Main Objective Is Profit Maximization Commerce Essay

Main Objective Is Profit Maximization Commerce EssayIn this grant I am looking at profitable organizations which defy main accusative is profit maximization. I am going to look at this in the context of starting a sm totally firm. I bequeathing be looking at the problems and sine qua nons when aiming to begin a line of descent either in manufacturing or in the tertiary sector. I will afterlife explain that why plan is important for baseness? Also I will skillful just ab divulge types of clientelees, sectors, of stage commercees and I will talk about some businesses. marketplace analyzing legation and vision program line also atomic number 18 very important for a succeeder business.IntroductionIn this assignment I am going to write about the business plan. What argon the important factors for a new business? I will write about the requirement of the business, types of the business, business sector and and then I will explain each business sector advantages and disa dvantages.2. Business translationBusiness is an economic or pecuniary activity, which is associated with permanent and regular outpution and sharing of goods and work for fulfilling human ask .Stephenson defines business as, The regular production or purchase and sale of goods undertaken with an objective of earning profit and acquiring wealth through the satisfaction of human wants. According to Dicksee, Business refers to a form of activity conducted with an objective of earning profits for the benefit of those on whose behalf the activity is conducted. (KALYAN CITY LIFE, 2011)A business plan is the arrangement for the business, clarifying that what it exists, for and what products, services it delivers to society. Rebecca Jones wrote in Information Outlook. A business plan is a roadmap for the organization, showing the destination it seeks, the path it will follow to get there, and the supplies and wherewithal required to complete the journey. almost every succeed company n eeds a business plan. Due to Lack or upland of proper planning is one of the most frequently cited reasons for business failures. So business plans stabilizing for companies identify their goals and objectives also provide them with channels and strategies to reach those goals. (Reference for Business, 2012) there are main three types of business one primary, secondary and Tertiary. Extractive (primary) Manufacturing (secondary) Services (tertiary3. Deferent Types of Businesses SectorsWe submit three type of businesses sectors one is public sector 2nd is private sector and 3rd is voluntary sector/ non profitable but I will discuss about private sector.3.1 Public SectorPublic sector can be defined in the different look, Public sector in have and stretch out by the Government for the mint. Government collect money by taxes and this money are used to finance most of the public sector. substitution or local government or public corporations are Involves. The government makes all d ecisions in this sector Shareholders have LIMITED LIABILITY. A board of directors offer the business and must have the words public limited with the company name or letters PLC. Accounts must be published.Main aims of public are to use recourses well for the benefit of the community. any(prenominal) grammatical case is royal mail in the UK and BBC TV channel.3.2 Private SectorA company owned by at least 2 shareholders and shares are sold privately. Profits are shared with shareholders dividends and Shareholders have LIMITED LIABILITY. Private sector has a board of directors to run the business. Name must be end with the word Limited or letters Ltd. Private sector business are owned and run by private individual.3.2.0 Types of Private SectorWe have many types of private business but the most common are bellow.3.2.1Sole TraderBusiness of this sector has owned and controlled by one person Money is usually provided by the owner. This guesss that legally the owner and the business ar e the homogeneous. Sole trader has unlimited liability. There is not more than legal paper work. keep for business will be from owner side, banks, credit card, and bank overdraft. Power and right will be on one hand, profit will on one share low VAT and tax.3.2.2 PartnershipWhen 2 or more than 2 people running a business which aims to make a profit is called partnership. The maximum number of partners is usually 20. Money is provided by partners. They are easy to set up but may have a Deed of Partnership and will share their profit and loss according to their agreement. They are unincorporated. Easy to start, funding is same like doctor trader also from partners.3.2.3 prerogativeIt is an agreement between a franchisor and a franchisee and allows the use of a business name to franchise. Franchisee must provide the money to start their business and franchisor provides materials, training and advice. Franchisee must make regular payments to the franchisor. Main aims of private sec tor are profit, growth, increased merchandise share and maximize sales.4. Legal requirementFor a new business you should know the legal requirement of the business and must register the company companies act 2006 in the UK. For example the business should be legal and register with company registrar. If the business is partnership then must submit partners all agreement paper with registrar without enrollment of the company no one can start the business in the UK.4. Legal requirementFor a new business you should know the legal requirement of the business and must register the company companies act 2006 in the UK. For example the business should be legal and register with company registrar. If the business is partnership then must submit partners all agreement paper with registrar without registration of the company no one can start the business in the UK.5. Funding OptionsFor business funding is the most important fact without money no one can start business and fund will never ha ve enough, so shortage can be serious at firs stage. Depending on the structure of Business, business will have different sources of funding or finance.Some resources are Loans from Banks and Financial Institutions Shareholders Some banks provide our draft Some time government provide loans for some business such in Pakistan for agriculture sales agreement shares PartnersSome other resources are shareholders and partners, depending on the organization legal structure of firm.6. Compliances7. Protecting your Intellectual PropertyIPR main benefits are to save the company products and services from your Oppositions or competitors and prevent unauthorized users and action. If you have branded a only one of its kind product then you must patent it. This means registering the make goods and its design to put a stop to others from doubling it. If dont, then the competition can just steal the product design from you, and will cost you a