Personal Work Experience

Personal Work Experience

1. Terms of reference

I have been employed by Hangloose, a small business in Middlesbrough,

as a management consultant to assess and evaluate their company’s

performance in their period of growth and to produce a report to

identify problem areas. My analysis will be produced in report form

and will highlight the problems ready for feedback to the company.

2. Procedure

The information I am going to focus on in the report will be obtained

from the business scenario I have been presented with. However I will

introduce other knowledge from the use of text books, internet, and

notes made in class.

3. Analysis

3.1 Ownership & Classification

Hangloose t-shirts started off as a small partnership with two owners

directly responsible for all the decisions made within the business. A

partnership consists of between 2 and 20 owners, which could have been

advantageous to this business if one partner desired to have less

responsibility than the other. We already know from the case study

that one partner is more creative than the other, proving that the

business has allowed itself to be exposed to creativity that would not

have existed had the business been a sole trader without the creative

partner. However it could prove to be a problem because the profits

have to be shared, or conflict could arise if the owners have

different ideas about how the business should be run. The partners

will have invested their own capital into the business and will have

unlimited liability of their investment. They could potentially lose

all of their possessions in order to repay debts caused by the

business.

Over the last three years however the company has continued to grow

and grow and has diversified into other markets allowing itself to

expand to operate as a limited company (LTD). A business becomes

limited when it has been incorporated and in the eyes of the law gains

a separate legal identity from its owners. Documents have to be signed

such as the articles and memorandum of association that determine the