Private limited company
Cummins Inc, a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins serves its customers through more than 500 company-owned and independent distributor locations in 131 countries and territories.
With 23,700 employees worldwide, Cummins reported sales of $5.9 billion in 2002. Cummins has many worldwide locations across all the continents. This business is in the secondary sector as it manufactures goods and sells them on to tertiary businesses. I am researching the UK sector of Cummins. The UK sector is a private limited company. (Ltd).
Main features of ownership
Cummins is a private limited company (Ltd). Private limited companies are generally smaller than public limited companies. A limited company is a business, which is owned by shareholders and run by directors. Shareholders are people who have invested money in the company. In return for his they receive profits in the form of dividends. Directors control the management of the business. The directors usually own shares in the business. Shareholders will appoint directors to run the business. Below are the Cummins board of Directors these are the main people who run and manage the business.
Business aims and objectives are important to set, the business needs to know if the aims and objectives have been achieved and if the business is beating its competition. Cummins may decide to set an aim to improve its customer service. The aim will be monitored and checked to see if it is achieved. If Cummins are succeeding then the regular customers will keep returning so they know their customer service is a high quality. With the regular customers who keep buying and the high standards the profits will gradually increase. It is also important as the company is always looking forward and to its future. The future is always in a big businesses plan, as they need to keep their reputation up and keep bringing the latest technology out. To do this the employees and engineers will have to be creating new plans frequently to be on target to release the latest models.
Show how successful Cummins is in meeting these aims and objectives
Cummins needs to see if its aims and objectives are being met or not. Cummins can check this through profit or sales. If sales are on the increase then Cummins’ target of maximising sales has been achieved. But if Cummins fails that aim then they may be forced to release people from their jobs.1 Cummins is planning to shed 95 jobs at its heavy vehicle diesel engines factory in Darlington. This shows that Cummins has gone wrong in the past and has needed to release its employees. If Cummins has succeeded their aim they may expand and open more branches.2 Cummins Engine of the US is planning a 17m factory near Ramsgate in Kent to make power-generating sets, providing 300 jobs.
This shows that Cummins is looking towards its future as it is providing new jobs for a local community. Opening a new factory will also provide more profit for Cummins. All these things will help to expand the Cummins brand worldwide. Explain why the type of ownership is suited to Cummins Cummins is a worldwide business with a good reputation. The ownership of Cummins is very important in order to keep the business running. As Cummins is a Ltd, its ownership must be high on its agenda. As the ownership can determine how successful a business is.