Business Environment-Compatibility Mode
Introduction
This report aims to identify the various purposes of different business organisations. Tesco is one such UK based company which falls in the private sector companies. This retail company has several responsibilities towards its stakeholders like employees, consumers, investors and government. It is the duty of the company to meet their expectations. The monetary and fiscal policies that are put forward by the government are expected to be followed by the company’s management. This way of working together helps to develop a stable economy.
Task 1
Identify the purposes of different types of organisation.
An organisation comprises of several individuals who perform different functions in order to achieve a common goal. These organisations vary in size and structure. These organisations are important because certain things cannot be done by individuals. Not only they enable a continuous supply of commodities in the society but also provide employment opportunities to several individuals. The types of organisations are primarily divided into four categories, public sector companies, private sector companies, sole traders and non-profit organisations. This division holds true for the organisational structure of UK as well.
Private Sector: Organisations which are a part of private sector include large and small scale businesses, companies and firms which are owned by a group of individuals. These companies consist of internal and external stakeholders like shareholders, employees and customers. The main aim of these organisations is to maximize the amount of profit they earn from the market (Greener, 2010). The size of these companies varies and a diverse range of commodities are available from these firms. A large number of the young people get employment in these firms.
Sole traders: A business which is owned by a single person is a part of this category. Sole trader is a subdivision of the private sector organisations.
Public Sector: All organisations that look after the welfare of the people and are under the authority of the government fall under this category. In the UK, the public sector comprises of police forces, health centres, public colleges and schools and other local bodies which are responsible for the betterment of the society. These organisations do not aim at increasing the profit margins. The funds of all these departments are gathered through the taxes that are paid by the common people. If any excess amount of money is earned from any of the department, then it used in various services of the common people. Even providing proper internet facilities is a responsibility of the public sector.
Non-profit organisations: Apart from the traditional private and public sector organisations, another division has recently become prevalent in the UK which is known as non-profit organisations. This category includes organisations like religious bodies, charitable trusts, hospitals and other programs which help in the betterment of the society and not in profit maximisation. The presences of organisations which work on LGBT and gender issues are also common in UK (Potocan, Ungan and Nedelko, 2016). These organisations get funding from the government and also collect money from established individuals like industrialists and businessmen.
Private Sector: Organisations which are a part of private sector include large and small scale businesses, companies and firms which are owned by a group of individuals. These companies consist of internal and external stakeholders like shareholders, employees and customers. The main aim of these organisations is to maximize the amount of profit they earn from the market (Greener, 2010). The size of these companies varies and a diverse range of commodities are available from these firms. A large number of the young people get employment in these firms.
Sole traders: A business which is owned by a single person is a part of this category. Sole trader is a subdivision of the private sector organisations.
Public Sector: All organisations that look after the welfare of the people and are under the authority of the government fall under this category. In the UK, the public sector comprises of police forces, health centres, public colleges and schools and other local bodies which are responsible for the betterment of the society. These organisations do not aim at increasing the profit margins. The funds of all these departments are gathered through the taxes that are paid by the common people. If any excess amount of money is earned from any of the department, then it used in various services of the common people. Even providing proper internet facilities is a responsibility of the public sector.
Non-profit organisations: Apart from the traditional private and public sector organisations, another division has recently become prevalent in the UK which is known as non-profit organisations. This category includes organisations like religious bodies, charitable trusts, hospitals and other programs which help in the betterment of the society and not in profit maximisation. The presences of organisations which work on LGBT and gender issues are also common in UK (Potocan, Ungan and Nedelko, 2016). These organisations get funding from the government and also collect money from established individuals like industrialists and businessmen.
Describe the extent to which an organisation meets the objectives of different stakeholders.
A number of people are associated with a particular organisation and engage themselves in its day to day working. These people have certain expectations from the operations of the company like profit generation or satisfaction after the usage of the company’s products. A firm needs to look after these expectations of the stakeholders and try to fulfil those. Tesco PLC is one of the largest retailers internationally which has its headquarters in England. Dealing in merchandise as well as grocery, this organisation adopts various approaches to meet the needs of the stakeholders.
Customers: They are the primary stakeholders who enable any company to generate as much profit as they wish to. Therefore, the needs of the customers must be taken care of. Customers want to purchase good at affordable prices without compromising on the quality of the products. Tesco takes care of this aspect by providing proper offers and discounts. Tesco further mentions the nutrients present on the cover of each of the food product. Apart from these, the company abides by the rules and regulations which have been put down by the government for the protection of the consumers. The company’s primary value is to look after the needs of its consumers (Henry, 2011).
Employees: Providing employment to over 500,000 people in the company, the employers ensures job security to all these people. The employees in the company have the freedom to voice their opinions and their suggestions are taken in to consideration by the management. Employees work towards achieving the future goals of the company. The workers find the retirement policies beneficial along with attractive pay structures. Teamwork is enhanced in Tesco and none of the workers are exploited.
Investors: Investors are people who invest money for the operations of a company. They aim to earn higher revenue when the price of the company’s shares goes up. In order to satisfy the major shareholders of the company, Tesco always tries to maximise the sale of its products earning higher amounts of revenue. The major shareholders of Tesco in ascending order are GIC Private Limited, Schrodes PLC, BlackRock Inc. and Norges Bank (TESCO PLC, 2016).
Government: A large number of laws, policies, rules and regulations are laid down by the Government for fair business practices in the country. Tesco follows all these policies based on environment, employee protection, consumer satisfaction, and so on. It also pays all kind of taxes to the government so that the company does not get involved in legal cases. Organisations like Tesco operate by without defying governmental regulations.Order Now
Customers: They are the primary stakeholders who enable any company to generate as much profit as they wish to. Therefore, the needs of the customers must be taken care of. Customers want to purchase good at affordable prices without compromising on the quality of the products. Tesco takes care of this aspect by providing proper offers and discounts. Tesco further mentions the nutrients present on the cover of each of the food product. Apart from these, the company abides by the rules and regulations which have been put down by the government for the protection of the consumers. The company’s primary value is to look after the needs of its consumers (Henry, 2011).
Employees: Providing employment to over 500,000 people in the company, the employers ensures job security to all these people. The employees in the company have the freedom to voice their opinions and their suggestions are taken in to consideration by the management. Employees work towards achieving the future goals of the company. The workers find the retirement policies beneficial along with attractive pay structures. Teamwork is enhanced in Tesco and none of the workers are exploited.
Investors: Investors are people who invest money for the operations of a company. They aim to earn higher revenue when the price of the company’s shares goes up. In order to satisfy the major shareholders of the company, Tesco always tries to maximise the sale of its products earning higher amounts of revenue. The major shareholders of Tesco in ascending order are GIC Private Limited, Schrodes PLC, BlackRock Inc. and Norges Bank (TESCO PLC, 2016).
Government: A large number of laws, policies, rules and regulations are laid down by the Government for fair business practices in the country. Tesco follows all these policies based on environment, employee protection, consumer satisfaction, and so on. It also pays all kind of taxes to the government so that the company does not get involved in legal cases. Organisations like Tesco operate by without defying governmental regulations.Order Now
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