Oxfam is a charity and has no ownership this means they create their own goals and amount of money to achieve to give straight to the cause.Whereas businesses have objectives and payments that needed to be added to how much money they need to make to pay their owners that help fund the business.Oxfam do need to achieve their aims as a charity so that they achieve their purpose.Oxfam need the following things to achieve their purpose as a business/charity.The first thing is a small workforce and many volunteers;Oxfam need this because it reduces their salary cost ,enabling them to give their earned money directly to the cause with no hold backs or bad impacts on the money.Secondly they have staff working out in the countries and communities
Tesco and Oxfam are both huge global businesses who both sell products to the general public however are organised completely different. In this leaflet I will compare and contrast organisational structures of both companies.
By comparison, not for profit organisations, also known as social enterprises (which includes Green Pastures), provide services to local communities. They have to register with the Charities Commission and receive a charity number to trade by. They may have a financial target in the form of making money, but then put this money back into the community to support good causes. All housing organisations in England are known as Registered Providers and are regulated by the Tenant Services Authority. Social enterprises are any organisation that has business objectives other than making a profit.
Tesco is aiming at achieving profit, investing and offerring services and products to customers.Oxfam is a non-profit organisation, helping people in crisis.
The purpose of this assignment is to understand the range of different businesses and their ownership. I chose Sainsbury’s and Oxfam as they are businesses with different characteristics from each other, as I needed to choose one big company (such as PLC (public limited company) or LTD (private limited company)) and a small business (such as partnership, sole trader, non-for-profit business). In fact, Sainsbury’s is a supermarket and Oxfam a charity. This assignment will cover the purpose and ownership of the two businesses, the stakeholders of each business and how they affect the business.
|4 business organisations and their |Purpose |Profit free, not for profit, at |Size and scale |Linking the ownership to the size and |
If for example this was to change, and the volunteers and employees no longer agreed with mission statements, they would be less likely to volunteer meaning Oxfam would have less money to fund their cause, because they would have to employ more staff. They voluntarily help to run and operate the business, this is very helpful to Oxfam because it means they can save money, and invest in other areas of the business. The employees at Oxfam have a huge influence on the business because they give up their personal time because they believe in social justice.
Suppliers/donators influence Oxfam greatly. Without the public supplying Oxfam shops with goods to sell, the shops would fail and would not be able to raise money to support the charities work for third world countries.
As Oxfam, being a not for Profit Company there is lots of advantages and disadvantages. One of them is that Oxfam has lots of opportunity to assist the community for example funds and volunteer work. Oxfam is a tax exempt meaning that they do not have to pay any tax. Also, registered non-profits have limited liability under the law when it comes to dept. the owner of the business are not responsible for the business debt. Non-profits also have access to government-sponsored and loans. A disadvantage of Oxfam being a not for profit is that the Fund development and fund-raising can be a challenge, particularly during an economic downturn and when unemployment rates are high.
The ownership of Oxfam is that it is a charitable trust; therefore it does not have an ownership. However, it can fall under the voluntary sector because Oxfam is supervised by trustees who set up to provide a service to the wise community in order to raise funds and support those who are in need. If something was to happen to Oxfam, they have a choice to donate to another charity and keep the business running.
Stakeholders play a critical role in the management and decision-making process of an organization. An example of a stakeholder includes employees, managers, patients, vendors, suppliers, the community, creditors, customers and the government (Daft, 2013). Also, Daft (2013) says, “Stakeholders are groups “within or outside of the organization that has a stake in the organization’s performance” (p. 23). There are a few differences surrounding stakeholder expectations between non-profit and for-profit organizations. The differences in nonprofit organizations and for-profit business organizations are the direction of activities for the end goal (Daft, 2013). Although it is very difficult to measure the impact that a nonprofit has on society, community, or a particular group as opposed to evaluating an income statement from a for-pro-profit organization. The same level of attention should be paid to stakeholder for nonprofit organizations as stakeholders of for-profit organizations.
Size and Growth chart of Oxfam Oxfam is an international charity with roughly aroun20 organisations is working with their partners Local communities are in more than 90 countries. Oxfam employs 5,300 people worldwide Oxfam works with 22,000 volunteers Oxfam has 600 branches in the UK meaning that it is a large business.
Not for profit organisations consist of organisations that are not run for the profit or personal gain of individual/s. They are often referred to as charities and provide benefit services to society, often encouraging people to band together by sharing resources to achieve a common goal. Profits can be obtained by these organisations but must applied for the organisations purposes. These organisations include Surf life-saving, Churches, and Salvation Army etc. (Sessoms, 2014).
This means that any funds that Tesco earns from their sales goes directly to them while with Oxfam any income they make is only used for charitable causes and paying their staff. However one big difference is that if in the unfortunate event that both companies fell into any kind of debt then a company such as Tesco could use its assets to pay of the debts. With Oxfam they would have to rely on the donations they receive from their customers. And may even have to pay of their debts with the money they have and use for
The organisation has a mission to make the country healthy and safety and secure as well. In some areas the people need the organisation to help them so that they
P1 Explain different types and purposes of organizations; public, private and voluntary sectors and legal structures. [AC 1]