Business environment

159 views 11 pages ~ 2842 words
Get a Custom Essay Writer Just For You!

Experts in this subject field are ready to write an original essay following your instructions to the dot!

Hire a Writer

An association, in general, refers to a community of people who have come together with shared objectives and intent to work on achieving those specific goals. Other theorists describe an organization as a social unit of individuals who are organized and governed by one person, typically the manager or president, in order to achieve specific mutual objectives. In relation to our topic of study, my primary interest and concern are corporate organizations. As a result, our concept of an entity in this situation should be from a corporate standpoint. In that case, a business organization will be described as a group of business persons or just people who have come together to execute and achieve certain commercial goals. In this case, they are formed for commercial purposes. This assignment aims at discussing the three types of business organizations under different dynamics and perspectives but via considering an individual organization at each type as discussed below.

Types of business organizations and their purpose

There are different types of business organizations, and they include public sector organizations, private sector organizations and lastly, voluntary sector organizations. Public sector organizations or business are owned by the federal government (the state). Most of them are established by taxpayer's money and are therefore mandated to serve the public or provide useful public services. They are aimed at utilizing the state's resources to benefit both the state and the citizens (Burnham, 2012, p.67). Private sector organizations are on the other hand owned privately, either by a single individual or a group of people. They include sole traders, partnerships, and franchises. Private sector business organization normally have a purpose of making profits, increasing the organizations market share, expanding the growth and diversifying its business activities, and maximizing the sales for maximum revenues. Funds to start these private organizations are obtained from personal savings, government grants, bank loans among many other sources. Lastly, voluntary business organizations are not in the ownership of anyone. However, there is always someone to ensure and monitor effective management especially in budgets, set goals and above all execution of tasks. These types of organizations are there to provide help to particular categories of people. Most of the voluntary organizations are funded through grants, fundraisings, and donations from well-wishers or the state.

International Business environment

Looking at the global business environment, we can say that the international business environment has been growing drastically behind man's knowledge. In fact, the latter is an enormously an important aspect of the modern economy which aligns the growing technological advancements in the business environment. The international business environment is inclusive of the commercial or business transactions that are executed by different countries beyond their borders to achieve the goals of individual organizations or corporate owned organizations. This international business environment is looked upon on various facets such as import-export trade, licensing, foreign direct investments and management of international contracts as well. Apparently, business research conducted by Harrison in the past five years suggest that the international business environment has been growing much faster compared to domestic or local business environments. Under this international business environment facet, we can articulate that the key aspect is the multinational enterprise which involves a company or a business organization pursuing business globally (Hamilton, 2015, p.103).

Various factors have influenced the rapid growth in the international business environment. First of all, saturation of domestic and local markets which has been pushing entrepreneurs as well as larger and potential business organizations to look for new markets across borders and overseas. Opportunities in international and foreign markets have the international business environment flourishing. For that reasons, organizations have purposed to trade on these foreign markets to maximize their sales and profits as well. In addition, the growth has also been facilitated by competitive reasons in that multination organizations are entering and using the global business environment as a measure of their competitive strength. The increasing demands which are being influenced by the rapid population growth have also been a significant aspect towards the rise in international business environment. From this perspective of increased demands, consumers are purchasing goods in loads due to the prevailing favorable economic conditions. Reduction of barriers, diversification, consumer pressure and global competition have also been on the frontier of foresing the growth of the international business environment. Likewise, the various developments in communication means and strategies, and in technology have accounted for this growth as well (Harrison, 2013, p.123).

Discussion; Organization Selected

Public sector business organizations

As we all know, the public sector refers to the state-owned or operated facilities including businesses and organizations as well. Therefore, organizations that are under this specific sector exist to provide services both to the state and the citizens. Since their purpose is to serve the citizens, no revenues are expected in the long run. The state funds these organizations by use of tax payer's money. Under this evaluation, we will focus on BBC as a public sector organization.

