Ajit Bassan BTEC Level 3 Unit 1: Exploring Businesses

Unit 1: Business Ownership (Coursework Unit)

Limited liability - Is when a company has a unique status in the eyes of the law, this is because these
companies have their own legal identity which means they can sue other companies for copying
ideas that they have patented for, they can also own assets with their rights. Part of having limited
liability is that people can own shares in the company and are essentially the owners of the
organisation, these people are most commonly known as shareholders.

The advantages of limited liability is that it lets businesses pass through taxation because it has its
own income and it has limitless ownership as it can as many people and it has the freedom of
management because it does not need the authority of the board of directors.

The disadvantages of limited liability is that it will have to build up capital it increases funds and the
business must have two owners or members at least. It also not as flexible as it cannot go public
which ultimately means it cannot make more money and it can be very difficult to manage.

Unlimited liability - Is when the owners are completely liable meaning that they have to pay all
business debts if the business cannot pay off its liabilities.

The advantages of unlimited liability is that generally only a small amount of capital needs to be
invested which reduces the initial setup cost and the wage bill will be low, because there are few or
no employees. Also it is easier for the owner to keep control because they have more of a hands on
approach meaning that they contribute to everyday activities and they can consult decisions without
having to ask for permission from anyone else.

The disadvantages of having unlimited liability is of course you are completely liable for all business
debts, this also sometimes means that the owner may need to sell some personal assets to pay off
the debts.
 Ajit Bassan BTEC Level 3 Unit 1: Exploring Businesses

Different types of ownership and its liability

- Sole Trader – Unlimited Liability

- Partnership – Unlimited Liability

- Public Limited – Limited

- Franchise – Limited

- Social enterprise - Limited

- Cooperative – Limited

Sole trader – A sole trader is a person who owns and controls their own business. These business
owners are mostly common in business ventures such as hairdressers, plumbers or photographers.
However, they are personally liable which means they will have to pay the firm's debts and they may
have to pay out of their own money. This is known as unlimited liability. The advantage of being a
sole trader is that you keep all the profits, it is easy to set up, it has a small capital investment and it
allows the owner to have the freedom of making decisions. The disadvantages of a sole trader
ownership are that you have full responsibility, you will have to work long hours and you again have
unlimited liability.

Partnership – A partnership is where two people set up a business with the intentions of sharing the
profits and liabilities of the business venture they have set up. However, some partners may have
limited liability. Some partnership business ventures include doctors, dentists and solicitors. The
advantage of a partnership is that there are two people to run the business, your business will be
easy to establish, more capital is available for the business and there will be tax savings. The
disadvantage of a partnership is that there is a likely risk of disagreements, both partners are equally
liable, if a partner leaves then it will become costly.

Limited – Limited business ownership is where a company has a special status in the eyes of the law.
Examples of limited companies include major ventures such as Google, Facebook and Apple. These
types of companies have their own legal identity which means they sue or own assets in their own
right. Ownerships of a limited company are in the form of shares where people can buy a part of the
company. People who own shares in a limited company are called shareholders. The advantage of a
limited company is that it has its own identity which will result in the company living on even if its
members retire, it has limited liability, taxation and tax advantages and ownership and control. The
disadvantages of a limited company are that it costs a lot of money to set up, it has complex
accounts, restricted capital raising and dilution of powers.
 Ajit Bassan BTEC Level 3 Unit 1: Exploring Businesses

Franchise – A franchise is a form of business ownership where a person can own and use an existing
business idea and also have the right to do so. Examples of franchises are KFC and McDonalds. The
advantage of a franchise is that the risk involved is very low because the business is already proven,
no prior experience is needed and you get support such as training and setting up the business. The
disadvantage of a franchise is that you will need a lot of money to buy it, there will be restrictions of
what you can and cannot do and all profits do not go to you but the franchisor.

Social enterprise – A social enterprise company is an organisation that applies commercial strategies
to maximise improvements in human and environmental well-being. This may include maximising
social impact alongside profits for external shareholders. Examples of social enterprises are ventures
such as the Eden project. The advantages for a social enterprise is engaging a legal charter that
allows company leadership to pursue producing net-positive externalities as an expense. The other
advantage is that it creates an access to a different type of operating capital. The disadvantage of a
social enterprise is that it is a huge risk to invest in a hybrid organisation.

