Business Environment. Understanding the Organisational Purposes of Business
In this assignment I am going to identify the purposes of different types of organisations, describe the extent to which an organisation meets the objectives of different stakeholders and explain the responsibilities of an organisation and strategies employed to meet them. I am also going to give examples based on my own personal experience.
Identify the purposes of different types of organisation
Business organisations can be divided mainly into two sectors. The private sector, which is formed by sole traders, partnerships, companies and franchises. The sole trader is the most popular form of business ownership. This kind of business is managed by only one individual who puts all of his savings and his time …show more content…
Owners or shareholders who want the business to be a success because they have invested their own capital and expect to gain a profit out of it. An organisation has legal and moral obligations to its owners being the most important one to try and ensure that they receive an adequate return on their investment.
Employees are a vital part of any organisation. In order for a business to succeed it needs to offer a nice working atmosphere and pay good wages to their employees to keep them motivated at the workplace. One way to achieve this is by implanting performance related bonuses which are usually related to the success of the business as a whole. In this case both parties will be satisfied with the end result.
Unions. Their goal is to better the employees work conditions by trying to increase wages and secure jobs. Managers usually have a fluent verbal communication with the union’s spokesperson to avoid any conflicts that could occur if their demands are not materialised even if not completely in some way.
Customers. A business has to know how to fulfil their customers’ needs which includes offering quality products at a reasonable price, that the goods they have gone to purchase are available because otherwise they will go to the competition to get them and that they receive good customer