Types and Purposes of Different Business Organizations

This presentation provides an overview of the types and purposes of different business organizations. It covers sole traders, partnerships, companies, and charity organizations, discussing their scope, characteristics, and objectives. It also explores the classification of companies based on different sectors and the size and scope of different types of organizations. The presentation concludes with a focus on BT Group Plc., discussing its background, products and services, size and scope, vision, mission, business objectives, and legal structure regarding stakeholders.

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P1 Types and purposes of different business organization

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Sole trader-This is a time of business activities where only one person
is responsible for development of their business activities from
marketing, promoting, dealing to decision making related to their
business activities. Many small scale business and startups are
considered as sole traders e.g. Anite an small scale business is a sole
trader.
Scope – They have small capitals, less risk involvement, liability is not
much, size of business is very small and it is limited in particular
geographical region.

Plan and Partnership – It is recorded as collaboration of two or
more that two people sharing their business resources and do
business activities. For success of their joint venture they share their
skills, values, knowledge, inventory and plan with each other for
gaining better profit from market place
Scope- Partners sell and buy on partnership’s behalf in credit or
cash, partners mostly avoid donating and lending money from
capital of their partnership ventures, and partners cannot take lines
or lent money without taking advice from their partners.

Company - It is a legal body that has their own existence and right to exist and
business in business market. Most of the investment for a company is mainly due
to shareholders as they can give suggestions and inputs for creating values for
organization.
Scope – Focus on increasing their customer base in different market to earn
more revenue for their products, expanding and creating brand image are some of
the important aspect of their growth policy.

Charity organization- These are as non- profit organization can
exist in public or private sectors. Creation of charities may be for
a social cause, philanthropic activity, education, community,
religion etc. Welcome trust, British Red Cross is some of the
renewed charity organization tends to invest in health and wealth
of country
Scope – Expect no return for their charity programmer, their main
aim is to donate in social cause and upliftement of society.

LTD. – These are limited companies where liabilities and rest of members are limited.
They only have risks and uncertainties in accordance to investment and share values.
BT group, Marks and Spencer are some of the renewed LTD. Company doing good
business across UK.
Scope – limited company are mostly large organization as they perform
philanthropist activity across country by donating some amount for growth and
prosperity of country, through these activity they generate goodwill and faith about
company that help them exceptionally in sales and marketing activities.

Classification of companies on the basis of different sectors.

Private sector Company –Concentrates on expanding their business and earn more
revenue from profit market. They can be large and small scale organization depending of
their growth, size and stability in market. Apple ink, Arcades Group, Best way, John Lewis
Partnership are some of the major organization earning large sum of revenue.
Public sector Company – These are the type of company that are owned by government
and are formed for the motive of serving common people in country. BT Group is recorded
as a one of the largest private sector company across UK.Other public sector organization in
UK are Audit commission, AWE (Atomic Weapon Establishment) etc.
Voluntary organization – A voluntary organization is a group of people who come
together and organize them to serve people by providing basic resources . They are many
NGO working round the clock to serve needy people. Some voluntary organization across
UK is Cancer Research UK, National Trust, Oxfam etc.

P2 Size and scope of different types of organization

Background- BT Group Plc. has a long history it was established in 1846and
initially named as Electric Telegraph Company and considered as the first
telecommunication company of Britain. It has started its journey by providing
telephone service and added innovative ideas and features in their business
activities. At the end of 2017 they are having around 106400 employees working in
all across the offices of organization.

Product and services - Currently they are dealing in wireless
telecommunication network, broadband services, mobiles and
wired networking, Digital television, Home Security,
Telecommunication equipment’s, Supply chain management and
are able to expand their business in across 80% of the countries of
the world.
Size and scope of BT Group Plc. - Company has made their mark
in almost 180 countries. It has a strong base of skillful employees
across different division of survive of organization across globe.
The company is divided into different divisions like Business and
Public Sector, Open reach, TS&O , Global services etc. They have
a scope of introducing creativity in their business, implementation
of innovative ideas and serve most number of people across the
world

Vision, mission and business objective of BT Group Plc. –
Vision – Their main vision is to make different planning and invest in different
market all round the world. They want to put the whole world under one
connectivity with their variety of services.
Mission- Their main aim to put dedication in their services and enhance
experience of customers, they try to be customer- centric to increase their
shareholders.
Business objectives –to increase their potential in competitive business
market. By increasing productivity and increasing sales they can increase their
revenue base. Adopting ethical way of doing business to generate trust and
faith about the product among their customers.

Legal structure about stakeholders of BT Group Plc.
Company is having different types of stakeholders investing in business activities of BT
Group Plc. Stakeholders in enterprise are divided into internal and external category on the
basis of their existence in business market.
Meaning of stakeholders- They are group of people shows interest and contributes in
activities in business of an organization. These people can be employees, mangers or propel of
any designated post in organization, these people are regarded as internal factors and of an
organization

Approach of BT Group Plc. towards their stakeholder- They believe
in concentrating ethical approach of activities of stakeholders and plan to
maintain long term relationship with them. They treat their stakeholders
as prominent partners.

Internal stakeholders – These are people in organization of different designation
and work. Having more internal stakeholders shows strength of organization in
business their business structure.
External stakeholders- These are the people that are attached to company in one or
other form. These elements includes government bodies, suppliers, customers and
business partners
Potential stakeholders of organization – It is crucial for organization to judge
potential stakeholders and their activeness in business of organization. For that BT
Group plc. Have given priority to their customer according by scaling their
approaches and investments.

REFERENCES
Books and Journals:
Ahmed, I and et.al 2011. External factors and entrepreneurial career intentions;
moderating role of personality traits. International Journal of Academic
Research. 3(5).
Auzair, S., 2011. The effect of business strategy and external environment on
management control systems: a study of Malaysian hotels. International Journal
of Business and Social Science. 2(13).
Barnett, M. L. and Salomon, R. M., 2012. Does it pay to be really good?
Addressing the shape of the relationship between social and financial
performance. Strategic Management Journal. 33(11). pp.1304-1320.

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