...Alex Vanarthos 11/26/2014 America's Most Successful Family Businesses Family businesses make up an incredible 34% of the S&P 500 Index, meaning over 170 of our nation's 500 largest companies are family owned (Caspar, Christian). To some, this figure is extremely surprising, as it shatters the commonly held misconception that family firms are simply "mom and pop shops." Although it is clear that family businesses are capable of incredible widespread success, exactly why this is the case is far less obvious. One way to gain some valuable insight into how and why so many effective family businesses exist is to closely examine the three in our nation that have had the most success: Cargill, Ford Motors, and Wal-Mart. In many ways, these businesses could not be more different; for instance, they operate in separate industries, and the levels and types of family involvement in the firms vary. Extensive analysis of these three corporations did, however, reveal that while no family, business, or family business is perfect, each company's achievements are directly attributable to its commitment to the common vision and identity instilled in the firm by the family. Cargill Cargill is a private corporation that works with "farmers, customers, governments and communities" to provide "food, agriculture, financial and industrial products and services to the world ("Cargill:...
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...essences in 1866 and then later in 1873 toothpaste was being introduced to the market. The formation of Colgate-Palmolive is completed in 1928. In 1930s, Colgate-Palmolive Company has purchased several French and German soap makers where they are enable to make their first expansion into Europe and later on into Asian during the 1950s. Colgate Total Toothpaste is being introduced in 1997 and has become the market leader in the US as soon as it has been introduced. Among all the other oral care products only Colgate Total has the specialty of 12 hours protection that solves a number of Oral Health problems. Colgate spent $841 million to privately own the European’s oral care company, GABA in 2004. Colgate has focused on four types of core businesses such as Oral Care, Personal Care, Home Care and Pet Nutrition today. Now Colgate does business to 222 countries and territories worldwide. Colgate also has ranked as the India’s No 1 most trusted brand across the categories for four consecutive years from 2003 to 2007. Colgate has been positioned in the...
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...Aminah was an advertisement in a newspaper, which referred to a ‘special offer while stocks last’ by a local supermarket of a well-known brand of vacuum cleaners. The offer price was stated to be RM100 per unit. The usual price of such vacuum cleaners was around RM300 per unit. Aminah rushed to the supermarket, chose one of the vacuum cleaners and took it to the payment counter. The salesperson at the counter told her that the supermarket had increased the price of the vacuum cleaner and that the new price was RM320. Aminah refused to buy the vacuum cleaner at that price. She seeks your advice whether the supermarket is contractually bound to sell the vacuum cleaner to her at the advertised price of RM100. (a) In order for a valid agreement to arise there must be a proposal (offer) and an acceptance of that offer. A proposal (offer) is said to be made when one person signifi es to another his willingness to do, or abstain from doing anything, with a view of obtaining the assent of that other to the act or abstinence: s.2(a) Contracts Act 1950. An offer must be distinguished from an invitation to treat. While an offer may be accepted giving rise to an agreement, an invitation to treat is only an offer to receive an offer, i.e. it is an invitation to another to make an offer. Examples of invitations to treat are advertisements and displays in shop windows. A case in point is Pharmaceutical Society of Great Britain v Boots Cash Chemist Ltd (1953). In this case the defendants...
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...enough customers to whom its output can be sold on a consistent basis in order to make a profit. The purpose of business? The purpose of a business is to offer value (through products and/or services) to customers, who pay for the value with cash or equivalents. The aim of businesses is to make profit and to grow. There are 3 business sectors in the UK, these are Private, Public and Voluntary sectors. Types of businesses in UK? The private sector has different categories which are sole traders, partnerships, companies and franchises. A sole trader is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business. Being a sole trader is considered the simplest way to run a business as it does not involve paying any registration fees. You must register as self-employed, keeping records and accounts is straightforward, and you get to keep all the profits. The difference is that you are personally liable for any debts that your business runs up, which can make this a risky option for businesses that need a lot of investment. Examples of sole traders are plumbers, electricians etc. These can even be small web based businesses or home based business. Sources of Advantages *The firms are usually small, and easy to set up. *Generally, only a small amount of capital needs to be invested, which reduces the initial start-up cost. *The wage bill will usually be low, because there a few or no employees...
