Professional Documents
Culture Documents
What is Organisation?
Organisation is a type of entity that is formed for the purpose of providing some sort of services
or products to the society.
Types of Organisations:
i. Business Organisation
ii. Non Business organisation
Business Organisation
Business organisation is a type of organisation that purpose is to provide satisfactoryproducts
and services depends on what the company is based on, only to generate profit from the
customers or buyers for the company’s own benefit.
For Example:
McDonald’s is a private business organisation that is known for its quality of fast food and in
return they demand profit from its consumers.
Types of Business Organisation
There are three types of business organization:
Sole trader
Partnership organisation
Conglomerate organisation
Sole Trader:
An Individual who owns an informal type of Business Organization which is managed and
controlled by him/herself is called a Sole Trader
Partnership Organisation
A partnership is a business where there are two or more owners of the company. Most
partnerships are between two to twenty members but there are still some big organisations which
consist around hundred members.
Purpose
Purpose of partnership organisation is to have the work equally divided which gives its members
the advantage of receiving more investments and helpsincreasing sales.Partnership agreements
Increase the credibility with potential customers and suppliers who may see dealing with the
business as less risky than trading with just a sole trader.
Partnership deed
• Amount of capital each partner should provide.
• How profits or losses should be divided.
• How many votes each partner has based on proportion of capital provided.
• Rules on how to take on new partners.
• How the partnership is brought to an end, or how a partner leaves.
Advantages
Disadvantages
the liability of the partners for the debts of the business is unlimited
each partner is ‘jointly and severally’ liable for the partnership’s debts; that is, each partner is
liable for their share of the partnership debts as well as being liable for all the debts
there is a risk of disagreements and friction among partners and management
each partner is an agent of the partnership and is liable for actions by other partners
If partners join or leave, you will probably have to value all the partnership assets and this can be
costly.
Purpose
A Company is formed for different purposes but the major purpose of forming a company is to
build a well-known foundation and make more and more profit. Though making profit out of
business is usually the most important factor there are some business which are run just to serve
public and are non-profit organization.
Types of Companies
There are three types of companies:
1. Private limited
2. Public limited
3. Single member
Conglomerate Organisation
A conglomerate is an organisation that is made up of a number of different, seemingly unrelated
businesses. In conglomerate one company owns a controlling stake in a number of smaller
companies which conduct business separately. Each of a conglomerate's business runs
independently of the other business divisions but the subsidiaries management reports to senior
management at the parent company.
Purpose
The Purpose of Conglomerate organisation is to expand the business and to penetrate into
different markets according to the individual needs which helps grow the business more and
helps generate more profit for share holders.
Provides services that could be unprofitable if provided by firms in the private sector
Provides goods and services for those members of the community who cannot afford
them
Private sector
Private sector is a type of organisation that is owned and run by an individual or a group of stake
holders rather than the local government. Private sectors are mostly profit organisations and their
main purpose is to generate more and more profit.
One of the advantages of private limited company is that members are well known to
each other; however control is in the hands of owners of capital.
In the management of affairs and conduct of business is greater flexibility.
One of the disadvantages of a private sector is that it restricts transferability of shares by
its articles.
The number of members in any case cannot exceed 50.
In stock exchange shares cannot be quoted.(business study notes)
(study.com)
NIKE
Nike is an American multinational brand that produces quality products mostly sportswear such
as: Snickers, Jumpers and Trousers etc. It was founded in 1964 as Blue Ribbon Sports by Bill
Bower man a track and field coach at the University of Oregon and his former student Phil
Knight. They opened their first retail outlet in 1966 and launched the Nike brand shoe in 1972.
HISTORY:
Nike may be one of the youngest of the major brands, but it is the dominant brand around the
world. In 1963-1964 when University of Portland track coach, Bill Bowerman, and Phil Knight,
a mid-distance runner joined forces to import and provide low-cost, high tech running shoes
from Japan in order to provide alternatives to the German-dominated athletic shoe market.
