Business Enviroment

Topics: Economics, Economic system, Monetary policy Pages: 7 (2523 words) Published: May 26, 2013
eUnit Title: Business Environment 1.1 Identify the purposes of different type of organisation. There are four different type of business organisation in the private sector of the U.K. business, which is the sole traders, partnerships, companies and franchises. • The sole traders organisations is the most common business ownership found in wide range of activates in the U.K. like plumbing, cleaning service, electrical work, e.t.c. According to the times 100 business case studies In the U.K. about 20 percent of the sole trades operate in the construction industry, a further 20 percent in retailing and about 10 percent in finance and the other 10 percent in catering. Most sole traders are easy to set up and manage. Some of the disadvantages of running a sole trade are as the organisation is managed by an individual all the decisions are made by one person whom also have to work long hours and they have to provide all the finance themselves. But on the other hand you don’t need a complicated paperwork to set up your business and decisions can be made quickly and close contact can be made with customers and employees, which also help the business to grow. • Partnerships can have between two and twenty partners. There can be exceptions for some forms of partnerships such as big accountancy firms whose partners also enjoy limited liability. This means that they can only loose the amount of money that they have invested even if the business goes bankrupt. E.g. vets, solicitors, G.P. • Companies are owned by shareholders who choose Directors to give direction to the business. The Chief Executive has the responsibility of making the most important decisions. Specialist Managers will be appointed to run the company on behalf of the Board. Shareholders put funds into the company by buying shares. Every company must register with the Registrar of Companies, and must have an official address. Private companies have Ltd after their name. They are normally smaller than public companies. Shares in a private company can only be bought and sold with permission of the Board of Directors. • Franchises are businesses in which the company or the owners sell the right to their business logo and model to third parties, which are also called franchisees. Franchises are an extremely common way of doing business these days. Some of good example of franchises companies are McDonalds, Subways, Sawbucks, The statutory obligations that affect business organisations. Volunteers at community organisations are often surprised to discover that their legal responsibilities are little different from those of businesses run for profit. In fact, there are good reasons why this should be so. For example, a community organisation that fails to comply with health and safety regulations risks harming people in just the same way as a business does.

1.2 Describe the extent to which an organisation meets the objective of different stakeholders. Stakeholders are groups that have an interest in the success of a business. There are two types of different stakeholders in an organisation, which are internal stakeholders, and external stakeholders. All the stakeholders have different interest in the company some of their interests can overlap and it can also have conflicting interests. Internal stakeholders are managers, shareholders and employees. The internal stakeholders have more influence on the business than any other stakeholders. This is because employees, managers and shareholders will have to be striving for the same function they all aim to provide the product or service it provide. External stakeholders are suppliers, the local community, distributors, customers, unions, society and government. 1.3 Explain the responsibilities of an organisation and strategies employed to meet them. The main responsibility of an organisation is to serve. An organisation must operate within the boundaries of the law, which means every company, business, departments has a duty...
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