Identify the purposes of different types of

orgnisation
Classification:

Public : Companies and corporations that are government run are part of what is known as the public
sector, The part of national economy providing basic goods or services that are either not, or cannot be,
provided by the private sector. It consists of national and local governments, their agencies, and their
chartered bodies.

The public sector is one of the largest sectors of any economy; in the US, for example, it accounts for
about 20 percent of the entire economy

Private: The private sector is the part of the economy that is not state controlled, and is run by
individuals and companies for profit ,The part of national economy made up of private enterprises. It
includes the personal sector (households) and corporate sector (companies), and is responsible for
allocating most of the resources within an economy.

Voluntary: That part of not-for-profit segment of an economy from which quasi-public

institutions such as hospitals are excluded.

Types of orgnization

Sole trader a person who is the exclusive owner of a business, entitled to keep all profits after tax has
been paid but liable for all losses.

Examples of sole trader businesses include small retailers, plumbers, builders, internet entrepreneurs,
beauticians, market traders, grocers and butchers. A large number of people setting up a new business
for the first time will create a sole trader business.

corporation is one of many ways to formally organize a business. Structuring a business as a

corporation has a number of important legal requirements and consequences that impact
investors.

A corporation is owned by shareholders, and their ownership is represented by shares of stock.

Partnership is a business structure in which the owners (partners) share with each other the
profits and losses
for example, does not incur taxes on its profits before the profits are distributed to the partners.
Each partner in the partnership pays taxes on the distributions based on their individual tax rate.
At the same time, with the liability shield of a corporation, partners may be exposed to a greater
degree of personal liability in a partnership.

Public Charities:

UNICEF

The United Nations International Children's Emergency Fund (UNICEF) was created by the
United Nations in 1946 to provide food, clothing, and healthcare to the children of post-World
War II Europe. In 1953, UNICEF became a permanent part of the United Nations. While its
name was shortened to United Nations Children Fund at that time, it is still is referred to as
UNICEF.

Purposeful to advocate for the protection of children's rights, to help meet their basic needs, and
to expand their opportunities to reach their full potential and to Protection of children from
violence, exploitation and abusive situations. Issues of concern including child labor, child
marriage, child recruitment into military, child trafficking, female genital mutilation, landmines,
and sexual violence End preventable deaths and developmental problems of children through
healthcare, nutrition, water, and sanitation programs

For example : Deliver food and clothing to the contemporary societies, such as the Syrian Arab
Republic .

Classification it : non profiit orgnization and Tertiary Sector

Private :

Huawei
Is a Chinese company engaged in communications and is making Phone devices and modem ,
works in the manufacture and export of mobile communication systems of many countries .

Purposeful company to sell their products all over the world and earn money .

classification it : Is profit company and primary sector

 Sameh mall
Is a branch sell goods groups such as food and meat and materials Cleaning Units established in
2005 .

Mission : Providing fun seize opportunities for our customers by offering many offers value, as
well as attracting a broad spectrum of customers of different income levels and their whereabouts
to benefit from the competitive advantages and broad our reach across the Hashemite Kingdom
of Jordan .

Purposeful for the sale of goods to all parts of the Kingdom and earn money .

Classification it : profit orgnization and secondary Sector .

voluntary :

INZAJ
Injaz Amman program is part of the "Junior Achievement" program of global non-profit
organization which was founded in 1919, it operates in more than 123 countries around the world,
and was attended by more than 100 million young people. It was launched Injaz Amman
program in 2006.
The program relies on the support of the private sector for the different sectors of education,
whether in schools, universities and training centers, especially in the age group between (14-25)
year.and This program is a vital contribution to the development of skills of young people and
enable and enhance the creative and leadership abilities, and prepare them for the optimal setup
to enter the market work with confidence, where the young man discovers with the completion of
latent talent has through a number of training sessions, run by a group of leading private sector
who provide summary of their experience and scientific and practical experiences and the secrets
of their success.

Purposeful to provide young people with a lot of courses in skills which is the main supporter for
the job competently and learning about marketing and market competition..

Classification it : non-profit orgnization and tertiary Sector .

