BUSINESS AND BUSINESSES

Stabryna Anastasiia 1-16

• Business Organization

• Business Organization and the

Economy

• Ownership

• Business Relationship

• Companies’ Restructuring

• Organizational Structure

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 Business is the activity of producing, buying and selling
goods and services. A business organization is a firm, a
company or a business that makes, buys or sells goods, or
provides services, to make a profit. Businesses vary in size. .
Large companies are referred to as corporations. Many
consider the corporation the ideal way to organize business.
Small companies which do not employ many people and
earn relatively little money are referred to as small businesses
or small firms. We can also call a small business a small – to
medium – sized business, or SMB.
It’s not easy to organize a business and to operate it
successfully. When a company is not successful, it may go out
of business. The economic situation, as well as decisions taken
by the owners of a company, affect how it grows and changes.
BUSINESS
ORGANIZATION

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 BUSINESS ORGANIZATION AND THE
ECONOMY
Businesses involved in making a particular
kind of product or providing a particular service
are part of an industry and may be classified
according to which industry they are in: for
example, construction, oil, banking, food. The
productive sectors of the economy consist of
• the primary sector
• the secondary sector
• tertiary sector.
The primary sector is a part of a country’s
economy that consists of industries which
produce raw materials.
The secondary sector consists of
industries which produce things from raw
materials.
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All the companies which make goods
from raw materials or assemble components
into finished products work in this sector.
The tertiary sector consists of industries
which provide a service. We can also call the
tertiary sector the service sector.
Privately – owned and – run companies
work in the private sector. It includes large
corporations, SMEs and individuals working on
a self employed basis.
State – owned and – run organizations are
in the public sector. The public sector is
controlled or supported financially by the
government.
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 A business is an organization of material, human,
financial, and information resources that are joined
together for a specific purpose. Not all businesses are
owned and organized in the same way. Within each
industry there can be a variety of types of business
organization, each with their own legal structure.
In unlimited liability companies the owners are
personally and entirely liable for the debts of the company.
This means they may lose their personal assets if the
company is in financial difficulties.
Limited liability companies are subdivided into private
limited companies (Ltd) (BrE)/limited liability companies
(AmE) and public limited companies (PLC) (BrE)/listed
companies (AmE).
A private limited company is a company which has
shareholders but which cannot offer its shares to the public.
A public-limited compan is a company whose shares
can be bought and sold on the stock exchange.
A franchise is a type of company in which the business
owner allows other people (franchisees) to set up in
business using the company’s brandname, products and
reputation.

OWNERSHIP
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 BUSINESS
RELATIONSHIP

A group is a number of subsidiary companies

operating under one leading company known as the parent
company. A subsidiary is a company that is half or wholly
owned by another company (the parent company). A
holding company is one that holds all, or more than half of,
the stakes in one or more subsidiaries. It is the leading
company in a group.
A conglomerate is a group consisting of a lot of
different companies in different businesses run as one large
company. When two or more companies decide to work
together, they form a joint venture.
A consortium is a group of companies which come
together to undertake a project which any one of the
members cannot carry out alone.
 COMPANIES’ RESTRUCTURING

As a rule companies join with or buy other companies in

order to have better control of a particular market, to diversify
their business, to strengthen their operations to remain profitable.
To buy another company or to win a controlling share of a
company is to acquire a business, make an acquisition or take
over a company. There are two types of takeover: a hostile
takeover is a situation in which a company is bought out when the
owners do not want to sell.
Individuals or companies that want to take over other
companies are called raiders.
When someone wants to buy a company they have to make
a bid for it, i.e. offer to buy it at a certain price. If you pull out of a
business activity, you abandon it.

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 ORGANIZATIONAL STRUCTURE
I n b u s i n e s s or g a ni z a t i o n a l s t r u c t u r e m e a n s t h e r e l a t i o n s h i p b e t w e e n p o s i t i o n a n d p e o p l e w h o h o l d t h e s e
positions. The structure of organizations varies greatly according to the nature of the business. There are
several factors which influence this structure:
• the number of locations and employees
• the economic sector
• t h e t y p e o f a m a r k e t i n wh i c h t h e y o p e r a t e
• the type of customers
• the degree of management control required
• t h e c o m pl e x i t y o f t h e b u s i n e s s a c t i v i t i e s
E v e r y c o m p a n y m u s t d e c i d e o n t h e b e s t w a y t o o r g a n i z e i t s m a n a g e m e n t h i e r a r c h y. T h e r e e x i s t t h r e e
levels of management: top management, middle management and supervisory management where typical job
t i t l e s a r e : S u p e r v i s o r, Te a m L e a d e r, S e c t i o n C h i e f .
To p m a n a g e m e n t s e t a d i r e c t i o n f o r t h e o r g a n i z a t i o n . M i d d l e m a n a g e m e n t d e v e l o p d e t a i l e d p l a n s a n d
p r o c e d u r e s b a s e d o n t h e f i r m ’s o v e r a l l s t r a t e g y. S u p e r v i s o r y m a n a g e r s a r e r e s p o n s i b l e f o r a s s i g n i n g n o n
managerial employees to specific jobs and evaluating theirperformance.
M o s t d e p a r t m e n t s h a v e a M a n a g e r, w h o i s i n c h a r g e o f i t s d a y - t o - d a y r u n n i n g , a n d w h o r e p o r t s t o t h e
D i r e c t o r ; t h e Di r e c t o r i s r e s p o n s i b l e f o r s t r a t e g i c p l a n n i n g a n d f o r m a k i n g d e c i s i o n s . Va r i o u s p e r s o n n e l i n e a c h
d e p a r t m e n t r e p o r t t o t h e M a n a g e r.

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THANK FOR YOUR ATTENTION !

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