Differences between Large, Medium-Sized, and Small Organisations

Organisations vary significantly in size and scope, influencing their objectives, market share, profit share, growth, and sustainability. Large organisations, such as multinational corporations, often aim for extensive market penetration and dominance. They have significant market shares, substantial profit margins, and the resources to invest in sustainable growth and innovation. These organisations, like Apple or Toyota, have global operations and can influence international markets (Kotler, 2017).

Medium-sized organisations, while not as expansive, focus on maintaining competitive market shares within specific regions or sectors. Their objectives often include stabilising profit margins and incremental growth. These organisations balance innovation with risk management, ensuring sustainable development without overextending resources. Examples include regional banks or national retail chains (Burns, 2016).

Small organisations, including startups and local businesses, typically have limited market shares and smaller profit margins. Their goals are often centred around survival, local market penetration, and gradual growth. Sustainability for small businesses can be challenging due to limited resources, but they are often more agile and innovative. Local restaurants or small tech firms exemplify this category (Scarborough, 2015).

Global Growth and Developments of Transnational, International, and Global Organisations

The globalisation of business has led to the rise of transnational, international, and global organisations. Transnational companies operate across multiple countries but tailor products and strategies to local markets, aiming for a balance between global efficiency and local responsiveness. International organisations expand from their home countries into foreign markets, typically replicating their business models with minor adjustments (Bartlett & Beamish, 2018).

Global organisations, such as Google or Coca-Cola, operate with a unified strategy across all markets, leveraging global efficiencies and brand consistency. These organisations benefit from economies of scale and a cohesive global identity but must navigate complex regulatory and cultural landscapes (Hitt, Ireland, & Hoskisson, 2017).

Differences between Franchising, Joint Ventures, and Licensing

Franchising, joint ventures, and licensing represent different approaches to business expansion and collaboration. Franchising allows a company (the franchisor) to grant rights to another party (the franchisee) to operate a business using its brand and business model. This method enables rapid expansion with lower financial risk for the franchisor (Justis & Judd, 2003).

Joint ventures involve two or more parties creating a new entity to achieve specific business objectives. This collaboration allows sharing of resources, risks, and profits, facilitating entry into new markets or sectors. Joint ventures are common in industries requiring significant capital investment, such as automotive or telecommunications (Geringer, 1991).

Licensing permits a company to grant another entity the right to use its intellectual property, such as patents, trademarks, or technology, in exchange for royalties or fees. Licensing allows companies to monetize their innovations without directly managing production or sales, often used in pharmaceuticals or technology (Kim & Vonortas, 2014).

Industrial Structures and Competitive Analysis

Industrial structures and competitive analysis are crucial for understanding market dynamics. Market forces such as supply and demand, scarcity and choice, and income elasticity significantly impact economic operations. Organisations must adapt to these forces to maintain competitiveness (Porter, 1980).

For instance, scarcity and choice influence pricing and resource allocation, while supply and demand dynamics determine market equilibrium. Income elasticity measures how demand for a product changes with consumer income, affecting strategic decisions (Mankiw, 2018).

Examples of Organisational Stakeholders

Organisational stakeholders encompass a diverse group, including employees, communities, shareholders, creditors, investors, government, customers, owners, managers, suppliers, competitors, unions, trade groups, analysts, and media. Each stakeholder group has distinct interests, perspectives, and expectations (Freeman, 1984).

Employees seek job security and fair compensation, while shareholders and investors focus on profitability and return on investment. Governments and regulators enforce compliance and ethical standards, and customers demand quality products and services. Effective engagement with stakeholders is vital for organisational success and sustainability (Donaldson & Preston, 1995).

Stakeholders and Organisational Responsibilities

Organisations bear responsibilities to engage with internal and external stakeholders. This engagement involves understanding and addressing diverse interests and expectations. Transparent communication, ethical practices, and social responsibility are essential for building trust and fostering positive relationships with stakeholders. Organisations that successfully navigate stakeholder engagement often achieve long-term success and sustainability (Clarkson, 1995).

References

Bartlett, C. A., & Beamish, P. W. (2018) Transnational Management: Text, Cases & Readings in Cross-Border Management. Cambridge University Press.

Burns, P. (2016) Entrepreneurship and Small Business. Palgrave Macmillan.

Clarkson, M. E. (1995) A Stakeholder Framework for Analyzing and Evaluating Corporate Social Performance. Academy of Management Review. 20(1), pp. 92-117.

Donaldson, T., & Preston, L. E. (1995) The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications. Academy of Management Review. 20(1), pp. 65-91.

Freeman, R. E. (1984) Strategic Management: A Stakeholder Approach. Pitman.

Geringer, J. M. (1991) Strategic Determinants of Partner Selection Criteria in International Joint Ventures. Journal of International Business Studies. 22(1), pp. 41-62.

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2017) Strategic Management: Competitiveness and Globalization. Cengage Learning.

Justis, R. T., & Judd, R. J. (2003) Franchising. Dame Publications.

Kim, Y. K., & Vonortas, N. S. (2014) “Technology Licensing Partners”. Journal of Technology Transfer. 39(1), pp. 53-77.

Kotler, P. (2017). Marketing Management. Pearson Education.

Mankiw, N. G. (2018) Principles of Economics. Cengage Learning.

Porter, M. E. (1980) Competitive Strategy: Techniques for Analyzing Industries and Competitors. Free Press.

Scarborough, N. M. (2015) Essentials of Entrepreneurship and Small Business Management. Pearson Education.