Primary Sector : These are industries that produce goods using resources in the environment

For example :fishing before selling it, Industry products before export it

Secondary Sector :This sector is known as the secondary sector as they use the goods that
primary sector businesses have produced. They will take the raw materials from the primary
sector and turn them into finished goods. They can be summed up as businesses that refine,
manufacture or construct goods.

For example Carpenters will use wood from forestry businesses to make things out of wood e.g.
furniture, kitchen cabinets, ornaments Steel works will drill and cut steel to size ready for
construction

Tertiary Sector : The tertiary sector provides services for consumers or businesses

For example :
Hotels,
Call Centres,
Communications (telephone, broadband etc)
Medicine
Legal Services
Education .

1.2 describe the extend to which an organization meets the objectives of

different stakeholders

nestle

Is a large company worldwide specializing in the production of canned foods .

Shareholders: Strong relationship with the shareholders is very important.

They have high interest in the financial success of the company.

Shareholders must be enquired before making big decisions such as changing a board
member and authorising new strategies.

Shareholders the right to vote according to the type and number of shares they hold.
 Nestle has allocated part of its Web site, or other means of communication, to clarify the rights
of shareholders and how to participate and vote at the meetings of the general assembly of
shareholders.

Employee: employees is the important element in the company's because without them there is
no work must be preserved them through the provision incentive

of the enterprise to pay dividends. Employees and their representative groups are interested in
information about the stability and profitability of their employers. They are also interested in
information which enables them to assess the ability of the enterprise to provide remuneration,
retirement benefits and employment opportunities.

At nestle taking care of business starts with taking care of our people. We offer a comprehensive
program that allows you to tailor your benefits to meet the health wellness, educational and
financial needs of you and your family.

Work features:

Work 8 hours and extra incentives in case of increase of the working hours

Free transportation to the place of the factory

Meal integrated employee

Social insurance

Clinic inside the factory

Receiving special clothes to work

Sale to employees the lowest prices

Managers : Managers as any employees takes a salary but responsibility bigger than employees
and responsible of employees , activities of establishment

In addition, the Director is responsible for the care of the region .

Director is responsible for two tasks :

1 . Internal Environment ; It affects the manager and its interaction with responsibility

you must create conditions that enable him to do the job effectively and efficiently, and steadily,
both in the how or the quantity, must be planned Director subordinates and associates operations
within its environment, and selected carefully and train them, as they move forward and
regulates labor relations and directs their work and measures actual results Balmekdmat, and sees
the link between reasons and causes, according to which the power of administration and the like

2.external environment ; Proportion to the external environment, the king of manager is very
limited, it is a difference between being to be the manager's government or private organization
or public institution, and it appears, it must Director classification of administrative functions, so
that it could divide the activities between the external environment and internal environment, for
example, in relation to the economic institution in the external environment, the marketing and
production, loading, storage and the like, things that manager must perform, and different
functions of the project facility for another facility.

Director at Nestle tasks

The first: planning.

The second: regulation.

And third: configuration.

And fourth: Guidance

And fifth: censorship.

Suppliers and other trade creditors: nestle has many suppliers as the company has diversified
products for the customers. These suppliers want good payment systems, flexible terms of credit
and business agreement and the behaviour of the organization.

So, these are the major fields or extent that nestle has to consider to meet the objectives of the
stakeholders. Every stakeholder should be given priority regarding their position and expectation
from the organization.

Government: Government provides specific rules and guidelines regarding tax payment,
licensing, standardization and protection of consumer welfare that nestle has to abide by. So
here nestle has these responsibilities to meet the objectives of the government.
Customer : customer is the most important stakeholder beacuse without customer would not be
exist business keep companies in business by purchaseing their products and subscribing to their
services

Nestle has a large appetite for their products because they providing the best products for the
lowest prices ...

At Nestle, aims is to create value that can

be sustained over the long term by offering

consumers a wide variety of tastier and healthier

food and beverage choices.

The way we market the products is equally

important. While we believe that consumer

communication such as advertising helps

consumers exercise an informed choice, we also

believe its practice must follow certain principles

to ensure we gain and maintain consumers trust

in our brands and our company.

Consumer communication is a two-way

matter. The increasing importance of internet and

digital media, such as social networks and mobile

communication, has changed forever the way we

engage with consumers and consumers engage

with us. In addition, consumers expectations

regarding our commitment to social issues, such

as fighting childhood obesity and reducing the

impact on the environment, are higher than ever.

