Scenario 1 29/09/16 Deciding on a Business Structure
During your first year at University you were part of a team who developed an electronic device. You were all rather pleased with it and one or two of you wondered about the possibility of mass producing it and selling it for profit. One evening you decide to raise the matter with the local barman.
Barman Well you will never get rich working for someone else. You should take that electronic gizmo you’ve got there make loads of them and sell them.
You Yes, but if it was that simple everyone would be doing it, and they’d all be rich too. I don’t know anyone who runs their own business
Barman Yes you do. Bill has his own lorry, he does haulage work. He seems to be doing alright.
You Doesn’t look very rich to me, doesn’t come in here much either. Seems to spend a lot of time working or sorting out books or accounts for the VATman.
Barman Well electronics is different isn’t it? Especially if you are a boffin doing electronic design at Huddersfield University. You could make loadsamoney.
You I could probably lose loadsamoney too. Anyway I need to find out how to set up a business first.
Barman Well Bill did it. Think he started as a sole trader or something then decided he was better off being limited or a plc or something. I don’t know, you should talk to him.
You The trouble is there are a few of us involved with this design and we have a few more ideas between us.
Barman Well why don’t you talk to Debbie, Jane and Marie? They’re partners.
You I thought they were hairdressers?
Barman Yes and they work for themselves, got their own premises and everything, they’re not a franchise.
You Didn’t realise how many people ran their own business, but none of those you mentioned involve design and manufacture. I think it would need a lot of careful planning, but you’ve given me something to think about….
o List the type of business structures that exist in the UK today.
o Discuss the relevance of the different possible structures and explain which structures are appropriate under different circumstances.
o Choose an appropriate business structure for designing, manufacturing, marketing and selling your electronic device.
o Explain your reasons for this choice (as opposed to some other structure).
Quick development of inn industry Quick development of inn industry may expand turnover route because of a similar labor pool. The quantity of inn rooms in Hong Kong should be relatively multiplied in the following 10 years, as indicated by the leader of a legislature monetary team (Siu and Nip). The reason of strongly increment the quantity of inn rooms most likely pertinent effect of Hong Kong-Zhuhai-Macau connect and the rapid cross-fringe railroad. Because of fulfill a vast request of travelers, lodgings need to retain gigantic quality representatives so that can keep up the standard of value. Be that as it may, because of the work supply can’t take care of the demand in the market; the current representatives may attempt to try to better occupations because of accessibility decision (Lei). Indeed, even there isfresh graduates consider in lodging administration in consistently yet not all graduates will work in the inn business (The Greatest Challenge). Overwhelming workload, move work, extra minutes working those reasons may influence the graduate’s select inn industry as their lurch. Attributable to the impediment of work, the current staff can be specific in their decision of work since fast development of lodging industry. For example, the less positive activity like stewards, nourishment and drink servers and room orderlies are particularly high turnover route, attributable to substantial workload and absence of engaging quality (Lei). To pull in those crucial front office staff, numerous lodgings will give high compensation and better position to viably draw in representatives (Lei). In this manner, more workers will fire their work to pick the activity with important advantages. Government arrangements Statutory Minimum Wage arrangement Statutory Minimum Wage may drive manager to disband their representative or seize the first incidental advantages, for example, staff’s feast, uniform and break period to remunerate the extra cost identified with this arrangement (Hong Kong specialists.). Worker pay is one of the biggest expenses in lodging (Su, Heo and Leung). Despite the fact that the Minimum Wage Ordinance was HKD 30 every hour since 2013, the normal time-based compensation in lodging workers was about HKD62 (Su, Heo and Leung). In spite of the fact that the strategy can adjust the unnecessarily low wages and keep the loss of low-paid occupations (Labor Department), it likewise influences high turnover path because of employment disappointment. Keeping in mind the end goal to recover the extra cost, some inn may diminish representative advantages or contracted all the more low maintenance worker to recuperate the cost along these lines crush relationship. For example, some lodging continued utilizing their staff on an essential compensation and made not offer them a ceaseless showing with regards to (Su, Heo and Leung). Other illustration, some inn had changed to pay their room orderlies in light of the quantity of the rooms they had been cleaned rather than pay the working hour after the execution of Statutory Minimum Wage Policy (Su, Heo and Leung). In the event that the room specialists set aside longer opportunity to make up specific rooms that chief appointed to them, they have to work additional time without pay. It might influence worker work fulfillment accordingly increment turnover rate. It is a typical learning that build up a decent connection amongst business and worker can most likely diminish turnover way. Notwithstanding, Statutory Minimum Wage approach was offer worry to bosses to keep up their constrained cost with the goal that upward weight to workers and disappointed on work fulfillment. Managers have a tendency to diminish the quantity of representatives and shortening the staff working hours to counteract pay (Su, Heo and Leung). Likewise, enlist all the more low maintenance representatives to supplant the full-time workers because of successful and effortlessly to keep up balance cost increment. Thusly, the creators had specified that inn have a tendency to decrease the cost of periphery cost as their cost minimization procedure (Su, Heo and Leung). In perspective of representatives stand up to the workplace that without unpaid break and change the staff’s menu to decrease their staff advantage, they for all intents and purposes increase the negative state of mind in workplace and occupation fulfillment subsequently make workers move to different ventures.>