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This report elaborates the details about different types of business organizations such as public, voluntary and private enterprises. Their major objectives and operational purpose will be discussed in a brief manner. The assignment will explore the details regarding the legal structure that are followed by these organizations. The impact of external and internal business environment on the operational activities as well as the decision making process of Marks & Spencer will be discussed. The strengths and weaknesses have been discussed in order to develop beneficial strategies for the company. The importance of coordination and interrelationship between the different functional departments of M&S will be explained in a detailed manner.

LO 1

P1 Explain different types and purposes of organizations; public, private and voluntary sectors and legal structures for the chosen organizations

In the present scenario, different types of organization are facing quite tough competition in the marketplace. The market is being saturated day by day and the competition is growing at an exponential rate making it tough for the organizations to sustain in the market. Thus, it is highly significant for an organization to analyze the business environment to sustain in the market full of competition. The different types of organization are public organizations, private organizations, and voluntary organizations. The purposes of these organizations differ from one another that are mentioned below in details.

Public sector:

The public sector comprises of the firms, which are state-owned or government owned. The organizations categorized under public sector owned and directed by the government of the country. The main purpose of the organization associated with the public sector is to provide the people of the city with good quality products and services (Bouckaert et al., 2016). The firms operating in the public sector are focused on meeting the requirements of the people of the country and the profits made by the organizations are taken by government or ploughed back for investment. For example, Network Rail is organization in public sector.

Private sector:

The private sector composes of the firms that are owned and operated by an individual or groups of individual. The main purpose of the firms operating in the private sector is to generate profit for the company and give it to the owner of the firm (Hayter, 2015). The organizations in the private sector are independent of the government of the country but have to follow and obey some legal rules and regulations to run their business in the country. For example, Marks and Spencer is Private Sector Company.

Voluntary sector:

Voluntary sector are quite similar to the public sector. The voluntary sector composes of the organizations looking forward to meet the requirements of the society and its people. The main purpose of organizations operating in voluntary sector is to look after the welfare of the society and enrich the society. The organizations do not aim to make profits and are independent of the government and follows charity-based approach (Ncvo.org.uk, 2018). For example, Amnesty International is an organization in voluntary sector.

Legal structure:

Sole Proprietorship:

Sole proprietorship is the least synchronized form of a firm with minimum legal start-up cost. The firm is owned by one individual and the profits generated are tariff as private income (Managementhelp.org, 2018). The major demerit is “unlimited personal liability” the owner might face like claims, debts, and taxes against business. For example, Moore and Co is under Sole Proprietorship.


Partnership business is simple to form and is able to deliver additional managerial and financial resources. The partners can borrow funds, hire individuals, and operate business. However, the profits made are again excised as personal income and the partners are liable personally for taxes and debts. For example, Social Chain is a partnership company.

Limited Partnership:

It is a special agreement and permits the partners to neglect liability of personal asset. Specialized income tax rules are implemented for Limited Partnership. For example, Gibson Dunn is a partnership firm.



Amnesty.org. (2018). Home. [online] Available at: https://www.amnesty.org/en/ [Accessed 15 Jun. 2018].

Argyris, C., 2017. Integrating the Individual and the Organization. Routledge.

Blog ¦ TheCompanyWarehouse.Co.Uk. (2018). Definitions of Small and Medium Business in the UK. [online] Available at: https://www.thecompanywarehouse.co.uk/blog/what-is-an-sme [Accessed 15 Jun. 2018].

Bouckaert, G., Peters, B.G. and Verhoest, K., 2016. Coordination of Public Sector Organizations. Palgrave Macmillan.

Businesscasestudies.co.uk. (2018). Organisational structure and careers - The role of training and development in career progression - Marks and Spencer | Marks and Spencer case studies and information | Business Case Studies. [online] Available at: https://businesscasestudies.co.uk/marks-and-spencer/the-role-of-training-and-development-in-career-progression/organisational-structure-and-careers.html [Accessed 15 Jun. 2018].

Colourpoint.co.uk. (2018). Managing Business Resources. [online] Available at: http://colourpoint.co.uk/sample_files/1298564666.pdf [Accessed 15 Jun. 2018].

Corporate.marksandspencer.com. (2018). Marks & Spencer announces proposed changes to UK Head Office structure. [online] Available at: https://corporate.marksandspencer.com/documents/reports-results-and-publications/press-releases/201617/proposed-changes-to-uk-head-office-structure-.pdf [Accessed 15 Jun. 2018].

Hayter, C.S., 2015. Public or private entrepreneurship. Revisiting motivations and definitions.

Managementhelp.org. (2018). Legal Forms and Traditional Structures of Organizations. [online] Available at: https://managementhelp.org/organizations/structures.htm [Accessed 14 Jun. 2018].

Marksandspencer.com. (2018). Welcome to Marks & Spencer. [online] Available at: https://www.marksandspencer.com/ [Accessed 15 Jun. 2018].

Martínez, A.B., Galván, R.S. and Alam, S., 2017. Financial Analysis of Retail Business Organization: A Case of Wal-Mart Stores, Inc. Nile Journal of Business and Economics3(5), pp.67-89.

Ncvo.org.uk. (2018). NCVO - Home. [online] Available at: https://www.ncvo.org.uk/ [Accessed 14 Jun. 2018].

Network Rail. (2018). Home Page. [online] Available at: https://www.networkrail.co.uk/ [Accessed 15 Jun. 2018].

ons.gov.uk (2018). GDP per Head: Table P - Office for National Statistics. Ons.gov.uk. Available at:https://www.ons.gov.uk/economy/grossdomesticproductgdp/datasets/gdpperheadtablep [Accessed 24 Apr. 2018].

Rangan, K., Chase, L. and Karim, S., 2015. The truth about CSR. Harvard Business Review93(1/2), pp.40-49.



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