Beruflich Dokumente
Kultur Dokumente
Organisations
Note very carefully what you are required to know in this AC 1.1:
Categories of Organisations:legal structure; type e.g. private company,
public company, government, voluntary organisation, co-operative, charitable;
Sectors (primary, secondary and tertiary)
LESSON PLAN ONE
Week: 1
Subject: BUSINESS
Room:
ENVIRONMENT
Date:28/09/2015
Time: 10:00 am
Unit:1
Prior Learning:HNC L4
Btec Business Certificate
Lesson Aim: AC 1.1: Identify the purposes of different types of Organisations
Links to other units:
Learning
Cohort: SEPT-2015
Detail of objectives:
Assessment Strategies
(tick as applicable)
Question & Answer ---quiz
Revision Exercise
Individual Learning
Review.
Group/ Individual
Presentation
Assignment / homework
Tests / exercises
Jigsaw
All will
All will
Practical demonstration
Using video / TV
Radio / audio tapes
Data projector
Whiteboard
Computer / IT
PowerPoint
Debate
Flip chart
Timing
Outcome/
Teaching Methods
Student Activity
Method of
Assessme
Objective
Key Skills
Resources
nt
Discussion onUnderstanding
of how to
access
information and
knowledge
needs
To create an
active
environment
To ensure
understandin
g of last
lesson
AC
1.1Identify
the purposes
of different
types of
Organisation
s
Break
Group
activities/Group
discussions
10-10:05am
Icebreaker
10:0510:10am
Recap
10:1011:30am
11:3012noon
12noon12:35pm
12:35-13:25
Lecture/Discussi
ons on LO 1
13:25-13:40
Short Quiz
Whole class
Case study
Teaching/
white board
Question
for Tutor
from last
lesson
Q&A
White
board
Problem
solving
White
board
Listening
Lecture
notes on the
white board
Question
for Tutor
from this
lecture
Q&A
PPT
Slides
Listening
-PowerPoint
presentation
Break
Break
Break
Break
Break
Break
How
information
can be
gathered
PowerPoint
presentation
Questions
from
learners
Group
work
PPT
slides
Listening
Group
Activity
Group work
Group
feedbac
k
Flip
chart
Team
work
Open session
For
questions
On the two
AC 1.1
A business is any activity that provides goods or services to consumers for the purpose of
making a profit.
For example:When Steve Jobs and Steve Wozniak created Apple Computer in Jobs family
garage, they started a business.
The product was the Apple I, and the companys founders hoped to sell their computers to
customers for more than it cost to make and market them. If they were successful (which
they were), theyd make a profit.
Before we go on, lets make a couple of important distinctions concerning the terms in our
definitions.
First, whereas Apple produces and sells goods (Mac, iPhone, iPod, iPad),
many businesses provide services. Your bank is a service company, as is your
Internet provider. Hotels, airlines, law firms, movie theaters, and hospitals are
also service companies. Many companies provide both goods and services.
For example, your local car dealership sells goods (cars) and also provides
services (automobile repairs).
Second, some organizations are not set up to make profits. Many are
established to provide social or educational services. Such not-for profit (or
non-profit)-voluntaryorganizations include the St Giles Trust, Financial
Ombudsman Service, Water Aid UK, Higher Education Funding Council for
England(HEFCE), and many colleges and universities.
manner. Thus, most of the business principles introduced in this text also
apply to non-profits.
Business and Its Environment
Management
Managers are responsible for the work performance of other people. Management involves
planning for, organizing, staffing, directing, and controlling a companys resources so that it
can achieve its goals. Managers plan bysetting goals and developing strategies for
achieving them. They organizeactivities and resources to ensure that company goals are
met. They staff the organization with qualified employees and direct them to accomplish
organizational goals. Finally, managers design controls for assessing the success of plans
and decisions and take corrective action when needed.
Operations
All companies must convert resources (labor, materials, money, information, and so forth)
into goods or services. Some companies, such as Apple, convert resources
into tangible productsMacs, iPhones, iPods, iPads. Others, such as hospitals, convert
resources into intangible productshealth care. The person who designs and oversees the
transformation of resources into goods or services is called an operations manager. This
individual is also responsible for ensuring that products are of high quality.
