A business aim is the goal a business wants to achieve. A business objective is a detailed picture of a step you plan to take in order to achieve a stated aim. Business objective can be defined as SMART objectives, there are - Specific, Attainable, Relevant, Time-related.
Maximize profits is the main aspire of an organization. Organization can obtain profit from sales income or directly from the selling products. If Luke's business plan was not organize successfully, it wills potentially affecting employees, suppliers and the local community. He needed to reinvest the profits, which leads to better products for their customers, better income and working environment for their workers or to help the local community. Luke also can use the profit to buy more products, improve technology or expand the property.
Other than that, providing effectively services also important. Luke is qualification in Information Technology, he able to provide internet knowledge on how to use the internet. The profit obtain by Luke can buy new software that contain latest technology to share knowledge with learner. Sponsorships and donations are important to help manage the business. It could be used to promote or expand the organization for better progress.
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Luke has many tactical objectives, such as building close relationship with customer, securing market shares, cutting cost and providing wide range of service. He has competing with his competitor. Luke can obtain his technology materials directly from manufacturer, which definitely will be cheaper. He also gets services from her family and friends, and then provides his services according to customer needs, thus having a variety of services.
His main objective is to teach people how to do online searches for information, how to buy products online and how to use other services available online. He will also teach people to create website and communicate through online. Besides that, Luke also can set a short term and long terms objective. He can give vision and mission to his company. It might give motivation to their subordinates, a professional management of business plan will enhance satisfaction of your company, improve image of industry in community and upgrade the inter-organizational efficiency.
There are numerousÂ form of business ownershipÂ defined in the legal systems from various countries. Each of the business formation has their own advantages, disadvantages, liabilities and responsibilities.
Although Luke Chan is a degree holder of Information Technology but he is be deficient in business knowledge, he require to obtain wider pool of business knowledge, find business partner and many aspects needs to consider to start up the business and run efficiently. In addition, he is facing financial problem to operate business organization.
The type of ownership that I would like to recommend for Luke Chan's new business is Partnership. Partnership has the capability to help him to solve all the aspects that he concerns. There were numerous characteristic is suitable for Luke to operate a business organization. A partnership occurs when two or more party combines together to share liabilities and profits of the business. Partnership is easy to manage and less legal requirement to establish.
As a rule, the distribution of profits and losses will be divided according to the management and agreement of the partnership of an officially legal written "partnership agreement" which is signed by all of the partners. Thus, the agreement is strictly between the partners it won't expose to public. Each partner has limited liabilities depending upon their contribution to the partnership and equal responsibility and authority to run the business. It also requires less legal requirements to form a partnership compare to public and private limited companies.
In addition, the ability to raise funds may be enhance if the number of partner increase, collaborators lead to the wider pool of knowledge, skills and effective brainstorm. Partnerships have complementary skills, which can be cost-effective as each partner specializes in certain aspects of their business. As examples - Luke has the capabilities to market their services and buy latest technology mechanism via Internet. Good technology users can help organization monitor those costs and know where to invest and where to cut back. Meanwhile, Eric has good organization of interpersonal skills and business knowledge, he can play in many roles in a business organization, socialize in community, well-manage financial, promote product and structure business plans and overall business activity.
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Unlike to Sole Proprietorship, Luke has to take responsibility to liability and risk; he also obtained limited income and skills. This may lead him to an edge for his business expansion. Besides that, the earnings of the partnership are not exposed to double taxation. All of the profits of the partnership are to be rewarded and taxed directly to individual partners. Luke also has the authority to withdrawn from the partnership if he holds the bigger share or immediately dissolves the partnership with mutual agreement.
Starting up in partnership is an outstanding decision for Luke in this case.
Nowadays, technology and business structure is rapidly updating and developing. In my opinion, there are many affect in business environment could potentially affect Luke's business plan. Business environment is a set of conditions that affects the functioning of organization. Business environment has two components, namely internal environment and external environment.
Controllable environment is the internal factors of business organization containing numerous characteristic in an organization such as management, manpower, machine, money and materials. These factors should always be manipulated to ensure a successful business.
One factor Luke should consider is his manpower. As his current condition, employing college student is her best option, since it is cheap and convenient. He needs to employ full-time workers to save time from training new workers and reducing expense. Experienced worker will also likely to be more efficient, as they will be familiar company's operation style. Luke will also be able to build close relationship with her workers, improving understanding and teamwork between them.
Another factor Luke should take note is money. Money is needed for everything and is important for business, as doing business is actually using money to earn money. Since his capital is very limited and gathering modal to expand his business is very difficult. Therefore, to overcome this problem, Luke must get a partner who can support her financially. With stable financial source, Luke can expand her business steadily without fear of insufficient funds.
Materials and equipments are important too. Luke's business requires technology such as computers and internet. Better functionality and quality of computer and internet speed helps to make his lesson more accurate and effective.
External environment are factors which are beyond control of business owners. These factors include political, economical, competitors, technological and market, which may provide opportunities or threat to business.
One of the factors that contribute to the success of Luke's business is the market factor. Competitors are the most hazardous affect that is in the external environment. Luke should be the most powerful competitor. He can improve their professional service, by giving free trial to attract more customer or client. Luke can promote their services through worldwide for senior citizen or children, offering variety of services and still takes account on customer's budgets. The presence of competitors may affect Luke's business by offering better promotion and drag away Luke's customers.
Technological factor also contribute to Luke to success. Modern technologies such as mobile phones help him communicate with his customer without the need for meeting in person. Computer allows Luke to store her customer's detail, retrieving and updating the data easily as well. Luke also can manage her accounts easier with accounting software.
These are all the forces in the business environment that would affect Luke's business. He would have to overcome these obstacles to gain success. Besides that, choosing a suitable location for business organisation is vital. Luke should set up his business that area of people need this services. This could avoid competitors and also gain high success rate on his business. Luke also should alert on any rules that may harm the organization such as taxation, trademark laws, privatisation and many more.