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Business Management

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1 Advantages and Disadvantages of public limited company

Types of ownership-

Private Limited:

It is a company or business which is owned privately by family or small group. Company's owners are liable only to amount they invest in their business. This type of company have limited number of shareholders and restricts from publicly trading shares.

Partnerships:

Partnerships business is that in which two or more than two members operates business foe making profits. All partners are mutually liable for all debts incurred by partnership firm.

Sole proprietorship:

that business that is owned bu only one person. The person is fully liable to all debts and has unlimited liability incurred during business. (Avolio. and Yammarino, eds., 2013.) The owner may operate business or employ to others to run business.

Unlimited liability:

A business where owners in liable for all debts thet incurred during business.

Limited liability :

In limited liability business of ownership is that where owners of business is limited to fully, paid up value of share capitals.

Public limited company:

A business in which liability is limited and owners are liable only to amount invested in business and liable for debts incurred by the company. In this company is not restricts to public trading shares.

Advantages of public limited company

Limited liability :

Company's shareholders are liable only to the amount of shares held by them. The company can be sued by others but the members can not re involved in it (Boehm.and Thomas, 2013.). This what makes it separate legal entity from its shareholders.

Public borrowing:

Public limited company raise fund from public by issuing its shares. They can also issue debentures and bonds from public. Debentures and bonds can be issued by company on strength of its financial performance.

Transferable share:

A public limited company can bought or sell its shares in stock exchanges. They are freely transferable among people who are trading in stock exchanges.

Greater status:

Public limited company has large size of its business. So it can attract more investors and members to invest in its business activity.

Disadvantages of public limited company

Regulations:

In public company there has a lot of regulations. Public company collect amount from public so there are a lot of regulations on company to protect rights of employees and stakeholders.

Management issues:

Size of public company is large and it runs many operations on daily basis. Company's uncontrollable growth leads to risks for management (Johnston. and Marshall, 2016). To mange growth of company management strategy should be very clear.

Time consuming process:

To set up a public company is time consuming process and add costs in company formations and if company want to listed on stock exchange then it is to be expensive for it.

Lose control: In public company all decision are taken by members of company. Original owners alone can not take all decisions and may lose control over business if his strategy are fail to fulfill exceptions of shareholders.

2 Product life cycle

Product life cycle is a concept which defines entire life of a product. It describes various stages of a product from introduction to removing from markets (The Product Life Cycle, 2010.). It includes four stages introduction, growth, maturity and declined. In four stages company gets opportunities to improve its products quality, customer preferences, consumers behavior and costs analysis of products. Products life cycles management has three assumptions about products.

  • All products go through with four stages and have limited life.
  • All stages contain some challenges and opportunities.
  • Products require different of strategy in its life cycles.

Four stages of products life cycles are as follows-

Introduction:

When a new product is launched in market then for that products there are no markets is available for products. It means that sells are not going very high Products of demand has to be created and costs of products are very high because of research and development and marketing costs also add in products cost. There is no direct competition in market which helps company to capture new market.

Growth stage:

At this stage company's products is getting public awareness and profitability of products begins to rise and sales volume is also increases at this stage. Competition begins among company to establishing in market and costs of products is start decreasing due to increasing numbers of substitutions in market.

Maturity stage:

At this stage customers are getting saturated with products and competition among companies is getting strong (Stark, 2015.). Profits starts declined and competitors offers less price on products. At the same time products need more marketing and financial strategy to maintain market share of products.

Decline: In these stages new products are introduced in market and old products withdraw from markets and products sales and profitability declined. To maintain markets shares and products efficiency become more challenging for company. At this stage no place for further competition is available for products.

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3 incentives

In simple words incentives can be said to reward which is given by company to its employees for their works. It motivates an individual to perform better at its workplace. There are two types of incentives are considers for general purpose financial and non financial incentives.

Financial incentives are those incentives which pay in terms of money. This directly related to the job performance of an individual.

Individuals incentives:

Individuals incentives is based on performance of an individual aimed to increasing productivity of persons and motivated to them top give better work to company. Individuals incentives can be in terms of bonus, merit pay and compensations programs.

