1. How would you describe the founding team of Fenton, Hoffer, and Le Tuan? Is it a balanced team? What does each member bring to the business? Can you see gaps in their skill sets and capabilities that should be adjusted for in some way? I believe that this team it’s composed of three members that bring a well-defined set of skills, strengths and social and ethic believes that make it into a well-balanced management team. “Whatever the business, a small firm needs managers with an appropriate combination of education, experience, and skills.” (Longenecker, Petty, Palich, Hoy, Pg. 197) Having a strong management team should be an important part of a business plan when appropriate and I believe Fenton, Hoffer, and Le Tuan accomplished this. …show more content…
What is the form of organization that Fenton, Hoffer, and Le Tuan first chose for Couchsurfing International? Assess the advantages and disadvantages of the major organizational forms mentioned on Chapter 8. Which of these would have been best for the company when it was founded? …show more content…
(Longenecker, Petty, Palich, Hoy, Pg. 201) This organizational form is the most common with small business and while it allows the owner to receive all the profits it also makes the owner shoulder all the legal responsibility of ownership. • Partnership – “A legal entity formed by two or more co-owners to operate a business for profit.” (Longenecker, Petty, Palich, Hoy, Pg. 202) In a partnership, the advantage for the owners is the capability to reduce the workload and the financial burden, especially if each partner has management skills that enhances the business. The disadvantages of a partnership such as personal conflicts and leadership expectations, therefore this organizational form should only be chosen once all other options have been considered. • Corporation – “A business organization that exists as a legal entity and provides limited liability to its owners.” (Longenecker, Petty, Palich, Hoy, Pg. 205) The main advantage of a corporation is that the business liability falls onto this entity instead of the individuals that own it. The disadvantages of this organization are found mostly in its formation. A corporation is expensive to create and requires compliance with state
The vertical Team includes the CEO of the company, the Regional manager and the Store managers.
The team represents three main components the visionary, entrepreneur, and the conception. With all of these parts, the team is well balanced. A strong team can secure the necessary capital, they can reassure investors they will be profitable, and can find a wide range of talent to work for them. The team has a well balanced educational, and experience background for the field.
As with any kind of business formation, there will always be, to some extent, negative aspects associated with the creation. To this date there is no perfect form of business entity. When deciding on which entity is best suited for a business, there are many things to be considered. Prior to deciding on a business structure, some major points to be thought about are both the legal and tax ramifications associated with the entity chosen. Another criteria that should be considered are the costs connected with the entity type. These cost include the cost of formation as well as any continuing administrative cost that may be incurred. (“Choose Your Business,” 2011)
Team Process is defined as the team members’ behaviors and interactions, occurring over time. It is through this process that all of the members’ expertise and knowledge, along with other inputs, functioning in the group environment, manufacture an output. MGI’s team process seems ineffective, resulting a lot of conflicts among the subgroups of the MGI team and inability to complete the business plan. At the “launch” of the team in Mellon Hall on HBS campus, it was clear that the team did not have any specific role for each of the team members, nor was there a clear leadership arrangement. “..It seemed to me that Sasha saw our role a...
Sole Proprietorship: This a type of organizational form “where there is no legal distinction between the business and its owner”. ( ) Are easy to start, as well as relocate. There is complete autonomy over every aspect of the business and 100% of the profit is retained by the owner and only taxed once. Although there is often a high tax rate on the profit and the capitol needed to start or grow the business can only come from the sole owner or their personal means of credit. Because the business and the owner are legally the same entity there is unlimited liability to the owner to honor all contracts. Also due to the lack of legal separation the business ceases to exist upon the death of the owner.
Corporations are the biggest type of business out of all three. Corporations are considered to be separate from the owners and they are liable for their own debts. When investors invest in a business they are held liable for only what they invest in the company in event of failure.
