Sole traders Partnerships Limited liability companies

Definition "Single people who "Two or more people +) "Limited public

carry on their own who share their corporations: traded on the
business" business "A business Official Bursary"

Risks and incentives" +) Private limited company:

Ltd or Limited shall be
included as shareholders and
whose shares are transferable
only through direct contract
and acquisition from
shareholders"

Advantages 1, “Simple to begin” 1, “Easy to 1, “Limited liability”

2, “Lead the owners” start” 2, “Ability to raise

3, “Every profit is 2, “Easier to money by selling stock”

maintained by the
obtain capital” 3, “Business does
owners”
3, “Not dependent not end when an owner dies”
4, "Lower taxes than
those of a company" on a sole person”

4, “Only taxed once”

Disadvantages 1, "Credit limited 1, “Ownership 1, “Double taxation: Income

access" transfer is taxed and stockholders
pay taxes on profits issued to
2, "A lot of the money is difficult”
them”
runs out"
2, “Unlimited legal
2, “More government
3, "Not the owner's and financial liability
skills may be required" is shared” Regulation”

4, “When the owner 3, “If one partner 3, “Difficult and

dies, the business
 ends” makes a mistake, costly to start”

all partners are

responsible”

INTRODUCTION
(Quia - Chapter 6 Vocabulary, 2020).
*) OTHERS
1, FRANCHISE: “A contractual agreement in a designated geographical area for the
use of the name and the sale of products or services of a company” (Quia - Chapter 6
Vocabulary, 2020).
2, CO-OPERATIVES: “A company owned and operated by its members, which may
be customers, employees or business groups” (Quia - Chapter 6 Vocabulary, 2020).
3, NON-PROFIT ORGANIZATION: “A kind of company aimed at providing a
service and not profiting” (Quia - Chapter 6 Vocabulary, 2020).
COMPARISION BETWEEN PUBLIC AND PRIVATE SECTOR
PUBLIC SECTOR PRIVATE SECTOR

“Owned by individuals or by thousand” “Run by government”

“Personal gain” “Interests of the community”

“Funded by share issued, loans from “Funded wholly or partly by Government

banks, overdrafts” from public fund”

(Sector, 2020)
1, PARTNERSHIP ( MCDONALD’S)

+) Introduction
In 1940, McDonald's was founded by Richard and Maurice McDonald in San
Bernardimo, California. It was the largest chain of fast food restaurants serving 69
million customers daily in 119 countries, headquartered in Oak Brook, Illinois, USA
(B, 2020).
+) Size

 “McDonald's is the largest fast food chain in the world with more than 38,000
restaurants around the world serve 69 million people every day” (article, 2020)

 “McDonald's employs more than 200,000 workers worldwide”

 “Market capitalization of more than $150 billion” (THEN AND NOW: photos
show how McDonald's has changed over the years, from its menu to its mascot,
2020).
 “McDonald's generated a total revenue of US$ 21.08 billion in 2019” (McDonald
Revenue 2019 Statista, 2020)

+) Scope

 “McDonald’s is a multi-domestic company with more than 37,000 locations in

more than 115 countries”.

+) Vision

McDonald 's vision is to "move quickly to drive profitable growth and become a
better McDonald's serving more customers than delicious food every day around the
world." McDonald's overall competitive strategy and intensive growth strategy
support the growth and expansion goals outlined in this company's vision statement
(McDonald's Mission Statement & Vision Statement – Panmore In Analysis) )

+) Mission

The mission of the McDonald Group is to "become the customer's favorite place and
way to eat. This mission statement highlights the importance of customers as the
focus of business, while retaining the company as a major influence on their buying
decisions for food and beverages. McDonald's developed menus and recipes for quick
foods, such as burgers and chips, to satisfy consumer preferences. (McDonald's
Mission Statement & Vision Statement (An Analysis)-Panmore Institute, 2020)

+) Products

1, “Beverage: Cold-Coffee, Ice tea, Mcshakes”.

2, “Non-Vegetarian Menu: Filet-Ol-Fish, Chicken McCurry Pan, Mc Chicken”.

3, “Vegetarian Menu: Crisp Chinese, Mc Veggie, Pizza McPuff”.

+) Objectives

 Sweep Market Share Objectives – Market share can be achieved within a

specified period of time if targets are precisely set (FAQS | McDonald's UK,
2020)
 Access to profits – the objective is to increase profits or a percentage of sales over
a certain period of time (FAQS | McDonald's UK, 2020).
 Sweep Survive – The present difficult times the business is in (FAQS |
McDonald's UK, 2020).
 Pary Growth – Business objectives may indicate growth of 15% year on year for
the next 5 years to come (FAQS | McDonald's UK, 2020).