BBC Business organization

From the above discussion, we can say that public corporations are generally under the management of the government. BBC (British Broadcasting Company) as an organization was founded in the year 1922 with the broadcasting act of the United Kingdom. Therefore, the organization is mandated by this particular act to serve the citizens of the United Kingdom. The organization started upon the closure of several amateur radios stations in London. With time, after several challenges, the company under the state management went nationwide. At this time, the organization was being managed by the Royal British Charter with Sir John Reith administering as the Director-General. Note that the Charter also defined the powers, objectives, and obligations of the company. The mains services offered by this particular organization from its establishment to date are news broadcasting; every category of news, weather news, sports news, health news among many more. This particular organization is large and has a diversified scope; it operates in the vast United Kingdom and covers a wide range (BBC News, 2017, n.p).

According to this company, their mission, vision, and values suggest their work and how they possibly promote their purposes. The mission of the organization is to enrich people's lives with educative and entertaining programs and services as well. Its vision, on the other hand, is to be the most creative organization in the world. Some of their values of BBC include; 1) Audiences are at the heart of everything the company does; 2) Trust is the foundation of the BBC: the company is independent, impartial and honest, and 3) creativity as a tradition for the organization.

BBC has several purposes all set by Royal Charter and Agreement. They include; 1) To offer learning support to all ages of people; 2) To reflect the United Kingdom’s culture and values to the rest of the world; 3) to provide unbiased news as well as information the helps people understand and involve with the outside world; 4) to support the creative economy across the United Kingdom by reflecting, representing as well as serving the diverse communities in the united kingdoms, and 5) to show unique creative skills and at the same time provide high quality and typical output and services.

BBC have quite a unique and an efficient organizational and legal structure. Looking at the organizational structure, at the top-most, we have the BBC Board which is led by a non-executive chairman. This particular board foresees that BBC achieves its mission as well as public purposes. The board is, in fact, accountable for all the activities BBC undertakes. Following is the Board Committee which is inclusive of non-executive directors, Audit and Risk Committee, a Nomination Committee, and Remuneration Committee. The executive committee comes after that and is made up of senior directors who oversee the day to day activities at BBC. Down the line, we have the regulatory body which is mandated by the charter to regulate the BBC as well as license it. The latter further regulates how BBC's commercial activities interact with the public. This also renders the legal structure of the organization. Lastly, we have the audit management which is responsible for examining, certifying and reports some BBC accounts as well as some subsidiaries. BBC stakeholders are the all-over the world with most of them being most the being British natives (Conolly, 2009, p.83).

Below is an organizational structure that shows the various functional structures of BBC and how they are related. The chart evaluates the orgnisation of the firm form the top-most division up to the bottom level where the employee is found. The interrelationship as per the chart is well elaborated by a top-down organizational structure.

Retrieved from: http://bbcservice.biz/bbcs-organizational-structure/

Private sector business organizations

These are organizations that are under the management of private enterprises and ownership. They are formed by either privatizing a public sector enterprise or created by an individual group or a single person. Mostly, private organizations are for-profit businesses that are not managed by the state.

McLaren Technology Group

This is a private company that was established in the early 1960s. Apparently, the organization is owned by Mumtalakat and Ojjeh and is based in Surrey, in the United Kingdom. McLaren Technology Group is a privately owned business enterprise that has been doing great in the international business environment. In fact, the company is renown for its most illustrious high-technology brands of products it offers to its customers. From its establishment in the early 1960s, the company has been so much involved in transforming the competitive world of formula one. The organization continues to impress where racing innovation is involved. It has shown its capability in racing expertise as well as its ability in the worldwide high-performance car business. Moreover, the company has diversified the McLaren Automotive industry and has been on the frontier of promoting a game-changing technology as well as innovative business associated with McLaren Applied Technologies. McLaren Technology Group operates globally and has a diversified scope as well.

