Melmotte Ltd: Questions and Answers

This document provides answers to questions about limited liability companies, audits, leadership, cultural barriers, and marketing mix in the context of Melmotte Ltd. Topics covered include the definition and benefits of limited liability companies, the purpose of conducting audits, the differences between leadership and management, overcoming cultural barriers in emerging markets, and the marketing mix for a new product. The document also includes references for further reading.

Melmotte ltd

Table of Contents
2.2 Questions ...................................................................................................................................3
Question 1....................................................................................................................................3
a. ..................................................................................................................................................3
b....................................................................................................................................................3
c. ..................................................................................................................................................3
d....................................................................................................................................................4
e....................................................................................................................................................4
f....................................................................................................................................................4
f....................................................................................................................................................5
Question 2....................................................................................................................................5
a....................................................................................................................................................5
b....................................................................................................................................................5
c. ..................................................................................................................................................6
Question 3....................................................................................................................................6
a....................................................................................................................................................6
b. ..................................................................................................................................................6
c. ..................................................................................................................................................7
d. ..................................................................................................................................................7
Question 4....................................................................................................................................7
a....................................................................................................................................................7
b....................................................................................................................................................8
REFERENCES................................................................................................................................9

2.2 Questions
Question 1
a.
Limited liability company means an entity that limits a liability towards the total value of
an unpaid shares (Renz and Herman, eds., 2016). It is company that can open its own bank
account, purchase the property ion its own name and invest in name as the Limited Liability
company.
Sole trader Limited liability company
It is the business that is been controlled and
owned by a single person having unlimited
liability.
This company contains splitting of the
ownership into an equal number of the shares.
The liability is limited only up-to the unpaid
value of the shares.
Limited company Public Limited company
This type of company cannot quote shares on
the stock exchange.
However, PLC could quote its shares within a
stock exchange.
b.
The main purpose of conducting an audit is providing for an independent examination of
the final reports that increases credibility and value of the financial statements (Rothaermel,
2017). It helps in gaining the confidence of the users in respect of final accounts and also reduces
risk of an investor and the cost of the capital.
Investor needs an audit of the financial statement because it helps them in making
appropriate decisions and reduces the possibility of the fraud and an embezzlement within the
business. This induces and helps Grosvenor in making a potential investment in the Melmotte
accordingly.

c.
Benefit Drawback
Hetta would be achieving higher growth in
playing a joint role in an organization.
Her responsibility will be increased towards
the company and she could not be able to focus
other important tasks like work-life balance.
d.
An non-executive director is seen as the member of the board that do not have any kind
of responsibility in relation to routine management or an operations of an enterprise.
e.
2 Benefits of non-executive director
Experience- Hiring a non-executive director helps Melmotte Ltd in bringing an
experienced person which ensures that the decisions are been taken on the basis of real life
examples and solving the problems of the business accordingly. They work in several
environments that in turn bring for new thinking regarding particular services and the products.
Network- Non-executive director enables Melmotte Ltd in building a wide network of the
skilled and an influential people. This results in the company in attaining growing success on a
fast pace.
f.

f.
As per Company Act (2006) and European Commission, shareholders as well as
remuneration and nomination committee plays a significant role in setting salary packages of
sales director (Corporate Governance in the United Kingdom, 2019). Further, European
Commission advised that shareholders should have effectual control over director’s
remuneration.
In order to motivate Hamilton Fisker bonuses and other economic benefits can be offered
to him along with high salary. This in turn helps in improving the efforts of him and thereby
contributes in the achievement of goals.
Question 2
a.
Leadership Management
It mainly focuses on setting the direction and
in creating a vision.
It emphasize on assembling the goals of the
team and the company as a whole.
Leadership assembles the team and creates the
shared values.
On the other side management creates and
prioritize the task that need to be completed.
Leaders motivates each member of the team
and knows the skills.
Managers motivates and guides an individual
contributor.
Leaders adjudicate and resolves the conflict
within the work environment.
Managers assigns the task to an appropriate
team member.
b.
Decision making role- It is counted as integral role of the modern management as it
includes decision relating to determination of organizational as well as the managerial activities.
It is important for Hetta to choose the best action course from the alternatives in order to achieve
the goals effectively.
Planning- Under this role, Hetta maps out and organizes activities which are needed for
achieving a desired goal (Gopee and Galloway, 2017). In respect of planning role, she defines
goals, mission and the resources in order to achieve the targets.

