Business Organizations Report: British Economy and Sector Analysis

This report provides a comprehensive overview of business organizations within the British economy. It begins by defining a mixed economy and its relevance to the UK, followed by an in-depth examination of different types of private organizations, including sole traders, partnerships, and limi...Read More

BUSINESS
ORGANISATIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
SECTION 1:.....................................................................................................................................1
Mixed economy in relation to British Economy.........................................................................1
SECTION 2......................................................................................................................................1
Explain types of private organization by covering legal and financial structure........................1
SECTION 3......................................................................................................................................3
Methods of growth used by private sector organization.............................................................3
SECTION 4......................................................................................................................................4
Contribution of public sector to the British economy.................................................................4
SECTION 5......................................................................................................................................4
History of Privatisation in British economy as well as its role. .................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
In order to remain competitive in the open market place business nee to be organized in
proper manner. By examining the external environment tactics should be farmed so that
organizational behaviour can be conducted properly (Amado and Amato, 2018). To gain
competitive advantages in the open market place it is essential to study organization behaviour
deeply so that necessary improvements can be done in the initial stage. In order to gain
competitive advantages in the cut throat competitive world organization behaviour must be
examined. This assignment covers, mixed economy in relation to British economy. The legal
structure and financial structure of sole traders, partnerships, public limited etc. are explained.
Along with this history of privatisation in the British Economy are measured. Additionally,
impact of privatisation on British economy is identified.
Main Body
SECTION 1:
Mixed economy in relation to British Economy
Mixed economy lie in of both private and government owned entities which share control
of owning, selling and exchanging good in the economy. U.S and France are the two examples of
Mixed economy. Whereas, British economy is explained as,where buyer and seller both have
decision making power and are not bound by rules and regulations of government. Tesco and
Mark and Spencer are two companies operating in mixed economy. Both the organization are
operating independently in the global market. There is no restriction of government on this
companies so they can expand and explore their businesses anywhere (Anderson-Gough, 2018).
SECTION 2
Explain types of private organization by covering legal and financial structure
Basis Sole traders Partnerships Private
Limited
Companies
Public Limited Companies
Meaning Individual run
and operates the
Business operate
in the market with
Ownership is
used by many
It is a completely legal
entity from its owners. It
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business and are
self-employed.
partners. Here
minimum partner
must be 2 and
maximum can be
as much.
jurisdictions.
There are
limited number
of employees
say 50 staff
members
is owned by shareholders.
Legal status There is no legal
distinction among
owner and the
businesses.
They are not legal
entity
Here, owner
liability is
limited to the
shares
(Audenaert
and Decramer,
2019).
Liability of public firm is
limited. No individual
shareholder is accountable
for payment all alone.
Financial
structure
All the profit are
hold back after
paying the tax to
the governing
bodies.
Taxes are paid on
the distributive
share of
partnership
income passed
through them.
Share are
prohibited
from sharing
publicly.
They must have at least
£50,00 issued share
capital.
Compare Work for profit
maximization and
provide
employment to
the people.
Work for the
business
expansion which
indirectly assist in
creating more job
opportunities.
Work for the
people which
indirectly raise
their living
standards.
Maximization of revenue
is their main motive and
focus on business growth
and development. This
results in eliminating
unemployment from the
nation (Wilson, 2018).
Contrast Owner make
decision about
staring and
operating their
The activities
conducted by
partnership should
be legal and
They are not
allowed to sell
its share to the
Public organization is able
to sell out their shares to
the general public.
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self business. As
well as generate
employment
(Bourne and
Parry, 2019).
motive is to
generate profit
public
SECTION 3
Methods of growth used by private sector organization
Ansoff Matrix is also known as product or market expansion Grid. With the help of this it
summarizes potential growth tactics and interlink them with risk associated with each other.
With the help of this management is able to identify which marketing strategies must be used in
the activity of marketing so that best results can be attained easily. The elements of Ansoff are
illustrated as under:
Market penetration strategy: Through this organization is able to sell their existing
product in the current market. Top level management can easily raise their sales ratio because
same goods and services are to the targeted customers in the same market in the competitive
market place. Business associates with less efforts are able to achieve their set goals and
objective in the specified time duration which is a positive mark for the company in the global
market (Coccia, 2018).
Market Expansion or development: Organization in this case, commercialize their
existing product in the new and fresh market. Here, effective marketing strategies and present
goods and services can be sold in the new market so that huge market ratio can be captured in
short time duration. Additionally, before entering the new market with the present product and
services it is essential to scan the market so that demand and preferences of the client can be
better understood and chances of failure can be reduced to a large extent.
