Paper on Problems Facing Triple-A Company
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Added on 2020-05-11
Paper on Problems Facing Triple-A Company
Added on 2020-05-11
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Problems Facing Triple-A Company1Research: Problems Facing Triple-A CompanyNameInstitutional Affiliation
Problems Facing Triple-A Company2IntroductionIn a world that is fueled by money, engaging in successful businesses is the perhapsone of the greatest survival tactic one can have in today’s economy. A business is an entitythat brings various parties with a common interest to work together to achieve a certaingoal[ CITATION Art03 \l 1033 ] and make profits.The sole purpose of most private sector businesses apart from the satisfaction of theneeds of the society and that of the entrepreneur is to make profits[CITATION Ima14 \l1033 ]. If a business, which can also refer to firms and companies, is not making profits as itought to then that business is considered to be failing. Businesses are vital to an economy asthey are the drivers of the economy[ CITATION Reb12 \l 1033 ]. The success of a business is dependent on a lot of factors which can either take abusiness to its break-even point or it can result in its liquidation or closure. Therefore, it isvery important to have both short and long-term plans before embarking on a businessventure. This plan should include the description and purpose of the business/company, whoare the competitors and how to deal with the competitors, what is the expected sales orreturns for a certain period, and what resources are required to start operations[ CITATIONBar06 \l 1033 ].This paper will examine the problems that might face a company in its operations thepossible solutions to these problems. The researcher will use Triple-A Company as a casestudy in seeking to find out the most likely reasons for its problems. Triple-A Company hasbeen having some problems and might be at risk of closure in the next two years. The paperwill, therefore, dissect the possible reasons for this outcome and how to prevent liquidation inthe next two years. Research ObjectiveTo find out the possible problems affecting Triple-A Company and the solutions to theproblem(s)Research QuestionsWhat are the problems that might lead to the liquidation of Triple-A Company?
Problems Facing Triple-A Company3What solutions can be implemented to prevent the liquidation of Triple-A Company andensure its sustainability?Literature ReviewType of companyMost companies are formed with the intent of making or generating profits to theowner(s). A company can be of various types; it can be a partnership, a public limitedcompany or a private limited company[ CITATION Had16 \l 1033 ]. The differences dependon the level of liability. Partnerships have unlimited liability meaning that the owner and thebusiness are treated as one entity. These in simpler terms mean that if the business has debts,these debts affect the owner personally. Corporations in their nature are separate from theirowner(s) thus they have limited liability[ CITATION Ale14 \l 1033 ].Triple-A company is a company that has the highest credit ratings assigned by creditrating agencies to their issuer’s bonds. In America there are only two Triple-A companiesleft, that is; Microsoft and Johnson & Johnson before ExxonMobil downgraded in2016[ CITATION Luc16 \l 1033 ].However, the number of companies claiming the Triple-A status has dwindled overthe years from around 60 in the 1980s to six in 2008 and now only two remain.The structure of the companyMost organizations use a hierarchy form leadership where there is an overall leaderand several departmental leaders who all answer to the overall person in charge. Thedifferences can also depend on the size of the organization.Companies, depending on their formation and purpose, differ. Some have a board ofdirectors, as in the case of a public company, others might have one director as in the case ofa private company. Others like partnership there is co-sharing of leadership while a soleproprietor plays the role of the leader of the organization and the employee aswell[ CITATION Bus10 \l 1033 ].The hierarchy form of organization has one leader at the very top. The leader isbranded the name Chief Executive Officer (CEO) or Managing Director. Under the CEO aredepartmental heads such as the finance director or the marketing director. Under these
Problems Facing Triple-A Company4departmental heads are now the rest of the employees who may also have their leaders orsupervisors within the department. This structure creates a path through which informationcan be passed through vertically either up or down the chain[ CITATION Jac15 \l 1033 ].Factors Affecting Business SuccessThere are certain key elements that help in analyzing the success rate of a businessorganization. These elements or factors can be placed into three broad categories: thecharacteristics of the entrepreneur, the characteristics of the business itself, and contextualvariables[ CITATION Sto94 \l 1033 ].1.The characteristics of the entrepreneur. This factor includes elements of age, gender,level of education, and work experience. Several research studies on this subjectreveal that the characteristics of age, gender, education, and work have a direct impacton business success[ CITATION Kol96 \l 1033 ]. Individuals of a much younger ageof between 25 and 45 are proven to be the most business-minded and highlyentrepreneurial as compared to individuals who are above 45 years[CITATIONPLR01 \l 1033 ]. In regards to gender, research shows that women shy away fromentrepreneurship as compared to men who show more interest[ CITATION TMa99 \l1033 ]. Work experience as well as level of education particularly on entrepreneurshiphas an impact on how individuals run and operate their businesses. More educatedindividuals have higher odds in business as compared to those without[ CITATIONCha00 \l 1033 ].2.The characteristics of the business. The nature and character of the business itself candetermine the sustainability of the business. In this context, we analyze how theorganization started, how long has it been in operation, the size of the organization,and the capital. The life of a business relies heavily on the owners of that business andthe goals that drive these owners. Therefore, in businesses such as sole proprietorshipsand partnerships, personal factors such as family can affect the survival of thebusiness[ CITATION DSm95 \l 1033 ]. Similarly, the length of which theorganization has been in operation can determine the success of the business. Abusiness enterprise that has been there for quite some time has an already establishedmarket share in addition to all the lessons learned from past mistakes[ CITATIONSKr03 \l 1033 ]. The same applies to the size of the enterprise. The larger theenterprise (which is also dependent on factors such as time), the more stable the
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