Leadership- It acts as the crucial role within which Hetta seeks for doing unique things
based on its activity area, responsibility and the goals of Melmotte Ltd. It includes envisioning,
directing followers towards their visions and in ensuring execution.
c.
Building relationships- A candidate must be having an ability of developing better
relations with the co-workers and the clients in order to quality as a successful CEO.
Realistic Optimism- It is very important for the person to remain confident and not
arrogant in relation to their skills and in what they offers to their employees (Jelsma and
Nollkamper, 2017). For becoming a good candidate for CEO, an individual must possess this
skill for remaining aware and in confronting the challenges at the time of striving to audacious
goals.
Communication skills- As the CEO or a leader, a candidate must have strong and
powerful communication skill. It helps in effectively translating their respective views regarding
business challenges and using an action that are understandable to the all the members.
Question 3
a.
World Trade Organization is the worldwide international organization that majorly
focuses on rules of the trade in between different countries and helps the consumers and the
countries to expand its business into other countries (Ganguly, Chatterjee and Farr, 2018). The
site of this institution involves an information in relation to the latest news and the developments
on the trade across the globe. A useful topics of the trade on the website facilitates an
information about series of an issues like anti-dumping, textiles, custom valuation and the tariffs.
b.
Regional and the subculture differences- Within the emerging markets, there includes
important regional variations in respect of the consumer preferences and the conditions of the
market. Subcultures does not limits to the ethnic and the regional variations in the consumer
preferences and the market conditions.
Fails in adapting management practice across the cultures- For expanding the business
in India, Melmotte might be facing difficulties in adopting the appropriate management practices
as entirely different people has to be hired (Mancuso, 2015). The theories of the management,
practices and the models lays down with an assumptions that are culture specific.

Failing in determining new opportunities- Cultural barriers might results in missing
newer opportunities. European companies that had overlooked potential of particular developing
market, that fails to establish early presence in the market and leaves them unable in catching the
well known brand value in other foreign countries.
c.
In order to overcome these cultural barriers, Melmotte need to face realities of the new
market and developing the strategies as per the trend and the preferences of the consumer in the
new market place. It must seek for adapting new cultural environment by establishing the go-to
market strategy that could be applied in the several situations.
d.
The 3 main political factors that affects Melmotte in the India are tariffs, trade control
and taxation policy (Reid, 2018). Higher tariffs are imposed with changing government rules
regarding taxation and the trade agreements will be impacting smooth functioning of the
Melmotte's business as it becomes very complex for the firm to operate in compliance with the
changing taxation policy and impose of tariff on trade.
The three major social factors includes lifestyle, buying habits and disposable income
might influences the working of Melmotte. With the changing or evolving lifestyle of the people,
there buying habits or the purchasing power also gets affected along with low disposable income.
These factors lowers down the demand of the Melmotte's products as low income results in less
purchasing power.
Question 4
a.
Marketing mix referred as set of the tactics that an entity uses in promoting its product
and the brand in the market. 4Ps includes the product , price, promotion and the place in relation
to marketing the new product. For example-
Product- Melmotte is bringing a new product named as Juliet in its perfume range which
is been made with blend of sweet and strong essence.
Price- For gaining the larger market share and the customer base, Melmotte should adopt
penetration pricing strategy where in beginning the prices set as lower which is affordable to the
consumers.

Place- The product will be supplied within overall UK that is in all the countries and lso
plans for supplying the new perfume across the world in different countries.
Promotion- Melmotte will make use of various marketing tools such as advertisement,
sales promotion, publicity, social media in order to generate higher revenue and increasing the
sales. It is been done to attract more and more customers by offering special discounts and free
coupon offers.
b.
Advertising- It is the marketing tactic that includes paying for the space in promoting the
product, cause and services (Denhardt and Baker, 2018). Through this, Melmotte could be able
to reach more and more people who shows willingness in paying for the company's services and
the products.
Benefit Drawback
It leads to increased sales and market
expansion of the product along with providing
suitable education to the customers.
An entity has to spend larger amount that in
turn increases the product cost.
Sales promotion- It means the marketing strategy in which product is been promoted by
using a attractive short term initiatives for stimulating demand and increasing the sales.
Benefit Drawback
It seems to be effective in achieving the quick
boost to the sales.
It might damage the brand image as products
are offered at discounted value.
Publicity- It is an activity in relation to increasing awareness about the person, service or
the product in attaining an attention of crowd.
Benefit Drawback
This technique helps in opening door fro more
and more opportunities and builds relationship
with the companies that has high net worth.
This tools damages the brand equity in the
longer period due to bad publicity.

REFERENCES
Books and journals
Denhardt, R. B. and Baker, D. L., 2018. Five great issues in organization theory. In Handbook of
Public administration (pp. 121-147). Routledge.
Ganguly, A., Chatterjee, D. and Farr, J. V., 2018. Evaluating barriers to knowledge sharing
affecting new product development team performance. International Journal of Innovation
Management. 22(06). p.1850048.
Gopee, N. and Galloway, J., 2017. Leadership and management in healthcare. Sage.
Jelsma, P. L. and Nollkamper, P. E., 2017. The limited liability company. LexisNexis.
Mancuso, A., 2015. Form Your Own Limited Liability Company: Create An LLC in Any State.
Nolo.
Reid, W., 2018. The meaning of company accounts. Routledge.
Renz, D. O. and Herman, R. D. eds., 2016. The Jossey-Bass handbook of nonprofit leadership
and management. John Wiley & Sons.
Rothaermel, F. T., 2017. Strategic management. New York, NY: McGraw-Hill Education.
Online
Corporate Governance in the United Kingdom. 2019. Online. Available through:
<https://www.lexology.com/library/detail.aspx?g=c0fc3533-fff0-4f1d-8229-6be9728bcf93>.