Management styles and cultures
I will gather my information from the Internet, books and through my chosen company. This may be done by written or verbal communication. I will use this information to compose a business report considering factors, such as objectives, organisation, structure, culture and communication channels. I will then examine how these factors interlink to affect how success for the business is. I will also examine how the quality assurance and control systems help the business increase he value of its products and services. The business I have chosen to study is Sony Corporation. Sectors
Private sector – When a business is in the private sector, its main aims are to survive and make a profit. This is because it is privately owned so it will not receive funding from the government. Examples of businesses in the private sector are Tesco, McDonalds and Woolworth’s. Public sector – When a business is in the public sector, it is funded by the government. This means that its main aim is to provide a service to the public. The government is funded through the public and businesses by taxes. Examples of businesses in the public sector are libraries, police and hospitals.
Voluntary sector – Businesses which are in the voluntary sector aim to make a profit. They will then give this profit to a charity. The public, businesses and the government fund them. They rely on this funding to allow them to make a profit. Examples are N. S. P. C. C, Oxfam and Red Cross. Sole traders are owned and controlled by one person. They often provide specialist services such as hairdressers. The advantages are that only small amounts of capital are needed to set the business up. As there is only one owner, he or she keeps complete control.
Also read about success factors of Woolworths
It is easy to run and set up. You are your own boss so you can run the business in your own way. Profits do not need sharing and decisions are quick because of the size of the business. The disadvantages of sole traders are they have unlimited liability so the owner is liable to loose all the money put into the business plus personal possessions. It causes a problem if the owner is ill, because the owner has no one to cover for him or her. The owner has long hours, few holidays and lack of ideas. There is limited capital available to the business so it has difficulty expanding.
Also the full responsibility is on the owner. They do not have economies of scale as the do not buy in bulk. Examples are hairdressers, newsagents and restaurants. Partnership Partnerships are easily formed. They are small businesses owned and controlled by between two and twenty partners. They draw up a deed of partnership setting out important details of the business such as capital, how the profits are shared, who invested how much money. This is to avoid disagreements between partners. The advantages of being in a partnership are that control can be divided between the partners.
There can be a division of labour so each partner has a specific role within the business. There is a share of the responsibility so if one partner is ill or on holiday the other partners can cover the role easily. More capital is available to the business because there is more than one person setting up the business so each partner can contribute. This makes it easier to expand. The disadvantages of being in a partnership are that the business has unlimited liability. This means the partners are liable to loose all the money they put into the business plus personal possessions.
There could be disputes between partners over how the run the business or how to spend profits. Partnerships are usually on a small scale, which makes it difficult to expand. Limited capital is available to the business because it cannot sell shares. The profits also have to be shared between partners. They do not have economies of scale, as they do not buy in bulk. Examples of partnerships are solicitors and accountants. Private Limited Company (Ltd) A private limited company is one, which sells shares to family, friends and employees only.
It has a separate legal existence as it can sue and be sued, own property in its own name and enter into contracts. The advantages of being a private limited company are that the business has limited liability. This means the owners and shareholders are limited to the amount of money they lose. They are only liable to lose the amount they put into the business. The business has a separate legal existence, which means it can sue and take legal action. There is greater continuity within the business, as it does not rely on one person running the whole business.
The business can sell shares to friends, family and employees that means there is more capital available to the business. There is separate ownership and control. It is easier to raise capital because it can use venture capitalists, selling assets and selling shares as sources of finance. The employees can specialise in specific areas at work, as there are likely to be more people employed. They benefit from economies of scale as they buy in bulk. The disadvantages of private limited companies are that they can be inefficient because of the size.
For example, communications between departments may be slow causing decisions to not take immediate effect. The business is under the public eye because to become a private limited company, it must fill out forms in order to be issued with the Certificate of Corporation, allowing it to trade. This also makes the business difficult to set up. It is difficult to make decisions as there is more than one owner and meetings must be arranged. They are also expensive. Examples of private limited companies are Kunick Ltd and Wall’s Ice Cream Limited.