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Business Environment (Merit)

In: Business and Management

Submitted By gemma88
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Unit 1/ Task 1 - Understand the Organisational Purposes of Businesses
The author’s local business development office, a Government funded department has been authorised to produce a report which will promote the diversity of future businesses. As a result of a successful pilot project the council has requested that a project report be written which will detail the diverse types of business within the local area. In a bid to assist future business owners and leaders to gain understanding of varying business environments the author within task 1 will now go on to; identify the purposes of different types of businesses, describe how an organisation meets the objectives of different stakeholders and explain the responsibilities of an organisation and strategies employed to meet them.
‘’ In our lives we come into contact with a great assortment of organisations with many form types and usually with very different objectives.’’ (Business Essentials, 2007, p. 3)

In order to understand the importance of diversity within a business it is important to first identify the varying purposes of different organisations. The purpose of an organisation can differentiate hugely depending on why they were set up. Examples of this would be that Starbucks operate to make a profit, whilst Help for Heroes on the other hand does not as it is a voluntary organisation. There are many different types of organisations serving different purposes to meet a variety of needs. There are three predominant classifications of industry in which organisations operate dependent on its purpose. These are the primary, secondary and tertiary sectors. The primary sector involves making direct use of natural resources and obtaining raw materials. In contrast the secondary sector produces manufactures goods. This is the process by which everything is put together. The tertiary sector of the economy is…...

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