How companies may differ in form, aim and shareholder structure.

Paper Type:  Course work
Pages:  7
Wordcount:  1886 Words
Date:  2022-07-01

Companies differ significantly in terms of form, aim and shareholder structure since their goals are fundamentally different. In the aim, the companies especially the public companies may be concerned with serving the public and providing quality control in order to protect the interests of the public. On the other hand, a private company or rather a partnership may be aiming at creating profits as well as attaining the set objective of creating markets and remaining relevant in the competitive market. With the different aims, the diverse companies have great significance to its customers since they satisfy the specified need.

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The form mainly implies the organizational structure whereby the form is built depending on the company's goals and the industry in which it operates. Small businesses and start-ups which are mainly partnerships may use a functional structure whereby the employees are grouped in the same departments depending on their skillset and accountability. This is to ensure good communication among them and allow for maximum productivity per individual within the start-up. For large companies and corporations, the may employ a divisional structure where the business activities, as well as the corporation, is split into the specific customer, product, service, and market groups. This is to ensure that each group produces utmost effective productivity by matching the individual needs of the customer.

Shareholder structure is the percentage ownership that a company may give to any participant that is accompanied by voting rights. Shareholder structure for different companies may vary due to the availability of both preferred and common shareholders. The presence of common shares may be a quick source of funding for any start-up or new company since they are less expensive and readily available. For larger companies, the share structure may be different with the presence of preferred shares which is a reliable source of funding. In this case, the preferred shareholders receive dividends first and the value of their shares do not change with time compared to the volatile common shares. Companies should consider both structures when planning for credit funding.

How the aims of companies are affected by interested parties.

The companies aim may be affected in different ways by the stakeholders since they are the managers and they provide funding for the companies. The stakeholders may change the aim which may affect the company's compliance obligations which may violate the legal issues of the business. The aims may involve expanding the market such that the company may reach many people and fill a market gap. The interested parties may want to change the objective to something else like the maintenance of quality service hence changing what was stated in the company mission statement. This will affect the whole institution which may further affect the performance.

Structure of two different companies.

Companies may be of different form either a limited liability company, a partnership or limited liability or a sole proprietorship. The structure of the company may not only affect the legal formalities and the paperwork associated with starting the company but it will also affect the amount of taxes paid to the government. Apart from this, the personal liability of the participants will also be affected where the ability to raise money by the company will need to be changed in the case of a company or large corporation. The companies selected for this study include the BMW which is a global company. The initials BMW are the short form of Bavarian motor works which is located in Bavaria, Germany. Since it is a company, the organizational hierarchy consists of the president who is top level and is concerned with ensuring that the business mission, vision and to objectives are attained.

The vice president, secretary, treasurer, and directors are then part of the second team of the organizational structure who are concerned with financing and auditing as well as the other production departments. This structure may not apply to the second company which is General Motors since General Motors has a chief executive officer who mans the operations. From the CEO, the structure of General Motors moves to the president who controls the other managers and represents the company in meetings and business deals. From the president, the hierarchy moves to the vice president then to the departmental stages where the heads of departments are in charge of the various teams in the departments. The structure of the companies is important in maintaining order and decision making within the particular company. Although the companies may not pick up the same structure both structures are important.

How the companies are set up to satisfy their aims.

Although the companies are diverse they are set up in different ways to achieve the goals. For General Motors, the team of managers is strong in making decisions concerning the expansion and sustainability measures. Also, the company has dedicated a strong team to manage and run the research department to enable the fast and efficient discovery of better ways of car designs and how the new designs will fit the market in the middle east and North America regions. The company has an active support team that ensures has put the customer needs and complaints at the center of the company goals and objectives. Through the neat organizational structure discussed above, there is disciplined reinvestment in the departments from the realized profits which enhance better services hence optimum working of the organization. Apart from this, the company has established different operational philosophies which guide the employees while carrying out their work.

