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Week 3 Introduction Into Management - Coggle Diagram
Week 3 Introduction Into Management
Non-for-profit
charities
Provide a product/service for a target group –
not to extract profit
staffing;
paid staff- markets rates
paid staff -below market rates
volunteers ( go unpaid )
Profit = surplus; losses = deficits
no requirements to pay taxes
therefore operate at a lower cost
government organisations
funded through taxpayers revenue but exist in order to satisfy taxpayers
use the taxpayers income to provide goods and services that would otherwise not be supplied
Public goods (e.g. defence, transport
infrastructure)
Merit goods (health services, education)
characteristics of non profit:
Require revenue
▪ Incur expenses
▪ Consists of people
▪ Produce a product or service
▪ Strive to satisfy consumers
▪ Must be ‘managed’
Profit
Non-incorporated organisations
Orgs that are not recognised on their own as a 'legal entity'
Two types
Sole proprietor
Partnership
Advantages and disadvantages
Incorporated Organisations
Types
Public Ltd
Anyone may purchase shares through stock exchange
Private Ltd
Shares owned by specific individuals
Advantages
Limited Liability, Access to greater capital
Disadvantages
Business Structure
Dependent on size
Small, Medium, Large
Hard to determine (judge)
ABS (Australian Bureau of statistics) measures size by no. of workers
<20 = small or <1000 if it is a manufacturing business
Medium = 20-199
Large = >200
Can be measured in different ways
No. of employees
Amount of turnover
Amount of money generated
amount of borrowings
SME's (small medium enterprises
COSBOA (council of small business of Australia) statistics
small business account for 30% of nations economy
Structures
Why business exists
Industries types
Primary
Changing natural resources to primary products
e.g. mining
Secondary
manufacturing
Changing raw material produced by primary industries into usable commodities
Tertiary
service sector
Don't make g&s --> banking,transport, retail
Quaternary
Knowledge sector
education, IT, research fields
Quinary
highly specialised knowledge
Medical research, high lvl management