Introduction
After attending several lectures at xxx, I have decided to open a kiosk business in my estate selling potatoes. I therefore have to decide under what legal form to register my business after a careful consideration of the different pros and cons and finally identify what would make up the supply chain of my business.
Background information
There are a range of legal structures associated with different forms of business:
1. Sole trader businesses are the easiest to set up because there is no complex paperwork. The business and the owner are the same person in law. The sole trader does not have limited liability which means that they are responsible for all the debts of the business. The sole trader has to produce an annual accounting return for the Inland Revenue.
2. Partnerships are set up by a Deed of Partnership which is a document made out by the partners and witnessed by a solicitor. This Deed sets out the legal relationship between partners e.g. how profits will be shared out, responsibilities of partners etc. In traditional partnerships the partners had unlimited liability i.e. they were jointly responsible for the debts of their partnership. In 2001 this has been altered so that some large partnerships e.g. accountancy firms can have limited liability.
3. Companies are separate in law from the individual owners (shareholders) of the business. This means that should the business run up debts the shareholders are only liable for these debts up to the sum they have contributed to the company. A number of Companies Acts have been passed setting out ways in which companies should conduct their affairs.
With the above information in mind, I would therefore proceed to open my kiosk under sole proprietorship form. Below are some of my reasons why;
Reasons for sole proprietorship
Quick Set-Up
Sole proprietorships can be set up quickly. Most counties allow business owners to start operating as a sole proprietorship without registering with the state's business registrar — as long as the business operates under the name of the owner. A person who wants to set up a photography business as a sole proprietor, for example, can do so immediately without having to first file articles of incorporation or other formation papers with a state agency. Even where the paper work is required, the process is easy and straight forward.
No Upfront Costs
Setting up a business as a sole proprietorship requires no out-of-pocket expenditure to create or register the business. Not having to file formation paperwork with the registrar means that sole proprietors save hundreds or even thousands in shillings in state filing fees at least in the process of birth or start –up.
Ease of Formation
Setting up a sole proprietorship is easy. Operating a sole proprietorship requires no special knowledge of how to draft legal documents or officially set up the company with the business registrar. Comparatively, business owners who want to set up a business as a corporation or limited liability company often must seek out professional help.
Pass-Through Taxation
Sole proprietors benefit from pass-through taxation. The Internal Revenue Service does not consider a sole proprietorship an independent entity. Business profits are self-employed personal income to the owner and are taxed at the owner's individual income tax rate when the amounts are reported on the owner's income tax return. Individual tax rates are typically lower than business tax rates.
No Business Tax Return
Sole proprietors do not have to file a separate tax return for the business. Business revenue and expenses are tracked on the owner's individual income tax return.
Ease of Management
Sole proprietors are the bosses of their business. They do not have to answer to partners or a board of directors. Sole proprietors can manage the business any way they want, without worrying about government regulations or setting up partnership agreements or bylaws.
Ease of Conversion
Sole proprietorships can be easily converted to a different business structure as the business expands. If the business grows, the owner can decide to incorporate, establish a partnership or convert the business into an LLC. Tax laws make it easier to convert a business from a simpler legal structure to a more complex form of business. Conversely, trying to convert a corporation into a sole proprietorship is a more difficult procedure.
Formal organization
An organization chart outlines the formal chain of command and communications within an organization. This is the official structure that is backed up by rules and procedures. We must remember however, that what we see on paper is often very different from the way that things work in the real world. An individual with a strong personality can play an important part in the running of an organization, although he or she may appear near to the bottom of the chart.
In the formal organizational structure there will be patterns of communication and procedures for decision making. Some organizations will have tall structures with lots of layers of command whereas other organizations are relatively flat.

The formal organization is based on official links and connections whereas the informal organization is based on loose ad hoc connections. It is much easier to set out an organization chart for formal structures than for informal ones, which may not be obvious and may change although some informal structures are deeply embedded in working practice.

