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BUSINESS SIZE AND SCOPE

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BUSINESS SIZE AND SCOPE

Introduction

The economic development of the country depends on their industrial business. If the government of country is able to develop their industry, it can bring improvement in the financial condition. There are different kinds of organisations like private, public and voluntary in the country. Different organisations serve different role like public service in the country for developing the economic condition. Henceforth, in order to run the organisation in the effective way, the business authority needs to make effective research on the market. In order to analyse the macro environment of the venture, PESTEL analysis will be done. On the other hand, SWOT analysis helps to analyse the micro environment of the organisation. In order to run the business in the appropriate way, scope and purpose of business will be provided. The organisational theory has been analysed for develop the study. Therefore, the study on business types and size will provide clear conception about the role of industry in the contemporary era.

Activity 1

P1 Explain different types and purpose of organisations; public, private and voluntary sectors and legal structures.

 

There are different types of organisation like private, voluntary and public in the country. As mentioned by Holsapple et al. (2014, p.140), the economic growth depends on the organisations of country. Therefore, Oxfam is taken as voluntary venture, the Child Support Agency is taken as public sector and NLCCE (North London Chamber of Commerce and Enterprise) has selected as private sector. The purpose and types of venture are followed by-

Organisations

An organisation can be defined as a group of people working together to achieve a respective aim and vision. Such form of operation is not available in business aspect, but the term is related to team or group activity. If a respective team tends perform a collaborative operation by communicating each other, it will form an organisation. There are different kinds of organisations and those are based on nature and characteristics. Such organisations include public, sector, private limited, voluntary based and so on.

Purpose: Different organisations hold different purposes. For example, a public sector based organisation may not match with a voluntary organistion. It is not only a mayter of mission or vision, but such differences are also applicable according to organisational strucrure and related operations.

Private Limited

Sustainability is an important factor for any kind of organisation and private limited company targets optimum security to remain in an operational field. Such organisations have restricted liabilities as well limited availability shares in the market. Such guidance is specified in laws and regulations and such fixed legal limitations are not followed always. Some of the major charactertics of private limited company are like restricted and secure financial startegies, limited share holders, authoritative body for decision making and so on. 

Purpose:  The purpose of a PLC is to maintain a sustainable position in the market having the authority to make individual decisions. This prospect has lead to manage restricted shareholders in the market and that is not more than 50 nos in most of the terms.

Oxfam (Voluntary Venture)

The voluntary sector is a non-profit sector, which fights for providing justice to the people of the specific country. As commented by Achtenhagen et al. (2013, p.440), the voluntary sector helps to enrich the society in the appropriate way.

Oxfam is a voluntary sector, which was established in the year of 1942. The motto of Oxfam is to help people, who are suffering from poverty. They help people as they can lead their life in the healthy way (oxfam.org.uk, 2017). 

Purpose

The purpose of voluntary ventures is to help poor people as they can lead nutritious life.  In case of Oxfam, they try to provide different types of services like providing meal, financial and so on for removing poverty.

Legal structure

The legal structure of voluntary venture is followed by-

· The venture is run by the management committee, who are unpaid.

· They try to maintain CLG (Company limited by guarantee)

· CIO (Charitable incorporate organisation)

The Oxfam tries to maintain the above-mentioned legal structure in the appropriate way. As per the structure, the employees need to faith on other employees for running the venture appropriately.  

North London Chamber of Commerce and Enterprise (NLCCE) (Private sector)

According to Teece (2014, p.350), private sector helps to improve the economic condition of the country. It provides employment to the people as they can earn money for living.

 However, North London Chamber of Commerce and Enterprise (NLCCE) is the private sector, which offers effective membership to the business authorities for running their business in the appropriate manner. The head quarter of the venture is at Hertford road, UK (nlcce.co.uk, 2017). 

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