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...business needs. Sole Proprietorship This is a business that is owned by one person, it is simple because one single person runs the business. Normally, this type of entity are for service related such as doctors and accountants, but sometimes people who make small dolls or services such as yard detail. The type of business, the owner keeps are the profits, you need only a small percentage of money to start up and not complex to setup are some of the advantages. The disadvantages is the business debts can be recovered from the owner’s assets, it is very difficult to transfer because the owner has to sale the whole business and constraints on growing the business because of the limited resources of the owner. Sole Proprietorship businesses: doctor’s office, account services (tax season), photographer and mobile food truck vendors. Partnership/Limited Liability Partnership (LLP) Two or more people go into business together, with a mutual understanding of sharing the profits. Somewhat like the sole proprietorship entity, with two classifications:...
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...ordinary. Most often than not, starting small with minimal capital is not an issue. Successful innovators like Bill Gates and Steve Jobs can attest to this fact. They started small, but with both creativity and willingness to standout above the rest, they have now built their own multibillionaire empires. This does not mean, however, that small microenterprises do not have the chance to hit the financial jackpot. If you want to start your own business, the fear of not knowing where to start is a given. But why worry when you can continue a business someone has already started? Here are a few businesses for sale where you can put your bet on. Keep reading, and discover which business lines are perfect for you. Food Industry If there is a business that would never go out of commerce, then food would have to be the answer. The food industry is one of the easiest entry-level businesses. You don’t need to be a five-star chef with culinary arts degree to become successful. By buying an existing food business, you can get tips and advices from the current owner, and you are already right on track. Because they have pertinent experience on the field you’re entering, you can be assured to get the right supervision from them. Another suggestion may be to add more product lines from the existing business. If the business you are buying, for example, sells hamburgers, then you can move on by adding promotional and unique types of burgers that your customers would surely enjoy. ...
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...(http://www.oecd.org/daf/ca/corporategovernanceprinciples/43654301.pdf) Research quantifies the value of good governance in family businesses. In a study by Professor Panikkos Poutziouris of the Cyprus Institute of Management of 42 companies on the London Stock Exchange, listed family firms outperformed their listed non-family rivals by 40 percent from 1999 to 2005. But the study also shows that the outperformance of the Family Business63 Index only applies when the interests of shareholders and management are aligned. Credit Suisse64 research also showed that family-owned companies perform better: over the long term, such firms tend to achieve superior returns and higher profitability than companies with a fragmented shareholder structure. Credit Suisse analysts compared the stock performance of European companies with a significant family influence to firms with a broad shareholder base. The study incovered several factors that contribute to the success of familyowned firms: ff Longer-term strategic focus of the controlling shareholders and management, instead of operational focus on trying to surpass quarterly results in Better alignment of management The main challenge in family business governance relates to the existence of an additional layer of relationship that the owning/controlling family brings to the business.‑ For shareholders this complexity includes understanding the various interconnections among the owning/controlling family members. These roles...
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...Table of Contents Section A. 2 Executive Summary 2 1. What are the capabilities of the XO laptop (especially the latest version, XO-4)? How well-suited is this machine for developing countries? 2 2. How the XO laptop narrows the global digital divide and the potential impact of this machine compared to that of cell phones in developing countries? 4 Section B 5 1. Major factors driving internationalization of businesses. 5 2. Alternative strategies for developing global business 6 3. Using information systems to support different global business strategies. 7 4. Challenges posed by global information systems and management solutions. 8 5. What are the issues and technical alternatives to be considered when developing international information systems? 10 References. 13 Section A. Executive Summary This document aims to explain the system design and hardware blueprint of the XO-4 laptop. While the capabilities of the XO-4 are similar to a regular laptop, it was designed for elementary school children. The primary goal of the hardware design is low-power operation, and for extensive use in developing countries or rural areas where access to classrooms are not always available. 1. What are the capabilities of the XO laptop (especially the latest version, XO-4)? How well-suited is this machine for developing countries? According to wiki.laptop, (2013) the XO-4 are different to other laptops as all components except the keyboard and touchpad...
