Background Allan and Dorraine have been happily married for just over ten (10) years. They met twelve (12) years ago at a textile factory in Westmoreland, where they both started work after leaving school. The textile factory was the biggest employer in the area. During these years they saved hard and finally bought their dream house-a four- bedroom detached traditional bungalow. The house needed upgrading, so the couple managed to get it at a bargain price. They put down a good deposit and took a mortgage for $9,000,000. They were looking forward to renovating the house over time The present situation The textile trade was the main industry in the Western region. In the past few years, however, factors such as high prices for cotton and declining orders from Japan and America have led to short-time working and some redundancies within the industry. Last year Allan and Dorraine were both made redundant at the same time. Faced with the prospect of moving away to find work or being unemployed, they decided they would start up their own business. They would run a Bed and Breakfast guesthouse. The western region is a popular tourist area and the couple lived in a very beautiful spot. It was also on the main route for travellers to this side of the region. They decided to use their redundancy money to upgrade the accommodation immediately to the required standard Allan and Dorraine know nothing about running a business. They are hoping to find some useful information on running a Bed and Breakfast business and whether there are any government grants available to help them get started. Dorraine arranged a meeting with the bank manager to have a talk about their new business. They would need a new business account and help in preparing a business plan. 1. Suggest the most suitable type of business organisation for Allan and Dorraine to set up. 2. Identify a possible external stakeholder in their business. State what interest that stakeholder would have 3. Describe TWO (2) useful sources of information that would help Allan and Dorraine find out if their venture would be successful.
Background Allan and Dorraine have been happily married for just over ten (10) years. They met twelve (12) years ago at a textile factory in Westmoreland, where they both started work after leaving school. The textile factory was the biggest employer in the area. During these years they saved hard and finally bought their dream house-a four- bedroom detached traditional bungalow. The house needed upgrading, so the couple managed to get it at a bargain price. They put down a good deposit and took a mortgage for $9,000,000. They were looking forward to renovating the house over time The present situation The textile trade was the main industry in the Western region. In the past few years, however, factors such as high prices for cotton and declining orders from Japan and America have led to short-time working and some redundancies within the industry. Last year Allan and Dorraine were both made redundant at the same time. Faced with the prospect of moving away to find work or being unemployed, they decided they would start up their own business. They would run a Bed and Breakfast guesthouse. The western region is a popular tourist area and the couple lived in a very beautiful spot. It was also on the main route for travellers to this side of the region. They decided to use their redundancy money to upgrade the accommodation immediately to the required standard Allan and Dorraine know nothing about running a business. They are hoping to find some useful information on running a Bed and Breakfast business and whether there are any government grants available to help them get started. Dorraine arranged a meeting with the bank manager to have a talk about their new business. They would need a new business account and help in preparing a business plan. 1. Suggest the most suitable type of business organisation for Allan and Dorraine to set up. 2. Identify a possible external stakeholder in their business. State what interest that stakeholder would have 3. Describe TWO (2) useful sources of information that would help Allan and Dorraine find out if their venture would be successful.
Management, Loose-Leaf Version
13th Edition
ISBN:9781305969308
Author:Richard L. Daft
Publisher:Richard L. Daft
Chapter6: Managing Start-Ups And New Ventures
Section: Chapter Questions
Problem 3CFCA
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Question
Transcribed Image Text:Background
Allan and Dorraine have been happily married for just over ten (10) years. They met
twelve (12) years ago at a textile factory in Westmoreland, where they both started
work after leaving school. The textile factory was the biggest employer in the area.
During these years they saved hard and finally bought their dream house-a four-
bedroom detached traditional bungalow. The house needed upgrading, so the couple
managed to get it at a bargain price. They put down a good deposit and took a
mortgage for $9,000,000. They were looking forward to renovating the house over
time:
The present situation
The textile trade was the main industry in the Western region. In the past few years,
however, factors such as high prices for cotton and declining orders from Japan and
America have led to short-time working and some redundancies within the industry.
Last year Allan and Dorraine were both made redundant at the same time. Faced with
the prospect of moving away to find work or being unemployed, they decided they
would start up their own business. They would run a Bed and Breakfast guesthouse.
The western region is a popular tourist area and the couple lived in a very beautiful
spot. It was also on the main route for travellers to this side of the region. They
decided to use their redundancy money to upgrade the accommodation immediately to
the required standard
Allan and Dorraine know nothing about running a business. They are hoping to find
some useful information on running a Bed and Breakfast business and whether there are
any government grants available to help them get started. Dorraine arranged a meeting
with the bank manager to have a talk about their new business. They would need a new
business account and help in preparing a business plan.
The couple are aware of the importance of information technology to help them run
their business. They have set aside $150,000 for a new computer, any software they
might need and a good quality printer. They have decided what tasks each of them will
be responsible for. Dorraine will look after the accounts and negotiate any grants that
may be available for the business. Allan has agreed to look after bookings, customer
correspondence and promotional material, including design of leaflets and business
cards for the business. They have read a lot about advertising businesses on the
internet and think this would offer a lot of opportunity for their Bed and Breakfast
business.
Required:
1. Suggest the most suitable type of business organisation for Allan and Dorraine to set up.
2. Identify a possible external stakeholder in their business. State what interest that stakeholder
would have
3. Describe TWO (2) useful sources of information that would help Allan and Dorraine find out if
their venture would be successful.
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