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Digital Business in the 21st Century - Task 1


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Digital Business in the 21st Century - Task 1 - Digital Project

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Digital Business in the 21st Century - Task 1

  1. 1. Digital Business in the 21st Century – 207 & 208 Task 1 By Jamie Beatty
  2. 2. Private Sector What is the Private Sector? The private sector is run by individuals and companies, rather than the public sector which is run by the government and they have control over these organisations. So fundamentally the private sector which makes up a huge part of the economy for many MEDC countries is not under direct state control but play a huge part in the running of a countries economy and in countries such as the United States, Canada, Australia, Japan and the United Kingdom the total percentage that the private sector contributes for the total GDP is over 80%. However in the private sector, the main intention is to generate revenue and therefore produce a profit. Companies within the private sector usually provide goods or services for those willing to pay for them in order for them to generate their revenue to cover their overheads and make a profit to then either reinvest into the business or for the shareholders / owners to retain after investing there own capital into the business. Examples of the Private Sector - Sole Traders - Partnerships - Small Sized Businesses - Medium Sized Businesses - Large Businesses / Multinational Corporations (Multinational means that corporations operate in more than country, some examples of this is businesses like Apple, Samsung and Apple). - Professional / Trade Associations - Trade Unions
  3. 3. Private Sector – Example 1: Hairdressers / Sole Trader • Example 1: Hairdressers / Sole Trader • What they do? This type of business offers a service of cutting and styling customers hair, whether it be male or female. Also this business can sometimes offer goods in terms of hair care, for example shampoo, conditioner, styling gel, hairspray, or electronic devices like hair straightens or hair dryers. • How they generate revenue? This business generate their revenue through transactions through their customers by offering them both goods and services. This type of business is classed as a small business therefore the amount of revenue is significantly lower to that of a PLC, or LLC. Also this type of business often relies on location for its revenue, and the location limits their customers due to transportation.
  4. 4. Private Sector – Example 2: Ben & Jerry’s / Partnership • Example 2: Ben & Jerry's / Partnership • What they do? Ben & Jerry’s are known manufacturing their own ice cream, frozen yogurt and sorbet and trading with retailers worldwide. The company initially started as a partnership between Ben Cohen and Jerry Greenfield. However the company was later bought out by Unilever, a multinational consumer goods company in 2000. • How they generate revenue? Ben & Jerry’s generate their revenue by selling goods to the public. They do this by selling through major retailers such as Tesco, Sainsbury's and ASDA in which they generate higher revenue margins and they are able to target different audiences this way. Also this company are able to sell through their own ice cream stores which are located in over 30 countries worldwide which enable them to engage closely with their customers.
  5. 5. Private Sector – Example 3: Disney / LLC • Example 3: Disney / LLC • What they do? Disney operates in four major areas of business, this includes film, music, theatrical and parks and resorts. They have acquired many major companies over the years like Pixar, Marvel and Lucasfilm which alone are huge assets and these again are involved in film, television and are now integrated within Disney’s parks and resorts which help them engage with a wider audience and produce better experiences for the customers. • How they generate revenue? The way Disney generates revenue is different to other businesses as they provide both goods and services, as Disney is known as a huge multinational conglomerate which owns theme parks, studios, and merchandise brands this means they have income coming from all different types of industries and from different target audiences. However due to Disney being a parent company this means they achieve a significantly higher revenue margin, for example in 2015 their revenue was just over $50 billion, however due to being such a vast company their have a significant costs which reduces that revenue to a profit under $10 billion. Also with their profit being substantial Disney often reinvests this into the company, for example the company purchased the Star Wars franchise in 2012 for over $4 billion and have invested capital in television, film and merchandise for this franchise.
  6. 6. Public Sector What is the Public Sector? The public sector is run by the government whereas the private sector operates by individuals or companies, so from the government operating these organisations then their main intention isn't generating profit like those in the private sector. The public sector is funded differently to that of the private sector as businesses don’t need to generate revenue to cover their costs because the state sue different methods in order to fund these organisations, some examples of these methods include using taxes, fees and financial transfers from other levels of government. However this isn't always the case of funding the public sector as other countries may take a different approach. Examples of the Public Sector - Education Services, for example schools and Libraries - Electricity - Emergency Services - Fire Services - Police Services - Waste Management - Gas and Oil - Healthcare Services - Public Transit, for example train lines These different organisations listed above are again, operated by the government and are in state control however they are run at different levels of government, and these levels include Federal/National, Regional and Local.
  7. 7. Public Sector – Example 1: NHS • Example 1: NHS • What they do? The NHS which stands for the National Health Service provides healthcare for the citizens of the United Kingdom and this service provides for those who are in need rather than in the U.S.A and other countries where they base healthcare for those who can afford it. The NHS offers a wide range of services, these include hospitals, dentists, opticians, mental health services, NHS walk-in centres, NHS Direct, patient transportation, screenings and pharmacies. • How they are funded? The NHS is funded from 98.8% taxation and National Insurance whereas the other 1.2% is funded by patient charges, which include charges from services like optical care, prescriptions and dental care. Funding for the NHS comes directly from the government as it is within the public sector and the decisions for funding is managed by the Department of Health however parliament delicate the amount of funding given to each department including the department of health.
