BUSINESS ENVIRONMENT

Business Environment



Business Environment

Task One: Understanding the Organizational Purposes of Businesses

A: Identify the purposes of different types of organizations

The organizations are always established in order to conduct some sort of business which can be run by either one person or the thousands of people. However, the organizations can be of different types that solely depend upon the aims and objectives of the owners. Most of the businesses primarily established to make the profits. However, it is not the case of each and every organization. Hence, there are also some organizations which are not for profit such as charity based organizations or government run corporations. Therefore, the main types of business organizations include the sole traders, partnership, private limited company, public limited company, co-operatives, franchises, public sectors, voluntary organizations, and charitable organizations. The purposes of each type of organization are quite different from one another such as the voluntary organizations are primarily formed to address the needs of the people while on the other hand, the private limited companies are established to ensure the customer satisfaction through the variety of products (Business Case Studies, 2012). Hence, it is crucial for the organizations to establish the prime objective for the organization and formulate the mission and vision statement which can be pursued by devising the appropriate strategies. Some organizations aim to make profit, some wants success, and some wants market share.

B: Extent to which organization meets the objectives of stakeholders

In order to meet the business objectives, the organizations are required to identify its people, or the groups which are likely to be affected by or being affected with the actions of the organizations that are called the stakeholders. The stakeholders of the organization include the customers, owners, suppliers, employees, financial institutions, government agencies, and environmental groups. Hence, the organizations are primarily existed to satisfy the various groups of stakeholders by yielding the acceptable outcomes. The stakeholders of the business have the direct or the indirect interest in the organization. However, if the organization meets the objectives of the different stakeholders the organization will not only do well in the longer run but it will also be earning the greater profit. Hence, for this reason, the organizations are paying great amount of heed in retaining its employees in order to reduce the staff turnover in the today's competitive world. The organizations ensure the job security which becomes the basis for the protection of the employee's personal lives. Moreover, the organizations are also looking forward to offer the best possible price to their customers to get the greater share in the market (The Organization and its Environment, 2005).

C: Responsibilities of organization and strategies implemented to meet them

The organizations have the numbers of responsibilities to lead the organization on the right path where it is accountable to preserve and satisfying the stakeholder interest, resolution to conflicts, and legal responsibilities in terms of consumer/ or employee legislation, anti discriminatory/ or equal opportunities legislation, health and protection legislation, and addressing the ethical issues which may ...