Bus 211 Business Models Systems And Organization Research Paper

Business Models, Systems and Organization
Colette Selle
BUS/211
June 15, 2015
Instructor: Tammy Patchin

A local business that I frequent on a daily basis is Walmart, and will be explaining the types of business systems there are and how they incorporate them within the company. The three main components of a business system are: business commerce, business occupation, and business organization. All three of these components are significant to running a business, and some companies use some parts more than others.
BUSINESS SYSTEMS Business commerce is the process in which people produce, exchange and trade goods and services (Jones, 2007). Walmart buys produce, merchandise and household goods from different entities that they in turn trade to consumers for money. In recent years, Walmart has started providing services such as hair salons, optometry, and a pharmacy.
Business occupation is where an acquired set of skills and abilities that allows people to create valuable goods and services (Jones, 2007).
The different departments that use some of these specialized skills are in the deli, bakery and the tire and lube department. Employees have a set area of skills that provide these services to the consumers on a daily basis. One of the main areas that uses these specialized skills is the Pharmacy. The business organization is a system of task and authority relationship that coordinates and controls the interactions between people so that they work toward a common goal (Jones, 2007). For Walmart, they are always looking for ways to reduce cost. Also, looking for companies to work with that produce large quantities of value products so that they can reduce the price sold to the consumer. By being a big leader in these important areas they have created a common goal between them the business and me the
consumer.
TYPE OF BUSINESS ORGANIZATIONS Walmart is a company that is a joint-stock company with numerous stockholders and started offering common stock to the public back in 1970. As of August 25, 1972 they began trading on the New York Stock Exchange (NYSE) and information is available on Walmart’s website. Jones (2007) in a joint-stock company an entrepreneur raises capital by issuing stock certificates of its ownership. While selling shares of the stock to investors that guarantee them the right to a certain percentage of the company’s profits (pg.55). A company can also become a limited liability that will prevent creditors from seizing the personal wealth of any of the stockholders in the event that a company cannot pay their debt. This business organization was developed by capitalists and industrialists that lobbied for laws to protect businesses in the event a company goes bankrupt. While a partnership consists of one or more skilled professionals that pool not only their talent but also resources to establish a company where they are the only stockholders and owners. Commonly known professionals to choose this type of organizations consist of doctors, bankers and accountants for example. Each partner receives a percentage of stock based on the initial amount that they invested in the company. As the business continues to grow new partners are normally added to increase investors and share the risk with more people. A sole proprietorship is a non-incorporated business that is owned by one person. This type of business organization is the easiest type of business license to obtain but due to only one owner there is no one to share the debts or risks. The reason this is a popular choice for highly paid skilled individuals is that they want to avoid disputes that might arise out of a partnership. Entrepreneurs also choose this option when starting a new business for some of these reasons.

References
Jones, G. R. (2007). Introduction to Business How Companies Create Value for People. New York, NY: The McGraw-Hill Companies, Inc.