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WEEK 3: Managing in Beyond Corporations (5 important factors (timing…
WEEK 3: Managing in Beyond Corporations
5 important factors
timing
Airbnb
rent out space on a home to strangers. ppl really need extra money so they can lent out to stranger
Uber:
people need drivers, & drivers need extra of money.
really look whether the consumer really ready to what you have to offer them
team/ execution
ideas
business model
funding
non incorporated organisations
sole proprietor
: sole person carrying out some form of business (cleaner, farmer)
advantage
low cost
exclusive decision making / independence
limited need for formal documentation
100 % access to profit
disadvantage
responsible for tasks
skills limited to owners, labour intensive
poor economic of scale
unlimited liability
partnership
: bt 2 or more up to 20 (lawyer, accountant)
advantage
greater capital. breath of skill & ability
100% access to profit & losses ( share equally bt partners
tasks divided bt partners
limited need for formal documentation
disadvantage
decisions by consultation
limited independence
risks associated need exit of partners
unlimited liability
maximising profit
limited liability
incorporated organisations
private
shares owes by private individual
not available on public
purchases shares =>
direct
approach by existing shareholders
(consent)
public
anyone can purchase share in
stock exchange
often a consequence of growth
private => public = FLOATED
advantage
limited liability
access to greater capital (easy to expand)
disadvantage
legal constraints & procedure (time consuming, $)
weak assets base . limited funding sources
investors not entitle to 100% of profits.
not for profit organisations
charities
provide product/ service for target group. not to extract profit.
profit = surplus, loss = deficits
tax exempt (sponsor to children vision, can claim back $
staff paid - market rate/ below market rate/ volunteer
government
funded through tax payer revenue
exists for tax payers benefit
supplies goods/services that cannot (unlikely) to be supplies by the private sector
public good ( defence/ transport)
merit good (health services, education)
not profit maximise but value maximise
each ministry, department, local authority given strict budget
increases in productivity (key to success)
organisation
specific
public pressure
the customers
suppliers
competitors
general (external)
technology
demographic
socialcultural
political legal
economic
global
stakeholders
internal / external group
affect/ is affected by the organisation's decision/ actions/ policies
can affect organisation outcome ( increase predictability of change)
specific environment
direct impact on management decisions & actions
directly relevant to the achievement of organisation's goals.
socially responsible management
face difficult tasks
how business should transacted
how organisation fit with environment
classical view (conventional)
socio-economic view (sustainable)