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...money for a business that has not shown ability to succeed. If you were thinking of going into a business you might decide to ask someone to join you as a partner. In this way you and your partner can share the risk of starting up in a business and share the profits. You can also share the time spent in the business. This can sometimes ease the burden of working long hours. Advantages: • The owner has complete freedom to set up the business the way they want it. • The owner can determine the pace of the growth and change. • There is no goodwill to pay for. Disadvantages: • Setting up a new business involves high risk and uncertainty. • It takes time to train and hire staff, find a customer base and start making money! Existing Businesses: It may be better to buy an existing business that has been established for some time. All...
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...Assignment 1: Comparing Two Similar Businesses Bus302: Management Concepts Border Books and Amazon.com both started out selling books. So, why is Amazon.com one of the largest retailers in the world and Borders Books is out of business? There are many things that go into making a business a success. It is not enough to have a product to sell and a location to sell that product. In order to understand the difference between Amazon.com and Borders Books, it is important to look at the history and core business of each company, the management approach each company took to Internet marketing and sales, the reasons for Amazon’s success despite not turning a profit for the first five to six years, the reasons Borders Books, although they were initially successful ended up in bankruptcy, the extent to which the management of each company adapted to changing market conditions, and ways a company should build flexibility to back up its decision making process so to adapt to changing market conditions. In order to understand the difference between Amazon.com and Border Books, it is important to understand the history and core business of each company. Looking at Amazon.com first, Amazon.com opened for business on July, 16 1995. “The company was nothing more than a few people packing and shipping boxes of books from a two-car garage” (Webley, 2010). The company was using a desk made out of an old door to pack the books. When Amazon.com first started selling...
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...Case Study on IB of Apple Inc. Introduction Apple Inc. is one of the world’s most successful multinational corporations engaged in researching, designing and producing electronic technology devices and solutions. The sensational success and tremendous profit of Apple Inc. are created through globalizing its businesses. According to Corteau and Milan (2011), globalization usually involves a series of interrelated activities such as internationalization of finance and trades. The company has realized significant globalization through extension in the global market. In the first half year of 2013, Apple’s revenue amounted to $98.115 billion. Only less than 35% of this revenue was generated in the US market. The global market was the source of over 65% of Apple’s revenue. This article intends to explain Apple’s globalization through analyzing one of Apple’s key creations: iPod. Special attention is given to the jobs and profits around the world generated by iPod, disparity in income and employment, and employee composition. Analysis of impacts of globalization on Apple Inc. since Jobs’ return Apple Inc. has undergone the golden time for business development and globalization from 2007 to 2011 under the leadership of Steve Jobs. The company was then on the verge of bankruptcy in 2007 when Steve Jobs returned to Apple. In order to save the company from bankruptcy, Steve Jobs took a series of restructuring and rebooting measures with a focus on innovation and internationalization...
