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
Example: An IT helpdesk company provides technical support services, while a computer manufacturer provides physical products.
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
Examples:
  • 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:
  • 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:
  • 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.
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.
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.

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