amir akbar company management & business combination

Amir Akbar

COMPANY MANAGEMENT & BUSINESS COMBINATION

Management Authority

ShareholdersBoard of DirectorsChief ExecutiveSecretaryManaging Agent

Management Authority

ShareholdersThese are owners of company but all

shareholders do not share in management

Board of DirectorsThe shareholders of the company elect the

directors in annual general meeting of the company. All the management of the company is in the hands of Board of Directors.

Management Authority

SecretaryThe secretary performs the secretarial work.

The most confidential matters of the company are associated with the company.

Chief Executive or Managing DirectorThe board of directors appoint one of its CEO

or MD.

General MeetingsStatutory Meeting

It is the first meeting of a company shareholders. Its objective is to inform shareholders about the affairs of the company.

Annual General Meeting

It is the open meeting of the shareholders. Shareholders can crticize the policies of the directors and can suggest various methods to solve the problem of the company.

General MeetingsExtra Ordinary General Meeting

If any problem is created suddenly which cannot be postpone till the next annual meeting is conducted to solve the problem.

Business CombinationIt is voluntary association of firms for the

acheivement of common objectives.

To enjoy monopoly advantages

Sometimes firm decide to merge themselves.

Business CombinationCauses of Business Combination

Elimination of competition.To solve capital problemEffective ManagementUse of technologyTo face crisesStatus in marketResearch Facilities

Business CombinationADVANTAGES

Increase in capitalLarge scale marketingExperts servicesResearch WorkStability

Business CombinationDISADVANTAGES

Creation of monopolyChances of conflictsOver capitalizationMisuse of fundsNational interest ignored

Business CombinationDISADVANTAGES

Creation of monopolyChances of conflictsOver capitalizationMisuse of fundsNational interest ignored

Business CombinationTypes of Business Combination

Vertical CombinationHorizontal CombinationCircular CombinationDiagonal Combination

Business CombinationVertical Combination

When different departments large industrial units combine together.

Under the combination of purchasing of raw material to selling of product.

Business CombinationVertical Combination

Typing Section

Printing Section

Binding Section

Management

Business CombinationHorizontal Combination

It is also a voluntary association which two or more than two similar nature business firm combined them selves under the one management. It is called horizontal combination.

Business CombinationVertical Combination

Tea Factory

A

Tea Factory

B

Tea Factory

C

Tea Factory

DManagement

Business CombinationCircular Combination

When different types of business units combine themselves under one management.

ManagementIT Industry Software Industry

Mobile Industry

Business CombinationDiagonal Combination

When two or more business units perform subsidiary services if they combine under main industry.

Food Company

Packaging Company

Biscuts Industr

y

Business CombinationVertical Combination

Tea Factory

A

Tea Factory

B

Tea Factory

C

Tea Factory

DManagement

Cooperative SocietyA cooperative society is an association of

individual who voluntarily pool their resources and carry on the business for their own welfare and not for profit seeking business.

It is a form of organization in which the consumers are the owners of the business.

From manager to clerk all are the owners of business.

Cooperative SocietyVoluntary Membership.Equal RightsHonestyMutual ConfidenceDistribution of profitSelf ServiceSpirit of Love and Cooperation

Cooperative SocietyADVANTAGES

Mutual CooperationFinancial AssistanceLess ExpenditureEqual Rights.

DISADVANTAGESLack of capitalLack of experienceAbsence of discipline