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Strategic Entrepreneurship : Assignment

   

Added on  2021-06-15

8 Pages1845 Words14 Views
Business DevelopmentData Science and Big Data
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Running head: STRATEGIC ENTREPRENEURSHIPStrategic EntrepreneurshipName of the StudentName of the UniversityAuthor Note
Strategic Entrepreneurship : Assignment_1

STRATEGIC ENTREPRENEURSHIP1Exit strategyThe business will be regarding the cleaning services where the customers will bebooking the service through their mobile phones. The performance of the business will bedepending on the level of services that will be provided by the company. It will depend on thecustomers who will be booking the services at a faster rate so that the company can performin a better manner in the Singaporean market (DiTienne, McKelvie & Chandler, 2015). If the company cannot perform in a proper manner in the market, the company willhave to exit so that it does not suffer any losses. There are several exit strategies that can betaken up by the company such as the process of liquidation, acquisition, Initial PublicOffering (IPO) and buyout by the management. The acquisition process is where thecompany will be taken over by another services organization so that it can perform underthem. This can be done when the buyer company has a good presence in the market and canmarket the services of the newly acquired company as well. The process of IPO may not beused by the company, as it does not have any franchises and are not listed in the StickExchange of the country, since it is a start-up company (Wennberg & DeTienne, 2014).The other exit strategy that the company may consider is the buyout process by themanagement. This can be done when the employees have a better knowledge of the culturethat is being followed within the organization. The goals of the company also needs to betaken in to account so that it can result in the employees seeking a stake in the company. Theprocess of liquidation is that the company needs to sell off its assets so that the banks can beable to recover the loans that has been taken up for setting up of the business organization.This will also help the company in terminating the services of the organization and shuttingdown of the business completely (Prajogo, 2016).
Strategic Entrepreneurship : Assignment_2

STRATEGIC ENTREPRENEURSHIP2The company will follow the liquidation process as an exit strategy since it is a newlyformed company. If the company does not perform in a proper manner in the market, it has toliquidate its services in the market. The company has to sell off its assets so that the moneycan be recovered, which will help the company in paying the loans of the bank. The rest ofthe money that will be left to the company will be given as salaries to the employees and themoney will be divided among the founders in their ration of sharing the profit (Schoenberg,Collier & Bowman, 2013). The company will take in to consideration a loss of 5 percent in the first year of itsoperations, which has been written down under the contingency plan in the books of thecompany. This would allow the company in studying the market in a proper manner, as it is anew company and there are many competitors in the Singaporean market. The business cannot be transferred to another company, since it is a new company andthe shares of the company are all under the partners. During the time of liquidation, thecompany will pay off the debts and the remaining amount that will be left after realizing theassets will be distributed under the profit sharing ratio of the partners (Kotabe & Helsen,2014). Operational overviewThe company will be located in Singapore and the advantage is that the cost of labouris very cheap, as the economy is developing in nature. The rate of taxes in the country is alsoflexible and the company has to make a profit of above $30,000 so that they are eligible topay the taxes. This results in less pressure on the new companies, as they do not need to paythe taxes and invest the amount in their business as well (Boons et al., 2013).
Strategic Entrepreneurship : Assignment_3

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