Cooperative – A Cooperative is a firm owned, controlled and operated by a group of users for their
own benefit. Each member contributes equity capital, and shares in the control of the firm on the
basis of one member. Examples of a cooperative are Co Op and credit unions. The advantage of a
cooperative organisation is that it is controlled and owned by its members, it has a democratic
control and this type of organisation has a limited liability. The disadvantages of this ownership is
that it has a longer decision-making process, it requires all members to participate, it has extensive
record keeping criteria in this form of organisation and it has less incentive.

http://www.bbc.co.uk/schools/gcsebitesize/business/aims/partnershipsrev1.shtml

https://www.business.tas.gov.au/starting-a-business/choosing-a-business-structure-intro/
partnership-advantages-and-disadvantages

http://www.bbc.co.uk/education/guides/z4br87h/revision

https://www.thecompanywarehouse.co.uk/blog/advantages-and-disadvantages-of-a-limited-
company

http://www.bbc.co.uk/schools/gcsebitesize/business/aims/limitedcompaniesrev3.shtml

https://www.quora.com/Social-Enterprise-What-are-the-advantages-and-disadvantages-of-
establishing-a-Not-for-Profit-a-for-profit-as-a-hybrid-organization

https://www.google.co.uk/search?
safe=strict&rlz=1C1GCEA_enGB762GB762&q=what+is+social+enterprise+&oq=what+is+social+enter
prise+&gs_l=psy-ab.3..0i7i30k1l4.2655.6639.0.7974.9.9.0.0.0.0.283.703.7j0j1.8.0....0...1.1.64.psy-
ab..1.8.700...0j0i67k1j0i13k1.RQzvFohJnt8

http://www.shareyouressays.com/116965/4-main-advantages-and-disadvantages-of-cooperative-
organization

http://www.businessdictionary.com/definition/cooperative.html
 Ajit Bassan BTEC Level 3 Unit 1: Exploring Businesses

http://www.bbc.co.uk/schools/gcsebitesize/business/aims/partnershipsrev_print.shtml

Not-For-profit organisation: WaterAid.

Wateraid is a non-profit organisation that is a charity in helping to get water access to places where
there is no water. Their aims and objectives are to reach people in countries who are suffering from
water based diseases and replace the system with clean, disease free water. Another objective of
waterAid is to make sure that they have made access to clean water in every major part of the 35
countries they are currently in. Currently wateraid has teams in 35 countries across the world and
have reached 24.9 million people with clean water since 1981.

The reasons for their success is through their advertisement and the simplicity of their website. The
website makes it easy for people to donate quickly and effortlessly. Another reason for their success
is that waterAid have reached 1.9 million people with clean water and 3 million people with
sanitation between 2014-2015. Also WaterAid has been extremely successful Since 1981 because
they reached 24.9 million people with clean water and 24 million with decent toilets as well as
significant levels of hygiene.

The form of ownership of this non-profit organisation is not necessarily owned by anybody, but the
charity is controlled and its assets are held in trust by a board of trustees. Trustees are responsible in
law for ensuring that charities such as waterAid are well run to deliver their charitable purposes for
the public benefits as set out in their constitutions. Water aid is an organisation that is a limited
organisation, meaning that from a charity’s standpoint, limited liability exists between the individual
trustees or board of directors and the charity itself, and it shields the individual trustees or board
members from being personally liable for the debts and obligations of the charity. If the charity were
to incur some form of liability and debt, only the assets of the charity would be reachable by the
charity’s creditors.

Wateraid works in the tertiary sector providing services and they are an international organisation
that again operates around the world in 35 countries, an example of the countries they are working
in are Kenya, Rwanda and Uganda. The services that waterAid provide are to install water pumps in
the countries that they are operating in. Another service that they provide is the construction of
hand dug wells for local communities in small villages. This makes them a large organisation in terms
of the amount of people or employees they have working for them.

https://www.wateraid.org/uk/donate/donate-to-wateraid-today?id=UN0000,RA/TPP,OnlineRG,RA/
TPP/01A&gclid=EAIaIQobChMI9YuF-d2m1gIVg7vtCh2P3g2UEAAYASAAEgLPwPD_BwE&gclsrc=aw.ds

https://knowhownonprofit.org/basics/setting-up-a-charity/charitable-status/what-is-a-charity-ncvo

http://smallbusiness.chron.com/charities-limited-liability-59184.html
 Ajit Bassan BTEC Level 3 Unit 1: Exploring Businesses

Profit organisation: Samsung.

