The role and function of the Management Accounts Department

Introduction (Define and briefly explain what an organisation is by stating its characteristics/features) An organization is defined as a selected group of people, who are grouped together to serve a particular purpose either in government, private set up or in business. There are other several types of organizations. These include; society, non-profit organizations, charitable organizations, trade associations, professional associations among others. Types of organisations There are numerous types of organizations in the business sector and I am going to state them. The different types of groups in organizations are Public sectors, Private sector, Non-governmental and also Non- Profit Organizations a) Public Sectors Organisations (Define and clearly explain what public organisations are. An example of this is police is all controlled by the government. Anything that goes on with the police the community has the right to know.

The rules and regulations are put down by the authority. Public Accountability: Accountability is when the public is accountable to know what goes on inside the organisation. This is any update or anything they have the right to know what goes on. com/government-politics/main-objectives-public-sector-3e5a0c87dd9bb1fc The goal for this is to provide and good service for the community. This is whether it is for the rich or the poor. This is all in place to help society, the government is there to help and benefit everyone Legal forms of Public Organisation: Legal forms of public organisations is formally responsible for dealing with all public organisations. For example schools, hospitals and police. The government are there to make sure everything is run smoothly and thoroughly. Joint ventures 5.

Franchising 6. Licensing Private sectors is a piece of the legal encomy that isn’t under direct state control which means it isn’t owed by the government. The objective private sectors is to upgrade and move forward. According to research private companies, are companies that are not publicly traded increasing market share. This mean it could be more deer than companies. PARTNERSHIPS: Partnership is where two or more people come together to form a business. Every individual involved in the organization must take a responsible act in the organizations administration. They will need to minimize any risk that may be brought to the business. Partnerships are also responsible for financial situations, this is including debts. The life of the partnership can be constrained by misunderstanding or by the life accomplices. LLP: Limited liability partnership is proposed for accusations that ordinarily function as an ordinary affrication.

This tends to be accounting firms, solicitors, dentist and veterinary practise. In 2001 a legal stricter was put in place to limit partnership liability which means there are not responsible for any debts personally for example. The owners belongs will not be prohibited. preservearticles. com/2012022823826/what-are-the-disadvantages-of-a-public-company. Private Company: Private companies are not the same as public companies. Stock is not exchanged on open trades as New York stock trades. Offers of privately owned businesses are offered, possessed and exchanged secretly among intruded finance specialist. More knowledge with the equipment and technology that will be required. You will be able to build networks and relationships. There is a better chance of the company progressing. DISADANTAGES: Broken down communication Flexibility restriction No equal involvement Limited opportunity If there is a contracted involved it could be hard to leave.

Unreliable partners. NGO’s may create awareness to both human rights and animal rights among others NPOs A Non-Profit Organization is an organization which is entirely set up to provide goods and services to the public without the objective of making a profit. NPOs are often limited in the geographical area they can serve and mostly revolve around promoting science, art, research and other beneficial human pursuits. Briefly explain what you understand by scope of an organisation. The scope of an organization is a predetermined feature in an organization which describes the parameter’s within which an organization will operate, which divisions they will have and the sector the organization operates in 2. Identify the factors that determine the size of an organisation There are several factors which determine the size of an organization.

These are the ceilings to any organization that identifies itself as an SME. a) Importance of SMEs in the UK (Briefly state the importance of SMEs in the UK) SMEs in the UK and in any other economy are of great importance. Initially, every big company in a nation begins as an SME. They are the founding blocks of future big companies and are logically the next strategic step for small and medium sized business in terms of scalability and growth. SMEs due to their small sizes, flexibility and growth rate, provide employment to a very large number of the working population. Explanation and an analysis of how structure, size and scope of different organisations affect business objectives and the products and services offered. The size, structure and scope of an organization affects business objectives and the products and services offered in three main ways namely; task/work specialization, formalization and departmentalization.

Unlike small organizations where small tasks are carried out in horizontal level, big businesses often utilize vertical levels which include layers and layers of management in a very complex structure. Work specialization is affected by scope and size in such a way that people are given specific tasks and individual units require skilled personnel to carry out the given task. For instance, in a bank, work is specialized to tellers, customer care attendants, receptionists, and human resource and branch managers among others. It is therefore easy to fill vacant positions, identify undermanned departments, redistribute resources within departments and overall supervise the performance of all departments in relation to the objectives of a company. b) Organisational structure (Define and briefly explain what organisational structure is?) An organization structure describes the different activities within an organization and how they link up to achieves the goals set by an organization.

