Business organisation

Materie:	Appunti
Categoria:	Inglese
Voto:	1 (2)
Download:	149
Data:	14.06.2007
Numero di pagine:	4
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board of director
group of people that manages a company
managing director
has the power of making decision
sales manager
is responsible for the sale from the order to the transport, the delivery etc
marketing manager
is responsible for market research, advertising and distribution
human resources manager
is responsible for the recruiting and firing of the staff
purchasing manager
is responsible for the buying of row material, component, equipments, stationery, etc
production manager
is responsible for he production and transformation of goods
financial manager
is responsible for the finance resource, wages and billing
decentralized business is when the managing director delegates the responsibility of decision-making to head of each departments
centralised business is when managers’ autonomy is limited and where the main decisions are generally made by managing director board of director
SOLE TRADER
the business is set up by one person who is entirely responsible for his own business debts, that is to say he has unlimited liability
ADVANTAGES
 the owner can monitor everything personally
 the owner receives all the profits
 the owner can make decision quickly
DISADVANTAGES
 the owner can lose all his personal assets if the business fails
 there are limited resources of finance because all capital must be provided by one person
 there is no one share the workload or ideas with
PARTNERSHIP
there are two types and the difference is that the partners have, respectively, limited and unlimited liability
UNLIMITED PARTNERSHIP
all of the partners are liable for the debts of any of the other
UNLIMITED PARTNERSHIP
some partners only contribute capital to business, and do not take an active role in management they are liable only for the amount of money they initially invested in the business, and are known as limited partners however, at least one partner must have unlimited liability he is know as the general or unlimited partner
LIMITED COMPANIES
is formed by a minimum of two shareholders who have shares
any profits made by the company are divided among the shareholders in proportion to the amount they have invested and these payment are called dividends
there are two types of limited company
PRIVATE LIMITED COMPANIES
 they must have Ltd after their name
 they cannot be quoted on the Stock Excange
 their shares can only be sold with agreement of all shareholders
PUBBLIC LIMITED COMPANIES
 they must have Plc after their name
 they can be quoted on the Stock Excange
 their shares can be sold with no restriction to the general public
companies have different ways that they can expand
 the cost involved
 the availability of resource
 the desired speed of entry into new market
 the firm’s expertise
 the flexibility required
 the profit objectives
companies have different ways that they can expand
 franchising
 licensing
 joint venture
 cooperatives
 holding company
 multinational
FRANCHISING
business strategy agreement between franchisor and franchisee
FRANCHISOR
 gives the franchisee
 right to use the brand
 right to sell its product
 shops ready with furniture, equipment
 training
FRANCHISEE
 must give the franchisor a percentage of the profits and doesn’t need to spend money on advertising
LICENSING
company can’t export its products directly and this company can decide to sell the right to use its brand name to a manufacturer in a foreign country
LICENSOR
the company that give this right
LICENSEE
the company that receive this right
JOINT VENTURE
is a business formed by two or more companies which invest some capital in the venture: the costs and profits are shared in agreed proportions between the companies
there are three types of joint ventures:
A VERTICAL JOINT VENTURE
involves two business forming a company, each one specialises in a different stage in the production of specific goods or services
A HORIZONTAL/LATERAL JOINT VENTURE
involves two business forming a company, but unlike a vertical joint venture, these two companies are involved in the same stage of production/distribution of the goods or services
A CONGLOMERATE JOINT VENTURE
involves two companies working together with completely different business activities and could arise if the demand for a company’s original product decreased and the company decide to invest its capital elsewhere
COOPERATIVE
cooperatives are business organisations where all employees have a vote
no one member can dominate
all members have limited liability
HOLDING COMPANIES
is a company that acquires control over another company – the subsidiary – by the purchasing 51% of its voting shares
will have majority control over the production and distribution of the company it has acquire
can diversify into other fields to obtain a stronger position in different sector
MULTINATIONAL
is a company which produces in more than one country but has its headquarters in just one
bigger companies invest in developing countries
Commercial Theory 2 ( Business Organisation