Samsung is a technology based company from South Korea who specialise in making consumer
products. They have many consumer products available for customers but their most profitable
consumer electronic in their galaxy smartphone line. Samsung’s aims and objectives, or Samsung
likes to call it, their vision, is a collection of goals that the company would like to achieve by 2020.
Their vision is to lead innovations in technology, products and solutions that inspire communities
around the world to join their aspiration for creating a better world full of richer digital experiences.
Another aim for Samsung is by 2020, they seek to achieve annual sales of $400 billion while placing
Samsung Electronics’ overall brand value among the global top 5. Three key strategic pillars that are
now part of our culture, business operation and management describe the governing initiatives to
this end: ‘Creativity’, ‘Partnership’ and ‘Great People’.

The reason for Samsung’s success is because of their continuous release of products to customers.
This might seem obvious from a business point of view, but Samsung operates in a market where
their products are continuously bought, especially in the Asian market. This has helped them to
release products at a rate where people will tend to buy the newest generation of products, such as
their newest smartphones. This has allowed them to generate $174 billion in revenue during 2016.
Another reason for their success was that Samsung was smart enough to realise from the beginning
that in order to be successful in the mobile market, it would need to match to the quality of their
main rivals, Apple. The company’s Galaxy S III, which is extremely thin and comes with a large
display, proves that it knows what it’s doing. Consumers can recognise the quality, and that’s why
Samsung sales are so stratospheric.

The form of ownership that Samsung operates under is a Public Limited Company which means that
Samsung are owned by various shareholders who have invested into the company. A limited
company has special status in the eyes of the law. These types of company are incorporated, which
means they have their own legal identity and can sue or own assets in their own right. The
ownership of a limited company is divided up into equal parts called shares. Whoever owns one or
more of these is called a shareholder. Owning shares can be good as you can benefit from the
company’s success in the form of making money. However, owning shares in a company may also be
a risk because if the business does not make any profit or do not sell enough units, then the
shareholders will not gain any money from the business. The benefit of Samsung being a limited
company is that they can sue other companies and own assets. They can sue other companies for
reasons such as coping hardware designs of their products which have been protected by the law in
the form of patents.
 Ajit Bassan BTEC Level 3 Unit 1: Exploring Businesses

Samsung operates in the secondary, tertiary and quaternary sector where they do the required
research and development needed to evolve ideas for their new products. This is more commonly
known as the quaternary sector. The second sector they operate in is the secondary sector where
they manufacture the products in factories. The third sector they operate in is the tertiary sector
where they see their products in certified retailers across the world. These three sectors work
seamlessly together to get a product to one stage to another in order for the final product to be
complete and for the company to make revenue. Two of these sectors are found around the world,
quaternary and tertiary. They need these to be operated around the world because Samsung is an
international company who have different markets around the world in order for their products to
be accepted. For example, they have a European market, an American market and their most
profitable market, the Asian market. These markets have different regulations and having the
research and retail markets around the world can help them to alter their products so they can be
able to advertise and sell them in those different markets around the world.

https://en.wikipedia.org/wiki/Samsung

Profit VS Nonprofit: Comparison.

Samsung and WaterAid are very different types of businesses in terms of what they want to achieve.
Samsung is a large international consumer electronic organisation that aims to sell their consumer
products to make revenue. With the money that they make, Samsung will further expand their
business across the world and also gain assets to boost the rate of production for their products. On
the other hand, WaterAid is a fairly large international organisation, however their aims are very
different than that of Samsung’s aims. Wateraid is a charity that aims to supply clean water to parts
where there is a shortage or no access to clean water. The charity is a non-profit organisation which
means that they do not make any money from offering these services. All their money is donated by
people across the country and around the world.

The two organisations are very different in terms of the different products and services they offer;
they each offer a product or service that benefits their customers. Samsung again offers a range of
products and services, from having a large range of consumer items such as phones and services
such as Samsung cloud. These products and services are responsible for helping Samsung to make
money. Water aid differ from Samsung in terms of the product they offer. Their service does not
 Ajit Bassan BTEC Level 3 Unit 1: Exploring Businesses

result them in gaining any profit out of it, unlike Samsung, but their services are there to help people
for the greater benefit.

