A franchise is a form of business organization in which a firm already has a successful product or service, ("Investorsword.com", 2012). The franchisor then enters into a continuing contractual relationship with other businesses for the use of their product or service for a fee. A franchise would be an excellent choice for an individual who has the funds to start up a business. Starting up a business is a high risk taker because one doesn’t know what to expect. With a franchise the risk is somewhat lower because the business has already proven itself to be successful.
The topics I feel that had the most educational value were all of the topics. I find not one is more important than the other and each topics builds off previous topic discussed. These topics discussed pertaining to microeconomics are critical to companies, firms, and consumers. Companies know how much output to produce based off of profits. Companies will know where they can maximize these profits.
Method Information for this analysis was gathered from Curtin library resources including scholarly journals and government reports. Websites were also investigated although their credibility was cross- checked with a tutor. Body Point 1 Biobutanol being used as a fuel is excellent as a future prospect, as it has high potential to become one of the most economically efficient fuels. Biobutanol will eventually become cheaper than gasoline as additional research is conducted to unearth more efficient ways in utilising biobutanol rather than gasoline. Through an economical aspect, using biobutanol would prove to be cheaper than gasoline as it has a higher energy content, lower water absorption and better blending ability and
Subject: Case assignment 5 - Valeant Pharmaceuticals – Case 28 The transaction between Valeant and Biovail would be characterized as a horizontal merger. This is because both Valeant and Biovail are in the same industry of pharmaceuticals, serving customers the same way. The merger eliminated a competitor, which increases market power. The reverse merger allowed Biovail to acquire Valeant. At the time of the merger, Valeant’s new business strategy focused on shifting investment from Research & Development to acquiring small in-line undervalued products and companies.
Pro forma financial information is generally used to illustrate the effects of transactions such as business combination, and change in capitalization. There are countless reasons on why companies use pro forma statement in their business, the most significant is the planning and control received when using pro forma. The process of using pro forma statements are less time consuming, they help businesses evaluate and make a better distinction between business plans (Scarborough, Wilson, & Zimmerer, 2009, p. 196). Pro forma statements are an excellent outlet for resources that will help a business forecast expected earnings should the company chose to merge with another company or even if the company wanted to sell off part of it operations (Scarborough, Wilson, & Zimmerer, 2009, p. 196). The pro forma statements are commonly used when applying for a business loan.
Despite the popular mis perception that business success or failure often occurs suddenly, Collins asserts that it more typically occurs over the course of years, and that both only transpire after sufficient positive or negative momentum has been accrued. Collins describes the advantageous business cycle that, in some cases, can foster the transition from good to great as "the flywheel effect." By making decisions and taking actions that reinforce and affirm the company’s "hedgehog" competencies, executives initiate positive momentum. This, in turn, results in the accumulation of tangible positive outcomes, which serve to boost and earn the investment and loyalty of the staff. This sense of “new life” of the team serves to further build momentum.
The primary users are the 3 current owners including yourself who take an active role in managing the company. You would like the financial statements to be presented in such a manner as to indicate strong financial success and growth. You have plans to expand and possibly go public and having strong financial statements will enable you to attract the right investors and resources needed to make this happen. The more money the company makes the more you will benefit financially as the owners. It is important to remember that financial statements must be presented fairly and in accordance with accounting principles as it is evident here that there is a bias towards presenting statements in a financially strong way.
Novartis, a large multinational pharmaceutical company, recently diversified by buying Alcon, in a £24.8 deal. Alcon is a producer of eye care products such as contact lenses. Google has diversified by investing £124 m in a wind power business. To what extent is diversification the best strategy to achieve profitable growth? Justify your answer with reference to Novartis, Google and/or other organisations that you know (40 marks) Diversification can be defined as the practice under which a firm enters an industry or market different from its core business.
Running head: FINAL STRATEGIC PLAN Final Strategic Plan University of Phoenix Samantha Huggins Final Strategic Plan In the business environment, there are different ways to become successful. In order to be successful, a potential business owner must achieve the goals of having steady strategic planning and strategic management, to exist in its market to establish high profits. These goals are the foundation that makes up a good business in the business environment, and are known to be important. In addition, strategic planning is accommodating by implementing the company’s mission statements, visions statements, value statements, SWOTT analysis, balanced scorecard, and a communication plan, that are all beneficial to determine the future of the business about to prosper. As a result,
Venture Capital is the money provided to new starting businesses that have a great chance of getting a return to the investor for their money. The investor usually gets a say in how the company is run. This capital is for companies that have just started and don’t have enough time or income to show a bank or traditional lenders the history needed to secure a loan or to offer stock in the company.