Choosing a Form of Business Organisation in Accounting

Choosing a Form of Business Organisation in Accounting

Case. A.

A. Larry, Ulysses, and Irene are three college student friends planning to set up a summer business at a nearby resort to sell T-shirts, souvenirs, and novelties to tourists. While they have no assets (to speak of) of their own, Larry's uncle has agreed to finance them with upfront capital to acquire merchandise and so on. They plan to operate for only one summer, as all expect to graduate soon and take permanent jobs in a nearby state.

In the case of A. Larry, Ulysses, and Irene retailing would be a better option to start their new business. The increasing concentration of apparel retailing in major markets was thought to be one of the key drivers of increased trade. In order to improve speed and flexibility, large apparel retailers played the leading role in promoting quick response (QR). Retailing activities remained quite local with respect to other industries. The key issue addressed in retailing is how the new business of selling T-shirts, souvenirs, and novelties to tourists concept can be implemented what would be required in terms of investment, resources and mix of competencies to achieve a core competence. The approach first concentrates on the assessment of the client's competence base compared to the total set of competencies required for success. The assessment reveals the strengths and weaknesses of the competence profile.

As a next step, the future competition must be studied by A. Larry, Ulysses, and Irene in more detail, in order to comprehend clearly the relative importance of both the strengths and weaknesses. Core competencies are modified or improved, and new competencies are acquired. The search for external sources having or offering required core competencies is then initiated.

A. Larry, Ulysses, and Irene use needs-based ...