Slides in this set
1.The Business Organisation
1.1 Expanding a Business
· Supplies benefit from additional orders and more large opportunities.
· Local Community will have more funds to invest and also recruitment opportunities.
· Government gets higher income tax and low unemployment.
· Employees get job security and receive greater rewards.
· Suppliers may be bullied by bigger firms.
· Business may not invest in community and switch production abroad.
· Government does not benefit if business relocates and expands abroad.
· Communication difficult in big businesses so employees may not feel informed.
· Employees may not feel part of the business and feel they don't count as individual.…read more
· Strike employees stop working
· Boycott Product stop buying their products
· Lobby Government get government to force business to change policies
· Complain complain to business. If strong argument stakeholders will succeed.
· Workers trade unions, negotiation.
· Consumers Consumer groups/websites to pressurise, check prices carefully.
· Suppliers Insist on reasonable prices, keep close watch on firms bank account.
· Government Government concerned if monopoly and this can be stopped.…read more
.....methods of expansion
· Expansion within the business.
· Business sells more products opens more branches.
· Slower type of growth but more manageable.
· Firms join together.
· A merger occurs where two or more firms joint together to form joint business
· A takeover occurs when one firm gains control of another and buys it up.…read more
1.2 Legal Structure for the Business
Private Limited Companies (Ltd)
· They do not sell shares to the public.
· They sell shares to family and friends.
Public Limited Companies (PLC)
· It can become a private limited company once it ha a share capital £50,000+.
· Sells shares on the stock market.
· Shares brought by public and financial institutions.
· Floatation occurs when Ltd decides to become a PLC.…read more
.....becoming a PLC from a Ltd
· They can sell a large amount of shares and raise a lot of capital.
· They are often in newspapers providing cheap publicity.
· More status and impress customers more than private companies.
· Investors willing to buy shares knowing they can easily sell them later.
· Bad publicity if the PLC makes a mistake the media are more like to cover it.
· A competitor may buy shares and then take control of the company.
· New investors may not agree with original investors.
· PLC regulated. Information has to be new and regular available to public.…read more