Business and Business Environment

Activity 1

P1 Different types and purposes of organisations; public, private and voluntary sectors and legal structures

Business environment is majorly classified into three different sections, that are- Public, Private and Voluntary. Here, companies dealing in such sectors are differentiate on the basis of size and scope, mission and vision as well as business structures, in following way:

Private Organisation –

Companies dealing in this sector are generally run their business with  common purpose i.e. to earn high profitability. They give a large contribution to government of a country in improving and enhancing economy for sustainable development. But such companies also have restrictions to trade their shares publicly. TESCO, is one the best retailers of UK that deals within private sector and operate business in many countries. It is headquartered in Welwyn Garden City, of England and established in 1919 by Jack Cohen.

• Purpose –Since every private company works on a common purpose i.e. to generate high profitability. But in context with TESCO, this multinational company works majorly to become the market leader in grocery sector, by offering a wide range of groceries.
• Legal Structure – As legal structure of private companies differentiate on the basis of ownership, like sole trader, partnership and more. Therefore, in context with TESCO, it  runs business as sole traders where Jack Cohen give entire responsibilities to its Board of Directors to take major decisions of business, to run organisation in ethical manner.
• Stakeholders– It includes all associated persons of a company that give support to run business effectively. It includes customers, employees, shareholders, investors, Board of Directors and more. In this regard, currently more than 460k workers are working within 6,569 stores of TESCO for completing demand of customers on time.

Public organisations –

It includes those organizations which are run by government, with purpose to enrich societies and fulfil basic needs of people. They supply products on minimum price level so that local people and communities can get better livelihood. Therefore, instead of profit making they work to enhance living standard of people. The Crown Prosecution Service is a public sector company which conducts criminal prosecutions case in England and Wales of UK. It is established in the year 1986 by Paul Staff.

• Purpose: The Crown Prosecution Service majorly focuses on providing legal advice to agencies deal in investigation sector and police authorities, during a particular criminal case.
• Legal structure: Within public organisation, legal structure is classified as central government bodies and local authorities. Under central government, organisations are run by regulatory bodies. While, local authorities are the one who has controlled the working procedures of public companies of a particular area. Here, legal structure of Crown Prosecution is of higher level, where all procedures are examined by few members. It generally follows tier hierarchy, under which communication within various staff members can be done appropriately for generating efficient results.
• Stakeholders: Government employees and commercial institutions deal in finance sector and owned by regulatory bodies are the main stakeholders of Crown Prosecution Services.

Voluntary organisations –

It includes non-profit organisations that work to provide help to needy and vulnerable people for welfare of societies. Companies deal in such sector also known as NGOs or trustees which work for reducing global issues, providing help to vulnerable societies and enhancing their livelihood. Wellcome Trust is considered as one of the voluntary sector company which is a biomedical and research charity based organisation of UK.  It is founded by Sir Henry Wellcome in 1936, which basically works to conduct research for improvement of human and animal health.

• Purpose: As the main purpose of voluntary organisation is to work for improvement of societies and enhance livelihood of vulnerable people. Therefore, in this regard, aim of Wellcome Trust behind running business is to achieve higher improvements in human and animal health by funding of biomedical research.  
• Legal structure: Legal structure of voluntary organisation are defined on the basis of Unincorporated association, Trust, Royal Charter bodies and more. Here, Trust includes only trustees who give adequate amount of funds to other companies for improving vulnerable condition of societies. While Unincorporated association includes management committees or council that works as trustees. In context with Wellcome Trust, it follows trust structure which is the largest provider of non-governmental funding of UK, that make investment for scientific research for betterment of societies.
• Stakeholders: Committee members, staff, donors or investors and volunteers are considered as main stakeholders of Wellcome Trust.

In UK, companies dealing in all sectors i.e. private, public and voluntary, give a large contribution in development of economy and society. Private companies now, have expanded their business market on global market at large level, which gives opportunity to respective country in improving its economical condition after Brexit. Similarly, efforts of public and voluntary sectors for betterment of societies help in achievement of sustainable development also and improve level of societies.

P2 Size and scope of a range of different types of organisations 

Business environment have various type of organisation such as public, private, Cooperatives, transactional, Global, MNC and so on. All these have their different size, scope, products and services, vision and mission, structure, stakeholders and many more. This task is going to explain types of organisation along with their structure, size, scope etc.

Private limited – 

This sector is mainly working with the motive of generating more and more revenue as well as fulfilling demand of customers in better manner. There share is restricting from publicly trading and owner is liable for all the profit as well as losses. Zara is the private sector organisation description of the same is as follows:-

• Background: Respective organisation founded in 1975 and its founder is Amancio Ortega and Rosalia Mera. They are serving clothes and accessories worldwide.
• Products : Zara is offering men's, women's and children's clothing as well as accessories.
• Size: Zara have approx. 7,475 stores worldwide and as per the data of 2016, respective organisation have revenue approximately US$9 Billion annually.  
• Vision and Mission: To offer customers and exclusive choice or variety of fashion products through quicker turnover of new stock compare to other fashion retail companies.
• Objectives: Zara wants to be one of the leading international brand in clothes and accessories.
• Structure: Zara operates in lean organisational structure it is which create more customers value by utilising less resources rather than traditional.

