IB管理学笔记

IB管理学笔记

Module1:IntroductiontoOrganizations1-1TypesofOrganizationsSoletradersFeatures1.OwnedbyjustonepersonControl1・OwnerhasfullcontroloverdecisionmakingandreceivesalltheprofitsAdvantages1•Easytosetupbusiness2.Completecontrol3.Ownerkeepalltheprofit-butitmaynotbemuch4.Personalservice-cangettoknowcustomersverywell5.Privacy-notrequiredtopublishfinancialaccountsDisadvantages1.Unlimitedliability2.Shortageoftlnance・maypreventexpansion3.Pressureofresponsibility4.Lackofexpertise5.Lackofcontinuity-ownerdies,businessdiesPartnershipsFeatures1■Jointownershipofmorethanoneowner2.Eachowner:•ocontributesfinancially•osharesdecision-making•osharesprofits3.Unlimitedliability4.Sharedworkloadsandprofits(notnecessarilyequally)5.Shareddecision-makingAdvantages1•Extrafinancing2.Additionalskills3・SharedworkloadDisadvantages1.Unlimitedliability2.Sharedprofits3・Disagreementsmayleadtoconflict4.StillshortageofcapitalCompanies/CorporationsGeneralfeatures1.needtorcgistcrSctup:withRegistrarOfCompanies(ROC)2.separatelegalcntityThcbusinessisaseparatelegalcntilyfromtheowners3.Limitedliability4.Capitalinvestedthroughpurchaseofshares5.Shareholders/Qwners\n1.BoardofDirectorsDaytodayoperationsrunbywhichareelectedbytheShareholdersControl1.Shareholderssharedecision-making2.PowerdependsonamountofsharesPrivateLimitedCompanies(LTD)Features1.Sharecannotbetradedinstockmarket2.AllshareholdersmustagreeontransferofsharesAdvantages1.Limitedliability2.Greatersourceoffinance3.Continuity-ownerdies,businesslivesonDisadvantages1・Legalrequirements2.Lossofprivacy一financialstatementsneedtobepublishedPublicLimitedCompanies(PLC)Features1.Thesharescanbetradedpublicly2.SharesareadvertisedandlistedinStockMarketAdvantages1.Greatersourcesoffinance2.Expansion-hugecapital3・Credibi1ity(RelativetransparencyofFinancials)-easiertogetcredit,bankloans,etc.Disadvantages1.Highcosts一IPO(InitialPublicOffering)canbeveryexpensive2.Potentialdangeroflosingcontrol3.Diseconomyofscale(thecompanygetsbigger,itwilllackflexibility,beuraocracy,etc)CooperativesFeatures1.Businessownedandcontrolledequallybythosewhousesitsservicesorworkatit2.Earningsaresharedasdividends・sharedaccordingtoparticipation3.MembershipandownershipisopeninpublicFranchisesFeatures1.authorizeeFranchisorsprovenmethodsandtrademarksoftheirbusinesstofranchisees2.Franchiseesneedtopayfeeorpercentageofsales3.ReducedriskoffailureTypicalfranchisepackageusuallyincludes:?useofbrandname&image?advertisingcampaigns?materialsandequipments?training?exclusiveareatosellControl?Ownernotentirelyhisownboss?Franchisormakeskeydecisionsaboutlocation,marketing,etc.\nAdvantages1.Greaterchanceofsuccess2.Reputationandcustomerloyalty3.ExperienceandknowledgeDisadvantages1.Financialcosts,initialfee,royaltypayments2.Lossofcontrol/independence\n1.Dependentonthesuccessofthefranchisor\nCharitiesAtrust,companyorincorporatedassociationestablishesforcharitablepurposesonly.Features?Non-for-profitorganization?Sometimesreferredtoasfoundations.?Generallyenjoytaxexemptions&donorsgenerallyenjoytaxrelief?