BUSINESS ENVIRONMENT

Business Environment

Business Environment

Identify the purposes of different types of organization

Public Sector

The public sector organizations include a set of businesses, organizations, institutions that are in public ownership and managed by public authorities or by persons designated by them. The public sector includes all economic resources owned by the state, and all the organizations with which the state regulation of the economy. This is the state budget, state industrial enterprises, government organizations in governance, health, education, defence, public land. The public sector in the strict sense is the local authorities, which are composed in Germany from federal, state, local government and local associations. These organizations include the social, legal, health, care, accident, unemployment and pension insurance, and certain special funds for public budgets. This second level is the aggregate of the Maastricht criteria with regard to the debt of the "public sector", which may not exceed 3% of its gross domestic product (FLYNN, 1990).

Private sector

In economics, the private sector is opposed to the public sector is that part of the economy that seeks profit in their business and that is not controlled by the state. By contrast, the companies belonging to the state are part of the public sector. Private organizations non-profit are included as part of the voluntary sector. The private sector is allowed to establish and develop any activity except some public sector. Private sector is expected to diversify industrial production and to make large investments; its role is also attracting investment and technology from abroad. Their role is also to contribute to development and job creation. But it can also form small companies can be both as a peddler or a small business by working there alone for themselves and for their own account and all proceeds are for your personal gain (HAIG, 2003).

Voluntary organizations

Voluntary organizations are the ones that does not have as a primary purpose of the activity extracting profits and distribute the profits among the participants. Non-profit organizations can be created for social, charitable, cultural, educational, scientific and management objectives in the areas of health protection, the development of physical culture and sports, meet spiritual and other non-material needs of citizens, protection of rights and legal interests of citizens and organizations, dispute resolution and conflicts, legal assistance, and for other purposes to achieve the public good. Non-profit organizations have the right to do business, only if the activity is aimed at achieving the goals of the organization (KENDALL, 2003).

Describe the extent to which an organization meets the objectives of different stakeholders

There are various factors which help the organizations to meet the objectives of different stakeholders. Among, all the factors trust is the fundamental factor which covers the aspect of moral treatment of the stakeholders within the organization. The stakeholders trust the organizations as they trust them to return the investment made by them in the organization. In United Kingdom, firms hold the more power the stakeholders, this is the reason why the stakeholders on the factor of trustworthiness of the ...