Operating under the name Blue Ribbon Sports, Bowerman and Knight began to sell the Japanese
Onitsuke Tiger (now known as ASICS) running shoes. Jeff Johnson, a former rival of Knight,
joins the company in 1965 as their first full-time salesperson and sells shoes from the back of his
van at local and regional track meets until opening Blue Ribbon Sports’ first retail outlet at 3107
Pico Blvd, Santa Monica California. Click here to see a picture of the Blue Ribbon Sports
location in the present day. This store is no longer in existence, but the address remains.
Blue Ribbon Sports officially incorporates in 1967 and does business under this name until
approximately 1970 when Bowerman’s desire to improve on the shoe designs of Onitsuke Tiger
and Knight’s ambition to do more than simply import and resell running shoes. Inspiration must
have struck Bill Bowerman over breakfast one morning because he borrowed the family waffle
iron and pour rubber into to create the prototype for the now famous Nike Waffle Outsole. This
invention led Bowerman and Knight to begin designing other shoes, and the company’s new
name, Nike, Inc. was born when Jeff Johnson, dreams of the Greek goddess of victory, Nike. A
succession of shoes, many based on the waffle outsole follows. Some of the most famous are the
Waffle Racer, Air Force One, Air Max 93, Max 95, and Air Max 97.
1971 Nike’s Swoosh design logo was created by Portland State University graphic
design student Carolyn Davidson when asked by Knight. He needed a logo to put on
the side of his company’s shoes. At the time she was paid $35 (US), and also worked
for Nike for a few years until they needed a full ad agency. Twelve years later, in
1983, Ms. Davidson received a gold Swoosh ring with an embedded diamond at a
luncheon honoring her, along with a certificate and an undisclosed amount of Nike
stock, in recognition of the Swoosh design logo.
1979 Nike’s Air technology patented by inventor M. Frank Rudy is introduced in the
Tailwind running shoe. Gas-filled plastic membranes are inserted into the sole of
running shoes to provide cushioning.
1980 Nike completes an initial public offering of 2,377,000 shares of Class B
common stock on December 2.
1982 The Air Force 1 basketball shoe becomes the first Nike court shoe to make use
of the Air technology.
1984 Nike signs Michael Jordan to an endorsement contract and releases the first
model of his signature shoe, the Air Jordan. Originally, the NBA banned this new
shoe, drawing a tremendous amount of publicity. The introduction of the Air Jordan
shoe was a key event in Nike’s successful development.
1986 Nike revenues surpass $1 billion for the first time.
1987 The Nike Air Max shoe is introduced, which uses a much larger Air cushioning
unit, and for the first time is visible at the side of the midsole. This was the first of
many generations of Air Max-branded technologies. A television ad featuring the
Beatles’ song “Revolution” was the first and only time that a song performed by the
Beatles was used in a TV ad.
1988 Nike introduces its “Just Do It” slogan.
1989 Nike introduces a new type of footwear designed specifically for cross-training,
and features two-sport athlete Bo Jackson in a series of memorable ads called “Bo
Knows.”
1990 Nike opens the first Niketown store in downtown Portland, Ore., and the store
quickly earns numerous retail design and business awards. Over the next 10 years,
Nike will open 14 more Niketown stores across the USA and in England and
Germany.
1993 Nike introduces an innovative sustainability program, Reuse-A-Shoe, which
collects athletic shoes, separates and grinds them up into Nike Grind. this is used in
the making of athletic courts, tracks and fields.
1994 Nike signs a long-term partnership with the Brazilian national football (soccer)
team, launching a company-wide effort to become the world’s leading football brand.
1996 Nike signs Eldrick “Tiger” Woods soon after the young golfing phenomenon
gives up his amateur status. Woods becomes the standard bearer for Nike Golf as that
division gains market share.
1996 Nike causes controversy with advertising campaign at the Summer Olympics in
Atlanta which features the slogan, “You Don’t Win Silver – You Lose Gold.” Nike’s
use of this slogan draws harsh criticism from many sources, including several former
Olympic silver and bronze medalists.
