business grows, more and more large companies, well, small entrepreneurs increasingly difficult to survive.What are they - the corporation that they are, for better or worse - to unite, we will look at in this article.
Corporation: Definition and essence
In today's market environment more clearly understand that small businesses are extremely difficult to stay afloat among sharks business as external factors can easily affect the activity of an entrepreneur, but he, in turn, turn to the rightmainstream environment can not be.Therefore, more and more business entities are combined and strengthened.
meaning of the word "corporation" has come to us in the late XIX century, with the growth of manufacturing.It is clear that since then modified and the concept of productive activity, and business in general.What
Corporation today?This association groups of elements (in our case - the entrepreneurs), which reach common goals synergistic efforts.It is important to understand that the owner is in the activity of these entities is not actively involved, so as managerial personnel hired separately.
Today corporate governance is the most developed capitalist countries: Japan, the United States and Canada.
What are they?
According to the legislation of different countries, a State corporation permitted forms are different, so it is more expedient to consider them in the conventional varieties of the world of economic theory.So, most often occur following forms:
- Limited Liability Company (LLC).As a rule, authorized funds in the company of this type are formed by the founders of their own resources, so that all risks are borne by them (for such is popular nowadays Mortgage Corporation).
- Closed Joint Stock Company (JSC).As the owners are the shareholders, they distribute the profits among themselves and employees.
- Open Joint Stock Company (JSC).Securities of companies of this type are issued by public subscription, so buy them can anyone, including the government, that gives rise to public corporations.
- Cartel.It occurs when the combined business entities involved in the same industry.
- Holding.The corporation consists of several companies, which is at the head of an isolated branch of solving the key issues of his own name.
- Poole.Group of companies which different distribution of profits (tie).
relations within the corporation
As a rule, if the business entities are combined, they become dependent on each other.Although sometimes it happens that each company carries out its main activities apart, a listing periodic dividends to shareholders (an example of such a mortgage corporation).But, nevertheless, there is an algorithm of the relationship between the owner and the business entity:
- once an independent legal entity is absorbed by the head representative;
- financial management becomes corporate;
- former company restructured;
- and a consortium formed branches.
Control System Corporation
Typically, information about the management of the combined companies, and bodies which carry out the process, specified in the statutes of the newly formed entity.
the case of JSC and JSC, the company managed like hired performers, with the key issues Meeting of Shareholders resolves (public corporations in the head unit also have representatives of the executive power sector).
cartels, syndicates, companies, pools and other forms of association inherent in capitalist society, structured as follows:
- Board of Directors (strategic planning);
- Executive Officer (gives orders, bears a share of responsibility);
- other staff (usually a vertical hierarchy).
Benefits corporations
What is a corporation?Representatives of capitalist society argue that this is the optimal form of the functioning of economic entities.And in some ways they are right, because the positive side in the present:
- possibility of continuous increase of production capacity, as major concerns is much easier to survive in the competitive modern market environment.
- Financial Corporation - often a great lure for investors.Yet there is a strong likelihood that the holder of foreign capital to invest money into a company, rather than take the risk, make a deal with one-day firms.
- Such associations usually have a long-term and a long-term strategic development plan, that to some extent guarantees the reliability and financial stability.
- What is a corporation?Distribution rights.Therefore, in particular, much more profitable for shareholders to bear partial responsibility for the company's operations, rather than full.
Disadvantages
As is typical of the absolute form of activity of business, corporations have a number of drawbacks:
- We should not forget that these stakeholders monitoring and control is carried out by various groups of officials that can cause conflicting situation and untimelyResponding to those or other negative aspects.
- Elevated levels of taxation.Since the attribution to the State Treasury shall be as a percentage of net profits and dividends.
- huge level of potential opportunities and ways to ensure that managers could abuse its position.For example, if the case in the company are not going well, the management may decide to issue additional securities, the proceeds from which subsequently cover losses incurred earlier.
What corporation in Russia
principles and forms of doing business in Russia today is so diverse that we can find a lot of private entrepreneurs and small company just starting out holdings and powerful sharks in the face of "Sibneft" and "Gazprom ".
Despite the fact that each of them pursues different objectives and has a tremendous difference in the amount of profit and sales, there is still a number of problems, which are shared by all, without exception:
- maximization of production and scientific-technical relationship between the partiesholdings, thus optimizing the distribution of responsibility to senior officials and owners;
- strategic controls responsibly monitor the performance of enterprises;
- with the direct supervision of officials engaged "on the ground";
- especially large corporations are trying to introduce the company special economic centers that are engaged in the administration of the current activity of a business entity;
- intercompany trade relations are carried out on special conditions.
Conclusions
So, we have considered that such a corporation, what are the species found, which it serves, and revealed both the advantages and disadvantages of this form of organizational activity.
We must understand that in our post-Soviet regime of mixed economy, we are too far from the capitalist society, and seek me for it?Too many one-day firms and small businesses with little strategic plans.But, nevertheless, most of the Western business world considers a form of organizational activity is quite successful.
Who knows, maybe in a few decades, modern businesses have no choice but to integrate into larger business associations, in order to survive in today's competitive market society, but for now, that - strive for the better.
