Cameron balloons might consider expanding the business by buying more factories if the popularity of balloons increases and if the popularity decreases they can sell of the factory that they already have.
Ownership
What type of ownership does Businesses 1 have? (Explain the type of ownership.)
Cameron balloon is a public private limited company. This because Don Cameron wanted the business himself but be able to invite different shareholder in the business.
How did you find out what type of ownership it has? (Say how you researched this – was it through information online, through interview, or through printed materials?)
I find out this information by the Internet and going through the presentation that my teacher had set out on the computer.
What information gave you a clue about the type of ownership?
The company name Cameron balloon ltd has the ltd at the end of the name this is most for meaning private limited company.
What is meant by 'liability' and what sort of liability does/do the owner/owners of this business have? Explain what this type of liability means.
Owners can only lose their investment even if the company has huge debts.
What happens if the business fails? Include in your answer an explanation of what would happen to the various people who have an interest in the business. Also say what the official name is for this sort of business failure.
Owners can only lose their investment and may lose profit. Company can also become bankrupt and may have to put their factories on sale.
Why do you think the owners chose this type of ownership for Businesses 1?
Owners that buy a public limited liability Companies because they can only lose their investment even if the company has huge debts. I have listed some more ideas why people might buy a private limited company.
∙Easy to set up and give a personal service
∙Owner are independent – can make quick decisions
∙Minimum of paperwork
Suggest two other forms of ownership that might have been appropriate
Private limited company because it is easy to set up and still private,
Easier to raise capital can borrow from the bank.
Partnership suitable for professional groups with 2 people or more, I have listed more reasons why below.
∙Easier to raise capital ∙Problems/ideas can be discussed
∙Greater range of skills/expertise ∙Cover for holidays/sickness
Explain the advantages of being in a Partnership
The reason people have a partnership based business is because they can raise capital easier and because their more then one person they discuss can problems/ideas. (More reason listed below)
∙Greater range of skills/expertise ∙Cover for holidays/sickness
What are the disadvantages of being in a Partnership?
The drawbacks in a partnership based on a company are that you and your partners in the business may have disagreements in a decision or action and all profit that are made from the business is shared between you and your partners. (I have listed more reason below).
∙Decisions/actions legally binding on all partners
∙Death of a partner means share needs repaying
What are the disadvantages of being a Public Limited Company?
The drawbacks in a public liability company is that you have many regulation to comply with meaning you must follow all the government recommended policies and original owners may overall lose control of the business because people may invested in most of the share in the business. (I have listed more reason below).
∙Accounts (and problems) are public knowledge
∙Shareholders may sell shares if dividends poor
Do you think that the owner was right to choose this form of business ownership, or would another form of ownership have been more suitable? Give reasons for your answer
I think that Cameron balloon had the Wright idea by making the business a private limited company reason why because you are able to keep the business to your self but invite different shareholder in the business.
Describe the location of Businesses 1 & 2 Balloons.
(On the website, you will find information that tells you where Businesses 1 & 2 is located in the UK, and why. You could look at the location on a map to see if you can work out any other reasons for its location.
There is a some space so if the business needed an extension they could have it because of the space they have around them and the other reason that it was located their because it is close to the motorway and they are close to the docks and so they can receive raw material quicker.
Explain how the location of Businesses 1 is either an advantage or a disadvantage when dealing with:
The disadvantages is that they have to take environmental factors in to count like disrupting the community environment by building roads and building this did not allow for expansion and also made transportation and the use of machinery difficult and there is more then one company that is producing hot air balloons and will may attract your customers so Cameron balloons will have compete by producing goods with accurate labelling and by making sure that the design process takes environmental concerns into account then the other company.
The advantages
There is a lot of space around the company so if the business needed an extension they will be able to because of the space they have around them and the other reason that it was located their because it is close to the motorway and they are close to the docks and so they can receive raw material quicker.
(You must decide whether the location is providing an advantage or a disadvantage and say why you think that this is the case. You should explain each aspect as fully as possible. Consider factors such as transport, customers, raw materials and specialist labour as well as local, national and international factors.)
The disadvantages is that they have to take environmental factors in to count like disrupting the community environment by building roads and building this will affect the business when expanding the business and this also makes transportation a problem because of the lack of roads and the use of machinery and number of people will difficult to work in and there is more then one company that is producing hot air balloons and will may attract your customers.
