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'Snooze Cottage' - Terms of Reference, the advantages and disadvantages of this business move.

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Introduction

'Snooze Cottage' Terms of Reference Patricia and Richard are owners of a guesthouse in rural Wales, called Snooze Cottage. They are thinking of investing in a second property. So I am going to investigate whether or not Patricia and Richard should invest in a second property and to discuss the advantages and disadvantages of this business move. Back Ground Information Patricia and Richard Wright own 'Snooze Cottage' this is a guesthouse in rural Wales. This is a 10-room guesthouse that has a range of single, double and en-suite accommodation of the highest standards possible. As Snooze Cottage is such a popular place no advertising has been necessary, word of mouth has ensured that throughout the year rooms are always fully booked. Patricia and Richard are involved in the running of the business, they are not trained in management but they deal with the customer's side of the business. They currently have six employees working for them, keeping the rooms clean and tidy, making sure any little jobs and repairs are done including the garden and cooking a range of food for their guests. Richard and Patricia are discussing the possibility of buying a new property and expanding their business. Although neither Richard nor Patricia are fully qualified in business or management they both have good experience and success in this sort of business, as Patricia's parents owned a bed and breakfast and she grew up within this area of business and has recently attended computer course for accounts which would be very good for her joint business. ...read more.

Middle

This small business is at present using a flat structure. This is because there are only a small number of authority levels and this is due to there being a large number of subordinates directly controlled by the manager. The advantages are that it encourages delegation by management. But the disadvantages are that the wide span of control can result in mismanagement as well as reduced promotion and career opportunities for inferior employees. At 'Snooze Cottage' the Housekeeper keeps all the day-to-day running of the house, telling the rest of the workers what needs doing and when to do it. Then reports to Richard or Patricia to make orders etc. the lowest part of the structure is the Kitchen Assistant as she has to report to the cook and the cook needs to tell her what to do. So apart from the Owners (Richard and Patricia) the Housekeeper (Hazel) is in charge. Other structures they may use in there business; Tall Structure Tall organisations are used in big multi national companies like banks. In a tall structure there are recognised smaller units of authority, which therefore means many authority levels and very small spans of control. The advantages are that it can allow a higher level of specialisation within different functions/ roles. But it does have disadvantages such as less communication between staff in different areas of the workplace and more formality between them because of the lack of integration. Typical Matrix Structure Direct Chain of Command Project Authority A Matrix structure is designed to join project based structures with that of functional form. ...read more.

Conclusion

They will need to buy a licensed copy of this software for example: MICROSOFT OFFICE XP PROFESSIONAL EDITION MICROSOFT PC-CD This piece of software can be bought in most computing shops and online companies for around the price of �397.99 Inc VAT. Very good software to have for accounting is Sage. This is software that is designed to help with cash management in small businesses. SAGE INSTANT ACCOUNTS V10 SAGE PC-CD This software can be bought from most computing shops and online companies for around the price of �129.99 Inc VAT. Conclusion To conclude my report I have shown what Richard and Patricia need to take into account for expanding their business and buying the new cottage. I have told them advice in what to do in expanding their staff and new organisational structures for there venture. I have giving and example or an organisation structure used at a big company. I have shown a typical flow chart used at the cottage, which is used in the kitchen and ordering stock from their supplier. I have also informed them about Desktop PC's which would be very useful for the running of the company. I have also given prices of what it will cost to buy a PC and the software which will be very useful to them for all there accounting and very useful for word processing etc. I have also given information on how I think the company will be run best with the current staff and what will be best once the new staffs has arrived and what will be best training wise. I hope my information has been useful to Richard and Patricia in deciding expanding their business. ...read more.

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