Assess the impact of government on the structure and operation of a business organisation

Introduction:

There are two different organization running in different sectors such as:

1Private sector.

2Public sector

3Nonprofit organization

Business are run in these two organization following their own rule and discipline in the UK (Wetherly & Otter, 2014).

The legal structure of the UK is based on the following two types:

1. Partnership,
2. Sole proprietorship.

Partnership is a business where two or more than two people joined hands to start a business.

It consists of advantages and disadvantages.

Advantages & disadvantages of partnership:

More capital is available to start the business. It helps in better decision making and sharing access knowledge and experience for a better decision but on the other hand there are some disadvantages which can be a reason for the termination of the partnership (Sabbati & Griaznova, 2020). The conflict between the team members may urge to break the bond between them.

Advantages & disadvantages of sole proprietorship:

It is easy to establish and demolish. Owner has the complete hold of the proprietorship.

The legal documentation is also very easy but on the other hand there are disadvantages of sole proprietorship, financing get difficult, Business will be taken away by the country if the owner passes away (Icaew.com. 2021).

Mode of financing for public and private ownership:

In public ownership the capital is funded by the government where as in the private ownership the capital can be utilized from the inheritance or gifts rather it can be sponsored by the relative, friends or any member.

UK competition policy:

These policies are made to give a smooth platform for the business man to promote their business (Gov.scot. 2021). There are following law of UK competition policy:

1free trading opportunity should be given between the business entities.

2Any firm practising dominating behaviour will be banned.

3 Prohibited transaction are strictly not allowed.

4 Unfair trading means should be banned.

 Understanding of the objectives and fiscal and monetary policy instruments

Government play a major role in the development and economic stability of the country. Government policies and procedure enable in better understanding the country growth and success factors (Sabbati & Griaznova, 2020). These policies are the stimulator in making the companies plan and deploy the strategy of business growth. Currently UK is also in the very stressful situation therefore they has planned a new monetary and fiscal policy:

1. Increase the funding to recover the economic recovery.
2. Spent more on people health to help them come out of mental stress.
3. Create new jobs to decline the unemployment created by covid2019.
4. Support the citizen to clear their debt.
5. Taking funding from the neighbour country to start the business operation.

Globalization:

In this pandemic situation every country has been a victim of corona virus which has badly affected their and business operation of the country (Thomas & Miller, 2020). Global economy has been badly devastated with the spread of the disease. World is globally interconnected with each other and supply chain is the major source of earning revenue and boosting economic stability. Covid19 has shut down the world trading and declining their growth. The global economies are the adverse victim of covid19.

Competition and Markets Authority operates to review business practice and impact on the consumer

 Companies are planning pandemic recovery plan to run their business operation successfully. Business are suffering from huge loss due to this deadly disease spread and making it worst by not taking precaution so it is mandatory to prepare an effective plan for the business. Business meetings and face to face communication is badly affected due to the pandemic (UC Berkeley Labor Center. 2021). Government has made lock down for a long period of time for the safety and security purpose of the citizen but this step has created a big trouble for the small and long businesses. The companies who are unable to manage the workload and provide salary to the employees have shut down the business.

Some companies have gone towards the downsizing which has increased the ratio of unemployment in the country and cybercrime in the country. People are dying of hunger and with the spread of the deadly disease it has a worst condition for the world economy (Kozubikova, Homolka & Kristalas, 2017). The ratio of death in world economy has crossed millions and billions.in business sector each and every person is affected with the covid2019 such as competitors, suppliers, customer, buyer, and workforce. Business are moving towards the Information technology to run their business such as cloud service provider, ERP and many other applications are being installed to run their business. Training sessions are being conducted in the companies to teach the skills in their employees to run the business operation successfully.

It is also a huge cost for the organization in such a pandemic situation to take out the expense of training session (Wetherly & Otter, 2014). Ecommerce business globally is achieving a huge success. Customer service helpline is being available 24/7 to handle the customer query and provide them safe and happy shopping experience. In this way customer can be facilitated in a stress full situation pleasing them with good service is an excellent approach to run the business operation.

Education system:

Educational system is totally distracted, most of the schools are enforced to move towards the Elearning system which is a reason for the loss of children studies (Gov.scot. 2021). The youth of today are the leaders of tomorrow and if there bring up is not done appropriately the future of the country will be at the risk zone.

Agricultural sector:

Agricultural department is badly affected of the COVID 2019 the poor farmers and the people working on the daily wages are unable to fulfil their daily necessity due to the lockdown condition. The health and safety system is also disrupted because the checkups and OPD is also closed. Most of the health workers are giving a facility of online checkups which is an effective way for security but on the other hand the rural area is deprived of the facilities of the internet so they are unable to take advantage of this facility. Therefore, they are more focusing on the home remedies.

Tourism:

International flights are totally prohibited because of the fear of spread of this disease. Due to this international business and relationship is badly affected. Country is suffering from short or products neither the goods manufactured in the country can be supplied to other country so it is the most severe loss for the travellers, customers, business suppliers, buyers etc. Government is still planning a post Covid strategy to bring their economic stability (Kozubikova, Homolka & Kristalas, 2017). Tourism is the most revenue making field but international flight restriction has demolished the business of tourism. They are adversely affected with the Covid 2019 waves because their total business depends on the travelling. People are suffering from the mental disorder which is a great hurdle for the government to handle in such a circumstance.