Product expansion strategy: It involves, new product in present market. Business
associates come up with innovative goods and services in the existing market so that more
customer base can be raised towards their offerings. Potential customer seek innovative product
and services in the present market and with the help of product expansion strategy it can be
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fulfilled. Company with this growth strategy is able to bind customers for longer time duration
towards their product and services (Derakhshan and Turner, 2019).
Growth through diversification: It is another step of Ansoff matrix where, completely
new product is launched in the fresh new market. Organization need to put extra efforts to make
their innovation goods and services successful in the global market. Before entering the new
market with new product management must study the market scenario and customers
expectation level. By doing so organization is able to gain competitive advantages against rivalry
prevailing in the existing market.
SECTION 4
Contribution of public sector to the British economy
Public sector organization are those which are owned and operated by governing bodies
and work for the welfare of the people of the nation. Their contribution to the British economy
are illustrated as under:
Provide employment: Governing bodies are providing many job opportunities to the
nation people so that unemployment ratio can be eliminated to a large extent. They offer many
job opening in many sector so that skilled employees can be given suitable job in the nation. By
this British economy raises because employment ratio is raising tremendously.
Military services: Governing bodies is opening many job opening in military area so that
unemployment ratio can be eliminated and British economy can be enhanced. There are 78,500
trained regular personnel and 27000 trained reserve personnel in army. Along with this UK has
32, 880 Royal Air Force (Homberg and Weiherl, 2019). They are contributing in the
enhancement of the British Economy because they are offering large employment opportunity
and security to the people.
Some on the restrictions imposed by UK governing bodies are explained as under:
 Public sector can not make exit payment exceeding the exit payment cap.
 If more than two companies of public sector exist in respect of the same individual in the
time duration of 28 consecutive days then the total amount of exit payment made that
person should not exceed the exit payment cap.
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SECTION 5
History of Privatisation in British economy as well as its role.
Privatisation created from the year 1 April 1994. It involves passing ownership and
operation of the railway to distinguish private firm. But from 1989 to 1990 organization
privatized by Thatcher government fattened the government gained £2 billion. It is good for the
economy because it describes the process through which a piece of property owned by
government being privately owned (Johnson and Szamosi, 2018). Legislative changes is
impacting the National Health Services in positive way. National Health Service will be focusing
more on providing high quality medical facility to the patent so that best treatment can be
provided to them.
CONCLUSION
From the above discussion it can be concluded that mixed economy plays a vital role in
raising the national economy. Deep explantation of sole traders, partnerships, Private limited
companies and Public limited companies is done so that better understanding regarding each
concept can be done easily. Ansoff matrix is measured appropriately so that business can gain
competitive advantages against competitors. Along with this contribution of public sector
organization to British economy is done so that enhancement can be done in the loop holes and
more productive outcomes can be attained in the set deadline. On the other hand influence of
privatisation on the British economy is examined so as to make necessary changes in it.
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REFERENCES
Books and Journals
Amado, G. and Amato, R., 2018. Organizational change theories and practices: A critical
review. In The transitional approach to change (pp. 29-85). Routledge.
Anderson-Gough, F., 2018. Making up accountants: The organizational and professional
socialization of trainee chartered accountants. Routledge.
Audenaert, M., George, B. and Decramer, A., 2019. How a demanding employment relationship
relates to affective commitment in public organizations: A multilevel analysis. Public
Administration. 97(1). pp.11-27.
Bourne, H., Jenkins, M. and Parry, E., 2019. Mapping espoused organizational values. Journal
of Business Ethics. 159(1). pp.133-148.
Coccia, M., 2018. Competition between basic and applied research in the organizational
behaviour of public research labs. Journal of Economics Library, 5(2), pp.118-133.
Derakhshan, R., Mancini, M. and Turner, J. R., 2019. Community’s evaluation of organizational
legitimacy: Formation and reconsideration. International Journal of Project
Management. 37(1). pp.73-86.
Homberg, F., Vogel, R. and Weiherl, J., 2019. Public service motivation and continuous
organizational change: Taking charge behaviour at police services. Public
administration, 97(1), pp.28-47.
Johnson, P. and Szamosi, L. T., 2018. HRM in changing organizational contexts. In Human
resource management (pp. 27-48). Routledge.
Wilson, F. M., 2018. Organizational behaviour and work: a critical introduction. Oxford
university press.
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