Business Level 3 Unit 5 Understanding Business

Unit 5: Understanding Business

1.2.

There are three different types of business structures and each has its own responsibilities, they are private, public and third. Businesses that are in the private sector are a sole trader so the owner is responsible for all activities that are run within the business and has unlimited liability for debts, however as they are sole traders they are often able to set up a partnership and share skills but that also means sharing profits. Businesses in the public sector are governmental departments, this includes ministerial departments who implement government policices, non ministerial departments who are run by a board and are not linked to any political parties and finally agencies, these are non governmental agencies that provide servies to goverment organisations and receive funding from the government. The final business structure is the third sector and this includes charities and organisations that are non profit, trustees and members are responsible for any debts.

1.3

The vision would be what the future state of the organisation would be, so for Primark it would be to have worldwide recognition as a successful store and able to compete with other department stores such as Debenhams and John Lewis. The company would have to set up a mission of how the organisation works and what is currently being done, so in terms of social media advertising and increasing the number of stores, this also incorporates the stratergy or the long term plan of how the company will achieve the mission and the vison. Of course having objectives is the key to any company, realistic targets would be set which would implement the strategic plans, for example, at least meeting the target sales of a store for the previous year because it stands as proof of the stores progression and develeopment which is what the initial vision of the companies success ultimately