Introduction:
Initially when a business starts and slowly it operates the market then different type of promptness begins to affect the business and create trouble to achieve the expected outcomes. During the starts, a new operation, macro and micro environmental factors affect the industry. Therefore a unique plan is needed to generate that reduce the negative impact on the process. To make this happen, a company should try to identify its weakness, strengths, opportunities, threats by other companies and according to them it should develop a strategy. This project is intended to highlight different aspects of the business environment.
LO1:
P1. Different Type and Purposes of Organizations:
In today’s world, many big corporations and various organizations formed to offer a better life choice to the human being and improve our society technically. In the world of business there are some common types of organization working for the industrial market which are given below:
- Startup
- Sole trader
- Companies
- Partnership
- Charity Organization
- Franchise
Different Type and Purposes of Organizations
Start-Up: The term startup is not a business or a manufacturing company for a particular product; it is a newly grown-up business strategy for an entrepreneurial venture. Its aims to find a recently develop marketplace for people facing an issue in their life. Although it is very risky project because this business deals with new market problems and the success rate of this type of project is very less. However once the business got success the profit amount will go to a very large amount. This business needs innovative skills that can use their skills to find a solution of the modern newly developing issue. The co-founders of this business are mostly college students, engineers, hackers, web developers etc. However that doesn't mean that only this profession have a future in this field, whoever has innovative thinking and problems solving skills with a different approach can create a carrier in this field. Meanwhile, it has a negative point, every business needs an investment, in other business as their success rate is quite as compared to the start-up business, the investor is easily shown their keen interest to invest another type of business rather than stat up marketing as the risk factor is more significant. The initial funding is an enormous problem, and that is the main reason to drop the business idea by many of students. However the country like U.S.A, U.K, China, Russia, and many other economically country have an excellent market for the start-up business, many investors are easily approachable and can invest their money for a perfect business plan. In India the market yet developing and take several years to come up.
Sole Trader: One of the most native cultures of the business is the sole trader, and it involves in a wild range of activates, which includes mobile filters, mechanical work, electrical work plumbing and many more, throughout the world. A significant portion of a sole trader is using in construction marketing business and also use in finance and catering business. No complicated paperwork and document it requires to establish a single trader business, and every conclusion can be made in no time. However for Business-related problems a close confidential contract can be made between the customer and employees. A good advantage to this business is that all profit goes to the sole trader that makes help to build a strong foundation and expand own business in the market. However, every business management system has a positive and negative portion and in this business too. All the essential decision makes on own and may have to try work hard and a longer time. The company requires management skills and bargaining power and also strong communication skills with customer. Being a sole trader, make once a great responsible person that helps to survive to deal with the modern market and all the investment have to provide the own businessman. As a sole trader, the business makes once a jack of all traders. In other countries including India, the sole trader is a successful business and makes the profit to the businessman. However, the necessary fund could not often be provided many times, and the problem is yet to be solved.
The Partnership: the partnership business can be done between two to five people but nowadays in online trading market policymakers are up to thirty people, due to the Partnership Act 2002, which means at a time some multiple people can access and control the business. It also has many advantages and as well as some disadvantage too. People in partnership can share their idea, business strategy and divide the workload among them. This helps to raise the capital needed for the business. For example, a group of people create a contain writer group, somehow one of them get injured or have some illness, then the particular person's workload can be divided by other writers. Partnership business contains a multiple calculate issue, like the total profit, is going to be shared among the total employees and who are going to gain a required amount as they work, this issue can generate a real-time problem in this business. However, the only disadvantage is that the internal conflict between the partners, which may harm the company. Thus starting Partnership business, one should have an out an out believe and confidence in their partner.
Companies: The Company should hold by the investor where the administrator of the organisation gives the direction of the business. The initial decision made by the chief supervisory officer of that company and a specialist group of the member will be assigned to run the company in support of the chief executive board. The shareholders put fund into a particular company to buy its share and invest it into share market to increase the amount of profit. Limited responsibility plays a role in protecting the company's shareholders. Every company should be registered with the company house and should contain an official address; nowadays it is mandatory for any company to hold its domain and official website because now most of the business deals occur in online platforms. The limited type of company has Ltd logo after their name. Ltd means the company is smaller than the privet companies. In private company, share can only be bought and sold with permission of the boards of directors of this company hence it is clear that the shareholders have fewer controls in the percentage in comparison to the boards of directors.
Franchising: Organizations made massive part of retail seals today which operating under the guidance of franchise like Subway's which now create its big franchise all over the world. It's become more and more famous and gain more popularity among the people involving the business world. Franchising maintains a particular business strategy, actually its use the brand names of the different company which is already famous. A franchise gives the authorisation to sell a product and trade under a particular area. The company selling the franchise is called franchisor and a person compensate for the franchise is called franchises. The franchise makes its benefit under a well-known brand or company and benefits from a local monopoly selling. Usually, franchisor provided the needed training. Most of the profits are taken by the franchise people.
Charity Organization: The charity Organization runs by publically or privately, and it is a nonprofit trust. Charities are mostly centred on some particular religion, social activates, related educational matters. Depending upon the location, all the legal issues are decided, and tax purpose settled. As stated it is a nonprofit organisation, but due to some unwanted authorisation, the charity makes the profit from the market. However, most of the charity funds run their charity to prevent lousy culture in society and improve the educational system in India. A good religion society can help to establish a charity organisation (Businesscasestudies.co.uk, 2018).
P2: The size and scope of a range of different types of organisation:
Sole Trader: According to the business market it is a small business to create self-employment which means the single trader business helps once to organise its work. Thus the person has not to go outside looking for another job. The company makes a country economically strong and gives partial freedom from depending on other countries. The sole trader can be provided with a duty to private individuals as well as a big company. Having a simple structure of the organiser, industrialist brings its capital. The entrepreneur is only responsible for the company's success as well as its failure.
Companies: The Company is an organisation, may contain a large number of shareholders. In these companies, every shareholder invests a particular amount of share into the market. The investment amount may be depended on various factors, as it depends on the company's exposure, how big the company is, the number of the investor in that particular company and how big its product market. Above all the mention factors, the investment money fluctuate.
Franchise: Franchise is work as a medium between the customers and the leading company or the leading brand. It is a system where an investor can distribute majors companies product like, for Coca-Cola Company, all its products distribute by a franchise to the ordinary people, but franchise distributes companies products in a substantial amount. In the U.S.A franchise is the leading economic powerhouse and spared all over America. One of the ten retail businessmen is work as a franchise, and almost eight million people work for them.
Start-Up: As the business is now developing and yet to become a significant market value, it has a limited scope and opportunities for people. It is nothing but to create an own business. If one has individual thinking ability and proper market strategy, have success in this business and make a lot amount of profit better than other company. Also Patience and continuously investment required for this business.
Charity: It is a type of nonprofit organisation, which runs from charitable funds given by others and government. Mainly it often depends on donation, if someone interest to help and solve the social causes, then it is recommended to those people (Wong, 2014). However, profit from the market is almost nil, but sometimes government gives that a particular charity a recognition that could help individual only.
Partnership Business: The business runs by two or multiple people, and in such activity, the partners have unlimited freedom from the debates incurred by the businessman and more responsibilities. The three most profit full partnership is the limited partnership, general partnership and limited liability partnership. In this business important decision takes by all the partners. As this business is running in small size, the business structure is the straightforward and less complicated procedure.
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