharing of profit, loss of business ownership and disagreement regarding compliance with statutory regulations.

Size and Scope:Tesco is one of the greatest public sector organisations in the UK reputed for efficient delivery of high-quality services to consumers (Fabuš, 2017). Tesco has expanded to set up 2366 outlets worldwide. Tesco has earned the title of organization with the highest rate of employment owing to the recruitment of 12,000 employees per year. These employees include graduates as well. Tesco has a total number of 366,000 staff all over the world.

Aims and objectives: The main objective of Tesco is to provide high-quality products and services to customers with maximum profit. Tesco wants to expand its reach of products to every part of society by decreasing the price of their products. Mitigation of unemployment is another objective of Tesco by providing jobs to the local community.

Private Sector

Transport for London (TfL) is an instance of an organisation based in the UK which can be categorised as a private sector. These types of organisations operate under the control of a group of individuals or enterprises. The primary objective of these organisations is to earn maximum profit from their business activities. The generated profit is often distributed among investors and stakeholders associated with the particular project. Prominent financial establishments and banks are the primary sponsors of these organisations.

Overview: The operation of most transportation systems in London, England takes place under the control of TFL. TFL falls under the division of a private company that is owned by the government. TFL was founded in 2000 to become an integral part of London's transport system (Transport for London, 2021) .TFL operates under a board of directors to fulfil the requirements of the mayor's transport strategy.

Products and Services: TFL is a private sector organisation contributing to provide a better network of transportation in London (Gaganis, Pasiouras and Voulgari, 2019).TFL offers a variety of services in the field of transportation to the residents of London. These services include efficient management of London buses, London Trams, London Underground, Docklands Light Railway as well as London River Services and cycling provisions. Regulation of taxis and 5000 traffic lights also takes place under the management of TFL.

Purpose: TFL operates under the sole purpose of generation of profit. This profit has an extensive impact on the development of a sustainable economic structure in London. TFL pays attention to a higher rate of employment by recruiting more workers (Hrechyshkina and Samakhavets, 2019).The brand value of TFL has reached an immeasurable height owing to the process of their operations.

Legal Structure: TFL is a private sector organisation. The operation of TFL is executed under the control of a group or solitary entities. The UK government has no control whatsoever over the operations of TFL. Owing to sponsorship from banks, stakeholders play a major role in TFL. Operations of TFL are regulated by Greater London Authority Act (Khan, Çera and Nétek, 2019).TFL possesses three subsidiary organisations that fall under the compliance of Companies Act 2006. Sharing and selling of stocks are not allowed in TFL.

Size and Scope: The scope of TFL being a private sector company is to improve their services of transportation for the benefit of residents of London. This will ensure that TFL gains an advantage over its competitors. TFL possesses the ability to expand covering more areas, resulting in convenient travel throughout London (Kristinae et al., 2020).Nearly 50% of TFL’s budget, which is the great amount of £10.4 billion, is generated from fares and funding of the Greater London Authority.

Aims and Objectives: The main objective of TFL is to provide a better model of transportation throughout London and help build a sustainable economy in the UK.

Charitable Sector

National Society for the Prevention of Cruelty to Children (NSPCC) is a charitable sector that comes under the category of Non-profit organisation. This organisation assists in the welfare of society with the cooperation of volunteers and trustees. This type of organisation normally operates under the control of these volunteers.

Overview: The National Society for the Prevention of Cruelty to Children (NSPCC) is a charitable sector that campaigns and operates with the objective of child protection (NSPCC, 2021).This organisation is based in the United Kingdom and the Channel Islands.

Products and Services: NSPCC provides therapeutic services to assist children to get over trauma from abuse (Lee, 2017). The organisation also supports parents to take appropriate decisions for their children and caring for them.

Purpose: The purpose of NSPCC is to obtain donations from prominent figures and entities which will help to support their cause.

Legal Structure: The only source of any kind of fund or sponsorship is the donations received from members, volunteers, government and eminent personalities (Likoko and Kini, 2017).NSPCC does not possess any legal status as it is an independent organisation and does not need to pay any revenue to the government.

Size and Scope: The scope of NSPCC is extensively dependent on the donations they receive. NSPCC is planning to expand to other countries (Möller, Nenonen and Storbacka, 2020).There are currently over 18,300 volunteers with 2,400 staff in this organisation.

Aims and Objectives:The primary objective of NSPCC is to assist children in their times of crisis and provide them counselling to help them move on from trauma. NSPCC also aims to convince various influential personalities for donations which will help their cause to a great extent.

Size and scope of a range of different types of organisations

The primary motive of an organisation is distinguished from another based on the workforce, legal status and shares in the market. Different organisations operate to fulfil their own distinctive needs. Some organisations operate to solely generate profit. While some organisations work for the welfare of society. Even an organisation that is not categorised as multinational and without a sufficient number of employees can earn profit. There exist four types of different organisations which are as follows,

  • Micro
  • Small
  • Medium
  • Large

Micro Organisation:

Any form of business where the number of employees is less than 10 can be referred to as a Micro organisation. About 75% of businesses in the UK are micro organisations where the operations of business take place under the control of one individual. These types of micro organisations are present in the UK in huge numbers. These forms of businesses help to develop a stable source of income for progressive countries (Sivarajah et al., 2020).In this type of businesses, employees can enjoy freedom which ultimately benefits the growth of the company. Increasing competition is the only big disadvantage faced by these types of businesses.

