This document discusses different types of business organizations and functions. It defines an organization as a group of people working together to achieve common goals. It then outlines seven main business functions: human resources, sales/marketing, research/development, production/operations, customer service, finance/accounts, and administration/IT. Finally, it describes four common types of business ownership: sole proprietorship, partnership, corporation, and cooperative. It provides advantages and disadvantages of each along with examples.
2. What is Organization ?
Business function in Organization
Human Resources
Sales and Marketing
Research and development
Production/Operation
Customer Service
Finance and Accounts
Administration and IT
Business Fundamentals (Types of
Businesses)
CONTENT
3. An organization is the group of
people with specific responsibilities
acting together for achieving specific
purpose determined by the
organization.
An organization is an entity where two
or more persons work together to
achieved a goal or a common
What is Organization?
4. The last important thing for any
organization is that it requires
main pillars of management. i.e.
POLC.
1) Planning
2) Organizing
3) Leading
4) Controlling
What is Organization? Cont……
6. All organizations are divided into
many departments or sections, with
each department having an assigned
functional responsibility.
The various department have their
own goals.
Business Function of Organization
8. Business Functions:-
I. Human resources
II. Sales and marketing
III. Research and development
IV. Production/operation
V. Customer service
VI. Finance and accounts
VII.Administration and IT
9. 1. Human Resource:-
I. Recruitment and retention
I. Job description
II. Person specification
II. Dismissal
III. Motivation
IV. Professional development and training
V. Health and safety and conditions at work
10. 2. Sales and Marketing:-
I. Market research
II. Promotion strategies
III. Pricing strategies
IV. Sales strategies
V. Sales team
11. 3. Research and Development:-
I. New product development
II. Product improvement
III. Value added
IV. Product testing
V. Cost saving
12. 4. Finance and accounts:-
I. Cash flow
I. Monitoring income/revenue
II. Monitoring expenditure
II. Preparing accounts
III. Raising finance
I. Shares
II. loans
13. 5. Production/Operation:-
I. Acquiring resources
II. Planning output-labour, capital, land
III. Monitoring costs
IV. Projection on future output
V. Production method
I. Batch
II. Flow
III. Job
IV. cell
14. 6. Customer Services :-
I. Monitoring distribution
II. After- sales service
III. Handling consumer enquiries
IV. Offering advice to consumers
V. Dealing with customer complaints
15. 7. Administration and IT :-
I. Managing estates- cleaning, health &
safety, maintenance, security
II. Reception
III. Clerical work- reporting, recording,
record keeping, communication
IV. Overview of quality control
V. Use of IT system
17. TYPES OF BUSINESS OWNERSHIP
Who is your boss?
Who is your boss’s boss?
Can you become part owner?
Forms of business ownership and
type of business help describe how
the business is organized and run.
18. 4 TYPES OF OWNERSHIP
1. Sole Proprietorship
2. Partnership
3. Corporation
4. Co-operative
19. 1. SOLE PROPRIETORSHIP
Owned by one person, who
performs most roles and owns
everything
Owner gets all profits, takes all the
losses → called unlimited liability
Easiest and least expensive to set up
Easiest for tax purposes → income
recorded under personal income
20. 1. SOLE PROPRIETORSHIP
ADVANTAGES
owner makes all the decisions- hours of
business, whom to hire
they are their own boss
any profits belong to the owner
21. 1. SOLE PROPRIETORSHIP
DISADVANTAGES
the owner may lack the ability to buy
the right supplies, do accounting etc
it the business loses money, so
does the owner
creditors canclaim the personal
belongings of the owner
longhours
if the owner is ill the business doesn’t
open
22. 2. PARTNERSHIPS
Two or more individuals share costs
and responsibilities
Terms of partnership recorded in
partnership agreement
“silent” partners- partners that usually will
front a lot of capital, but do not want to
participate in business decisions – receive
profits in return
23. 2. PARTNERSHIPS
Two types of Partnerships can exist in a business:
General partnership
All partners have unlimited liability (can be
held responsible for the other partner’s
business related debts)
Limited partnership
Partners have limited liability (only
responsible for their share)
24. 2. PARTNERSHIPS ADVANTAGES
two or more people share decision
making process
one person may be better at one task
than the other partner
sometimes easier to borrow
money if two people are
involved
26. 3. CORPORATION
Business with a legalstatus
Can be as small as one person, or
multinational
Some owned by individuals, families,
small groups
27. 3. CORPORATION
Ownership often broken into small units,
shares, which are sold through a stock
exchange
(ie. TSX) → a publicly traded corporation
Those who buy: shareholders
28. 3. CORPORATIONS
Since there are many owners, a board
of directors runs corp.
Shareholders have limited liability,
not responsible for debts
Get profits asdividends
29. 3. CORPORATION TYPES
1. Private Corporation
Only a few people control stock
Not publicly traded
2. Public Corporation
Sell shares to raise money
1 share = 1 vote;
those with most shares influence company decisions (usually
orig. owner,execs)
3. Crown Corporation
Business owned by the federal or provincial government
Federal: VIA Rail, Canada Post, Bank of Canada
Provincial: BC Transit, BC Lottery, BC Hydro, BC Museum
30. 4. COOPERATIVES
Business owned by workers/those who use it
Run by board ofdirectors
Each member only gets 1vote
Profits shared based onuse
Examples:
Peninsula Co-op, Mountain Equipment Coop
(MEC)
31. FRANCHISE
A franchisor licenses the rights to the
business to a franchisee for a fee
Franchisee runs business according
to agreement
Franchisee also pays monthly fee, has to
purchase product through franchiser,
sometimes gets trained by franchiser, has
to maintain uniform quality etc.
Examples: Tim Hortons, McDonalds, M&M
Meats, Boston Pizza, UPS Store
