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Investigating business - Type of Ownership.

Extracts from this document...

Introduction

By Maninder K.S. Type of Ownership. The way in which a business is sun is known as an internal organization of a business. This can be a number of ways, including:- > A sole trader - a business owner by one person > A Partnership - a business having 2 or more owners who contribute money and expertise. > A Private limited company ( LTD) - A company whose shares cannot be traded openly on the stock exchange. > A Public limited company ( PLC) - A company in which shares are traded openly in the stock exchange. > A franchise & - A business using the name image and products of a larger successful organization. A factor that affects which type of ownership is chosen is limited liability If you have limited liability, this means that you will only loose the amount of money you have put in. For example, if you put in �1000 into a business, if it fails, you will only loose �1000, However, if you have unlimited liability, you will end up losing everything just to pay off the debts. Cameron Balloons Cameron Balloons is a private limited company (LTD). A LTD is a private limited company that is usually a small to medium sized business that sells shares privately to family or friends. The original owner, Don Cameron, keeps control but managers are appointed to run the day to day business. The business used to be a sole trader, but soon changed to a LTD in 1971 when Don Cameron wanted to expand. This type of business has limited liability and will only lose however much money they have out into it. For example, if a person invested �10,000 into the business which had failed, they would only lose �10,000. The advantages of a LTD are:- > It has limited liability > The company will be incorporated > It can them be a multinational business > He wanted to keep control of the company by being the major shareholder > He is able to sell the company if he wants to > It's easier to borrow money. ...read more.

Middle

Three functional Areas of Cameron Balloons. The three functional areas I am going to investigate are > Operations > Finance and Accounts & > Marketing and Sales. Operations looks after Production, Design, Purchasing, Stock Control, and Research and Development. Finance and Accounts looks after all of the income and expenditure of the business. Marketing and sales looks after all aspects of advertising, selling and Customer Service. Operations. The operations function in a business is responsible for all the operations that go into making the product. A number of things go in a cycle of operations takes place and something is made. Every business needs a set of inputs. It is the job of the functional area that covers operations to make sure that there are enough of the inputs, and that they are of adequate quality. Part of the operations function will also be to organise and oversee the actual production process. Operations produce products by making best use of the various inputs that are needed. These include, > Land - This includes land that is worked (such as farming land, mines and quarries), the land that is necessary for buildings to stand on, and the buildings themselves. Cameron Balloons has two factory sites, one in the UK and the other in the USA. > Equipment - Cameron Balloons has computer and design equipment, machines for sewing fabric and high-quality plotting and cutting apparatus. > Staff- The staff at Cameron Balloons ranges from Don Cameron, to engineers, designers and salespeople. > Materials - The raw materials needed include the special fabric used to make the balloons, the resources to put the designs on to the material, and the supplies to make the baskets, burners and rigging. That is why the operations department is divided into > Purchasing. > Design & > Production. Purchasing The main functions of the purchasing department are > Buying. > Stock control & > Goods inwards. ...read more.

Conclusion

Without their research, the operations department could make the necessary changes needed. The finance department will let the operations department know how much money they have to make the changes with. Cameron Balloons' first aim is to provide a highly competitive service. Again all three functional areas are needed to do this, but the main one, again, would be the marketing and research field. If Cameron Balloons didn't provide a highly competitive service, then all the other businesses would end up taking over and Cameron Balloons would end up being bankrupt. The only way they can provide a competitive service is to know what the other businesses are doing. This is where the marketing and research sector comes in because they find out what is happening in the other businesses. They then let the operations department know and they make the necessary changes. Once again, the finance department would let the operations department know how much money they could use in order to make the changes. The second aim is to improve a product and to manufacture them to the highest standards. This is important because if they don't, then the customers will take their business else where and therefore, will lose profits. All 3 functional areas work effectively together in order to achieve this aim. The marketing department works with the operation department to see if they are making the balloons to the highest standards which the customers require. They pass on this information to the finance department and they can see whether the capital provided to do this is being used appropriately. The third aim is to produce new goods. This is important because if they don't, then they will lose customers, as customers want the latest thing. The marketing and research department will find out what the latest products are, they will then let the operations department know, and they will make the necessary changes. Before they make the necessary changes, they need to know how much money they have to spend, so they will end up asking the finance department. ...read more.

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