Business Environment. Hnd. Level 5 Essay
TASK 1: Understand the organisational purposes of businesses
1.1 Organisation is group inside the society that organises and distribute task to achieve certain goal through following some strategy. There are different types of organisation and below I will discuss the purpose of certain organisations.
Public company: Public limited company is a social organisation which gives limited liability to its members. The objective of a public limited company do not only sets its own aim and purpose moreover these aims and purpose can be related to social environment related. For example; provide employment for disadvantaged labour market.
Private company: Private Company’s ownership is private. Private company may issue stock and can have shareholder however they cannot trade with public. It can keep share for family members and friends. Main purpose of private company is to have full control of the business. For example Mar’s is a family company and all shareholders are family member or friends.
Voluntary organization: Voluntary organisation’s main purpose is to give support to the society to help growing and educate them. These type of organisations are mostly charity organisation with different types of social and environmental goals.
Cooperatives: When a number of people and business work together to meet their mutual demand then they form cooperative business organisation. The main objectives of cooperative are to distinguish them from other business and they mainly focus on the members of the business.
Charitable organisations: Charity organisation are mostly non-profit organisation and it have philanthropic goals e.g. education, religion, environment, wildlife, weather change, poverty and many other activities related to public interest or for common good.
1.2 Objectives of different stakeholders are as follows; Stakeholders | Extent to which an organisation meets the objectives of different stakeholders | a. Shareholder |
1.1 Organisation is group inside the society that organises and distribute task to achieve certain goal through following some strategy. There are different types of organisation and below I will discuss the purpose of certain organisations.
Public company: Public limited company is a social organisation which gives limited liability to its members. The objective of a public limited company do not only sets its own aim and purpose moreover these aims and purpose can be related to social environment related. For example; provide employment for disadvantaged labour market.
Private company: Private Company’s ownership is private. Private company may issue stock and can have shareholder however they cannot trade with public. It can keep share for family members and friends. Main purpose of private company is to have full control of the business. For example Mar’s is a family company and all shareholders are family member or friends.
Voluntary organization: Voluntary organisation’s main purpose is to give support to the society to help growing and educate them. These type of organisations are mostly charity organisation with different types of social and environmental goals.
Cooperatives: When a number of people and business work together to meet their mutual demand then they form cooperative business organisation. The main objectives of cooperative are to distinguish them from other business and they mainly focus on the members of the business.
Charitable organisations: Charity organisation are mostly non-profit organisation and it have philanthropic goals e.g. education, religion, environment, wildlife, weather change, poverty and many other activities related to public interest or for common good.
1.2 Objectives of different stakeholders are as follows; Stakeholders | Extent to which an organisation meets the objectives of different stakeholders | a. Shareholder |
References: * BPP — Organisations, Competition and Environment (BPP Publishing, 2003) * ISBN: 0751712469 * Brewster D — Business Economics (International Thompson Business P, 1998) * ISBN: 1861524250 * 78 * Dawes B — International Business: A European Perspective (Nelson Thornes Publishers, 1995) * ISBN: 0748718605 * Dicken P — Global Shift Transforming the World Economy (Paul Chapman Publishing, 1998) * ISBN: 1853963674 * Dunnett A — The Macroeconomic Environment (Prentice Hall, 1997) ISBN: 0582305810 * Griffiths A and Wall S — Applied Economics (Financial Times Prentice Hall, 2001)