From Consultation to Partnership

In: Business and Management

Submitted By Jharp553
Words 333
Pages 2
Case: The Case of HAECO’s Works Consultative Committee

Identify your character: Stephen Lau, Director- Support and Development Step 1 - Identify the Problem/Opportunity.
How can the Company ensure its’ continued profitability with the cooperation of its 4,800 employees. Step 2 - Identify the Causes of the Problem/Opportunity.
The squeeze on the airline industry’s profits has had a rippling effect on the aircraft engineering industry. With HAECO’s pervious monopoly status undermined and the increased overhead costs of operating in Hong Kong, new strategies have to be implemented.

Step 3 - List Alternative Solutions to the Problem (or ways to take advantage of the opportunity). a) Shut down smaller/ medium sized plants.
* Reduce operational costs
* Allows competitors and advantage * Employee Lay-offs

b) Pursue more joint ventures
* Shared goals of profitability with other companies * Combined resources. * Access to new markets
* Communication issues * Time consuming * Costly c) Relocate to a less expensive area to do business.
* Increase profitability * Opportunity to penetrate new markets * Competitive advantage to offer lower pricing
* High turn over rate resulting from employees who cannot relocate. * High costs associated with relocating * Potential loss of customers

Step 4 - Select the Best Alternative Solution.
The best alternative solution is to pursue other joint ventures. Joint ventures are flexible, strengthen long-term relationships, and reduce competition. They also provide access to new markets and distribution networks. Although, there are still risks involved with joint ventures they advantages far outweigh the risks. Additionally. HAECO has had great success with joint ventures with Cathay Pacific,…...

Similar Documents

It Consultation

...IT Consultation for MR. Green Mr. Green wants to upgrade Windows 7 Home Premium to Windows 7 Ultimate. I have researched this upgrade and will be describing concerns and options so Mr. Green’s business will be more efficient and capable of expanding in time. From the information you gave me Mr. Green, it appears that your stand-alone machines are capable of running Windows 7 Ultimate. It requires 1GHz processor, 2GB RAM (for 64 bit) and 20GB available disk space. My concern for the future would be to look into getting more RAM as you install different programs and have many applications running at the same time. Attached are graphs that will take you step by step in preparing to upgrade as well as the steps for using Windows Anytime Upgrade. Running the upgrade advisor will ensure that your systems are capable and compatible of running Windows 7 Ultimate. It will check your hardware, search for updates, check your applications, disk space, ensures computer functionality, also performs a full system backup and allows you to purchase Windows 7. The next graph walks you through Windows Anytime Upgrade which I believe will work for you since your systems already have windows 7 on them. The graph has you click start, control panel, system and security tab, and Windows Anytime Upgrade. When you get to that window, just click on go online to choose the windows 7 edition you would like and then click the buy button. It will then walk you through the install process. You may......

Words: 860 - Pages: 4


...History of Amateur Boxing Italian Amphora circa 500BC Ancient History The history of boxing starts from the history of Ancient Greece with perhaps the first mention being in Homer’s “Iliad”, written around 1100BC, describing a prize-fight between Epeus and Euryalus. There are, however, ancient Egyptian artefacts dating back to 3000BC that appear to depict boxing events and suggestions that “Boxing” occurred in Ethiopia as early as 6000BC. The earliest “pictures” of boxing appeared much closer to the times of Homer in the form of a fresco from Santorini Island dated around 1600BC that depicts two young boxers. Mosaic from Roman Ruins in Tunis In the Ancient Greek history, king Theseus is credited with introducing boxing as a form of entertainment before the fifth century BC. There were few rules, but traditional “Codes of Honour” were observed and, for boxing, there was an understanding that the contest involved punching and therefore wrestling and grappling was not allowed. At that time there were no “rings” and the fighting area was defined by the spectators. As a result, the boxers could often back away and, as they came closer to the spectators, they too could back away so that the ring size was continually changing. The result was that there was no ringcraft and an opponent could not be “cornered”. In practice, the “honour” or pride of the boxers’ was such that they would usually not back away and they stood with their feet in one place throwing blows at their......

Words: 3764 - Pages: 16


...DEFINITION In a contract of partnership, two or more persons bind themselves to contribute money, property, or industry to a common fund, with the intention of dividing the profit among themselves. Two or more persons may form a partnership for the exercise of a profession civil Code of the Philippines, article 1767). An association of two or more persons to carry on, as co-owners, a business for profit (Uniform Partnership Act, section 6). Partnerships resemble sole proprietorships, except that there are two or more owners of the business. Each owner is called a partner. Partnerships are often formed to bring together various talents and knowledge or to bring needed capital into a business. Partnerships are generally associated with the practice of law, public accounting, medicine and other professions. Partnerships of this nature are called general professional partnerships. On the other hand, service industries, retail trade, wholesale and manufacturing enterprises may also be organized as partnerships. CHARACTERISTICS OF PARTNERSHIPS The characteristics of partnerships are different from the sole proprietorships already studied in basic accounting. Some of the more important characteristics are as follows: Mutual Contribution.There cannot be a partnership without contribution of money. Property or industry (i.e. work or services which may either be personal manual efforts or intellectual) to a common fund. Division of Profits and......

