Types of Powers in Business

The following are important power in the Business

1. Power of Reward

Under this power you can approve or disapprove the reward to an employee. The types of rewards available are

• Annual increment
• Bonus 
• Promotion

2. Power of Authority 

Under this power the manager is authorized to issue instruction to subordinate . This power is also known as legitimate power

3. Power of Skill and Expertise

This power comes with job knowledge , experience, qualification. The other people believe in your saying because of your power . for example finance expert opinion about the sources of fiannce and finance structure of the entity would be a final verdict.

4. Personality Power

Some people derive power from the charismatic personality.

There are basically two types of shares.

There are basically two types of shares.

1. Ordinary shares also known as common shares
2. Preference Shares

Ordinary Shares

Ordinary shares are issue to general public at fixed price and then these shares are traded in equity market i.e ( Stock Exchange). The ordinary shares are bought by investor for dividend earning and capital appreciation.

Preference Shares


Preference shares are basically issued against a fixed rate of return. company has to pay this return even in case of loses is reported by the company .

Types of Non Financial Objectives

Types of Non Financial Objectives

The main non financial objective of organization may include the following

1. Welfare of the employee
2. Welfare of the society
3. Quality Service provision
4. Customer satisfaction
5. Research and Development Expenditure
6. Maintaining Market Share

it is important to remember that non financial objective may not providing direct financial benefit or advantage to the company but these objective is some way or other is supporting the core objective. Therefore we would explain that how these non financial objective helps in achieving the main objective of the organization.

Welfare of Employees:- The welfare of employees include better wages rate, better working condition, better medical and health facilities. The welfare of employee will improve the job satisfaction level and will act as motivator for the employee . The job satisfaction will improve efficiency of employee.

Welfare of Society :- The society is more concern about the environmental changes due to existence of industry. This is important aspect for the existing of the company . if community file a complain against the company for environment destruction . The company will face many difficulties and even the license of operation can be cancelled. So again though this is a non financial objective but supporting the main objective .

Customer Satisfaction :-This include to meet expectation of customer about the product or services. There is very famous saying in this regard that customer is always right . in china this statement has more focus and they say Customer is God. The company existence is greatly depends on customer confidence on the company. This is the reason that new business entry takes decade to achieve a reasonable market share.

Research and Development :- This means to bring creativity and innovation in the organization. This helps organization to introduce efficient processes in the organization. The efficient process will result in competitive advantage which will improve the organization profitability.


Market Share :- This means to retain the current customer and attract new customer .

Advantages of Vertical Integration

Advantages of Vertical Integration

There are basically two type of vertical integration

1. Backward vertical integration
2. Forward Vertical integration

Backward Vertical integration  

In backward vertical integration you buy your support function or raw material  . Typically example a car restaurant chain established the poultry farm.