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The development of the joint-stock company and the increasing size of the capital investment required

required to operate competitively in the face of ever more complex manufacturing and other techniques eventually led to the position where the true owners of an enterprise were not personally involved in its management

However, it is convenient in the context of a discussion on

and subsequent Companies Acts

It has also led to the curious situation that the true owners, or shareholders

capital and management to consider shareholders as owners, as is generally accepted by the community at large

This came about by virtue of the decision in the Salomon case of 1897

are not in a technical legal sense, in fact, the owners since a limited liability company is a corporate entity in its own right

In fact, unless the organisation is being grossly mismanaged

capital and management to consider shareholders as owners, as is generally accepted by the community at large

However, it is convenient in the context of a discussion on

of their companies, nor because they thought they saw a need in the market that could be filled to some advantage to themselves: these attributes are the preserve of the entrepreneur and the real merchant adventurer

These owners - the shareholders - who invested in large undertakings did not do so because they had a personal interest in the technical activities

and subsequent Companies Acts

This came about by virtue of the decision in the Salomon case of 1897

the average shareholder has only one chance a year to influence his company’s affairs, and that is at the annual general meeting (AGM)

They have little, if any, control over the objectives

indeed, many companies have this as a requirement for a directorship. However, this in no way diminishes the basic fact that there are now three levels

However, it is convenient in the context of a discussion on

of the organisation or its day-to-day management

In fact, unless the organisation is being grossly mismanaged

capital and management to consider shareholders as owners, as is generally accepted by the community at large

Of course, it is true to say that members of management are often shareholders and thus also have an interest in capital:

the average shareholder has only one chance a year to influence his company’s affairs, and that is at the annual general meeting (AGM)

They may use argument at the annual general meeting, which

of the organisation or its day-to-day management

In fact, unless the organisation is being grossly mismanaged

may or may not be effective

Acting as a board they are responsible for deciding the objectives

the average shareholder has only one chance a year to influence his company’s affairs, and that is at the annual general meeting (AGM)

They have little, if any, control over the objectives

of the enterprise and for determining its policies in pursuit of those objectives

Acting as a board they are responsible for deciding the objectives

and for generally controlling the enterprise in the interests of the owners

The directors must make provision for a proper and adequate organisation, for authorising capital expenditure

for running departments or divi­sions, and are accountable to the senior executive officers on a functional basis

.DEPARTMENTAL MANAGERS, sometimes known as middle man­agement, are usually responsible

of the organisation or its day-to-day management

They have little, if any, control over the objectives

of the enterprise and for determining its policies in pursuit of those objectives

Acting as a board they are responsible for deciding the objectives

for large companies to think globally

According to a recent survey, the top characteristics of an international manager include many soft skills, such as the ability to work in international

of the enterprise and for determining its policies in pursuit of those objectives

Since the 1980s there has been a trend

teams, adaptability to new situations, sensitivity to different cultures (and awareness of own cultural background), and relational skills

DEPARTMENTAL MANAGERS, sometimes known as middle man­agement, are usually responsible

for running departments or divi­sions, and are accountable to the senior executive officers on a functional basis

The manager should be self-reliant and have

should think “world” and not see work responsibilities and needs soley from the perspective of his or her own national background

In other words, the manager

quickly involved in matters affecting several countries

Another important characteristic is strategic awareness:

the manager should have a global view of his or her contribution at work

An international manager must become

an open, non-judgemental personality

The manager should be self-reliant and have

requirements of a wide range of countries right from the start

Another important characteristic is strategic awareness:

