Business Environment: Public, Private, and Voluntary Sectors Analysis

This report provides a comprehensive analysis of the business environment, focusing on the distinctions and purposes of public, private, and voluntary sectors, including their legal structures. It examines the size and scope of different organizational types, such as public limited companies, private limited companies, and voluntary organizations. The report further explores the relationships between various organizational functions, including marketing, sales, human resources, research and development, finance, and information technology, highlighting how these functions interact within different organizational structures to achieve business objectives. The analysis includes examples of real-world companies like London and Continental Railways, 759 stores, and the Lok Sin Tong Benevolent Society Kowloon to illustrate the concepts discussed.

BUSINESS AND BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
QUESTION 1...................................................................................................................................1
Different types and purposes of public, private and voluntary sectors and its legal structures. .1
QUESTION 2...................................................................................................................................3
Size and scope of different types of organisations. ..............................................................3
QUESTION 3...................................................................................................................................4
Relationships of organisational functions with others and structures....................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Combination of internal as well as external factors which create both adverse and
favourable impact on the company is considered as business environment. It directly influences
to the business functions and stakeholders by which every firm cannot make effective decisions
at the workplace. Ultimately, goals and objectives cannot be achieved on time in proper manner.
In this article readers can ensures different types of public, private and voluntary companies and
the purpose of their incorporations and the legal structures. 750 store is a public limited company
and it deals with the retail stores. After defining public sectors, there is prudential limited
company which is private company which deals with mutual funds and insurance premium. The
Lok Sin Tong Benevolent Society Kowloon is a voluntary company and also known for the
services of providing employments. After describing all the organisation and its legal structures,
there are scope of organisational functions. In this article, readers can find all the important
meters that includes the relationship of all the organisational functions and the structures.
QUESTION 1
Different types and purposes of public, private and voluntary sectors and its legal structures
Public limited company- Public company is a limited liability company whose shares
are freely sold to the public (Bah and Fang, 2015). When the company incorporated there is a
minimum share capital for starting business. After passing an ordinary resolution, company can
increase or decrease its authorised capital.
Types of public company- public companies are classified according to member's
liability. Which are company limited by shares, company limited by guarantee and unlimited
liability companies. Companies in which shareholders are liable to their nominal capital shares,
are limited by shares. Companies in which members can place a guarantee on the company and
during the winding up it can be enforced, are companies limited by guarantee. The company
whose members have no limits or they are liable to the debts of company, are unlimited
companies.
Purpose of London and Continental Railways company- purpose of London and
Continental Railways company is to provide services to the passengers of United Kingdom. Its
main goal is to develop railways infrastructure. The company primarily focuses on public
welfare.
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Structure of public company- Landon and Continental Railways company owned by
British Government. It was established in the year 1994. Main objective of formation of this
company is to develop railways department. It provides railway services to the passenger.
Private limited company- Private companies are privately held for small businesses. 759
stores company have a private ownership and the liability of members are limited to the amount
of shares. There are minimum two members required to start the company and maximum number
is limited to 200 members. The company leads to perpetual succession and it is mandatory to use
private limited word after its name. The main goal of formations of private companies are to
maximizing profits by increasing share price and company value. There are some social
responsibilities like balancing profits with communities, partners and customers. Private
companies have objectives of making money for the stakeholders (Beaumont, WHITAKER and
PEDERSEN, 2013).
Types of private limited company- Private companies are divided into three categories.
Company limited by shares, in this company the liability of shareholders are limited to the
nominal amount of their share. Company limited by guarantee, in this the liability of members is
limited to the guarantee amount mentioned in the memorandum of association. Unlimited
company, are those companies that do not have any limits and the liability extends to the
company's debts.
Purpose of private company- The main objectives of formation of 759 corporations is
profit maximization for their shareholder (Eichner and Pethig, 2014). The another objectives of
private company is transparency in the reports to the stakeholders. 759 store company is a private
limited company formed with the registration. Memorandum of association and Articles of
associations are important documents which are compulsory to be filed. In this document
company describes its name, objectives, rules and other internal affairs.
Legal structure of 759 stores- For the registration of private company there are some
requirements. Such as the owner should provide the address of company, company must obtain a
digital signature certificate for the verification of authenticity of documents. The company was
formed on 7 July 2010. Coils lam wai chun was the founder of the company. The mission of the
company was to fight large chain supermarkets. The board of directors is set out in the articles of
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association of company. The minimum number of members of this company is seven and there is
no limit of maximum numbers.
Voluntary companies- The Lok Sin Tong Benevolent Society Kowloon provides training
and job opportunities to the unemployed people. The company can be described as non profit
motive company, whose purpose is to benefit society. Such as charities, foundations, social
welfare organisation, community groups and faith based organisation.
