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The business environment is remarked as a direct relationship between a successful management as well as the impact and influences on the environmental changes. In the economic aspect, business includes the activities such as purchasing, extraction of sales those are performed for earning money.  In the economic aspect, there are various types of organisations such as private, voluntary and public organisations those are divided between the retail industry, service industry and a charity industry. Moreover, various organisations are required to manage their internal as well as external environment. In this study, there is the chosen of three organisations based on private, public and voluntary and those are Sainsbury, British Heart Foundation and NHS. Moreover, there is a brief description of the scope, size and purpose of the organisations with a critical analysis of their relationship. On the other hand, there is a brief demonstration of the interrelationship of the organisations and there is a positive and negative impact on the business is discussed. In the last section, there is the internal strength and weakness is shown


P1 Explaining the purpose and legal structure of private, public and voluntary organization

In the public, the voluntary and private organization there exist various types of purpose and legal structure those are helping in terms of achieving their target. The public sectors are not owned by any individual rather than they are run with the help of government. In the view of Prajogo (2016, p.250), people are paying the taxes to the government and from that money are used for the finance purpose of the public sector. The main purpose of the public sector is to provide the immense amount of care to the public's and those resources are used for the benefit of the public.

The private sectors are owned as well as run by private individuals. The private individuals are responsible for any kind of problem that is creating trouble for the organisation. The main purpose is to grow their business and increase their profits. As opined by Hamilton and Webster (2015, p.50), the private sector's mainly includes the franchise, companies both in public and private sectors, sole traders as well as the partnership. The legal structure of private sector mainly includes the supporting them for helping to grow their business.

The voluntary organisations are not owned by any individual person but it is run by a group of people for helping the people those are in needs. In the view of Wild et al. (2014, p.65), there will be some persons those are responsible for setting the budget or target of the voluntary organisation. The main purpose of the organisation is to guide or help the people those are in need.

P2 Explaining the size and scope of the organisation

There are various types of organisations and those organisations are categorised into three sectors: private sector, voluntary sector and public sector organisations. The purpose, scope and size of all the organisations are not same. In the opinion of Bryman and Bell (2015, p.100), the public sectors are run by the government for the people benefits. The private sectors are run by a private individual and the voluntary organisations are not owned by any individuals.

Public organisation - NHS

The main purpose of NHS is to provide essential care and support to the people those are in need. Moreover, NHS has also the purpose to use their resources for the benefit of the community. In the opinion of Crane and Matten (2016, p.45), a public organisation has some of the legal structure as well for having a better environment. The legal structure of NHS is governed by the National Health Service Act 2006. Moreover, in the present version of NHS, it is governed by the health and social care act 2012.

Voluntary sector - British heart foundation

The main purpose of British heart foundation is to fight against the heart diseases those are creating the problem. There is much risk in terms of heart diseases in the UK thus, the British heart foundation has taken the initiative for curing all the heart problem of the root. The Board of Trustees is mainly responsible for the governance as well as the strategy of the British Heart Foundation (bhf.org.uk 2017).

Private sector - Sainsbury

The main purpose of the Sainsbury is to be on the top of the competitive market and fulfil all the requirements of the customer demands. Sainsbury has an objective to create as much profit as possible. Sainsbury has matrix structure which allows the company to adopt any kind of changes because it is flexible in nature (sainsburys.co.uk 2017).


Belás, J., Demjan, V., Habánik, J., Hudáková, M. and Sipko, J., (2015). The business environment of small and medium-sized enterprises in selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management, (1), p.95.

bhf.org.uk (2017), About us, Available at:  https://www.bhf.org.uk/ [Accessed on: 3 November 2017]

Boons, F. and Lüdeke-Freund, F., (2013). Business models for sustainable innovation: state-of-the-art and steps towards a research agenda. Journal of Cleaner Production45, pp.9-19.

Bryman, A. and Bell, E., (2015). Business research methods. USA: Oxford University Press.

Cai, S. and Yang, Z., (2014). On the relationship between business environment and competitive priorities: The role of performance frontiers. International Journal of Production Economics151, pp.131-145.

Crane, A. and Matten, D., (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. USA: Oxford University Press.

Demil, B., Lecocq, X., Ricart, J.E. and Zott, C., (2015). Introduction to the SEJ special issue on business models: business models within the domain of strategic entrepreneurship. Strategic Entrepreneurship Journal9(1), pp.1-11.

Hamilton, L. and Webster, P., (2015). The international business environment. USA: Oxford University Press.




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