Notesale: Turn your study into money

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Ø Types of organisations
 
Explanation of ownership

Example of organisation
with this ownership

2 advantages of this type of
organisation

2 disadvantages of this type of
organisation

Sole trader

A business owned and controlled
by one person

Photographers are often
sole traders as they
usually take all profits

The firms are usually small and
easy to setup and only a small
amount of capital needs to be
invested

Often work for long hours and find
it difficult to take holidays
...


There is limited liability for the
shareholders large capital sums
can be raised as there an
unlimited amount shareholder
Only two shareholders are needed
to start a business and more
capital can raised as the
maximum number of shareholders
allowed is fifty
Staff working within a
department are specialists of their
particular department as a result
coordination is achieved

Original owners are likely to lose
control and the size of the company
many case management problems

Decisions cant be made with out the
government ‘s permission and there
is a delay in decisions as they have
to wait for upon the government’s
decisions

Trustees are not allowed to
financially benefit from profits and
there are restrictions on VAT claims

Ben and jerry’s  an ice
cream company owed by
ben and jerry

PLC

A business that has shares sold
and bought on the stock market
...
Is an airline
company that trades on
the stock markets

LTD

A business that can not trade or
exchange its Shares on the stock
market but it can only be brought
through the approval of the Board
of Directors
Sector of a national or state
government that deals with a
particular area of interest

Intel is a semiconductor
manufacturing company
that don’t trade its shares
on the stock exchange

Government
agencies

Government  departments  set  up  
for  a  particular  activity

Driver and Vehicle
Licensing Agency
maintain registers of
drivers and vehicles in
Great Britain

Worker cooperatives

Is a body that is owned by the
people who work for it

Suma is an independent
wholefood distributor
which co-operative
committed to ethical
business

The government provides
financial  support and each
department focus on one
particular activity which means
staff are likely to know what there
suppose to be doing
Members can self-finance a the
business with retained profit and
Individual members cannot
control the business to the
disadvantage of other members

Charitable
trusts

A non for profit organisation is
setup to support people in need by
rising funds

Red cross is humanitarian
organization that helps
people in crisis

Not liable to pay Corporation Tax
and the money is used to help
people in need

Government
departments

Department for Education
is a reasonable for
education

 
 
 
 
 
 
 

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Grow is limited as there can only be
fifty shareholders and ownership
cant be transferred with out the
agreement of other shareholders
Political people interfere in the dayto-day operation of the companies
and there is Poor labor management
relations due to poor management

 

Only the works are rewarded and
everyone gets an equal share
regardless of there education and
skill

Explanation of ownership
A small business, which operates in the local area
...

Red cross provides its
services to anyone in need
BP provides its products to
customers who want fuel
Audi provides its products
to people who want
transportation
Spotify provides its service
to anyone who wants to
stream music at a
reasonable price

Private sector organisation

Ø   James Dyson is a British inventor, industrial designer and founder of the Dyson Company
...

More over Dyson LTD is a British technology company that designs and manufactures vacuum cleaners, hand
dryers, bladeless fans, and heaters it sells machines in over 70 countries and employs more than 5,000 people
worldwide, which makes it a global organisation
...

Review of Dyson
Ø   Dyson is a global business in the private sector which manufactures and sale its products as its in both the
secondary and tertiary sector, more over Dyson is an LTD because doesn’t sale it shares sold on the stock
exchange
...
It is in the public sector as it is owned and partially funded by the government, it is also a not-forprofit as it provides the service of education to students and for students which pay for the courses, the money goes
towards funding their place on the course as they will be above the age limit for the government to fund their
education
...

Review of West Herts College
Ø   West Herts is a business in the public sector which provides a service as its in the tertiary sector, moreover west
Herts is an LTD because doesn’t sale it shares sold on the stock exchange
...
In most cases, the liability facing the owners of a business is limited by the value of their ownership

2  
 

share
...
Their liability is limited to the paid-up value of the shares they own and this
means that it is limited to the amount they agreed to pay for the shares when they bought them
...
Law to the amount he agreed to pay for the
shares when he bought them strictly limits more over the owner’s liability
...

Limitations to operation

Ø   Most of the money for the public sector comes through grants from the Treasury which is the government
department responsible for the country’s finance more over public organisations get revenue from charging for the
services they provide for example to get on a train you have to buy a train ticket
...
This also means that they have to keep to the budget as if a organisation makes a loss the
taxpayers will have to meet higher tax payments
...


Apples has national representatives which is why the quality of there customer service is good because
customers feel more at ease as they know they will be speaking to representative in the UK for example
in a functional structure, a customer support representative in India might speak with a customer from
England

Asos has employees working on their cosmetics for women grouped together while has everyone
working on their clothing and appliances would be in separate divisions

Where different customer
groups have different needs
...
More over NHS has customized care for those patients

Ø The different types of structure
v   What structure does your private sector org use?
DYSON

4  
 

Dyson has the PRODUCTION DEPARTMENT reporting to HRM,R&D,OPERATIONS ,MARKETING ,FINANCE AND
LOGISTICS DEPARTMENTS which also report to the CEO who reports the BOARD OF DIRECTORS
...
More over each functional unit handles one aspect of the service and top management is responsible for
coordinating the efforts of unit and meshing them together into a organised unit
...

The sales department purpose and
responsibilities are to maintain the
business’s customer base

Example applied to public
sector org
West Herts’s finance
department manages west
Herts accounts and staff pay
checks

Example applied to
private sector org
Dyson’s finance department
manages the company’s
accounts and pay staff

West Herts’s marketing
department help bring in work
applicant leaving secondary
school

Dyson’s marketing
department promotes the
business’ products

West Herts’s production
department is responsible for
Manufacturing student
resources like books and pens
West Herts’s customer
service answers students
queries and help them address
any problem they are facing
enquiry

Dyson’s production
department manufactures
high quality products

West Herts sale’s department
sales foods and drinks to
student

The Human Resources department is
responsible for many people related
issues in an organisation
...

Dyson human resources
department manages
employees with issues

Dyson’s customer’s service
helps customers facing
problems related to the
company product
...
 This  also  helps  the  business  to  better  manage  
changes  in  government  regulation,  technology  and  consumer  needs
...
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