Marketing
Marketing consists of everything that a company does to identify customers
needs and designs products to meet those needs. Marketers develop the
benefits and features of products, including price and quality. They also decide
on the best method of delivering products and the best means of promoting
them to attract and keep customers. They manage relationships with customers
Israel O. Oyedele: BTEC Unit 1 Business Environment. [2015] Page 6
and make them aware of the organizations desire and ability to satisfy their
needs.
Accounting
Managers need accurate, relevant, timely financial information, and accountants
provide it. Accountants measure, summarize, and communicate financial and
managerial information and advice other managers on financial matters. There
are two fields of accounting. Financial accountants prepare financial statements
to help users, both inside and outside the organization, assess the financial
strength of thecompany. Managerial accountants prepare information, such as reports on
the cost of materials used in the production process, for internal use only.
Finance
Finance involves planning for, obtaining, and managing a companys funds. Finance
managers address such questions as the following: How much money does the company
need? How and where will it get the necessary money? How and when will it pay the money
back? What should it do with its funds? What investments should be made in plant and
equipment? How much should be spent on research and development? How should excess
funds be invested? Good financial management is particularly important when a company is
first formed, because new business owners usually need to borrow money to get started.
Ref: - Danielle M. Testa, Apple, Inc.: An Analysis of the Firms Tumultuous History, in Conjunction
with the Abounding Future (Lehigh University), November 18, 2007.
Its the easiest and cheapest type of business to form: if youre using your own name as the
name of your business, you just need a license to get started, and once youre in business,
youre subject to few government regulations.
You make all important decisions, and youre generally responsible for all day-to-day
activities. In exchange for assuming all this responsibility,
Profits earned are taxed as personal income, so you dont have to pay any special
federal and state income taxes.
Sole Proprietorship and Unlimited Liability, -the principle of unlimited personal liability
means that if the company incurs a debt or suffers a catastrophe (say, getting sued for
causing an injury to someone), the owner is personally liable. As a sole proprietor, you put
your personal assets (your bank account, your car, maybe even your home) at risk for the
sake of your business. You can lessen your risk with insurance, yet your liability exposure
can still be substantial.
Sole Proprietorship and Unlimited Liability
http://www.census.gov/compendia/statab/cats/business_enterprise/sole_proprietorships
_partnerships_corporations.html (accessed January 27, 2012).
Partnership
A partnership (or general partnership) is a business owned jointly by two or more people.
Setting up a partnership is more complex than setting up a sole proprietorship, but its still
relatively easy and inexpensive. The cost varies according to size and complexity. Its
possible to form a simple partnership without the help of a lawyer or an accountant, though
its usually a good idea to get professional advice. Professionals can help you identify and
resolve issues that may later create disputes among partners.
Many people are understandably reluctant to enter into partnerships because of unlimited
liability. Individuals with substantial assets, for example, have a lot to lose if they get sued
for a partnership obligation (and when people sue, they tend to start with the richest
partner).
To overcome this defect of partnerships, the law permits a limited partnership, which has
two types of partners:
A limited liability partnership has a single general partner who runs the
business and is responsible for its liabilities, plus any number of limited partners
who have limited involvement in the business and whose losses are limited to
the amount of their investment.
Limited liability partners (LLPs), are relatively new innovation being allowed for under the
Limited Liability Partnership Act 2000
Advantages of Partnerships
The partnership has several advantages over the sole proprietorship.
First, it brings together a diverse group of talented individuals who share
responsibility for running the business.
Second, it makes financing easier: The business can draw on the financial resources
of a number of individuals. The partners not only contribute funds to the business but
can also use personal resources to secure bank loans.
Finally, continuity neednt be an issue because partners can agree legally to allow the
partnership to survive if one or more partners die.
Disadvantages of Partnerships
Israel O. Oyedele: BTEC Unit 1 Business Environment. [2015] Page 11
Limited Companies
In law, a company is a corporate association having a legal entity in its own right
(i.e. it is distinct from the people who own it, unlike in the case of a sole trader
or partnership).
