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Managing in and beyond Corporations (5 Different Industries (Primary…
Managing in and beyond Corporations
Non-incorporated organisations
for-profit
sole trader
advantages
low cost
no legally required setting up procedures
disadvantages
unlimited liability
partnerships
greater capital
limited liabiliity
many legal constraints(dis)
Incorporated organisations
Private Limited
Shares owned by private individuals
Not available to public
Can only be directly purchased from the existing shareholders
Public Limited
Anyone can purchase shares through a stock exchange
Being "floated"
Advantages
Limited liability
Access to greater capital
Disadvantages
Legal constraints
Limited funding source due to the weak asset base
Investors do not earn 100% of profits
Socially Responsible of Management in Organisations
the difficult task:how their organisation ‘fits’ with its environment
Two views
Classical (conventional)
act for profit-maximisation
Socio-economic (Sustainable)
beyond profit-maximisation
look after employee interests, environmental/ecological sustainability
Society developed the rule: how business should be transacted and how organisations should be managed
external environment, stakeholders
definition: A person, group or organization that has interest or concern in an organization.
Stakeholders can affect or be affected by the organization's actions, objectives and policy
An external environment is composed of all the outside factors or influences that impact the operation of business.
5 Different Industries
Primary
Changing natural resources into primary products
Agriculture, aquaculture, forestry, mining etc.
Secondary
Changes raw materials into a commodity and creates useful products
Manufacturing
Tertiary
Provides a service (does not produce a good)
transportation, Hairdressing etc.
Quarternary
Fields relating to knowledge
Educaation
Quinary
Requires highly speccialised knowledge
Surgeons, Dentist etc.
Business Growth Cycle
Definition: 'the progression of a business and its phases over time'
<-- The Business Growth Cycle is most commonly divided into 5 stages
Shake-out/Stabilisation
Maturity
Growth
Decline
Launch/Introduction/Establishment
Commonly measured against Revenue/Sales vs. Time
'Wave-like' cycle