TOPICS :

1) NATURE OF BUSINESS ORGANIZATION

2) REASON & PURPOSES OF BUSINESS ORGANIZATION
3) TYPES OF BUSINESS ORGANIZATION
Definition

 What is BUSINESS?

The organized effort of individuals to

produce & sell, for a profit, the goods and
services that satisfy society’s needs
Combining Resources
Human
Resources

Material Informational
Resources BUSINESS Resources

Financial
Resources
Business Elements

Product

Growth Money

business

Tools Marketing

Team
 Vision
 An inspirational description of what an
organization would like to achieve or
accomplish in the mid-term or long-term
future. It is intended to serves as a clear guide
for choosing current and future courses of
action.
sources : http://www.businessdictionary.com/definition/vision-statement.html
 A mission is different from a vision in that the former is
the cause and the latter is the effect; a mission is
something to be accomplished whereas a vision is
something to be pursued for that accomplishment.
Also called company mission, corporate mission,
or corporate purpose.
sources: http://www.businessdictionary.com/definition/mission-statement.html
 Vision & Mission
 Company : Shell
Vision:
“To be the Top Performing and Most Admired Refinery
in Asia”

Mission:
i-Manufacturing and supplying oil products and
services that satisfy the needs of our customers
ii-Constantly achieving operational excellence
iii-Conducting our business in a safe, environmentally
sustainable and economically optimum manner
iv-Employing a diverse, innovative and results-oriented
team motivated to deliver excellence
Business Process
 A series of logically related activities or
tasks (such as planning, production, or
sales) performed together to produce a
defined set of results.
Sources : http://www.businessdictionary.com/definition/business-process.html
Business Process(cont.)
CUSTOMER

SEND LOAN
RECEIVE REQUEST
REQUEST

PROCESS
REQUEST

BANK
EMPLOYEE AUTOMATIC
APPROVAL

MANUAL SEND
APPROVAL ACKNOWLEDMENT Video: Business Process
Sales, Revenue and Profit
 Profit is what remains after all business
expenses have been deducted from sales
revenue. A loss (negative profit) results
when a firm’s expenses are greater than
its revenues.

Sales Revenue

Expenses Profit
What is an organization?
 A group of two or more people working
together to achieve a common set of
goals.
Organization chart
 Organization chart
-a diagram that represents the positions and
relationships within an organization
 Chain of command
-The line of authority that extends from the
highest to the lowest levels of the organization
 Staff(advisory) positions
-Jobs that are not part of the direct chain of
command in the organization
A Typical Corporate Organization
Chart
 Flow
 All businesses have a flow to their
production. Whether you rely on work
orders to start a job or call on clients to
make a sale, there is a flow to your work.
 Organizing that flow is tantamount to
completing each task so that you can
collect your pay
Cont.
 Communication
 Communication on every level must
follow a pattern so that you don’t miss
important client calls and deadlines.
 Developing a chain of command at your
company ensures that communication
flows properly to everyone who needs to
be involved in a company decision or
policy implementation
Financial Accountability
 Financial accountability is tied directly to
profitability.
 Organizing the billing process and
collections, employee payroll, expenses
and overhead bills is a function in business
that cannot be ignored.
Leadership

 Organizational functions that fall on the

leadership in your company include
managing your income, staff, growth,
planning, and all the processes that lead to
your profitability.
 The leader or manager in a company
coordinates all the other organized
functions to make sure they are aligned to
reach a common objective
 Sole Proprietorship
 A sole proprietorship is a business owned
by one person. The owner may operate
on his or her own or may employ others.
The owner of the business has total and
unlimited personal liability of the debts
incurred by the business.
 Partnership
 A partnership is a form of business in
which two or more people operate for
the common goal of making profit. Each
partner has total and unlimited personal
liability of the debts incurred by the
partnership. There are three typical
classifications of partnerships
- General partnerships
- Limited partnerships
- Limited liability partnerships
 Corporation
 A business corporation is a for-profit,
limited liability entity that has a separate
legal personality from its members. A
corporation is owned by multiple
shareholders and is overseen by a board
of directors, which hires the business’s
managerial staff.