02. business organisations
TRANSCRIPT
Business
Organisations
The Nature of Firms
• The importance of understanding the organisation of businesses
• The nature of firms– complex production• organising production through markets• organising production through hierarchies
– benefits of organising production within firms• reduction in transactions costs
– problems of market arrangements• uncertainty• complexity of contracts• monitoring and enforcing contracts
The Nature of Firms
• Goals of the firm
• The traditional theory of the firm
• Alternative theories
– the divorce of ownership from control
– the development of the joint-stock company
–managerial objectives
The Nature of Firms
• The principal / agent relationship
– the principal – agent problem
– asymmetric information
– dealing with imperfect information
• monitoring
• incentives
• The goal of staying in business
– the willingness of firms to take risks
– problems of being over cautious
The Firm as a Legal Entity
• The sole proprietor– unlimited liability
• The partnership• Companies– limited liability– public limited companies (plc)• public issues of shares• shares traded on the Stock Exchange
– private limited companies– consortia– co-operatives: producer and consumer– public corporations
The Internal Organisation of the Firm
• U-form
U-form business organisation
P r o d u c t i o n F i n a n c e S a l e s P u r c h a s i n g
C h i e f e x e c u t i v e
The Internal Organisation of the Firm
• U-form
– advantages
– problems when firms expand beyond a certain size• bounded rationality
• communications costs
• distorted information
• decline in organisational efficiency
• M-form
M-form business organisation
P r o d u c t i o n F i n a n c e S a l e s P u r c h a s i n g
D i v i s i o n 1 D i v i s i o n 2 D i v i s i o n 3
H e a d O f f i c e
The Internal Organisation of the Firm
• U-form
– advantages
– problems when firms expand beyond a certain size• bounded rationality
• communications costs
• distorted information
• decline in organisational efficiency
• M-form
– advantages and disadvantages
The Internal Organisation of the Firm
• The flat organisation
• Multinationals and business organisation
– H-form
– integrated international enterprises
– transnational associations
( S E E B E L O W )
S t u d i oE n t e r t a i n m e n t
1 0 a f f i l i a t eT V s t a t i o n s
5 3 r a d i os t a t i o n s
A B C T VN e t w o r k
A B CR a d i o
E S P N c a b l en e t w o r k s
T h e D i s n e yC h a n n e l
O t h e r c a b l ec h a n n e l s
C a b l eo p e r a t i o n s
D i s n e yW e b s i t e s
M e d i aN e t w o r k s
W a l t D i s n e yW o r l d
D i s n e y l a n d D i s n e y l a n dR e s o r t P a r i s
T o k y o D i s n e yR e s o r t
D i s n e yV a c a t i o n C l u b
5 M a j o r R e s o t s
W a l t D i s n e yR e s o r t s
D i s n e yC r u i s e L i n e
M i g h t yD u c k s
A n a h e i mA n g e l s
A n a h e i mS p o r t s I n c .
D i s n e y R e g i o n a lE n t e r t a i n m e n t
P a r k s a n dR e s o r t s
R e t a i l e r s M a n u f a c t u r e r s P u b l i s h e r s
L i c e n c e e s T h e D i s n e yS t o r e s
C o n s u m e rP r o d u c t s
W a l t D i s n e yC o m p a n y
( H o l d i n g c o m p a n y )
The Walt Disney Company (Holding Company)
( S E E B E L O W )
S t u d i oE n t e r t a i n m e n t
1 0 a f f i l i a t eT V s t a t i o n s
5 3 r a d i os t a t i o n s
A B C T VN e t w o r k
A B CR a d i o
E S P N c a b l en e t w o r k s
T h e D i s n e yC h a n n e l
O t h e r c a b l ec h a n n e l s
C a b l eo p e r a t i o n s
D i s n e yW e b s i t e s
M e d i aN e t w o r k s
W a l t D i s n e yW o r l d
D i s n e y l a n d D i s n e y l a n dR e s o r t P a r i s
T o k y o D i s n e yR e s o r t
D i s n e yV a c a t i o n C l u b
5 M a j o r R e s o t s
W a l t D i s n e yR e s o r t s
D i s n e yC r u i s e L i n e
M i g h t yD u c k s
A n a h e i mA n g e l s
A n a h e i mS p o r t s I n c .