The mission of this particular business organization is to become the employer of choice within the global automotive industry. Its vision is to ensure their customers are satisfied by offering them with breath-taking, the iconic and innovative technology associated with the automotive industry. McLaren Technology Group plans to achieve this particular vision through dedication and hard work, and by partnering and involving their world-class employees in every innovative idea. The goal of the company is to remain a winner in all its undertakings as it has always been.

McLaren Technology Group has several purposes it aims to achieve. First and foremost, the company seeks to expand its automotive technology considering to cope with the ever-increasing innovations being made in this particular field day and night. The company also purposes to monopolize the global automotive business environment in order to maximize its sales and revenues as well. As well, the company also aims at establishing a creative and skilled working staff to ensure efficiency and effectiveness in the execution of tasks.

The company has a simple organizational and legal structure since it is privately owned. At the top-most of the company sits the position of the chief executive officers who are responsible for ensuring that the company works towards its goals as well as mission. He or she is followed by the position of the Group Chief Financial officer and Director who is responsible who manages the company's transactions including the release of funds for approved projects. Thereafter, there is the position of the executive director who foresees the company operations are executed effectively. The group legal director, company secretary, and Director follows while the group communications director closes this hierarchy. The working staff is also associated as they are the most important assets for the course of the McLaren Technology Group. Note that the company engages a corporate business legal structure. The company services many stakeholders of which majority are car sporting clients. As we have seen, the company’s focus has been to transform the formula one sporting sector which supports the fact that stakeholders must be car racers.

Voluntary Sector Organizations

As earlier discussed, voluntary business organizations are not in the owned by anyone. However, someone may be a manager is always present to monitor effective management, especially in budgets, setting goals and above all execution of tasks. These types of organizations are there to provide help to particular categories of people. Most of the voluntary organizations are funded through grants, fundraisings, and donations from well-wishers or the state.

Oxfam Business Organization

Oxfam is a voluntary organization that operates globally. It was founded in 1942 in Oxford, Oxfordshire England. During its establishment, its main focus was to minimize and try as much as possible to eradicate global poverty. Upon its founding, the mission of this particular organization was to rally and persuade the British Government to allow food relief to help the starving citizens of Greece. Generally, the organizations provided relief services to hunger-stricken areas, flood-affected regions, and any other place whose natives have been affected by a natural disaster. The organization has several branches and NGO's it works from across the globe, and for that reason, it covers a wider scope. The goal of this particular organization is to minimize poverty by assisting people where there are shortages of basic needs; poverty and injustice are prone (Oxfam.org, 2017, n.p).

The purpose of Oxfam is to provide food to hunger-stricken regions to minimize famine across various parts of the world. In addition, the organization has been facilitating self-support programs, and trade which has created and opened opportunities for many people from poverty-stricken regions to secure jobs to fend for themselves. Well, the organization has before and still aims at promoting humanitarian works to assist people from regions affected by natural disasters. Also, the organization aims at sponsoring development works to uplift communities suffering from poverty from this state to a state where they are stable financially. Likewise, the organization campaigns and advocates for human rights, gender equality, a quality education, better livelihoods and fair trade.

Oxfam's organizational structure is inclusive of two major bodies who works for hand in hand to ensure the goals and aims of the firm are achieved. The two divisions are the Executive Board and the Board of supervisors. The Board of supervisors constitutes of chairs or presidents from the affiliate organizations. Some of their responsibilities include managing risks that the organization might incur in due process and prepare an annual accountability report of the organization. Legally, the organization adheres and answers to The Hague Statute governance (Netherlands). Stakeholders are needy people, mostly those affected by the occurrence of natural phenomena like earthquake and floods.

Conclusion

The above discussion evaluates three different types of organizations; public, private and voluntary. As detailed, Public organizations are state owned and are funded by the state as well. Private organizations are owned by an individual or a group of business entrepreneurs with a common goal. They are funded through loans from banks and grants as well. Voluntary organization are not owned by anyone and are funded through fundraisings as well as through grants.

