Unit 1 business and the business environment l/508/0485 table of contents



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UNIT 1 BUSINESS AND THE BUSINESS ENVIRONMENT
Private Liability Company: These are organisations managed by few individuals privately having a separate legal entity. In this, the shareholders cannot trade publicly shares. It limits its number of shares to 50. It is a business organization which restricts the right of its members to transfer its shares and it does not send the invitation to the public for subscription of its business shares. Private liability companies are to be registered with the companies’ house; they are to pay tax to the HMRC office; and then, they are declare their account to the HMRC office. Other features include that the liability of each shareholder or members is limited, it has perpetual succession even in the face of death, bankruptcy etc., private limited company is used after the name of the company. Examples in the UK include Iceland Ltd, Westridge construction Ltd etc.
Public Liability Company: Sometime called publicly traded company, is a limited liability business organization that offers other services such as stock, bonds or loans to the public. A major characteristic of public companies is their limited liability status, this means that the business's owners which are its shareholders aren't responsible over a set amount for their investment in the business or company. This means that if a public company is legally sued, the parties bringing the suit bring it against the company and not against its investors or shareholders. Legally, organisations or companies like this must be registered as a company with the Companies House and always make sure that they are to remit tax to the HMRC office and they are to make known their annual return to the HMRC office. The media should have access to it.
Stakeholder involvement is another major feature of public company management. This means engaging all of the people involved with the business or company, including the employees, shareholders, directors, managers and the community at large. Examples in UK are Sainsbury’s PLC, Waitrose PLC, etc.
Voluntary or Non-Governmental Organisations
They are non-profit making organisation, and are not controlled by the government. This organisation is responsible for social and charity activities undertaken by organisations that are non-profit organisations and non-governmental. Voluntary or non-governmental organisations are usually not affiliated with any government agencies formed to provide services or to advocate a public policy (Margaret P. Karns, 2020). Examples of charity organisations in the UK include: UNICEF, The save the Children Fund, Cancer Research UK, Wellcome Trust, Water Aid; Action for Children etc.


SIZES AND SCOPE OF ORGANISATIONS
Organisations are of different sizes and they are said to be large, medium-sized, small and micro organisations/businesses. They have features that distinguish them and this ranges from their turnover and their employee size. The Department for Business in the United Kingdom (UK) defines SMEs as companies with less than 250 employees and SMEs are the small and micro enterprises.
Micro Organisations
Micro organisations are organisations or businesses fewer than 10 employees and turnover of under £2 million according to the European Union definition of an SME. According to the Office of National Statistics (ONS), that have definitive statistics on the UK businesses; in 2015, 4,077,590 businesses are single owner operators and a further 1,068,815 businesses have staffs between 1 and 9. The micro organisations has a vast scope that covers a wide range of activities and business operating under such organisation only requires less sophisticated technology to thrive and such businesses can at a point be found along the chain of business in the retailing, repairing, manufacturing, servicing, financial and even construction activities (DK Sinha, 2018).
Small Organisations
According to the Companies House and for accounting purposes, small organisations or businesses are those employing less than 50 people (i.e. 1 to 49) and have an annual turnover of under £6.5 million; and according to the European Union definition of an SME, small businesses have less than 50 employees and annual turnover of under £10 million and they are to be registered with the Companies House and remit their taxes to the HMRC office. The organisation I work for (………….company name…………) as introduced below is a private and small-sized organisation which has 32 employees and do have annual turnover of over £8 million. It focuses on the ……………………The scope of micro and small organisations is vast and covers a wide range of activities and business operating under such only requires less sophisticated technology to thrive and such businesses can at a point be found along the chain of business in the manufacturing, servicing, retailing, repairing, financial and even construction activities (DK Sinha, 2018). ………..company’s name………. make use of the flat structure which has limited or few levels of management – it gives employees the chance to make well informed decisions on their own; and this have make the running of the organisation to be effective and it has been able to provide jobs and opportunities for small organisations.
Medium-Sized Organisations
They are organisations or businesses with less than 250 employees and annual turnover under £25.9 million according to Companies House and for accounting purposes. The European Union definition of an SME has it that medium-sized organisations are organisations or businesses with less than 250 employees and annual turnover of under £50 million (Richard Jobling, 2018). Medium sized organisations can make use of the divisional or even matrix structure. The divisional structure ensure medium organisation operates from each unit, branch or department and as a separate entity whereby the management level is more and the decision making process need to be done in a way that orders and permissions are taken before it is made.
Large Organisations
Large organisations have employees more than the micro, small, and medium organisations. According to the European Union, they are 250 or more with regards to employees and large organisations offer some big benefits such as generous perks, bigger salaries, fancy offices etc. An example of large organisation in the United Kingdom is Tesco Plc, it has over 480,000 employees indicating the feature of a large organisation, ADM Group is another large organisation based in the UK with over 400 employees across 27 offices in 19 countries. HL plastics is also a large organization in the UK with over 300 employees. Large organisations are majorly public organisations and big private businesses or organisations that are basically in the manufacturing/production and they are structured in such a way that they create jobs for SMEs i.e. Small and Medium Enterprises.
Large organisations make use of a more sophisticated structure of operation such as the divisional, tall or matrix structure of which each units or division operates as a separate entity. As seen in some public or government organisations which make use of the tall structure; they have many management levels and supervision. The chain of command is long in its operational system. Using a tall structure orders starts from the Chief Executive Officer to various levels of command down to the lower staff in the organisation. Fraser S. (2019) stated that large organisations that make use of the divisional structure spread their functions across different branches especially manufacturing organisations with different product lines.


INTRODUCTION TO ORGANIZATION
LO2: DEMONSTRATE THE INTERRELATIONSHIP OF THE VARIOUS FUNCTIONS WITHIN AN ORGANISATION AND HOW THEY LINK TO ORGANISATIONAL STRUCTURE
FUNCTIONS OF ORGANISATIONS
Various functions do exist in an organisation and they are responsible for carrying out different activities within such organisation. Examples of them include: Administration, finance, sales and marketing, production, distribution, personnel, maintenance etc. Some of them are explained thus;

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