PLC (public limited company) -

 PLC are the organisations which is run by the government bodies for providing better services to people and uplift there living standard. For instance, NICE ltd. Is the public sector enterprise and it is one of the largest technology enterprise in Israel.

• Background: Respective organisation is founded in 1986 and it is public sector company. Headquarters of NICE is in Ra'anana, Israel.
• Productsandservices: They are offering Software, business intelligence, speech and video analytics as well as business and IT consulting.
• Size: NICE Ltd. Was firstly serving their goods and services in Israel and then in 1989 the organisation formed partnership with Tekelec which is United States based telecommunication enterprise. As per the data of 2016, respective organisation have approx. 4,930 employees. Moreover, operating income is approx. $134.2 million and net income is $ 116.9 million.
• Vision: NICE LTD. Wants to become most prestigious corporations through world class performance. Along with this, creating values for their stakeholders.
• Objectives: NICE Ltd. Wants to be one of the leading organisation for gaining public growth through providing high quality of products and services to customers.
• Mission: NICE LTD ( Analysis and the planning of the mission statement). Mission is to be innovative and informative.
• Structure: Respective organisation is following matrix organisational structure.

Voluntary sector-

this includes such enterprise who is working for social and society both welfare with no intension or motive of profit maximization because they are non-profit administration. Welcome Trust is doing biomedical research in United Kingdom approximately there are 2,057 employees working as per the data of 2017. The same trust is explained by financial times which give non- governmental funding for scientific research and biggest in the world. Principles of Welcome trust is to improve health of their ever client for whom they are working. Uses their resources, talent and energy in best possible manner so they can achieve mission of firm.

• Vision-respective company vision is to achieve extra improvement in health of human beings and animal for whom they are doing research.
• Mission-to do work in such a manner that no other and bring brightest mind in the field of biomedical research and medical humanities.

P3 Relationship Between Organisational functions.

There are various departments in an organisation which are assigned different operations and functions to be performed effectively in order to maximise profits of the organisation. Tesco consists of various departments that that function properly to achieve goals and objectives of the company. Every department has specific roles and responsibilities that help in attaining goals and increasing productivity. In Tesco, every department is linked with other department of the company for functioning better.  

• Marketing Department: Marketing department is responsible for advertising products and attracting the target customers. In Tesco the employees of marketing department  provide help to other departments by giving them raw material, funds and labour. Marketing elements like sales promotion, print and ad media, public relation and events are effective to gain resources which are utilised by other departments of the company.   
• Human ResourceDepartment : The human resource department of Tesco ensures the filling of vacant positions of employees in various departments. The function of HR department is to recruit the right candidate for increasing the effectiveness of the employees as well as organisation.
• SalesDepartment : Sales department of Tesco is related to company's products. The major objective of this department is to enhance the sales of the company. Moreover the sales department is directly linked to the finance department because if the sales of Tesco increases then financial profit will also increase.  The sales employees of Tesco are responsible for building good relationships with their customers. Customers share their preferences and choices of products with sales employees and this is evaluated by the production department. This increases the sales of the company as customers are given products on the basis of their requirements and demands.

Tesco has different departments that are functioning together to achieve business objectives in specified time. These departments are interrelated and increasing the effectiveness of operations. This is beneficial for Tesco as interrelation between departments helps to maintain an effective communication channel and achieve organisational goals and objectives within given time frame.

References

• Hilton, R.W. and Platt, D. E., 2013. Managerial accounting: creating value in a dynamic business environment. McGraw-Hill Education.
• Bharadwaj, A. and et.al., 2013. Digital business strategy: toward a next generation of insights.
• Berg, E. and Kilambi, K., Siebel Systems Inc, 2014. Method and apparatus to facilitate development of a customer-specific business process model. U.S. Patent 8,639,542.
• Schaltegger, S., Lüdeke-Freund, F. and Hansen, E.G., 2012. Business cases for sustainability: the role of business model innovation for corporate sustainability. International Journal of Innovation and Sustainable Development. 6(2). Pp,95-119.
• Vitale, R. P., 2011. Business to business marketing. Pearson Education India.
• Janita, M. S. and Miranda, F. J., 2013. The antecedents of client loyalty in business-to-business (B2B) electronic marketplaces. Industrial Marketing Management. 42(5). Pp,814-823.
• Prins, J. R. and Cybercrime, B. U., 2011. Diginotar certificate authority breach’operation black tulip’. Fox-IT, November.
• Ballard, C. and et.al., 2012. Dimensional Modeling: In a Business Intelligence Environment. IBM Redbooks.

UPTO50%

Avail The Benefit Today!

To View this & another 50000+ free

Enter Email

Submit