Please enable JavaScript.

Coggle requires JavaScript to display documents.

Week 3 (Organisation (Not for Profit (Charities (Objective to provide a…

- - - - Public Limited
        
        unlimited shares sold on the ASX
        
        Advantages
        
        limited liability
        
        unlimited shares offer access to greater capital
        
        Disadvantages
        
        highly regulated by the government
        
        more shares sold result in a longer decision making process
        
        legal constraints are time consuming and costly
        
        investors not entitled to 100% of profits
        
        Result of growth of org.
        
        "Floated" is the change from private to public
      - Private Limited
        
        Shares owned privately
        
        Asked/invited to own shares
        
        Disadvantages
        
        Not fully directing decision-making
        
        not entitled to 100% of profits
        
        strict legal regulations
        
        Advantages
        
        limited liability
        
        greater capital access
      - Limited Liability
        
        Why the need for limited liability?
        
        To grow greater investment
        
        To entice investors, personal liability must be limited
        
        How does Limited Liability work?
        
        Value of business broken into 'shares'
        
        Only affects org. assets
        
        Org. failure limited to org. assets
      - Management of IO
        
        Chairsperson
        
        CEO
        
        Company Secretary
        
        Executive/non-executive directors
        
        Shareholders
        
        Mid-management & employees
    - - Sole proprietor
        
        Advantages
        
        Low Cost
        
        100% access to profit
        
        Exclusive decision making
        
        Limited need for formal documentation
        
        Disadvantages
        
        Unlimited Liability
        
        Poor economies of scale
        
        Skills limited
        
        Sole responsibility
      - Unlimited Liability
        
        Extends to personal assets
      - Partnership
        
        Advantages
        
        breadth of skills
        
        100% access to profits
        
        tasks divided between partners
        
        Disadvantages
        
        limited independence
        
        decisions by consultation
        
        risk with exit
        
        unlimited liability
        
        2 or more people
        
        profit maximisation
  - - - Objective to provide a product/service
      - Tax exempt
      - Provide a product service for a target group
      - Operate on low cost base that for-profit
    - - funded through tax payer revenue
        
        given a budget based on tax payer revenue
      - supplies goods/services
        
        public goods
        
        transport/infrastructure
        
        merit goods
        
        health service
      - benefits to tax payers
      - aim for value maximisation not profit maximisation
      - Success= increase in productivity
    - - require revenue
      - incur expenses
      - strive to satisfy customers
      - Consists of people
      - Must be 'managed'
- - - - If the RBA changes the OCR then banks may be forced to change their interest rates people pay (e.g for bank loans)
    - - Cafes had to abide by new laws regarding smoking e.g. no smoking
    - - Ageing population places greater demand for aged care facilities and staff (e.g. China)
    - - Self-driving cars have placed increased pressure on car manufacturers to keep up and create their own self driving cars
    - - Increased pressure on businesses (e.g. car - Ford) to be socially culturally responsible (e.g. make environmentally friendly cars)
    - - Different international laws (e.g. on the transportation of animals)
  - - - Customers
        
        Absorbs organizations output
        
        Represent potential uncertainty
        
        'Lifeblood' of organizations
      - Competitors
        
        Competitors force organizational effectiveness
        
        Must be prepared to respond
        
        Coca Cola vs. Pepsi etc.
      - Public Pressure Groups
        
        Influences organizations to make decisions
        
        Eg. RSPCA
      - Suppliers
        
        Steady flow of inputs
        
        Unavailability and delay reduce effectiveness
        
        E.g. Nestle (?)
    - - External forces that directly impact managers' decisions & actions
      - Directly relevant to organistions' goals
- - - - Adani Mining
      - Not expected to look beyond profit-maximisation
      - Organisations who are restricted to profit-maximising ideals
      - Conventional
  - - - Lush