5.1 Business Environment
5.1.1 Purpose and sectors of different types of organisations
Purpose of Organisations
Organisations are created to achieve specific goals.
- Providing a service – such as IT support companies, healthcare providers, or transport services
- Providing a product – such as manufacturers of computers, phones, or software applications
Private Sector Organisations
Private sector organisations are owned by individuals or shareholders.
- Small or Medium-sized Enterprise (SME) – fewer employees and local or regional focus
- Large enterprise – operates nationally or internationally
- Non-Governmental Organisation (NGO) – independent organisation often focused on social issues
- A local IT repair shop (SME)
- A multinational technology company (large enterprise)
- An international digital inclusion NGO
Public Sector Organisations
Public sector organisations are funded and operated by the government.
Their purpose is to provide essential services for citizens.
Examples:
Examples:
- Local councils providing digital services
- Public healthcare IT systems
- Government education services
Voluntary and Charity Organisations
Voluntary and charity organisations operate on a not‑for‑profit basis.
Their main focus is supporting communities or causes rather than making money.
Examples:
Examples:
- A charity providing refurbished computers to schools
- A not‑for‑profit organisation offering digital skills training
5.1.2 Business models
Business to Customer (B2C)
B2C organisations sell products or services directly to individual customers.
Example: An online retailer selling laptops directly to consumers.
Example: An online retailer selling laptops directly to consumers.
Business to Business (B2B)
B2B organisations sell products or services to other businesses rather than
individual customers.
Example: An IT company providing network support services to offices.
Example: An IT company providing network support services to offices.
Business to Many (B2M)
B2M organisations deliver services or products to large audiences
simultaneously, often through digital platforms.
Example: A cloud service provider offering online tools to thousands of users.
Example: A cloud service provider offering online tools to thousands of users.
5.1.3 Stakeholders
Internal Stakeholders
Internal stakeholders are individuals within the organisation who are
directly involved in its operations.
- Owners
- Directors
- Employees
External Stakeholders
External stakeholders are people or organisations outside the business
who are affected by its actions.
- Customers or clients
- Suppliers
- Shareholders
- Outsourced service providers
- Investors or funders
- Government and regulatory bodies