BUSINESS ENVIRONMENT

Business Environment

Business Environment

Introduction

The economy of any country depends on the performance of its business sector. If all the business sectors or even a larger number of them in any economy performs exceptionally well, it boosts the economic structure and stability of that country. Business sector is divided in to three categories, such as public sector organizations, private sector organizations, and the charitable (voluntary) organizations.

The public sector organizations are run by local and state government. Private sectors organization, by its name, means that it is run by private bodies and individuals. Private sector organizations are further divided in to several types, which will be discussed in the later part (Ghuman, 2010). Then, there are also some people who, for the goodwill of the society and community, run those voluntary groups.

This paper reflects about understanding different types of organizations that exists in the United Kingdom. Then, it will also highlight how these organizations work and what their structure is. Furthermore, it will also discuss about the key stake holders of the organizations, their role in the growth and development of an organization, and what impact they might have in the overall process of the organizations. Lastly, the paper will also draw attention towards the relationship these business organizations create and maintain with the local, national, and global environments.

Understanding of Different Organizations

The entire global market is having a similar structure in terms of key types of businesses. These include, as mentioned earlier as well, public sector, private sector, and voluntary sector organizations. The business structure of United Kingdom is also divided in to these types. These sectors help the country in improving its economy through several strategic planning, which includes rules, regulations, and policy manual designed by the state government, and then the strategies designed by the companies themselves complying with those set of guidelines of the government. These organizations are established in order to achieve certain purpose or motive set by the owners of the organization (Mukherjee, 2005). The purpose differs in all the three sectors of organization. These will be discussed in the coming parts of the paper.

Public Sector Organizations

Public sector organizations are owned and managed by the government of the country itself. These organizations are involved in the producing, selling, owning, and allocating products and services to the citizens of the country. The activities of these organizations range from providing health, security, and administration services to the citizens of the country. Public sector organizations apply taxes in the consumer and electronic goods. These taxes are utilized by the government to finance in their public services.

The aim of these public sector organizations is to provide better and efficient services to its citizens. Furthermore, they also intend to utilize all the available resources, which the country has, in such a manner that it provides more benefit to the community and society. Through this way, the public sector organizations can also achieve economies of scale.

UK public sector organizations are divided into state (or central) government level and local government ...