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2 Recreation, leisure and tourism organizations

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Learning outcomes • By the end of this session students should be

able to:– distinguish between private sector and public sector

organizations– understand the differences in finance, control,

structure and objectives of organizations– understand ways in which capital can be raised– analyse movements in share prices– analyse the effects of different organizational

structures on organizational behaviour

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Public sector organizations

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Public sector organizations• Local government organizations

– Sources of finance– Ownership and control– Aims and missions

• National government organizations– Sources of finance– Ownership and control– Aims and missions

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The Beach at South Bank, Brisbane

• Local government run

• Free to use (why?)

• Financed from?• Would you find

a similar facility in the UK?

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Private sector organizations

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Private sector organizations

• Profit-making organizations– Unlimited liability– Limited liability– Sources of finance– Share prices and the stock market– Aims, missions, ownership and control

• Non-profit-making organizations

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Eula’s Café, Englishman’s Beach, Tobago

• SME• Capital?• Aims?• Growth?• Impact?• Sustain-

ability?

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Virgin Blue

• Owned by Richard Branson

• Floated in December 2003

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BAA Heathrow

• Was government owned

• Privatised by Mrs Thatcher

• Now a public limited company

• Differences?

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The National Trust

• A not for profit organisation

• Aims = heritage conservation

• Financed?

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Tourism Concern

• UK based pressure group

• Aims to promote responsible tourism

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Review of key terms• Public sector

– government-owned.• Private sector

– non-government-owned.• Council member

– elected councillor.• Council officer

– paid official.• Private limited company

– company with restrictions governing transfer of shares.• Public limited company

– company whose shares are freely transferable and quoted on stock market.

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Review of key terms• Public corporation

– public sector commercial-style organization.• Dividend

– the distribution of profits to shareholders.• Limited liability

– liability limited to amount of investment.• Flotation

– floating a private limited company on the stock market, thus becoming a public limited company.

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2 Recreation, leisure and

tourism organizations:

The End