P1: Examining various types and purposes of organisations and their legal structures
Private companies have private ownership and these organizations do not need to meet the requirements as public companies. In addition, private companies can issue stock and it may have the shareholders; however, their shares are not traded on public exchanges. The purpose of private companies is to maximise the growth and sales (Craig and Campbell 2012). A sole trader is operated by one person and owner is the responsible for the business. In tertiary sector, the sole trader is the most common form of business and government issues a trading license for this. In addition, the partnership is another type of private company and it has two or more than two owners. In partnership business, the owners must be between 2 and 20. In limited companies, they have separate legal entities. Public Limited Companies has the separate structure of personal finances and it must have two shareholders. The organisations must issues shares to the public at least to the value of £50,000 or equivalent to the Euros (Baron 2012).
Public companies issue their securities through Initial Public Offering (IPO) and they need to do the trade through the stock exchange. Public companies try to allow the market to make out the values to the firms and most of the public companies started their journey as private organisations. They meet the regulatory requirements in order to be public companies. The purpose of public companies is to sell the organisations' share to the common public through the stock exchange. Public companies enjoy limited liability and people try to invest capital in the public companies (Palmer and Hartley 2011). In addition, in the UK, public companies must have at least 7 members and the company does not have a limit for transferability of share. Public companies must have three directors and public companies in the UK must have £50,000 as minimum capital.
Voluntary organisations are not owned by any person, someone gets the responsibility to ensure the targets and budgets. These types of organisations operate through unpaid management. The purpose of voluntary organisations is to help the people and to survive in the market (Weatherly and Otter 2014). The organisations conduct fundraising events in order to reach the break-even point. Voluntary organisations like to do charity and they do have tax advantages. Voluntary companies have four segments; incorporated association, trust, charitable incorporate organisation and limited company.
P2: Examining the size and scope of various kinds of organisations.
Two UK based private companies are John Lewis Partnership and Transco.
John Lewis is a public limited company and it works in the retail sector. It has it headquarter in London and it currently has 50 stores. Current revenue of the organisation touches £3.7 billion and operating income touched £243 million in 2017. Current employees of the organisation are 51,000 (Johnlewis.com 2018). It provides branded clothes, accessories and shoes. It has bright scope to increase the sale for the organisation through being online. Objectives of John Lewis are to make strong customer base and sustain the pricing strategy. Stakeholders of the organisation are suppliers, consumers, government, employees and fashion clothing companies.
Transco was initially named as National Grid and it is also a public limited company. The organisation was founded in the year 1990. Revenue of the organisation was £15 million in the year 2017 and operating income of the organisation was £3.2 billion. Net income of the organisation was £7.7 million (Nationalgrid.com 2018). The organisation has 25,900 employees and it has it headquarter in Warwick. The scope of the organisation is that it can grab the market share of transmission of gas distribution through the pipeline. In a previous time, the organisation had single ownership of distribution of products.
Public companies in the UK are National Health Service and The Child Support Agency.
National Health Service in the UK was established in 1948 and it was under the jurisdiction of England. It has more than 1.4 million employees and it was publicly funded organisation. The objective of the organisation is to help the individuals in need and the parent organisation of NHS is Department of Health. Core principles of the organisation are structure, staffing and 2012 reforms (Nhs.uk 2017). The scope of the organisation is larger as it has to maintain the health service for the people in the UK and it has a chance to get privatised.
The Child Support Agency in the UK is the delivery part of Department of Work and Pension. This organisation works two different parts; the first one is about encompassing the calculation and child maintenance process. The organisation has a large scope as the method of maintenance of child calculation is not easy and they work this in a simplified way.
Voluntary companies in the UK are British Red Cross and Cancer Research in the UK.
British Red Cross was incorporated with the Royal Charter and the main focus of the organisation is to help the common people. The location of the organisation is in London and it has volunteers of 32,000 (Redcross.org.uk 2018). The organisation has employees of 3400. British Red Cross helps people in a difficult situation and they help sick people through fundraising events.
Cancer Research UK does the charity in order to aware the people regarding cancer. This organisation was established in the year 2002 and it mainly focuses on the cancer research and health policy. Currently, it has 40,000 volunteers and it has members of 3,965. Revenue of the organisation is £690 million. It has the scope in the market to do a fundraising campaign to help the cancer patients.
P3: Evaluating the connection between various organisational functions of Transco and the process of linking to organisational structures and objectives
Transco is in Gas industry and it distributes gas through the pipeline. The marketing department of the organisation tries to promote the business and drives sales. Transco has been doing solid promotion in order to increase the customer base in the UK. They have been doing branding and it launched £3.75 million advertisements nationwide using radio, television and press. Operations department in the Transco is responsible to run the business successfully and it tries to develop the employees as well as the customers. Operations department is important within an organisation to oversee other departments (Scheer 2012). The finance department of Transco manages money and the accounts. Planning, auditing and organising of money are the roles of Transco’s finance department within the organisation. Human resource department of the organisation Transco is another important as it has the employees of 25,066. These employees do various works in order to survive within the industry.
Transco organisation follows the Vertical organisational structure and it relies on the managers' command and employees' work (Drucker 2017). The business owners are the vertically top of the organisation. Transco follows the top-down management system and Transco do not provide enough importance to the employees who are at the lower-level. As stated by Worthington and Britton (2014), in a vertical structure, rules are set by the top level management and it provides a competitive advantage. Managers can change their approach to changing the rules.
Managers of the organisation Transco do planning in order to collaborate among the departmental functions in order to meet the organisational objectives. As stated by ( )Crane and Matten (2016), the hierarchical structure helps to get the direction from the organisation. Structure of the organisation helps to coordinate between employees and the managers.
P6: Examining the strengths and weaknesses that are interrelated with external factors in Transco
The political condition must be stable for oil and gas distribution as it is related to the long-term enforcing and leases. Shifting political air can cause an issue for Transco as it depends from in which country the oil is extracted. Quality of the organisation can be encouraged through the full-scale ecological components. Transco is the most grounded mark in the market as the top-notch estimating does not stop the brand to quicken (Baker and Saren 2016). The organisation has a wider supply network of the gas through the pipeline. This quality can guarantee the top of the line clients with worldwide promoting procedure. Transco does solid advertising and clients in bring down class can't manage the cost of the items that are offered to them. In any case, the High offering cost can stop the association to enter creating nations and back off financial zone (Anandarajan et al. 2015). In addition, geological risks are associated with the oil and gas distribution as it is associated with the drilling in the less friendly environment. Transco has employees' skills and they use it for extraction of gas from the reservoir. The organisation has been facing the threat of financial crisis from the price risk as the external environment of gas distribution is associated with the economically not feasible.
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