NELSON COLLEGE LONDON
BTECH HIGHER NATIONAL DIPLOMA (HND) IN BUSINESS (L5)
BUSINESS ENVIRONMENT (UNIT 1)
Hand in date: 21/12/12
AC 1.1 – Identify the purposes of different types of organisation.
An organisation is ‘a social entity that has a collective goal and is linked to an external environment’. An organisation can be described as a group or company arranged to work efficiently and perform tasks which depend largely on the purpose, aim or plan (Mullins, 2008).
Two broad classifications of organisations are defined as profit making and not for profit making. However, organisations can have many purposes. For the Sole Trader making profit is the purpose of their business. Sole traders usually contribute all capital, make all decisions and therefore retain all profit.
A Limited Partnership organisation involves many investors coming together to do business. There are restricted liabilities and profit is split between all parties depending on the amount that is invested. The purpose is to make profit.
A Public Limited Company (PLC) is similar in structure to that of a Limited Partnership, except more long term strategies are put in place for profit making. PLCs are owned by the public who are shareholders. People buy and sell percentages of shares within a company.
Private Companies have a sole profit making purpose. These organisations generate large quantities of capital, assets and investment. Shares cannot be bought by the public. In contrast, not for profit making organisations such as charities receive donations or funds from the government. Although generation of profit is not the purpose of these organisations, they must be able to afford overhead charges.
AC 1.2 – Describe the extent to which an organisation meets the objectives of different stakeholders.
Throughout this report reference will be made to the assignment scenario.
A stakeholder is ‘any group or individual that can affect, or is affected by the performance of an...