This means that all property and other assets owned by the company belong to
the company and not to its members (owners).
In the same way, the personal assets of its members/owners (shareholders), do
not normally belong to the business.
In the event of insolvency, an individuals liability is limited to the amount of
money invested in the business; (including any amount remaining unpaid on the
shares for which they have subscribed.
Note:There is an exception where a companys owners have given a personal
guarantee to cover any loans they have obtained from a bank or other
institutions
In the UK, there are several types of limited companies.
Israel O. Oyedele: BTEC Unit 1 Business Environment. [2015] Page 12
The main types are public limited company (plc) and private company, which
carries the suffix, limited (Ltd).
The main difference between the two is that a plc has shares that are available
for the general public to buy and the company is quoted on the stock market.
In the private company, the shares are not openly available and may be owned
by the founders, family interest and/or the current management.
A company limited by guarantee is owned not by shareholders but by a number
of members, whose liability is limited to the amount of money/contribution in
the event of the company being wound up. Example:professional associations,
research and trade associations. Companies limited by guarantee are most
commonly found in the not-for-profit or the voluntary sector.
Companies are essentially business organisations consisting of two or more
individuals who have agreed to embark on a business venture and who have
decided to seek corporate statusrather than to form a partnership.
Such status could derive from an Act of Parliament or a Royal Charter, but is
almost always nowadays achieved through registration, the terms of which are
laid down in the various Companies Acts. Under the legislation enacted in 1985,
1989, 2006 and 2010
KEY/GROUP EXERCISE
Some of the questions that youd probably ask yourself in choosing the
appropriate legal form for your business include the following:
1 What are you willing to do to set up and operate your business?
2 How much control do you want?
3 Do you want to share profits with others?
4 Do you want to avoid special taxes on your business?
5 Do you have all the skills needed to run the business?
6 Should it be possible for the business to continue without you?
7 What are your financing needs?
8 How much liability exposure are you willing to accept?
No single form of ownershipsole proprietorship, partnership, or
corporationwill give you everything you want. Each has advantages and
disadvantages.
EXERCISE- Analysis
Review the eight questions that youd probably ask yourself in choosing the
appropriate legal form. Rate each of the questions using this scale: [1] not at all
important; [2] not very important; [3] somewhat important; [4] very important;
[5] extremely important. Select the two questions that are most important to
you and the two questions that are least important to you, and explain your
responses to these four questions.
e.g. the police, hairdressing, etc. and commercial services (to business), e.g.
business insurance, business post, etc.
However, this is not a very good classification because most business services
like banking and the post are as much used by individuals as by business.
Some businesses concentrate on just one type of activity while others will focus
on a range of activities.
Your local farmer is primarily concerned with primary activity, but he or she may
also do some manufacturing e.g. producing fresh ice cream, butter or yoghurt.
The farmer may also provide a delivery service for fresh products.
A company like Portakabin concentrates on the production and construction of
modular buildings. However, it also provides a range of important services for
customers such as helping them with planning applications, and the
maintenance of services in buildings.
The process of de-industrialisation refers to the declining importance of
manufacturing in a society like our own as service industry becomes more
important.
Charitable Organisations
The law says that charities are organisations that
Charitable purposes
The Charities Act 2011 sets out 13 descriptions of charitable purposes, which
include the prevention and relief of poverty, the advancement of education, the
advancement of religion, the advancement of health or saving of lives and
general charitable purposes.
Public benefit
There are two aspects to public benefit; namely the benefit aspect and the public aspect.
Benefit aspect
The benefit aspect means that organisations applying to register as charities
must be able to demonstrate that there work does indeed provide an identifiable
benefit. That benefit must be linked to the organisations purpose, be balanced
against any detriment or harm, and must not be political; as charities may not
have political purposes (this does not prevent charities from taking part in
Israel O. Oyedele: BTEC Unit 1 Business Environment. [2015] Page 15
whether the trustees will be personally liable for what the charity does
You need to choose the right structure for your charity, depending on whether you need it to
have a corporate structure and whether you want to have a wider membership.
QUESTIONS
THANK YOU