1. L ECTURE 1: L AUNCHING A B USINESS Organizational Forms Organizational Structures Problems of a Start-Up

2. L ECTURE 1: L AUNCHING A B USINESS 1. Problems of a Start-Up 2. Organizational Forms 3. Organizational Structures

3. P ROBLEMS OF A S TART -U P …you name them!

4. L ECTURE 1: L AUNCHING A B USINESS 1. Problems of a Start-Up 2. Organizational Forms 3. Organizational Structures

5. F ORMS OF B USINESS O WNERSHIP sole proprietorship partnership corporation

6. S OLE P ROPRIETORSHIPS + ease of starting and ending a business + being your own boss + pride of ownership + keeping the profit - unlimited liability - limited financial resources - difficulty in management - time commitment - few fringe benefits - limited growth - limited life span +-

7. P ARTNERSHIPS + more financial resources + shared management + longer survival - unlimited liability (general/limited partner) - division of profits - disagreement among partners - difficult to terminate +-

8. C ORPORATIONS + more money for investment + limited liability + size + perpetual life + ease of ownership change + separation of ownership from management - initial cost - paperwork - size - difficult to terminate +-

9. … AND MORE ! … joint ventures, cooperatives, government corporations, not-for-profit corporations, franchises, etc.

10. L ECTURE 1: L AUNCHING A B USINESS 1. Problems of a Start-Up 2. Organizational Forms 3. Organizational Structures

11. O RGANIZATIONAL D ESIGN 3 main principles of organizational design: 1) Authority 2) Responsibility 3) Accountability

12. O RGANIZATIONAL S TRUCTURES Main issues: tall vs. flat span of control division centralization

13. O RGANIZATIONAL T YPES  Line organizations  Line and staff organizations  Matrix organizations

14. L INE S TRUCTURE President Vice president (finance) Vice president (marketing) Vice president (production) Supervisor

15. L INE AND S TAFF S TRUCTURE President Vice president (finance) Vice president (marketing) Vice president (production) Supervisor Legal staff Public relations director

16. M ATRIX S TRUCTURE President Vice president (production) Vice manager (marketing) Vice manager (finance) Project manager 1 Project manager 2 Employee A Employee B Employee C ………

17. T HE E ND THANK YOU!