BUSINESS

Business organization in global context

Table of Content

Introduction3

The Advantages and disadvantages of Fruity Drinks Operating as a PLC3

Responsibilities towards Stakeholders5

Strategies6

The impact of external and internal factors6

The Impact of global factors on business organisations8

Current Issues Impacting on Business Activities9

Conclusion9

Business Organization in Global Context

Introduction

In this as the CEO of Fruity Drinks, I'm planning to acquire a number of bottling plant organisations within the next ten years in emerging markets. Our company is currently manufacturing and selling a wide range of fruit juices (apple juice, orange juice, pineapple juice, tropical fruit juice). And in this assignment we will be looking over the many advantages and disadvantages, responsibilities, strategies, impacts and many other issues related to the business organization in the context of expanding globally.

The Advantages and disadvantages of Fruity Drinks Operating as a PLC

Fruity drinks being a public limited Co, is the kind of limited liability in the Ireland, United Kingdom including the other regions where the English laws are practised. This kind of business structure was establish in the United Kingdom by “Companies Act of 1980” & in the Ireland in the year 1983 by the same act. These PLC's are capable of sharing their stock within the open markets and are not required to sell their shares and can stay private.

One of the major reasons where the companies choose to go public is because they want to acquire the access to the capital achieved with the help of IPO (Initial Public Offering), where there is no interest rewarded on and not requires to be repaid like other debts or loans. That in turn permits the business to be more liquid, capable of investing more capital towards, research and development, improvements and allocated the company even better impressive profile. The Plc is also capable of posting advertisement giving the securities for sale towards the public that is not the case in a private organization. Accessing the market might have some disadvantages like the ownership can switch depending on the bids made by different companies who will purchase big amount of shares and the financial aims would be more highlighted towards short term in regards to appeasing the stakeholders, where as the management might want to set up the investment plans towards long term results (Devan, 2012, n.d).

The Company's shareholders liabilities are limited only within their investments and shares in the company; where as the liabilities towards the debtors and creditors of the company is limited to the assets and capitals of the company and not to the private assets or shareholders. That is quite alike in the limited liability organization that allows entities and individuals in investing within the company without having fear related to the liability for the expected debts in the business.

Forming a plc can be expensive and time consuming. In order to develop a plc, the company should register itself within the “Department of Trade & Industry” and include at least two members and a minimum of 2 company directors that are about sixteen years and a ...