Section 1: Introduction
The market economy is an economic system that answers the three important questions in an economy which are what should be produced, how should it be produced and who should get the output. There are three different types of economic market, and each one of them is answered differently by our three questions according to the type of the market economy. Therefore, the market economy can be divided into three sections which are the free market economy, mixed economy, and planned economy. In the UK the nature of the economic market is based on the mixed economy because there is no economy completely free market or completely planned. The free market economy is when the resources are allocated by the market. While in the planned economy resources are allocated by the government or state. The mixed economy is when the goods and services are provided by both government and private firms. (Gillespie, A. 2016). In the economic market there are three sectors and they all part of the country economic system, each one of these sectors is aimed to provide services and goods and managing them through the supply chain in a cost-effective manner (Leenders, M. & McCue, C. 2003). One of the parts of the economic system is the private sector, this sector is controlled and owned by individuals or firms which are a group of individuals and their aim is to make profits. What is more, that most of the countries business activities are in the private sector. The second part of the economic industry is the public sector it is the opposite of the first sector, this sector is managed by the government or state and it is aimed to provide a high quality and equal services for the citizens, for example, health, education, water supply, and electricity. The last part is the voluntary sector and it aims to provide a service for the benefit of the society and talking social issues that the world is focusing on. This sector stands between the private and public sectors. There are many organization in the voluntary sector with different goals, some of them are aimed to help the homeless, adopts medical researchers and help to stop poverty around the world. (Stimpson, P. & Farquhharson, A. 2015) Therefore, this report will talk about three organizations that belong to the previous sectors had mentioned. First organization is the national health service (NHS), its considered among the public sector. Second, McDonald’s and its well known as the most famous organization in the private sector. Third, Oxfam and it’s an organization that takes care of social problems, which is a part of the voluntary sector.
Section 2: National health service (NHS):
National health service (NHS) is one of the oldest organizations that appeared in the health field to serve the national population health in England. (NHS) England is the responsible part to take care of the national health service in England. This year 2018 NHS is celebrating it 70 years of serving people health, through the past 70 years NHS has done a lot of achievements and developed its services for the benefit of the people in England. NHS was founded in 1948 according to the minister of health request, he was ambitious to provide all the population in England with a high-quality health service. NHS grownup with a rule that aimed to give everyone a chance to have an equal and good health service. Nowadays NHS considered as one of the largest health services around the world in the public funded sector. Over the past years, NHS has provided many services for the public, for example, they support people with learning disabilities, providing and improving best ways to survive with cancer and mental health for both children and young people. NHS is one of the top five largest workforces in the world, it has more than 1.5 million employees. What is more, the NHS depends on taxation to get funded which requires a good performance of UK economy. (NHS in England, 2016). In early days the national government and the state where the responsible element to present many public services, for example, education, health, safety, saving people rights. The health sector was one of the most important government priority and paid it a big attention. During the upcoming years, the government had faced many fears and risks that stands up as a contraindication to achieve the required level of services, delay in services delivery, wasting money in a failed project or to be a fraud by state officials. So here when the government decided to release the (PPP) which is stands for the public and private sectors partnership, it was launched in 1992. This partnership was aimed to reduce the public spending and the borrowing limits in the public sector, meanwhile to provide good quality services and to keep the investment level high. Well, NHS belongs to this partnership, but it is fully owned by the public sector, since its funded from the government and it provides a public service for mostly free, for example buying medicines is not for free anymore. At the same time, NHS is leaning towards private principles because there is evidence that it is copying the private sector on the way it works (Bing et al., 2005).