Demonstrate an understanding of the impact of changes in the public sector and nonforprofit environment on business organisation and activity

Public sector:

There has been a great recession seen in the public sector. Employees are not provided with their wages which is leading the people to anxiety and anger (Kozubikova, Homolka & Kristalas, 2017). Public sector has lost their sector in this pandemic situation because they are out of budget to run the operation of their business.

This epidemic situation has become a part of the history for leaving no way to escape for people.US is among one of the wealthy country of the world but this pandemic situation has laid down the super power country into the decline which is a situation to monitor and find out the way to solve this problem (Sabbati & Griaznova, 2020).

Inflation is one of the main reason for the decline of the country economy. In the public sector all their departments are affected like education, travelling, agriculture, health and safety. A huge margin of unemployment has increased which has provoked the people towards the cybercrime and many other criminal act (Icaew.com. 2021).

The front line workers are being over burdened with the work to save the life of people but they are paid a little amount of money (Managementevents.com. 2021). They are being order to stay day, weeks in the hospital wearing the health and safety dress to rescue themselves from the germs of the deadly disease. It is important to ensure that the health and safety of the workers are the top priority. Hospitality is the great hit sector due to this deadly disease.

Private sector:

In the private sector the COVID 2019 has created a worst condition the business man who do not have a sufficient capital to run the business and take out salary for the employees has completely shut down the business leaving the people unemployed and sold their business at a very low cost rate to recover from the liability implied on them (Accenture.com. 2021). People are being isolated in their home. Private sector is being liable of a huge amount of tax.

Government should start funding them to support in this hard time so they can continue their business and help them to survive in the market such a way we will be able to save jobs of many people who need support from us (Gov.scot. 2021). Private sector should more focus on the online working system whether it is education, travelling, retail, health sector etc.

Covid2019 has changed the lifestyle of the people and has enforced a new life style in their lives. Companies do not have sufficient amount for the innovation and technology.

Non for profit organization:

Non for profit organization are playing crucial role in the society nowadays. In this circumstance of covid 2019 there are making packages of food and daily necessity and providing them to the citizen place so can stay safe at home .these are the organization need government through support to stand in this time. We all have to stand in a position and stay unite to help each other in any way.

Non profit organization has started a new service in this hard time to provide meal for the children who are under treatment and fighting with the deadly disease. They are providing the small kids with the card and gift to make them feel happy and hopeful in such a situation so they can gather hope towards life (Junaedi, 2021).

Conclusion:

Covid2019 has affected the live of the people as a whole, whether it is a public, private or nonprofit organization none of the sector is rescue with its disaster. the whole world is going through a very difficult time. We need to support each other staying apart and motivate our love ones so they can gather hope towards life. Covid 2019 has laid off the lives of people with its shocking waves and increasing the death rate and engulfing the life of people.

References:

Wetherly, P. and Otter, D., 2014. The business environment: themes and issues in a globalizing world. Oxford University Press.

Junaedi, U., 2021. Analysis of Covid19 Impact for Law and Society. [online] Journal.unnes.ac.id. Available at: <https://journal.unnes.ac.id/sju/index.php/iccle/article/view/38330> [Accessed 18 March 2021].

2021. [online] Available at: <https://www.ey.com/en_gl/covid19/covid19andpandemicplanninghowcompaniesshouldrespond> [Accessed 19 March 2021].

Managementevents.com. 2021. The Impact of COVID19 on Businesses | News. [online] Available at: <https://managementevents.com/news/theimpactofcovid19onbusinesses/> [Accessed 19 March 2021].

Accenture.com. 2021. Coronavirus (COVID19) Business Impact | Accenture. [online] Available at: <https://www.accenture.com/sken/about/company/coronavirusbusinesseconomicimpact> [Accessed 19 March 2021].

Icaew.com. 2021. Coronavirus and the public sector. [online] Available at: <https://www.icaew.com/coronavirus/publicsector> [Accessed 19 March 2021].

UC Berkeley Labor Center. 2021. Public Sector Impacts of the Great Recession and COVID19 UC Berkeley Labor Center. [online] Available at: <https://laborcenter.berkeley.edu/publicsectorimpactsgreatrecessionandcovid19/> [Accessed 19 March 2021].

Idbinvest.org. 2021. How the COVID19 Crisis Can Change the Private Sector for the Better | IDB Invest. [online] Available at: <https://idbinvest.org/en/blog/developmentimpact/howcovid19crisiscanchangeprivatesectorbetter> [Accessed 19 March 2021].

Gov.scot. 2021. Coronavirus (COVID19) UK fiscal path: update November 2020 gov.scot. [online] Available at: <https://www.gov.scot/publications/covid19ukfiscalpathnovemberupdate/> [Accessed 19 March 2021].

Thomas, B. and Miller, C., 2020. Creating a Business Environment for the Sustainable Development of AgriFood SMEs and Farming Communities in Wales UK.

Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University Press.

Sabbati, G. and Griaznova, O., 2020. UK: Economic indicators and trade with EU.

Kozubikova, L., Homolka, L. and Kristalas, D., 2017. The effect of business environment and entrepreneurs’ gender on perception of financial risk in the smes sector. Journal of Competitiveness.