1.2 Reasons Organisations Exist:
There are many types of organisations that exist for different reasons:
1.2.1 Organisations making profits for their owners
Is a business or other organisation whose main intention is making money (a profit, that is, to take in more money than it spends). The owners can decide to keep all the profit themselves, or they can spend some or all of it on the business itself. Or, they may decide to share some of it with employees through the use of various types of compensation plans, e.g., employee profit sharing.
1.2.2 Not For Profit Organisations
A not for profit organisation is a type of organisation that does not earn profits for its owners. All of the money earned by or donated to a not for profit organisation is used in pursuing the organisation's objectives. Typically not for profit organisations are charities or other types of public service organisations. Generally, not for profit organisations can apply for a tax exempt status so that the organisation is not subject to most forms of taxation. Donations made to a tax exempt not for profit organisation may also be tax-deductible for the donor.
1.3 Types of business sectors
1.3.1 Private – consists of three parts: Personal sector, Corporate sector and financial sector.
Personal sector deals with decisions people make on how much to spend and
Corporate sector covers all types of privately owned businesses
Financial sector consists of financial organisations such as banks
1.3.2 Public – consists all activities carried out by central and local government. Government uses tax and insurance contributions to provide the services which the country requires
1.3.3 Voluntary – consists mainly of non-profit making organisations and charities
1.4 Types of business activity
1.5 Types of business ownership
1.4.1 SOLE TRADER
A one person business with unlimited liability
Has 2 or more owners who control and finance the business. They have unlimited liability
1.4.3 PRIVATE LIMITED COMPANY (ltd)
A Company owned by shareholders. Shares are owned by family and friends of the business. The business has limited liability
1.4.4 PUBLIC LIMITED COMPANY (plc)
A Company owned by shareholders. It must have £50,000 of capital when founded. The business has limited liability
1.4.5 UNLIMITED LIABILTY
A legal obligation on the owners of the business to pay all debts of the business. Even their personal possessions may be claimed.
1.4.6 LIMITED LIABILITY
Shareholders are only responsible for the company’s debts up to the value of their shareholding.
GSK is a science-led global healthcare company with a mission: they want to help people to do more, feel better, live longer.
The vaccines, medicines and consumer healthcare products that they research and develop can improve people’s health and well-being, ultimately helping them to live life to its fullest and contribute to the prosperity of their communities. They have over 99,000 employees across 115 countries and 12,000 people working across their R&D organisation They also are the first pharmaceutical company to sign up to the AllTrials campaign for research transparency
Some of the GSK key achievements:
They invested £3.4 billion in 2013 in their search to develop new medicines, vaccines and consumer products.
4 billion albendazole tablets donated to eliminate two neglected tropical diseases since 1998.
More than 12,500 people work in R&D in our search for new medicines, vaccines and consumer healthcare products.
860 million vaccine doses were distributed to 170 countries in 2013, 80% of which were to developing countries.
Six major new products approved in 2013 (in areas including respiratory disease, HIV and cancer).
2.2 Business purpose and ownership
GlaxoSmithKline PLC (Private Limited