Main Objective Is Profit Maximization Commerce Essay

Main Objective Is Profit Maximization duty Es sound outIn this designation I am looking at lucreable organizations which have main objective is profit maximization. I am going to look at this in the context of starting a small firm. I forget be looking at the problems and emergencys when aiming to mystify a calling either in manufacturing or in the 3rd empyrean. I testament future explain that why plan is strategic for baseness? Also I give right about types of note enterprise linees, empyreans, of line of occupancy concernes and I will talk about some contrastes. Market analyzing mission and hatful disceptation as considerably argon genuinely important for a succeeder military control.IntroductionIn this assignment I am going to compile about the business plan. What be the important factors for a raw(a) business? I will carry through about the requirement of the business, types of the business, business argona and so I will explain each business sec tor advantages and disadvantages.2. commercial enterprise DefinitionBusiness is an economic or financial activity, which is associated with enduring and regular production and sharing of goods and function for fulfilling human needs .Stephenson defines business as, The regular production or purchase and sale of goods undertaken with an objective of earning profit and acquiring wealth through the satisfaction of human essentials. According to Dicksee, Business refers to a form of activity conducted with an objective of earning profits for the benefit of those on whose behalf the activity is conducted. (KALYAN CITY LIFE, 2011)A business plan is the arrangement for the business, explain that what it exists, for and what products, services it furnishs to society. Rebecca J bingles wrote in Information Outlook. A business plan is a roadmap for the organization, showing the destination it seeks, the path it will follow to get there, and the supplies and wherewithal needed to compl ete the journey. almost every succeed comp any needs a business plan. Due to Lack or upland of proper provision is one of the most frequently cited reasons for business failures. So business plans adjuvant for companies identify their goals and objectives also provide them with channels and strategies to reach those goals. (Reference for Business, 2012)There be main ternary types of business one primary, secondary and Tertiary. Extractive (primary) Manufacturing (secondary) Services (tertiary3. regardful Types of Businesses domainsWe have three type of businesses sectors one is public sector second is private sector and 3rd is voluntary sector/ non moneymaking save I will discuss about private sector.3.1 Public SectorPublic sector support be defined in the diverse style, Public sector in own and run by the judicature for the large number. Government collect funds by taxes and this money be utilise to finance most of the public sector.Central or local anaesthetic br ass or public corporations are Involves. The government makes all decisions in this sector Shareholders have LIMITED LIABILITY. A carte of directors run the business and moldiness have the words public limited with the company take a leak or letters PLC. Accounts must(prenominal) be published.Main aims of public are to habituate recourses well for the benefit of the community. Some example is royal mail in the UK and BBC TV channel.3.2 Private SectorA company owned by at least 2 shareholders and shares are sold privately. Profits are shared with shareholders dividends and Shareholders have LIMITED LIABILITY. Private sector has a board of directors to run the business. Name must be end with the word confine or letters Ltd. Private sector business are owned and run by private individual.3.2.0 Types of Private SectorWe have numerous types of private business but the most common are bellow.3.2.1Sole mongerBusiness of this sector has owned and controlled by one someone bills is usually provided by the owner. This means that level- addressedly the owner and the business are the same. Sole trader has unlimited liability. There is not much good paper work. Funding for business will be from owner side, banks, computer address card, and bank overdraft. Power and right will be on one hand, profit will on one share low bathtub and tax.3.2.2 PartnershipWhen 2 or more than 2 people run government agency a business which aims to make a profit is called partnership. The maximum form of partners is usually 20. Money is provided by partners. They are easy to set up but may have a Deed of Partnership and will share their profit and loss according to their musical arrangement. They are unincorporated. Easy to start, financial support is same wish well fillet of sole trader also from partners.3.2.3 FranchiseIt is an agreement between a franchisor and a righte and allows the use of a business name to franchise. Franchisee must provide the money to start their bu siness and franchisor provides materials, training and advice. Franchisee must make regular payments to the franchisor. Main aims of private sector are profit, growth, change magnitude market share and maximize sales.4. Legal requirementFor a new business you should lie with the legal requirement of the business and must narrative the company companies act 2006 in the UK. For example the business should be legal and register with company registrar. If the business is partnership then must distribute partners all agreement paper with registrar without enrolment of the company no one keep start the business in the UK.4. Legal requirementFor a new business you should know the legal requirement of the business and must register the company companies act 2006 in the UK. For example the business should be legal and register with company registrar. If the business is partnership then must submit partners all agreement paper with registrar without registration of the company no one ca n start the business in the UK.5. Funding OptionsFor business funding is the most important fact without money no one can start business and fund will never have enough, so shortage can be monstrous at firs stage. Depending on the structure of Business, business will have distinguishable sources of funding or finance.Some resources are Loans from Banks and Financial Institutions Shareholders Some banks provide our draft Some time government provide loans for some business much(prenominal) in Pakistan for agriculture Sale shares PartnersSome former(a) resources are shareholders and partners, depending on the organization legal structure of firm.6. Compliances7. Protecting your Intellectual positionIPR main benefits are to save the company products and services from your Oppositions or competitors and bar unauthorized users and action. If you have branded a only one of its sweet product then you must patent it. This means registering the manufactured goods and its objective to put a stop to others from doubling it. If dont, then the