Management

Management

Managers are an important group involved in business activity. The term 'manager' may refer to a number of different people within a business. Some job titles include the word 'manager', such as 'personnel manager' or 'managing director'. Number of functions or elements of management:

• Planning

This involves setting objectives and also the strategies, policies, programmers and procedures for achieving them. Planning might be done by line managers who will be responsible for performance. However, advice on planning may also come from staff management who might have expertise in that area, even if they have no line authority.

• Organizing

Managers set tasks which need to be performed if the business is to achieve its objectives. Jobs need to be organized within sections or departments and authority needs to be delegated so that jobs are carried out.

• Commanding

This involves giving instructions to subordinates to carry out tasks. The manager has the authority to make decisions and the responsibility to see tasks are carried out.

• Controlling

Managers measure and correct the activities of individuals and groups to make sure that their performance fits in with plans.

• Coordinating

This is the bringing together of the activities of people within the business.

Individuals and groups will have their own goals, which may be different to those of the business and each other. Management must make sure that there is a common approach, so that the company s goals are achieved.

Founding a company

Founders of companies have to write a Memorandum of Association (in the US, a Certificate of Incorporation), which slates the company's name, purpose, registered office or premises and authorized share capital.

Premises (always with an 's' at the end) - is the technical term for the place in which a company does its business: an office, a shop, a workshop, a factory, etc.

Authorized share capital means the maximum amount of a particular type of share the company can issue.

Founders also write Articles of Association (US = Bylaws), which set out the rights and duties of directors and different classes of shareholders. Companies' memoranda and articles of association, and annual financial statements are sent to the registrar of companies, where they may be inspected by the public. (A company that files its financial statements late is almost certainly in trouble.) In Britain, founders can buy a ready-made "off-the-shelf company from an agent, that is, a company formed and held specifically for later resale; the buyer then changes the name, memorandum, and so on.

Globalization

Last 30 years there was a problem: staff of Boeing thinks of anywhere but Seattle as being exotic.

However, most important factories and headquarters are located out of Seattle.

Phillip Condit, new chairman of Boeing, wants to solve the problem by converting/transporting the

Boeing to global company in next 20 years.

Cause the company like Boeing cannot stay still the company, probably, give up their market position and lose profit.

Phillip Condit described his vision of Boeing Group in 2016, this company’s centenary year.

He plans that the Boeing become an global aerospace company.

He wish the Boeing has an global enterprise face, cause he was impressed by the way in which oil company have benefited from loosing national images such like BP, which nationally begun to disappear.

Condit believes that we are moving towards to era of global market and global companies.

Types of business

The simplest form of business is the individual proprietorship or sole trader: for example, a shop or a taxi owned by a single person.

If several individuals wish to go into business together they can form a partnership; partners generally contribute equal capital, have equal authority in management, and share profits or losses. But a partnership is not a legal entity separate from its owners; like sole traders, partners have unlimited liability: in the case of bankruptcy, a partner with a personal fortune can lose it all.

Majority of businesses are limited companies, in which investors are only liable for the amount of capital they have invested If a limited company goes bankrupt, its assets are sold (liquidated) to pay the debts; if the assets do not cover the debts, they remain unpaid.

In Britain, most smaller enterprises are private limited companies which cannot otter shares to the public; their owners can only raise capital from friends or from banks and other venture capital institutions. A successful, growing British business can apply to the Stock Exchange to become a public limited company; if accepted, it can public a prospectus and offer its shares for sale on the open stock market. In America, there is no legal distinction between private and public limited corporations, but the equivalent. of public limited company is one registered by the Securities and Exchange Commission.

Brands

Calvin Klein has been one of the leading fashion designers in North America market since mid 1970s. In the past CK took relatively passive approach to counterfeit problem. But now company established a network of employees and external specialist to uncover copyright abuse, because as CK brand became well known. They had seen a big increase counterfeit activity. CK brand became an increasingly popular target for Asian and European counterfeiters like other luxury brands such as Gucci, Chanel, etc.

The fake goods: mostly T-shirts, jeans, baseball caps. Such merchandise decrease companies income and damage its brand image. Because, buyers associate poor quality goods with well-known company.

CK decided to enter European and Asian market. So they begun aggressive attacks on counterfeiters.

CK stopped giving licensing rights to individual countries. They decided to sign long-terms deals with partners for entire region.