Unit 1 Business Context PPT 1 : Types of organisations and the
sectors they belong to
Blue Darrel Caparino
Doncaster College – T Level Business
Organisations
• Group of people who come together
for a common purpose
• Formed in every culture
• Formal or informal
o Formal – A private company
o Informal – family, sports
▪ Formed through social
relationships
▪ Can be formed in a formal
set up
Sectors organisations operate in
• Private
• Public
• Not-for-profit
Public Sector
• Organisations owned and controlled by
the government
• For the benefit of the whole nation or
local area
• Has 2 major administrators
o National Government
▪ Responsible for how the
country is run
▪ Formulating government
policies : fiscal, monetary,
health
▪ Creating economic
stability: Taxes, public
spending
▪ Providing public services :
NHS, education
▪ Internal and external
security and defence :
armed forces, coastguard
▪ Maintain social order :
Laws, rules, standards,
social contracts
o Local authorities
▪ Responsible for services
▪ Local infrastructure : roads,
traffic, planning, housing
▪ Health services : social
care, social services
▪ Environmental services :
waste disposal
▪ Education : fair admissions,
special educations needs
▪ Economic development :
community planning and
growth, land use.
▪ Local government act
2002 states that local
authorities are responsible
for the economic, social,
and environmental
wellbeing of its area.
Private Sector
▪ Where organisations owned and
controlled by an individual or groups.
▪ Vary in size and type
Common characteristics occur despite
size or type
▪ Reason for set up varies
▪ Can be run for the benefit of identified
community
o Example is a private school for
people with disability.
▪ Majority of business organisations are
profit-driven but there are more motives.
▪ Size of private sector organisations
▪ Size of business could inform the type
and structure it is legally allowed to
adopt
o Micro businesses – 1 to 9
employees
o Small business – 10-49 employees
o Medium businesses – 50 to 249
employees
o Large businesses – 249 above, no
limits
▪ There are 4 main types of businesses
o Sole proprietorship
o Partnership
o Co-operatives
o LLC or limited liability corporations
▪ Business organisations – set of
characteristics
o Brand name
o Mission and objectives
o Organisation structure
o Culture and values
o People
o Control system
o Information and communications
o Recording systems
o Systems and processes
▪ Reasons for existing
o Personal motives
▪ Financial freedom
▪ Making difference
▪ Personal satisfaction
o Financial motives
▪ Profit maximization
▪ Profit satisficing
▪ Increase market share
Not-for-profit or voluntary sector
▪ Third sector
▪ Other organizations in different sectors
could also be considered operating in
the third sector, depending on their
reasons for setting up.
▪ Philanthropic style of business activities
▪ There are 3 types of organisations in the
third sector
o Voluntary or community groups
▪ The Kittiwake trusts
o Registered charities
▪ BHF or British Heart
Foundation
o Non-government organisations
▪ Greenpeace
▪ Amnesty International
▪ Types of organisations that may be
considered operating in private sector
as well as third sector
o Mutual societies
▪
Unit 1 Business Context PPT 1 : Types of organisations and the
sectors they belong to
Ran by members for the
benefit of members
o Co-operatives
▪ Group of people that
come together to achieve
their shared needs and
aspirations
o Social enterprises
▪ Aims to make social
change than make profit
o CIC or community interest
companies
▪ Benefits the community it
serves
Essential values for third sector
organisations
o Helping to improve people’s lives
in some way
o Delivering essential services
o Contributing to economic growth
o Plays a vital role in supporting
communities at local levels
o Limited liability companies may
have these values, but they
emphasize that they’re not run
for personal gain.
Third sector organisations are not
exempt from failure. If it does not grow,
then it is dying.
o Hence it has to create profits to
sustain financial stability and be
able to reinvest to the
organisation and its cause.
o Financial health is still vital to
survive and grow.
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