I have gathered the information,. This is the power point presentation I mentioned to you. Sorry for the short time frame. I hope you can get this back to me by 2am

Project 4: Structuring a New Business Venture

Step 1: Research the Steps to Create and Manage a Small Business

You decided to take a week of vacation time from Colossal to devote yourself entirely to developing your new business venture. The new business is a solar energy–fueled charger that charges a variety of products on the go, including cell phones and other electronic devices. 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.

The Name will be: Solar Dragon

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.

In order to complete this task, you realize that you must do some additional research to address the legal and strategic implications of your decisions if your business is to get off the ground.

Conference Call for New Venture with Gary and Roza

Four icons: gears, light bulb, smartphone, two people

You: Gary and Roza, it’s great to be working with you. I think we make a great team based on our skill sets. Let me tell you more about the new product and how it will be invaluable to the solar energy industry. It’s a solar energy–fueled charger that charges a variety of products on the go, including cell phones and other electronic devices. We need to come up with a name for it.

I showed you the prototype last month. It’s just about ready to roll, but now I just need some time to work the kinks out. I project that it will take approximately two years to develop this prototype for large-scale distribution, but once the product is on the market, there is excellent growth potential. Think of how much money people could save on electricity by using this product to recharge their cell phones and other electronics.

However, you know that my skills are in engineering, and you probably know that finance, marketing, and politics are not my strong suits. Also, I have to admit that I’m not very interested in the day-to-day business operations of the company. I'd rather spend most of my time inventing new products and would like to focus on research and development.

Roza: I think this is a great product and loved seeing the prototype in action last month, but we're going to need additional investors and expertise to get this business off the ground. We should develop a business plan that will be attractive to potential investors and partners. They're going to have concerns about joining a new startup. We should work to address these from the start. My background in marketing could help with this, and I also have some experience in new business formation. First, we need to choose the right legal form of business. We also need to develop our mission statement and structure our organization to serve that mission. What do you think are the main priorities of our new enterprise?

You: Last time we discussed this we identified innovation, sustainability, and timely customer service as our top priorities. I think these are spot on.

Gary: We need to think about how we will bring in the additional skills we need to be successful. I have decades of experience managing sales in cutting-edge technology companies. Roza has a background in marketing, and you are our research and development idea person. We definitely will need someone with finance skills, and we’ll need to hire staff to handle product development, production, finance, accounting, marketing, sales, and human resources. We should organize our business with this in mind. My colleague, Katie Bourne, has expressed interest in working with us, but she would need an upper five-figure salary and benefits to entice her to leave her current position. She does not want to be an owner given her desire for work-life balance, but she would consider joining us as an employee.

We also need a visionary CEO. Ideally, a person with connections and experience in the solar industry. Since our last conversation, I spoke to Elijah Hecal, a forward-thinking figure in the solar energy field, who is known for being a rainmaker. Hecal has expressed some interest, but it will take significant incentives to get him on board. He will want to see the potential to make a lot of money. I know some companies use stock options to retain executives; perhaps we should look into that possibility.

We also need to think about raising some start-up capital. I have about $100,000 I can invest in this company. How about you guys?

Roza: Unfortunately, at this time, I don’t have much money to invest. But I do have some connections with a wealthy potential investor, Carmen Palombo. I’ve already talked with her, and she thinks our product has a lot of promise. Carmen would like to play an active role in running the business and could invest approximately $500,000 up front. However, she would want to join the three of us as founders of the company. She was very firm about requiring an ownership stake as well as some protection for her own very considerable personal assets. I’ve told Carmen about our plan to start locally, go national within a few years, and then international. She seems very interested. I suggest we plan a dinner with the four of us in the near future. I’ll check for available dates with Carmen and circle back to you.

Gary: Great idea, Roza. Let’s definitely plan that dinner. We’ve talked about this before, and none of us mind sharing ownership if Carmen is willing to put that kind of money into this business. Even if Carmen does join us, I’m still concerned that we may not have the right level of capital and expertise to ensure our success, especially with the growth we anticipate. We should look into getting some additional advisors or put together a group of people to help us with large-scale management. We should find a way of getting some advisors regularly involved in the company.