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...a1 PART A SOLE PROPRIETORSHIP A sole proprietor operations are often called mom and pop businesses. They are usually run by a single person, the owner, or run by a very small staff. • Liability: The owner is liable for all debts accrued by the business. This means creditors are entitled to recoup and debts through business and personal assets. • Income taxes: A sole proprietor files their business taxes along with their personal taxes. Typically when filing taxes the form that is files is the 1040. The owner would just need to file a Schedule C form along with their 1040. • Longevity or continuity of the organization: In the event that the owner dies normally the business dies also. Unless the owner has a qualified heir to pass the business to it will cease to exist. 2 • Control: As stated above, typically sole proprietorships are completely autonomous. The owner has total control over day to day operations. He also has to final word on all decisions associated with the business. • Profit retention: The owner keeps 100% profits gained. • Expansion / Location: To expand or relocate business the owner only needs to make sure they obtain any licensing or permits required by local or state law. Also, if operating in a name other than their own, they must make sure the business name is legally available for use. GENERAL PARTNERSHIP A general partnership is where there are two or more that own a business with equal powers. To establish a partnership...
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...What are the best money making business ideas that can make you become rich? What is the best business to start? Well, this article is an answer tothese questions . As this year draws to an end, you need to positionyourself properly because there are a lot of income opportunities available that can take you to whole new level. Whether you are an entrepreneur or investor, you will surely find this compilation valuable. So without wasting your time, below are 30 best money making business ideas that can make you become rich. P.S: This article only contains researched information, so it is expected that you conduct your own feasibility study and write a business plan or you can talk to a competent business consultant . 30 Best Money Making Business ideas that can Make You Become Rich *. Event and party planning If you have been complimented on your parties, you might be good enough to be a party planner. Many people who are throwing parties will desperately need your service. Let them know you can handle everything from invitations to thecatering, from the entertainment to cleaning up afterwards, from the wine shopping’s to decorations. The best places to herald your services would be in the entertainment section ofmost of the daily newspaper. I will recommend some soft sell magazine, because placing an advert in some of these magazines will surely go a long way in getting some customers. Generally, this work goes for a flat fee, depending upon the size of the party. From...
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...Owning and operating a business, for some, is a dream come true, and something that takes years of careful planning before it can be brought to fruition. However, deciding which type of business format to enter into is just as important as coming up with a solid business plan initially. Thorough consideration should be given to all business types; even discussing the many options with an expert is highly advisable. In the end one has to make the final decision to become a sole proprietorship, an LLP, LLC, an S corporation, so on and so forth… One of the simplest forms of running a business is doing it as a sole proprietor. A photographer, for example, doesn’t need much capital to start up this venture, and would have the benefit of being his or her own boss, as well as reaping all of the profits made from selling his pictures. Plus, this person would not have to pay taxes at a business level, and would only have to file a 1040 on the personal income tax form. One of the only downsides to this type of business is the photographer must be prepared to be solely liable for any damages or torts brought forth upon them. Additionally, a sole proprietorship has a limited life, because when the business owner dies, the business generally dies along with it (Garrison, 2012). Another very common form of doing business in the United States is by establishing it as a partnership. This can be as simple as two friends joining together to form a catering company, or as complex as several...
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...Betty Wilson, a mature Christian, is thinking of opening a Christian Coffee House in Belmont, NC. Her husband John is open to making a contribution of capital to the business, but he has no interest in participating in its operation or management. Her sister Alice, is a new Christian, and has informed Betty that she’s been looking for an excuse to get out of the house and that she would love to be a part of the business. Alice’s husband, a non-Christian, opposes her involvement and told her that he expects her to remain a stay-at-home mom to their daughters, Ally and Lisa, ages 13 and 15. Betty’s neighbor Erma, a non-Christian, has also expressed an interest in participating in the business as a way to earn some extra income. As a consultant, I will address the pluses and minuses of the following business forms so that Betty might adopt a business structure that is the best fit for her success. “A Sole Proprietorship, is a business owned by one person with no formal legal structure. The advantage is simple. Just start your business; there's no additional paperwork. You don't file corporate income tax; just file a Schedule "C" with your personal income taxes. The disadvantages are you have no personal liability protection. If your business is sued, you could lose everything you own, and in some cases, your spouse could lose his or her assets, too. A Partnership is a business with more than one owner who actively engages in the management of the company. The advantages are...
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