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Introduction to the Book Description The purpose of the book is to introduce learners to the institutions and influences which constitute the economic and broader environment in which businesses operate and to develop an understanding of how businesses adjust their behaviour to changes in the environment,both nationally and internationally. Learners are encouraged to identify the objectives of organizations and the influence of stakeholders and to investigate the operation of organizations in relation to the local, national,and global environments. It is expected that learners will develop an understanding of the nature and purpose of political and economic institutions, underpinned by a knowledge of how basic economic theory works in different types of economy. Learners will also be expected to develop a basic understanding of economic, social and technological forces and be able to compare China with other countries. Teaching/ Learning Strategies The book will be delivered through a combination of lectures, seminars, small group tutorials as well as guided self-study. A topic will be introduced via a lecture. In the days following the lecture students will be invited to undertake related research which will then be discussed, reinforced, extended and enhanced via group seminars which may be tutor or student-led. The strategy will be underpinned and formatively assessed by small group tutorials. Chapter 1 Organizations and Their Objectives Introduction A great number of organizations with many different types, forms and usually with various objectives can be encountered in our lives. The business organizations we come into contact vary from huge organizations, employing thousands all over the world and with a turnover lager than some nations�� gross national product, to modest business organizations hiring only a few people and operating in a small locality. So what is the purpose of all organizations? Why were they set up, and why some of them cannot continue and some can operate successfully? In this chapter we are going to consider the advantages and disadvantages of different forms of businesses, like sole traders,partnerships, and limited liability companies. We also identify the differences between the public and private sectors, and explain the functions of three levels of economic activities,including primary, secondary and tertiary industries. In this chapter, we will mainly identify and discuss the mission, vision, values and various objectives of an organization. An organization should have its mission��the guiding idea behind the organization��s all activities. Vision is a kind of intention of an organization that is expected to be realized in the future. Values can be a set of principles or ideas that influence the activities of an organization. Objectives of an organization are used to fulfil the mission, which also explain the organization��s mission to a number of different client groups or stakeholders, who all have an interest in the organization��s activities. The objectives of this chapter: (1)The size and types of organizations (2)The nature of the public and private sectors (3)The three levels of economic activities (4) Business objectives 1.1 Categories of Organizations An organization is an arrangement of people, pursuing common goals, achieving results and standards of performance. There are many different types of organizations that are set up to serve a number of different aims and to meet a variety of needs. They come in all forms, shapes and sizes. All businesses try to achieve their goals so that they can be operated successfully. Any business has people and resources to do one of two following things. A. To produce or make items or goods to be sold, like shoe factory, furniture maker, jeans factory, computer maker. B. To provide services to be sold including banks, police, hospitals and insurance. Here are some possible differences between organizations.