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What do you understand to be the purpose of a business organisation? How does it differ from those you find in other organisations?

Extracts from this essay...

Introduction

What do you understand to be the purpose of a business organisation? How does it differ from those you find in other organisations? In the business world there are many different types of organisations. In my essay I will explore this (Figure A) also see how these organisations differ in various sectors especially in terms of purpose. Definition: Business organisation can be characterised by a division of labour which allows employees to specialise in particular roles and occupy designated positions in pursuit of the organisation objectives. Organisations have agreed structures, a system of authority, rules and regulations. But there are also those simple enterprises (sole traders) which one individual carries out all the responsibilities. Figure A Public sector The public sector is made up of organisations which are accountable to the local goverment or central goverment. Their main purpose is to provide a service unlike, the private sector whose main purpose is to make a profit. Organisations in the public sector are funded by the government via taxes.

Middle

Co-operatives Co-operative are business organisations where all the members have a hand in running the business including the responisiblites and decision making. The profits are shared equally amongst all members. All the members have equal voting rights. Sometimes decision making can be delegated to a manager to improve efficiency, examples include retail high street stores. Non profitable organisations There other non-profitable organisations which are known as voluntary business. Their main purpose is to help a cause e.g. charities. Their main objectives is to raise as much money as possible. So they can help their cause more. None of the members keep the money as profits, all their income must go towards the cause. Private sector The private sector includes all the businesses set up by a individual or a group of people. Their main purpose is to make a pofit. The types of businesses in this sector vary considerable some are small retail shops with one owner to multi-nationals which operate in various countries e.g. ICI The businesses will vary according to their legal form and their ownership.

Conclusion

Figure C The diagram above illustrates the typical structure of a Private Limited Company. Which is more complex and communication between parties would be harder. So if a worker wanted to raise a complaint it would have to go through all the levels of the hierarchy making this harder and more time costly than if the same situation appeared in a sole trader. Decision making would also be more difficult in incorporated businesses as delegation would depend on various matters, including the structure the business decides to utilise. The personnel involved in various businesses vary. In a sole trader it may involve 2-3 people but in a Public Limited Company it a may concern 300-400 people. When comparing a private sector business with a public sector or a non profitable business the main difference that appears is the purpose of the business for some it is to make a profit and in to others it is to provide a service or even to help a cause. Details required Example Your name A.Another Module name and number 102cbs Foundation of Business Organiations Module tutors B Another Seminar group / time Seminar A - Monday at 1200 Programme name and year Eg. MktJI1, COMP(2+2)1 etc

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