the manager should have a global view of his or her contribution at work

Companies are beginning to recognise that

an open, non-judgemental personality

For example, he or she must be sensitive to, and aware of, the market

they do not have enough high-quality people for their international activities

For example, he or she must be sensitive to, and aware of, the market

an open, non-judgemental personality

They often have problems releasing experienced people from

requirements of a wide range of countries right from the start

The manager should be self-reliant and have

existing operations in order to resource and lead new international ventures

Such experiences open people’s minds to the fact that things are

done differently elsewhere and encourage them to think in a wider context

Developing the international company’s management resource

is a demanding exercise

The manager should be self-reliant and have

with a load capacity of 1.5 tonnes

Such experiences open people’s minds to the fact that things are

an open, non-judgemental personality

Initially, I shall have one truck

done differently elsewhere and encourage them to think in a wider context

The manager should be self-reliant and have

was very favourable

Developing the international company’s management resource

an open, non-judgemental personality

Their response

is a demanding exercise

It will be fitted

fitted with a mobile phone

The manager should be self-reliant and have

I have Ј10,000 capital

I shall drive the truck myself and

was very favourable

To finance this venture,

also employ part-time drivers

Their response

an open, non-judgemental personality

A document which represents a part of the total stock value of a company

an open, non-judgemental personality

My start-up costs

also employ part-time drivers

I shall drive the truck myself and

and which shows who owns it

The manager should be self-reliant and have

will total Ј25,000

The manager should be self-reliant and have

goods or services

A formal agreement to provide

and which shows who owns it

A document which states that

a named person has paid for protection against accidental loss or damage of goods or property

A document which represents a part of the total stock value of a company

an open, non-judgemental personality

I am therefore seeking a bank loan

of Ј15,000. I can offer the truck (estimated value Ј20,000) as security

A formal letter with an offer to supply goods or services, containing

a description of the project, including costs, materials, personnel, time plans, etc

An official notification from a bank

that it will lend money to a customer

A description of the ways a new business hopes

to make money, showing possible income and expenditure

A description of the ways a new business hopes

to make money, showing possible income and expenditure

A formal letter with an offer to supply goods or services, containing

a description of the project, including costs, materials, personnel, time plans, etc

By focusing on its strengths, its key customers, and the underlying values they need

American Management Technology will increase sales to more than $10 million in three years, while also improving the gross margin on sales and cash management and working capital

It has a good reputation, excellent people, and a steady

position in the local market, but has been having trouble maintaining healthy financials

A formal letter with an offer to supply goods or services, containing

position in the local market, but has been having trouble maintaining healthy financials

It has a good reputation, excellent people, and a steady

public relations consultant

Dudley, our attorney, and Paul Karots, our

by its founder and president, Ralph Jones

AMT is a privately-held corporation owned in majority

a description of the project, including costs, materials, personnel, time plans, etc

The more detailed numbers in Table below

squeezes that have affected computer resellers worldwide

AMT has been caught in the vise grip of margin

include other indicators of some concern

Although the chart titled Past Financial Performance

shows that we have had healthy growth in sales it also shows declining gross margin and declining profits

Neither owns more than 15%, but

both are active participants in management decisions

Neither owns more than 15%, but

both are active participants in management decisions

The margin squeeze is happening

squeezes that have affected computer resellers worldwide

The gross margin % has been

throughout the computer industry worldwide

AMT has been caught in the vise grip of margin

declining steadily, as we see in the chart

The margin squeeze is happening

conveniently close to the downtown area. It includes a training area, service department, offices, and showroom area

We sell the assurance

squeezes that have affected computer resellers worldwide

We have one location – a 7,000 square foot store in a suburban shopping center

to small business people to know that their business will not suffer an information technology disaster

AMT has been caught in the vise grip of margin

throughout the computer industry worldwide

They say they tried

conveniently close to the downtown area. It includes a training area, service department, offices, and showroom area

Store 4 and Store 5 are both

squeezes that have affected computer resellers worldwide

We have one location – a 7,000 square foot store in a suburban shopping center

in the downtown area

AMT has been caught in the vise grip of margin

offering services and that buyers didn’t care, instead preferring lower prices

Our estimate in this plan for the home offices in our market service area

also that they didn’t differentiate from the chains

We think the problem is also that they didn’t really offer good service, and

squeezes that have affected computer resellers worldwide

AMT has been caught in the vise grip of margin

offering services and that buyers didn’t care, instead preferring lower prices

They say they tried

is based on an analysis published four months ago in the local newspaper

There are also part-time home offices with people who are employed during the day but work at home at night, people who work

at home to provide themselves with a part-time income, or people who maintain home offices relating to their hobbies; we will not be focusing on this segment

Our estimate in this plan for the home offices in our market service area

is based on an analysis published four months ago in the local newspaper

They say they tried

offering services and that buyers didn’t care, instead preferring lower prices

Home offices include

several types

The 30-employee cutoff

is arbitrary

We must differentiate ourselves

offering services and that buyers didn’t care, instead preferring lower prices

They say they tried

several types

Home offices include

from the box pushers

This means the 5-20 unit system, tied together in a local area

from the box pushers

We need to establish our business offering as a clear and viable

network, in a company with 5-50 employees. Our values – training, installation, service, support, knowledge – are more cleanly differentiated in this segment

