1. What are the challenges that managers face in today's competitive world?
2. What are the advantages of a franchise?
For individual entrepreneurs, the franchise provides a less risky route to starting a business. The franchise agreement allows a businessperson to trade under the name of an established brand, backed by an established organization (the franchisor), while retaining ownership of the business. Under the agreement, the business owner (franchisee) pays fees to the franchisor organization for the right to sell its products and services. The franchisee does not have the freedom over the business that an independent owner would have Compare the features of sole proprietorship and partnership., but stands a greater chance of success due to the strength of the established business formula of the brand.
1. Describe each of the major functions of management: planning, organizing, leading, and controlling.
The main difference between private and public limited companies is that public limited companies have no restriction on the number of shareholders or on the freedom to buy and sell shares. Shares in plcs can be bought and sold on the stock market at any time by individual members of the public Compare the features of sole proprietorship and partnership., other companies or organizations.
By selling shares to the general public as well as to other companies and organizations, plcs can raise vast amounts of capital in ways that are inaccessible to Ltds. Additional shares can be issued and sold to raise further capital. In this way, a plc can finance costly expansion, development and research programs which are often beyond the means of other types of business. For example, retail chains such as Marks and Spencer can purchase prime trading sites to increase customer base, and major companies like Unilever can spend huge amounts on research to keep its products Compare the features of sole proprietorship and partnership. ahead of those of its competitors.
Compare the features of sole proprietorship and partnership.
A sole trader has a complete control over the decision making and running of the business. A sole trader can employ others to help run the business.Setting up as a sole trader can be the least expensive way of starting a business. Many sole traders start with a minimum of capital or finance. They often begin by operating from small premises, such as a shop, small workshop or Compare the features of sole proprietorship and partnership. office.
They have unlimited liability. Many of them take out a bank loan to help finance the start-up costs of the business. The lender will probably require the loan to be secured on the owner’s personal property
Generally a partnership has between two and twenty partners. The partners share both control of the business and its profits. Responsibility for the business is shared between the partners. This means that no single partner has to oversee the whole business, but each partner is able to concentrate on that part of the business in which he or she excels. The sources of Compare the features of sole proprietorship and partnership. finance available are the personal funds, profits retained and bank loans. The owners of a partnership have unlimited liability and are likely to have to use their personal property as security for any loan.
1. What roles do managers act out at various times?
2. Mergers and acquisitions have become increasingly important. What is the driving force behind them?
Mergers and acquisitions are the key to companies’ growth strategies. A major driving force has been the enhancement of shareholder value, bringing cost savings and efficiencies. There are three main types of integration: horizontal, vertical and conglomerate.
Horizontal integration Compare the features of sole proprietorship and partnership. (also referred to as consolidation) occurs when two businesses making similar products join together. One car manufacturer buying another car manufacturer or a supermarket chain buying another supermarket chain would be an example of horizontal integration.
Vertical integration takes place when a business integrates with either a supplier (backward vertical integration) or a customer (forward vertical integration). It is vertical because the integration occurs between two businesses at different points on the chain of production for a product. For instance, a car manufacturer buying a car component company would be an example of backward vertical integration. A catering company buying Compare the features of sole proprietorship and partnership. a chain of fast food outlets would be an example of forward vertical integration.
Conglomerate integration takes place when two business making unrelated products join together. For example, a cigarette manufacturer buying an insurance company would be a conglomerate takeover. A steel manufacturer merging with a health care company would a conglomerate merger.
1. Explain why a knowledge base and key management skills are important to managers.