•Normallysubjectedtosomeformofgovernmentsupervisionto:preventcharityfraudallowthegovernmenttoinfluencethescopeandagendaofcharitiesNon-GovernmentalOrzanization(NGO)Aprivateinstitutionthatisindependentofthegovernment.Characteristics:?Usuallyusepublicrelationstomeettheirgoals.?PeopleworkingforNGOsarevolunteersandpaidstaff・Paidstaffstypicallyreceivelowerpaythaninothersectors.?Volunteersarenotpurelyaltruistic.Theymayhavetheirindividualinterestssuchasskills,experienceandcontacts.?Sourcesoffundsincludemembershipfees,saleofgoodsandservices,privatedonationsandgrantsfrominternationalinstitutionsorgovernment.?NGOsarenotlegalentitiesunderinternationallaw(excepttheRedCross).PrivatesectorandpublicsectorPrivatesector1・Businessororganizationisownedbyindividualsorshareholders2.Mainobjective:makeprofitFortheprivatesector,profitisameasureofsuccessandamotivatorforfurtherinvestment.PublicsectorOrganizationsinpublicsectorareownedorfundedbytheGovernment.Publicorganizationcanbeconvertedtoaprivateorganization,andsuchprocessisknownasprivatization.Publicsectortendstobedrivenbytheneedtoprovideaservice-perhapsatthelowestcosts.Objectivesofapublicsector:?lesstoacliieveprofit?moretoprovidevalue-for-moneyservicesthatmeetstheneedsofcommunities1-2GrowthandEvolutionWhyorganizationsgrow?Increasedsalesandprofits?Greatermarketshare?Securityandsurvival?economyofscale(e..g.reducedaveragecost,sharedresources)HoworganisationsgrowAHLterna】growthDefinitionExpandscaleofproductiontomeetincreaseddemandToexpandthescaleofproduction,abusinessmighthiremoreemployees,investinnewlargermachineries,expanditsmarketdistribution,etc.Example:McDonald'sgrowsbyexpandingoperationsintonewcountriesandincreasesitsmarketshare・Mergers—demergegandtakeover(externalgrowth)Acquisitionortakeover?BuyoverothercompaniesAdvantages:?•Immediateexpansion,acquiringofskillsandworkforceovernight.Disadvantages:?Costly?Mayincreaseburdenoftheparentcompany\nMergersMergerisatermusedwhentwocompaniesjointoformonenewcompanyvoluntarily(thedifferencewithtakeoveristhattakeovermaynotbevoluntary).Whycompaniesmerge??Makesavingsfrombeingbigger?Competewithlargercorporationsoreliminatecompetition?Spreadproductionoverlargerrangeofproducts?TakeadvantageofeconomiesofscaleeconomicsofscaleDemergersAdemergeriswhenafirmdividesintotwoormorefirmsorsellsoffsomeofitssubsidiaries.Itmaybeawayoutoffailedmergerorovergrowth.Globalconglomerates&NetworksGlobalconglomeratesAconglomerateisalargecompanythatconsistsofseeminglyunrelatedbusinesssections.Advantages:?Allowcapitaltobeallocatedinamoreefficientway?Createsynergiesbetweencompanies•Opportunitytogrowineachunrelatedmarket・Disadvantages:?Lackoffocus?InabilitytomanageunrelatedbusinessesequallywellNetworksNetworksrefertoarrangementsbetweenindependentorganizationstoworktogether.Therearegenerally2typesofnetworks:1.withanorganizationalsuperstructure(example,becomeamemberoftheXXXnetwork).Inthistype,membersbenefitfromthemarketingofthesuperstructureanditspossibilitiesforreferrals.2.independentlyownedentitiesthatofferservicesofanotherorganization-e・g・"affiliate"radioorTVstationsTherecanbearrangementsinnetworkstoliterallyfunctiontogether.•closetoorisastrategicallianceTheStarAllianceintheairlineindustry,forexample,wherefivemajorairlinesformedanalliancesothatallfiveenjoyedthebenefitofprovidingservicetobasicallyallmajorairportsintheworldwithouthaving,individually,tohaveflights,etc.toeach•functioningrelationshipclosertotheconnotationofthewordnetworkSmallshippingcompanies,whichoftendeliverngloballyMbutactuallydeliverinalimitedgeographicregionandanothercompanyinthenetworkdeliversanyshipmentsbeyondtheoriginalshippingcompany'sgeographicterritory.Networkscanhaveeitherlegalbasisorexistmerelyasamatterorpractice・SubsidiariesJointventures,multinationalcompanies,andholdingcompaniesSubsidiariesAsubsidiaryisacompanythatisboughtoverorcontrolledbyanothercompany.Thecompanythatcontrolsthesubsidiarywith51%ormoresharesiscalledtheparentcompany.Whenacompanyhasseveralsubsidiariesitiscalledagroup.Animportantfactaboutsubsidiariesisthattheyareadifferentlegalentitythantheparentcompanywhichmeansithasdifferenttaxationsandregulations,whichcanbeusedtobenefittheparentcompany・Advantages:?Spreadrisks・parentcompanyisnotliableforthesubsidiary?Lossesofsubsidiarydonotaffecttheparentcompany(becauseofdifferentlegalentity)?Widenterritoryorplaceofdistribution-consumersalwaysseethesamecompanyeverywhere\nDisadvantages:?Canbecostly-otherinvestmentsmightbeabetteroption?MoreadministrativeworkrequiredtokeeptwoormorecompaniesontrackJointventuresAjointventureiswhenindividuals,groupsofindividuals,corporations,limitedcompaniesorpartnershipsformashorttermpartnership,e.g.foroneproject,tocarryouteconomicactivitiescollectively.Thecompaniesinthejointventureallsupplyequityandsharetherisks,profitsandcosts.Jointventuresareoftenusedtoenterforeignmarketswheretheforeigncompanythenformsajointventurewithadomesticcompany.Tliisisbeneficialforbothbecause:?theforeigncompanyhastheknowledgeandtechnology?thedomesticcompanyalreadyhasthecustomersandknowsthemarketwellAdvantages:?Sharingofrisks?Opendoorstonewtechnologyandcustomers?Gaincompetitiveadvantage-severalcompaniesworktogether?Increasingmarketsegment?CombinedresearchanddevelopmentDisadvantages:?Itwillnotnecessarilybesuccessful?Sharingofknowledgecouldbeabused-onlyonecompanywalksawaywiththebenefitsIVIultinationalcompaniesAmultinationalorganizationisacompanythatsuppliesormakestheirproductinatleasttwocountries.Importantfeatures:?Largesizeandhugecapital-alotofpower,caninfluenceeconomiesandpoliticalrelationsbetweencountries.?Playedanimportantroleinglobalizationbecause-wenttopoorcountriestoproducetheirgoodsforcheaplaborExamplesofthisareGoogleandHSBCbuttherearemanymore.Advantages:?Productsaresoldallovertheworld?PossibilitytoworkonrevolutionizingideasDisadvantages:•Notallproductscanbesoldeverywhereintheworld-differentlegislation,culture,etc.HoldingcompaniesAholdingcompanyisacompanythatownsanothercompany.Theyneedtohaveenoughstocktobeabletocontroltheboardofdirectors,whichthenmeanstheycandirectmanagementandoperations.Theydothissotheycanoperatethecompanythewayinwhichtheythinkitisbest,andhashigherprofits.Aholdingisbeneficialbecauseitislikehavinganothercompanybutonlywithlessliabilityandrisk.Economies&diseconomiesofscaleAHLEconomiesofscaleEconomiesofscalereferstothebenefitofsize・advantageslargebusinesseshavecomparedtosmallerbusinesses.Theyare:1・Production?oBuyinginbulk-getdiscount?oDivisionoflabour-workerscanspecialiseinareasofexpertise?oUsemassproductiontechniques?Lowerfixedcosts?Largerandmoreefficientmachinery2.Marketing?oReducecostperunitproductofmarketing-littlechangeinmarketingcosts,substantialchangeinproduction?oAffordmoreexpensiveadvertisingmethods,e.g.television3・Finance?oEasiertoattractfinance?oMorefinancialsecurity\n?oLendersoftenchargelowerinterestratesoBetteraccesstostockmarket,accumulationofretainedprofit4.ManagementDiseconomiesofscale1.Problemsinmanagingproduction?oLeadstoinefficiency?oRaisescostsofstorageduetobulkpurchase2.Communicationsanddecision-making?oSlowdecision-making?oSlowtoreacttochanges3.Effectsonemployee?oPoormorale?oCompanymaybeinflexible13OrganizationalObjectivesNature,role，andimportanceofobjectivesObjectivesareusedtostatethegoalsofthebusiness,andalsotoassessthebusiness1performance・GoodobjectivesshouldbeSMART:?S:Specific?M:Measurable?A:Agreed?R:Realistic•T:Time-specificTheroleandimportanceofobjectivesare:?Determinetheroleoftheemployees?Determinethestrategytobedone?Provideshareholderswithaclearideaofthebusinessinwhichtheyhaveinvested?Provideasenseofdirectionforthebusiness?ProvideabasisfordecisionmakingTermMeaningMissionStatementAstatementofthebusinesscoreaims,phrasedinawaytomotivateemployeesandtostimulateinterestbyoutsidegroups.Vision/AimAstatementofthegeneralpurposeofthebusiness,usuallynotspecificandmainlytoattractstakeholdersObjectiveAgoalthatanorganizationorindividualwantstoachieve・StrategicobjectivesWhattheorganizationwantstoachieveintoremaincompetitive&ensureitslong-termsustainabilityExample:ToincreasemarketshareTacticsShort-termdepartmentalobjectivesorstrategiestoobtainstrategicobjectives・OperationalObjectivesLow-levelobjectiveswhichareaddressedtoindividualsorsmallgroups?AsameasurementforachievementOrderObjectivesExample1AimTomaximiseshareholdersvalue2StrategicobjectivesToincreasemarketshareby10%3TacticsMarketing:Toincreasesalesrevenueby10%4Operational■••Introduce5moreclientstothebusinesseach■TermsTheHierarchyofobjectivesandmeanings:hierarchyofobjectives:\nTacticsarethestrategiesindepartmentalleveltoachievethestrategicobjectives,whicharethestrategiesorobjectivessettoachievethebusinessaims.MissionstatementsAmissionstatementisawrittenexpressionofthecorporateaims.Itisastatementofthefundamentalpurposeoftheorganizationsoastoinspirethosewhoworkforit.Agoodmissionstatementshould:•provideinformationandinspirationtotheiremployees•outlineclearlythewayaheadfortheorganizationSWOTAnalysisSWOTanalysisisatoolforauditinganorganizationanditsenvironment.Itisthefirststageofplanningandhelpsmarketerstofocusonkeyissues.SWOTstandsforstrengths,weaknesses,opportunities,andthreats.Itisimportanttoremeinberthatstrengthsandweaknessesareinternalfactors,whileopportunitiesandthreatsareexternalfactors・Workedexample:SWOTAnalysisfarStarbucksCorporation1.4EthicalObjectivesWhyorganisationssetethicalobjectives1Consumers1views.Peopletakenoticeofafirmsbehaviourwhenmakingproductchoices.Thiscanalsostretchtothefiringcountryoforigin.2Recruitment&retentionofstaff.Bybeingethical,film'scanrecruitwell-qualifiedandmotivatedstaffTheyalsoprovidearangeofbenefitsfortheemployees.3Improvementsinemployeemotivation.Ethicalfirmstendtogetbetteroutputfromemployees・\nImplementationTheimplementationoftheethicalobjectivesisreflectedinthebusinessoperation.Forexample,toachievetheethicalobjectiveofpreservingtheenvironment,thebusinessmaymodifyitsmethodofproductionandchoosechannelofdistributionthatservestowaidspreservingtheenvironmentalorminimizingtheenvironmentaleffect.Anotherexamplewouldbethatofethicaltreatmentoftheemployees,suchascomfortableworkingenvironmentandavoidsubparwagelevel.EffectsonorganizationAdvantages?Increasesgoodwill,improvesbrandimage?Recruitsandretainshighly-skilledandmotivatedstaffs?ImprovesmotivationoftheemployeesDisadvantages?Costswillincrease?Lossofprofit?Conflictfromshareholdersdemandinghigherprofits?Businesspracticemeanschangingthewaycertainthingsaredone1-5StakeholdersWhatarestakeholders?Stakeholdersarethosewhohavestakesorinterestsinthebusiness.Severaltypesofstakeholdersthatarerequiredbythesyllabusguideare:SuppliersSuppliersaredefinedasprovidersof:1productionmaterials2productionofserviceparts1.heattreating,plating,painting,orother...Goodrelationshipwithsuppliersisvitaltoensurereliability,quality,andvalue-for-moneyservicesfromthem.?Possibleconflictsmightariseduetotheinefficientnatureofpaymenttothesuppliersaswellassuppliers^subparqualityofsupply.?Conflictswithsupplierswillcausethebusinesstofacestockshortagesthatwillfurtherhurtcompany^dailyoperations.Employees?Apersonwhoispaidfortheperformanceofhisorherdutiesbyhisorheremployerandcanincludeanofficer,partnerandsole-proprietor.?Itisimportanttopleaseemployersaspleasedandmotivatedemployerstendtoshowhigherlevelofproductivity.?Motivationstheoriesareusedforcompaniestosatisfytheiremployees.?Conflictswithemployeescancauselackofmotivation-?Lackofmotivation=lowerproductivity=losstothecompany?Conflictsw让hemployeescanalsocausehighabsenteeism,thatwilldrainthecompany^poolofmanpowerStockholders?Onewhoownssharesofstockinacorporationormutualfund・Forcorporations,alongwiththeownershipcomesarighttodeclareddividendsandtherighttovoteoncertaincompanymatters,includingtheboardofdirectors,alsocalledshareholder.?Stockholdersareveryimportantforlimitedcompanies.?Theyprovidecapitalandfinancetothecompany,thus,enablingittooperateandexpand・?Theyarealsolookingfortheirpersonalfinancialgains.?Importanttosecurehighdividendstopleasethem?Iftheyrenotpleased,thecompanyriskslosingitsstockholders(sharepriceswillfall)\nCustomers?Definedasaperson,company,orotherentitywhichbuysgoodsandservicesproducedbyanotherperson,company,orotherentity・?"CustomersareAlwaysRight"?Theyarebackboneofthecompany'ssuccess.?Acompanycanpleasecustomersbyprovidinggoodsandservicesthatthecustomersarehappytohave?Dauntedandresentfulcustomerswilltendnottopurchaseacompany^productsinthefuture?Therefore,sustainablesuccesscan^tbeobtained.SpecialInterestGroups•Definedasaperson,group,ororganizationattemptingtoinfluencelegislatorsinfavorofoneparticular[3]interestorissue.?Itisimportanttopleasethemastheymightaffectgovernment^decisioninthefuture?Interestgroupsareusuallyinfluentialinthe'Legal'aspectofPEST-LE?ExampleofInterestgroups:PETA,Greenpeace?Failuresinsatisfyingspecialinterestgroupscanleadtoboycottsbyconsumers(egSheilasdecisiontosinkitsoilrigintheNorthSeaandhowfuriousGreenpeacewas)Creditors?Definedasaperson(orinstitution)whoextendscreditbygivingpermissiontoborrowmoneyifheorshepromisesto(4]payitbackatalaterdate.?Itisimportanttopleasecreditorsastheyaretheoneswhoprovidefundstothecompany?Creditorscanbepleasedifacompanypaysitsdebtsaccordingly(fast,on-timepayment)?Company^securityandlevelofgearingaffectscreditors(companywithhighgearingisrftlikelytogaincreditor^trustformorefinancialinjectionsinthefuture)?Failuresinsatisfyingcreditorswillmakeitdifficultforthecompanytofindfinancialresourcestoexpand,ortoevenstavafloatintimesofcash-flowcrisis.Competitors?Abusinessthatprovidessimilarproductsorservices・Thepresenceofcompetitorsinanindustrydrivesdownthepriceofgoodsandservicesbecauseconsumershavemorealternativesfromwhichtochooseifthepriceofaparticulargoodorserviceistoohigh.?AcompanyislikelytobepleasedbythenegativeoccuiTencesordevelopmentsinitscompetitors,andviceversa.?Symbioticrelationshipsthatwillpleasebothcompetingcompaniescanoccurthroughthesettingupsoftradeunions,etc.?Conflictswithcompetitorscancausemoreproactivemarketingmethodstobeused.Themarketingmethodsincludethe'pricewar\predatorypricingsystem：andotherboldattemptstoshieldoffcompetitions.1.6TheExternalEnvironmentLegalandPoliticalLegal?Changeinlegislationoftenaffectsabusiness?Abusiness'smarketingstrategy(4P，s‘)isverydependentonthelegalfactor?Forinstance,apetrolstationcannotsellalcoholicbeverages.Shopscannotsellcigarettestotheteensbelow18yearsofage.?Legalfactorsarelesslikelytoaffectmuchofcompany'spricingmethods.However,incertaincountrieswithpricecontrolsandsuch,thelegalfactordoesplayitsroleindeterminingthepricingstrategyundertaken・Political?Politicalchangecanalsobringlegalchangetothecompany5sexternalenvironment.?GreenParty,forinstance,ismoreinclinedtosetuprulesthataremorelikelytobenefittheenvironment.Therulesmightalsobelessencouraginginthefinancialsense.?Governmentalsohaspowerinmakingtaxrules(taxation).Highertaxesmeangreaterfinancialstrainstothecompany.?Politicalchangesmightalsoincludechangesintermsofexport-importregulations.Thegovernment^roleinsigningfreetradepactswithcertaincountrieswillbenefitexport-orientedindustries.\nSocialandCultural?Socialfactorisavitalfactorasitinvolvesthecustomers(whichisthebackboneofabusiness)?Abusinessmustoperateinlinewiththesocialandculturalprinciplesofacountry.?Socialchangemightbeindicatedbythechangesintheeatinghabits,healthawareness,etc.?Thecompanywilleithercapitalizeorbroodforthesechanges(higherenvironmentalawarenessmighthelporganicTechnologicalindustries,forexample)・UL?Definedasthescientificmethodandmaterialusedtoachieveacommercialorindustrialobjective.?Acompanywilleitherbenefitorsufferfromhigherleveloftechnologicaladvancementsinthemarket.?Technology=expensive?Ifthecompanyislargeandfinanciallywell-off,itcanusetechnologyandenjoyfromeconomiesofscale(higheryields,lowercosts)?Ifthecompanyissmallandcan'taffordtousehigh-techmachineries,itwillsufferfromhigherproductioncostscomparedtoitscompetitors(losingpriceedge)?However,lessusageoftechnologycanalsoproveasanadvantageforacompanyasitmightevenenterintonichemarket(hand-madeshoesindustries)Ecological?It'smorerelatedtoenvironmentalissues?Acompany'squestforprofitwillbemadelimitedbyitsneedstoprotecttheenvironment?Ahigherdegreeofawarenesswithregardstoecologicalsidesofabusinessoperationswillforcethecompanytobemoreaware(andspenditsmoney)topolluteless?Acompany(resortandhoteloperators)mightfindithardtobuildestablishmentsinthebeautiful,picturesque,yetprotectedareas.?Loggingcompaniesmustbeextracarefulnottocutdowntreesofcertainspecies,atcertainareastoprotecttheenvironment.?Constructioncompanywillsufferfromhigheroperatingcost.Example:WhenconstructingtheKLTower,thebuilderstookspecialcaretoconstwctaretainingwallarounda100-year-oldjelutongtree(Dyeracosiulala).ThetowerwasmovedatacostofRM430,000toavoidharmingthemonumentaltree・Economics?Macroeconomicfactoraffectscompany'sdecisiontoexpandorno匚?Theeconomicconditionsalsoaffectotherfactorslikeemployees'salaries,spending,etc.Thedominoaffectoccursasthechangesaforementionedwillleadtootherchanges(motivationlevelsofworkers,etc)?Economicstabilityisvitalinmakingiteasiertoapplyforbankloansforexpansion?Recessionmightforcethecompanytotakeshort-termdecisionstoensureitssurvival(jobcuts,assetdisposals,etc).Thesedecisionsarenotnecessarilygoodinthelongrun.