Types of voluntary companies- The voluntary company is known for the non profit
organisation, in which services are provided for social benefits. Such as medical services, and
agriculture. Voluntary companies like politically non partisan can be open for the benefits of
public sectors.
Purpose of voluntary organisation- The main purpose of Lok Sin Tong benevolent Socity
Kowloon is to research and analysis better use of government resources for the benefits of
society (Eng, 2015). The primary mission is to provide employment to handicapped persons.
Legal structures of voluntary company- The company resides neither in the public nor in
the private company. It fulfils most important role in a free market economy. There are many
options available for formations of voluntary organisation. Charity needs to submit an
application to charity commission. Trust is governed by the trust deed and it can not enter into
any agreement. It can be open with personal liability.
QUESTION 2
Size and scope of different types of organisations.
Public limited company- A company which have a minimum of seven members and no
limits on maximum members. In the public company shares are hold by the public which
increases the assets' liquidity and also improves transparency.
Continuity of existence- According to the companies' law public limited company has a
separate legal entity. The activities of formation and its winding up are governed by law.
Registration of the company is a primary duty of it. The company is an independent legal person,
it is not affected by the death of owner.
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Large amount of capital- The company sales it shares to collect capital amount. It is a
company that is able to offer its share to the public. Public companies are able to raise funds
through funds (Gallemore and Labro, 2015).
Limited liability -The shares of shareholder are freely transferable. In public company
shareholder can buy and sell shares on a stock exchange. So company does not need to depend
on banks. It also improves transparency of company. The share can be divided between
managers and shareholder.
Private limited company- 759 stores private limited company, it has a private ownership.
It can issue stock to the members of company but not to the public. There two type of private
limited companies, limited liability corporation and sole proprietorships. The company owned by
privately, though less visible than public limited companies. In the economic growth private
company plays an important role. Each categories may have requirements for the governmental
obligations and for employee relationships.
Private organisations are being challenged for technological progress. Private company
can find the right balance between needs and long term goals for the succession of its business.
The company need to pay attention on development (Hamilton and Webster, 2015).
Voluntary company- Company voluntary arrangement (CVA) provides opportunities for
companies to pay its debts in the fixed period of time. The company become an irresistible
global force. Voluntarism draws its inspiration in a free society. It has been used interchangeably
with agencies or non government organisation (NGOs). It is a formalized organisation which are
beyond the market and states.
Lok Sin Tong is the largest charitable company in Hong Kong. It has offered quality
medical, car services as well as education services (Lee, Chen and Liu, 2013). The growth of its
businesses can be determined by its services, it includes 5 medical clinics, 5 elderly services
units and 18 schools.
QUESTION 3
Relationships of organisational functions with others and structures
Marketing function- Marketing is very important process for the succession of business
it involves researching, presentation of product and services and packaging of product.
Advertising helps to inform customer about the product and services. This organisational
function is related to other functions, research is one of the main source of good productivity and
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profitability. It can be done by human resources. The process of marketing includes packaging,
transportation, risk assessment and quality control, which are not possible without human
resources. Marketing is derived from advertising our good and services to increase profitability
and these can not be possible with the lack of technologies. Research is a major function of
marketing to fulfil current needs. As well as financial resources are also related with the
marketing because advertisement is required money to introduce in the market (Worthington and
Britton, 2015).
Sales function- Sales plays an important role for the organisation. it helps to increase
productivity and also increases revenue income. For the achievement of organisational goals
sales function is required. Customers can use the goods and services from this function. It helps
to develop the business. For selling of product and services marketing is required.
Human resources function- Human resources provides the ability to meet business
needs to the organisation. It is a very valuable resources, employees play a main role in the
production. There are many HR practitioners in several areas. Organisation requires recruitment
process for the organisation to fill those positions. But it is also related to other organisational
functions. Such as human resources can not do anything without technologies and research and
development process because human resource includes recruitment and training facilities for
employees and it requires marketing. Without marketing of organisation candidates can not find
the requirements. Another without financial function marketing, human resources and research
and development process are not useful.
Research & Development function- Research and development process refers to the
investigation of activities of business. It includes many activities to improve existing products
and services. The term research and development is a concept of innovation. There are two
structures of research and development, one is research and development model that is staffed by
engineers and other one involves industrial scientist and researchers (Belás and et.al., 2015).
Research and development process are related to the marketing, human resources and financial
resources, because for the development manpower and finance are required. After production
marketing of product also an important activity for businesses.
Financial resources function- The money in the form of cash, securities and credit lines
available to the business are known as financial resources. It is a term of financial funds or assets
of the organisation. There are three structure of financial funds which are business fund like
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securities, cash, deposits and cheques. Corporate capital like equity capital and sum of all money
which are invested in the organisation. Financial resources have various forms of securities such
as shares, bonds, debenture, money and gold, promissory notes and cheques. For formulation of
company financial resources are very important. It is connected with the research and
development, human resources and marketing process. Only share capital can not fulfil the
requirement of a successful business. Human resources are required for the productivity.
