Ahmad Amin Tahir's Business Environment Report: Analysis of Structures

This report, prepared by Ahmad Amin Tahir, provides a comprehensive overview of different business structures and their environments. It begins by differentiating between profit-making and non-profit organizations, outlining their respective advantages and disadvantages. The report then delves into the specifics of public limited companies (state-owned enterprises) and private limited companies, highlighting their key characteristics, benefits, and drawbacks. Furthermore, the report explores the core purposes of an organization, focusing on the importance of vision, mission, and values statements. It provides examples of vision and mission statements from successful businesses like Disney, IKEA, Adidas, and Amazon. The report concludes by emphasizing the significance of values in guiding organizational behavior and decision-making. The report is a valuable resource for understanding the diverse landscape of business structures and their operational dynamics.

BUSINESS
ENVIRONMENT
TASK 1
AHMAD AMIN TAHIR

PROFITABLE ORGANIZATION
A profit-making organization is a company in business to make money for
its owners or shareholder.
ADVANTAGES OF PROFIT ORGANIZATIONS
Ability to generate income from a wide array of business activities
Assets are highly liquid
Revenue generated above and beyond expenses is for the owner
DISADVANTAGES OF PROFIT ORGANIZATIONS
Taxes must be paid on its profits
Financial liability
Obligation to investors and creditors
1. NON-PROFITABLE ORGANIZATION
Nonprofit organizations are organized for a public or mutual benefit other
than generating profit for owners or investors (Salamon 1999).
ADVANTAGES OF NON-PROFIT ORGANIZATIONS
Nonprofits organizations are generally perceived by the public in a
more positive light
Opportunities to get grant funding and lower costs on things
Nonprofits organizations usually have significant tax advantages over
for profit-making businesses
DISADVANTAGES OF NON-PROFIT ORGANIZATIONS
They rely heavily on fundraising and private donations to provide
services and resource
Open to public inspection and scrutiny
Loss of tax status

PUBLIC LIMITED COMPANY
Public corporations are also referred to as state-owned enterprises and
nationalized industries. Such corporations are owned by the government,
as the business must register securities in the stock market before selling to
the public
ADVANTAGES OF PUBLIC ORGANIZATIONS
1. Public interests are protected
2. Easier planning and coordination
3. Quicker decisions
DISADVANTAGES OF PUBLIC ORGANIZATIONS
1. Difficult to manage
2. Expensive to maintain and operate
3. Consumer interests is ignored
4.
2. PRIVATE LIMITED COMPANY
A private organization is any partnership, corporation, person, or agency
that is not operated by a profit or a public body. It includes all businesses
that are for-profit that are not government owned or operated.
ADVANTAGES OF PRIVATE ORGANIZATIONS
1. Limited liability
2. Separate legal entity
3. No minimum capital

DISADVANTAGES OF PRIVATE ORGANIZATIONS
1. Transfer ability is restricted
2. Shares cannot be quoted in stock exchange
3. Limited number of shareholders
PURPOSE OF AN ORGANISATION
VISION:
A vision statement is the explanation of an association or an organization’s overall
yearnings of what it would like to accomplish or to turn into. Some examples of
the vision statements include:
 Disney: To make people happy
 IKEA: To create a better everyday life for the many people
 British Broadcasting Company (BBC): To be the most creative
organization in the world
 Avon: To be the company that best understands and satisfies the
product, service and self-fulfillment needs of women—globally
 Sony Corporation: To be a company that inspires and fulfills your
curiosity
MISSION:
A mission statement depicts what the association needs to do presently to
accomplish the vision. It characterizes how the association will be unique in
relation to different associations in its industry. Some example of mission
statement from successful businesses include:
 Adidas: We strive to be the global leader in the sporting goods
industry with brands built on a passion for sports and a sporting
lifestyle.

 Amazon: We seek to be Earth’s most customer-centric company for
four primary customer sets: consumers, sellers, enterprises, and
content creators.
 Google: To organize the world’s information and make it universally
accessible and useful
 Honest Tea: To create and promote great-tasting, truly healthy,
organic beverages
 Jet Blue Airways: To provide superior service in every aspect of our
customer’s air travel experience
 The New York Times: To enhance society by creating, collecting and
distributing high-quality news and information
VALUES:
Value statement characterizes what the organization puts stock in and how
individuals in the organization are relied upon to act with one another, with
clients and providers, and with different partners. It gives an ethical heading to
the association that guides dynamic and builds up a norm for evaluating
activities. It additionally gives a norm to workers to pass judgment on
infringement.

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