Companies:

Walmart pvt ltd

KFC pvt ltd

Jpmorgan usa public limited

Learning Outcome: 1

Types of organization
Private Limited Companies: Private limited companies are privately held small business
organization whose liability is limited by shares. It can have maximum of 50 shareholders. The
main purpose of this type of organization is to maximize profit by providing the market with
products and service as per the demand of the costumer. An example of private limited company
is AA polish supplies ltd. The owner of the company is Afran Amboky who buys construction
supplies from Poland and sells them in UK. Company has 8 shareholders and every shareholder
invested 25,000 pounds as the initial cost of the business. And another suitable example is of
KFC the owner of the brand started with a very small business.

Public limited companies: Public limited companies are involved with the public by freely
trading company’s shares on the stock exchange. In this type of organization the shareholders
have limited liabilities.
Organizational structure of British Airways:

Figure: 1 Organizational structure of British Airways

Legal Structure:
Sole Traders: Sole traders are individuals having a total control over their business. They work
without any partners or funds. The purpose of sole trade is to keep a total control over the
business to maximize the profit and appropriately use the available resources. The individual is
accountable for all sorts of losses and debts. These types of business are easy to set up with little
legal requirements. Kurt Geiger is one of the successful and famous sole trader selling shoes and
accessories in London since 1963. Currently operating at 70 locations globally. Number of
employees is 17000 with its revenue being 260 million pounds. Kurt Geiger is large enterprise.
Sole traders do not submit to any legislations an individual can start its own business whenever
they are willing to do so although they have to follow the law. The capital investment is made by
the owner all by himself but they can take loans and return them when they’ve earned the profit.
The liabilities of the business on the owner are unlimited.

Partnership: Business entities that are owned by more than one party. Their purpose is to equally
divide the profit and loss between the partners and to bring together the best qualities of both the
partners to make the business successful. These types of business are easy to set up and the
availability of large capital makes it much easier. All the profits and loss are equally divided
between the partners. Partners are not allowed to transfer their share to any other person outside
Figure: 2 Organizational Structure of Warner Bros
The business without the consultation of their partners. Example of partnership is Warner bros
an American entertainment company owned by Harry, Albert, Jack and Sam Warner. The
company was found on 4th April 1923. Organizational structure of the company is shown above.
Company produces Films, T.V shows and Video games. Number of employees is 8000 the
operating income of the company is $1,416 billion and the revenue of the company is $12.992
billion. It has its headquarters at 400 location in the US. Their main aim is to earn maximum
profit and this aim is achieved by providing the world with quality entertainment
Limited companies are explained above.

`1Voluntary Companies
Voluntary companies are the ones in which a class of people comes together to achieve a task.
The task is not to earn profit but to solve and address a social or political issue. American Red
Cross is one the largest charitable organizations in the USA. Headquartered in Washington DC.
The number of employees it has is 30,000 and volunteers are up to 1 Million. It helps victims of
disasters and responds to around 70,000 disasters in US every year. Educates and trains around 4
million people about lifesaving skills and first aid. Supplies 6 million units of blood from 4
million donors. The money to provide all these services comes from grants, funds, individual
donations and Fund raising events which are held annually.

Public Sectors
Public sectors is the area in the economy which is controlled by the state. Public sectors include
all those facilities which a government is providing to the people such as schools, hospitals,
electricity, emergency service, health care etc. The purpose of these sectors is to facilitate the
people of the state with basic necessities as it is the responsibility of the government. Public
sectors are accountable to the company and there financial frameworks are set up by legislations.
These companies have multiple objectives rather than one.
Private sectors
Private sectors are the opposite of the public sector it is the portion of the economy which is not
under the control of state but under the control of people. This includes all sort of businesses,
sole trading, Partnership, Small and medium sized enterprises and large scale business. The main
purpose of private sectors is to earn profit. No state is involved in private sectors and there main
objective is to earn profit unlike the public sectors.

Joint ventures
Joint ventures are two or more companies coming together for business unlike partnership in
joint ventures companies come together not individuals. Example of joint venture is NASA and
Google coming together to develop maps.

Franchise
The core purpose of the organizations which are following the franchisee model is to the brand
value, reputation, expertise and experience of the franchisor. The best example of franchising are
KFC and McDonald’s. Franchisor also gets substantial amount of fees in name of license and its
brand value gets widespread footprint (Kaplan & Norton, 2001:32-37)

Licensing
Is an agreement between two companies where one company allows the other company to
produce and sell products under the name of the first company. This is a way to spread the name
of the company but this is a very slow process of marketing.