Unit 1: Business and Business Environment
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The document describes various types of organizations, including sole proprietorships, partnerships, private limited companies, public limited companies, voluntary organizations, charitable organizations, government organizations, and cooperatives. It outlines their purposes, structures, and examples such as The Elixir, The Grapevine, Bestway Group, Asda, Bloodbot, Marie Curie, NHS, and The Cooperative Bank. Each organization's size, scope, capital, revenue, and operational details are also provided, illustrating their roles in the business environment.
![P2 Explain the size and scope of a range of different
types of organisations
Public Limited Company
Name of business Asda Stores Ltd
Headquarter Asda House, South Bank,
West Yorkshire, England
Number of locations Increase 631 [As of 31 January
2017]
Operating income £1 billion
Number of employees 180,000
Scope:
As a public limited entity, Asda has
ample opportunities to expand its
business. It can expand its business by
investing in new project. To initiate the
project, it needs adequate finances. It
can avail finances from issuing shares to
the public. Here the management is
separated from the owners. Thus the
managers are responsible for any
mismanagement done. Asda has the
vast possibility to raise funds for
implementation of its future plan.](https://image.slidesharecdn.com/ba705004nicoletasolomiaregentbbe-180129061010/85/Unit-1-Business-and-Business-Environment-12-320.jpg)
Unit 1: Business and Business Environment
- 2. P1 Explain different types and purposes of organisations; public, private and voluntary sectors and legal structures. Sole trade is the business operated and owned by a single individual. The sole proprietor is the sole profit takers of the business. The liability of the owners is very high (Cavusgil, Knight, and Riesenberger, 2012). The Elixir is a sole trade organisation which sells customized softwares. Mr. John is its owner. This is a profit making business. The partnership is the business entity of several individuals who engage themselves in the business operation following the deed. The liabilities of the partners may be limited or unlimited. The Grapevine is a partnership business in the UK. it is engaged in operating a super store. It has 15 members and objected to make profit.
- 3. P1 Explain different types and purposes of organisations; public, private and voluntary sectors and legal structures. The Private limited company is a company of having limited liability with private shares. Bestway is a private limited company. it has 30 members and its main purpose is making profit for them. It performs wholesale, Cement, Banking, Pharmacy activities with a view to earning profits. It can operate its business operations with the excellence of its owners and directors. A public limited company is the business where the membership of ownership is open to the public. Asda as a Public Limited Company. It is a profit oriented business entity. The maximum number of the company has no upper limit. It can issue as many as stocks to the public (www.asda.com, 2017). It expresses advertisement to the public through a prospectus for offering equity. It is subjected to effective control and supervision for its operation.
- 4. P1 Explain different types and purposes of organisations; public, private and voluntary sectors and legal structures. The difference between private and public limited companies are described as follows: The required minimum members must be 2, and the maximum members can be 50 for Bestway. On the other hand, Asda requires minimum 7 members and there is no limitation for its maximum members. Bestway group cannot transfer its shares as a complete restriction is prevailed in transferring its the shares. Again, Asda can transfer the shares as a Public company. Bestway Group cannot issue Prospectus, whereas Asda is free to issue a Prospectus. This opportunity is only given to the public limited companies.
- 5. P1 Explain different types and purposes of organisations; public, private and voluntary sectors and legal structures. Bestway Group must have at least 2 directors for managing its operations. On the other hand, Asda must have at least 3 directors for its operational activities. As a Private Company, Bestway Group cannot introduce share Warrants against its fully paid equity. But Asda can introduce Share Warrants against its fully paid up equity. Bestway Group has no compulsion of calling the Statutory Meeting of the member. On the other hand, Asda has to call its statutory meeting for filing the Report to its Register.
- 6. P1 Explain different types and purposes of organisations; public, private and voluntary sectors and legal structures. Voluntary organization A voluntary association is the group of individuals who involves into an agreement for attaining a specific purpose. These type of organisations are formed for bringing socio-economic development of rural people, promotion of art, culture & sports. Bloodbot is a voluntary entity and it is a non-profit organisation. Its purpose is to manage blood for emergency patients.
