Tomislav Skračić, MA Undergraduate English Course for MARITIME MANAGERS 6th Semester Essential reading: ●T. Skračić, Waypoint – English Textbook for Maritime Students, Pomorski fakultet, Split 2010, Units ●T. Trappe & G. Tullis, Intelligent Business, Longman 2005

STRUCTURE OF A SHIPPING COMPANY – part 2 UNIT 32

Unit 32

Diversified business activities  The structure of a shipping company can be more complex if the company is involved in non-core businesses. Let us take Atlantska plovidba for example:  It was a shareholding company that was founded in Dubrovnik in 1955  By 2001, the fleet had a capacity of 780,000 dwt and the company started to diversify its operations into other industries  In 2005 a charter airline company was founded  The company owned three hotels and a number of camps and restaurants Unit 32

 Registered business activities of Atlantska plovidba also included  scientific R&D,  market analysis and public research,  business and management consulting,  financial and book-keeping business,  tax consultancy,  secretarial and translator services,  import and export of vessels, marine and office equipment, etc. Unit 32

 Delegation of responsibility is of vital importance in large shipping companies with diversified business activities  As a centralised organisation tends to discourage initiative, liner companies have tended to set up separate divisions or subsidiaries corresponding to individual trades or services Unit 32

 These operate as self-contained units under their own management boards with extensive autonomous powers  The major advantages include prompt decision-making, reduced administrative cost and a more precise orientation towards specific targets. Unit 32

EXERCISES  Match the corporate departments with their duties 1Financestaff training 2HRdevelopment 3Marketingraising the safety awareness 4Operations/Fleet Managementship surveys 5Technical1annual accounts 6I&Tpress and publicity 7DPA/CSOship deployment, chartering Unit 32

 Answer the following guestions: a)Explain the structure of a typical shipping company. b)What is the core business of a shipping company? c)What are non-core activities and ventures that a shipping company may engage in? d)Do you think that involvement in diverse business activities is a sound strategy? Explain. e)What are the major advantages of the delegation of responsibility? f)How do large shipping companies carry out the delegation of responsibility? Unit 32

g)Who are members of the Board of Directors? In what type of company are politicians appointed to the Board? h)What is the Board of Directors responsible for? i)What is the duty of the Managing Director / CEO? j)Who is in charge of the Quality Management System? k)Who is in charge of legal matters and liaison with liner conferences? l)Who is in charge of insurance and settlement of legal claims? m)Whose duty is to raise the safety awareness and develop a culture of security within the management ashore and across the fleet? n)In your view, what is the busiest department? Explain. Unit 32