In this context, Nestl must demonstrate a

responsible and careful management of our

consumer communication, both at brand and

corporate level. The Nestl Communication

Principles have been defined as the highest

standard on which all marketing and

communication to consumers must be based.

Local community : Nestl Waters is sensitive to the fact that we are often one of many water
users in a community and therefore work with the local community to sustain strong and open
relationships.

In the US, for example, a Community Framework, published in 2011, seeks to guide engagement
in every community where the company hopes to source spring water, and attain mutual
cooperation and benefit between Nestle and the people in those communities.

Nestl Waters also partners with Project WET (Water Education for Teachers), the worlds
leading water education organisation, on educating millions of children a year on good water
management. On World Water Day, Nestl Waters factories around the world invite children
and other members of the local community to take part in pedagogical activities on water
developed by Project WET. In 2010, 25 countries and over 15,000 children took part in these
events.

1.3 Explain the responsibilities of an organization and Strategies employed to meet them.

Nestle

Mission : Good Food, Good Life" is to provide consumers with the best tasting, most nutritious
choices in a wide range of food and beverage categories and eating occasions, from morning to
night.
Vasion : to be leading and competitive and nutrition health and wellness company delivering
improved

Stakeholder interest :

Conflict of intrest : a situation that has the potential to undermine the impartiality of a person
because of the possibility of a clash between the person's self-interest and professional interest or
public interest.

For example nestle for baby nurtrition : Consultations with partners and member states because
of the changes that have occurred in the market and we hope to prevent others appropriate
marketing of baby nutrition .

Power matrix of nestle company .

high growth & high relative market share is called a star

high growth but a relatively low market share is called a Question mark

Low growth and a high market share is called a cash cow

Low growth and a low relative market share is called a Dog.

The purposes of nestle

To achieve compatibility with international voluntary standards on environmental management
system.

To build mutual trust with consumers, government authorities and business partners.

To ensure continuous improvement of environmental performance nestles.

The important goals : expand nestle is pet care market by 10% the end of 4 years

2.increase shareholder returns by 25% by the end 5 years .

Strategic planning : expections and needs of consumer affect business strategy and operations

- strengthening their leadership in the global market is key element of their corporate strategy

- series of strategic business units based around geography and product.

]Legal issue

Nestle put some Terms and Conditions

Consumer : clearly and explicitly define consumer rights in line with UN principles and
international practices in this regard, and to consider the provider item or service contrary to the
provisions of law in the event violates any right of the consumer rights.

. provider's commitment to providing after-sales and spare parts for goods that require services
that nature, and bring the price of the defective goods to the consumer.

clarify cases where commercial advertising is misleading to the consumer

employee : Nestle is one of the best companies to deal with the staff in terms of securing all the
necessary

health insurance,

Equal employment opportunities and high salaries ect.

EQUAL EMPLOYMENT OPPORUNITIES : Nestle is committed to follow the rules set out
in the Employment Rights Act or promotions on the basis of a person of race, religion, sex,
origin people do not distinguish between employees

Nestle has the Committee on Equal Employment Opportunities

Healthy and safety : Nestle has all the necessary protection, such as a fire extinguisher and
drags and emergency clinics in the factories

Ethical

Global warming : Many uncertainties about climate change,

A consensus has emerged that the doubling of carbon dioxide in the atmosphere from pre-
industrial to

It is likely to lead to an increase of 2.5 degrees Celsius in the ground baseline

Mean surface temperature by the middle of next century. That would be warming

And have diverse effects on human activities, it is likely to be disastrous for many plants

And non-human animals. The author's claim is that the problems generated by the

The possibility of climate change is not purely scientific but also concern about how we should

We live and how humans should relate to each other and to the rest of nature. and this is

Ethics and policy problems.

Factories and industries to Nestle that lead to air pollution in special places, and far from
populated places.

Strive to avoid anthropocentric view point for example by ( explicitly considering the impact of
ethical decision on animals , plant and the ecosystem they frequently draw upon traditional
ethical theiorise and frame work developed to decipher right or wrong human conduct .

Environmental ethics consider biological entities and the nonbiological world ( for example the
atmosphere , land , and ocean ) fundamentally itredependent and involving complex system .
example include coral reefs and related fisheries that are being destroyed by warmer waters and
pollution .

