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Understanding the Organisational Purposes of Businesses

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Understanding the Organisational Purposes of Businesses
Course Name: Level 4 HNC Business

UNIT TITLE NO. AND TITLE: Unit 1 Business Environment

Assignment No. and title:
Assignment 1- Understanding the organisational purposes of businesses (DRAFT)

Date Submitted 21st May 2012

Understanding the organisational purposes of business
In this day and age all individuals will have some affiliation with a business organisation. Whether it be the company they work for, the retail store they purchase their groceries or the NHS dentist they attend individuals of society are all affiliated, controlled and in control of business organisation. Organisations may be established for a number of reasons and serve various purposes, their activities can be affected by a range of different individuals and groups. These may be individuals from within and organisation or groups operating externally. In order for them to operate effectively and legally they must take into account responsibilities they have and act accordingly. Organisation
An organisation can take shape in many forms it can be a single person or a group of people, they can be large scale national organisations like the BBC or Tesco to small local business like hairdressers or coffee shops. “"Organisation may be defined as a group of individuals, large of small, that is cooperating under the direction of executive leadership in accomplishment of certain common object."(Keith Davis 1997) The purpose of an organisation will depend upon the nature of its business. They can be formed for various reasons and serve numerous purposes, they can be large or small, local to international. Each organisation will serve their own purpose and will have their own aspirations and achievements. Organisations nationally can be generalised under one of four main categories, which are as follows; • Private sector
Public sector
• Charitable
• Voluntary
The private sector can be seen as organisations owned by individuals for individual interest. Under this category would



References: Davis K. 1997.Organisational Behaviour: a book of readings, Ed 5, McGraw-Hill Publishing Freeman R E. 1984.Strategic Management a Stakeholder Approach, Pitman Publishing

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