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  • July 27, 2017
  • David Marks
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Inese Jurika-Elezi Business Environment

TASK 1: Understanding organizational purposes of businesses

Marketing and innovation are the basic functions of a business enterprise. To understand a business it is essential to know about its purpose. The business operates with a purpose towards the society it functions in .The intention of business is to attain customers. A business keeps functioning only if it has customers. Customers keep business running. The business supplies the customers the resources that they need. (DRUCKER, Dr.Peter, 2009)

1.1Explaining the following types of organisations and their purposes:

Inese Jurika-Elezi Business EnvironmentCompany Description: Virgin is an internationally recognised leading group. Virgin was founded in the year 1970 by British national Sir Richard Branson. Now the Virgin Group has ventured successfully in various sectors such as travel, phones, financial services, leisure, music, holidays and health services. Virgin operates globally in more than 50 countries employing about 50,000 people.

According tomarket reports Virgingroup made global branded revenues of £15bn ($24bn) in 2012.  (Virgin Group Limited, 2014)

Purpose of Virgin

Profit makingand raising the capital through the issuance of shares.

Imposing restrictions and legal rules for the shareholders forbidding the shareholders cannot public trade

Expanding business operations and globalising the company

Company Description: McDonald’s operates globally as aleading foodservice retailer with more than 35,000 local restaurants and serves approximately 70 million people in more than 100 countries each day. It is one of the world’s largest fast food chains. Headquartered in the United States, the company was started in May, 1940 by Richard and Maurice McDonald; 8 years later the business was recognized as a hamburger stand employing the principles of production line. (MC DONALDS, 2010)

Purpose:

  • Growing its chain and increasing its worldwide presence by allowing local business to take its franchisee
  • Minimizing globalization cost
  • Entering local markets by adapting to the taste preferences of the locals.

Sainsbury PLC

Company description–This Company was founded in the year 1869. It is a conglomerate of more than 1000 convenience stores and supermarkets. It has also started online grocery chains. Now entered the property business in joint ventures with the Land Security Group and British Land Company. It has also entered the banking industry with the           Sainsbury’s bank.Purpose

Their business strategy is growth oriented and they desire to place themselves as the most trusted retailer brand.

Raising profits in the global markets and sharing its profit amongst the shareholders.

Gain competitive edge over the national and international retailing brands in the UK. (J Sainsbury plc, 2014)

Company Description: Launched by Anuran Bevan in the 1948, The NHS was created for the purpose of availing good healthcare to all, regardless of wealth, meeting the needs of everyone

Purpose

  • Providing comprehensive service available to all. NHS serves on the basis of clinical needs and does not consider paying capacity of its customers
  • The NHS works with the mission to gain excellence and professionalism
  • The NHS collaborates with other organisation and work with them in partnership in the interest of patients, local communities and the wider population
  • This organisation’s main purpose is to provide best health services to individuals and not an intention of just profit making, it is a government funded organisation (NHS)

A corner shop near where I live:

Organisation Description: ‘Daily Needs’ is a one stop store near my house that serves the everyday FMCG needs, established by a sole proprietor.

Purpose:

  • The proprietor being the sole owner works with the intention of making profits and lowering his risks in the business
  • Serving in a small locality the proprietor aims to make more profit by acquiring good will
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