These structures include coordination, task allocation and supervision. c) Types of organisational structures (Identify and briefly explain types of organisational structures) Types of organizational structures include; functional, divisional, matrix and flatarchy. Functional organizational structure is also known as the bureaucratic structure is based on the traditional concept of knowledge and skills. The advantages of this structure is the fact that each and every employee knows their duties and responsibilities and orders are transferred directly from the managers to the staff. The disadvantage of this system is its lack of flexibility and the time taken to make decisions is long because of the bureaucratic red tape that needs to be followed. Task 2 3. Introduction (Briefly explain what macro environment is? Briefly state the importance of macro environmental analysis to business success with reference to GlaxoSmithKline plc (GSK).

A business operates within an environment that determines its management, its organization and the revenues it generates. The government is has a duty to its citizens to provide and conducive environment for businesses to thrive in. a government sets policies which determine and disrupt the normal business operations. Policies may involve matters such as licensing, issuing of business permits, regulation of prices, among many other factors which affect the entire scope of an economy. The economic environment within a given region is dependent on several factors and therefore shifts according to how these factors influence it. Economic factors such as inflation, recessions, unemployment rates and taxes are all determined by the different activities happening within a given region. For instance, shopping malls have risen and fallen within three to four decades due to ecommerce retail.

Businesses which fail to adapt are being consumed by fast adapting businesses within their niche. Amazon which is an online retail store has revolutionized the online retail industry dominating and outgrowing other businesses in this niche and is only a few steps to becoming an uncontested monopoly in within its industry. Such profitable and sustainable growth has been influenced by the ability of the company to adapt and capitalize on new revolutionary technologies. Business which ignore their technological environment have a very slim chance to survive and compete with their counterparts. It’s also the ethical duty of a business to conserve the natural environment to also ensure its existence in the future. Introduction (What do you understand by a micro environment? Briefly explain. The Macro environment describes the external factors affecting a business.

These factors include Social, Environmental, Economical, Technological, Political & Demographical factors. These are mostly factors beyond the realm of the business; hence the business has very minimal influence towards their existence, change or occurrence 3. A business must therefore abide to the laws and regulations set within the region it operates and is answerable to the governing bodies responsible with enforcing the different laws, policies and regulations. The natural environment is the living environment which surrounds a business. Businesses have a responsibility to their environment and therefore, then need to abide by legal environmental standards and policies set up by the responsible bodies governing environmental conservation. It’s also the ethical duty of a business to conserve the natural environment to also ensure its existence in the future. c) SWOT Analysis Conduct internal and external analysis of specific organisations in order to identify strengths and weaknesses and explain how they interrelate with external macro factors.

GSK has previously acquired or collaborated with competing brands to maintain their market share and to be in the frontline of innovation in the pharmaceutical industry; this is also an opportunity they should continue focusing on to ensure they work and acquire the best and most innovative young companies in the world. GSK also has the resources and financial ability to allow them to spend more on marketing and innovation. Threats- the greatest threat facing GSK is immense competition from young and upcoming companies and also existing renowned brands. Governments are also working on policies to regulate drug prices and this reduces the overall profit margins from drug sales across all pharmaceutical companies 3. Critically evaluate the impacts that both macro and micro factors have upon business objectives and decision-making The business environment has been classified into two distinct categories; the micro environment and the macro environment.

al, 2009). From the macro environment, a business is able to understand the political, economic, social, technologic and environmental realm within which it operates and the decisions made within a business revolve around these factors to ensure it adjusts on their influences accordingly. From the micro environment, leaders in business organizations are able to adjust their internal decisions regarding suppliers, employees, shareholders, consumers, competitors and their financial resources to efficiently make changes within the business’ micro environment. References Hillary, Ruth, ed.  Small and medium-sized enterprises and the environment: business imperatives.  Human Systems Management 1. Davis, Keith, and Robert Lowell Blomstrom.  Business and its environment. McGraw-Hill, 1966. Ayyagari, Meghana, Asli Demirgüç-Kunt, and Vojislav Maksimovic.