+) Key stakeholder:

Types of stakeholders Relationship

Internal 1. Employees “One of the world's largest employers”

(reporting, 2020).

Connected 1. Customers - “Affect the survival of a company

customers” (reporting, 2020).

2. Suppliers “A number of suppliers purchase both foods

and non-food products” (reporting, 2020).

+) Achievements

“McDonald’s Honored with “World's Best Multinational Workplaces” Award 2012”

(Work, 2020)
“Golden Arch Award Winners 2018” (Accomplishments: Past & Present –
McDonald's Texas, 2020).

+) ORGANIZATIONAL STRUCTURE

1, Functional structure

Figure 1: The functional of McDonald’s

B
L
P
b
m
w
T
ff
R
ls
S
ti
x
y
k
A
g
M
d
H
u
rto
McDonald's has an organizational structure, headed by the CEO, under the
board of directors, followed by the departments.

2, Hierarchy structure
p
e
D
c
a
in
F
O
E
C
 Pinterest.com

Figure 1.1: The hierarchy structure of McDonald’s

As shown in the table above, you can see how things are structured along the lines.
They start with CEO, Head, Executive, etc. Their hierarchy. McDonald's has a
centralized structure in which management develops policies and choices. Procedures
and regulations that make them rigid. Besides, McDonald's have a wide span of
control from one department to the other departments that oversee and guide their
respective sub-departments and their staff. McDonald's, on the other hand, has a flat
structure with a set of controls at each level. However, McDonald’s lacks efficiency
and effectiveness in decision-making due to the lack of flexibility in their
organizational structure.

+) Legal structure:

- The company was first set up by the brothers Richard and Maurice ("Mick &
Mack") McDonald.

- Each partner in McDonald’s contributes an agreed amount of capital.

- McDonald’s company is taxed only once.

- It is not dependent on a sole person.

- McDonald's has unlimited legal and financial liability.

- If one of the partners in the company makes a mistake, all partners are responsible
for this.
2, LIMITED LIABILITY COMPANY ( UNILEVER)
+) INTRODUCTION

“Unilever is a multinational company established by the United Kingdom and the

Netherlands, specializing in the production of consumer goods such as cosmetics,
cleaning chemicals, toothpaste, shampoo, food, etc. Born in 1930 from the merger of
two companies, Lever Brothers (a soap maker in the UK) and Magarine Unie (a
margarine producer in the Netherlands). It is located in two locations: London and
Rotterdam” (Vietnam, 2020)

+) Size

- “This company is owned by a number of large companies producing consumer

goods, food, laundry products and cosmetics worldwide” (Unilever, 2020).

- “The number of employees is now 155,000”.

- “Unilever reported a total revenue of $58.2 billion for the whole of 2019”.

+) Scope

- “Unilever is one of the oldest multinational companies; its products are available in
approximately 190 countries” (Unilever, 2020).

+) Products and brands

1. Food line for food and processing.

2. Line of personal care and hygiene products.

3. Line of laundry detergent for apparel and household items.

“With 3 product lines, Unilever currently owns more than 400 brands, including many
of the most famous brands including OMO, Surf, Lux, Dove, Knorr Comfort,
Vaseline, Hazeline, Ponds, P / S. , Signal, Close Up, AX, Rexona, Vim, Cif, Sunsilk,
Sunlight” (Vietnamese 2020)
+) Vision: “Business development goes hand in hand with positive social
improvement and minimization of environmental impacts” An example is the creation
of Unilever's 10-year Sustainable Development Plan to separate corporate growth and
its environmental impact, while simultaneously enhancing the positive impact for
society (What is Unilever? Unilever 's mission, vision and strategy in Vietnam, 2020).

+)The mission of Unilever is to "energize life." “The meaning of this mission is that
Unilever wants to bring a better life to all through its products. Until now, this
mission has become increasingly evident through every Unilever product, when all
the products of this group are aimed at the same goal, which is to bring health, beauty
and comfort to children. People, man. The proof for this is that Unilever 's famous
brands are very diverse from detergent, shampoo, toothpaste to tea, such as Omo,
Dove, Close-up, Lipton” ...(What is Unilever? Unilever 's mission, vision and strategy
in Vietnam, 2020).

+) Business objectives

“Unilever has three ambitious targets for 2020: helping one billion people improve
their health and well-being, improving their livelihoods and halving the
environmental impact of their products”.

