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Unit 1 - Business organization and environment - Coggle Diagram

- - - - HR, marketing, operations, finance
    - - land, labor, enterprise, capital
    - - revenue, consumer goods, consumer service, capital goods
- - - - Arbitration: hiring an independent party to listen to both sides and decide on a happy medium for both. While this is a more "fair" solution, neither party will get exactly what they want.
      - WORKER PARTICIPATION when labor is consulted and actively participates in management decisions, such as worker councils. While this motivates employees and makes everyone work more effectively, some decisions are truly up to management to make, and not all details can be disclosed to labor.
      - PROFIT-SHARING/SHARE OWNERSHIP SCHEMES bonus --> part of the profits or shares are given to labor. This is an excellent incentive, as labor will feel very pleased to be rewarded above their contract and will make them feel part of the results, but this results in less profits for the owners.
- - - - benefits easier to manage/make decisions, more personalized, adapt quickly, simpler communication between costumer and staff, less costs.
      - drawbacks more vulnerable in terms of competition and changes, less access to capital, less diversified/ skilled personal.
    - - benefits stable when it comes to changes/crises, benefits from bulk pricing, large amount of income, affords specialists and high-quality machinery, more resources to finance.
      - drawbacks less personalized, more bureaucracy, harder to control it, higher costs, slower communication, decision-making, adapt hardly for new environments.
  - - - Conglomerate diversification: when you buy out a completely different business that has, therefore, a different supply chain than yours.
      - Backward vertical: you buy a business that is behind you in the supply chain, a.k.a your supplier
      - Horizontal: when you buy out one of your competitors, that is, someone that is in the same sector as you.
      - Vertical forward growth: is an external type of growth in which you buy a business that is in front of you in the supply chain, a.k.a your consumer.