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Introduction to business Third/ Fourth meeting

OutlinesInternal organization of the firmBusiness planEntrepreneurship

Слайды и текст этой презентации

Слайд 1Introduction to business Third/Fourth meeting
Łukasz Konopielko

Introduction to business  Third/Fourth meetingŁukasz Konopielko

Слайд 2Outlines
Internal organization of the firm
Business plan
Entrepreneurship

OutlinesInternal organization of the firmBusiness planEntrepreneurship

Слайд 3Structure
The structure of an organization refers to the way in

which its activities are grouped or arranged. It is a

hierarchical concept of subordination of entities (employees).
It depend on:
Size and number of employees
Whether it is in the manufacturing or service sector
Whether it is a local, national or international organization
The type of work with which it is involved
StructureThe structure of an organization refers to the way in which its activities are grouped or arranged.

Слайд 4Structure
The structure of the firm is usually shown on an

organization chart. It usually provides us with the job titles

of employees (or sections) and their relationship with each other.
Various forms in practice. There is no right or wrong structure, provided that it reflect the needs of company and allows to communicate and work effectively and achieve business objectives.
StructureThe structure of the firm is usually shown on an organization chart. It usually provides us with

Слайд 5Managerial structure
Chairman of the Board – most responsible for firm’s

strategic policies
Compensation Committee – nonemployee directors setting the remuneration package

for management
Chief Executive Officer (CEO) – head of management team
Chief Financial Officer (CFO) – responsible for: accounting, raising capital, evaluation of effectiveness of operation and investment.
Chief Operating Officer (COO) – production and often sales.

Managerial structureChairman of the Board – most responsible for firm’s strategic policiesCompensation Committee – nonemployee directors setting

Слайд 6U (unitary)-form

U (unitary)-form

Слайд 7U-form
One in which the central organization of the the firm

(CEO or management board) is responsible both for the firm’s

day-to-day operations and for formulating its business strategy.
Communication relies on the central part.
Often inefficient as problems with bounded rationality – limits in ability to absorb and process information by management.

U-formOne in which the central organization of the the firm (CEO or management board) is responsible both

Слайд 8M-form

M-form

Слайд 9M-form
One in which the business is organized into separate departments,

such that responsibility for the day-to-day management is separated from

the formulation of business’s strategic plan.
Medium to large firms
Advantages:
Reduced lenght of information flows
CEO can concentrate on overall planning
Enhanced level of control – each divison may become „mini-firm” competing with other – when introducing properly designed budgeting and controlling procedures
M-formOne in which the business is organized into separate departments, such that responsibility for the day-to-day management

Слайд 10Flat organisation
One in which technology enables senior managers to communicate

directly with those lower in the organizational struture. Middle managers

are bypassed.
Problems similar as with U-form:
Communication cost (now lower)
Misinterpretation of information or decisions
Managers may focus on their own departmental goals rather than overall goals of the company.

Flat organisationOne in which technology enables senior managers to communicate directly with those lower in the organizational

Слайд 11Mutlinationals
H-form (or holding company) – variation of M-structure. Parent company

holds interest in a number of other companies or subsidiaries.

These subsidiaries can in turn control other companies.
Integrated international enterprise – international company pursues a single business strategy – coordinates activities of various other subsidiaries accros different countries.
MutlinationalsH-form (or holding company) – variation of M-structure. Parent company holds interest in a number of other

Слайд 13Transnational associations
A form of business in which the subsidiaries (often

with little investment from the parent company) are contractually bound

to the parent company to provide output to or receive inputs from other subsidiaries.
Global sourcing – company uses production sites in different part of the world to provide particular component for a final product.
Transnational associationsA form of business in which the subsidiaries (often with little investment from the parent company)

Слайд 14Businessplan
Wikipedia: A business plan is a formal statement of a

set of business goals, the reasons why they are believed

attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals.
No strict rules on how to organise/design
However, some issues are indispensable!

BusinessplanWikipedia: A business plan is a formal statement of a set of business goals, the reasons why

Слайд 15What must to be included?
Goals/vision
Market/competition
Product
Marketing/sales
Operations
Financials
Often opening page: executive summary

What must to be included?Goals/visionMarket/competitionProductMarketing/salesOperationsFinancialsOften opening page: executive summary

Слайд 16Paper for next week!!
Find an example of financial statements of

any company. Describe briefly this company. Present most important figures

and explain how these relate to selected company’s activities, sector in which it operates and its performance.
Paper for next week!!Find an example of financial statements of any company. Describe briefly this company. Present

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