Strategic Business Analysis

Prof. Albina Balon

Genevieve O. Vargas BSA21A1
STRATEGIC QUESTIONS AND EXERCISES
1. What are the disadvantages of a one-person operation?
The disadvantage of a one-person operation is that there is no delineation between the person and the
business. Because a singular person is the only decision-maker in the business, if anything happens to this
person, then the business grinds to a halt. Unfortunately, this happens quite a lot, such as when the owner
passes away and nobody else in the immediate family knows what to do with the business. When this
happens, the business ends up being liquidated because there has been no effort to train a successor or
have others know how to manage the business everything was in the owner's head alone. Other
disadvantages are High Tax Rate as a corporate form, you cannot avail of the tax slab advantage. In
proprietary, you are required to pay according to your salary at 10%, 20% or 30% tax rate. But in the case
of one person company, you are directly charged 30% income tax. The high tax rate is a big disadvantage
of a one-person company.
Consistency Cost the compliance cost of partnership firm or proprietary is very low compared to One
Person Company. One Person Management because the shareholder is one, and that person makes all the
decisions. Not suitable for high turnover there is the procurement of automatic conversion of One Person
Company into a Private Limited Company. One person company is included in Name, and it is required
to specify a one-person company in your company name in the bracket. There is a slightly lower
impression that the organization is kept running by one and only person.
In conclusion, the disadvantages of one-person operation are members, suitability for small business,
Business Activities, Tax Liability, Perpetual Succession, Higher incorporation costs and Higher
compliance costs.
2. Why is trustworthiness important in an assistant in a manager assistant organization?
Trustworthiness important in an assistant in manager assistant organization because to help in order to
manage a large staff will resort to hiring their own immediate family members. And it is because the
natural assumption that the younger generation is expected to obey their elders and trust them. In a
workplace can foster a strong sense of trust within their organization they can see a number of benefits
including the Increased productivity amongst staff. Improved morale amongst employees and staff. The
ability to work more effectively as a team, rather than individuals.

3.What is the disadvantage of setting up a functional organization?

 The functional organization may have unhealthy competition working with the other areas. There
may be a lack of understanding as to how significant that specific are to the company. In one
example, there may be a request from the marketing department which may not be prioritized in
 order to attend to the concerns of the sales department by adding more people. Ideally, the
companies decide based on what is urgently needed. Because the people in the functional
organization are grouped according to their special set of skills, roles or task, the entire team will
operate well. However, the business strategies and the level of bureaucracy make it difficult to
respond to changes immediately.
 Another disadvantage of functional organization structure is that these functional groups may not
be able to communicate more often which decreases flexibility and innovation.
 When a company uses this type of structure, it groups its people according to their knowledge and
skills which help them become specialists on that field. It also requires a management system
which allows promotion, development and visibility of skills of people in each functional area. It
helps to bring in-depth knowledge and skill development among the employees to achieve the
goals of the company.
 Management issues may arise because it is more bureaucratic, and the functional organization are
not accountable to each other and the poor horizontal coordination within the department may
occur. Employees’ motivation is greatly affected by lack of innovation and restricted views of
organizational goals. This structure can be rigid, and the standardized ways and high
formalization can hamper or impede faster decision making.
 Lastly, another weakness of functional organizational structure is there could be lack of unit
coordination. This means that though the functional units can perform with higher level of
efficiency however, there could be difficulty working well with each other thus, cooperation is
compromised. Some people may be territorial or there may be some who are unwilling to
cooperate. These unhealthy coordination’s may lead to delays, reduced commitments, competing
interests, waste of time, and getting late in finishing the project.
4. Looking at the setup of a multi-business enterprise, how is the head office supported? Who pays
for the salaries of its employees?
The setup a multi business enterprise the head officers can either take a direct hand at formulating
strategies for their different functional organizations, or they can have a more relaxed approach where
they delegate strategic formulation to the respective organizations but demand a certain level of a
performance for each of them.
Payroll clerks are the workers most directly responsible for doing payroll. They collect employee work
times, verify records and attendance, and calculate wages, taxes, and adjustments. They typically perform
their jobs with the help of computers. Salary is a fixed amount of money or compensation paid to an
employee by an employer in return for work performed.