CREATING A NEW BUSINESS VENTURE
You decided to take a week of vacation time from Colossal to devote yourself entirely to developing your new business venture. You begin by going into your home office to work on the task at hand—the preparation of a narrated PowerPoint to practice your presentation to potential investors. The presentation will address all of the key issues related to the legal form and organizational structure of your business. Specifically, you will include the following in your narrated PowerPoint:
· A name for your business, a brief mission statement reflecting the primary goals of the business, and an explanation for why you chose this name and mission statement. You will explain how this mission statement is drafted so that it is clear, concise, and meaningful to your business’s stakeholders.
· An examination of the three most appropriate legal forms of business for your venture. Include a detailed examination of the advantages and disadvantages of these three forms and an evaluation of these six factors:
· creation and maintenance
· continuity
· ownership and control
· personal liability
· compensation and division of profits
· taxation
· A choice of the best legal form of business for your new company from the three you considered and a full explanation of your choice.
· A detailed diagram of your organization chart and a rationale explaining structural decisions reflected in your organization chart, including:
· the titles of the different individuals and why you chose those titles
· the tasks the different individuals and groups will have for contributing to the aims of the company
· the reporting structure (who will report to whom and why)
· a choice regarding outsourcing the human resources function, including a detailed analysis of the pros and cons of outsourcing the human resources function
· all other relevant factors (for example, will your business structure be functional, centralized, decentralized, etc.), including how your chosen structure will contribute to your long-term aims of going national and international, or how it will need to be modified to achieve these aims
After reviewing the above outline of your presentation, you recall the recent conference call with your potential business partners, Roza and Gary. You realize that you will need this information to make the best legal and organizational decisions for your business. You’re asked by one of your collaborators to examine some resources on creating and managing a new business and on drafting a mission statement
Now that you have read a broad overview of new business creation and management, you recognize that the next step in creating your new business is to decide on one of the many legal forms of business you will use to form your new company. You want to show the investors that you really know your stuff, so you decide to select three forms of business to analyze and you’ll explain in your presentation why the option you chose is the best for your new venture.
From: Roza Worrell
To: You
I’m glad you finalized your decisions on the legal form for the new business. Now we need to decide on the organization structure and design that would work best for our goals. We need to determine what departments the organization will need, who will report to whom, how many levels we will have in our organization's hierarchy, and how many individuals will report to each manager (span of control).
We really need a structure that will promote communication and coordination of efforts across the entire organization. We also need to consider whether or not we should be outsourcing the HR function.
After formulating your thoughts, you may also need to do some additional research on the web and in the library to enhance your knowledge for this presentation.
Thanks for all you’re doing to make this business a reality. Good luck in your final prep for the presentation.