LO1 - Explain the different types, size and scope of organizations.
Explain different types and purposes of organisations; public, private and voluntary sectors and legal structures
Public, which are Non-profit organizations.
Private, which are Profit organizations.
Voluntary, which are funded by donations and fundraising activities.
Public Sector
- Typical examples of organisations in this sector are, the Police, local councils and the NHS.
- The main objective is to provide a public service rather than to make a profit.
Private Sector
- Typical example of organisations in this sector are retail stores.
- The different types of businesses in this sector are, plc, ltd and sole trader.
Voluntary sector
- Typical examples of organisations in this sector are
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A larger National business – a bank.
3. International business - which sells products and/or services overseas.
4. A global business which operates across the globe, for example Ford Motor Company.
- SMEs typically have a small market share.
1. Generally small demand.
2. Generally managed by the owner of the business.
3. Independent entity.
- Large multi-national organizations:
1. Control and Manage a larger share of the market.
2. Generally a hierarchy structure with many lines of communication and chain of command, with a larger managerial structure.
- Generally the size of the market will determine the size of the companies.
Growth
- This is determined by the industry the business is in growing, for example:
If a company has a 10% share of the market, but the market starts to grow and the company stays the same size it will no longer have 10% of the market, it would be a smaller % because the market has got bigger.
If the company wants to maintain its 10% of the market it would need to grow also.
- The benefits of the economics of scale/size, the organizations grow and can become more specialized, more efficient, able to employ specialist personnel, which have advantages over small