business environment 3 (1)
DESCRIPTION
In this report, the learner who has decided to start a new business which is basically a sole trader business has highlighted the purpose of organisation with comparison to other organisation. At the same time, the learner has also discussed about the responsibilities of the organisation and the strategies that are planned to meet them. The researcher also shed light on role of economic systems in allocating resources and the importance of various policies. Lastly, the le4arner highlighted the importance of international trade.TRANSCRIPT
ENVIRONMENTAL FORCES AND BUSINESS
Task 1
1.1 The purpose of the organisation in comparison to other types of organisations
The Organisation
The organisation in the current scenario is Ample Clothing Stores (ACS), UK. ACS wants to open a business account in Barclays. Before doing that, ACS needs to present to the bank manager certain information related to the purpose of ACS.ACS is major clothing retail chain of UK and specialise in good quality handcrafted clothes for the urban masses.
Its Purpose
The purpose of ACS is to provide good quality and urbane looking clothes to the people of UK and also to bring awareness to the issue of handcrafted goods in UK.ACS is striving towards making handcrafted clothes a daily thing for the masses and also popularising the handicraft industry, which is in very dire conditions.
Other Types of Organisations
ACS is a private limited company but there are other types of organisation based on type of operation and control.Based on control, there is public limited company which is owned, controlled and managed by government and invested by the taxes of the common people. Its sole purpose is welfare of the citizens by using the natural resources at the best possible fare (Sloman and Sutcliffe, 2001).
Other Types of Organisations (Contd.)
Based on type, there is sole proprietorship business which is owned, managed and controlled by a single entity who invests all the money in the business and is liable himself/herself for the profit or losses (Sloman and Sutcliffe, 2001).There is also partnership business formed by agreement between two or more persons or organisations. Profits and losses are shared among the partners.
ACS is a private limited company which is based in the type of control and investment comes from the shareholders of the business. The control of the business lies with the board of directors and this provides stability and accountability to the business.It also provides ample opportunity for future expansion and high efficiency with less government control.
Reference
• Sloman, J. and Sutcliffe, M. (2001). Economics for business. Harlow, England: Financial Times/Prentice Hall.