Stakeholders and culture - Owners and governance - Ownership models
5 important questions on Stakeholders and culture - Owners and governance - Ownership models
What are the 4 main ownership models?
- Publicly-quoted companies
- State-owned enterprises
- Entrepreneurial businesses
- Family businesses
What are publicly-quoted companies?
- Their shares can be bought and sold by the public and they are most important in economies such as USA and Japan.
- Strong focus on profit, but often a delicate balance between short-run profits and long-term survival.
What are state-owned enterprises?
- Whole or majority is owned by national or sometimes international governments.
- Politicians delegate day-to-day control to professional managers.
- Have to earn some kind of profit in order to fund investment and build financial reserves.
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What are entrepreneurial businesses?
- Owned and controlled by their founders, who are very powerful due to this ownership and deep knowledge of their business.
- As they grow, likely to rely on professional managers and draw in external investors to fund new opportunities.
- Need to attend closely to profit in order to survive and grow.
What are family businesses?
- Ownership by the founding entrepreneur has passed on to his/her family.
- Family members may lack the skill to attend closely to strategy and they may therefore bring in professional managers.
- Long-term survival is often a very important objective, rather than profit-maximizing.
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