Explain how well Cameron Balloons has responded to changes in:
* Competition
* Economic conditions
* Environmental factors
(Explain how you think it has responded (or suggest responses that might happen if certain changes took place) and say whether location has been a significant factor. Explain what other factors you think have, or have not, been significant, with reasons.)
Functional Areas
Explain the main functional areas of a business, and say what activities they would normally carry out
Show how Businesses 1 & 2 is organised. Explain how Businesses 1 & 2’s deals with each business function, what area or person it is allocated to, and why you think that it has been organised in this way.
Explain what jobs or tasks are carried out by each functional area, and what the major job titles and responsibilities are
Businesses 1 & 2 uses Information Technology (IT) in a number of different ways. Explain how it uses IT in at least two different functional areas. (You should look at the main uses of IT both within functional areas and between functional areas)
Explain how functional areas work together (you should give examples) and how they can use IT to make this more efficient. Explain how the efficient working of the functional areas helps the business to reach its aims and objectives
Suggest ways in which the efficiency of the functional areas could be improved.
(Suggest possible improvements, both using IT and not using IT, that could help the functional areas to work together more efficiently.)
Explain how your suggested improvements might help Cameron’s to achieve its aims and objectives.
(Refer to Businesses 1 & 2 ' aims and objectives and link this to your suggested changes. How could your changes help to achieve the aims and objectives?)
Who are the key customers of Businesses 1 & 2?
(Find information about Businesses 1 & 2’s main groups of customers, and which market segments Businesses 1 & 2 therefore target. Explain why you think they target these customer groups.)
External Factors
Who are the key competitors of Businesses 1 & 2?
(Find out about Businesses 1 & 2’s main competitors and what Businesses 1 & 2’s own position in the market is. Try to find out about and explain what other sorts of competitors Businesses 1 & 2 might face – some perhaps less obvious than the businesses that are given.)
Explain the ways in which Cameron’s competes with its competitors.
(You should explain about both price competition and non-price competition. First explain how a business could choose to price a product and the methods by which it could compete without using price. Then investigate what Cameron Balloons actually does.)
How successful is Cameron Balloons at dealing with competition?
(Describe which markets or market segments are the ones where the business faces the most competition, and how it has responded to that competition. Explain how successful you think it has been and on what evidence you base your conclusions.)
Economic factors
Explain what is meant by 'economic factors'. Outline the main economic factors that affect all businesses.
(You should list the main economic factors that affect businesses, and say how they might affect the business either by affecting its market, or the business itself. Give examples of how each factor could affect the business.)
Explain the main economic factors faced by Cameron Balloons.
(You should explain how certain factors are more important to this business than others, and explain why this is the case. Does the business export or import a lot, for example; are its customers particularly hit by price rises; is it a business in an industry that suffers from heavy taxation? These are just a few possibilities. You should give as much detail as possible.)
Consider the main changes that can take place in an economy. For each of these changes, explain how Cameron Balloons would be affected, and how it could respond.
(You should explain how each major change that takes place in the economy would affect the business, either through affecting its customers, its processes, its suppliers, or any other related bodies.)
Explain whether the location of Cameron Balloons has any significance when dealing with changes in the economy.
(Explain where Cameron Balloons is located and say how this helps or hinders it when coping with changes in the economy.)
Environmental Factors
Explain what is meant by 'environmental factors'. Outline the main environmental factors that affect all businesses.
(You should list the main environmental factors that affect businesses, and say how they might affect the business either by affecting its market, or the business itself. You should give examples of how each factor could affect the business.)
Explain the main environmental factors faced by Cameron Balloons.
(You should explain how certain factors are more important to this business than others, and explain why this is the case. Does the business rely heavily on road transport; does it produce toxic waste; does it have to use raw materials that are in short supply; how efficient – and environmentally sound – are its processes? These are just a few possibilities. You should give as much detail as possible.)
Outline the main legislation that protects Cameron Balloons and its customers. (Give details of the law regarding environmental and consumer issues.)
Explain how possible changes in this legislation would affect the business.
(How would Cameron Balloons respond to changes in legislation? Explain how they could lobby for certain changes, and why they might wish to do so. )
