上海財(cái)大ACCAF1講義1精編版

1、 Chapter 1 Business organizations and their stakeholders 1 Types of organisation 1.1 What all organisations have in common An organisation is : a social arrangement which pursues collective goals, which controls its own performance and which has a boundary separating it from its environment. 1.2 Why

2、 do organisations exist? Organisations can achieve results which individuals can not achieve by themselves. (a) Oraganisations overcome peoples individual limitations, whether physical or intellectural. (b) Organisations enable people to specialise in what they do best. (c) Organisations save time.

3、(d) Organisations accumulate and share knowledge. (e) Organisations enable synerge. In brief, organisations enable people to be more productive. 1.3 How organisations differ Ownership (Public vs Private) Owned by the government (public sector organisations) Owned by private owners or shareholders (p

4、rivate sector organisations) Control Controlled by the owners themselves Controlled by people working on their behalf Indirectly controlled by government-sponsored regulators Activity Profit or non-profit orientation Legal status Limited companies Partnerships Size Sources of finance Borrowing from

5、banks Government funding Issuing shares Technology Varying degrees of technology use 1.4 What the organisation does Organisations do many different types of work 2 Types of business organisation 2.1 Profit vs non-profit orientation Profit orientation Maximise profit (to owners) Non profit orientatio

6、n Provision of goods / services (to public / beneficiaries) 2.2 Private vs public sector Private sector Organisations not owned or run by central or local government, or government agencies. Public sector Organisation owned or run by central or local government agencies. 2.3 Private sector businesse

7、s A business organisation exists to make a profit. Costs should be less than the revenues. Profits are not incidental to its activities but the driving factor. 2.3.1 Legal status Someone setting up a business can choose to go into business alone, take on one or more partners who also share the profi

8、ts of the business, or set up a limited company. 2.3.2 Limited companies A limited company has a separate legal personality from its owners (shareholders). The shareholders risk is generally restricted to the amount that they have invested in the company when buying the shares. Limited liability The

9、 ownership and control of a limited company are legally separate. Shareholders are the owners but have limited rights, as shareholders, over the day to day running of the company. Directors are appointed by shareholders to run the company. Board of directors controls management and staff, and is acc

10、ountable to the shareholders Executive directors participate in the daily operation of the organisation. Non-executive directors are invited to join in an advisory capacity, usually to bring their particular skills or experience to the discussions of the board to exercise some overall guidance. Oper

11、ational management usually consists of career managers who are recruited to operate the business, and are accountable to the board. 2.3.3 Types of limited company Private limited companies (eg X Limited) Public limited companies (eg X plc) They differ as follows: (a) Number of shareholders (b) Trans

12、ferability of shares (c) Directors as shareholders (d) Source of capital A private companys share capital will normally be provided from three sources: the founder or promoter; business associates of the founder or employer; venture capitalists A public companys share capital can be raised from the

13、public directly, or through institutional investors, using recognised markets, 2.3.4 Advantages and disadvantages of limited companies Advantages More money Reduces risk for investors Separate legal personality Ownership is legally separate from control No restrictions on size Flexibility Disadvanta

14、ges Legal compliance costs Shareholders have little practical power 2.4 The public sector The public sector comprises all organisations owned and run by the government and local government. 2.4.1 Key characteristics of the public sector (a) Accountability, ultimately, to Parliament. (b) Funding Rais

15、ing taxes Making charges Borrowing (c) Demand for services: limitless (d) Limited resources 2.4.2 Advantages (a) Fairness (b) Filling the gaps left by the private sector (c) Public interest (d) Economies of scale (e) Cheaper finance (f) Efficiency 2.4.3 Disadvantages (a) Accountability Inefficiency

16、may be ignored (b) Interference Politicians may not be familiar with the operation of a business and yet political pressures and indecision may influence adversely the decision making process. (c) Cost The public will demand as perfect a service as possible but will not wish to bear the cost involve

17、d. 2.5 Non-governmental organisations A non-governmental organisation (NGO) is an independent voluntary association of people acting together for some common purpose (other than achieving government office or making money). Aimed at promoting social, political or environmental change. Some organisat

18、ional features of NGOs Staffing by volunteers as well as full time employees Finance from grants or contracts Skills in advertising and media relations Some kind of national headquarters Planning and budgeting expertise 2.6 Co-operative societies and mutual associations Co-operatives are businesses

19、owned by their workers or customers, who share the profits. Open membership Democratic control (one member, one vote) Distribution of the surplus in proportion to purchases Promotion of education Mutual associations are similar to co-operative societies in that they are owned by their members rather

20、 than by outside investors. Questions A limited company has a separate legal identity from its owners. True or false. A True B False Answer: A Which of the following provides an example of a boundary separating an organisation from its environment? A A divisional structure B Systems and procedures C

21、 Factory gates D Recruitment policy Answer: C Primary and secondary goals are equally important in an organisation. Is this statement true or false? A True B False Answer: B Which of the following best describes the public sector? A Companies where profits are the driving factor B Companies which ar

22、e owned by a wide proportion of the investing public C All those organisations owned and run by the government and local government D Businesses owned by their workers or customers, who share the profits Answer: C 3 Stakeholder goals and objectives Stakeholders are those individuals or groups that,

23、potentially, have an interest in what the organisation does. Objectives must consider stakeholders. Johnson and Scholes identified three types of stakeholder: I C E 3.1 Internal stakeholders: employees and management Employees Managers 3.2 Connected stakeholders Shareholders (corporate strategy) Ban

24、kers (cash flows) Suppliers (purchase strategy) Customers (product market strategy) 3.3 External stakeholders Government Interest / pressure groups Professional bodies 3.4 Another approach Primary stakeholders: have a contractual relationship with the organisation. Includes internal and connected st

25、akeholders. Secondary stakeholders. Equates to external stakeholders. 3.5 Stakeholder conflict Between managers and shareholders 3.6 Stakeholder mapping: power and interest Mendelows Matrix The matrix outlines how to approach each stakeholder Stakeholder mapping is used to assess the significance of

26、 stakeholder groups. Segment D: strategy must be acceptable key players Segment C: keep satisfied Segment B: keep informed Segment A: minimal effort Stakeholders may move from quadrant to quadrant. 3.7 The strategic value of stakeholders The firm can make strategic gains from managing stakeholder relationships. 3.8 Measuring stakeholder satisfaction Qualitative Quantitative Questions Which of the following is not a connected stakeholder? A Customer B Employee C Landlor