When it comes to profit there is no argument that Samsung makes the most amount of revenue
than WaterAid. This is clearly because Samsung operates in more countries around the world than
WaterAid, who operate in 35 countries, but this is not the main reason. The main reason why they
gain a lot of profit is that their items are very popular and people are willing to buy the latest and
greatest they offer. Samsung has generated $174 billion in 2016, making them the second largest
consumer electronics company in the world. However, Water Aid does not make any profit, this is
because wateraid is again a charity that gets its money from donors and all that money goes towards
making projects to help people. But they have stated figures that tell us how much they have raised
and between 2009 – 2015 they have raised a total of $400 million.

Samsung has a huge advantage over WaterAid in terms of market share, this is because Samsung is
again a major international company that operates in a majority of countries. Samsung’s biggest
market share is in their smartphones, they sold more smartphones than any other device maker in
the first quarter, earning the company 26.1% market share worldwide. On the other hand, Water Aid
does not compete over dominance in market share. They are a charity that does not gain any profit
from the services they offer.

Samsung’s business rating, also known as BBB rating. BBB ratings represent the BBB's opinion of how
the business is likely to interact with its customers. The BBB rating is based on information BBB is
able to obtain about the business, including complaints received from the public. BBB seeks and uses
information directly from businesses and from public data sources. Samsung business rating has
determined that Samsung meets Standards of BBB Accreditation, which include a commitment to
make a good faith effort to resolve any consumer complaints. Water Aid’s business rating is far less
detailed than Samsung’s business rating criteria, or any large international business in that matter.
Water Aid’s business rating comes from reviews online from people who have contributed to the
organisations success. For example, a website called Charity Navigator, has a rating system out of
100 where people rate how good the charity is. Water Aid has ranked in 93.59 out of 100, which
means that the charity is doing well.

https://www.bbb.org/new-jersey/business-reviews/electronic-equipment-and-supplies-wholesale-
and-manufacturers/samsung-electronics-america-inc-in-ridgefield-pk-nj-1004901/bbb-accreditation

https://www.charitynavigator.org/index.cfm?bay=search.summary&orgid=12760
 Ajit Bassan BTEC Level 3 Unit 1: Exploring Businesses

Samsung stakeholders.

Suppliers are separate organisations that supply their partnered businesses with resources in order
to make their products. Samsung has supplier organisations that they closely work with to make new
technologies that Samsung cannot develop themselves. Samsung is looking for potential world-class
partners with innovative and distinctive technologies for collaboration & creating new business
opportunities. Together with suppliers, Samsung will work together towards a common goal: To be
the World's Best. Without the close partnership that Samsung has with its suppliers, they will not be
able to reach levels of research and development to make their products stand out from the rest of
the competition.

Local communities are really important to Samsung as they are also seen as stakeholders to the
company. Local communities can influence a business by petitioning against building or planning
permissions for new developments. Local communities rely hugely, in the case of Samsung, on fixing
issues in their local communities. For example, one of the major issues that people in local
communities were facing was ethical facility management. Samsung listened to these issues and has
resolved these by establishing collaboration councils in local production communities to improve on
chemical emissions and wastewater discharge. Also Samsung has stressed that local communities
are one of their most important stakeholder groups because they believe that these communities
are the future and have contributed to these communities by expanding the hope for Children
programs and increasing in corporate social contribution investment.

The government are stakeholders who are interested in how well the firm is doing financially in
order to raise and collect taxes from them. They can influence a firm by introducing new laws that
can affect operations such as the National Minimum Wage, or they can just raise Corporation Tax
which would eat into a firm's profits. Government stakeholders to Samsung are significantly
important as they can tell the business on what needs to be improved within the business. For
example, the government has ordered Samsung to strengthen workplace safety, Samsung has
responded to this by strengthening teams in charge of workplace safety management and also
strengthen process improvement and diagnosis.
 Ajit Bassan BTEC Level 3 Unit 1: Exploring Businesses

NGO’S are international government organisations and generally non-profit organisations

independent of specific governments that are active in humanitarian, educational, healthcare, public
policy, social, human rights, environmental, and other areas to effect changes according to their
objectives. They are thus a subgroup of all organizations founded by citizens, which include clubs
and other associations that provide services, benefits, and premises only to members. For Samsung,
NGOs are significant in keeping the company fair for the people working for them and also for the
environment. For example, the NGO has stated some issues that they feel that Samsung should
improve on. The first issue was the overuse of minerals, Samsung responded by having the
disclosure of ore extraction sites and also they analyse suppliers mineral use. The other issue that
they faced was one of the most important issues and this was supplier labour rights. This was a ban
of employing underage workers and in case of an incident where one of Samsung’s factories does
have underage workers, there are routine monitoring for compliance. The final issue they
complained was for Samsung to meet the environmental policy where they responded by
establishing a biodiversity policy and also the appraisal of water resource-related risks and
mitigation system adoption.