competition can just steal the product design from you, and will cost you a lot.Example of a patent shielding a firm from any more business assumeing its product was when apple clime that Samsung copy their product and the court still on process for more feature ( http//news.cnet.com ). Patenting is an expensive or valuable, though, and it must be done correctly. So IPR is very important for a company to register other hand it will cost a lot to the company.7.1 TrademarkA trademark is a brand name. A trademark includes any name, word, sign, device, or any combination, utilize or intended to be used to identify the organization such as MacDonald, HP computers, coca cola.http//www.bitlaw.com7.2 CopyrightsCopyright is the ownership of the of intellectual space (IP) The select right to make copies, and otherwise exploit a literary, musical, and delicious work, even audio, printed, video. It should register under copyright law act January 1, 1978, is saved for the duration of the author or inventor and for 50 years rate of flow of after his or her death. For example Adam Smith is the right person for his book Wealth of Nation no one can write this book or print it by other name.7.3 Industrial jut outsManufacturing Design is concerned with all the human being aspects of machine-made goods and their bond to people and the environment. The designer is responsible for these products and their impact on society and nature. Such as apple I pone 5,7.4 PatentsThe protection a person or a company a new product or way of doing something by stopping anyone else from copying or using it for a item period of time. For example any Madison formula.8. ContractsAn agreement between both or more parties to avoid the future problem and it is written and enforceable by law. For new business you have to sign many corrects like with Employment, Shareholders, Agency, Vendors, with other business, banks and financial instit utes. Every things should be clear and must be Confidential also it must include Term, Confidential development, representations and warranties, indemnity, limitation of liability, assignment protection of intellectual property.9. Insurance10. Mission instructionsMission statements are targeted at external and internal stakeholders its means that the statements must be suitable for a wide range of audients or readers. A mission statement is a idea or guiding hand, which provides a shared direction and stress for the firm internally so its mean that mission statement are meant to encourage and motivate everybody. The mission statement should Show the direction and aiming that the business to head in Give some sort of statement of advantage -what the business wants to do and achieve Classify the way in which the business is aiming to develop over a period of time Allow the business to use the mission statement for the growth of specific goals and objectives to reach their aims. th ese should be relevant for all levels of the organization Provide inspiration to employees to work towards achieving the goals and objects or vision set out by the statement. (mindtools, 2012)11. Vision statementsWhile a mission statement shows the way on which a business wants to head now and is of immediate relevance to all stakeholders, a vision statement is a more common statement looking at where the business or organization wants to be in the future. A vision statement essentially outlines what a company wants to be in the future and it may well be related to some sort of future outcome. (mindtools, 2012)http//www.diffen.com/ oddment/Mission_Statement_vs_Vision_Statement12. Market analyzingMarket analyzing will assist to the business and some benefits are below Under place upright the market and give you a bug fork over Attract the customers and perplex the competitors Market size Who is your customers and who is your competitors What customers needBest way to attend the m arket is market research. Market analyzing will help to understand the market and give you a thumping picture to you organization by analyzing the market will understand the behavior of end users and will beat the competitors because you know that what customers wants. Market research will give lots of information about the competitors. Try to make the products different from your competitors and this different will stand the business out from crowd and for competition there are three main things are very important1. Quality issues2. Customer services3. High price12.1 Segmentation CustomersIts mean grouping of customers by their age, gander, stander, office by segmentation will easily target the customers so we can segment it by1. Demographic ( how old they are)2. Socio-Economical (who much they want to excrete )3. Geographic ( where the live )13 PEST Analysis14. be after a new businessFor this section I have a bankable business plan and I will recommend a dominoes franchise wh ich is much better than other businesses. If we start a sole trade business or partnership business it is very severe for as to competition with big business. So there is a big chance to failure of the business. We will run business under the pennon of an already established business I mean Dominos Pizza. We also take advantages of their brand, ideas, operating techniques and much more which already tested and tried. rat name we can use Dominos pizza is well know brand in the market and have much demand in the all over the globe.14.1 Capital investmentFor Dominos pizza franchise total investment is 290000 + (VAT approx 49000. VAT will claim back/ bottleneck cost (shop fitting and project management fee) approx 130000Equipment cost approx 80000Legal/ Planning / Architects approx 17000Opening cost approx 25000Fees (training fees approx 45000Total approx 290000 + VATMore detail uncommitted in appendix14.2 FundingIn assignment question the say that dont worry about money but any w ay in case we face to the shortage of funding we can use ersatz way like loan from banks, bank overdraft, credit card, and loan from financial institute.14.3 HR and TrainingIn one franchise approximately 25 jobs we can make so we will advertise it in local news paper and we will select right candidate for training. subsequently the selection we have to do contract with our employees for minimum 2 years. deductionFrom above discussion it is clearer that training is very fore a business. Without planning no one can achieve their goals effectively. Also invest the jacket crown on the right business because everyone wants to invest their money for profit and other important thing is we should do business on legal way. If you want to be a success business man you have to create image in the society like Apple, MacDonald and, Dominos. Policies and procedure should clear to employees and customer and Health and safety environment provide to employees and customer. Franchise is more pr ofitable the other business because we can use their logo, trademark also it is well known in the market,.