Business Management Techniques: Assignment Solution - BMT TMA 1

This document presents a comprehensive solution to a Business Management Techniques (BMT) assignment, specifically TMA 1, likely from Teesside University. The assignment addresses key concepts in business management, including the process of forming a public limited company, detailing the requirements and the components of the Memorandum of Association (MOA). It analyzes the advantages of mergers for different types of companies, such as oil companies, clothing retailers, and steel works. Furthermore, the assignment explores the structure and departments within an automotive industry, focusing on the roles of the management and administrative, sales, service, and parts departments. The solution provides in-depth answers to the questions posed in the assignment, offering valuable insights into various aspects of business operations and strategy. This resource, available on Desklib, serves as a valuable study aid for students studying business management.

Running head: BUSINESS MANAGEMENT TECHNIQUES
BUSINESS MANAGEMENT TECHNIQUES
Name of the University
Name of the student
Author notes

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Table of Contents
Assessment 1..............................................................................................................................2
Assignment 2............................................................................................................................11
Assignment 3............................................................................................................................13
Assignment 4............................................................................................................................15
References................................................................................................................................19

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Assessment 1
Question 1
As an inventor does not have any legal right to raise capital directly from the general
public so it can not raise fund for the development of his product. where as a public company
has the legal right to raise fund directly from the public and can utilize the fund for the
development of the product. The inventor has to form a public limited company and then
raise fund from the public to make development in its products (Lu 2016).
Question 2
Before taking the decision of setting a new plant for car manufacturing a Japanese
company will mainly consider the labour cost that it has to pay for carrying on its operation
in United Kingdom. If the Japanese’s company found that its is possible to get skilled labour
at cheap price then it will be easy for them to take the decision. In addition to that the
availability of the raw materials is also required to be verified, if the raw materials required
for the construction of the car. If there is unavailability of raw material then the Japanese
company may have to import raw martyrial which may attract import duty on bringing raw
materials from japan. For this reason, the company has to check whether the government of
UK will give any relaxation in the import duty or not (Oats and de Widt 2019).
The Japanese company has to analyse the market to understand the competitive ness
in the British market and the demand of the cars among the consumers in Britain. In addition
to that the Japanese company should also consider the availability and price of land in Britain
where the company will set the factory.

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Question 3
List briefly the actions required to form a public limited company
To form a public limited company as per the UK law and some commonwealth
jurisdictions. The public limited companies are also considered as limited liability company
the minimum share capital of the company will be 50000 and the shares should be sold and
traded freely in the recognized stick exchange (Ahmad Kodwani and Upton 2016).
A public limited company should add the words PLC after its name. although some
public company are formed under the special legislation and these organizations are excluded
from the obligation to affix the word PLC after their name.
The PLC’s that are established in the in Britain are require to register with company’s
house which is an agency of the department for business innovation and skills. It is essential
to have minimum one director to get the status of public limited company. There are some
eligibility criteria to become the director of a public limited company, such as the director
should not subject to a restriction order for bankruptcy, or the age of the director should not
be more than 70 and less than 16 (Halbouni and Yasin 2016).
The members of the PLC’s should not hold the entire number of shares and should
give there consent to sell some part or all the shares at the time of its registration. the blame
of all the members of the company should be mentioned in the memorandum of association,
who have purchased the shares of the company and the number of shares purchased by each
member should also be mentioned in the MOA. These members who agreed to purchase the
shares are considered as subscribers and the shares are classified as subscribed. The public

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limited company will allot shares the minimum b\value of which should be 50000, and the
quarter part of which should be fully paid up.
A memorandum of association has seven parts thee are name clause, registered office
clause, objective clause, object clause, liability clause, capital clause and the association
clause. The MOA is a legal paper that is essential for setting up a public limited company.
The main purpose of the MOA is to briefly describe the relationship of the public
limited company with its stakeholders. The MOA is considered as the constitution of the
organization. The public limited companies that are situated in United Kingdom requires
MOA.
Name clause
The name clause contains the proposed name of the company the following points are
included in the name clause
The name must end with the suffix limited it is a public company,
There should not be similarity with the name of any other company
It can not allude to the newly formed organization that is doing the business of a company
that is already doing business.
The name should not be misleading in any sense.

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Registered office clause
The clause of the registered office states the name of the province or state where the
organization’s registered office is situated. The main points that are included in the registered
office clause are stated below:
From the physical location of the company it will be possible to know that under
which jurisdiction of the registrar of the company will fall and under which court the legal
matters of the company will be judged.
The company’s residential status is also mentioned in the memorandum of accounts.
The full address of the registered office will be mentioned in the MOA.
Objective clause
The objective clause is considered as the most imp [orthant clause of the memorandum of
association
The objective clause contains the limits and scope of the operations of the company
It specifies the area of activities of every member of the company and states that in
what way the capital of the members will be utilized.
The object clause provides various clauses which will protect the fund of the
shareholders and provides the guidelines that are to be used to utilize the funds for the right
purpose in order too o prevent the misutilization of the funds (Oats and de Widt 2019).
Object clause