As Devise Products Unlimited (DPU) experiences ongoing quality issues in its manufacturing of product, chief executive officer, M. Thomas, has decided to take corrective action through the use of leadership teams. This will be the organization's first attempt at utilizing a team structure to solve its manufacturing department issues; therefore, it is important to select the right leaders and team members to improve the likelihood of success. Thomas has decided to break the production division into teams of four mechanics, two engineers, and a team leader (CSU-Global, n.d.a). According to Katzenbach and Smith (as cited by Tiffan (2014), teams should have no more than 10 members to be effective. To ensure that team leadership is successful, Thomas will want to identifying the right leader and leadership style, define the purpose and goal, encourage structure and
According to the text book, a corporation is a legal entity which separates the distinctions between owners and managers. A corporation has three main advantages:
The Different Ways Organizations Can Be Structured and Operated There are four major ways a company - organization can be structured and operate. P.C.G (o) Ltd I would dare say that is structured and operates with the functional structure. In order to make it clear and understandable I am analyzing here below the four ways that organizations can structure and operate. We will observe that all four structures have there advantages and disadvantages. In order also to assist you understand better the differences of the four ways that organizations can be structured see in Page 4 & 5 Figures 1,2,3 which are the layout of the organization charts for each structure: 1.
A General Partnership is composed of two or more persons (usually not a married couple) who agree to contribute money, labor, and/or skill to a business. Each partner shares the profits, losses and management of the business and each partner is personally and equally liable for debts of the partnership. In terms of asset protection, general partnerships can be even worse than sole proprietorships.
Another example of business ownership is a partnership. Examples of partnerships used in business are accounting firms and solicitors firms. A partnership has two or more owners. They work, manage and are responsible for the running of the business. Individual partners may concentrate on a certain aspect of the business where they have expert knowledge. As there is more than one owner, larger amounts of capital can be fed into the business via personal funding or bank loans. Partnerships have an unlimited liability.
General partnership. A general partnership is utilized when two or more people want to start a business. In most respects, the business is divided equally between the owners which includes, profits, debts and management of the business and any losses to the business are to be deducted from personal taxes. Mann & Roberts (1979) comments although not required, development of written agreements concerning the division of the business and how it will be managed removes doubt and ensures everyone is traveling in the same direction (p. 47). The disadvantage of this form is everyone is unlimited in the liability of the business. It does not matter if the others disagree with an issue and one party enters into an agreement of debt, all are now
David Fletcher is a portfolio manager with many years of experience and success under his belt. He currently is a limited partner managing an Emerging Growth Fund for Jenkins Fletcher Partnership or JFP. The company was small when David started and consisted of a CEO, Paul Jenkins, CFO, 2 financial assistance, 4 research analyses, 1 research assistant and a receptionist. David first started with JFP he hired an Administrative Assistance, Whitney to help organize his calendar, contact companies and take messages, etc. Whitney proved to be capable and eager to learn. Under David’s guidance she received her MBA and was promoted to a Portfolio Manager in training. One of her primary areas was Healthcare but she also had retail and environment. In addition, Whitney developed a solid network of contacts and was very good at annualizing the financial statements of potential business. However, David was still holding her hand and had not allowed her to invest completely without his input. Also, she was just starting to attend conferences solo. Although Whitney was helpful, David felt he needed to form a team to help with the labor intensive job of processing all the information for managing the fund. His typically day was consumed by meetings, phone calls and conferences and he could not keep this pace for the long haul. Therefore, he discussed the possible of forming a team with Paul Jenkins and several of investment firms before proceeding with the concept of a team at JFP.
Times, N. (2011). Legal form of business Organization. Retrieved December 19, 2011, from about.com: http://biztaxlaw.about.com/od/businessorganizationforms/a/legalbizforms.htm
...ted Partnership can be defined as a different form of general partnership requiring a partnership agreement among all parties involved. This agreement may include things such as information about business, what products or services will be done in the establishment. There must be at least one general partner among the group to do a limited partnership. This individual will be the team leader and manage operations as well as being responsible for making decisions for the business. All those who are limited partners are lacks authority in decision making or managing operations. However, they are not fully responsible for any debts or other financial problems in the business. Personally, limited partners can be viewed as an investor more than anything else. In fact the only aspect they are at risk to lose is there investment in the business if anything were to go wrong.