Please enable JavaScript.
Coggle requires JavaScript to display documents.
Business organisation - Coggle Diagram
Business organisation
Multinational Transnational/multinational cooperation sell goods and services in other countries and are controlled by a holding company
- Size can help to compete with other companies
- Lower production costs
- Extract materials to reduce transport costs
- Other companies relocate production to lower cost countries
Advange
- Jobs created
- Investiment in bulding and machinary
- Import reduced
- Taxes paid by multinational
Disadvange
- Jobs created unskilled
- Local companies may be forced out
- Don't use renewable resources
- Could have invluence goverment
- Local natural resouces are exploited
Limited companies
- Formed by shereholders (share in the companies) → receive part of profit → dividend
- Banckrupt→ shareolders only liable for his original invest
Private limited companies: may sell their shares to whom they know but cannot be listed on the stock exchange
Public limited companies: listed on stock exchange, shares sold to the public
How business grow
Many companies are looking for internal growth: more production, more purchases, more staff...
There is olso external grow
- Mergers: two business agree to join together
- Takeover: one business buy another business
- Acquisition: in when a company buys a part of another companies.
- Join ventures: each company invests capital and shares costs and profits, it is composed of two or more companies
Tipe of integration
- Horizontal integration: two companies whit the same product join together
- Vertical integration: when newspaper company buy a print company
- Conglomerate merger: two business with different product join together
Start up
- young company
- Financed by a small number of member or one individual
- They work on developing, testing and marketing idea
- Only a few achieve much notoriety
Microbusiness
- Operate in a very small area
- Less than ten people and low turnover
- Internet helps start a business by spending less on advertising and consulting
Coworking
- For people who are self-employed or working for different employers
- Shere one working enviroment
- The main idea is to share knowledge, ideas and experiences
- Is a creative environment
Parternship
- Business agreement → two or more people
- Partner → will contribute to the initial capital, share the responsability
Two tipes of partner
- Unlimited partnership: all members are liable for the debts of the other members
- the business fall: they can lose all their personal assets
- Limited partenrship: when the partner only contribute capital to the business.
- responsible only for the capital invested
Sole trade
- Only one ower → unlimited liability
- Complete control and keep all of profit
- Business fall → owner lose his personal assets
- Source of fiance are limited
- Owner take all decision but nobody helps his, only himselm
Co-operatives
- All member have vote
- All member help, shere profit equally and have limited liability
Franchising
- Introducing 1800, USA
- Franchisor → offer the franchisee the right to use his trade
- Benefit Franchisor: invest his capital in new shops, recives initial percentage
- Benefit franchisee: receive the shop forniture, marketing support, commercial advice, don't invest their capital in adversating campaings and have the own boss