Summary: Key Takeaways
Business elements of an organization include Products and Services, Competition, Customers, Demographics, Technology, Culture, Processes, Safety and Security
Business structures can be Sole Proprietorships, Partnerships, Corporations, S Corporations, Limited Liability Companies
Businesses organization may include Franchising, Joint Ventures, Equity Partnerships, Subsidiaries, Foreign Subsidiaries
Organizational Restructuring involves eliminating layers of management, downsizing headcount and streamlining reporting relationships
Divestitures occur when a business disposes of a business unit or other investments
Off-shoring is used to lower operating costs and involves moving part of the organization outside the US
A Professional Employer Organization (PEO) is used to outsource employment
Shared services reduces overhead and redundancy among staff by condensing support functions into one unit serving the interests of the whole organization
A Center of Excellence is an internal division providing the organization subject matter experts from a centralized group
Contract manufacturers produce goods for other organizations. They are used to decrease production costs
A merger is the result of two organizations merging into one
An acquisition occurs when one organization purchases another for cash or stock. Acquisitions may be friendly or hostile
Organization charts graphically represent hierarchy of authority, division of labor, span of control and line and staff positions
A functional organization divides departments based upon the functional operation of each, aligning roles and responsibilities with specific areas of expertise or tasks.
Divisional organization structure separates by division or brand
Matrixed structure combine functional with divisional components
Horizontal structures reduce boundaries and encourage cross functional teams
Hollow organizational structures limit in-house functions and focus only on core competencies
Modular structures are made up of strategic business units, with each unit contributing a piece of the whole finished product
Virtual organizations are scattered across geographies and employees typically utilize technology to enable them to work as one unit
A corporation is a legal entity that has obligations to its stakeholders
A corporate governance policy guides the roles of the Board of Directors and senior executive management
A Board of Directors in an executive committee that supervises the activities of an organization
Employers are required to safeguard employees' whistle-blower rights under the Public Interest Disclosure Act (PIDA) in the United Kingdom, as an example.
Fiduciary responsibility requires a company and its leaders to make decisions supporting the overall fiscal viability of the company
A Board of Directors has both a duty of care and a duty of loyalty to the company
Corporate social responsibility seeks ways to protect the environment and the people in the communities the organization operates within
A code of Ethics establishes expected standards of behavior for the company and its employees
A mission statement describes the company’s purpose for existing in business
A vision statement describes an organizations purpose and goals futuristically
Values serve as a principle-based guide for how the company does business
Workplace practices are the policies, procedures, guidelines and culture providing a framework for the business environment
Strategy is a plan of action designed to achieve an overall company goal
Strategic planning involves analyzing data, developing objectives, implementing solutions, and monitoring progress
Risks encompass both internal and external factors that can impact an organization's financial objectives or security, but they also present opportunities for growth and innovation.
SWOT audits consider internal strengths and weaknesses along with external opportunities and threats
PEST analysis inv