Month: February 2022

A consortium is a short-term arrangement in which several firms (from the same or different industry sectors or countries) pool their financial and human resources to undertake a large project that benefits all members of the group. A consortium lasts Read More …

Small companies usually use one of two types of organizational structure: Functional and product. Functional areas such as marketing and engineering report to the president or CEO in a functional organizational structure. Product structures are used when a company sells Read More …

1. Strategy The best approach to organizational design tailors it to a company’s strategic plans. The plans, meanwhile, follow from a company’s vision, which itself follows from the company’s mission. Mission is a business’ reason for being its purpose. Vision Read More …

In choosing a company’s organizational structure, management is searching for the one that will bring the company’s moving parts together into a well-coordinated, efficient and effective unit. The choice is important because the right groupings of people and work facilitate Read More …

Decentralization can be viewed as an extension of delegation. This is where purchasing functions and activities are divided into relatively autonomous units with overall authority and responsibility for the operations delegated to lower levels of authority. The degree of decentralization Read More …

Decentralized purchasing is just the reverse of centralized purchasing. This is suitable in organizations running more than one plant. Under this type each plant has its own purchasing agents. In other words, every department makes its own purchases. This is Read More …

Under centralized purchasing, purchases are made at one central point for the whole organisation and material is issued to respective departments or jobs as and when needed. Centralized purchasing is suitable in cases where the organisation runs one plant. It Read More …

A business owned by the government and run by Directors appointed by the government. These businesses usually include the water supply, electricity supply, etc. The government gives the directors a set of objectives that they will have to follow: To Read More …

A cooperative is a business organization owned by a group of individuals and is operated for their mutual benefit. The persons making up the group are called members. Cooperatives may be incorporated or unincorporated. Some examples of cooperatives are: water Read More …

Public limited companies are similar to private limited companies, but they are able to sell shares to the public. A private limited company can be converted into a public limited company by: 1. A statement in the Memorandum of Association Read More …