Bibliography

BBC News. (2017). Home - BBC News. [online] Available at: http://www.bbc.com/news [Accessed 24 Nov. 2017].

Burnham, J. (2012). Public Management in the United Kingdom. Palgrave Macmillan. http://www.myilibrary.com?id=976551. Retrieved from: http://www.worldcat.org/title/public-management-in-the-united-kingdom/oclc/965724528

CONOLLY, L. W. (2009). Bernard Shaw and the BBC. Toronto, University of Toronto Press. Retrieved from: http://www.worldcat.org/title/bernard-shaw-and-the-bbc/oclc/227928855

Eccles, R.G., Ioannou, I. and Serafeim, G., 2014. The impact of corporate sustainability on organizational processes and performance. Management Science, 60(11), pp.2835-2857.

Fan, J.P., Wong, T.J. and Zhang, T., 2013. Institutions and organizational structure: The case of state-owned corporate pyramids. The Journal of Law, Economics, and Organization, 29(6), pp.1217-1252.

Great Britain, & Whittingdale, J. (2009). BBC commercial operations: fifth report of session 2008-09: report, together with formal minutes, oral and written evidence. London, Stationery Office. Retrieved from: http://www.worldcat.org/title/bbc-commercial-operations-fifth-report-of-session-2008-09-report-together-with-formal-minutes-oral-and-written-evidence/oclc/1000908442

GREAT BRITAIN. (2004). A public BBC: first report of Sesion 2004-05. London, Stationery Office. Retrieved from: http://www.worldcat.org/title/public-bbc-first-report-of-sesion-2004-05/oclc/1002486518

GREAT BRITAIN. (2006). Further issues for BBC Charter review: 2nd. report of Session 2005-06: Volume II: Evidence. [Place of publication not identified], Stationery Office. Retrieved from: http://www.worldcat.org/title/further-issues-for-bbc-charter-review-2nd-report-of-session-2005-06-volume-ii-evidence/oclc/656142213

Hamilton, L. (2015). The international business environment. Oxford University Press. Retrieved from: http://www.worldcat.org/title/international-business-environment/oclc/1001254867

Harrison, A. L. (2013). Business environment in a global context. Retrieved from: http://www.worldcat.org/title/business-environment-in-a-global-context/oclc/859181131

Lewandowski, M., & KożUch, B. (2017). Public sector entrepreneurship and the integration of innovative business models. Retrieved from: http://www.worldcat.org/title/public-sector-entrepreneurship-and-the-integration-of-innovative-business-models/oclc/1002921641

Mclaren.com. (2017). McLaren Technology Group. [online] Available at: http://www.mclaren.com/technologygroup/ [Accessed 24 Nov. 2017].

Myers, P., Hulks, S., & Wiggins, L. (2012). Organizational change: perspectives on theory and practice. Oxford, Oxford University Press. Retrieved from: http://www.worldcat.org/title/organizational-change-perspectives-on-theory-and-practice/oclc/751831991

Oxfam.org. (2017). Oxfam International | The power of people against poverty. [online] Available at: https://www.oxfam.org/ [Accessed 24 Nov. 2017].

Watkins, K. (2000). The Oxfam education report. Oxford, Oxfam. Retrieved from: http://www.worldcat.org/title/oxfam-education-report/oclc/247823977

November 09, 2022
Category:

Economics Business

Number of pages

11

Number of words

2842

Downloads:

52

Writer #

Rate:

4.6

Expertise Manager
Verified writer

JakeS has helped me with my economics assignment. I needed an urgent paper dealing with Brexit. JakeS has been awesome by offering an outline with ten sources that have been used. It helped me to avoid plagiarism and learn more about the subject.

Hire Writer

This sample could have been used by your fellow student... Get your own unique essay on any topic and submit it by the deadline.

Eliminate the stress of Research and Writing!

Hire one of our experts to create a completely original paper even in 3 hours!

Hire a Pro

Similar Categories