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Report on Organisational Purpose

Principles of business administration.

For this report I have researched three different types of organisations. Private Sector, Public Sector and Voluntary Sector. I have stated each organisations value’s, aims, objectives, their vision statement and mission statement. As well as this I have stated all their similarities and analysed the effect of external sources using the pestle analysis.

ASOS Fashion – Private Sector

ASOS believe that their core values define who they are, what they do and how they do it. They call these values ‘The ASOS Way’.

To support their values, they have also created ‘Do The Right Thing – the ASOS Code of integrity’ which settles their core commitments. This code promotes integrity, best practice and appropriate behaviours across the whole business.

ASOS believe having integrity in mind of everything they do is key for the growth of ASOS and for the protection of their reputation worldwide. This is why the ASOS Code of Integrity sets out ASOS’ Values in the following core areas:

  • Complying with laws
  • Prohibiting and combating corruption and bribery
  • Dealing fairly in business
  • Contracting openly with connected parties
  • Ensuring gifts and hospitality are appropriate
  • Protecting company assets and information

“Empowering 20-somethings to look, feel and be their best so they can achieve amazing things” – ASOS’ Mission statement.

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ASOS’ Mission statement defines the company and clearly sets out its purpose. It quickly summarises what their company does and why. This will help all their employees understand where their contribution fits into the company’s objective.

“Our mission is to become the worlds number one destination for fashion-loving 20 somethings” – ASOS’ Vision statement.

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ASOS’ vision statement sets out its long-term goals briefly but clearly with a purpose to inspire and motivate their workforce by providing a picture of where ASOS is heading.

As well as having one big aim (their vision statement). ASOS has lots of different objectives. Objectives play a very important role in achieving their vision statement. I have listed some of them below:

  • To build an increasingly desirable, defendable and differentiated business model.
  • To become the leading fashion website in the UK and attract growing numbers of overseas customers
  • To reduce carbon intensity every year until 2020.

Political Factors – Such as Brexit could seriously affect ASOS as they currently deal with 12 countries that are inside the EU. Importing and exporting goods from the EU into the UK will become increasingly harder. Largely because the UK will no longer recognise institutions that oversee these areas, or will no longer be a part of the EU free trade area.

Economic Factors – ASOS Targets the fashion conscious 20 something year olds and eight years ago it had only 550 square meters of warehouse space, it now has 32,500 square meters. This is so ASOS can meet its growing demand due to the developing confidence in online retailing.

In 2005 ASOS employed 47 permanent staff, it now has 3500 permanent employees. Again, to meet its growing demand.

Social Factors – Society’s culture and way of doing things impact the culture of an organization in an environment. Shared beliefs and attitudes of the population play a great role in how marketers at ASOS will understand the customers of a given market and how they design the marketing message for Retail industry consumers.

Technological Factors – Technological factors play a huge part in ASOS’ organisation. ASOS launched in 2000 when nobody really used to buy clothes online and they are now the largest young fashion brand ever created to never have had a physical store. They could never have done this without the ever-improving technology which fundamentally influenced the company’s performance. For example, in the last few years, the internet, mobile smart phone technology and social networks have grown extremely vast in stature especially among the 16-34-year olds. These new technological platforms represent new avenues for sales and marketing and are becoming vitally important when it comes to targeting younger consumers.

Legal Factors – Tax/wages. In 2011 the UK government increased VAT from 17.5% to 20% (HMRC 2011). This affected ASOS as it meant product pricing had to increase, which meant operating costs also increased. Increase in minimum labour rates in the UK also went up meaning that ASOS would have been spending more on wages. As operating costs and wages increased, its likely that ASOS had to put up it’s prices to its customers to cover for them having to spend more money.

Environmental Factors – ASOS recognises the current trends in consumers and governments demanding needs to reduce their carbon foot prints. The company is committed to reducing its own by minimising recycling waste and lowering packaging of their products. ASOS have an environmental policy which sets out their commitment to managing waste generated from their business.

NHS – Public Sector.

The NHS is controlled by the government but believes it belongs to the people and is founded on a common set of values that bring together the communities and the people it serves. The NHS credit everybody involved whether it’s the patients or the staff for helping develop their values that inspire passion in the NHS.

Individual organisations may alter and build upon these values to accommodate their local needs. The values are in place to provide common ground for all the organisations to achieve shared aspirations throughout all of the NHS, which are:

  • Working together for patients – Patients come first in everything they do.
  • Respect and dignity – They value every person.
  • Commitment to quality of care.
  • Compassion.
  • Improving lives.
  • Everyone counts.

