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LECTURE 1: LAUNCHING A BUSINESS
Organizational FormsOrganizational StructuresProblems of a Start-Up
LECTURE 1: LAUNCHING A BUSINESS
1. Problems of a Start-Up2. Organizational Forms3. Organizational Structures
PROBLEMS OF A START-UP
…you name them!
LECTURE 1: LAUNCHING A BUSINESS
1. Problems of a Start-Up2. Organizational Forms3. Organizational Structures
FORMS OF BUSINESS OWNERSHIP
sole proprietorship partnership corporation
SOLE PROPRIETORSHIPS
+ ease of starting and ending a business
+ being your own boss
+ pride of ownership+ keeping the profit
- unlimited liability- limited financial
resources- difficulty in
management- time commitment- few fringe benefits- limited growth- limited life span
+ -
PARTNERSHIPS
+ more financial resources
+ shared management
+ longer survival
- unlimited liability (general/limited partner)
- division of profits- disagreement
among partners- difficult to terminate
+ -
CORPORATIONS
+ more money for investment
+ limited liability+ size+ perpetual life+ ease of ownership
change+ separation of
ownership from management
- initial cost- paperwork- size- difficult to terminate
+ -
…AND MORE!
… joint ventures, cooperatives, government corporations, not-for-profit corporations, franchises, etc.
LECTURE 1: LAUNCHING A BUSINESS
1. Problems of a Start-Up2. Organizational Forms3. Organizational Structures
ORGANIZATIONAL DESIGN
3 main principles of organizational design:
1)Authority2)Responsibility3)Accountability
ORGANIZATIONAL STRUCTURES
Main issues: tall vs. flat span of control division centralization
ORGANIZATIONAL TYPES
Line organizations Line and staff organizations Matrix organizations
LINE STRUCTURE
President
Vice president (finance)
Vice president
(marketing)
Vice president
(production)
SupervisorSuperviso
rSupervisor Supervisor
Supervisor
Supervisor
LINE AND STAFF STRUCTURE
President
Vice president (finance)
Vice president
(marketing)
Vice president
(production)
Supervisor
Supervisor
Supervisor
SupervisorSuperviso
rSupervisor
Legal staff Public relations director
MATRIX STRUCTURE
President
Vice president
(production)
Vice manager
(marketing)
Vice manager (finance)
Project manager
1
Project manager
2
Employee A
Employee B
Employee C
… … …
THE END
THANK YOU!
