David Gould set up his accounting firm, providing accountingservices to small businesses, in 20X6. Within three...

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David Gould set up his accounting firm, providing accountingservices to small businesses, in 20X6. Within three years his fee incomewas in excess of £ 100K a year and he had nearly 100 clients most of whom had been gained through word of mouth. David recognised that thesesmall or micro businesses, typically employing ten or fewer people, werereceiving less than satisfactory service from their currentaccountants. These accounting firms typically had between five and tenpartners and operated regionally and not nationally. Evidence of poorservice included limited access to their particular accountant, poorresponse time to clients' enquiries and failure to identifyopportunities to save clients money. In addition bad advice, lack ofinterest in business development opportunities for the client and poorinternal communication between the partners and their staff contributed to client dissatisfaction. David has deliberately kept the costs of thebusiness down by employing three part-time accountants and relying onhis wife to run the office. David had recently met lan King who ran a similar sized accountingfirm. The personal chemistry between the two and complementary skillsled to a partnership being proposed. Gould and King Associates, subjectto securing the necessary funding, is to be launched in September 20YO.David is to focus on the business development side of the partnershipand lan on the core services provided. Indicative of their creativethinking is David's conviction that accounting services are promotedvery inadequately with little attempt to communicate with clients usingthe Internet. He is also convinced that there are real opportunities for thepartnership to move into new areas such as providing accountancyservices for property developers, both at home and abroad. Ian feels that the partnership should set up its own subsidiary in India, enjoyingthe benefits of much cheaper accountancy staff and avoiding the costsand complications of outsourcing their core accounting services. lansees fee income growing to £2 million in five years' time. David has been asked by his bank to provide it with a business plan setting out how the partnership intends to grow and develop. Required: (a) Write a short report for Davidgiving the key features that you consider to be important and that youwould expect to see in the business plan for the Gould and Kingpartnership that David has to present to his bank. (15 marks) There is considerable evidence that small firms are reluctant to carry out strategic planning in their businesses. (b) What are the advantages and disadvantages for Gould and King Associates in creating and implementing a strategic plan? David Gould set up his accounting firm, providing accountingservices to small businesses, in 20X6. Within three years his fee incomewas in excess of £ 100K a year and he had nearly 100 clients most of whom had been gained through word of mouth. David recognised that thesesmall or micro businesses, typically employing ten or fewer people, werereceiving less than satisfactory service from their currentaccountants. These accounting firms typically had between five and tenpartners and operated regionally and not nationally. Evidence of poorservice included limited access to their particular accountant, poorresponse time to clients' enquiries and failure to identifyopportunities to save clients money. In addition bad advice, lack ofinterest in business development opportunities for the client and poorinternal communication between the partners and their staff contributed to client dissatisfaction. David has deliberately kept the costs of thebusiness down by employing three part-time accountants and relying onhis wife to run the office. David had recently met lan King who ran a similar sized accountingfirm. The personal chemistry between the two and complementary skillsled to a partnership being proposed. Gould and King Associates, subjectto securing the necessary funding, is to be launched in September 20YO.David is to focus on the business development side of the partnershipand lan on the core services provided. Indicative of their creativethinking is David's conviction that accounting services are promotedvery inadequately with little attempt to communicate with clients usingthe Internet. He is also convinced that there are real opportunities for thepartnership to move into new areas such as providing accountancyservices for property developers, both at home and abroad. Ian feels that the partnership should set up its own subsidiary in India, enjoyingthe benefits of much cheaper accountancy staff and avoiding the costsand complications of outsourcing their core accounting services. lansees fee income growing to £2 million in five years' time. David has been asked by his bank to provide it with a business plan setting out how the partnership intends to grow and develop. Required: (a) Write a short report for Davidgiving the key features that you consider to be important and that youwould expect to see in the business plan for the Gould and Kingpartnership that David has to present to his bank. (15 marks) There is considerable evidence that small firms are reluctant to carry out strategic planning in their businesses. (b) What are the advantages and disadvantages for Gould and King Associates in creating and implementing a strategic plan?

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a Gould and King Associates should develop a strategic business plan that outlines the purpose of the partnership the goals and objectives the strateg... View the full answer