For BMW the case is different compared to that of General Motors since it commands a wider market and the company has various brands in the market. The company has employed efficient and friendly production where the resources are utilized to the maximum with minimum cut off and wastage. This strategy is employed by the able management in order to foster long-term employee development within the company. Through this strategy, the company is able to hold on to the existing personnel since they have specialized in the art of economic production. The company has also embraced renewable energy which is a strategy which enables the company to save on costs that could be involved in non-renewable energy. The money saved is then utilized in motivating the employees. Diversity is also a strategy taken up by BMW in order to achieve products and motor vehicles that suit any population in all the countries they plan on investing in. this brings about an intellectual understanding between the manufacturer and the market leading to the engineering of customer-specific vehicles that are built to suit the environment.

How different types of market may affect these two companies.

The market for General Motors and BMW are totally different considering the type of products and vehicles the companies specialize in manufacturing. The company manufactures strong utility vehicles commonly known as SUV's. With SUVs especially in the brand GMC and Chevrolet (Chevy), the company targets markets in the highland regions where they are faced with rugged terrain hence the requirement of a vehicle with strong capabilities. With the release of the GMC and Chevy trucks, the farmers of Texas and other farming regions of the world have commended the company due to the robust specifications associated with the trucks. Apart from this, the middle east is also a potential market for the trucks due to the sandy environment which may be tough to maneuver for common vehicles.

On the other hand, BMW vehicles are strong and stable and are mainly built for comfort and long-distance cruising. The motor vehicles by this company are then designed for urban centers traffic and tarmac roads hence obtaining little or no off-road capabilities especially with the saloon models and hunch backs. The larger BMW models especially the X6 and X5 models are SUVs in the market but they are designed to offer stability and comfort for the customer as well as space but not for the hard and sandy environment since the largest BMW market is in Germany and Europe at large.

From the above description, it is evident that both companies design their vehicles with the specifications of the customers who are dotted in different places around the globe. Apart from this, the market the company is targeting is able to influence the design the company will make on the motor vehicles while considering the factors that affect the customers in the particular region.

How the government policy, legislative and cultural factors affect the performance of the businesses.

The government of different countries that the companies may intent to globalize may pose different cultures and environments that may encourage or discourage the growth of the businesses in the particular country. Some governments may impose favorable laws that may levy the taxes on importing of new vehicles. At this point, the customers in the different countries may feel encouraged to import the different brands from the various countries hence creating profits for the interested persons. On the other hand, the companies may have a hard time when the government implements embargoes on the importing of second-hand vehicles to developing countries. This will bring devastating effects on the sales of the company leading to immense losses.

Also, the government may choose to levy taxes on the use of electric vehicles and other environmentally friendly renewable energy motor vehicles. On the upside, this would be an added advantage on the companies since they would improve on their environmentally friendly models which they would sell to countries with such regulations at a profit. This would mean, on the downside, the companies would cut their diesel and petroleum models going to that particular country due to reduced market and high import and export duties. Political instability may also cause problems to the companies during their investments since this would mean that law and order are not at its best. During this state of lawlessness, the companies' interests are at risk and the property which they invested within the particular country is at risk of being damaged. This reduces the companies' initiative to invest and expand which is as a result of instability.

The government and the political environment have both positive and negative effects on the stated companies and their interested parties.

How the purposes of spanner cars and BMW are affected by interested parties.

The purpose of the named companies is affected by the opinions of the stakeholders since they fund the companies and they are at risk of running at a loss in case the companies face financial depression. The stakeholders may be also involved in the decision-making procedure which may affect the marketing or marketing obligations of the companies which may lead them to restructure and reset their objectives. The companies may have stated in their initial goals to globalize into Africa which means that the design and operational structure would be made in order to manufacture for Africa but the stakeholder advice against that. The companies will then be forced to restructure their objectives and the legal formalities associated with the globalization plan forgone.

Commercial operations in China and Germany for spanner cars.

the sale of cars by spanner company in both countries include models that are specifically tailored for both the Chinese and the German markets. The operations in China for spanner cars have dropped with a high incr...

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How companies may differ in form, aim and shareholder structure.. (2022, Jul 01). Retrieved from https://proessays.net/essays/how-companies-may-differ-in-form-aim-and-shareholder-structure

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