2.1 Explain how economic systems attempt to allocate resources effectively.

Traditional economy : This kind of economy, which is still used until now, and some see it as
ancient tribes but is still used

For example: Are swapping process between two parties such as sheep contrast, takes the Fish.

Market economy: Free market system in which decisions regarding resource allocation,
production, and consumption, and price levels and competition, are made by the collective
actions of individuals or organizations seeking their own advantage. In all market economies,
however, freedom of the markets is limited and governments intervene occasionally to encourage
or dampen demand or to promote competition to thwart the emergence of monopolies.

For example : Competition by companies to obtain your business helps to create products that
consumers want to buy and this is one of the fundamentals of a market economy.

Command economy : An economy in which market mechanisms are replaced by a centralized

state authority which coordinates all economic activity through commands, directives and
regulations for the purpose of achieving broader socio-economic and political objectives. In a
command economy, most forms of output are publicly owned but the state exerts control over
production, distribution and prices. For example, Nazi Germany was considered to be a
command economy as was the Soviet Union under Stalin.

For example : The United States is a mix economy, and in the past has politically battled
centralized governments that have used a command economy instead of a capitalist or free
market one.

Mixed economy : An economic system in which both the private enterprise and a degree of state
monopoly (usually in public services, defense, infrastructure, and basic industries) coexist. All
modern economies are mixed where the means of production are shared between the private and
public sectors

For example : Education, though principally a public enterprise, is becoming more of a mixed
economy service with the advent of religious and charter schools.

2.2 how interest rates affect of organization

When interest rates rise, banks charge more for business loans. This means businesses must use
more of their earnings to pay interest on their loans. That decreases profits. Some business
owners may decide not to start new projects or expansions during periods of high interest rates.
This hampers the growth of the company. When interest remains low, businesses may borrow
more readily. Low-interest loans can fund business growth and increase profitability because
businesses can earn enough off of new ventures to pay for the loan interest and have money left
over for profits.
Fiscal policy: ) Imposed by the government(

Fiscal policy is changes in taxes and spending of the federal government for the purpose of
expanding or contracting the level of aggregate demand. In a recession, an expansionary fiscal
policy involves lowering taxes and increasing government spending. In expanding too hot, a
narrow financial policies require

higher taxes and reduced spending. According to Keynes, a recession requires deficit spending
while expanding overheating requires a budget surplus. Fiscal policy involves government
spending and revenue.

For example, when low demand in the economy, the government could step in and increase
spending to stimulate demand. Or it can be reduced to increase income tax for people as well as
organizations.

Monetary policy: (imposed by government and central bank)

The actions of a central bank, currency board or other regulatory committee to determine the
size and rate of growth of the money supply, thus affecting interest rates. Monetary policy is
maintained through actions such as raising interest rates, or to change the amount of money
banks need to hold in inventory (bank reserves).

about Tesco companies : Government makes different monetary and fiscal policies to control the
economy and the business organizations. These policies are taken by the government bodies
considering the economic positions that also have a god impact on the business activities of a
company that are shown below;

Changes in the interest rate: When government changes the interest rate through
the monetary policy then it has an impact on the business activities. If interest
rates rise then Tesco will face difficulties on financing as the cost of capital will
increase while the customers will reduce their consumption level that will reduce
the sales volume of Tesco. On the other hand, If Interest rate reduces then Tesco
will be able to get more financing at lower cost. This will help Tesco operate the
business activities.
Changes in the reserve requirements: if monetary policy changes the reserve
requirement then it will also have an impact on the overall business activities.
High reserve requirement will push the interest rate high that will influence the
 consumers to deposit more rather than consumption. So Tesco has to change the
business activities as its sales volume will reduce (Stoudmann, et al., 2010).
Changes in the exchange rates: If exchange rate changes then it will also affect the
activities of Tesco. If pound appreciates then the business sector of Tesco that is
operating in other countries will face problems while home country sales will
increase more value for Tesco.
Changes in the tax rate: If government changes the tax rate through the fiscal
policy then it will affect the business activities from different perspective (Edgar,
1992). If tax rate is reduced then Tesco will be benefited and company may
increase the quality of the products without considering the changes in the price.
Or Tesco can increase more expenses on the advertisement or other sector as
reduction in the tax rate has made the company more profitable.
Changes in the government spending: If government increase the government
spending in different sector than a business organization will face reduction in the
sales volume. On the other hand, reduction in the government spending will
increase the demand for the private sector so is it for Tesco PLC (Tescoplc,
2014).