D i s n e y R e g i o n a lE n t e r t a i n m e n t
P a r k s a n dR e s o r t s
R e t a i l e r s M a n u f a c t u r e r s P u b l i s h e r s
L i c e n c e e s T h e D i s n e yS t o r e s
C o n s u m e rP r o d u c t s
W a l t D i s n e yC o m p a n y
( H o l d i n g c o m p a n y )
The Walt Disney Company (Holding Company)
( S E E B E L O W )
S t u d i oE n t e r t a i n m e n t
1 0 a f f i l i a t eT V s t a t i o n s
5 3 r a d i os t a t i o n s
A B C T VN e t w o r k
A B CR a d i o
E S P N c a b l en e t w o r k s
T h e D i s n e yC h a n n e l
O t h e r c a b l ec h a n n e l s
C a b l eo p e r a t i o n s
D i s n e yW e b s i t e s
M e d i aN e t w o r k s
W a l t D i s n e yW o r l d
D i s n e y l a n d D i s n e y l a n dR e s o r t P a r i s
T o k y o D i s n e yR e s o r t
D i s n e yV a c a t i o n C l u b
5 M a j o r R e s o t s
W a l t D i s n e yR e s o r t s
D i s n e yC r u i s e L i n e
M i g h t yD u c k s
A n a h e i mA n g e l s
A n a h e i mS p o r t s I n c .
D i s n e y R e g i o n a lE n t e r t a i n m e n t
P a r k s a n dR e s o r t s
R e t a i l e r s M a n u f a c t u r e r s P u b l i s h e r s
L i c e n c e e s T h e D i s n e yS t o r e s
C o n s u m e rP r o d u c t s
W a l t D i s n e yC o m p a n y
( H o l d i n g c o m p a n y )
W a l t D i s n e yP i c t u r e s
T o u c h s t o n eP i c t u r e s
H o l l y w o o dP i c t u r e s
M i r a m a xF i l m s
D i m e n s i o nF i l m s
T h e a t r i c a l F i l m sB a n n e r s
B u e n a V i s t a H o m eE n t e r t a i n m e n t
W a l t D i s n e yT e l e v i s i o n
B u e n a V i s t aT e l e v i s i o n
A n i m a t e d T e l e v i s i o nP r o d u c t i o n a n d
D i s t r i b u t i o n
B u e n a V i s t aT h e a t r i c a l G r o u p
W a l t D i s n e yR e c o r d s
W a l t D i s n e yM u s i c P u b l i s h i n g
H o l l y w o o dR e c o r d s
M a m m o t hR e c o r d s
B u e n a V i s t aM u s i c G r o u p
The Walt Disney Company (Holding Company)
( S E E B E L O W )
S t u d i oE n t e r t a i n m e n t
1 0 a f f i l i a t eT V s t a t i o n s
5 3 r a d i os t a t i o n s
A B C T VN e t w o r k
A B CR a d i o
E S P N c a b l en e t w o r k s
T h e D i s n e yC h a n n e l
O t h e r c a b l ec h a n n e l s
C a b l eo p e r a t i o n s
D i s n e yW e b s i t e s
M e d i aN e t w o r k s
W a l t D i s n e yW o r l d
D i s n e y l a n d D i s n e y l a n dR e s o r t P a r i s
T o k y o D i s n e yR e s o r t
D i s n e yV a c a t i o n C l u b
5 M a j o r R e s o t s
W a l t D i s n e yR e s o r t s
D i s n e yC r u i s e L i n e
M i g h t yD u c k s
A n a h e i mA n g e l s
A n a h e i mS p o r t s I n c .
D i s n e y R e g i o n a lE n t e r t a i n m e n t
P a r k s a n dR e s o r t s
R e t a i l e r s M a n u f a c t u r e r s P u b l i s h e r s
L i c e n c e e s T h e D i s n e yS t o r e s
C o n s u m e rP r o d u c t s
W a l t D i s n e yC o m p a n y
( H o l d i n g c o m p a n y )
W a l t D i s n e yP i c t u r e s
T o u c h s t o n eP i c t u r e s
H o l l y w o o dP i c t u r e s
M i r a m a xF i l m s
D i m e n s i o nF i l m s
T h e a t r i c a l F i l m sB a n n e r s
B u e n a V i s t a H o m eE n t e r t a i n m e n t
W a l t D i s n e yT e l e v i s i o n
B u e n a V i s t aT e l e v i s i o n
A n i m a t e d T e l e v i s i o nP r o d u c t i o n a n d
D i s t r i b u t i o n
B u e n a V i s t aT h e a t r i c a l G r o u p
W a l t D i s n e yR e c o r d s
W a l t D i s n e yM u s i c P u b l i s h i n g
H o l l y w o o dR e c o r d s
M a m m o t hR e c o r d s
B u e n a V i s t aM u s i c G r o u p
The Walt Disney Company (Holding Company)