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Report on Types of Organizations Operating in a Business

   

Added on  2020-06-04

12 Pages3125 Words84 Views
REPORT ON TYPES OF ORGANISATIONS OPERATING IN A BUSINESS ENVIRONMENT)GSKFrom: Business AdvisorySubject: An analysis of types of organisations: purpose, size, scope, legal status and structureExecutive summaryThe study will focus on different types of the organisations like private, voluntary and public.It will focus on the features of the organisation and legal structure of the ventures would beanalysed. In order to analyse the study GlaxoSmithKline (GSK) has been taken. The size,scope and structure of organisations would be discussed here. SWOT and PESTEL analysiswould be done for developing the business structure of the venture.

1.0 IntroductionDifferent types of business organisations like public, private and voluntary sectors help touplift the economical condition of the country. The financial development of the organisationdepends on their objectives, structure and size. Therefore, the study will focus on the types ofventures and their scope in the market. It will provide discussion about the factors thatdetermine the organisational size and structure. PESTEL and SWOT analysis would be doneunderstanding the business condition of GlaxoSmithKline plc (GSK). Task 11.1 Types of venturesa) Public sectors venturesAs commented by Van Dooren et al. (2015, p.456), the public sector organisations aregoverned by government of the country. It provides service like public education, military,police, water supply and so on to the people as they can lead their life appropriately.GlaxoSmithKline is the example of public sector organisation and provides health relatedservice like vaccine to the people. FeaturesThe authority of the public sectors needs to take permission from the government of thecountry. In case of GlaxoSmithKline, Emma Walmsley (CEO) and Sir Philip Hampton(chairman) run the venture maintaining the regulation of government of UK (gsk.com, 2017).Contribution of people helps to build fund for running the ventures. They cover the specificarea for providing their service. GSK provides worldwide service by preparingpharmaceutical products. Figure 1: GlaxoSmithKline(Source: gsk.com, 2017)Objectives and goalsObjectives To achieve best position in the worldTo provide best services as people do not face problems related to their health.GoalThe goal of GSK is to introduce new medicines as people can lead their life properly.

Legal structureThe public sector organisations follow the rules and regulation of UK government. Thelegislation is Medical Council Act 1956 for maintaining the legal structure of GSK(learn.sssc.uk.com, 1956). b) Private sector ventures [John Lewis Partnership]The private sector organisations help to earn profit in the contemporary era. Privateorganisations are the part of government (Jia, 2014, p.300). John Lewis Partnership is theexample of private organisation (johnlewispartnership.co.uk, 2017). Figure 2: John Lewis Partnership(Source: johnlewispartnership.co.uk, 2017)Objectives and goalObjectivesTo expand business of the organisationTo maintain legislation for running the venture legallyGoalThe goal of the organisation is to develop the economic condition of UK. Legal structureThe private sector ventures need to have trade licence and VAT registration for running thebusiness appropriately. Types of private sectors venturesSole tradersThe features of sole traders are owner can enjoy the entire profit of venture.AdvantagesReceived entire profitMaximum privacyStart-up cost is lowDisadvantageUnlimited liabilities about debtsBoss is the responsible Legal formControlTax ConsiderationsPartnershipFeaturesPartnership business helps to share the risk and profit of venture with the partner. Generalpartnership indicates that partners can take joint decision and limited partnership (LLP)reflects that partners take decision in the specific aspect of business. Advantages

1.Share risk2.Increasing the source of capitalDisadvantage1.Unlimited liability2.Share profit3.Taxes of self-employmentLegal formThe partners of venture need to contract paper for getting profit equally in the legal way.Joint VenturesFeaturesArgument between two or more personNeed to share profit and lossAdvantageCan access new network of market and distributionDisadvantageNeed to share risk and profit with partnerLegal formAs per the legislation of UK, joint venture is short-term partnership and the partners need tosign in the contract paper. FranchisingFeatures1.Entrepreneurial spirit and desire for improving skillsAdvantageCan gather experienceDisadvantageExcessive cost, which is unexpected Legal formUK follows commercial law in case franchising business.CompaniesFeaturesLimited liabilityMany shareholdersAdvantageStock exchange and equal shareDisadvantageMaintaining cost is expensiveLegal formPublic company is governed by government and the government partially governs the privateventures. LicensingFeaturesIt proves that the organisations are running in the legal way.AdvantageLegal organisationDisadvantageAnyone can access confidential data

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