<Chapter 1.2> Types of organisation
A Coggle Diagram about Franshises (Advantages, Disadvantages, KEY TERMS, Sell the right to other businesses to use their company name, logo, slogans and trademarks, i.e. McDonald's, Starbucks and 7-Eleven, the purchasing business, In return for the use of the franchies, the franchisee has to pay a certain percentage of its sales revenue (known as a royalty payment) to the franchisor. and Major advantage: low failure rate, largely due to interrelated benefits to both franchisor and franchisee
According to a recent CNN report, the failure rate of Subway and Dunkin Donuts are only 7% and 8% respectively
Once established, a business development manager provides ongoing support and advice to the franchisee.), Multinationals (Disadvantages, Advantages, Various factors that have made it easier for businesses to operate on a global scale, Organisation that operates in two or more countries, e.g. The Body Shop has more than 2,4000 stores and operates in over 60 countries and As businesses grow, they might find that their domestic operation are inadequate.
e.g. it might be cheaper + more efficient to switch production to another country.), Factors which influence the choice of type of organisation, Key Terms (Franchises are a form of business organisation that has permission to use the name, logo and business mode of another organisation. Examples include McDonald's Starbucks and 7-Eleven., Limited liability companies are businesses owned by shareholders who enjoy the security of having limited liability. They come in two forms: private limited companies (Ltd.) and public limited companies (PLC)., Multinationals are business organisations that operate in two or more countries. Examples include Nike, Apple, Marks&Spencer, HSBC, Sony and BMW., Partnerships are owned by between two to twenty owners (known as 'partners'). They pool funds and take risks together, but have to share profits between all owners., Sole trader is a person who owns and runs a business as single proprietor. S/he takes all the risks but keeps any profit made by the business. and Stakeholders are individuals or organisations that have a direct interest in the operations of a business, e.g. employees, managers, shareholders and the government.), Limited liability companies, Sole traders (Advantages, Disadvantages and A sole proprietorship is a business owned by a single person (known as the sole trader), who employ as many people as needed), Partnerships (Advantages, A partnership is a business organisation owned by more than one person and Disadvantages), Differing objectives of business organisations and The legal forms of business organisation