Section 3: McDonald’s:
McDonald’s is the perfect instance of a successful American business; this famous restaurant was first time found in America in 1937 by two brothers, Richard and Maurice McDonalds they came from a small town called Pasadena which is located in California. McDonald’s is one of the most known fast food restaurant around the world and compete many restaurants in the same file. McDonald’s runs its business in terms of the private sector laws since its first aim is to make profits while providing a product that deserves to pay for. At the early days of the restaurant, they were focusing on producing only burgers. (Vignali, C. 2001). During the upcoming years when McDonald’s restaurant starts to grow up and achieve success, the investors saw an amazing opportunity to join McDonald’s and maximize their profits. For example, in 1954 there was a milkshake salesman called Ray Kroc, he saw that he can be made much more profits if he joins McDonald’s market. In the following of that Ray Kroc offered McDonald’s a franchise deal allowing him to have all the rights to franchise McDonalds in the united states of America. McDonald’s restaurants are well instance of a franchisor business, more than 80% of the restaurants are operated by franchisees. These restaurants are owned by a group of franchisees in the first place, this type of business ownership enables the franchise to own the restaurant and control the business in the way he likes to fit the society that he runs his restaurant in. (Macdonald’s corporation, 2015). Nowadays McDonald’s considered as a successful franchisor company, according to what have done so far. McDonald’s have 420.000 employees around the world according to the united states securities and exchange commission by the end of 2015. Furthermore, McDonald’s has much more than 20,000 restaurants located in 100 different countries. This success is due to the high quality of the product and the variety from country to another to meet the requirement of the country for example in middle east McDonalds they have McArabia, good techniques in marketing and their big circle of customer focusing they provide meals for children.
Section 4: Oxfam:
Oxfam is one of the well-known organization that exists to make a change in the word and makes it a better place to live. by providing many services for the people that can’t afford a good life expectancy. Oxfam is an international organization that contains 20 smaller communities, they work together in more than 90 countries. Oxfam is a voluntary sector organization since it works beside the government by solving a community and social issues. Oxfam has many noble goals like the most voluntary organization do. They work very hard to find the reasonable solution to reduce poverty around the world. According to the Oxfam strategic plan, the organization will have many social goals that will change a lot so far. First, they will focus on encouraging the marginalized people to get involved in the society and use their rights to influence and make a change in the decisions to have a better life and make their voice heard. Second, women still underrepresented in many fields even in 2018. Well, Oxfam aiming to reduce that through supporting women’s right, allow women to take the leadership of women’s organization and reduce the violence against women’s by educating the society. The third aim is to save more lives, by minimizing the effect of the natural disasters, grant them their rights to have drinkable water and their need for food and ensure them to have the fundamental needs. Fourth, the Oxfam will promote the agricultural side in the developing countries to provide enough food for the people who live in rural places through an equal global system. Also, they will advertise campaigns to educate society about the climate change and its effect on the food supply, to encourage people to change their daily life routine that harmful mother earth. Fifth, the poor people are the most effected people by increasing the demand for the natural resources. According to that Oxfam is trying to provide poor people with greater and fairer access to the natural sources. The last aim of Oxfam organization is to make more money than ever before to provide many chances around the world for the people to get access for better life and allows them to participate in different fields such as economic, social, political and democratic freedom. (Oxfam organization, 2016). Oxfam has done a lot of work in the voluntary sector and helped millions of people in several places worldwide. They provided a basic requirement for living for many people such as food, water, home and safe. Also, they saved and protected lives from several diseases. Moreover, many women today are more knowledgeable about their rights and started to be an effective element in the societies by getting engaged in the social life. For the upcoming years, Oxfam has a great ambition to make the universe better place to live in without poverty. (Oxfam organization, 2016).
Section 5: Conclusion
This report had discussed three types of businesses organizations belongs to different sectors of the economic system. The first sector was the public sector which is runs and controlled by the government to provide an equal service for everyone. National health service (NHS) is one of these organizations that exist to provide a health care for mostly free. In the other side, the private sector is completely the opposite of the public sector, this sector is aimed to make profits from the service or a product that are offering. McDonald’s is a private business that is owned by a group of franchisees, having the right to control the branches around the world. While the voluntary sector stands between these sectors, its aims to help the society by tackling different types of issues located in the society, therefore why Oxfam was founded. During the recent years, Oxfam had helped the world in many different ways. Overall all, there is no market system is completely free or planned. The economic market in the UK is a mixed market and its operations between two these economic markets. All our three types of sectors public, private and voluntary are controlled by the mixed market economy.