Employees are people who work for the business and are involved in everyday business activity.
These are people who help the business to run and each employee has a specific role. For example,
in the case of Samsung, they have a range of employees such as software engineers and product
designers to marketing people. All these, and more, help the business to operate in the way it does
today. Samsung employs thousands of people a year, this is because Samsung is a global
organisation where they have different headquarters in different countries and therefore having a
large number of employees ensures that their business is operating successfully.

Customers are business stakeholders who buy a company’s products or use their services.
Customers are seen as the most important stakeholders of a company and it is the same case for
Samsung. Without customers a business cannot make any money because they depend on
customers to buy their products and with that they will also gain income from them. Also customers
are not only there to buy products from the business, they give feedback to the business because it
helps businesses such as Samsung to improve on their products and services. Businesses have both
internal and external customers. Everyone can relate to being an external customer whether
enquiring about or purchasing a product or service. You are also a customer you receive a service for
which no money changes hands. An external customer is seen as someone who brings revenue into
the business. Internal customers include anyone directly related to the business. They include
employees of a business whether they are physically present in that business. They include
employees of a business or are representatives of the organisation. These types of customers have
changed significantly over the last few years due to developments in technology that reduce the
need for travel.

Media stakeholders are stakeholder media who are not identical to ‘social media’, though ironically,
they are more influential in many cases. But the primary purpose of stakeholder media is to not have
 Ajit Bassan BTEC Level 3 Unit 1: Exploring Businesses

interactions with any other media network. Shareholder media drive solutions to perceived issues.
However in some cases stakeholder media has been shown to generate potent effects on firms. For
example in a consumer boycott a stakeholder media drove down a firm’s market cap by 30% after
news media declared victory for the firm. For samsung the media is important as they help with
spreading the news about their product releases. In some cases the news are a form of ‘free’
advertising for samsung and for other companies.

Shareholders/investors are people who buy shares in a company and therefore they own a part of
the company and essentially become the owners of the firm. If the company does well, the
shareholders can have benefits such as having a part of the company's profit. However this depends
on how many shares a person owns in the company. Shareholders/Investors are seen as important
but they do not do very much as all they care about is whether the business is successful or not.
Samsung has meetings with shareholders to discuss about the business’s success and they do this
every year.

Competitors is anyone who is in competition with a business is also referred to as stakeholders. in

order to operate a successful business, you will need to who your competitors are and what they are
offering. This enables a business owner to be better informed about the choices they can make and
whether a change of direction is required, or if an opportunity is arising due to a gap in the markart.
For example samsung's main competitor is Apple and the most competitive product they compete
against is the iPhone. The good reason for this competition is that samsung can see what the iphone
offers and they can come up with a stand out feature that can compete with it. This may put their
product above Apple's latest offering. Having competitors pushes businesses such as samsung to
come up with new ideas that would advance technology for years to come.

A debtor is any person or organisation which owes money to the business. Every business has
debtors, although this does not mean all business run without making a profit. a debtor is a
customer who has purchased a good or service and therefore owes the supplier payment in return.
Therefore, on a fundamental level, almost all companies and people will be debtors at one time or
another. Debtor does not only refer to a customer of goods and services, but also to someone who
has borrowed money from a bank or a lender. For samsung the debtor could be the bank as they
sometimes take money from the bank to start up different projects or build new infrastructure.

Creditors are those to whom money is owed, and this may be an individual or another business. If
you take the example of raw materials supplied to a business, the supplier becomes a creditor of the
business until they have paid for the materials. Samsung are also creditors as they wait for the
money to be paid to them before they hand over the products to the customer or the third party
seller that will sell their products.

http://www.samsung.com/us/aboutsamsung/investor_relations/corporate_governance/
corporatesocialresponsibility/downloads/Stakeholder.pdf
 Ajit Bassan BTEC Level 3 Unit 1: Exploring Businesses

WaterAid Stakeholders

Employees are people who are a part of the company and are part of the organisation’s everyday
business activities. Employees of a charity are seen as internal stakeholders and they all have
different roles within the charity. Employees of a charity are not necessarily hired, but some are
voluntary as anyone can help and join a charity organisation such as WaterAid. Different employees
do different things within the organisation to keep the business running. For example WaterAid has
employees that manage different projects around the world, also employees can have the necessary
influential leadership to deliver the organisations ambitious targets.

