Business Organization - Essay Example

Business Organization Chapter 4: 1 (a).Which entity will you use to organize your company and why? The new company will be producing an affordable Smartphone that puts together the features of an excellent phone, camera, and a music player. Since I will be working with other team members, I will organize the company as a limited liability company (LLC). This is because this mode of organization will allow the members to separate their personal affairs with the operations of the firm. In addition, an LLC provides protection against the owner’s personal interests. A limited liability company is the most suitable business organization in the mobile industry market. (b). What are the advantages and disadvantages of your choice? Advantages More flexible: Even though a LLC should file all its articles with the national government, it has a more flexible management as compared to a corporation. In this regard, this permits the business owner to develop a structure based on the needs of the business owners. Limited liability: As the name suggests, the LLC provides protection to the owners as well as the shareholders from personal liability in case of debts or judgments against the business venture. Tax options: A limited liability company has the freedom to choose if it wants to be taxed as a corporation, sole proprietorship, or a partnership. Little compliance issues: In most cases, an LLC does not require to an annual general meeting or a board of directors. In addition, there is less paperwork as well as record keeping needed in comparison to a corporation. Perpetual existence: An LLC can continue to exist even if the owners die or sell their shares. Taxes: In a limited liability company the profits earned are taxable only at the corporate level. Disadvantages All members of the LLC need to pay taxes even if they do not share in the distribution. LLC members are not allowed to pay themselves wages. LLCs pay more fees to file as compared to other business entities. The limited liability companies have some protections making some businesses not eligible to file as LLCs. With regard to building capital, unlike corporations that issue stock so as to increase funds for their companies, limited liability companies have to put in more effort to look for investors along with other sources of capital. LLCs are more vulnerable to role confusion. This makes it hard for investors to know who is in charge. 2. Highlight what should be included in a partnership agreement. According to (Solovic, 2012), the six elements to include in a partnership include: Percentage of ownership: The partners should record the amount of money each partner contributes to the partnership before its opening. These contributions are utilized as the basis of ownership percentage. Allocation of profits and losses: The partner need to make a decision if the looses and profits will be allocated in proportion to a partner’s ownership interest. Who can bind the partnership: Any partner can bind the partnership without getting permission from the other partners. Making decisions: The partners need to come up with a decision-making process in advance so that the business operations can go on smoothly. Death of a partner: If a partner dies or leaves the partnership there is a need to have a buy or sell agreement. It outlines a method by which the partnership interest will be valued and interest purchased. Resolving disputes: Inclusion of a mediation clause in the partnership agreement will provide a framework to resolve major conflicts. Chapter 6: 1. What is the mission of your company? Riding the wave of the future to benefit everyone who uses our products. 2. What is the vision of your company? Being a great place for the people to work in addition to developing responsible citizens by supporting and building sustainable communities, and getting the customer’s associate the company’s products with absolute best service. 3. How do you know if there is demand for your company? By there is an increased number of customer feedbacks regarding the smartphone’s advertisements. If the firm receives more orders of the product 4. Identify the key functions for the production processes. To ensure that the demands by the customer are met Ensure that the finished smartphones are of required specifications Responsible for the design and development Attain production targets by making maximum use of available resources and increase profits through productivity 5. How will you ensure superior customer service? Offering periodic employee-customer training programs Providing discount for the first 200 customers Provision of after-sale services, such as, free installation of applications Give the employee the authority to make difficult decisions without the supervisor’s approval. 6. What will be your hours of business? Monday to Friday-Open 6am- Close 9:30pm Saturday – Open 8am - Close 3pm Sunday-Closed 7. How many employees do you need? The firm will require 15 employees since it is a start-up business. 8. Who will supervise? The supervisors will be the head of departments 9. Provide a sample organization chart Chapter 7: 1. How will leadership be illustrated within your company? The leadership of the firm will comprise of the executive management, senior managers, and head of departments who will ensure strategic direction of the business. The company will employ democratic leadership. An open-door policy will be adopted and most decisions will made prior to consulting. Chapter 8: 1. What are the inputs, transformation processes, and outputs related to your company? The inputs to makes a Smartphone that has an excellent phone, camera, and a music player include several sketches as well as wireframes. The sketches will determine the phone’s size, portability, and weight. The team will decide which designs will become prototypes. Next phase is electronics and software. The phones parts will be assembled including the electronic board. touch screen, battery, and sim-card slot among many others while the software will be developed by the programmers. The final step is construction and fabrication. The phone’s casing is the last one to be constructed. The phone components will then be tested and verified. The phone will then be packaged and sent to retail outlets. 2. Discuss your supply chain. These supply chain stages include (Chopra & Meindl, 2012): • Customers • Retailers • Wholesalers/Distributors. As cited by (Dedrick, Kraemer, & Linden, 2011)most mobile phone distribution networks are global in order to access a wider customer base. This includes the use of online marketing. • Manufacturers • Component/Raw material suppliers including hardware and software. The company will also work with indirect suppliers who will provide services and equipments required for our daily operations. References Chopra, S., & Meindl, P. (2012). Supply Chain Management. Upper Saddle River: Pearson Prentice Hall. Dedrick, J., Kraemer, K., & Linden, G. (2011). The distribution of value in the mobile phone supply chain. Telecommunications Policy , 35 (6), 505-521. Solovic, S. (2012, August 14). Retrieved November 4, 2014, from 6 Things Every Partnership Agreement Needs: http://blogs.constantcontact.com/fresh-insights/6-things-every-partnership-agreement-needs/ Read More