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P1 Different Types of Organisations And Their Purposes

   

Added on  2020-10-22

13 Pages3227 Words93 Views
BUSINESS AND BUSINESSENVIRONMENT

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3LO 1.................................................................................................................................................3P1 Different types of organisations and their purposes:..............................................................3P2 Size and scope of different organisation................................................................................5LO 2.................................................................................................................................................6P3 Inter-relation between different organisational functions and how they help in achievingGM's objectives...........................................................................................................................6LO 3.................................................................................................................................................7P4 Macro factors' positive and negative impact on GM..............................................................7LO 4.................................................................................................................................................9P5 Identifying strengths and weakness and external analysis of GM.........................................9P6 Interrelation of GM's strengths and weakness with the external factors:.............................10CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11

INTRODUCTIONBusiness environment consist of macro external factors like political, technological,legal, economic, and internal factors within the business organisation like employees,management, customers financial resources which affects the company's operations. The presentreport focuses on General Motor, a company originated in America and its headquarter is inDetroit, Michigan U.S. It is a public company and is engaged in designing and manufacturingauto mobiles and also deals in financial services. The current report will include different typesof organisations, their size and scope, how the different organisation functions co related witheach other, how external factors affects the General Motor and its SWOT analysis.LO 1 P1 Different types of organisations and their purposes:There are different types of business organisations which differs according to their size,scope, organisation structure and legal structure. They are discussed below:Public Limited company: Public limited organisations are those which allow its ownership tothe public simply by selling its shares. It is called limited company because the liability of theshareholders are restricted to the amount they invested in case of winding up of the company. These companies are listed on the one or more stock exchanges.The company has to have minimum of £50000 allotted shares.Receive certificate from the company registering authority. Have to use word plc at the end of their authorised name. It must have minimum of two directors and a company secretary. The shares of plc are freely transferable by trading on stock exchanges.

It must have Memorandum of Articles and Association which states it bye-laws andclauses within which it has to work.Purpose: The primary objective of a plc is to increase the shareholders value and to raise morecapital by issuing IPOs. The secondary objectives include all the goals and targets for which it isformed.General Motor is a public company and is listed on NYSE, S&P 100 and 500 component.Private companies: Private organisation are those whose ownership is not in the hand of thepublic and can not issue IPOs for raising its capital but rather arranges it through privateplacement of shares, or through the amount contributed by its members(Soniewicki andWawrowski, 2017).These companies must have at least one natural person acting as a Director.Company secretary is optional for private companies.No restriction on minimum capital requirements.May or may not listed on the stock exchanges.Shares of the private company are not transferable.Registration with respective companies' registering authority.Memorandum of articles and association are compulsory.Small business company are given ease in filing accounts.Purpose: The primary objective is to survive and increase the profits margins and enlarge itsmarket share.Voluntary organisation: These are the companies that are formed to serve the social needswhich are not met by the other two types. It is bunch of people who comes together tovoluntarily form an organisation which will work to achieve its objective. These companies file a declaration to the appropriate authority that the company willsolely and purely work towards the purpose for which it is formed which is a social cause. Forexample charity, trust.Purpose : The basic purpose is to serve society and work for social benefits.

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