The local community are people from local areas all coming together to contribute to a specific
cause. Communities are not essentially local people but a community can be defined as an
organisation or business that has a concern within the community, also communities are seen as
external stakeholders to a charity such as WaterAid and they contribute in a way where they can
volunteer to help the charity and raise money for them. They do this by setting up events in the
community where people take part to raise money for the organisation. Also people in the local
community often go around houses to collect money and also hand out leaflets to help the
organisation raise even more money.

Donors are external stakeholders who are grant givers such as foundations that provide funding.
Every charity should have a source of income from a myriad of sources. Each source brings
stakeholders that must be kept interested and engaged. Theses donors contribute massively to
water aid as it is where they get their fundings from to carry out the various projects around the
world and are probably seen as the most important stakeholders of the organisation. Without
donors, wateraid would most likely not be the organisation it is today.

Beneficiaries are external stakeholders who are people who actually use the service and the goods
created, distributed, or allocated by the nonprofit organisation. Beneficiaries also bring a unique
perspective to any discussion about the success of a not-for-profit organisation because they can
talk with direct experience about what it is like to be on the receiving end of your services. For a
charity organisation such as wateraid they are really important because they can help to make
decisions for the benefit of the organisation. The organisation benefits from professional advice
from the beneficiaries as they can use their help to determine how the organisation could run in the
future.
 Ajit Bassan BTEC Level 3 Unit 1: Exploring Businesses

Regulators are external In a business, a regulator is a body, department or organisation that

supervises, monitors and controls an industry or business activity. An external regulator is a
regulator that is external to the organisation. WaterAid uses regulators to help keep the organisation
under control and in order. Without regulators the organisation will be out of control and there will
be no order within the business structure and business activity.

Lenders are stakeholders who lend money or possibly services to the business, such as start up
business loans. These loans are available through banks and other sources such as government
loans. Other loans might include a mortgage for the business premises for those owners who do not
want to rent premises.

The local authority is the county council responsible for services such as education, waste
management and strategic planning within a county, with several non-metropolitan district councils
responsible for services such as housing, waste collection and local planning. The local authority can
help a charity such as WaterAid by giving them a small fund from their community and also the local
authority can help promote the charity in their community, as well as using their experience to
further boost the charity.

Governments are stakeholders who make sure that an organisation makes a profit so they can tax
them. For charities, governments still do tax them but governments can also support charities for
their work. For wateraid governments can help support the charity by giving them access to do
things outside the country.

The Charity Commission for England and Wales is the non-ministerial government department that
regulates registered charities in England and Wales and maintains the Central Register of charities
The Charity Commission answers directly to the UK Parliament rather than Government ministers. It
is governed by a board, which is assisted by the chief executive and an executive team. Some
charities are not subject to regulation by or registration with the Charity Commission, because
they are already regulated by another body, and are known as exempt charities. Most exempt
charities are listed in Schedule 3 to the Charities Act 2011, but some charities are made exempt
by other acts. However exempt charities must still comply with charity law and may approach the
Charity Commission for advice. WaterAid are with the charity commision and they can see how
the organisation is doing. For example the charity commission can look at WaterAid’s income
and spending.

Trustee is a position of trust and so can refer to any person who holds property, authority, or a
position of trust or responsibility for the benefit of another. A trustee can also refer to a person
who is allowed to do certain tasks but not able to gain income. Although in the strictest sense of
the term a trustee is the holder of property on behalf of a beneficiaries the more expansive sense
encompasses persons who serve, for example, on the board of trustees of an institution that
operates for a charity, for the benefit of the general public, or a person in the local government. A
trust can be set up either to benefit particular persons, or for any charitable purpose (but not
generally for non-charitable purposes): typical examples are a will trust for the testator's children
and family, a pension trust (to confer benefits on employees and their families) and a charitable
trust. In all cases, the trustee may be a person or company, whether or not they are a
prospective beneficiary.
Managers are people who are responsible for controlling and administering an organisation or a
group of staff. Managers are typically used to manage a firm's retail sector. This is because the
organisation cannot keep control or manage all their retail stores at once, so they employ
managers to help them keep control and manage their stores. An organisation can have as many
managers as they need to help keep control of the organisation.
 Ajit Bassan BTEC Level 3 Unit 1: Exploring Businesses

https://knowhownonprofit.org/basics/setting-up-a-charity/getting-your-charity-started/
thinking_about_your_stakholders

https://www.thebalance.com/stakeholder-2502118

Organisation Structure: Samsung.

