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There are many ways in which business can be organized

Extracts from this essay...

Introduction

Business Ownership There are many ways in which business can be organized. It can be from a small one-man business to a multinational organization. The business ownership is mainly divided into different sectors. In this part I am going to explain about two types of business ownership. 1. Private limited company 2. Public limited company (plc) Private limited company The limited company is fast becoming one of the most common forms of business organization. When a small business expands there is need for extra capital. The proprietors may start the business as a limited company just to obtain the benefits of limited liabilities. The partners may decide to turn the business into limited company to raise this capital. A limited company is a separate organization in law from its shareholders and directors. The main points of private limited companies are: * The name of the company must end with the word 'limited'. * There is no limit to number of shareholders. Advantages 1. Limited company can continue even after the owner dies. 2. With limited liabilities company is able to attract capital from public. 3. The founder of company can usually keep control of it by holding majority of the shares. Disadvantages 1. The company is not allowed to appeal to public for extra capital. 2. The accounts of the company must be filed annually by the Registrar of the company. 3. The shareholders of the company may be able to transfer his/her shares to someone else only with the consent of other shareholders. 4. The company is unable to trade shares publicly on the stock market. Public limited company (plc) The second type of limited company is public limited company (plc). This is largest and most important business unit. Public limited company must stated in the Memorandum of Association that the company is public. The process of creating a public limited company is very similar to that of creating a private limited company.

Middle

It is therefore crucial to have a strong leader who can inspire and motivate the employees. In big organizations such as Sainsbury there are many different style of management that could be used but there are three basic categories of management styles. These are: * Autocratic Management * Democratic Management * Consultative Management Autocratic management This is often referred as an authoritarian management style. The autocratic management style is one where the manager is used to give instructions. Telling his employees what to do rather than asking their opinions. The manager is the only person contributing to the decision making process. The managers are used to hold on to the power, and do not understand how the process of 'empowerment' might work. Democratic management This style management involves empowerment. Individuals and teams are given the responsibility to make decision, usually within a given framework. The team is then responsible for the decision that it chooses to make. The manager with this style will feel comfortable allowing others to make decisions. However, they will be confident that empowered individuals and teams will use the responsibility given to them. Consultative management The managers in this style management are ones who seek to consult other people before making a decision. This type of managers wants to draw on more sources of opinion that just him or her. The consultative managers will have listening skills and also the ability to create the right sorts of channels to consult other people. In an organization with consultative management, there will be a series of mechanism (e.g. news, letters, suggestion boxes etc) that makes it possible to get the feel of the concerns of other people involved in the decision making process, as well as to draw on their expertise. Sainsbury's management style The Sainsbury's style is under Autocratic management, it cannot be solely categorized in this niche as it has influences from consultative management and probably even some from democratic style.

Conclusion

This records every transaction made by a business and can, therefore, enable it to monitor its stock levels and sales of products to a 100% level of accuracy. This system can automatically re-order stock when numbers fall to a certain level in the warehouse, as well as monitoring the quantity of each component that is used in the production process. Computer Aided Design (C.A.D) is the use of sophisticated computer software to design three-dimensional images of products quickly and relatively cheaply. Computer Aided Manufacturing (CAM) is the use of computers and software for a wide variety of production tasks, including automated production lines and stock control systems. Bar codes are used to identify products like reading of deliveries, update stock inventory. Bar codes help to know weather the delivery is over order, under order and also it helps with theft. Evaluation of quality control and quality assurance of Sainsbury's "As Sainsbury's mission is to be consumer's first choice for food, delivering products of outstanding quality and a great service at competitive cost through working faster, simpler and together" Reliable quality is a prime concern of Sainsbury's, while deciding supply of raw materials it means: - * They are following the total quality management concept. * They are following the self-checking system to monitor their own performance and that of the processes they are working on against giving standards means there is an effective quality culture prevalent in Sainsbury's. * They are increasing participations in organizations activities through quality circles, which constitutes steering committee to make general policy, the facilitator to support the process, the circle leaders as the supervisors for the problem solving and the members of the circle. * They are also following ISO 9000 certificate rules to ensure the goods quality. * They have established a separate research and development department, which has a special wing to do the research on quality. By emphasis the quality on priority basis they have achieved their objectives of sales growth, high turnover, maximum customer satisfaction and to become more innovative and concerned about quality. ?? ?? ?? ??

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