lot.Example of a patent shielding a firm from any mo re business copying its product was when apple clime that Samsung copy their product and the court still on process for more detail ( http// word.cnet.com ). Patenting is an expensive or valuable, though, and it must be done correctly. So IPR is very important for a company to register other hand it will cost a lot to the company.7.1 TrademarkA stylemark is a brand name. A trademark includes any name, word, sign, device, or any combination, used or intended to be used to identify the organization such as MacDonald, HP computers, coca cola.http//www.bit fair play.com7.2 copyrightsCopyright is the ownership of the of intellectual property (IP) The select right to make copies, and otherwise exploit a literary, musical, and artistic work, even audio, printed, video. It should register under copyright law act January 1, 1978, is protected for the duration of the author or inventor and for 50 years period of after his or her death. For example Adam Smith is the right person for his boo k Wealth of Nation no one can write this book or print it by other name.7.3 Industrial buildsManufacturing Design is concerned with all the human being aspects of machine-made goods and their bond to people and the environment. The designer is responsible for these products and their impact on society and nature. Such as apple I pone 5,7.4 PatentsThe protection a person or a company a new product or way of doing something by fillet anyone else from copying or using it for a particular period of time. For example any Madison formula.8. ContractsAn agreement between two or more parties to turn away the future problem and it is written and enforceable by law. For new business you have to sign many corrects like with Employment, Shareholders, Agency, Vendors, with other business, banks and financial institutes. Every things should be clear and must be Confidential also it must include Term, Confidential information, representations and warranties, indemnity, limitation of liability, assignment protection of intellectual property.9. Insurance10. missionary work statementsMission statements are targeted at external and internal stakeholders its means that the statements must be suitable for a wide range of audients or readers. A mission statement is a idea or guiding hand, which provides a shared direction and focus for the firm internally so its mean that mission statement are meant to encourage and motivate everybody. The mission statement should Show the direction and aiming that the business to head in Give some sort of statement of success -what the business wants to do and achieve Classify the way in which the business is aiming to develop over a period of time Allow the business to use the mission statement for the growth of specific goals and objectives to reach their aims. these should be relevant for all levels of the organization Provide inspiration to employees to work towards achieving the goals and objects or vision set out by the statement. (mindt ools, 2012)11. Vision statementsWhile a mission statement shows the way on which a business wants to head now and is of immediate relevance to all stakeholders, a vision statement is a more common statement looking at where the business or organization wants to be in the future. A vision statement essentially outlines what a company wants to be in the future and it may well be related to some sort of future outcome. (mindtools, 2012)http//www.diffen.com/difference/Mission_Statement_vs_Vision_Statement12. Market analyzingMarket analyzing will assist to the business and some benefits are below Understand the market and give you a bug encounter Attract the customers and beat the competitors Market size Who is your customers and who is your competitors What customers needBest way to understand the market is market research. Market analyzing will help to understand the market and give you a big picture to you organization by analyzing the market will understand the behavior of end users and will beat the competitors because you know that what customers wants. Market research will give lots of information about the competitors. Try to make the products different from your competitors and this different will stand the business out from bunch and for competition there are three main things are very important1. Quality issues2. Customer services3. High price12.1 Segmentation CustomersIts mean grouping of customers by their age, gander, stander, location by segmentation will easily target the customers so we can segment it by1. Demographic ( how old they are)2. Socio-Economical (who much they want to spend )3. Geographic ( where the live )13 PEST Analysis14. Planning a new businessFor this section I have a profitable business plan and I will recommend a Dominos franchise which is much better than other businesses. If we start a sole trade business or partnership business it is very difficult for as to competition with big business. So there is a big determine to fail ure of the business. We will run business under the banner of an already established business I mean Dominos Pizza. We also take advantages of their brand, ideas, operate techniques and much more which already tested and tried. Brand name we can use Dominos pizza is well know brand in the market and have much demand in the all over the globe.14.1 Capital investmentFor Dominos pizza franchise total investment is 290000 + (VAT approx 49000. VAT will claim back/Constriction cost (shop fitting and project management fee) approx 130000Equipment cost approx 80000Legal/ Planning / Architects approx 17000Opening cost approx 25000Fees (training fees approx 45000Total approx 290000 + VATto a greater extent detail available in appendix14.2 FundingIn assignment question the say that dont worry about money but any way in case we face to the shortage of funding we can use alternative way like loan from banks, bank overdraft, credit card, and loan from financial institute.14.3 HR and Training In one franchise approximately 25 jobs we can create so we will advertise it in local news paper and we will select right candidate for training. After the selection we have to do contract with our employees for minimum 2 years.ConclusionFrom above reciprocation it is clearer that planning is very fore a business. Without planning no one can achieve their goals effectively. Also invest the capital on the right business because everyone wants to invest their money for profit and other important thing is we should do business on legal way. If you want to be a success business man you have to create image in the society like Apple, MacDonald and, Dominos. Policies and procedure should clear to employees and customer and Health and safety environment provide to employees and customer. Franchise is more profitable the other business because we can use their logo, trademark also it is well known in the market,.