The organisation structure of samsung is highly organised into a hierarchical structure both vertically
and horizontally. This clearly shows the hierarchy order of the organisation and shows who is in
charge of who within the organisation. By observing the organisation structure, it shows some
significant characteristics about it, the first is that the members of the organisation are to be
detailed and disciplined. The second is that there was strong preference for formalisation within the
organisation, also along with this in terms of decision making, samsung emphasized high importance
in procedures and consensus. The management style of the organisation was highly bureaucratic
and the organisation exhibited strong exclusiveness within each department with strong reluctance
of outsourcing. Finally it shows high preferences for internal procurement and possessive perception
of its technology and capital. Samsung’s organisation structure type is described as a tall
organisation which means that; people are more specialises, there are more rules put in place, the
chain of command is often long and the business environment is stable. However with all the
benefits there are also drawbacks, these are mostly often the feeling that most people are
‘forgotten’ because of such a large structure and also the complaints of working in such a large
structure. These characteristics of the organisation structure displays a strong consistency in
describing the organisation structure of samsung. however the high level of formalization and
bureaucracy discourages individual members of the organisation from coming up with creative and
innovative ideas. the high level of differentiation and exclusivity within each department prevents
lateral communication and CoP within the organisation.

Samsung's organisation structure consists of the chairman who is the chief executive officer who is in
charge of the business and in charge of managing it. The current chairman of Samsung is Lee Kun -
Hee. Then the structure goes down to the vice chairman who essentially has the same role as the
head chairman and assists him in making decisions within the company. The Board and CSR
Committee are a group of people who discuss issues that the company is facing both ethically and
environmentally and try to resolve these to make the company look good in the eyes of consumers
and customers. At third in the structure it consists of Component department, Consumer electronics
 Ajit Bassan BTEC Level 3 Unit 1: Exploring Businesses

department and IT / Mobile department.These departments are key for research and development
of new technologies that the company plans to create, and so they can implement the into their
products. From these three departments located down in third place of samsung's organisation
structure, each of them have several specialised departments linked to them. In the component
department, it separates into five specialist groups. These are memory division, System LSI division,
LED Division, Solution division and Modem development. In the Consumer electronics department is
breaks down into four specialist departments, these are The visual display division, Home gadget
division, medical gadget division and printing solution development. Finally the IT / Mobile
department consists of wireless charging, imaging project, network division, media solution
development and the big data centre.

This type of organisation structure is very simple in terms of the way it is laid out, it is very easy to
follow and communication is less likely to get misinterpreted as the information does not go through
a complex structure. This structure also contributes to more than just managing the company but
also has objectives specifically achieved by having this organised structure. Organisations need
objectives to achieve many different things that will benefit the organisation as whole. The need for
these objectives is to identify what the business aims to achieve and to also give the business a
sense of direction to where they want to be in the future. Another objective is to provide focus to
everyone in the organisation and also to project decision making and strategy planning, also provide
motivation for employees as well as provide a means of measuring success. The most common
objectives are survival, profit maximisation, market share, market growth, corporate image and
quality improvement. These are the main things that companies focus on when setting up
organisation structures, to fully maximise the productivity within the organisation. Objectives in an
organisation can be either strategic or tactical. Strategic objectives are objectives that represent long
term objectives, however they are very risky because they demand high expectations and some
objectives can lead to failure and could even result to a loss for the company. They are mainly set by
the senior managers and board of directors and involves major capital investment, however once set
in place they are hard to get rid of if a decision is made to eliminate them because they are
expensive and hard to alter once implemented. Tactical objectives are objectives that represent
short term objectives and come with a low risk because they are not set by the senior managers or
board of directors but instead they are set by employees at the department level. They do not
involve large capital investments which means that they are very easy to set up and involves few
resources commitments. Tactical objectives are also far less expensive than strategic objectives
meaning that they are easy to change with far less financial implication. Samsung is a big
organisation therefore they will opt for strategic objectives, this is again because they are long term
and high achieving.

https://www.slideshare.net/ShadiAR/organisation-structure-and-objectives

https://myassignmenthelp.com/free-samples/organizational-structure
 Ajit Bassan BTEC Level 3 Unit 1: Exploring Businesses

Organisation Structure: WaterAid.

