Forms of business organization retailing and classification of retail outlets

Forms and Functions of

Business Organization

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•Establishing a business individually or by a group leads to a formation of a business organization

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Forms of Business Ownership

• Sole or Individual Proprietorship

• Partnership

• Corporation

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Sole or Individual Proprietorship

• owned and operated by an individual

• best illustrated as professional and service businesses such as

• repair shops, beauty parlors, dental clinics and more

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Sole or Individual Proprietorship

Easy to start because of small capital for instance P100,00 for a small grocery

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PARTNERSHIP

• Two or more people contribute money, property or industry for a common fund

• Profit is divided among the partners • The contract is filed with the Securities

and Exchange Commission• A contract of partnership is formed

with the necessary provisions in it called the Articles of Co-partnership

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PARTNERSHIP

Advantages:– Easy to organize with relatively simple legal

requirements– There are more personal talents are

available– There are more resources (e.g, capital)– Provision for better conditions and facilities

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PARTNERSHIP

Disadvantages:

– Partnership may be terminated due to death or withdrawal of partners

– Sharing of managerial responsibilities may be a problem

– Management disagreements may happen

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CORPORATION

a.Composed of 5 to 15 original members organized on a voluntary basis

b. Members are called stockholders or shareholders

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Roles of stockholders

• share in the ownership of the company jointly with the incorporators

• appoint directors that systematize plans and policies and designate officers

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CORPORATION• Has its own name• May enter into contracts • May borrow or loan money

• Various persons, through the purchase of shares through stocks, hold ownership

• The principal administrators of the corporation are the following: President, Vice President, Corporate Secretary and Treasurer

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What stores do you usually patronize?

What stores do you usually patronize?

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Retailing is an entrepreneurial

activity which involves all marketing transactions between a seller and a buyer or an end user

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Retailing dates back to ancient civilization when trading took place between tribes by exchanging their products. This was known as the barter system- goods exchanged with other goods, one skill

changed with goods,

or one skill exchanged

with another skill.

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Classification of Retail Outlets

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According to Ownership

1. Independent Stores- owned and operated by its owner

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According to Ownership

2. Company store- owned and operated by a company engaged either in a manufacturing or servicing business

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According to Ownership

3. Manufacturer’s Outlet Stores- line of merchandise which is the product manufactured by its own company and sells it at factory price

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According to Ownership

4. Chain Stores- group of stores selling the same line of merchandise established in different localities

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According to Ownership

Cooperative stores- most popular type is the consumer’s cooperative

Patronized by the members itself

Middlemen is eliminated

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According to Line of Merchandise

Classification according to the kind of goods or merchandise they sell

1. General Merchandise Store

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According to Line of Merchandise

2. On-line or Specialty store- a single type or closely allied types of merchandise.ex. hardware stores,bakeries, shoe stores, grocery stores, RTW’s, furniture stores

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According to Line of Merchandise 3. Department Store-One big organized

store divided into departments or units.Eas department carries a single line of merchandise.

25Classification According to Method of Operation

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26According to Method of Operation1. Traveling Store- -go directly to the consumers instead of the other way around

27According to Method of Operation2. Mail-order Store- Sells good by mail

28According to Method of Operation3. Automatic Vending machine- sell merchandise like softdrinks, sandwiches, candies, and other snack items

29According to Method of Operation

4. Self-Service Stores- consumers are free to pick his choice of merchandise from open shelves and pay these in the cashier’s boot

30According to Method of Operation

5. Full service stores– 24 hours full service allowing consumers to avail of services or merchandise at anytime of the day

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1. Personalized or face –to- face

transactions

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2.Impersonalized services- Involve less personal

contact between buyers and sellers.

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3. Indirect level of services

Use of vending machines and the mail-order stores that provide no opportunity at all for a face-to face contact.