1996 Nike opens Niketown New York, its signature ‘flagship’ store located in
midtown Manhattan.
1998 Phil Knight formally commits Nike to strict standards for manufacturing
facilities used by Nike, including: minimum age; air quality; mandatory education
programs; expansion of micro loan program; factory monitoring; and enhanced
transparency of Nike’s corporate social responsibility practices.
1999 Bill Bowerman, co-founder of Nike, dies on Dec. 24 at age 88.
2000 Introduction of the Shox athletic shoe technology.
2002 Rap Star Nelly releases a chart topping song about Air Force Ones.
2003 Nike makes a successful bid to buy bankrupt rival Converse Shoes for $305
million.
2003 For the first time in the company’s history, international sales exceed USA
sales, as Nike continues to develop into a truly global company.
2003 Nike is named “Advertiser of the Year” by the Cannes Advertising Festival, the
first company to earn that honor twice (also 1994) in the festival’s 50-year history.
2003 High school basketball star LeBron James signs with Nike, while Syracuse
University star Carmelo Anthony signs with Jordan Brand. James and Anthony finish
1-2, respectively, in rookie-of-the-year balloting.
2004 Phil Knight steps down as CEO and President of Nike, but continues as
chairman. Knight is replaced by William D. Perez as CEO of Nike, effective Dec. 28.
2004 Annual revenues exceed $13 billion.
2004 In June, Chinese animator Zhu Zhiqianq, of Xiao Xiao fame, files a lawsuit
against Nike for plagiarizing his cartoon stickmen in their commercials. Nike
representatives deny the accusations, claiming that the stickman figure lacks
originality, and is public domain. Zhu eventually wins the lawsuit, and Nike is
sentenced to pay $36,000 to the cartoonist.
2005 Nike launches the Air Jordan XX, the 20th edition of the iconic Air Jordan
basketball shoe series.
2005 Nike launches the Nike Considered line, an effort to reduce waste and introduce
eco-friendly products.
2005 Business Week Magazine features an article about the enduring popularity of
the Nike Air Force One.
Major Nike Product Lines
Air Flight
Air Force Ones
Air Jordan’s
Air Max
Air Penny
Air Trainer
Kobe
Lebron James
Nike Basketball
Nike Blazer
Nike Court Forces
Nike Dunks
Nike ID
Nike Retro
Nike SB
Nike Vandals
AIMS:
Nike’s main aim is to keeping the good quality of their manufacturing products and keeping the
good reputation in the market. Another goal of Nike is to keep evolving their brand so that it
stays relevant like it has been for the past decades.
(Reference.com, n.d.)
MAJOR CUSTOMERS:
Nike targets different customers with different products and strategies but their major goal is to
always target the people that are involved in some sort of sports cause this is what the brand is
mostly based on. Sportsman are Nike’s major customers so Nike uses different techniques to get
their attention by advertising athletes and their endorsements and organize different segments
which helps Nike get the most customers.
SELECT OEGANISTION 2:
Gourmet
Gourmet is a multinational brand conducting its business from Pakistan and it’s also considered
conglomerate organization because of its extension into many different sectors. Though gourmet
is mostly known for its Food products it also has its business investment in a News channel
known as GNN (Gourmet News Network), Furniture, Restaurant.
HISTORY:
Gourmet was founded in 10 September 1987 in Lahore by Mr. Ch. Muhammad Nawaz Chatha
and started its operations as a bakery and confectioner shop. Gourmet Food introduced new
services such as Gourmet Dairy products, Restaurant, Beverage, catering and increased its
complement of products and outlets capability.
AIMS:
Aim of Gourmet food is very clear judging by their tag line “Chamkegharghar me” which
generally means “It blesses every home” so the main aim of gourmet food is to become a well-
known brand not only locally but internationally so they keep develop their products and
penetrate into different markets.
MAJOR CUSTOMERS:
Gourmet is considered a conglomerate organisation because of its investment in multiple sectors
and different manufacturing products.