WaterAid’s structure consists of a president who is a representative or face of the organisation and
is interested in how well the organisation is doing. The current president of WaterAid is Prince
Charles who has plans to expand wateraid's projects by finding sustainable solutions to the water
crisis. The second in the structure are the vice presidents who are the people who work alongside
the president and who discusses plans and issues with the president of the organisation. The vice
president also reports back to the president about what is going on within the organisation, as well
as this the vice president becomes in charge when the president is not there in that moment in time.
The Chair and Trustees are a group of people who take part in the organisation’s day to day
activities, they help the organisation without getting paid and they also make key decisions for the
benefit of the organisation. The chief executive is someone who is charge of the wider range in the
organisation structure and in most cases is seen as the one who is mostly in charge of the
organisation. By looking at WaterAid's organisation structure, it shows that the chief executive is in
charge of many directors who are in charge of a group of people skilled in specific areas. The
directors include the Human Resources Director, Internal Operations Director, Communications and
Fundraising Director, Finance Director and Public Policy and Educations Director. All these directors
report to the chief executive who may also be seen as the CEO of the organisation. The directors are
in charge of a group of people who all report to them but the structure is in order of hierarchy so the
person below must report to the person above them and so on until it reaches the director.

This type of organisation structure is very similar to samsung in terms of the way it is laid out, it is
very easy to follow and communication is less likely to get misinterpreted as it goes up the hierarchy.
However whereas the samsung organisation structure is tall, WaterAid’s structure is known as a flat
organisation structure which means that it has a wide base. This ultimately means that it has fewer
less management and decentralized decision making. With this type of structure, employees are
encouraged to participate in decision making whereas tall structures, decision making is strictly given
to the authority of the senior manager and board of directors. One of the most important aspects of
this structure is that as there are fewer management going on, people can quickly identify and adapt
or respond to changes without having a major impact on the roles of other members within the
organisation, whereas in a tall structure it can lead to problems implementing changes. Also as there
are fewer management departments, employees can enjoy the luxury of having their own
 Ajit Bassan BTEC Level 3 Unit 1: Exploring Businesses

environments to work in. This may be important to a wide range of people because they might feel
that having their own space to work in may boost productivity and get things done compared to an
environment where there is not not so much personal space. However there are some major
drawbacks with this type of structure, for example decision making can be slow and frustrating and
can lead to confusion in responsibility and for making further decisions.

The objectives of WaterAid is essentially the same to the objectives of any organisations’ structure,
however some things are left out because they are a non profit organisation. For example objectives
such as profit maximisation, market share, market growth, are not important to wateraid because
they are not aiming to make profit. However gaining money is important to them so they can use the
money to help them carry on doing the work they do, for example expanding their projects to more
countries. But there are also some objectives that they aim to achieve such as survival, corporate
image and quality improvement. Survival is ultimately the most important objective to wateraid and
any other organisation because if they do not find a way to keep the organisation stable and
functioning, it could lead it to fall and no longer be able to operate. The only way that wateraid can
survive is by encouraging people to keep on donating and by convincing the board that their projects
will work and have an impact. Corporate image is also important to WaterAid because having an
identifiable image helps people to recognise you & what u do. By having a strong corporate image
this helps WaterAid get recognition they need to bring people together to join their organisation and
for people to donate to a brand that is well known for their contribution to charity work. Quality
improvement is a vital objective because an organisation can offer a service but not deliver on the
quality of the service. For waterAid quality is essential because they must ensure that their services
is of the utmost in terms of quality, if their services do not meet a high enough standard of quality
then they will be forced to improve in quality for the benefit of millions of people. The type of
objectives that an organisation such as wateraid will use is tactical objectives, these types of
objectives fit well in terms of the type of organisation structure they have which is flat structure. The
main things that tactical objectives have are that they represent short term objectives but they can
also be long term and they are also low risk, they are all set by employees at the department level
and involves fewer resource commitments. Finally they have the ability to change the objectives
without having such a large impact on financial implications.

https://www.slideshare.net/ShadiAR/organisation-structure-and-objectives

https://www.wateraid.org/uk/who-we-are/how-we-are-governed