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Introduction to Bussiness

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Autor:   •  January 4, 2017  •  Dissertation  •  1,583 Words (7 Pages)  •  33 Views

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Task 1

Introduction to business

Business ownership

 There are three types of business ownership these are:

  • Sole proprietorship
  • Partnership
  • Public limited Company

Public limited liability company: is a company that trades on the stock exchange. And can be bought and sold by any member of the public. Example are Tesco, M&S plc.

These companies (PLC) offers shares to public investors on a registered exchange.

Advantage of public limited company (PLC) are as follows

  • exchange Shares can be sold through stock. -
  • Ready to raise capital for development by selling extra shares
  • There are Limited liability for the shareholder
  • Ability to raise large amount of capital.
  • Liquidity
  • Longevity

Share can be sold through stock exchange -  a lot of companies go public they use the medium of stock exchange to advertised this shares equity to be sold through this channel.

Public Limited Company- can find it easier to borrow money from banks because, they are well trust to pay back any loans taken also by selling share to the public help to generate profit.

There is limited liability for the shareholders-   Ability to raise expansive sum 0f capital–- open constrained organizations can raise huge entireties of cash because there is no restriction to what number of shareholder a PLC can have.

Longevity- The business has isolate legitimate element. There is progression regardless of the possibility that any of the shareholder die.

    

Disadvantages of Public Limited Companies are as follows, 

  • Going public can be expensive
  • Double taxation
  • Managerial demand
  • Possible loss of control

Going public can be too expensive - PLC has grown so much to the extent that they find it difficult to manage effectively.

Double taxation- An organization must pay government and state company income tax on its benefit and individual shareholders additionally pay impose on their share to the organization they get benefit as profit.

Managerial demands – The top official give their time, vitality, to meet with the shareholders, money related investigator and the media by so doing, the top official spent as much as 40% of their time on the outer issues.

Possible loss of control original proprietors who get an adequate associations stock can pick up seats on the governing body and therefore start applying for their impact on association administration. In outrageous cases, untouchables can take finish control and even supplant the organization authors on the off chance that they trust an adjustment in administration is required.

                     

Task 2

Product Life Cycle. A new product advances through a grouping of stages from prologue to development, maturity, and decline. This grouping is known as the product life cycle and relates to changes in the marketing situation, thus impacting the marketing strategy and the marketing mix.

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[pic 1]

Major stages of the PLC

Product life cycle comprises four stages:

  • Introduction stage
  • Growth stage
  • Maturity stage.
  • Decline stage

  • Introduction stage.

This stage of the cycle could be the costliest for an organization propelling another item. The span of the market for the item is little, which implies deals are low, despite the fact, that they will increment. Then again, the cost of things like innovative work, purchaser testing, and the promoting expected to dispatch the item can be high, particularly if it's a focused division.

Growth stage Competitors are attracted into the market with very similar offerings. Items turn out to be more gainful and organizations shape unions, joint ventures and take each other over. promoting spend is high and focuses upon building brand. Market share tends to stabilise

Maturity stage -Those products that survive the earlier stages tend to spend longest in this phase.

Sales grow at a decreasing rate and then stabilise. Producers attempt to         differentiate products and brands are key to this.

Price wars and intense competition occur. At this point the market reaches saturation. Producers begin to leave the market due to poor margins. Promotion becomes more widespread and use a greater variety of media.

Decline stage in the end, the market for an item will begin to therapist, and this is what's known as the decrease arrange. This shrinkage could be because of the market getting to be distinctly immersed (i.e. every one of the clients who will purchase the item have as of now bought it), or because the buyers are changing to an alternate sort of item. While this decrease might be inescapable, it might at present be workable for organizations to make some benefit by changing to less-costly creation strategies and less expensive markets.

These examples illustrate these stages for markets in more detail.

Holographic projection: only recently delivered into the market, holographic projection technology lets in consumers to turn any flat floor into a touchscreen interface. with a big funding in studies and development, and high prices to be able to just communicate to early adopters, that is every other appropriate instance of the first degree of the cycle.

Tablet pcs: there are a growing variety of pill pcs for clients to choose from, as this product passes via the increase stage of the cycle and greater competitors start to come right into a market that really developed after the launch of Apple’s iPad

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