There are various types of organizations, which are:
Limited liability partnership
All these organizations have their own individual purposes these are:
There are many purposes to a sole trader, these are
The owner of the business being able to keep all the profits the company makes.
The owner will be able to have complete control run the business exactly how they want it to be run.
They can have a more personal relationship with their clients.
Quicker decision-making process as they rely on their own decision.
Business affairs are more private.
The purposes of a partnership are
The risk is spread instead of one person being liable and taking all the blame and having to pay for any liabilities.
Better chance of bringing more clients to the business as well as resources
Having a partner may bring another skill set to the business
The partner may have a connection to more suppliers
The partner may bring more credibility to the business.
Having a partner may bring more capital.
Public Limited Company
A public limited company also has many purposes such as
Having the ability to raise capital from investors whether they be new or existing
Shareholders can sell their stock.
1.2 Describe the extent to which an organisation meets the objective of different stakeholders
Each Stakeholder will have its own objectives and needs. These will consist of the following (a) Customers. Customers will want to know about the long-term plan of an organisation especially if they have long term involvement with the organization or they are dependent on the organization. (B) Investors. The investors will be concerned about any risk within the organization as this may affect any initial capital they have put into the organization and when they will get their return on investment back, this can help the investor determine what they decide to do whether they hold on to it or sell it. (C) Employees. Employees will want to know about the stability of their future and the financial state of the organization for them to know about their salary and pension. (D) Government will be interested to know the actions of the organization and where the organization is distributing their supply, taxation or consumer welfare.
• Financial Management”; Pandey I.M; 2003
• “Intermediate Financial Management”; Brigham E.F, Gapenski L.C; 2006
1.3 Explain the responsibilities of an organization and strategies employed to meet them.
Every organization has their own individual guidelines there five responsibilities are
Social responsibilities what is expected from them from members of the public and the environment.
Environmental responsibilities Protecting the environment
Ethics Ethics are moral principles of an organization.
Treating competitor fairly.
The obligation of an organization is to ensure the organization runs as efficiently as possible and the organization is beneficial to customers. Organization has many responsibilities one of the main responsibilities are to make sure the organizational structure is correct the structure is what keeps the organization with regulations and to keep the organization compliant. If each member of staff is aligned their duties it will sustain organizational structure, management must assign jobs to employees to help the organization stay structured, having a structure and employees being coordinated it will help enhance the organization by allowing the staff to have a purpose and know exactly what it is this will help the organization achieve their personal goals and objectives. Having an organizational strategy is to require for the anticipated change to take place, the organizational strategies are making sure operation is correct, communicating with stakeholders making sure everything is in place for decisions to be made. Improving your strategy would be to stay competitive.
2.1 Explain how economic systems attempt to allocate resources effectively.
Money plays a vital role in what will be produced and who it will be produced for, this is what shows the suppliers what goods are worth paying more for. Producing the most popular goods. Economy system is to allocate commercialize economy, command economy, mixed economy. Economic systems do not affect organizations directly however management is still assisted in making sure resources are allocated in the best way possible. Different parts of the country have their own unique economic system. The consumers and government make the decision on what is produced. In 2008 recession hit British economy which caused gross domestic product to fall and the economy shrank by 7.1 %, the debt was so critical that high inflation took over. value added tax increased, national businesses were being affected by fiscal and monetary policies. There are what is called
Free market economic system
This is where the number of products are decided per demand, the supply, demand and ability is how the decision Is made.
Centrally planned economy
The Government is in control of all the decision making, in this economic system the unemployment issues are not addressed as the government deal with all the economic assets.
Mixed economy system.
This economic system is a combination of all the economic systems private enterprises and the monetary system collaborate