Financial and Marketing Strategy - Coursework Example

1 a). Given the scenario outlined in the case, there can be various options available that can be pursued by these graduates given that they are not inventing a new thing or product but they seek to improve something that already exists. In this case, they discovered that improvements can be made to the catalytic exhausts and make another model that would be user friendly to the environment. One alternative for the use and development of their idea can be publishing their proposal in a research or trade journal. The main advantage of this would be that the idea would stimulate interest among different stakeholders and can gain the support of the product licence holders. Since they would not have any legal right to make improvements on the catalytic exhausts for the reason that they are not the manufacturers, their proposal can gain momentum if it is opened to public debate whose influence can motivate positive response since it would be a good thing to the environment. However, the main disadvantage would be that the manufacturers may just copy the idea for refinement then refuse to have such changes on their product. (b) Another alternative to patent the idea then licence the product to an existing manufacturer would be the most viable option. One main advantage would be that they would not face much hassles with regards to procurement of an operating licence since they would be partnering with the manufactures of the product hence they would not require a big deal on licensing one main disadvantage would be that they may not be able to enjoy the benefits of their discovery as they maybe sidelined to positions of second or third party by the manufactures. (c) They may set up a company and manufacture and market the product themselves. Well, in the event that they manage to do this, this would be the best option of all since they would have overall responsibility of their product and would be in full control of the whole business. However, the main disadvantage would be that of copy right laws. This would not be their invention hence would need to fulfil the requirements of the law with regards to copyright. 1.2 (i) The main corporate objective goal would be the ability to meet reputable standards in the manufacturing industry. In fact, the main goal would be competence to produce quality products in the market. (ii) The financial strategy would need to take into consideration the injection of operating capital that would enable the organisation to realise some profit as well as the ability to cover the operating costs such as labour, raw materials and other operational costs that would be involved. (iii) The marketing strategy would involve satisfying the needs of the consumers as much as possible while ensuring that the business is being profitable and would be able to remain viable. (iv) The strategy to design the product should always be outstanding and the product should be able to compete for a top position in the market and should have outstanding key features that would be able to attract customers. (v) The manufacturing strategy would involve ensuring that the company is very productive and is competitive in the market so as to remain viable to be able to expand. (vi) The human resources strategy would involve employment as well as retention of highly motivated employees that would greatly help improve the performance of the organisation in the industry as a whole in terms of ensuring increased productivity 2. If the graduates decide to open their own company, then they would need to follow certain specifications as required by the laws of any given country with reference to starting a company. Every company is ought to be registered as per the outlined regulations and this is done by the Registrar of Companies in most cases who upon being satisfied with the application to open a company would approve then give a licence. The owners of the company or the partners who would be intending to form a joint venture would be required to be signatories whenever a new company is being opened. The ownership structure has to be clearly defined and the owners of the company would also be required to be known. In most cases when a new company is being registered, the costs normally include a registration fee that often accompanies the application. However, this money often varies depending with the nature and size of the company and ownership structure is also taken into consideration as well. 2.1 A partnership is a type of business entity in which partners (owners) share with each other the profits or losses of the business undertaking in which all have invested. Partnerships are often favored over corporations for taxation purposes, as the partnership structure does not generally incur a tax on profits before it is distributed to the partners. A Private ltd Company is a Registered company which has limited liability (the shareholders cannot lose more than their original shareholdings), and it has a minimum of two shareholders and a maximum of fifty. It cannot offer its shares to the public and their transfer is restricted. A private limited company is treated as a legal entity. A public company is that one which has issued securities through an initial public offering (IPO) and is traded on at least one stock exchange or in the over the counter market. Although a small percentage of shares may be initially "floated" to the public, the act of becoming a public company allows the market to determine the value of the entire company through daily trading.  Public companies have inherent advantages over private companies, including the ability to sell future equity stakes and increased access to the debt markets.  With these advantages, however, comes increased regulatory scrutiny and less control for majority owners and company founders.  Limited Liability Partnerships are an alternative corporate business vehicle that gives the benefits of limited liability but allows its members the flexibility of organising their internal structure as a traditional partnership. I would advise them to form a partnership since they would still be growing with limited funds. This would be most ideal as it would give the owners the equal opportunities of sharing the costs or the profits. 2.2 First and fore most, they have to prove that they are citizens of that given country if they want to register that company as a local entity. This is very important since it would be an appropriate measure to safe guard the interests of the public who may be victims of fraudsters who would only be interested in reaping off money while they would not be genuine traders. They would need copies of identity documents that would be accompanied by certified avidafits showing proof of residence such as physical address as well as bank statements. They would also need to prove to the registrar of companies that they can sustain their business and also if their business would not interfere with the proper functions of already established business entities. 2.3 The main costs in starting a company would include the money to buy raw materials that would be used in the manufacturing process. One major consideration would be finding a site to establish a company. This may be rented property or purchased but the cost of this is very important in starting a company. There would be need to have floating capital that would be able to cover the labour costs in form of wages for at least three months before the company start realising its profits. This would be an appropriate measure that would ensure that production is not disturbed at the early stages of establishing a company. They would also need to cover insurance costs as these are very important. Normally a company is expected to be insured in case of accidents or outbreaks of fire. 2.4 There could be different sources of getting money depending on the financial houses of a particular country. In most cases there are development banks or even commercial banks which can offer loans to aspiring business people at a substantial interest rate. This may be the easiest way of accessing capital to start a business. However the main risk of this type of accessing capital is the interest rates which may be very high such that in case of a business not being viable, it may be difficult for that business to realise much profits. So basically, high interest rates may hamper the efforts of a new business in particular. Aspiring business people can also apply for grants from the government through a special Ministry that would deal with Trade and Development of Industry. However, grants in most cases would be made available to most deserving cases so it may be unfortunate if the business you would be applying for is deemed not suitable to get a grant. Draft Xxxx X lane Avenue Boston O064 14 Nov. 08 The Registrar of Companies Box NY x Boston Dear Sir/Madam RE: APPLICATION FOR COMPANY REGISTRATION: SECTION 2, CLAUSE 2.2 OF THE COMPANY ACT. The above matter refers. We the undersigned are a partnership and would like to register our company under Section 2, clause 2.2 of the Companies Act. We would like to register a company which specialises in manufacturing catalytic exhausts that would be more environmental user friendly. Herewith attached is our proposal for registering a company as well as other supporting documents. Your consideration to our application is greatly appreciated. Yours faithfully Sig. 1…………………………… Sig. 2…………………………… Read More