+) Key stakeholder
Types of stakeholders Relationship
Internal 1, Employees Direct effect on the
organization's performance in
the consumer goods sector.

2, Investors - Commodity business.

Connected 1, Consumers - Focused on product quality
and price.

- Consumer goods business'

environmental impacts.
2, Suppliers - Profitable business with the
firm.
External 1, Communities - Environmental protection and
development in the
community.

(Unilever’s Corporate Social Responsibility & Stakeholders - Panmore Institute,

2020).

+) Achievements

1. “Unilever was named winner of the 2013 Gold Medal for International Business
Achievement in Sustainable Development” (WIRE, 2020).
2. “Unilever Vietnam has just been honored by the Vietnam Chamber of Commerce
and Industry (VCCI) and the Vietnam Business Council for Sustainable Development
(VBCSD) in the Top 100 Sustainable Enterprises of 2019 and Top 10 in the
Production Category” (NEWS, 2020).

+) Organizational structure

“Unilever has the organizational structure of a product type division. Based on its
product focus, the organization is divided into components”. For example, the
company has a personal care product division and another home care product
division. The main features of the organizational structure of Unilever are as follows:
 Product type divisions: The product category division is a unit which Unilever
can use to manage its consumer development, production, distribution and sales.
For example, business managers use this feature of their organizational structure
to respond to market needs with suitable products.

Figure 1: Product type division of McDonald’s

 Corporate management teams: A characteristic of Unilever's corporate

structure. The structural function depends on the functions of the company. For
example, Unilever has a financial and marketing team. These groups are created
by the Unilever Management Team (ULE).
 Figure 2: Corporate management teams of McDonald’s

+) LEGAL STRUCTURE

1, “The Company can advertise its shares on the stock market to the general public”
(Lowry, and others 2006, p.9).

2, “Registered as a limited public liability firm” (Company Law 2006, 58(1)).

3. “Unless it has issued a "S 117 certificate" and has its registered office (Companies
Act 2006, 86), a Public Company cannot start a business or lend any capital”

4, “ Double taxation of Unilever”.

3, LIMITED LIABILITY COMPANIES ( FACEBOOK)

+) INTRODUCTION

“Facebook, an American company offering online social networking services.

Facebook was founded in 2004 by Mark Zuckerberg, Eduardo Saverin, Dustin
Moskovitz and Chris Hughes, all students of Harvard University. Facebook has
become the world's largest social network, with more than a billion users using
Facebook every day since 2012. The company is based in Menlo Park , California”
(Facebook Overview, History & Facts, 2020)

+) Size
 “Facebook claims that there are more than 2.3 billion active users per month in
December 2018” (Facebook has amassed 2.3 billion users in 15 years-more than
Christian followers in 2020)
 “The number of employees in 2020 is 52,534”.
 “Revenue: According to the Fossbytes technology website, advertising accounts
for 98% of Facebook's total revenue and its 2019 ad revenue is $69.4 billion”.
+) Scope
“Facebook is multinational company. In particular, India, the US, and Indonesia
are three of the countries with the largest Facebook population with 310 million, 190
million and 140 million Facebook users respectively” (Facebook users by country
2020 | Statista, 2020).
+) Vision

“Facebook's corporate vision statement, based on its social media services, is “People
use Facebook to stay connected with friends and family, to discover what's going on
on the world as well as share and express what is important to them ”(Facebook Inc.'s
Mission Statement & Vision Statement (An Analysis) - Panmore Institute, 2020).
Facebook, for example, has extremely practical features. Like: text, listen, share
emotions and freely comment on posts for other people.

+) Mission

Facebook's corporate mission is to “give people the power to share and make the
world more open and interconnected”. For instance, social media can be used by
people to facilitate communication and information sharing among community
members. These include districts, organizations, interest communities and many
virtual communities (Facebook Inc. Mission Statement & Vision Statement (An
Analysis-Panmore Institute, 2020).

+) Objectives

 “Provide a place for students to share personal news, events, announcements, and
perhaps most important photos”(Meza, 2020).
 “Having remained independent, Facebook is not a public company and retains its
independence” (Meza, 2020).
 “Build a community for those who are connected in real life” (Meza, 2020).

+) Key stakeholder:

Types of stakeholders Relationship

Internal Employees Management, development and

improvement of online social
media services for users and
advertisers on Facebook.

Connected 1, Users Determine Facebook popularity

and its display ad services
response.

2, Advertisers - Facebook's main source of

income.

- Advertising services, a
sufficient user base and precise
Facebook (Kissinger) data are the
interests of these stakeholders.