Aggregate monetary damand : Is the total amount of goods and services in the economy and
called on the general price level, which in a certain period of time. It is represented by the
aggregate demand curve, which describes the relationship between the price levels and the
amount of production that companies are willing to offer. And there is usually an inverse
relationship between aggregate demand and the price level.

Aggregate monetary supply : Total of all goods and services (including exports and imports)
supplied at every price level, within a national economy during a given period

2.3

Competition : Rivalry in which every seller tries to get what other sellers are seeking at the
same time: sales, profit, and market share by offering the best practicable combination of price,
quality, and service. Where the market information flows freely, competition plays a regulatory
function in balancing demand and supply

.
 Tesco
In united kingdom supermarket and retail shops face a severe competition among them as there
are different super shops with equal capital and business policies. The major competitors are
Tesco, Sainsbury's, Asda and Morrison's that are dominating the super market. Though there are
different companies but Tesco is almost holding 35% of the market capital. But changes in the
policy of the competitors will change the activities of Tesco has an organization has to adjust its
policies with the existing market to cope with the competition So, when other organization
changes the policy to stay in the competitive position then Tesco has to change the business
policy. Tesco normally made competition policy considering the cost and product diversification.

Impact of regulatory mechanisms on the activities of Tesco Plc

UK government makes different regulatory policies that have a direct impact on the activities of Tesco
PLC and these impacts may be both positive and negative considering the type of the mechanism As
operating in the EU zone, Tesco PLC also has to follow some regulations made by the EU while operating
in EU countries. So, any changes in the regulations will affect the activities of Tesco PLC in different ways.
For Example; If government impose a standard quality that Tesco has to maintain, then to produce
within that guidelines the cost of Tesco may rise. SO, in this case Tesco PLC has to change the policy like
to increase the price or reduce the cost.

Mergers bring many benefits back to the economy which makes it possible for companies to be
more efficient and innovative. But some mergers that could harm competition by giving market
power the merged companies which may lead to higher prices and reduced choice or quality to
consumers. Under the Trade law the Commission a role to play in preventing anticompetitive
mergers proceed.

When you think of the proposed merger

The Committee must decide whether to compete in the market which lost at the two companies
are a great merge. We will give clearance to the proposed merger unless we are satisfied that the
merger is unlikely to have the effect of reducing competition to a large extent

In the market.

Antimerger

An American antitrust law passed in 1950 that closed a major loophole in the Clayton Act. While
the Clayton Act prohibited mergers that reduced competition, it allowed companies to buy
individual assets of competitors. Some companies did this to such an extent that it reduced
competition, which had the potential to effectively sideline the Clayton Act. The Celler-Kefauver
Act closed this loophole, giving the government the power to stop vertical mergers and asset
acquisitions regarded as reducing competition.

monopoly is a situation in which a single company or group owns all or nearly all of the market
for a given type of product or service. By definition, monopoly is characterized by an absence of
competition, which often results in high prices and inferior products because the product does
not exist in the market only in on company the company controlled on its price

a monopoly is a market containing a single firm. In such instances where a single firm holds
monopoly power, the company will typically be forced to divest its assets. Antimonopoly
regulation protects free markets from being dominated by a single entity.

Anti-monopoly law : Leads to lower prices and reduce the high profits And this is put under the
laws laid down by government must be applied by companies.

Consumer protection law : Statutes enacted to safeguard consumer rights by

(1) enforcing or enhancing product safety standards

(2) increasing the availability of consumer interest related information and/or (3) preventing use
of deceptive marketing techniques.

4.2

Political decisions can affect Nestle for the good and the bad, because if taxes increase,
therefore consumers decrease and sales of stock decrease. However if taxes decrease the
likelihood is that consumers will buy more.

