1 / 27

Organisations

Organisations. 30/08/10. Small Businesses. We can tell a small business by: How many branches it has or if it has only one It employs less than 50 people It doesn’t make a big profit It doesn’t have a wide variety of products to sell or produce.

deepak
Download Presentation

Organisations

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Organisations 30/08/10

  2. Small Businesses • We can tell a small business by: • How many branches it has or if it has only one • It employs less than 50 people • It doesn’t make a big profit • It doesn’t have a wide variety of products to sell or produce. • They tend to be local businesses and sell their goods in the local area

  3. Show examples of local small businesses • Yell.com • Florist, hairdresser, corner shop • Put their name • Picture of what they do.

  4. Medium sized businesses • May have more than one branch – they may be seen in more than one place and may be national. • Employs up to and around 250 people • It makes fairly good profits • It has a variety of goods and services • It is quite well-known across the country

  5. Examples • Next • Bells • Barrs • Kwik Fit • BHS • SPAR

  6. Large Organisations • Large organisations employ more than 250 people and can employ hundreds of thousands of people • Known world wide • Branches across the world • They make very large profits • They produce a wide variety of goods or services • Sometimes they are known as multi-nationals

  7. Examples of Large organisations • Nike • Adidas • RBS • BP • McDonalds • Burger King • KFC • HSBC • Santander

  8. Types of Organisations • The businesses we have in the UK range from very small organisations to very large organisations. • Firstly we are going to look at small organisations

  9. Sole Traders • One person owns and controls these types of organisations. • This one person makes all the decisions about the business. • The owner will employ people to help with the work of the organisation. • Examples – local hairdresser, corner shop, local butcher, plumber

  10. Advantages • The sole trader is their own boss – job satisfaction • The sole trader makes all the decisions so runs the business the way they want to • Sole trader gets to keep all their profit • Easy to set up there are no legal requirements • Can be quite inexpensive to set up • Can develop their own ideas

  11. Disadvantages • No one to cover for the owner if they are sick or want to go on holiday. • No one to help make the decisions and bounce ideas off • Difficult for sole traders to raise money from bank loans as they are seen as a risk

  12. If the business makes a loss the sole trader has to cover this loss. • If the business goes bankrupt then the sole trader may have their personal possessions sold off to cover the debt – this is called UNLIMITED LIABILITY

  13. Partnerships (6/9/10) • A sole trader may decide to become a larger business by bringing in a partner or some businesses may start off as a partnership. • There is a minimum of 2 partners and a maximum of 20 with the exception of lawyers, dentists and architects.

  14. Advantages • More than one person to share the workload – helps with holidays, illness etc. • More ideas – as the partners can bounce ideas off each other • Some of the partners may be specialists in certain areas eg finance or marketing so they improve the business • More money in the business as each partner will have invested money

  15. Advantages cont • Partners will share the loss of the organisation – not just one person having to take all the loss.

  16. Disadvantages • Sharing in decision making might be difficult if partners have different ideas about how the company should progress. • Partnerships still have unlimited liability but they share the liability • Share the profits between them – if one partner has invested more than another they will get a bigger share of the profit. • Creating a partnership means creating a Deed of Partnership and so can be expensive as lawyers need to be brought in

  17. Partnerships cont • They have to draw up a Deed of Partnership detailing how much each partner puts in, their share of the profit etc. • If one partner invests more money than another they may get more profit. • If one partner wishes to leave the business has to be closed down and started again. • There may be a sleeping partner who invests money in the business but are not involved in the running of it.

  18. Private Limited Companies • Medium-sized organisations – Ltd Co in its name. These organisations have limited liability and the owners only lose how much money they invested in the business if it goes bust. The owners are called shareholders at least 2 shareholders. The shares are not sold on the stock market, the shares are usually owned by family members or the people who originally set up the company. If a shareholder wishes to sell their shares then the others have to agree to whom the shares are being sold to.

  19. Advantages • No unlimited liability • New shares in the company can be issued and so raise more money for the company. • Easier to get bank loans • Can bring in new shareholders if the company wants to grow • Shareholders may specialise in certain areas of the business eg finance and so this will help the company to improve

  20. Disadvantages • Can be expensive to set up – a Ltd Co has to register their company at Companies House – also legal procedures to go through • Not as easy to set up a Ltd Co • More difficult to make decisions as all the shareholders will have a vote on decisions

  21. Public Limited Companies Plcs • These are very large well-known organisations – have Plc after their name. Their shares are sold on the stock market, this gives them their title - they can be sold to the public. They can have thousands of shareholders. Each year they hold an AGM (Annual General Meeting), shareholders are invited to attend and put across their points of view about the organisation.

  22. Plcs cont • Shareholders vote on the Board of Directors at the AGM, then a Managing Director is voted on and takes responsibility for the running of the organisation.

  23. Advantages of Plcs • Shareholders have limited liability • Easy to raise finance as banks trust Plcs to be able to pay them back • Unlikely to be a start up business so they are more secure

  24. Disadvantages • Expensive to set up • Accounts have to be published, therefore everyone can see the organisation’s financial situation • Have to register with Companies House and go through a legal process • Organisation has to prove itself before its shares can be sold on the stock market

  25. Public Sector • Owned by the government on behalf of the public • Controlled by government ministers and trusts • Financed by taxation, government borrowing • Examples – National Health Service, Armed Forces, Education

  26. Private Sector • Owned by private individuals or groups of individuals • Controlled by owners/shareholders • Financed by bank loans, owners investments, new share issues • Examples – Next, Marks and Spencers, BP, local corner shops

  27. Voluntary Sector • Not really owned by anyone, set up by individuals who want to help others • Controlled by Trustees • Financed by donations from the public • Examples – Oxfam, Red Cross, British Heart Foundation etc

More Related