Group incentives:

Group incentive programs pays incentives to whole group which exceed levels of performance sets by company (Welpe,and et.al., 2015). Group incentives can be deliver in cash and time off awards. It increases team spirit among group members and results increases productivity and performance of group.

Non financial incentives are related to physiological and security needs of individuals. It leads to higher level of status and precondition of employees in company.

Job Enrichment:

Job enrichment means adding more job contains to making jobs more interesting and challenging work. Job enrichment involves more job responsibility of employees and challenges individuals skills at work. These techniques is useful both for company and employees. Employees are motivated and gets achievement and for organization it reduced labor work turnover as well as grievances.

Suggestion systems:

Suggestion systems is another non financial incentives for employees in company. In which company's invites ask to employees to give suggestions related to particular work or projects. It motivated to employees to search useful suggestions for company and in return company publish their names in company's magazine or announced as best employees of month or year.

4 Leaderships and Management

Leaderships is a skills and ability of a person to lead or guide other persons, teams and entire company. A good leadership involves clear vision for goals and follows them willingly. Leaderships provides information, knowledge and maintain coordination among groups members.

A leadership always have long termed visions for company. The visions of leaderships shows focus on increases productivity of workers and strategy shows road may for them how increasing productivity among members of company (Longenecker, and et.al., 2013.). A good leadership always motivated to employees to focus on their visions through motivations they give more focus on visions and company's goals. Focused employees gives better performance and through leaderships they achieve their goals in time. Leaderships help to company to make remove obstacles in their strategy and strong visions helps to them to look forward in company.

Management is can be say a process to dealing with people and things in a company. Management includes setting strategy and in company and coordinates efforts of employees to achieves objectives through its management.

Functions of management involves planning. Organizing, leading, and controlling.

Planning: Planning means checking future goals of company and mange proper utilization of human resources. It is very important functions which helps to avoid confusions and risks in management.

Organizing : It is process of bringing all the departments and employees together in relations to develop and achieve productivity in company. Work of management is identify activities and duties and of employees in company and mange work among the employees.

Leading: In this part of functions company's management which guide employees to achieve company's goals. Leading people in company is important tasks and motivate s employees in order to achieve their goals and clear their tasks.

Controlling: Controlling ensures the standards of company and their working systems. It is process that checking whether measurement of actual performance of employees and takes corrective actions according ti them to maintain standards of company.

Difference between managers and management: Leaderships and management terms similar but very different from each other (Grohar-Murray, and et.al., 2016.). Management ensures controlling and maintain working conditions in company while leaderships motivates people to achieve goals of organization.

Management process focus on establish work, rules, standards and responsibility for company while leadership focus on motivated people and increasing productivity of company.

Management has short term goals or focus on daily works of company but leaderships always long term goals towards company and share their vision with company.

Management focus on controlling of systems and structures of company while leaderships inspires people trust and motivated them to achieve goals.

Leaderships challenges people's work and motivated them perform better work and increasing their productivity of employees While, mangers provides only work to them (Rose Johnson, 2016.).

Management focus on plans and budgets and maintain company finds but leaderships focus on creates vision and strategy for company.

Management maintain stability company but leaderships brings changes for company for more challenging future.

References

  • Avolio, B.J. and Yammarino, F.J. eds., 2013. Transformational and charismatic leadership: The road ahead. Emerald Group Publishing.
  • Boehm, M. and Thomas, O., 2013. Looking beyond the rim of one's teacup: a multidisciplinary literature review of Product-Service Systems in Information Systems, Business Management, and Engineering & Design. Journal of Cleaner Production, 51. pp.245-260.
  • Grohar-Murray, M.E., and et.al., 2016.Leadership and management in nursing. Pearson.
  • Johnston, M.W. and Marshall, G.W., 2016. Sales force management: Leadership, innovation, technology. Routledge.
  • Longenecker, J.G.,and et.al., 2013. Small business management. Nelson Education.
  • Stark, J., 2015. Product lifecycle management. In Product Lifecycle Management. pp. 1-29. Springer International Publishing.
  • Welpe, I.M., Wollersheim, J., Ringelhan, S. and Osterloh, M., 2015. Incentives and performance. Governance of research organizations, Cham [etc.].

 

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