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Internal and External Factors
Key feature of Public Limited Company
Internal and External Factors
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The way that any organisation operates, is dependent on the type of business, size and the positioning of the company within their sector. These factors will dictate any impact of potential external forces and influences.
An organisation works within a framework provided by various elements of society. Elements that lie outside an organisation are called external environment. An organisation may create an environment internal that affects the various subsystems of the organisation.
An organisation needs to properly understand the environment for effective management.
Factors that control an organisations environment are classified into internal and external factors. General environment: political/legal, economic, socio-cultural, and technological.
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This individual in entitled to keep all profits, after tax has been paid. The sole trader is also liable for all loses.
A partnership is a business or firm that is owned and run by two or more partners.
As above, a private limited company is a small business, that is owned independently by shareholders and their shares do not trade on the stock exchange. Their main purpose is to make a profit.
A public limited company is usually a large, well known business that provides a service funded by taxes and owned by the government. A public limited company’s main purpose is to provide a good value service to the public that is affordable and falls in line with the government’s targets and annual budget requirements.
A charity is an organisation that provides a free service, funded by donations and fundraising, any money made, is put back into the charity.
Corporations have limited liability. Ownership liability is the extent to which the owners of a business are personally responsible for business debts.
A sole trader must register their business and register with HM Revenue and customs, as self-employed for tax purposes. The liability is completely unlimited and personal to the owner of the business – they are responsible for any debt the business may
Liability – There is no legal difference between your business and yourself. You are responsible for all debts and obligations of your business.
A sole trader is a one man business. There is just one manager. Although they are the sole manager and owner they can employ staff to work for them. They can employ as many as they want to work for them. A sole trader is self employed, this means they work for themselves, they employed themselves, they for nobody. Sole traders trade with others. They may trade expertise, an example of this would be a business consultant taking on a big job and needing an extra hand just for that job, so this person may employ a person with the expertise he/she needs. Because a sole trader is the sole owner he/she keeps all the profits, unless he/she has any employees. The owner of the business makes all the decisions, he/she will not have anyone telling them what to do. When one wants to set up a sole trader business it is relatively easy. There is little paper work involved bec...
Limited companies are owned by shareholders. These are people who own shares in the company. Shares are the parts into which the value of the company is divided. So if a business is valued at £100 million and there are 200 million shares, each share will be worth 50 pence.
Limited Liability Companies (LLC) is “a form of business organization with the liability-shield advantages of a corporation and the flexibility
Public limited companies have advantages that they can expand their organisations into different businesses and conglomerates. This protects the firm from dealing in one market. Ø The organisation can be on the stock exchange and this enables them to offer shares for sale publicly. Due to this PLC's can acquire ready capital for further development if they ar... ...
And there are some advantages of a public limited company such as there is limited liability for the shareholders which mean the maximum losses that will cause are the amount that the shareholders invested in that company it won’t cause more than that so for the investor the risk is limited. Other than that the public limited company’s potential capital that they can raised is large they can raise fund by selling shares or borrow from bank. Also public limited company is easier to obtain financing because most of the banks and financial institution would like to invest to the larger company just like PLC. PLC have high continuity although the helm of company step down the company can still operating normally because shareholder can transfer their shares to anyone. There are many advantages of PLC but it still have some disadvantages for instance :PLC must make public annual financial report of the company also if the company close the liquidator must be realize the all assets to distribute to all creditors and shareholders. So the owner of Tesco are those people who bought the shares of Tesco. Furthermore, every year Tesco will held the annual general shareholders meeting. Tesco will report the annual accounts, strategic report and directors' report etc. to the shareholders in the meeting. Therefore the shareholders of Tesco can have more information and data to grasp more about
A Sole Trader is a business that is owned by only 1 person. They are
There are two types of limited companies: Private and public. Shareholders own private limited companies. Members of the public cannot buy the shares and the shareholders cannot buy or sell their shares without agreement from the other shareholders. Family owned businesses or larger businesses such as Virgin would fit into this category. Public limited companies have shares on the stock market and can be bought and sold by any member of the public, this way the company can raise further capital and expand their resources. Tesco and British Telecom are such examples. Both these types of limited companies have limited liability, which means the owners of the business are only liable for the amount they invested in the business (unless the debt is so large that the business has to be sold to repay the debt).
... the organization and can directly affect its basic operations and performance. It includes elements such as suppliers, competitors, customers and labour market. And the general environment affects the organization indirectly. It includes elements such as legal and political environment, ecological environment, socio cultural environment.. etc.
The definition of a sole proprietorship is essentially a business that is run by one person and owned by that person as well. Specifically, a sole proprietorship is separated from the other business entities because of the specific the legal dynamics between the business and the owner of the business. Moreover, because of this factor, sole proprietorships are usually easy to both form, maintain as well as dissolve if need be. In a New York Times article, the authors expressed that small businesses are typically sole proprietorships and as such, this is why it was selected as the business entity (1). Furthermore, the aforementioned reasons allowed for a rather rapid decision on the basis that with this entity, there is an ability of the owner to run it how they see fit.
Analysis of the external environment is very important for the development strategy of the organization and a very complex process requiring a process tracking and assessment factors and also the establishment of links between those factors and the strengths and weaknesses as well as opportunities and threats. External environment has its complexity and uncertainty. It is obvious that without knowing the environment the organization can not exist. The organization studies the environment in order to secure a successful progress towards its goals.
Different organizations typically face change due to many forces surrounding their mission. These forces can be from either internal or external sources. The External forces usually occur outside of the organization and it could have a global effect. According to Kreitner-Kinichi (2003) the four external forces for change are demographic characteristics, technological advancements, market changes, and social and political pressures. The internal forces for change come from inside the organization like human problems, managerial behaviors and decisions.
The organisation depends upon its environment for the resources and opportunities necessary for its existence.
...ility to deal with people, costumers inside or outside of work. You have to be able to communicate with people and understand their needs. People skills are very important specially working in a hospital, airline companies, banks and other organizations.
All elements existing outside the boundary of organization that have the potential to affect the organization is called Organizational environment. There are three levels of