External 1, Government Maintain company compliance,

including conventional, with
public policies.

2, Community - Influence user/member

perception and advertiser
perceptions.

- Encouragement of business
development.

(Facebook Inc. Corporate Social Responsibility & Stakeholder Analysis - Panmore

Institute, 2020).

+) Achievements
Facebook won 13 awards in 2019 and 5 awards in 2020.

“In 2019, Facebook won Best Companies for Diversity 2019, Best Companies for
Women 2019, Best CEOs for Women 2019, Best Corporate Culture 2019, Best Perks
and Interests Best Corporate Compensation, and so on”. (Facebook Awards 2019,
2020)

“In 2020, Facebook wins Best Company Perks and Perks, Best Company
Compensation, Best Corporate Happiness, 2020 Best Leadership Team and
Outstanding CEO Best Women 2020” (Facebook Awards 2019, 2020).

+) ORGAIZATIONAL STRUCTURE

A, Hybrid of Hierarchical

Figure 1: Hybrid of Hierarchical of Facebook

The company is headed by Mark Zuckerberg, Chairman and CEO, followed by
CIO, CFO, and COO.

 COO: There is also a CEO in the ranks who oversees all business, from
marketing, resource development, communications, human resources, the mobile,
advertising platform and the global platform, to name but a few. Each of these
operations is conducted by one individual and monitored by the COO.
 Security: Also under the Board of Directors is the head of security operations.
This department is headed by another person looking at the security issues of the
social network company.
 Product: The product department consists of a product and a publicity and is
again managed by a person responsible for all the services involved.
 Legal: There is also a legal department dealing with Facebook public policy.
 Engineering: The Engineering Section has several sub-sections including
software development, engineering & product and the engineering of
infrastructure.
 Community and Marketing: The Consumer Marketing Team, Partners & PRs
are part of this section.
 Treasure: The CFO of the financial company also includes a treasurer.

B) The structure of Facebook's matrix organization is. The main characteristics of

this structure address the business needs, especially the need for creativity and
innovation. Noteworthy are the following key characteristics of the Facebook
business structure:

1, Corporate Function-based teams

 Figure 1.1: Corporate Function-based teams

Following is the vertical model of the structure of the Facebook organization. IT security;
business development; marketing center; financial and technical center are the key
components. There are a number of subgroups in all these major divisions. Examples of
the Marketing Team roles include advertising groups, global marketing groups, marketing
groups, consumer analysis groups and public relations.

2, Geographic Divisions

Figure 1.2: Geographic Divisions

A further key feature of Facebook's business structure is the regional division. Companies
that use these divisions rely on various social media and online market dynamics. This
structural feature deals with the difference between human and advertising behavior on
the social website and app of Facebook Inc. For example, Latin American advertisers
tend to use social media services in companies in a different way from European
advertisers.

3, Product-Based Divisions.

Figure 1.3: Product-Based Divisions.

Facebook Inc. use the product-based components of organization structure. This

structural feature concerns corporate groups or global management activities related
to specific products.

Facebook is providing its corporate structure into 3 parts:

 New platform
 Apps
 Central Product

+) CTO will head up Newplatforms and infrastructure which consist of:

+) CPO will run Apps which consist of:

+) VP of growth is responsible for Central product services which consists of:

+) ADVATAGES AND DISADVANTAGES OF FACEBOOK’S
ORGANIZATIONAL STRUCTURE

1, Facebook Inc. and its multinational social media and online advertising activities
are flexibility provided by the Matrix Organization Structure. This flexibility is a
structural benefit that makes it easy for the company to react to market changes and
trends.

The ability to exert considerable control over the company is another advantage of
this company structure. Corporate functional groups, for example, are a functional
function that allows Facebook Inc. to maintain global control and management.
Product-based components also encourage product development creativity and
innovation.

2, The organizational structure of Facebook Inc., despite its advantages. The

downside is that directives across an enterprise structure can be difficult to
implement. This challenge is caused by differences in regional company-based
management initiatives. These departments are however, necessary to ensure the
company meets the socio-cultural and political differences.

B) Flat structure + Span of control + level of management+layers

 Facebook has a flat organizational structure with narrow span of control, where
there are fewer subordinates accountable to manager.

 The process of removing levels from an organizational hierarchy can help in

certain way to improve the business by reducing costs, improve speed of
communication and more flexible working practices.

 Facebook has decentralized decision-making that reduces the burden on the Chief
Executive Officer).

