The effect of ownership on vision, mission, objectives and decisions - Business studies - AS level

The effect of ownership on vision, mission, objectives and decisions - Business studies - AS level

Publicated on Jul 31, 2015 - Give your opinion

In this revision sheet of business studies, it is question of the effect of ownership on vision, mission, objectives and decisions.

While there are many different forms of ownership, they could be distributed in two distinctive categories: for profit and not for profit organisations. As a result, the effects of ownership on a business organisation vary greatly depending on the context and the type of business form.

Register and download this free business studies course AS level to see the complete content.

Justine - digiSchool's profile picture
Course written by
Justine - digiSchool
34 downloads

Is this document useful?

-- / 20

Content of this document of Sciences > Business studies

Effects of ownership on the organisation’s core components

  1. Influences of ownership on the organisation’s vision & mission – Apple Computer Inc. illustration
  2. Ownership structure changes could considerably affect an organisation’s vision and mission. Apple Computer Inc. functioned for nearly 10 years without its founder after Steve Jobs’ replacement – he resigned in 1985 following disputes with other members of the company. After a decade, the company’s performance was mediocre while it seemed to have lost its innovative spirit and direction.
  3. Influences of ownership on the organisation’s objectives compared to management
  4. The problems that arise as a result of the relationship between a principal (i.e. owners) and its agents (i.e. manager) are not unusual in business; the agency theory is oriented toward the resolution of possible conflicts between shareholders and managers.

Effects of ownership on the organisation’s centres of control and structure

  1. Influences of ownership on decisions – Ownership Concentration
  2. Businesses with a high ownership concentration ratio are susceptible to be more intensively and more often influenced by shareholders. In fact, because of the large parts they own in a business, investors might be more implicated in the monitoring of its agents in order to protect their investments.
  3. Influences of ownership – country comparison
  4. A major factor affecting the influence of ownership on a business is in regard to the context – political, economic, social and technological. The following chart provides with insight about the different characteristics of ownership in six strong & economically diversified countries.

4 comments


zkhan777
zkhan777
Posted on Nov 16, 2016

very helpful

zkhan777
zkhan777
Posted on Nov 16, 2016

amazing

RickyCugi
RickyCugi
Posted on Oct 17, 2016

Amazing Content!

Jilly Kelly
Jilly Kelly
Posted on Oct 13, 2015

This is a great set of resources giving students a sound example to consider what effect ownership has on the core activities of a business - thank you

You have to sign up to download a document

Create a free account to download this document

I sign upOR

I already have an account

I log in