Hundreds of shareholders
Swift transport is a Plc, which is a public limited company. This primarily means that sift transport is owned by a number of private individuals who are called the shareholders. The share holders owned shares in the company which is a certificate entitling the holder to dividends and shareholders rights in proportion to the number of shares owned. Basically the shareholder owns a stake in the company which they own, but the more shares you have, the more you own of the company and therefore meaning the more influence you have. Being a Plc and being in the private sector of the economy allows swift to sell its shares via the stock market.
This means that its shares are open to the public to buy and meaning that the company could have hundreds of shareholders. As the shareholder owns a stake in the company and therefore has certain rights. These rights are to be able to attend the annual general meeting, the right to vote on new directors, the right to take part in a vote of confidence in the chairman and the right to receive an annual report into the financial side of the business.
Also the shareholders receive a dividend, this is a share of the profits made by the company which is split accordingly to how much the holder owns. Plc’s have limited liability, this means that if the company was to make a loss or to go into liquidation the shareholders are not legally bonded to the debts the company owns but only loose the amount they paid for their shares. There are many advantages and disadvantages that a Plc has, as shown below:
The Advantages of a PLC as follows:
1. It is enabled to raise a lot of capital by advertising its shares on the stock exchange
2. It benefits from economies of scale such as bulk buying
3. It get borrow money easier as it is a large business and has security to offer.
4. Due to its size a PLC can easily specialize, such as setting up specialist departments.
The disadvantages of a PLC:
1. If they become too large they may suffer from red tape and be inefficient.
2. The ownership can change over night due the constant threat of being taken over by take over bids, launched by rival Ply on the stock exchange.
3. Their annual accounts are open to Public inspection and therefore don’t have much privacy.
4. A lot of money is spent giving info to the public.
5. As the ownership and control of the company are different, the director’s ideas may differ from the shareholders and arguments can occur.
6. A few shareholders who have a lot of the company’s shares between them may dominate the PLC.
7. The starting and formation of the company is complicated and expensive.
8. Easy to attract shareholders.
Swift Transport PLC organisation has a hierarchical internal structure. This means that the most important colleagues are at the top and the least are at the bottom. This can be shown in a pyramid (see organisation chart). There are a series of layers in the organisation. At the top of Swift Transport hierarchy is the managing director, this person is the most important in the organisation. Next in the hierarchy is the board of directors, one in each of the different departments: Finance, Human Resources, Operations, Marketing and Services.
The finance department is responsible for the bringing in and out put of money within the company. It carries out many activities such as: raising invoices and obtaining payment for goods or services supplied to customers, making sure that invoices from suppliers match the goods or services that were supplied to the organisation, dealing with payments to suppliers, paying staff, analysing the financial performance of the business, dealing with debts and providing financial information on performance to managers and shareholders.
The Human Resources department is extremely important as it deals with the people of the company. They recruit people who are right for the job that falls vacant within the business, it carries out training for old and new staff making sure that the employees have the knowledge and skills they need to the job to their best ability, grade jobs putting them in order of rank depending on the degree of responsibility involved, educational qualifications and skills needed to do it and arranging for sick leave and pay. Also it deals with employee relations such as staff problems or disputes including industrial relations and disciplinary and grievance procedures and finally it provides specialist advice and assistance to senior staff.
The Marketing Department generates the income by selling and offering products and services to customers. The way it sells its products or services in a variety of ways. Either it sells its products or services directly to other businesses using the company’s sales force to develop contracts and make sales, directly to the public using advertising or mail shots. The marketing department does many things to ensure that the customer is satisfied with the product or service; they do this through public relations, advertising, market research, special promotions and piloting new products or services.
The operations department is involved in distributing the service and getting it there via logistics. They have to get the drivers and the goods that they are transporting to the right place and at the right time. The finish service depends on the efficiency of this department. The Services department is responsible for getting the right people for the right jobs. It then has to have people as in drivers ready to respond to calls from the public and also has the right sort of vehicles for the situation. Also they are responsible for the maintenance of the vehicles and the upgrading of voiceless. This department is just like production but instead of manufacturing a product, a service is given.
Next in the hierarchy is the senior management, in total there are four, the senior managers. They are in marketing, human resources, operations dept, in the finance dept and they are in Service department. Next in the hierarchy are the section managers, which are in operations and in Services. Next in the hierarchy are unit managers, there are in operations and in services. Next in the hierarchy there are the supervisors in Operations and in the services dept and lastly in the hierarchy there are operatives in operations, in human resources, finance and in marketing.
The SPAN of CONTROL in Swift Transport is the managing director controls the board of directors; the board of directors controls the senior managers and so on. Span of control is the number of workers under direct control by one person. Also the managing director has a LINE FUNCTION with the board of directors, and the board of directors has a line function with the managing director and the senior management and so on. The line function is the direct contact with those who are higher or lower than you in the same area of business are. There is a STAFF FUNCTION between the human resources department and the people of the firm. The staff function is the working with all staff in the organisation.