C, LEGAL STRUCTURE

1. Facebook has ability to raise money by selling stock.

2. If the LLC is sued, the personal property of Mark shall be waived.
3. Zuckerberg would also not face an additional tax burden on the LLC, but would
instead be taxed as individuals on any profits that the LLC perceives.
D, IRRELATIONSHIP BETWEEN DEPARTMENTS
1. Business Department and Marketing Department
 Business development and marketing are going hand in hand. And as they
synchronize, your company can see visibility, growth, profits, and more.

As can be seen in the above chart, Facebook's revenues increase year by year as the
two departments combine.
 As you can see, both departments solve the same problem to attract existing
customers and leaders.
 The business development team may lead a better leadership and quality of its
marketing team while the marketing team can expect business growth to improve
its way of nurturing and integrating. Potential clients.
 Participation-Marketing can be associated with business development to
encourage sales pitches for SMEs for industry events and conferences.
2. Marketing and Information Security
“The company also has over 800 million user information with a large number of
users” (Protalinski, 2020). Facebook is a company called "Made in USA" and the
American people are a very important factor in information security, so security is
placed on top of Facebook and is considered to be the philosophy of its marketing
communication campaigns. Facebook has proven to be a highly secure brand with a
variety of change and trust marketing strategies for its users.
Facebook has announced the following:
"We will further restrict developer access to data to prevent other types of abuse"
(Facebook And Data Security: What It Means For Marketers | adQuadrant, 2020).

A further step is to make it easier for users to adjust their privacy settings. "We've also
removed outdated settings to make it clear what information can and can't be shared
with apps" (Facebook And Data Security: What It Means For Marketers | adQuadrant,
2020).
3, Advantages and Disadvantages of organizational structure
a, Advantages
It is economical
As stated above, there is little management between the operator and the employee
within this organizational structure. This means that the management has fewer
paychecks, additional benefits, etc to pay. Wage costs are reduced, helping firms save
money and better pay staff.
It encourages quick decision-making
There are less decision-making holes. Another advantage of a flat organizational
structure. A decision should be consulted by fewer people, so that management can
respond quickly to any issues or concerns. It creates a direct communication between
the owner (or CEO) and the person on the front line (workers). It creates a direct
communication link.
It provides for clear communication
When information is transmitted through a series of ears and mouths, it usually turned
out to be either distorted, buffed, or deflated. There is a large chance of
miscommunication when communication passes through many management levels.
The flawed organization, allowing management to make direct contributions from
employees and vice versa, helps to avoid this.
It calls for less dominance and control
Many think that a company leader, including the employees, must be able to monitor
and manage everything and everything within the company. However certain studies
show that they are not. Because the fewer time managers are required to helicopter or
micro-manage their employees, the more productive they are when they get to know
each other more.
b, Disadvantages
Controlling Can Easily Lose
This structure, as mentioned above is suitable for startups and small companies that
still manage the number of employees. If the ratio of employees to managers is too
small, the system can pose a problem for the organization as a whole. When fewer
people put a stop to bad behavior and fewer people support or back them on their
decisions, the management can easily lose control.
Could fight labor-relationship
If management has too many people to run every day, it may be difficult for managers
to connect with their employees in an individual capacity, which is crucial in
maintaining trust and strengthening the basic responsibility and accountability of
employees and the organization. This con can have a significant impact on an
organization's respect and moral standards at the authority level.
It can create power fighting
It has been shown that employees often lack a particular boss, especially when there is
nothing about their owner or CEO. This is a corporate structure. This can generate
confusion among management staff and possible power struggles.
May cause confusion in roles
An employee may come to work in a house to play a defined role, but he or she must
do more. This makes it difficult for employees to concentrate on their tasks and work.
Comparison between 3 companies
Comparison McDonald’s Unilever Facebook

Founded 1940 1930 2004

Headquartered Oak Brook,Illinois UK and Menlo Park,

Netherlands California

Product/Services 1, Beverage 1, Personal Care 1, Facebook

2, Non-Vegetarian 2, Foods 2, Messenger

3, Vegetarian Menu 3, Home care 3, Instagram

4, Refreshment 4, Oculus
Type Public Company Public public corporation
corporation

Area served Multi-domestic Multinational Multinational

Size Large Large Large

Legal Partnership Limited Liability Limited Liability

Organizational 1, Functional Product Type 1, Hybrid

Structure Divisional: Hierarchical
structure
2, Hierarchy 1, Product type 2, Matrix
Structure divisions Structure:

2, Corporate - Corporate
management Function-based
teams teams

- Geographic
Divisions

- Product-Based
Divisions
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