- 7. P1 Explain different types and purposes of organisations; public, private and voluntary sectors and legal structures. Charitable organization The charitable organisations are the non-profit organization (NPO) which is technically known as a public charity. It focuses on goals of a general philanthropic nature like charitable, educational and religious intentions.The activities of charitable organisations vary from country to country. Again the regulation and tax treatment may affect the activities of these organisations. Marie Curie is a charitable organisation. it is not a profit oriented entity. it tries to solve social problems. The purposes of Charities and Voluntary organisations are the same as follows: Established for charitable, social, philanthropic, religious or political purposes. They must use any profit or surplus for meeting their purposes. They are not a part of any local authority or another statutory body.
- 8. P1 Explain different types and purposes of organisations; public, private and voluntary sectors and legal structures Government organisation The government organisation is a company that has a minimum of fifty-one percent paid-up share equity by the Government. NHS is such kind of organisation and it operates for rendering public service to the mass for uplifting their life standard. The entity is fully governed by the UK government. Cooperative Cooperatives are formed by different same minded individuals who operate the financial activities for their own benefits. Such entities are successful in the marketing processing of farm products, equipment, and raw materials collection, wholesaling, retailing, credit and banking etc. The consumer and agricultural marketing cooperatives were introduced in the UK at the mid of the 18th century. Co-operative Press is one of the oldest co-operatives in the UK. It operates for the betterment of its members.
- 9. P2 Explain the size and scope of a range of different types of organisations Sole proprietorship Name of business The Elixir Location London Business owner Mr. John Capital amount 1 million GBP Yearly revenue amount 2.5 million Number of employees 20 Scope: The scopes of Elixir are numerous. It is very much fruitful for businesses that need to take quick decisions. The business entity is very much flexible for the owners. It can establish its business operations as a partnership. For this, its owner must have consented to it. The business can thus add a different expert in its operations.
- 10. P2 Explain the size and scope of a range of different types of organisations Partnership business Name of business The Grapevine Location Birmingham Number of business owner 15 Capital amount 20 million GBP Yearly revenue amount 50 million GBP Number of employees 40 Scope: The scopes of the Grapevine are also numerous. It can add more partners to increase its capital. It can also add experienced individuals to the business ownership to increase the efficiency of it. The complex businesses can be performed through it. The partners participate in meeting to solve any critical problem. Thus they can make the best solution for any critical problem.
- 11. P2 Explain the size and scope of a range of different types of organisations Private Limited Company Name of business Bestway Group Location London, United Kingdom Number of owners 30 Capital amount 3.4 billion GBP Yearly revenue amount 4 billion GBP Number of employees 33,600 Scope: As a private limited company, it has some restrictions. But it is very much comfortable for some same minded people to operate their business operations. The owners get engaged in an operation to conduct the functions properly. The entity has vast opportunities to expand in various industries with the accumulation of capital, human resources, and skills.
- 12. P2 Explain the size and scope of a range of different types of organisations Public Limited Company Name of business Asda Stores Ltd Headquarter Asda House, South Bank, West Yorkshire, England Number of locations Increase 631 [As of 31 January 2017] Operating income £1 billion Number of employees 180,000 Scope: As a public limited entity, Asda has ample opportunities to expand its business. It can expand its business by investing in new project. To initiate the project, it needs adequate finances. It can avail finances from issuing shares to the public. Here the management is separated from the owners. Thus the managers are responsible for any mismanagement done. Asda has the vast possibility to raise funds for implementation of its future plan.
- 13. P2 Explain the size and scope of a range of different types of organisations Cooperative Name of business The Cooperative Bank Location Balloon Street Manchester, United Kingdom Capital amount £1.57 billion Yearly revenue amount £512 million Number of employees 4,000 Scope: The Cooperative Bank has also ample scopes for achieving its goals. It can expand its business within a short period. Many employees work here. It should train themselves and utilize themselves in proper business operations.
- 14. References Rees, A. (2009). Consumer behaviour. 2nd ed. Saleem, S. (2010). Business environment. 1st ed. Delhi: Pearson. Cavusgil, S., Knight, G. and Riesenberger, J. (2012). International business. Upper Saddle River, N.J.: Prentice Hall/Pearson. Henson, A. (2009). Albania's business environment. London: GMB. Aras, G. and Crowther, D. (2011). Governance in the business environment. 1st ed. Bingely, U.K.: Emerald.