Unit 2 P1 Explain The Purpose Of Business Organisations

The main reason why need to explain anything about business organisations because they are the objectives to the profit and there is a need for them. The markets need different type of businesses for different products or services and they need different leadership that will mean that the business organisation should be different too. The organisations are existing to provide services or produce something that people want to consume. They are organising the company over the customer need, what mean that they are arranging the resources around the function what will help to achieve that need.
The first how we can make a difference between organisations is that they are working for profit or they are a nonprofit organisation. The main difference between that two that one is producing or giving a service but cannot make any profit out of it – these are provided by the public sector. If the organisation is making profit out of doing it, we call the private sector. We need to mention that non-government organisations are part of public sector – they undertake part of the government work. The third type here is the voluntary organisation where are peoples join together to offer a service voluntarily. The main purpose is not the profit to the members that mean all the profit what coming out of their service is going back to the organisation.
The primary sector is using or exploit directly the natural resources – for example fishing and agriculture. The secondary sector includes industries who producing or transforms materials to usable product and can also include here assembly process – for example, oil refiner, house constructors. The tertiary sector is providing commercial services for the primary and the secondary sector and supports the production process – for example, transport or insurance. In the innovation sector, the products are being developed or invented and later sold to the secondary