Marketing and advertising is required for promoting products and services (Chavis, Klapper and
Love, 2011).
Information technology function- Information technology refers from the use of
computers, networking, storage and other devices and infrastructure to create, store, secure,
exchange process in electronic data. It is used in the context of personal or entertainment
technologies. It also includes several physical equipment, automation tools, applications for the
used to perform functions. Information technologies also refer to the methodologies,
architectures and regulations and storage of data. Computers are useful for running applications
of businesses. Storage is also a technology that holds information or data. This function is also
related to the other functions of organisation. Human resources are important for the functioning
of information technologies, because without employees the use of technologies are work less.
Financial crises creates non productivity, so there is no use of information technology. In the 759
stores public limited company information technologies are related with the human resources
function, research and development function, financial resources function and marketing
functions (Welford, 2013). Research and development, employees, share capital and advertising
of product and services are required for the production.
Structure of 759 stores- Public sectors- 759 store is a Hong Kong stock exchange
company. 759 is a retail company who secures over 90 % shares of product as a self imported.
The members who purchased shares of the 759 stores in the year of 2016 was about 380000, and
the members who purchased shares more than one time was 1100000.
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Illustration 1: Organisational strcuture of 759 store
Looking at the aforementioned chart it can be identified that, 759 store company
considers and implements functional organisational structure in its workplace. As per the applied
structure, whole company divided in each and every department of it. Apart from this, manager
for every function are recruited or appointed in the working environment. The reason for
selecting this particular structure is that, it helps to meet those goals and objectives which are
prepared as per the functions. The functional organisational structure includes various managers
like marketing, human resource, research and development, information technology, financial,
production and operation, sales and distribution etc (Samiksha, 2017). Once the goals of every
department achieved in the selected private company i.e. 759 store then it can fulfil
organisational objectives.
The selected organisational structure by 759 store is highly beneficial for it in order to
appoint specialised manager at the workplace. Apart from this, in order to establish an effective
coordination and co-operation among every departments of 759 it is highly useful. It leads to
boost up efficiency of the employees and ultimately productivity of the whole organisation will
be raised. It is clear indication of meeting business objectives in the retail sector. Every business
wants that its workload will reduce at the working environment and if there is peak load then will
be managed properly. The functional organisational structure has pivotal role in this kind of
situation due to which objectives of the whole entity can be achieved easily (Shigang, 2010).
Hence, it can be said that organisational structure of every company linked with its objectives
and goals.
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CONCLUSION
From the above analysis, all the organisational functions of public limited companies,
private limited companies and voluntary companies can be determined. 759 stores company is a
public limited company which deals with the retail company. In this, readers can find the
relationship between the marketing function, financial resources function, human resources
function, information technology function and research and development. That human resources
are important for marketing, financials information technology function as well as other
functions are also important for each other. And the last it can be found that how private
company , public company and voluntory companies are linked with each others.
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REFERENCES
Books and Journals
Bah, E. H. and Fang, L., 2015. Impact of the business environment on output and productivity in
Africa. Journal of Development Economics. 114. pp.159-171.
Beaumont, J. R., WHITAKER, B. and PEDERSEN, L., 2013. Managing the Environment:
business opportunity and responsibility. Elsevier.
Belás and et.al., 2015. The business environment of small and medium-sized enterprises in
selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management. (1).
p .95.
Chavis, L. W., Klapper, L. F. and Love, I., 2011. The impact of the business environment on
young firm financing. The world bank economic review. 25(3). pp. 486-507.
Eichner, T. and Pethig, R., 2014. International carbon emissions trading and strategic incentives
to subsidize green energy. Resource and Energy Economics. 36(2). pp.469-486.
Eng, P., 2015. Trading Places: An Airport Economist's Guide to International Business, by Tim
K. Harcourt (New South Publishing, Sydney, 2014), pp. Ix+ 404. Economic Record.
91(292). pp.126-127.
Gallemore, J. and Labro, E., 2015. The importance of the internal information environment for
tax avoidance. Journal of Accounting and Economics. 60(1). pp.149-167.
Hamilton, L. and Webster, P., 2015. The International Business Environment. Oxford University
Press.
Lee, T. C., Chen, H. C. and Liu, S. M., 2013. Optimal strategic regulations in international
emissions trading under imperfect competition. Environmental Economics and Policy
Studies. 15(1). pp. 39-57.
Shigang, Y., 2010. Competitive strategy and business environment: The case of small
enterprises in China. Asian Social Science. 6(11). p .64.
Welford, R., 2013. Hijacking environmentalism: Corporate responses to sustainable
development. Routledge.
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