The interest rates can affect Nestle (and KitKat) because if the interest rates were high then
Nestle would not want to borrow as much money for expansion. In addition, if consumers had
loans they would again have less disposable income to buy luxury items. If the minimum wage
were brought down, this would mean more money for Nestle but would also result in low sales
from the consumers and vicar versa. The government can also raise taxes, which would bring a
decrease in the sales of chocolate
 Social : when we talk about social thats means compare the age categories between
young people and elderly .. thats affect on nestle during requirements this like thing and
this like another thing .. for example kitkat chocolate if nestle manfucture one kind of
theses chocolate will affect them because most elderly eaten kitkat without light without
sugar and young people eaten normal kitkat ... sould on kitkat sastifaying all of sosities in
order to more profit

Economic : economic environment its not same for all countries .

For example, per capita income of UK and Jordan are not same. UK has higher per capita
income than Jordan . Product prices are higher in UK than Jordan .

per capita income is controlled of economy for example : people of Jordan takes low
salaries than people of UK thats affect of nestle where the people of UK can purchase
any product from where price if was more expensive or less expensive in Jordan can not
purchase more expensive product .

technological : developments in manufacturing and business processes. If the cost of machinery

risen due to an increase in cost of producing that machinery means production cocts of the new
KitKat will be high than before the increase. There could be new machinery enter the market that
allows production to be carried out more effective and efficient than before, which saves on
labour costs. Maintenance cost of machinery may increase because better-trained skilled
personnel are needed to maintain the machinery through advanced in technology. Employees may
need training for advancing IT within the business which make the job more reliant on skilled
computer operators rather than packers ect. It may be necessary to upgrade old machines to
improve the company efficiency in producing the new KitKat egg because of the shape of the
product moulds will be needed and better protective packaging. Advances of transport of
goods/cost/lorries because the shape of the KitKat will require greater care when transporting it to
the customers like Tesco

environment : the environment can produce anything contain matrials of agriculture

because weather always snowy . affect on nestle during productivity of country to
country

For example : most industries of nestle bases on agriculture on Russian cannot

Legal : The basic understanding of the political legal environment is when the
government implements laws and or regulations which effects the way a business
operates. Not only do corporations in the food and beverage industry have to follow
the political and legal aspects of their home country, they are required to follow
the political laws and regulations of other countries the corporation is doing business in.
Nestl operates and sells their products in over a hundred countries. In each and every
country they (Nestl) are operating in, they are being regulated for the specific countrys
laws and taxes, whether it is through their products or employment. By being equipped
 for the countries laws and regulations, Nestl and other corporations create a good
standing relationship with the countries government for the future of their
corporation. For example, Nestl operates in Saudi Arabia and United Arab Emirates
among others. In these two countries, Nestl faces the Islamic Law and has created the
Nestl Halal Committee to foresee the Halal products produced by Nestl Malaysia.
(Ahmadnawi & Nestl)

4.3

A policy is a procedure to monitor decisions and achieve outcomes. A policy is executed as a

procedure. Policies are assumed by the board of authority within the European Union on UK
business organization where procedures are established and assumed by senior administrative
officers. Policies can assistance in both particular and objective decision making (Andre Clark
Business Environment, 2009). Policies to assistance in particular decision making to support
senior management with decisions that consider the facts of making decision. In policies to
support in the objective decision making are effective. The effect of policies of European Union
to the UK organization in the following

The effects of policies are established to avoid harmful effect that seeks positive benefits in the
UK business organization. Business acquiring policies provide organizations to avoid negative
effects. Businesses have policies that implemented through acquiring process. The UK business
organization created an effect to increased ownership through policy. Policies effects the
environments that policies seek to impact on governments, humanities, large companies is to
making a policy change. Government is to make a policy decision to increase taxes of increasing
tax revenue. The policy making process includes a challenge to evaluate policy influence that
policy is unexpected penalties (Richard Welford, Andrew Gouldson, 2003).
refefrence

1. http://www.investopedia.com/terms/m/monetarypolicy.asp
2. http://www.businessdictionary.com/definition/stakeholder.html
3. https://prezi.com/x2elapu08pb1/nestle-strategic-plan/
4. http://www.emeraldinsight.com/doi/abs/10.1108/09600030410545436
5. http://examples.yourdictionary.com/supply-and-demand-examples.html
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decisions-come-life-iversity?static=true
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8. http://www.hasbro.com/en-us/brands/monopoly
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