1、当代商学概论当代商学概论 Fundamentals of Business Lecture 1:Introduction What to cover today：1.The nature of business2.Forms of business ownership3.Franchising4.Business mission and company profile5.Exercises What is business?money(capital&profit)companyproducts(goods&services)peoplemarketcountries&culturesconf
2、erences,negotiations&tripscommunication1.The nature of businessBusiness is:the exchange or trade for things people want or needthe production,distribution and sale of goods and services for a profita goal-directed behaviour aimed at getting and using productive resources to buy,make,trade,and sell g
3、oods and services that can be sold at a profit(Source:Jones,2007.Introduction to Business:How Companies Create Value for People)productiveresourceslandcapitalenterpriselabor 2.Forms of business ownershipThree basic legal(vs.organizational)forms of business ownership：1.sole proprietorship(个人个人)独资企业独资
4、企业2.partnership 合伙企业合伙企业pany 公司公司Unlimited Liability Company 无限责任公司无限责任公司Limited Liability Company(LLC)有限责任公司有限责任公司S corporation S型股份有限公司型股份有限公司C corporation C型股份有限公司型股份有限公司enterprise company corporation2.1 Factors to be weighed in decision-makingease of formationliability for business debtscontrol
5、over the operationmanagement expertise availablefinancial resources availabletaxation policiescontinuitylegal capacity2.2 Sole proprietorshipadvantages&disadvantages D4:lack of continuity If the owner dies or becomes too ill to manage the business,there is no separate legal entity in existence with
6、which the public,creditors,suppliers or employees can deal to ensure the continuity of the business.2.3 Partnership2.3.1 Oral vs.written agreementarticles of partnership 合伙章程合伙章程names of the partnersname of the partnershiplocation of the partnershippurposes of the partnershipduration of the partners
7、hipcapital contributions by partnersrights and responsibilities of partnersallocation of profits and losses among partnersdissolution(破产清偿)procedures2.3.2 General partnership 普通合伙普通合伙企业企业 vs.limited partnership 有限有限合伙企业合伙企业2.3.3 Advantages&disadvantages2.4 Companycompanypublicly ownedquasi-publicly
8、ownedprivately ownedprofitnon-profitprivately held(s corp.,LLC)publicly held(usu.C corp.)publicly owned companies:established by the government,e.g.the U.S.Postal Service,big 4 banks in China,CNPC,Sinopec,CNOOCquasi-publicly owned companies:established privately,but operated for public service and w
9、ith high degree of government regulation and protection,e.g.private schools and hospitalsprivate companies:established privately and operated for private interests;including the bulk of existing companiesprofit private companies:established to carry out business for profit-making purposesnon-profit
10、private corporations:established for charitable or religious purposesprivately held profit private companies:LLC or S corp.;do not publicly offer their stock;owned by one or a few shareholders who normally have family or other close ties and also manage the business publicly held profit private comp
11、anies:C corp.(also called LLC by share,public company,publicly traded company,public listed company);publicly offer and freely trade their shares on stock exchanges;owned by a number of unrelated shareholders who do not actively manage the company(passive investors,cf.limited partners);go public,IPO
12、 首次公开募股首次公开募股 2.4.1 CorporationProportion of Existing Businesses under Each Form of OwnershipProportion of Business Revenue Generated by Each Form of Ownership2.4.1.1 Corporate structure and management incorporators/shareholders board of directors president/GM/CEO/managing director other officialsow
13、nersmanagers 2.4.1.2 Corporate charter&legal personCorporate charter 公司章程公司章程:a document used to incorporate a business,and filed with the state governmentThe charter describes important aspects of the corporation,e.g.the name of the firm,the stock issued,and the firms operationsBylaws 公司规章公司规章 are
14、established to provide general guidelines for managing the firm2.4.1.3 Advantages&disadvantages A4:continuous life(perpetual continuity)Theoretically,a corporation has a perpetual existence;it continues until dissolved,merged,or terminated for other reasons.D4:agency problem High-level managers may
15、make decisions that are in their best interests,at the expanse of shareholders.for United States Federal income tax purposes,an S corporation is a corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code.has 100 or fewer owners and satisfies ot