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The object clause is used to explain the reason for the formation of the company. It is
not legally possible for the company to do any kind of business that is not specified in the
object clause. The following points are included in the object clause:
After its incorporation what type of business will it do should be listed in the object clause
The incidental objects that will be required to do the main object
Other objects that are not mentioned in the main object.
The object should be legally viable
The objects should be made in such a manner that it can protect the interest of the public.
The clause should not contain anything that is against the law of the country.
Liability clause
The liability clause provides the details of the total capital that is raised by the
company. This is also known as the authorized capital. Companies are not allowed to
generate money which exceeds the amount that is mentioned under the authorized capital.
The process by which the company will be divided into the equity shattered capital and the
preference share capital is also required to be mentioned in the liability or capital clause. The
number of shares that the company keep in the equity capital and the preference shares are
also required to be mentioned in the memorandum of association (Caramanis and BU 2018).
Association clause
The association clause describes that any member of the company who is authorized
to sign at the end of the memorandum of association will be associated with the organization
that is formed by then organization. In case of a public limited company the MOA should be

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signed by at least seven people. In case of private company, the memorandum of association
should be signed by two members. The signatures should be made in the presence of a
witness. There should be third party who will be present as a witness and the members will
not be allowed to act as witness. the address and occupation of every subscriber and the
witnesses must be they’re in writing (MAHESHWARI and MAHESHWARI 2016).
The purpose or objects clause or the clause number 3 is the most essential clause of
the memorandum as with out the object clause it will not be possible to set the busies as the
object clause contains the details of the operations that the company will do. If the operation
of the business is not clearly mentioned then the company will be legally void and it will
north be possible for the company to carry on operations (Sukalkar and Warkad 2017).
Question 4
Oil company
If an oil company merges with another oil company then both the companies can
enjoy some benefits of working together. In the oil industry highly, advanced infrastructure is
essential so the company which has advanced infrastructure facility can provide assistance to
the company which does not have highly advanced infrastructure facility. In addition to that
oil company requires huge amount of funds and resources that is essential to carry on the
operations without having any obstruction (Labro 2019).
Clothing retail company
By merging or taking over another company in the clothing retail company one the
major benefit one company can avail is that by acquiring another company it will be possible
for the acquirer to capture the market and customer base of the acquired company and taking

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a competitive edge over the other market participants. As the in the clothing rental industry
there are serval number of market competitor so if two company merges then it will be
possible for these companies to capture a larger share of the market and to expand their
customer base (Baigrie and Coetsee 2016).
Steel works
In steel works it is essential to have highly skilled labours which is not easily
available, by merging with another company the acquirer will be able to utilize the labour of
the acquired company from which the acquiring company will be able to control the cost and
increase the profitability.
Question 5
Industry in which currently working
Automotive industry
The major departments in the automotive company are management and administrative
department
Department of sales, the service department and the parts department
Management and administration department
The management and administrative department look after the daily productivity and
the management of the affairs of the business. The operations in the automotive industry is a
huge and complex process so to mange the day to day affairs it is essential to manage such
affairs and keep the operation process running. the individuals who have high degree of
integrity and managing skills can handle this kind of department.

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Department of sales
Selling a vehicle is a tough job and the entire revenue is dependent upon the sales
department. the sales pensioned should possess knowledge not only about the feature of the
car but also about the insurance policies and the finance options that the client may want to
take for buying a car, The sales personnel should also provide information about the different
state laws and the federal laws which is related with the sales of the car (Kumar 2017).
The service department
The service department is another most important department in the automotive
company. Cars contain several complex parts which may get damaged or have manufacturing
defect which can be repaired or changed by the employees of the service department. it is
essential to have an efficient service team which will provide after sales service and satisfy
the customers if they face any problem with the technical parts of the car. The service
department should consist of efficient technicians who have relevant skill and knowledge to
solve any technical problem of the car (Chatzivgeri et al 2017).
The parts department
The service department and the parts department should work with collaboration. The
service department will require different parts that will be required to replace or repair any
parts of the car. The professional that are working in the department of the inventory or parts
order and majorly engaged in supplying the parts to the technicians or engineers who used to
work in the service department.
All the department of the automotive sector works with collaboration with each other
as all the departments are linked with the performance of another department. the entire

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performance of the company depends on the performance of the technicians, sales personnel
and on the management and administrative department (Shekar and Karmokar 2016).
Question 6
The role of the engineering department is to serve technical support on the
improvement of the projects, the range of services varies from development of concepts by
improving the engineering design, managing projects and inspection of construction works.
The engineering department plays an important role in framing the plans regarding how to
execute a project and make the design based on which the project can be structured. The
engineering department monitor all the technical affairs of the production process and suggest
necessary advice that are required to improve the quality of the products. The design of any
product is made by the engineering departments and if any mistake is detected in the process
of production it is rectified by the engineers (Dharmadhikari 2018).
Assignment 2
Question 1

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Question 2
It is difficult to interpret simulation results from the what if analysis and for risk
analysis interpretation of simulation results is very essential, this is the main reason why what
if analysis is not appropriate for risk analysis.
Question 3
i) Purpose of marginal costing
The purpose of marginal costing is stated below
Ascertainment of cost
Marginal costing is not only used to record costs but also to prepare report based on
that records. Marginal costing help to classify cost in to two categories these are fixed and
variable, which can be used to ascertain the cost easily (Haque, 2018).