Example: Boss Brewing Company is an example of a micro organisation based in the UK. It is a brewing company led solely by women in South Wales.

Small Organisation:

Any type of business organisation with a headcount of employees less than 50 can be termed as a Small organisation. These types of organisations are generally involved in the retail of commodities. Their primary objective is to increase their rate of sale by collaborating with other organisations. These organisations possess efficient management which helps them gain a competitive advantage. Limited funding is the only disadvantage faced by them. Their sales turnover is slightly higher than micro organisations.

Example: Davison Canners is an example of a UK based small organisation that involves the retail of confectioneries.

Medium Organisation:

 Enterprises with the employment of workers less than 240 can be referred to as Medium Organisation. They work to provide financial services to customers (Yang and Gabrielsson, 2017).The biggest challenge these businesses come across is gain the trust of customers and maintain their loyalty. Also funding is a huge problem.

Example: Captify is a prominent example of a UK based medium enterprise founded in 2011 involving search intelligence.

Large Organisation:

Organisations with employees over 1000 and annual revenue over £1 billion can be termed as large enterprises. These enterprises possess the greatest scope among the other types of organisations.

Example: Unilever is an example of a UK based large enterprise with annual revenue of over £113.85 billion.

In the table below, details of these four enterprises regarding their size and scope have been discussed.


Micro Organisation

Small Organisation

Medium Organisation

Large Organisation


Smallest with less than 10 workers.

Less than 50 workers.

Less than 240 workers.

Largest with over 1000 workers.


Confined to local areas but a better chance of income.

Scope better than Micro enterprise but confined to local areas.

Can expand within city limits.

Greatest scope and can expand to foreign countries.

LO2 Demonstrate the interrelationship of the various functions within an organisation and how they link to organisational structure

Interrelation of various functions within the organization Tesco:

The document explores how the various functions of Tesco, a British multinational company, are related and connected. In 14 countries, the company has established its stores worldwide and that has been possible due to the correlation within the various functional departments. The company has various functional areas such as Administration, Customer Service, ICT, Finance, Sales Department, Production and Sales department. These departments have their particular functional duties and one's action casts effects on another as they work as a chain system. For example, if the supplier department doesn’t supply timely and adequately, the production department will suffer therefore the whole system is to suffer (Alexander, 2020). The purpose is to run all the units aptly and on time so that customer satisfaction is achieved to gain profit.

Finance Department:

The finance department plays a crucial role in running other units in Tesco playing some important roles. The expenditure and earning record is observed by this department. The cash flow for debts, worker's wages, and other investments are also observed by the finance departments. Timely decisions regarding financial investment by analysing the fruitful production of the company is in the hands of this department. If it doesn’t do these functions, the sales departments may not show logical accounts of profit or loss.

Human Resources Department:

The company needs adept employees and their training to make them up to date or familiar with the new trend is the responsibility of the Human Resource unit. It keeps data regarding the employee’s personal information, individual strengths, weakness, potential areas, needs, and problems. The smooth function of this department influences production, sales, and other functional areas of the company Tesco.


One of the most important functional areas of the company is the marketing region. It researches on market’s trends, preferences, after collecting data, queries. The care and service of customers fall under the marketing unit. It looks after the customer's satisfaction, complaints, and choices (Aiello et al., 2020). This observation helps the managing unit, finance unit, and other units take decisions, make the required changes, and corrections in the production. Sales promotion and advertising for the increase in sales are also in the hands of the marketing department. All of these important functional areas help the whole system run properly and flourish. If the marketing unit fails to popularize its company products, sales will decrease. As a result, the company will not be able to harborlaborers that lead to financial collapse.

Production unit:

If the production is not possible or well enough, what is the use of investing, the adequate and targeted amount of production meets the demand in the market thereby allowing the company to reign in the market (Alexander, 2020). In Tesco, the production unit is responsible for detailing products, vehicles, and offices. Its responsibility is wide. It looks after the delivery of products to the customer timely, making sure that there is enough stock and not defective.


Information and communication technology is a backbone in the age of the digital market. It takes care of the new trend in the market, broadcasting, and marketing digitally surpassing the borders of the country. It brings new technology, makes the communication between the parties easy and instant. Several ingredients of the company are brought together with the help of the ICT.

Administrative Department:

The department makes a systematic way of working so that coordination and balance among the other departments are made idle and the business goes on smoothly. The department monitors all other units for uninterrupted running of the business and it sits at their development. Communication between the customers and the staff, manager, and Communications is made easy by ICT through proper administration.


From this study, it can be concludedwith a proper understanding of business and its related functions and environment is obtained. Through this study, it is known about the various aspects of organisations like Tesco,NSPCC and their impact on our society.Detailed analysis of size and scope of various organisations is acquired.The unique working processes of various organisations have also been explored in this study.


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