“To provide quality of care to every person every day” – NHS Mission Statement.

The NHS’ mission statement is concise and specific offering a clear conclusion to both staff and the public. This will guide staff with a purpose and give each organisation basic framework to work against/towards. As well as this it will help the public understand how The NHS provides value to them and their loved ones.

“To deliver better health, better care and better value” – The NHS Vision Statement.

The NHS’ vision statement indicates and guides transformational initiatives through setting a defined direction for their growth.

To help The NHS achieve their vision they have set out a number of Aims to help all employees from all organisations work their way towards their ultimate goal:

  • Improving the environment for patients and staff.
  • Providing benefits for the welfare of patients and staff.
  • Providing health education for patients.
  • Providing support for staff education.

Supporting the advancement of independent scientific and medical research on topics related to sickness and disease.

Political Factors -The impact of UK’s vote to leave the EU could have massive implications for the NHS. While the impact on the NHS cannot be certain it is apparent that a number of issues will need to be addressed. For example, the EUs policy of freedom of movement and mutual recognition of professional qualifications within the EU means that a lot of UK’s health care professionals have come from other EU countries (55,000 to be exact).

Economic Factors – The movement of money, whether its to or from the NHS can cause a change in the environment. For example, the NHS require qualified staff and the cost of labour has increased exceedingly over the past few years making it difficult for the NHS to spend more on other products/treatments. The NHS cannot work without qualified staff hence why they will have to cut down on other expenses.

Social Factors – Obesity, drinking and smoking which all cause disease and death ultimately add billions of pounds to the NHS bill. Studies have shown that one in every four adults are obese which has been forecasted to double in the next 30 years. Obesity is currently costing the NHS ?4 billion a year, while the bill for dealing with drunkenness and alcohol abuse is slightly lower at ?3 billion a year. There has been a continuous push for people to live healthier lives for numerous years and while smoking rates have fallen in recent years the burden from obesity and drinking is still on the rise continuously costing the NHS more money.

Technological Factors – Technology is improving fast and the NHS should implement it so that they

can keep up with current times. For example, when visiting the doctors, you can now make appointments, check-in, order prescriptions and also get prescriptions delivered to your house through an app. This is very useful to patients that have a busy lifestyle, making it more accessible and easier for them. It also frees up a lot of staff time, so they can do more important jobs.

Technology can help NHS to treat patients efficiently and more importantly, data is stored with the NHS, for years to come.

Legal Factors – There’s more people taking legal action against the NHS as well as this the cost of meeting claims seems to be rising. This means that the NHS will be spending more money on litigation. However, it is important that their core principles remain the same and they continue to do their best to produce high quality care.

Environmental Factors – An ageing population should be taken into consideration when looking at the environmental factors that affect the NHS. The older generation tend to need more health care due to long-term conditions such as Type 2 Diabetes and Dementia which are more common for older people. This means the NHS should be located nearby in the locality so hospitals can be easily reached when needed in an emergency.

Alzheimer’s Society – Voluntary Sector

40481251270000Alzheimer’s Society primary purpose is to create social impact rather than existing to create a profit and consider the people who run it feel a strong connection on what they stand for and how they deliver for people affected by dementia. Alzheimer’s UK state that their values are “the glue that binds us together. However, that doesn’t mean that they can never change”

As they have evolved and raised their ambitions, they have altered their values to suit. They understand that new challenges require new ways of thinking while retaining the following values that are at the heart of the organisation:

  • We get it – w?e are trusted experts, ?informed and inspired by people affected by dementia.
  • We are united – together we achieve more.
  • We will do it – we demand and deliver lasting change.

“Our mission is to transform the landscape of dementia forever. Until the day we find a cure, we will strive to create a society where those affected by dementia are supported and accepted, able to live in their community without fear or prejudice.” – Alzheimer’s Society Mission Statement.

The Alzheimer’s Society mission statement lays down their sole purpose and announces to the world why the company exists. Their mission statement is front and centre in the minds of everyone who works within the organisation and can be communicated easily to people using their service which is very important when providing help and care to people who need it the most.

“A world without dementia” – Alzheimer’s Society Vision Statement.

The Alzheimer’s Society vision statement is an aspirational description of what they would like to accomplish in the long-term future. It also describes where the company wants the world to be as a result of their services.

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Report on Organisational Purpose. (2019, Dec 17). Retrieved from http://studymoose.com/report-on-organisational-purpose-essay

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