ASSIGN#2-entrepreneur and small business-"MGT402"

MGT402 ASSIGNMENT

Saudi Electronic University

College of Administrative and Financial Sciences

E-commerce Department

Student Name: RAGHAD ALOTAIBI	Student ID: 150055209
Course Title: MGT	Course Code: 402
Academic Year/ Semester:	CRN: 10684
Instructor Name: ZIAD ALHMED
Student Grade:	Grade Level: 8

Write brief notes on the following objectives:

1. Owners

The business would be a sole proprietorship owned by Mark Twain as the CEO

Business Name: Ermine Auditing and Consulting Firm

Address:

Mark Twain

Ermine Auditing and Consulting Firm

555 River Rd, Ste 22

Joplin MO 64800-1111

USA

E‐Mail: ermine @gmail.com

General Business Description 

Ermine is an auditing and consulting firm that would take of a sole proprietorship. It would be formed as a sole proprietorship owned and operated by Mark Twain. Although the firm has specific objectives, its main objective is to provide its clients with reliable auditing and consulting services. The target customers of Ermine firms are small and medium businesses in all sectors of the economy. It would also be providing consulting services to individuals wishing to invest in specific industries. Although Ermine is an auditing firm, it would also help business organizations with financial advice and business strategies. It would provide business organizations with advice on how to make their internal controls strong and effective. This is because businesses also need to establish strong internal controls to prevent any potential attempts to manipulate organizational data. This would help most businesses prevent fraudulent activities. Through business referrals, the firm would facilitate in improving the quality services and responsiveness of business organizations to the new clients (Segal, 2019). It will also provide businesses with a pool of professionals from different industries through business networking. It would provide business organizations and individuals with specialized services such as investigations of business defrauders (Segal, 2019). It would also help business start-ups to analyze the potential markets and make the best decisions on the industries to invest in. However, the firm would use several strategies to gain a competitive advantage in its new industrial ventures. It would ensure that it has invested in more front-office services to make its services fast and reliable. The second strategy would involve investing highly in current technology. It would ensure that it has online services to help its clients with financial advice without having to visit their offices. The firm would devote enough financial resources to ensure that its technology is up-to-date and the systems are always updated to the current software. This would be meant to improve its efficiency which in turn improves the firm’s productivity and quality of services. 

Mission Statement:

The firm has a simple and straightforward mission which comprises the two important parts; purpose and vision. 

Purpose: Ermine AC firm provides complete, high quality, and reliable services to both individuals and business organizations. 

Vision:  By providing innovative services, Ermine AC aims at giving a solution to the problems and results. 

Company goals and objectives

The goals of Ermine firm include;

· The firm aims at providing business organizations with sufficient knowledge of financial resource management. 

· To provide businesses and individuals such as lawyers with professional advice on business auditing.

· To help business organizations expand at a higher rate by providing them with the best marketing strategies and investment advice. 

· It would provide businesses with the best framework for developing unique marketing philosophies. 

Business Philosophy

Ermine, the developer of new business leads. 

The most important thing Important to Ermine Firm

Several factors are very important to the success of the Ermine firm. The firm should ensure that it has a good relationship with its clients. This means that it has to develop loyalty and respect for its existing clients and potential clients. Good marketing and networking strategy are also very important to Ermine. This is because it would help the firm to establish a good relationship with other professionals. As a result, the firm’s reputation would grow at a faster rate (Segal, 2019). The firm should also be very open to its clients to ensure there is improved communication between the two. This would fasten the process of knowledge sharing and problem solutions in businesses. 

Target population

The firm’s target population is professional individuals such as lawyers, small-sized, and medium-sized business organizations. This is because the three groups need to understand business information before taking any business action. Professionals would need the firm’s advice on investment decisions (Moraitis, 2018). Individuals like lawyers need the information advice from the firm to advice their clients on the legal grounds for their investments 

Description of the firm’s Industry

Auditing and consulting are some of the most competitive business industries that require highly skilled finance professionals. According to most of the market researches in this industry, there is no possible increase in accounting and auditing professionals in the next 3 years (Segal, 2019). Because of these long term-prediction, Ermine firm will work hard to establish strong managerial functions. This would increase professionalism in its operations which would increase its chances to realize its vision. The core competencies and strengths of the Ermine firm include its ability to prepare special audits and financial planning for other businesses. One of the factors that would lead to the success of the Ermine firm includes its excellence in fulfilling promises and faster responsiveness to its clients. This would build its image especially due to the quality of reporting information. These would also form the major competitive advantages for the firm in its operating industry. My financial and accounting skills would be highly needed in the Ermine firm. The firm’s financial planning and marking strategies would be catered form by incorporating these skills into the firm. The legal form of the firm’s ownership is a sole proprietorship. I have chosen this form of ownership because it has no legal formalities (Segal, 2019). The owner of a sole proprietorship is responsible for the overall decision-making process for the firm. This helps the firm to carry out its business operations at a faster rate. 

Products and Services

The firm shall be involved in the provision of financial, risk management, and auditing services. The main task of the firm’s auditor is to review the procedures used in the cash management of the client’s businesses (Moraitis, 2018). This is a very technical concept in the auditing firm because it helps the auditor to form his final opinion on the cash management for his client’s business. The firm would also provide oversight services with the capital reconstructions of other businesses. As a result, it would help in upgrading the internal controls of the client’s businesses. This would improve the quality of service provision by the firm which gives it a competitive advantage in its operating industry. 

References

Moraitis, K. (2018). Entrepreneurship Path – Setting Up of a New Audit and Finance Firm: Business Plan, Market Driver, Capital Rising and Ethics. SSRN Electronic Journal. doi:10.2139/ssrn.3202251

Segal, T. (2019). Setting up a new business – evidence from a business administration faculty. Proceedings Of The International Conference On Business Excellence, 13(1), 1248-1260. doi: 10.2478/picbe-2019-0110