Antique National School

Senior High School

Accountancy Business Management

CASE 005
Name: Lumen Pearl P. Magdaug Grade & Sec: 11- Gates Date: Aug. 1, 2019

Hillbilly Cable Company: All Kinds of Everything

1. Asses and explain what form of organization is appropriate for Hillbilly

Cable Company.

2. Design and illustrate your proposed organization chart for Hillbilly Cable
Company that will show the varied activities inherent to the firm.

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 Antique National School
Senior High School
Accountancy Business Management

CASE 003
Name: Lumen Pearl P. Magdaug Grade & Sec: 11- Gates Date: July 29, 2019

Ristorante Filipino: More

1. Evaluate possible proposed re-organization to suit for the planned

expansion. Present various pros and cons for each of the proposed form of
ownership that may serve as basis for decision making.

- The possible type of ownership that will suit their family’s business is
partnership. The complexity of the sibling stage in a family business typically requires
adjustments in management, business governance and the family’s decision making.
Since it is partnership, the advantages are: The environment is flexible, those
closest to you will surely understand your schedule, your needs and your personal
tendencies. Beware however, of the non-family employees are treated in comparison to
relatives. Employees may become bitter if they find out that one of your sibling is not
doing well at work. Strive to treat all business partners and employees equally and only
make exceptions when circumstances render them necessary. It adds to your brand,
customers and clients are more easily able to put themselves in the shoes of a family-
oriented business owner and a company or management that has remained consistent
over the generations. If you and your business partners have grown up with the same
core values, it’s highly likely that those values will shine through to potential buyers.
Those who join a family-run company are capable of learning the business’s brand
quickly upon hire, the values that support the brand are visible in all aspects of the
company instead of just one. This can result in a lesser turnover rate and a slew of
positive relationships with employees. You’re getting more than just a business
partner, when you start a company or management with a family member, you’re also
working with a friend, someone you truly enjoy spending your time with. You’re also
working with someone you may view as a mentor, a family member is someone you can
go to when the emotional side of business gets a little rough, which may not be the case
with other partners. Your bond with a family member is so strong, the odds of having a
partnership with them passed on to you from a parent or older sibling are particularly
high. In relation, you can pass the business on to your own children, nieces, nephews or
younger cousins if that’s the route you decide to take. It builds a stronger work ethic,
it’s easier to convince a family member to contribute financially or take on heavy
projects when everyone knows exactly how much it will benefit the business. It is
difficult to convince non-family partners and employees of a company’s vitality when
they aren’t part of such tight-knit circle. This is why it is important to treat family and
non-family workers as equal as possible. The Cons: A change in bond, working
together may improve your familial bond or it can destroy it. Partners who experience
conflicts in the workplace often results in turmoil within the relationship as a whole. A
constant airing of the family’s dirty laundry can turn off employees or even buyers
resulting in a negative company culture, higher turnover rates and fewer sales. Lack of
fresh perspective, it is great when all business partners agree on something, but
without someone from a different walk of life, you can run out of creative solutions to a
sticky problem. If you grew up under the same set of rules and the same lifestyle, you
run the risk of shutting out potential growth. Disagreement, decisions are shared and
differences of opinions can lead to misunderstandings. Having an ultimate arbiter of a
business partner dispute is a judge if you don’t have a management agreement in
place. Also disagreements can affect the management or relationship of the family.
There is no straight answer to whether or not family members should also be business
partners, but it is best to think about the consequences and the future cause before
making any big business decision.

2. Prepare a cost-benefit analysis for each of the possible form of ownership

other than its current business structure.

- The management rely on cost benefit analysis to support decision making.

Since I choose partnership as the possible type of ownership, I can provide an
unclouded view of the consequences of my decision, develop a strategy, evaluate new
hiring or make a resource allocation or purchase decision. The management is basically
setting up budget and accounting system in a way that allows program to manage cost
analysis, we might want to know the averages cost per business of provide on business
ownership include the cost of staff salaries of the business.
 Antique National School
Senior High School
Accountancy Business Management

CASE 004
Name: Lumen Pearl P. Magdaug Grade & Sec: 11- Gates Date: July 29, 2019

Camelot Records: Those Where the Days

1. Create a list of possible adverse effect to business of Miguelito’s no written

plan strategy.

- Accidental success is dangerous. Succeeding without a plan is possible but in

the long run, the business has no road map to follow when pursuing opportunities and
running daily operations. The consequences of not having a strategy can be severe.
Without a plan, your company does not have identifiable business objectives.
Your company lacks the focus needed to achieve corporate goals and develop plans
that will move the company forward. A lack of objectives means that your company
does not have a clear vision for the future. If you don’t know the goals and objective
you’re reaching for, how do you know when you’ve accomplished them? Objectives are
used to develop long-term growth and productivity plans that are essential for the
sustained success of the company.
Part of business planning is identifying the people in charge. Some businesses
prefer having a highly structured hierarchy, while others are loosely organized.
Whichever method will be preferred it should be clear to everyone. This establishes
responsibility for the success of each department and helps staff know who to report to
for clarification of job duties or questions. Without a coherent business strategy, the
company structure is not defined and there is no focused effort for employee and
corporate development.
The efficient processing and distribution of information is essential for the
success and growth of the company. The strategy establishes lines of communication
and allows employees to understand information priority. We should not assume that
employees and even managers know everything even if you discussed it many times. It
still needs to be a clearly written explanation so that everyone could understand. Each
employee will naturally focus on what he/she believes is important, which may or may
not align with yours.
Through strategic planning, you can see how your company will achieve its
mission or purpose. Be wary, however, of going into too much detail in your plan. The
business climate is a fluid one, changing due to many factors, including industry
advances and the state of the economy. If your strategic plan is too detailed it will be
difficult to adjust course even slightly when you need to. Your plan should indicate to
everyone the direction the company is headed and be flexible enough to change course
as needed.

2. Explain the value of shared planning as a requisite to strategic business

growth.

- The value of shared planning is to serve as your blueprint for how you will
operate your business. It provides as a guide to grow the company and it directs every
decision you make going forward. Writing down your business plan helps you clarify
your thoughts and organize the steps you need to take to be successful in your
business. It is effective is defining your goals and the steps needed to reach them. It
spells out your purpose, vision and means of operation. It also serves as your
company’s resume, explaining your objectives to investors, partners or even to
employees. A good business plan clearly states the amount of capital you need to make
the company work and where investment is coming from. By outlining your goals and
how you will reach them, your business plan helps you prepare for the future. It also
develop to identify potential obstacles including possible changes in the market so that
the company will be prepared to make operational decisions that remain in line with the
overall business strategy.