1. Manufacturing Systems Organization and Structure

2. Why study Manufacturing -As a consumer society, it is in our best interest to understand how products are produced and brought to market -Currently- though employment needs seem to decrease, demand for goods and services increase -Manufacturing is an essential element in understanding products and where they come from

3. Enterprise vs Free Enterprise Enterprise-Individual or organization that takes a risk in Hopes of making a profit. Free-enterprise1)Freedom to produce a product or deliver a service 2) Freedom of choice as a consumer

4. Forms of Ownership Proprietorship Two or more owners Single owner Partnership Corporation Owned by stock holders that have voting rights dependent on the number of shares of stock owned

5. Advantages of Incorporation 1) Raise capital through the sale of stock 2) Reduced personal liability as Corporations are considered an “artificial person” under the law

6. Disadvantages of Incorporation 1) Loss of control by initial founders to stock holders 2) Subject to hostile takeovers, majority of stock results in control

7. Mergers and Buyouts How corporations grow and expand 1)Diversification 2) Conglomeration 3) Horizontal Integration 4) Vertical Integration -Decide to add a new service or product -one corp made of smaller ones that Provide many goods or services -Two or more competitors join together - merge -Corp purchases other corp that provides good or services to them