Question

1. Jim who recently quit his job after receiving a very large bonus payment is interested in forming his own business. He is not sure how to begin and he has asked you to help him identify and analyze what company formation options he has available. He can set up his business in the UK, Canada or the USA, he will go where you decide.

   1. Please advise him on what it means to be unincorporated, the advantages and disadvantages

   2. Then explain to him the significance of opening an incorporated business? What are the advantages and disadvantages of this type of business?

   3. Then explain to him what is a Limited Liability Partnership? What responsibilities and liabilities do the partners have for themselves individually, to

      the firm/to each other in the firm and to the public?

   4. Explain to Jim if he needs additional capital to begin his new company what are some ways he could finance his new company?

2. 5 years later Jim has done very well but he is facing competition from 4 other similar businesses, he is considering the idea of merging with one of his competitors or trying to acquire one of them.

   1. Explain to Jim what a merger is. Then identify and explain the steps that he and the other party would need to take to merge together – remember this will vary country to country.

   2. Jim was able to convince Bob to merge their companies together, explain to Jim what three separate groups of professionals are recommended to be consulted to assist him with this merger.

   3. Explain to Jim and Bob what issues they will need to agree to when the two comes merge into one new company. For example, who will be the Director, etc...

3. (In case Jim cannot merge with someone) Jim soon realizes that none of his competitors want to merge with him but still facing stiff competition, so he asks you to assist him in acquiring one of the competitors to give him a bigger advantage in the market.

   1. Explain to Jim what is an acquisition and then explain to him the different ways he can acquire one of his competitor’s company.

   2. Explain to Jim what the significance of him acquiring a competitor’s company would be in relations to control of the company, decision making,

      directors, etc...

4. If Jim cannot merge with a competitor is there the possibility of a Strategic Alliance or Joint Venture between the parties?

   1. Explain what is a Strategic Alliance? What are the main characteristics of a strategic alliance and the advantages/disadvantages?

   2. Explain what is a Joint Venture? What are the main characteristics of a joint venture and the advantages/disadvantages

   3. Business Law Subject

Answer 1

ANS

1) Strategic alliances

Strategic alliances is an understanding between at least two gatherings to seek after a lot of concurred up on destinations required while staying autonomous association. A strategic alliances will for the most part miss the mark concerning a lawful organizations substance , office, or corporate associate relationship. Normally, two organizations from a strategic collusion when each has at least one business resource or have ability that will help the other by upgrading their business. Strategic alliances can create in re-appropriating relationship where the gatherings want to accomplish long haul win-win advantages and development dependent on commonly wanted out comes.

attributes of strategic alliances:

Strategic fit: each organization intermittently characterizes its objective and goals and there is consistently a technique to accomplish it. Only one out of every odd union accomplice, regardless of how alluring they may show up, will be adjusted according to your association's technique. Along these lines, be very specific in picking your coalition accomplice.

Worth creation: If two organizations meeting up can't make convincing an incentive for their joint clients, at that point the change reason for collusion is lost. For making esteem, the two partners ought to have more quality when joined than they would have autonomously.

Joint crucial: of the collusion accomplices will have their individual strategic vission proclamation for their grate association. Be that as it may, to characterize the very reason for the coalition and successfully impart it to the position and the document, a joint statement of purpose is required.

Shared soul: The two alliances accomplices must have a culture of coordinated effort and they should be similarly anxious to draw in with one another. Only one accomplice being increasingly eager about the alliances doesn't help in building a fruitful alliances.

Administration: To guarantee that the coalition performs and deliverd the ideal outcome according to its statement of purpose, an arrangement of governing rules its required to deal with the hazard and exhibitions. This administration model must guarantees that dynamic just as acceleration occurs at the opportune time.

Keep it new: Alliances need proceeds with recharging so they don't lose their edge in the commercial center. Thus, recognize new chances while altering the requirements of the current ones. According to advertise requests, the union should proactively develop, to stay new, lively and applicable .

Points of interest of strategic alliances:

Common hazard: The association permit the included organizations to counterbalance their market introduction. Strategic collusion most likely work best if the organizations portfolio supplement one another, yet don't legitimately contend.

Open doors for development: Using the accomplices circulation arrange in blend with exploiting a.good brand picture can assist an organization with growing quicker than it would all alone.

Multifaceted nature: As intricacy expands, it's increasingly more hard to deal with all necessities and difficulties an organization needs to confront, so spooling of mastery and information can assist with besting serve client.

Development: The gatherings in a partnership can together decide their shared wanted results and art a cooperative agreement that highlights motivators intended to spike interest in advancement.

Costs: organization can assist with bringing down expense, particularly in non benefit territories like innovative work.

Access to new innovation, licensed innovation rights.

Enhancement

Make minimum amount, basic guidelines and new business.

disservices of strategic alliances

Sharing: In a strategic alliances the accomplices must share assets and benefit and regularly aptitudes and know-know.

Opportunity cost: Focusing and submitting in important to run a strategic alliances effectively yet may demoralize from accepting other open doors.

Lopsided alliances: when the choice forces are dispersed unevenly, the more vulnerable accomplice may be compelled to act as per the desire of the more remarkable accomplices.

Joint venture:

Joint venture can be portrayed as a business course of action, wherein at least two free firms meet up to frame a legitimately autonomous endeavor, for a specified period, to satisfied a particular reason, for example, achieving an errand, action or task.

Qualities of jont venture

Benefit and cost: except if in any case consented to, joint venture share benefit and misfortune similarly

Span: Unless in any case indicated, a joint venture end up on the fruition of task or arrangement of exchange.

Control: The privilege of each joint venturer gatherings to control and deal with the entirety of the property to be utilized in the venture.

Agreement: The presence of an agreement. Regardless of whether oral or composed, between the gatherings to participate in the venture together.

Points of interest of joint venture:

Gives organization the oppertunity to increase new limit and mastery.

Empowers organizations to enter related business or new geographic market or access current innovation.

Gives acces to more noteworthy assets including particular staff and innovation.

Offer hazard with venture accomplice.

Offers an inventive method of organizations to exist from non - center business.

Dis points of interest of joint venture

It requires some investment and exertion to fabricate the correct connections and banding together with another business can be testing. Issues are probably going to emerge if,

The targets of the business are not 100% clear and conveyed to each one included.

There is an irregularity in the degree of skill, speculation or resource acquired to the venture by the various gatherings.

Diverse culture and the executives styles bring about poor reconciliation and partnerships.

2) making a joint venture is may bring about progressively complex expense courses of action.

3) Success in a joint venture relies upon through research and examination of the destinations.

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