Series of Caselets on Introduction to Business

A business was started by three friends. The three partners initially brought their finished goods from China and sold them in the Sultanate of Oman. After operating the business for five years, the three partners, Rashid, Ali and Sultan was asked by the parent company in China to have an agreement under which they would have to pay a fee for producing and selling the company’s products. This continued for another four years, after which the parent company decided to stop the business relationship with the three friends in Oman. Now, the company joined hands with another Oman based owned and headed by Hamad. Hamad and the Chinese company decided to jointly develop, produce and sell their goods in Oman and other GCC countries.  This carried on for five years, after which the Chinese company broke the business relationship with Hamad and decided to invest on their own in Oman as the business potential in Oman and other GCC countries were increasing. The new organization, Attaya LLC recruited Aamer as the Chief Executive Officer (CEO) and asked him to define the main functions of the business along with their management responsibilities.

 

(1)What was the different form of international business activity in the case-let? Explain with reasons.

(2)Why did the Chinese company change from one form to another? Explain with specific reasons for each of them.

(3)List out the advantages and disadvantages of all the forms of business.

(4)If you are Aamer what would you do as the CEO of Attaya LLC? Explain each of them with details.

(5)In the second form of international business activity, what was the fee called as? Why did the three partners pay that fee to the Chinese owners?

 

Salim and Ali were good friends in college. After finishing their education, Salim started a coffee shop by taking some money from his father. Ali started a restaurant with his friend Hamad. Salim had more flexibility in managing his business. Ali and Hamad often had lot of problems in managing the business. Salim wanted to expand his business but was unable to do it due to some difficulties. Ali and Hamad could easily expand their business.

(1)Which type of business was started by Salim?

(2)Which type of business was started by Ali and Hamad?

(3)Why Salim had more flexibility in his business? What benefits would he have derived due to this flexibility?

(4)Why Ali and Hamad often had problems in managing their business?

(5)Why was Salim unable to expand his business, whereas Ali and Hamad could easily expand their business?

Mohammed is the student of Ibra College of Technology. He wants to start a business after completing his studies. He spoke to his friends, Ali, Haider and Abdullah and all the four agreed to start a business together. Mohammed called for a meeting as he was willing to discuss the business plan with all his friends. They also wanted to finalize all the departments of their business along with the roles of those department.After lots of discussion, they decided to start a restaurant which would sell Omani, Indian and Pakistani foods.

(1) Imagine you are Mohammed, how would you explain your friends the business plan?

(2)How would you explain the roles and responsibilities of the different departments of the business?

(3)What are the raw materials and finished goods of your business?

Three friends Ali, Sultan and Abdullah wanted to start a business. They wanted to come out with a big business.Initially all the three gave RO2000 each and together took a bank loan of RO5000.All the three friends were very close to each other, so they started their business on a verbal understanding.After the first year of the operation, the company earned a profit of RO2000.This is when there were misunderstandings, fights and quarrels between the partners on the profit sharing mode and percentages therein.During that year of operation, there were lot of confusions about the specfic roles and responsibilities of each and every partner.It was here their common friend Sulieman brought the three warring friends together by explaining them the need and importance of a written agreement in a business. After 3 years of operation, the trio decided to expand their business, but was finding it difficult as they didn’t have adequate amount of capital. Even the banks truned down their loan requests.As they were determined to expand the business, they decided to sell shares of their business to the friends and relatives of the respective partners.They were still not clear as to how they would differentiate a shareholder from a director and business manager who would be responsible for running the show.Sulaimen told them they need to make lot of adjustments primarily because they were changing from one form of business to another.

(1)What was the type of business started by the three friends?
(2)Why there were issues regarding profit sharing?
(3)Why there were issues regarding the roles and responsibilities of each partner?
(4)How did Sulaiman’s advice help the three friends to bury their differences?
(5)What was the enw type of business they moved into and why?
(6)How could they have sepearted the shareholders from the company directors and managers?
(7)What were the changes Sulaiman referring to while mentioning about the changes from one form of business to another?
(8)What are the advantages of the first form of business over the second one?
(9)What are the disadvantages of the second form of business over the first one?

Ahmad, Ali and Salim were working as managers in a company.Ahmad was responsible for representing the company outside and used to make long term plans.Ali was responsible for implementing the strategies made by Ahmad. After an year Ali was asked to work as a team leader and was given more authority. Salim was responsible for supervising the work of employees and used to take routine decisions.All the three however had some common roles even though they were in different levels. The top manager of the company,Sultan once called a meeting of Ahmad, Ali and Salim and asked to do the following-
(1)Ahmad should explain his interpersonal and informational roles.
(2)Ali should explain his informational roles.
(3)Salim should explain his interpersonal and informational roles.

Ahmad, Ali and Salim were working as managers in a company.Ahmad was responsible for representing the company outside and used to make long term plans.Ali was responsible for implementing the strategies made by Ahmad. After an year Ali was asked to work as a team leader and was given more authority. Salim was responsible for supervising the work of employees and used to take routine decisions.All the three however had some common roles even though they were in different levels. The top manager of the company,Sultan once called a meeting of Ahmad, Ali and Salim and asked to do the following-
(1)Ahmad should explain his interpersonal and informational roles.
(2)Ali should explain his informational roles.
(3)Salim should explain his interpersonal and informational roles.Q1-Which level of management was represented by Ahmad, Ali and Salim?Explain with reasons.
Q2-How was Ali’s role different  when he was made a team leader?
Q3-Explain  how all the three had some common roles even though they were in different levels.
Q4-Explain in detail the explanation of Ahmad, Ali and Salim to be submitted to Sultan.
 
Three managers had the following roles-
Ali-Leading the organization, training the employees, establish relationships with the board,interact with shareholders,establish relationships with junior levels.
Rashid-Interacts with the customers to know about products/services likes and dislikes,analyze suppliers and choose the best one,interacts with the society to know about the image of the company,visits ministry of commerce to know about new rules and regulations and tax structure.
Amir-Takes decisions about usage of resources like capital and human resource,solves unexpected problems arising in different department, ensure that the organizational objectives are achieved.From the situation above, solve the following questions-
(1)Levels of Ali, Rashid and Amir with reasons
(2)Identify different roles for each with reasons therein
(3)How is Ali’s, rashid’s and Amir’s role important for the organization?Other blogs from the blogger-

www.manishankarthetrainer.blogspot.com and www.twitter.com/manitwitts.

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About manishankarscribbles

A management trainer, consultant and faculty with experiences in South Asia, Middle East and Australasia. I am also present in www.manishankarthetrainer.blogspot.com and www.twitter.com/manitwitts apart from https://manishankarscribbles.wordpress.com .
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