Words: 1407 - Pages: 6


...Partnership In a partnership, two or more people share ownership of a single business. Like proprietorships, the law does not distinguish between the business and its owners. The Partners should have a legal agreement that sets forth how decisions will be made, profits will be shared, disputes will be resolved, how future partners will be admitted to the partnership, how partners can be bought out, or what steps will be taken to dussolve the partnership when needed.Many partnerships split up at crisis times. They also must decide up front how much time and capital each will contribute,etc Advantages of a Partnership: 1)Partnership are relatively easy to establish: however partners should develop the partnership agreement. 2)With more than one owner, the ability to raise funds may be increased. 3)The profits from the business flow directly through to the partners personal tax returns. 4)Prospective employees may be attracted to the business if given the incentive to become a partner. 5)The business usually will benefit from partners who have complementary work skills. Disadvantages of a Partnership: 1)Partners are jointly and individually liable for the actions of the other partners. 2) Profits must be shared with others. 3)Since decisions are shared, disagreements can occur. 4)The partnership may have a limited life: it may end upon the withdrawal or death of a partner. There exist diffrent types of partner. 1) General Partnership: Partners......

Words: 417 - Pages: 2


...Partnership sgs1 1890 – Regulates general partnerships. Still relevant now as in an absence of settings not it fills in obligations and rights of the partners in a partnership. Partnership agreement is not necessary a verbal agreement would classed as a partnership. However majority of partnerships tend to have a written agreement s1(1) of PA 1890 defines a partnership as : ‘...the relation which subsists between persons carrying on a business in common with a view of profit’ S45 of the act defines business as ‘....the term “business” includes every trade, occupation and profession.’ BUT a partnership cannot exist with a entity i.e. a business, it has to be individuals or a group of individuals. This is then called ‘the firm’ (s4(1)). Though this is not a separate entity and does not have a separate legal personality. Saying this there can be a partnership between more than one company (corporate partnership), between more than two individuals (group) and sub-partnerships which is partnership within a partnership. The partnership is contractual mainly in nature, but because it is also a fiduciary relationship equity also comes in to play. How to create one (badges of partnership) – s1(1) and s2(3) [the receipt by a person of a share of the profits of a business is prima facie evidence that he is a partner in the business...] Normally they have deeds etc as to formally set it up, though it is possible to create one by accident, by association......

Words: 2987 - Pages: 12


...Group Project 2 (Partnership) A partnership is a business owned and operated by two or more persons. Usually a partnership shares the responsibilities for managing the business. Advantages to organizing as a partner include: each partner has the right to share in the profits of the business and each partner has a right to share in the value of the firm’s assets. Disadvantages of organizing a partnership include: each partner has unlimited liability for all legal obligations and debts of the business and partners have joint and several liability. A person who represents another is an agent. The manager would act as the Agent within this agreement. The party that the agent represents is the principal, which are the business owners. Agencies can be created by agreement ratification, necessity, or operation of law. The agent has certain duties to the principal and the principal has duties to the agent. In most situations the principal will be liable for the contracts arranged by agent and the behavior of the agent while conducting the principals business. In our business we would be concerned with the manager placing orders with our purveyors and the way he/she represents themselves with the customers and our business partners. The main difference between principal and agent and of employer-employee relationships is an employer's power to control the activities of a non-agent employee. Whereas an agency agreement brings about a relationship between a principal and a third...

Words: 877 - Pages: 4


...General Partnership Agreement of a Business Owned by Individuals ARTICLES OF PARTNERSHIP OF ^ABCD ASSOCIATES ARTICLES OF PARTNERSHIP of ^, ^, ^, and ^, dated ^, 19^. RECITAL The parties hereto wish: (a) to enter together into the business of purchasing, acquiring, operating, leasing, owning and selling real property, including but not limited to that certain parcel of land described on Exhibit A hereto and all improvements constructed thereon and (b) in order to provide for and carry out the foregoing, to form and do business as a general partnership under and pursuant to Illinois law. NOW THEREFORE, in consideration of the premises and the mutual covenants and agreements set forth herein, the parties agree as follows: Definitions As used in this Agreement the terms listed below will have the meanings stated below, and other terms defined elsewhere will have the meanings there ascribed to them: "Agreement" or "this Agreement": these Articles of Partnership. "Bankruptcy": with respect to any Person, shall mean that such Person shall have become insolvent or generally failed to pay, or admitted in writing his or its inability to pay, debts as they become due; or shall have applied for, consented to, or acquiesced in the appointment of, a trustee, receiver or other custodian for such Person or any property of such Person, or such Person makes a general assignment for the benefit of creditors; or, in the absence of such application,......

