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Unit 1 Hnd Business

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Section 1
Many type of organization exist depending on their aim and purpose. Organizations need to meet the needs of their owners, the stakeholders, and the customers. Some are created to make profit, some are charity, and others are governmental created to serve society. 1. Public Sector, Government organizations exist to serve society, economic development of the country and defense e.g. NHS Healthcare system, the police force. Services are provided despite the individuals ability to pay for them. They are usually funded by the government through taxation. 2. Sole Trader usually has a business which meets the needs of the community. The organization is run by the individual to earn a profit. E.g. window cleaner, newsagent. Sole traders need to make sure the goods they sell or service they provide is available at all times. It is important that a sole trader has a good relationship with the customers and the suppliers. 3. Partnership –usually more than one owner. All have an equal share in the business and assets. All share the responsibility and accountability. Usually the workload is also shared. Partnership businesses also rely on good customer relationships and satisfaction. E.g. law firm with 2 or more partners or doctors. 4. Charitable organizations are set up to help those who are poor or out of work. They do not earn a profit. These organizations can provide a service or help provide goods. Usually are run by voluntary staff. 5. Companies & corporations e.g. apple, Samsung. Usually are owned by shareholders and Management run the company. Shareholders share in profits and losses generated through the operations (BusinessDictionary.com).

Describe the extent to which an organization meets the objectives of different stakeholders
Organizations need to identify and meet the needs of their stakeholders if they are to be successful.

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