They say they tried

offering services and that buyers didn’t care, instead preferring lower prices

We must differentiate ourselves

alternative for our target market, to the price-only kind of buying

This means the 5-20 unit system, tied together in a local area

the high-end, high-quality service and support we offer

We must differentiate ourselves

from the box pushers

Our revenue structure has to match our cost structure, so the salaries

we pay to assure good service and support must be balanced by the revenue we charge

We must charge appropriately for

network, in a company with 5-50 employees. Our values – training, installation, service, support, knowledge – are more cleanly differentiated in this segment

Elsewares is seeking a $300,000.00 financial package based

the high-end, high-quality service and support we offer

Our revenue structure has to match our cost structure, so the salaries

on a note due in five years but amortized over 15 years

We cannot build the service and support

we pay to assure good service and support must be balanced by the revenue we charge

We must charge appropriately for

revenue into the price of products

The note will be personally

we pay to assure good service and support must be balanced by the revenue we charge

Elsewares is seeking a $300,000.00 financial package based

on a note due in five years but amortized over 15 years

Our revenue structure has to match our cost structure, so the salaries

guaranteed by the Greenbaums’ assets

Whatever profits remain after the above debt payments will be used

to finance growth, mainly through the acquisition of additional inventory

The note will be personally

is inventory turnover

Our revenue structure has to match our cost structure, so the salaries

capital situation is chronically tight

This could cause a serious problem with cash flow, because our working

guaranteed by the Greenbaums’ assets

The most important indicator in our case

we pay to assure good service and support must be balanced by the revenue we charge

It may be necessary to implement a variety of payment terms with different

hold marketing costs to no more than 20 percent of sales

We will rely heavily on our subscription to the ASI Credit

Service for this valuable pre-sale information

We must maintain gross margins of 90 percent at the least, and

may be the only extendible terms

In extreme cases, prepayment of orders

distributors depending on their payment history

Elsewares is organized into three main functional areas: product

married and the mother of one child

We will rely heavily on our subscription to the ASI Credit

sourcing, sales & marketing; production & shipping; and finance & administration

We must maintain gross margins of 90 percent at the least, and

hold marketing costs to no more than 20 percent of sales

Mrs. Greenbaum holds a B.A. from U.C.L.A., is

Service for this valuable pre-sale information

Mr. Rosenbaum is married

for just under 25 years and hold the credentials of a C.A.S. or Certified Advertising Specialist

Marvin Rosenbaum: Consultant. Mr. Rosenbaum has been associated with the Advertising Specialties industry

and has maintained extensive business contacts with many of the industry leaders

Mr. Rosenbaum has been responsible for the successful entry of many companies into this industry

to penetrate the advertising specialties market with products they are already distributing to other markets

Over the years, Mr. Rosenbaum has been hired by both suppliers and distributors who are either starting a new company as we are or who are attempting

and the father of two children

Marvin Rosenbaum: Consultant. Mr. Rosenbaum has been associated with the Advertising Specialties industry

for just under 25 years and hold the credentials of a C.A.S. or Certified Advertising Specialist

Over the years, Mr. Rosenbaum has been hired by both suppliers and distributors who are either starting a new company as we are or who are attempting

to penetrate the advertising specialties market with products they are already distributing to other markets

Mrs. Greenbaum will be responsible for the day to day operations

including personnel company policies, and overseeing the sales & marketing and marketing departments

The cornerstone of the personnel plan is to maximize production and minimize

the labor burden on the companies operating expenses

The sales & marketing department will be headed by Marvin Rosenbaum who has been

contacts with distributors with whom he has had a previous business relationship

Mr. Rosenbaum will also oversee the network of commissioned based sales reps

hired as an independent consultant at a per diem of $200

Mr. Rosenbaum will be responsible for initiating new leads with the ASI distributor network and for re-establishing existing

also be responsible for calling on distributors as directed by Mr. Rosenbaum

The sales department will be supplemented by Edie Greenbaum who will

that will call on distributors in their preassigned territories

The sales & marketing department will be headed by Marvin Rosenbaum who has been

hired as an independent consultant at a per diem of $200

At a salary of $36,000 per year, Mr. Greenbaum will be responsible for running the customer

service department which will include handling phone orders and catalogue requests

We are projecting the division

contacts with distributors with whom he has had a previous business relationship

Mr. Rosenbaum will be responsible for initiating new leads with the ASI distributor network and for re-establishing existing

of this department into two positions at approximately the fourteenth month of business