Supply chain
The concept of Supply Chain Management is based on two core ideas. The first is that practically every product that reaches an end user represents the cumulative effort of multiple organizations. These organizations are referred to collectively as the supply chain.
The second idea is that while supply chains have existed for a long time, most organizations have only paid attention to what was happening within their “four walls.” Few businesses understood, much less managed, the entire chain of activities that ultimately delivered products to the final customer. The result was disjointed and often ineffective supply chains.
Supply chain management, then, is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities.
The organizations that make up the supply chain are “linked” together through physical flows and information flows. Physical flows involve the transformation, movement, and storage of goods and materials. They are the most visible piece of the supply chain. But just as important are information flows. Information flows allow the various supply chain partners to coordinate their long-term plans, and to control the day-to-day flow of goods and material up and down the supply chain.

SUPPLY CHAIN MANAGEMENT

Objective
•Maximize the overall value generated – is the difference between what the final product is worth to the customer and the effort the supply chains expends in filling the request of the customer
•Supply chain profitability is the difference between the revenue generated from the customer and the overall cost across the supply chain it is the total profit to be shared across all supply chain stages
•Supply chain success is measured in terms of supply chain profitability and not in terms of the profits at an individual stage
•Revenue is from customer – positive cash flow. All other cash flows are simply fund exchanges that occur within the supply chain given that different stage shave different owners
•All flows of information, product or funds generates costs within the supply chain

As discussed, supply chain management involves the management of flows between and among stages in a supply chain to maximize total supply chain profitability

Decision Phases
Three categories - Depending on the frequency of each decision and the time frame over which a decision has an impact, Supply chain strategy or design Supply chain planning Supply chain operation
Supply chain strategy
Decides how to structure the supply chain over the next several years- chain configuration, - resource allocated and- process at each stage should perform.
Decisions include- location and capacities of production and warehousing facilities- the products to be manufactured or stored at various locations,- the method of transportation to be made available along different shipping legs, and- the type of information system to be utilized
Supply chain planning
Under the given configuration decisions are made which have impact on a time frame of quarter to a year
Starts with a forecast the coming year or a comparable time frame
Planning decisions include– which market will be supplied from which locations,– the subcontracting for manufacturing,– the inventory policies to be followed, and– the timing and size of marketing promotions
Companies in the planning phase try to incorporate any flexibility built into the supply chain in the design phase and exploit it to optimize performance
Companies define a set of operating policies that govern short-term operations
Supply chain operation
Decisions are taken regarding individual customer order and the time frame is a week or days
Configuration is fixed and policies are defined as the objective is to handle incoming customer orders in the best possible manner
Exploit the reduction in uncertainty and optimize performance

Process View of Supply Chain
A supply chain is a sequence of processes and flows that take place within and between different stages and combine to fill a customer need for a product
Two ways to view the processes performed in a supply chain;
Cycles view and Push/pull view
Cycle view
•Defines the processes involved and the owners of each process.
•Process in a supply chain are divided into a series of cycles.
•Cycles are performed at the interface between two successive stages of a supply chain.
•Supply chain process can be broken down into four process cycles such as– Customer order cycle– Replenishment cycle– Manufacturing cycle– Procurement cycle
Push/Pull View
•Categorizes processes in a supply chain based on whether they are initiated in response to a customer order (pull) or in anticipation of a customer order (push)
•Categorization is based on the timing of process execution relative to end customer demand
•At the time of execution of a pull process customer demand is known with certainty
•In case of push process at the time of execution of a process demand is not known and must be forecasted
•Pull process – reactive process
•Push process – speculative process
•Push/pull boundary in a supply chain separates push process from pull process
•Very useful when considering strategic decisions relating to supply chain
More the pull process better the supply chain
Conclusion.
A kiosk business is typically small scale in nature as it is usually limited by various factors which include the client base and in this case is just to serve the patato needs of the estate dwellers.
This also would be its advantage as its small scale operation coupled with the fact that I open and choose to have it run as a sole proprietorship enable its flexibility both in terms of the staff I have in enabling to run it and the background knowledge that the success or failure of this entity is stringent on me as the owner and the decisions I make towards its success.
References;
* Isabel, M. Isidro Weisner, and P.L. Kilbride. Editors. 1997. Home Business-Start Your Home-Based Business-Work from Home. Westport, Conn: Bergin and Garvey. * Family Business Sourcebook, Aronoff, Astrachan, and Ward.