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Types of organisations - Coggle Diagram

- - - - Sole traders
        
        Sole traders are individuals who own and run their businesses alone. There is little legal distinction between the individual and their business, and this form of organisation is therefore relatively easy to set up
      - Partnerships
        
        Partnerships involve the creation of a business by two or more individuals called partners. Partnerships are governed by partnership agreements, which define the ownership interests of the different partners, as well as how major decisions will be made by the partnership.
      - Companies/corporations
        
        corprations
        
        Corporations are the sort of organisation many of us think of when we think of business. Corporations are generally large organisations owned by many individuals and groups of individuals, known as shareholders
        
        When businesses are incorporated, they become legal entities separate from their shareholders. These shareholders enjoy limited liability. This means that if the corporation performs badly and incurs losses, its owners cannot lose more than the funds that they invested in the business.
        
        Limited liability is a powerful tool that allows corporations to access financing more easily than sole traders and partnerships. Investors can buy shares of the company in the hope of making a good return without exposing themselves to undue risk
        
        public
        
        Private limited companies who wish to access large amounts of capital in order to grow may decide to 'go publi c'
        
        Public limited companies therefore have greater access to capital than do private companies. However, in exchange, they must publish their financial accounts, making this information available to the public, including potential competitors.
        
        public limited companies can be 'taken over' by other companies, sometimes beca use they have been poorly managed. We will learn about takeovers in section 1.6.3.
        
        private
        
        Private limited companies are owned by a relatively small number of shareholders, who may find it difficult to sell their shares if they wish to 'cash out' and use the funds for another purpose.
  - - - Charities
        
        The prevention and relief of poverty;
        
        The advancement of education, religion, or health;
        
        The advancement of citizenship and community development;
        
        The advancement of the arts, culture, heritage, science and sport;
        
        The advancement of human rights, conflict resolution, and social harmony between diverse groups;
        
        The advancement of animal welfare and environmental protection;
        
        Help to those in need due to their age, health, disability, or financial circumstances;
        
        Support of the military, police, fire, ambulance and rescue services;
        
        Any other charitable purpose.
      - NGOS
        
        Non-profit organisation
        
        Not controlled by a government
        
        Not a political party
        
        Not narrowly focused on human rights
        
        Not involved in criminal activities
- - - - A vision statement is a written expression of an organisation’s long-term ambitions that it hopes to realise in the future. It is often an optimistic view of what the organisation hopes to accomplish.
    - - A mission statement is a written expression of an organisation’s purpose and reason for being. The mission may be seen as a means of accomplishing the organisation’s vision.
  - - - Aims are generally considered to be broad and general goals that the organisation would like to accomplish. They may be stated in somewhat vague and optimistic language and involve the medium to long term. Objectives are more concrete and may involve a shorter time horizon. Objectives are often measurable and time-specific, making it easy to evaluate whether they have been attained or not.
        
        Smart objectives
        
        Specific The objective should be clear and focused. It must be specified which customers and which circumstances are concerned by the objective.
        
        Measurable Quantitative objectives are easier to manage and fulfill. 'Less than five minutes' is measurable.
        
        Attainable or achievable The target should not be too difficult or it will demotivate employees. Resources to meet the target must be available. There is no point in setting a maximum waiting time of 2 minutes in an understaffed department. This will just frustrate everyone involved.
        
        Relevant An objective assigned to an individual employee should relate to his job, so that it is within his control to meet it. Managers may have the authority to devise processes to reduce waiting times, while employees may not.
        
        Time-specific The time horizon for accomplishing the objective should be defined. A time frame should be set, such as 'within two months'.
    - - Business strategies usually refer to approaches that concern major decisions and involve senior manageme nt
        
        Decided by senior management
        
        Involve the medium to long term
        
        May be risky
        
        A large investment may be required
        
        Not easily reversed
    - - Strategies are often contrasted with tactics, which are similar to strategies in that they enable an organisation to attain its ends. Tactics, however, usually involve less important decisions within a shorter timeframe, and they therefore may be devised by less senior managers. Making a tactical error may be costly, but is not likely to lead to the demise of the organisation.
        
        Decided by middle and line management
        
        Involve the short to medium term
        
        Risk is comparatively low
        
        Likely to require fewer resources
        
        Easier to change or modify
  - - - sTRENgTH ANd wEAkNess
        
        Strengths:Hr:Highly trained, skilled, and educated staff. Loyal employees who work well as a team.FINANCE: Strong finances, adequate capital for running and expanding the business, good relations with banks, strong growth of sales and profits.MARKETING:Strong brands, loyal customers, unique products or services.OPPRATION:Modern facilities, efficient, low cost production, high quality output. weakness:hr:Poor management, unskilled, unqualified, or unmotivated employees, tensions between employees.FINANCE:Inadequate financing, day-to-day cash flow problems that make it difficult to continue operations and insure investment, declining revenues and profitability.MARKETING:Low brand awareness and brand loyalty, undifferentiated products.OPPRATIONS:Outdated facilities, inefficient, high-cost production, poor quality prod ucts and services.
    - - OPPORTUNITIES THERATS
        
        OPP
        
        Growing market
        
        Increasing consumer spending
        
        New technologies
        
        Availability of skilled labour
        
        Low-cost financing
        
        tHR
        
        Economic stagnation or recession that reduces spending by consumers and other businesses;
        
        Higher costs of inputs;
        
        Existing or potential competitors;
        
        Unfavourable government regulations or taxation;
        
        Lack of availability of skilled labour;
        
        Changing consumer tastes.