Business English (3) Corporate Structure Lesson 7 Vocabulary Now look up the meaning of the words below before we begin: Hierarchy: an organization or structure in which the staff are organized in levels and the people at one level have authority over those below them. Investment: the use of money to get a profit or to make a business activity successful, or the money that is used Structure: the way in which the parts of something are connected with each other and form a whole Task: a piece of work that must be done System: a group of related parts that work together as a whole for a particular purpose Share (N.): one of the parts into which ownership of a company is divided Long-term: relating to what will happen in the distant future Understanding Corporate Structure Corporate structure or organizational structure: Is a system in which tasks are assigned and divided within a company. It’s usually a system of hierarchy in which the CEO (Chief executive officer) is the person who has highest authority. Corporate structure will differ from one company to another and from one country to another and even from one culture to another. Corporate structure will also differ based on the company’s objectives and goals. The Main Officers in Corporate Structure The Tasks and titles each member of a company has are different and they can be divided as follows in this example: The CEO: Is the person responsible for a company’s long-term goals and strategies. CEO The COO (chief operation officer): Is the person responsible for daily tasks such as production, marketing and sales. COO CFO The CFO (chief financial officer): is the person responsible for the financial health of a company and the income and outcome of the company. What is the difference between a CEO and a COO? A COO typically will manage part or all of the daily operations of a company. The Chief Executive Officer is now free to focus more on the long-term strategy of the company. Most small companies don’t really have a COO. However, in larger companies a COO is needed. Share Holders/Stock Holders Share Stockholders are people who own a Holders share in a company. For example; Elect Dave owns 15% of the company so Board of this makes him a stockholder. Directors Appoint To insure the investors or stock holders interests a board of Officers directors is created. Hire Staff Board of Directors Share The board of directors is made of Holders share holders and managers. Elect They check the company’s overall performance and make sure that Board of the company is maintaining the Directors interest of stockholders. Appoint Officers The board of directors also appoints the management team i.e. The CEO, the COO, the CFO. Hire Staff Board of Directors Board of directors are members of company who are appointed to oversee the activities of the organization. They are basically appointed to see that whether management is working according to prescribed rules and regulations or not. Different Types of Corporate Structures Mainly there are two types of corporate structures; flat and hierarchical. Manager A flat structure is used in small companies and start-ups. There is usually one manager who is Employee Employee Employee the CEO or the managing 1 2 3 director and the rest of the staff report to him and follow his/her lead. Different Types of Corporate Structures A hierarchical structure is used in big companies. In this structure there are more levels of responsibility and more defined CEO roles. So employees are split between those who produce products and COO CTO CFO services and those who supervise Engineers/IT them or lead them on a daily basis Accountants and those who set the long-term staff plans. Video: Corporate Structure https://www.youtube.com/watch?v=wO_-MtWejRM https://www.youtube.com/watch?v=wO_-MtWejRM Different types of corporate structures https://www.youtube.com/watch?v=Chb3Mk7wVVQ IKEA corporate structure IKEA is a Swedish company that focuses mainly on house furniture. They sell chairs, cushions, tables and whatever you may need at home. https://www.ikea.com/gb/en/this-is-ikea/about-the-ikea-group/or ganisation/ Discussion Topic A potential client heard about your company and would like to know more about it. • How should you introduce the company and yourself? • What sort of services do you provide in your company? • How should you exchange contact information?.