Introduction to business

Section A

Read the case given below thoroughly and answer the questions.

After passing from college Ali thought of doing a job then his grandfather suggests that we already have two furniture stores and both are good and profitable so why do not you join us and help us to improve the business. The name of the business is AL Mahal Furniture. They are earning high profits already. When his grandpa chosen to enlarge the enterprise and construct three more stores, Ali understood that he would require a large portion of the investment to get the production started. Ali indicated that his grandpa thought of arranging the capital by offering shares /stock in the company to just not many people who are known to his family and especially not to the general public. However, Shareholders should know that in these business terms they need to report their profit as well as their loss as individual owner income tax type due to that this firm isnt treated as a separate taxable entity. His grandfather filled the article of the corporation with the government. He sold 1000 shares of stock to 20 people and kept 1500 shares. Now in a firm number of owners are 21 (20 new and 1 her grandfather). All holders are safeguarded from private legal responsibility for business claims or liabilities. For a new firm, they hire 10 more employees and their objective is to increase the value of the share and provide good quality furniture to all buyers.

Questions:

a) Who are the stakeholders of Al mahal furniture? Explain the responsibility of al mahal furniture towards its stakeholders.

b) Identify Al mahal furnitures form of business ownership and give reasons why to start such type of ownership.

c) What goals of the business have been mentioned in the above case justify your answer with facts of the case.

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Question 2

Section B

Read the case given below thoroughly and answer the questions.

After completing her B.Tech with business specialization, Fatima got a chance to work as an HR manager in an electronics service company, a firm of 100 employees. She was hired by Majed, the General Manager of the company who controls and supervises all managers (HR, Marketing, and finance manager of his company). He informed her regarding the rules and regulations of the company as well as her profile. He told her very clearly about the work that she has to maintain severe secrecy regarding worker payments. He also told that he dismissed the earlier HR manager for violating that secrecy by discussing workers incomes. She was also officially introduced to Juma, the CEO, who told her to see him if she has any queries or difficulties. Both Majed and Juma made her feel greeted. Majed must report Juma (CEO) for all the functions he performs. Fatima was very much happy with her job and work. After four months, Fatima was a little shocked to know that a sales staff called Suliman who is the brother of Majed who reports to Shaima (marketing manager) takes more commissions than other staff. Then she got to know that he is appreciated several times because of his outstanding performance by the Juma the CEO himself. Also, they told her that Suliman is a good friend with Juma.One day Majed gives Fatima the work tickets for the sales staff for the upcoming week where each work ticket has a different level of a task for all sales staff. The sales staff are to take whatever ticket is on top when they finish the job they were working on came to duty. Another day she steps in Majeds office to say hi, she realizes he is giving separate work coupons (with high amount task) to his brother Suliman which is not given to other sales staff who deserve commissions as well!! Majed saw her and he warned her to keep her mouth shut or he fire her. Fatima is very much tensed because she realized that Majed is giving the easier, more amount work to his brother. She was scared because she is new to the company and it is her first job and still not a permanent employee of the firm. Then she discusses the issue with Shaima, marketing manager, and Khalil(finance manager )of her company but they told her to keep quiet. She felt bad and wonders what she should do.

Questions:

a)Do Do you feel the social responsibility of the business was followed in the above case? If yes why? Explain in detail with whom it has not been fulfilled?

b)Explain in detail in which management functions are performed in the case. Justify your answer with facts given in the case.

c) Draw the organizational structure based on the positions given in the case and specify the level of management of each position .

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Question 3

Section C

Read the case given below thoroughly and answer the questions.

