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Discuss what organisations are and why do they exist. Explaining how they tend to change over time.

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Introduction

121BSS Introduction to Business Organisations Coursework 1 Discuss what organisations are and why do they exist. Explaining how they tend to change over time. An organisation is a formal group of people with one or more common goals. Organisations exist in many different forms within the private and public sector. "The public sector is the part of economic and administrative life that deals with delivery of goods and services by and for the government" Fire services, Education and Healthcare are examples of public sector services. Public sector companies exist to supply a quality service to the society which ensures they live content and healthy lives. The NHS is an example of a public sector company. They provide the majority of the healthcare in the UK. The NHS is free for all patients ordinarily resident in the UK at the point of use. Patients over 60 and under 16, with certain medical conditions, and those with low incomes, are exempt from paying any prescriptions fees. "The private sector consists of those entities which are not controlled by the government" e.g. private companies, non-governmental organisations and charities. These businesses exist to make profit, survive and grow. ...read more.

Middle

There are some private sector organisations whose objectives are non-profit based which aim to benefit a particular cause or social group i.e. under privileged children. One such organisation is the NSPCC which specializes in child protection and preventing cruelty to children. Private sector and public sector organisations don't operate in isolation and frequently supply services to each other. For example, the NHS requires supplies e.g. needles, apparatus and these are provided by private sector organisations. Both private and public sector companies contribute a lot to the economy. They both create thousands of jobs and careers for the unemployed. They also work towards providing training for those who are less skilled, thus increasing chances of future employment. This in turn leads to improved incomes and increased taxes to the government. The non-profit sector contributes to social economy by allowing the community to join together to help those in needs e.g. Live Aid. Public sector organisations help to improve the ability of the economy to function. The private sector presents goods and services for consumers. It plays a vital role in generating new investments and providing finance for development. However it can contribute negatively to the economy. ...read more.

Conclusion

The 'trough' is the stage of the business that marks the end of declining business activity. This is the time when a business needs to expand. Organisations need to expand if they are to survive and grow in economy and the business cycle acts as an indicator as to when the business needs to expand. In order for businesses to survive, grow and maximize profit, they need to change over time. The competitive environment might change, with the launch of new products from competitors. Therefore, they need to adapt to the competitive market and to new trends e.g. Top man. They need to keep up with the latest fashion trends so that they can offer consumers the right type of products. A business may change its objectives over time. This may be because the business may achieve an objective and will need to move onto another one e.g. survival in the first year may lead to an objective of increasing profit in the second year. Also, technology may change product designs, so sales and production targets may need to be altered. Businesses may wish to expand because a larger market share means they can charge higher prices and gain more profit. In addition, they need to develop if they wish to compete with other growing businesses. ...read more.

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