What is a company?

A company is Produces a product or service Private- or public sector Form of ownership, employees, gross revenue, profit/loss A company is a cooperation which produces a product or a service. A company can be owned and run by the governement, or one or several citizens.

Novo Nordisk Bagsværd 41,000 employees Gross income of 74 billion dollars Profit of 31.5 billion DKK Medicine

Maersk Copenhagen 89,000 employees Transportation Income of 12 billion dollars Gross income of 117 billion dollars

Toms Ballerup Private 1335 employees Gross income of 1.64 billion DKK Profit of 51.1 million DKK Chocolate, liquorice, and confectionary

Carlsberg Copenhagen Limited company 40,435 employees Income of 64.51 billion DKK Profit of 30,57 billion DKK Alcoholic and non-alcoholic beverages

Retail, Service and Procution Companies Types of companies Retail, Service and Procution Companies

Three types of companies Retail/trading Companies Buy tangible products and then sell them unaltered Productions/manufacturing Companies Buy raw materials, produce products and then sell it Service Companies Delivers intangible products to their customers

Examples of different types of companies Netto – Retail company Buy products and then sell them to the public Carlsberg – Manufacturing company Buys hops and other raw materials, produce beer Danskebank – Service company Keeps a hold of your money but does not deliver any tangible products

Types of companies on the decline Manufacturing companies are closing down as the products that they produce are expensive in comparison to what the price is in China

Companies on the increase Seeing as manufaturing companies are on the decline and the products in china are cheaper The retail companies buy the cheapest product for the biggest profit

By Nana, Emilie and Lærke 1.5.3 Interest Groups By Nana, Emilie and Lærke 1.5.3

Interest Groups External Groups Internal Groups Groups witch the company cooperates with External Groups Internal Groups Out side the company With in the company

External Groups Costumers Suppliers Lenders Local authorities

Internal Groups Owners Management Employees

1.4 Functions of Different Types of Companies Business Economics 1.4 Functions of Different Types of Companies

Functions of Trading Companies Purchase of finished products Wholesale trading Trading with other companies Retail trading Directly to customers

Functions of Production Companies Production of goods Quality required by customers Competitive prices

The Company environment

The immediate environment The world which the company has frequent and direct contact with. A company and its immediate environment have a mutual impact on each other.

Our example

Their role The suppliers Provide the plastic Provide electricity Other resources for production

Their role Middlemen Import the goods to the retailers

Their role Competitors Impact the prices and the quality of the product Challenges with innovations Create competition to provide the best experience for the consumers

Their role Customers Purchases the goods or services Define the success of the company

The remote environment The remote environment is what Is going on in society. This could be technological developments, social conditions, age distribution of the population, laws and cultural issues.

Remote environments Technological developments: Up to date, new sale opportunities Social conditions: Make a plan, unemployment or level of education

Remote environments Age distribution: Target a group, Lego is targeting children & young people Laws: Increased or decreased cost, impact on trading, sales and environmental requirements Cultural issues: Work with the surroundings, factors that can influence the success

Conflicts and Harmony with Interest Groups Sarah, Katja & Julie

Figure of contribution and rewards of interest groups

Conflicts between interest groups Can occur when the contribution is not rewarded enough. Suppliers want to sell at a high price and buyers want to buy at a low price. Buying at a low price will increase the buyers profit and selling at a high price will increase the suppliers profit.

An example H&M want to sell their clothes and get a reward The customers want to buy the clothes at a low price The suppliers want to sell the materials at a high price

Harmony between interest groups Companies are very dependent on their interest groups , because without them there will be no investments or contributions to the company. Harmony = what they receive has to be higher than what they contribute.

Partnerships

Definition of a partnership Owned by two or more people Jointly and severally liable for the company Contracts made to secure relationship between owners Everybody is expected to make a working effort Lavaretus

Advantages of a partnership Easy to set set up since there is few requirements Start capital is often bigger Owners will have different qualifications Can supplement each others compentences

Disadvantages of a partnership The principle of a joint ownership is a obvious disadvantage in partnerships It’s hard to reach an agreement Disagreement that may lead to an conflict.

Public Limited Companies Niklas, Christine & Laura 1.6.3

Public limited company One ore more people inject capital Shareholders A share of 500,000 DKK has to be injected General meeting

Advantages Only risk losing the value of their shareholding in the company Make it possible to have a large amount of value injected in the company

Disadvantages Require 500,00 DKK to set up a public limited company Danish Commerce and Companies Agency

Private limited companies Made by Christian, Emilie G and Emilie A

Disadvantages Loans Advantages Costs

Sole-proprietorship company Made by Cathrine, Krestian and Freja

What is a sole-proprietorship? Single individual Common in smaller companies

What are the advantages? Single individual Common in smaller companies

What are the advantages? Few particular formal requirements The decision making is easier Personal liability makes it easy to take out loans Company will not be taxed separately

What are the diasadvantages? What are the advantages? In case of bankrupt you will loose all of your personal values May be difficult to raise money It is difficult to do well upon all the different tasks

What are the diasadvantages? In case of bankrupt you will loose all of your personal values May be difficult to raise money It is difficult to do well upon all the different tasks The end