A leading sports shoe brand headquarters in Germany has more than 80 branches all over the world. It produces sports shoes, clothes, hats, socks, backpack, and related sports accessories for all genders and all age groups. This famous brand is present in different football clubs and shops all over the world. It generated huge revenues that exceed billions of dollars. Not only this, but they also keep innovations of different new products for athletes with high quality that help them improve performance. Moreover, it gives priority to efficient processes and more promotion so that they can increase sales and market share consequently. Their shoes are more affordable and have lower price compare to its main leader competitors. This is called the competition-based pricing strategy which the company adapted to attract more customers and continue surviving with this big competition. They also provide discounts and loyalty programs. Like other businesses, the sports shoe company trying to reach its target markets through different communication means like its own websites, social media, and intensive advertisements to reach larger numbers of countries. For example, it sponsored football team players with sport clothes. This helps the company grow faster. However, it faced some challenges which affect the success of any brand. For example; some people are not able to afford to buy this brand so they go for duplicate products that are cheaper. This might leads to decrease the sales and threaten the growth of original brands like this brand. Another challenge is when a competitor raised a complaint and attacks this company in a patent case claiming that it copies the features which allow the shoes to be very light and helps run faster with convenient fly special knit. Therefore, the company should study and analyses the environment very carefully to overcome any challenge that might hinder its progress in the market.

Questions:

a) Explain the marketing orientation approach the shoe company is applying in the above case.

b) Discuss the marketing mix as highlighted in the case.

c) Explain two external business environmental forces affect this business operation.

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Question 4

Section D

Read the case given below thoroughly and answer the questions.

Sara has been working at a handicrafts factory for about two years. One day she had a fight with her production supervisor Nasser who is responsible for 50 workers under his supervision. Nasser was under stress and found it very difficult to control quality with this big number of workers. Sara made a mistake while packaging the products so he shouted at her in front of others. Then she told that she has more working hours, more than one supervisor gave her work at the same time and they are not able to focus. She was angry blaming him for no proper guidance. The supervisor thought to fire Sara for this behavior of being rude to him. But the company has a policy of avoiding unemployment claims, so he cannot fire her for one cause. Nasser cut Saras working hours and reduce it gradually form 40 hours a week. Then cut it to 30 hours for a couple of weeks tell 15 hours or less after that, hoping she will give up and quit by herself. He was criticizing her most of the time and wrote things she didnt do in her report to push her to hate the work and leave the job. Finally, she quit the job. Other workers felt bad about this action purposely made by the supervisor. They were not happy in the work and they hate Nasser. The performance went down and the quality was affected. Workers want to complain but were afraid of him. Omar who is the production head found a letter in his office. One worker wrote how Nasser was bad with them and not motivating them to work with positive attitudes because he was aggressive. He conveyed the same complaints Sara told to the supervisor so that Omar do something to solve the issues.

Questions:

a) Identify the managerial level of Nasser and Omar. Explain by your own any three functions of each of them in detail.

b) Do Do you think Nasser deserves this managerial position? Why?

c) Explain if the production department mentioned in the case has good organization structure principles or not.

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Question 5

Section E

Read the case given below thoroughly and answer the questions.

An American fast-food company is one of the most popular fast-food chains all over the globe. It is also investing and trade in the stocks market having limited liability advantage features. It offers different types of fast food meals like different types of hamburgers and sandwiches with different bread types, servings of mixed greens or salad dishes and snacks with refreshments, pastries, and shakes, and light meals for breakfast. It has branches in almost every city in all over the world right of the highway. It is popular for its fast service for customers. It is very easy to order from outside with a microphone, you can go inside choosing from a very big screen even if you do not know the language pictures are helpful or you can order a pressing machine without waiting for the queue. It offers different pricing like for example 1.5 Riyal only menu and low prices based on some selected categories offering more than one product as a reduced price. When promoting their products, they used different latest communication means for advertising, provide delivery, loyalty points...etc. However, there are some environmental factors that might affect the performance of this global restaurant chain. To be successful in this fast-food chain, it is good to be aware of continuous rules and regulations of different health and diet controls that are put forward by the nations in which it runs its operation. Another challenge is the tax, duties, and charges forced by governments on the fast-food industry that can influence productivity, and consequently the profits decreases. Besides, high unemployment rates challenge and insecure economic conditions can lead to decrease the wealth of this company. Unless individuals have sufficient expendable incomes, they are not able to spend on junk fast food. But, the current drift of a youthful workforce which is diverted towards fast meals anywhere you go is the main factor for this successful business progress.

Questions:

a) Identify and explain the type of factors affecting this business operation as mentioned in the case.

b) Identify the form of this business ownership and explain three advantages of starting this form of business?

c) Explain the marketing mix as highlighted in the case.