You: This is great! I’m really excited to be working with you both and I’m looking forward to meeting Carmen. I agree with everything that’s been said today and will take a stab at developing a presentation for Carmen and other investors. Let’s talk again soon.

Gary: Bye.

Rosa: Have a great one!

Creating and Managing a New Business

There are many things to consider when creating and managing a new business. Planning a business involves many considerations, including:

· choosing a business entity type

· registering with required government agencies

· acquiring licenses and permits

· opening bank and credit accounts

· adopting management agreements

· adopting a business plan and organizational structure

· adopting a marketing plan

· developing a mission statement

· developing a code of conduct or ethics code

· joining relevant professional organizations

· choosing a stakeholder set of employees, customers, suppliers, advisors, and investors

All of these actions should be researched and achieved in the 12 months or so before starting a new business.

One common reason small businesses fail is because of inadequate preparation and planning before beginning a new business. The reality of business practice is that no one can predict every potential issue or dilemma. Nevertheless, the resolution of unknown issues will be expedited and a process will be in place to address them through instruments such as management agreements, mission statements, business plans, and codes of conduct.

Moving a business from local to national or even international involves many additional considerations of management, structure, tax, law, culture, and strategy. Preparing in advance for such an expansion is a key element of successfully expanding to other markets. Those who treat international expansion as an afterthought frequently face a more difficult time when trying to transition to other markets. Moreover, many companies have blundered by not considering the cultural norms of targeted markets when attempting to expand beyond local distribution.

Mission Statement

In the contemporary economic environment, businesses must often take on roles beyond those of mere profit centers. A well-crafted mission statement assists in defining the role of a company by succinctly outlining its core purpose and values. All other organizational documents, such as codes of conduct, should be created to support the mission statement of the organization. Once crafted, a mission statement should play a role in employee training, advertising, and management. It is the core principle that states who a business is and what it does.

Step 2: Determine the Legal Structure of Your Business: Gather and Analyze Information

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.

Legal Forms of Business

Business entities are an integral part of business practice and economic productivity. An effective business practitioner must understand the characteristics of the major types of business entities, as these attributes can dramatically affect the nature of the business's relationships. Before beginning to conduct business, one should always weigh the benefits and burdens of the different types of business entities and make a conscious decision about which type of entity to form to conduct one's business.

Depending on the type of business, the people involved, and the goals of the business, some entities may be more appropriate than others for a particular business. To make the decision about the appropriate type of entity to form, one should consider factors including the following:

· creation and maintenance—the effort associated with forming and maintaining the entity

· continuity—the continuity or stability of the organization upon given occurrences

· ownership and control—the ownership rights and control of those involved with the business

· personal liability—the potential for personal liability of those involved with the business

· compensation—the compensation and division of profits among business owners

· taxation—the taxation of the organization's earnings and its distributions of profits to the owners

Weighing these and related factors, which vary in consequence depending on the entity, informs the choice of the type of business entity best suited to one's business. Examination of these characteristics will make obvious the effect of these attributes on stakeholders of the business entity. The decision of which entity is right for a particular business impacts many facets of a business's operation, including accounting, management, and finance.

limited partnership

general partnership

limited liability partnership

S corporation

Step 3: Determine Your Organization's Structure: Gather and Analyze Information

After selecting the most appropriate legal form of business, you’re messaged by one of your colleagues in the collaboration, Roza Worrell:

INBOX (1 NEW EMAIL)

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.

Sincerely,

Roza

 

Organization Structure and Design

The structure of an organization plays a pivotal role in how everyday tasks are handled, in how resources are allocated, in employee supervision and reporting, and in coordination amongst employees. It impacts employee behavior, demeanor, and psyche in ways that are still being studied by theorists today. Organizational structure may play a role in employee motivation and even productivity.

A primary factor in creating and managing a new business involves choosing the best organizational structure for it. Some types of business are better suited for a clear hierarchical structure, while others are more apt to work within a flatter organizational structure, with fewer or even no levels of authority. From time to time, a business may reorganize, as online shoe retailer Zappos did when moving from a hierarchy to a flatter "holacracy." There were reportedly mixed results spurring from this major shift in business structure (Reingold, 2016).