16、her criteriathe owners have limited liability,which may be restricted by various rules the earnings are distributed to the owners and taxed at the respective personal income tax rate of each owner2.4.2 S corporation S 公司公司2.4.3 Limited liability company(LLC)not a corporation in naturea hybrid busine
17、ss entity blending a corporation,a partnership,and even a sole proprietor has all the favorable features of a typical general partnership,but also offers limited liability for the partners(members)the primary characteristic an LLC shares with a corporation is limited liability,and the primary charac
18、teristic it shares with a partnership is the availability of pass-through income taxation.has fewer restrictions on the number and type of owners and on the liability protection than S corporation3.Franchising 特许经营特许经营budding period:the early 1900s,filling stations,car dealerships growth period:sinc
19、e the mid-1960s,paralleling the enormous expansion of the fast food industry Three basic types of franchising:product franchising:licensing for the right to sell trademarked goods purchased from the franchiser and resold by the franchisee,e.g.car dealers,gasoline stationsmanufacturing franchising:li
20、censing for the right to produce and distribute products,using supplies purchased from the franchiser,e.g.soft-drink bottling plants business-format franchising:licensing for the right to open a business using the franchisers name and format for doing business,e.g.fast food chainsAdvantages of franc
21、hising:triple benefits of franchising according to the president of the International Franchise Association:“The franchiser wins because he builds a strong foundation for his company.The franchisee wins because he can take advantage of the franchisers proven business system.And the general public be
22、nefits from the consistency of the product or service.”Case study:A Godsend 4.Business mission and company profile4.1 Business mission/vision-a brief statement that tells stakeholders and the public why the firm is in business,how it intends to satisfy customer needs,and why it will satisfy their ne
23、eds better than its competitorsSample mission statementsStarbucksOur mission:to inspire and nurture the human spirit one person,one cup and one neighborhood at a time.DellDells mission is to be the most successful computer company in the world at delivering the best customer experience in markets we
24、 serve.In doing so,Dell will meet customer expectations of:Highest quality Leading technology Competitive pricing Individual and company accountability Best-in-class service and support Flexible customization capability Superior corporate citizenship Financial stabilitySample mission statementsNike
25、Our mission for the Nike brand is:To bring inspiration and innovation to every athlete in the world.Alibaba Alibaba Group(Alibaba for short)is a global e-commerce leader basing in China.Alibaba has 7 subsidiary companies,business involving the B2B,C2C,online payments,software service,search engine,o
26、nline advertising,local living and consumption community etc.Alibaba is committed to building the worlds leading e-commerce infrastructure and high quality online living platform.4.2 Company profileCompany historyFounders and/or current top managersMajor line of businessLocation and subsidiaries Mar
27、ketsStaff sizeProduction capacityAnnual turnover/sales Awards Listening:Listen to a presentation delivered by the PR Department Manager of Oracle China and fill in the blanks in the company profileWord bank:headquarters 总部 headcount 员工总数 annual revenue 年收入Oracle China ProfileStatus:the worlds _ ente
28、rprise software company,_ global software giant in _Established in:_Headquarters:Redwood Shores,_Headcount:_Annual revenue:_Launched on Chinas market in _Oracle China branches:Beijing,Shanghai,Guangzhou,_Services:9i E-Business platform,E-Business Suite,consulting services,_,and support serviceslarge
29、steducationChina1977California42,000$11billion1989ChengdufirstSample company profileGMhttp:/ Ecolab http:/ version:http:/ Chinese version:http:/ Alibaba English version:http:/ Chinese version:http:/ Exercises 1.Translation1.个人独资企业 2.普通合伙人3.有限合伙人 4.无限责任5.营业执照 6.法人7.董事会 8.股息9.公司章程 10.年报11.股东年会 12.特许经营
30、2.Find out the business focus of the top 10 franchise brands in 2009 listed by Entrepreneur Magazine3.Compile the mission statement and/or company profile of a well-renowned MNC currently operating in China4.Group project:observe and guess the business forms of shops or companies operating on your campus or in Guangzhou,and collect necessary information through interviews or on the Internet to verify your thoughts5.Supplementary reading 1.Chapter 1“What Is Business?”2.Introduction to Business:How Companies Create Value for People?