1. Owner
2. Employees
3. Manager
1. Sponsors
2. Medical staff
3. Raw material suppliers
i. Inactive
ii. Proactive
iii. Reactive
iv. Interactive
Inactive
Inactive strategy involves no engagement what so ever, they do not engage with their stake
holders and have no concern with their needs regardless of losing their loyalty.
Example:
LESCO (Lahore Electric Supply Company) uses the Inactive strategy because no matter how
their stake holders react they still conduct the business according to their rules and do not make
any changes with their system.
Proactive
Proactive strategy involves professionalism that means actively dealing the stake holders and
consider their needs and wants in advance.
Example:
Facebook is a prime example of Proactive dealing because of it surveys and active reactions to
their users security issues.
Reactive
Reactive strategy is applied when stake holders put a pressure on the management to take action
and make changes to the system.
Example:
When a local food company was inactively dealing with its customers and was providing
unhygienic food so PFA (Punjab Food Authority) took action against it and pressurized them to
maintain the hygiene.
Interactive
Interactive strategy is used to work according to the customer’s needs and demands to put a good
impact on its stake holders and keep a good reputation.
Example:
BETS Institute applies interactive strategy with its students and takes their feedbacks on daily
basis to make their management better.
Business Activities
The Following are Business activities:
Primary
Secondary
Tertiary
LocalOrganisation
A local organization is a type of organization that is run at a particular place or area and is only
performs locally. A local organization can either be private or public both depends on who’s
owning its share.
International organization
An International organization is a type of organization that is operated in one particular place or
a country but also deals with international customers living abroad. Though international
organization supplies its product internationally it doesn’t operate or have any franchise in the
countries they supply their products to.
Multinational Organisation
A Multinational organization is very much like internal organization but the major difference is
that unlike international organization it operates at multiple places and has multiple franchise
depends on the global demand of the brand.
P3
Nike by
Shoes Shoes Shoes Shoes
you
This structure shows the product and market divisional structure of Nike. Nike has divided its
products in different sections according to its targeted customers.
Area
Structure of
Nike
Being a Multinational brand Nike has made multiple head offices in different parts and areas of
the world and actively operates all of its officesin different continents and countries.
Product and
Market structure
of Gourmet
Gourmet is a conglomerate organization and has its business operating into multiple different
sectors. This chart only shows the food manufacturing sector of the gourmet products known as
“Gourmet foods”.
Area structure of
Goumet
Lahore
Multan
Sialkot
Wazirabad
Faisalabad
Sarghoda
Rawalpindi
Sheikupura
Gujrat
Jalalpur Jattan
Sheikhupura
London
New York City
Sahiwal
Chakwal
This is the Area structure on Nike showing its branches in different cities of Pakistan and in each
city gourmet has multiple branches in different areas of the city. Gourmet also has its branch in
New York and London which makes the gourmet brand a multinational organization.
What is Organisational Structure?
Organisational structure is a structure made to show the duties divided into groups in any
organization from top to bottom to determine the position and the roles of the stake holders and
their power of control in the organization.
(organizational structure)
Key Elements:
Work Specialization
Departmentalization
Chain of Command
Span of control
Centralization and decentralization
Formalization
Work Specialization
Work specialization is used to divide work to a certain degree and to separate the different
activities performing in an organization. Work specialization also helps creating Productivity and
efficiency.
Departmentalization
Chain of Command
Chain of Command describes the unity of a department or a group at a work place because it
requires the group to follow and report their head. Chain of command can break if even one
individual from the group reports someone else other than their manager or leader.
Span of Control is a term used to define how many individuals and workers at an organization
can work under a manager and if the manager is willing to direct them effectively and
professionally.
Centralization and Decentralization are the two different types of structure used to describe
where the authority of making decisions stands. Centralization of authority means the power of
planning and control and it’s in the hands of the top level management.
Formalization
Formalization is used to describe the written rules and regulations set by the management or
authority for its employees to follow strictly in order to work formally and professionally in the
organization.