As the Zappos case and others reveal, business structure plays an integral role in organizational success. Thus, one should clearly define the initial organizational structure at the outset of starting a new business and monitor it through the business life cycle, tweaking it and shifting it as necessary.

References

Reingold, J. (2016, March 4). How a Radical Shift Left Zappos Reeling. Retrieved February 07, 2017, from http://fortune.com/zappos-tony-hsieh-holacracy/

Outsourcing the HR Function

Outsourcing is a technique used by some companies in which they transfer or contract out certain work to external companies, typically in an effort to save costs. Outsourcing the human resources (HR) function involves the transfer of the tasks usually performed internally by human resources employees to external companies. Depending on the structure of the organization, the human resources office often handles such matters as managing employee compensation and benefits, recruiting new employees, ensuring compliance with employee rights and safety laws, overseeing employee relations, and often the provision of certain employee training.

There are advantages and disadvantages associated with outsourcing the HR function. In addition to the potential cost savings, outsourcing the HR function provides companies with a means of garnering expertise in the growingly complex areas of employee rights and employment compliance without hiring additional staff. Outsourcing the HR function may also give companies, whether large or small, a layer of protection from some lawsuits. By outsourcing, a company can more readily focus on its primary purpose and avoid potential distractions.

Outsourcing the HR function, like any outsourcing, creates distance between the employees of a company and the outside contractors. This distance may lead to a culture mismatch between the company and its contractor, delays in processing, and reliance on another company to manage a critical function (i.e., loss of control). The best HR managers align their actions with the organization's strategic goals. HR managers typically have organizational and financial knowledge that comes from being a part of the company. Can the outside contractor provide the necessary alignment with the company's strategic interests? This outside contractor may or may not be as dedicated to making process improvements as your own company is, and so, particularly when in a long-term contract, may not expend resources to improve the quality of service.

For multinational organizations, there are special challenges. Best HR practices may not transfer effectively between countries due to cultural and institutional differences. Can the outside contractor adapt to local practices and customs while standardizing the best HR practices across country borders?

These, and other, advantages and disadvantages of outsourcing the HR function should be weighed carefully and discussed prior to action.

Risks Associated With Outsourcing

Outsourcing can have significant benefits but is not without risk. Some risks, such as potentially higher offshoring costs due to the eroding value of the US dollar, can be anticipated and addressed through contracts by employing financial hedging strategies. Others, however, are harder to anticipate or deal with.

As a general principle, functions that have the potential to interrupt the flow of product or service between a company and its customers are the riskiest to outsource. For example, delegating control of the distribution process to an online retailer can result in customers not receiving goods promptly; outsourcing call-center responsibilities can result in customers being dissatisfied with the product or service and, thus, in higher product returns, lower repurchases, or complaints that could endanger the company’s reputation.

The second-riskiest type of activity to outsource is one that affects the relationship between a company and its employees. Outsourcing the human resources function, for example, can affect the quality of employee hiring; outsourcing payroll and benefits processing can result in information breaches that generate identity theft issues and resultant legal issues; and outsourcing software design can generate a decline in organizational innovation. By contrast, support functions such as accounts payable and maintenance are less risky to outsource because they have few direct links to customers or internal organizational processes.

More formally, risks associated with outsourcing typically fall into four general categories:

· loss of control

· loss of innovation

· loss of organizational trust

· higher-than-expected transaction costs

Loss of Control 

Managers often complain about loss of control over their own process technologies and quality standards when specific processes or services are outsourced. The consequences can be severe. When tasks previously performed by company personnel are given to outsiders, over whom the firm has little or no control, quality may suffer, production schedules may be disrupted, or contractual disagreements may develop. If outsourcing contracts inappropriately or incorrectly detail work specifications, outsourcers may be tempted to behave opportunistically—for example, by using subcontractors or by charging unforeseen or unwarranted price increases to exploit the company’s dependency. Control issues can also be exacerbated by geographic distance, particularly when the vendor is offshore. Monitoring performance and productivity can be challenging, and coordination and communication maybe difficult with offshore vendors. The inability to engage in face-to-face discussions, brainstorm, or explore nuances of obstacles could cripple a project’s flow. Distance, too, can increase the likelihood of outages disabling the communication infrastructure between the vendor and the outsourcing firm. Depending on where the outsourced work is performed, there can be critical cultural or language-related differences between the outsourcing company and the vendor. Such differences can have important customer implications. For example, if customer call centers are outsourced, the manner in which an agent answers, interprets, and reacts to customer telephone calls (especially complaints) may be affected by local culture and language.

Loss of Innovation

Companies pursuing innovation strategies recognize the need to recruit and hire highly qualified individuals, provide them with a long-term focus and minimal control, and appraise their performance for positive long-run impact. When certain support services—such as IT, software development, or materials management—are outsourced, innovation may be impaired. Moreover, when external providers are hired for the purposes of cutting costs, gaining labor pool flexibility, or adjusting to market fluctuations, long-standing cooperative work patterns are interrupted, which may adversely affect the company’s corporate culture.

Loss of Organizational Trust

For many firms, a significant nonquantifiable risk occurs because outsourcing, especially of services, can be perceived as a breach in the employer-employee relationship. Employees may wonder which group or what function will be the next to be outsourced. Workers displaced into an outsourced organization often feel conflicted as to who their real boss is: the new external service contractor or the client company by which they were previously employed?

Higher-Than-Expected Transaction Costs 

Some outsourcing costs and benefits are easily identified and quantified because they are captured by the accounting system. Other costs and benefits are decision relevant but not part of the accounting system. Such factors cannot be ignored simply because they are difficult to obtain or because they require the use of estimates. One of the most important and least understood considerations in the make-or-buy decision is the cost of outsourcing risk.

There are many other factors to consider in selecting the right level of participation in the value chain and the location for key value-added activities. Factor conditions, the presence of supporting industrial activity, the nature and location of the demand for the product, and industry rivalry should all be considered. In addition, such issues as tax consequences, the ability to repatriate profits, currency and political risk, the ability to manage and coordinate in different locations, and synergies with other elements of the company’s overall strategy should be factored in.

Step 4: Prepare Your Presentation

Using the information you gathered from your reading and research, you now are ready to prepare a narrated PowerPoint. Because you want to record yourself and critique your own work, it should follow the form of asynchronous presentations . After doing some research, you find that the best presentations are organized by using the following guidelines:

· Tailor your presentation to suit the audience.

· Include a title slide, with your name on it, introducing the presentation.

· Include only the major bullet points for each issue on the presentation slides.

· Include no more than 15 slides (not counting title page or references list).

· Cover all the elements of your plan as outlined in Step 1.

· Use your narration to provide the supporting rationale for each major bullet point.

· Include a script of your narration in the Notes section of PowerPoint.

· Include a clear summary of your major conclusions and any recommendations on the conclusion slide.

· Include a reference page in APA format citing any sources you used to develop your presentation.

I’m going to narrate. I just need help with the notes/narrated information. ThanX

Asynchronous Presentations

An asynchronous presentation is a prerecorded presentation for a specific audience to whom you would ideally present in person or online in real time, but cannot for practical reasons. While Microsoft PowerPoint is considered the default presentation tool for presentations, you may consider using other presentation platforms or tools. Be sure the tool supports pre-recorded narration. Dedicate enough time to the narrated presentation to get the timing for transitions right, and ensure that the sound is clear and the narration at the right volume. See the Technical Help section below.

A good asynchronous presentation shares most of the same traits as a good live presentation. Your presentation should not be your academic paper cut into text-filled slides. Rather, consider how you might identify themes to discuss that are supported by pertinent facts from your paper. You are giving a talk to an audience, so your narrative should provide most of your ideas and argumentation. Be sure the themes either flow or transition appropriately from slide to slide. See Methods and Tips under Resources. Use images and data visualization (tables, charts, or graphs, for example) where possible. See Use of Multimedia under Resources.