In the UK there are many different types of business organisations. They broadly fall into the category of public and private sector organisations. The National Health Services or the Armed Forces for instance are public sector organisations owned by the Government and are in place to deliver to the public. The main purpose of public sector organisations is to provide access to quality service at an affordable price to citizens (Armstrong and Kotler, 2014). Providing equal opportunities or equity is also one of the purposes of the public sector organisations (Kerin and Hartley, 2012). The private sector consists of sole traders, partnerships, private ...view middle of the document...
Generally this type of business is the simple one man company e.g. Plumber, Domestic Electrician. The main objective of this Business is to make profit for the owner from which he/she earns a wage.
A Partnership Business organisation is similar to that of the sole trader in terms of liability towards costs and profits. It may be introduced where supply sometimes cannot meet demand such as Veterinary Practice in rural areas, or dentists, accountancy and solicitors. The success of this business is, I believe dependent on the partners sharing the same work ethic and professionalism to make the business meet its objectives, indeed when deciding to form a Partnership it is usually done by individuals after gaining an understanding of each other and the attitude to work they have. There are many advantages to a partnership such as; the spread of risk is shared among the group, a partner may bring finance and resources to the business also there may be increased credibility as potential customers and suppliers see dealing with a partnership less of a risk than a sole trader. However they do have disadvantages in that the profits are shared, disputes over work load can occur and disagreements over company direction.
Private Limited Company (Have Ltd in the company title) is a Company owned by shareholders and run by Directors who may also be shareholders. The liability is limited which means investors can only lose money which they have invested and therefore if the company was to have a claim against them, money can only be recovered from business assets, not personal assets of the shareholders.
Public Limited Company (Have plc in the Title) is a company which has been floated on the Stock Market. This has the benefit of being able to generate funds through the selling of shares to open market on the stock exchange.
All organisations have several stakeholder groups such as customers, managers, employees, owners, investors, the local community, suppliers and creditors (Kerin and Hartley, 2012). Organisations fulfil the needs of these stakeholders by returning a profit to shareholders, providing employees with fair wages and benefits, satisfying customer needs, making prompt payments to suppliers and creditors, maintaining and protecting the environment and providing jobs in local communities and maintaining satisfactory relations with trade unions (Kerin and Hartley, 2012).
The organisation fulfils the above by converting factors of production such as land, labour and capital to finished products and services and providing it in a safe manner with the highest level of quality (Kerin and Hartley, 2012). It also ensures that there are safe working systems and a safe environment is maintained at all times. The organisation also abides by company, local and national laws, donates to charitable causes as a means of being socially responsible (Kerin and Hartley, 2012).
I have found that organisations have two basic fundamental responsibilities and...