  8. 8. Public Sector – Example 2: National Parks • Example 1: National Parks • What they do? National Parks have been formed to help conserve and protect the natural world, this involves preserving the beauty of the UK’s landscapes and ensuring that all wildlife and their habitats are safe from human interference. Another purpose of why national parks were formed is to help promote opportunities for the public to understand and enjoy the many different aspects of national parks in the country. • How they are funded? National Parks are provided by independent bodies which are funded directly by the government and this funding is given to ensure that the purpose of national parks is met.
  9. 9. Public Sector – Example 3: Leisure Centres • Example 3: Leisure Centres • What they do? Leisure centres have a purpose to provide a service where communities can relax and help increase their fitness using the equipment and facilities available to them. The aim is to encourage people to take part physical exercise and therefore promote healthy lifestyles . • How they are funded? Leisure Centres are funded from the government as this is considered to be part of the public sector, therefore this means that it is under state control. However whereas the NHS is under control by higher levels of government, Leisure centres are run by local authorities, and they decide how much funding they receive so this varies from different local authorities nationwide, meaning the quality of services and standard of facilities will differ. Leisure centres also receive some funding from the NHS as they contribute to services such as Children's Weight Management, as this is classed under public health therefore the NHS is involved due to that aspect. However leisure centres do also generate revenue independently by offering services such as swimming lessons, access to their facilities like the gym, basketball courts and swimming pools and also selling products like tennis rackets, swimming caps , floats etc. that are sold to the general public to help raise money for the centre.
  10. 10. Voluntary Sector What is the Voluntary Sector? The voluntary sector is run by organisations whose purpose is to provide benefits for the people, rather than generating revenue, also this sector doesn’t receive a vast amount of intervention from the government that of the public sector. So instead the voluntary sector has a goal of enriching society and is seen as generating social wealth rather than material wealth, that of the private sector. Also within the voluntary sector, the work force is varied as well, compared to the private and public sector. These workers include those being paid and those who have volunteered themselves to provide their efforts for the organisations. The voluntary sector is also known as the civil society as they aim for providing for society and communities therefore money raised by these organisations is reinvested to further promote growth and to create more opportunities and benefits for society. Examples of the Voluntary Sector - Charities - Foundations - Social Welfare Organisations - Advocacy Groups - Faith-Based Organisations - Community Groups - Recreational Sports
  11. 11. Voluntary Sector – Example 1: The Big Issue • Example 1: Big Issue • What they do? The Big Issue is known as a social business and is a financially independent charity who both provide jobs for professional journalists and allow homeless people the opportunity to earn a income by selling issues of this magazine. From this it helps the homeless gain some independence as they are working for their money rather than begging the public, this also allows them an escape away from poverty and to hopefully start bigger and better lives. • How they generate revenue? The Big Issue is funded from charitable trusts, individuals donating their own money and people participating in fundraising events. The magazine is also funded by the selling of their magazine issues, so far the organisation sell 100,000 copies every week and this has allowed the organisation to generate over £5 million for the homeless but some of the money from purchases does go back to the organisation to help keep it fully funded so they can continue their work.
  12. 12. Voluntary Sector – Example 2: Oxfam • Example 2: Oxfam • What they do? Oxfam’s purpose is to stop poverty from happening worldwide, but also to try to tackle other keys areas which are associated with poverty for example climate change and peoples freedoms. Oxfam use their funds to create new innovative ways to prevent poverty and to help those in need so they can eradicate the worlds sufferings and bring together communities. • How they generate revenue? Oxfam generate their funding through different ways, one method used is relying on the public to donate different types of items such as clothes, toys or textile products. These are then sold to customers to raise funds which are then used to help Oxfam with their projects around the world. Other methods include the public donating money directly to Oxfam which is generated from advertising such as emotional TV ads, or billboard posters. Oxfam also hold fundraising events every year in which they market to the general public to engage as many potential members of the public as possible to achieve bigger and better fundraising donations. Furthermore Oxfam has created partnerships with other organisations in order to help generate their funding to accomplish their goals to create a better world, for example ending poverty, climate change, women's empowerment, citizen voices and changing livelihoods around the world, especially in LEDC’s (Less Economically Developed Countries).
  13. 13. Voluntary Sector – Example 3: Princes Trust • Example 3: Princes Trust • What they do? The Prince’s Trust was created to help change young peoples lives around for those who may be struggling in life and need some direction in order to achieve a better life. For example last year, the organisation managed to achieve in helping over 56,000 young people get into jobs, education and training, and from this the organisation has generated over £1.4 billion back into society over the last 10 years. The organisation helps young people by giving them the practical and financial support that they require in order to succeed. • How they generate revenue? The Princes Trust generates its income through several methods, one is that the organisation receives some capital from the government due to the organisation performing so well and the fact it contributes money back into the countries economy. Also voluntary income was the largest source of income which has increased year after year. However the organisation tries to create public awareness and therefore they hold fundraising events to get the public involved but also raise additional cash.
  14. 14. References / Evidence Private Sector • • • • Private Sector – Example 2 • • Private Sector – Example 3 • Public Sector • • • Public Sector – Example 1 • • Public Sector – Example 2 • • Public Sector – Example 3 • • • Voluntary Sector • • Voluntary Sector – Example 1 • • Voluntary Sector – Example 2 • • • • Voluntary Sector – Example 3 • • •