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Business Environment 1
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Since different businesses attempt to do different things, different types of people are responsible for starting them in the first place. Three Types of Organisations need to be considered:
Public Sector: owned and run by the Government for the people. People pay taxes to the Government and this money is used to finance most of the public sector: central government: defence, national health service, social security, prisons, police, roads, universities. local government: primary and secondary education, refuse collection, libraries, social services, council housing, roads, parks and sport facilities. The public sector at the same time:
provides a large range of services in UK. Part is provided free of charge to consumers, such as schools, and prices are charged for others, such as entrance fees to sport facilities. produces some of the goods and services like education and health care. buys in products to help it provide various services, such as defence means, road building services, equipment for parks, etc. Public corporations: owned by central government, where a minister appoints a chairperson and board of directors to run the company on the Government behalf. Public corporations are organizations which receive grants from the Government and also raise finance from the public (such as BBC and Royal Mail). The main aims are provide essential public services and use resources well for the benefit of the community.
Private Sector: owned and run by private individuals: sole traders, partnership, companies (private and public), franchises, etc. This sector gets finance from: sole trader and partnership: personal savings, bank loans, government grants, trade credit, sole traders could form a partnership. companies: sell shares in the company.
The main aim is make profit and growth, increase market share and maximise sales.
Voluntary Groups: voluntary groups are not owned by any individual people. However, someone will be responsible for ensuring that it sets targets and budgets and does what it is set up to do. In order to survive they normally must at least break-even (e.g. spend no more than they take in through fundraising, grants and donations, etc.). The purpose is to help particular types of people and organizations, such as guide dogs for the blind, Oxfam, etc.
The Stakeholders are people, groups or organizations that have interest or concern in an organization: they can affect or be affected by the organization's actions, objectives and policies. The term stakeholder encompasses a vast array of groups that have an interest in the organization, such as creditors, managers, employees, government, shareholders, suppliers and the community from which the business draws its resources: they are interested in what happens in a business and how activities are managed. For instance the stakeholders of Tate&Lyle are (www.tateandlyle.com): Shareholders
Sugar cane growers
Shareholders: Tate&Lyle is a public Limited company with shareholders all over the world: they are the owners and each of them has purchased company’s shares. Part of the company's capital comes from payment for shares. The shareholders are mainly interested that Tate&Lyle make profit in order to earn more money. The success of the business decides if the share price is high or low which makes shareholders know from their shares if they are making a profit or not. The shareholders decide who stays or goes: they elect directors and if the company is performing badly they can sell their shares and this makes it easier for someone else to take over because the share’s price has dropped.
Employees: for them one of they main issue is to work...