Words: 5897 - Pages: 24


...PARTNER ASSESSMENT FORM | | | | | | |A ‘prompter’ enabling those creating a partnership to ask systematic questions of any potential partner to ensure a good fit with the goals / needs of the | |partnership. This tool should be used as a starting point for exploring a potential relationship by providing a basis for frank discussions with the key players| |involved at both senior and operational levels. It is designed to raise appropriate questions - not to provide definitive ‘screening’. | | | | | |DOES THE | ...

Words: 3042 - Pages: 13


...Accounting 11 Partnership vs Sole Proprietorship March 11, 2014 Thinking about starting your own business? Do you prefer to work alone? Or do you prefer to work with a partner? If you choose to work with a partner then the best business structure for you would be the partnership structure. First you must ask yourself; do we have the same vision or objectives on how to run the business? Are we able to communicate well with each other? Most important question of all, do you trust this individual? If two of these three questions is no then maybe the partnership structure isn’t for you and you should set the business up as a sole proprietorship. The partnership business structure allows two or more people start up a business as co-workers with no special formalities (Partnership: Pros and Cons, 2014), but with this structure you do not have total control over the business. Decisions are shared among the partners. Unlike the sole proprietorship structure you make all the decisions by yourself (Schaefer, 2006). No complex paperwork is required when setting up a business under the partnership structure. This structure is less expensive and more affordable because the startup cost is divided evenly among the partners (Partnership: Pros and Cons, 2014). As opposed to the sole proprietorship structure the startup cost is more expensive due to the fact that there is only one owner and no one else to split the cost with. When a business has been setup as a partnership all the......

Words: 702 - Pages: 3


...Partnership working is when different services and professionals work together with other teams of people to meet the needs of children, young people and their families. It brings together professionals to contribute their own specialist knowledge and skills. This way holistic approach to childcare is achieved as featured in Every Child Matters Framework. Below are some benefits of effective partnership:  Gives children and young people the best possible start by early identification of needs.  Ensures that everyone working together communicates about the child.  Support children, young people and their families with additional needs.  Prevent problems occurring in the first place by early intervention before harm is done.  Helps secure improved outcomes by getting the necessary information to assess and deliver support.  Opportunities for shared learning. Each professional will learn from each other’s skills and knowledge shared. Looking back at Baby P’s case, if only the professionals involved worked together and had treated the case with urgency and thoroughness, abuse was stopped in the first injury and prevented his death. According to reports, his death was also down to the incompetence of almost every member of staff who came into contact with him. Peter's GP should have raised concerns when he found bruises on the child's head and chest after apparently falling down stairs. Social workers did not think that Peter was being harmed or was at risk. It......

Words: 2169 - Pages: 9


...dissolution, a partnership business is continued by one partner. Such problems are longstanding. Frequently a husband and wife have run a business as partners (often without a Deed of Partnership). Following the breakdown of their marriage, one of them leaves whilst the other continues the business. This frequently raises the issue as to liability for the income earned from the business which is continued by the remaining spouse. As a matter of elementary fairness, it seems unjust that the partner continuing the business should benefit both from having the facility of the business and the income it can produce. Section 42 Partnership Act 1890 seeks to facilitate justice entitling the partner who has ceased operating the business, to "such share of the profits... as the court may find to be attributable to the use of his share of the assets of the partnership...". The problem always is how that share of the assets is to be assessed. The recent Court of Appeal decision in Sandhu -v- Gill [2006] 2 WLR 8 provides useful guidance. In that case, Messrs Sandhu and Gill ("S" and "G") agreed to open the business as a residential home for the elderly. To that end a property was purchased for £171,000. The partnership deed entered into provided that both partners should contribute half of the purchase price of the property each (£85,000). It was specifically laid down that whilst G had paid the full price of the property, S was going to pay the half share of the cost to be derived from......

Words: 1014 - Pages: 5


...have formed a partnership and based on their draft agreement should share equally the $200,000 annual royalty paid by Hyper Games Ltd for the exclusive licence of the game they developed between themselves. However, if circumstances are analysed in conjunction with relevant partnership legislation, the Partnership Act 1963 and precedent case law it becomes less clear that there is a partnership between the three. The issues arising, that raise doubt as to whether Marco should be entitled to a one third share of the annual royalty are: • Jack and Jill had already developed an early version of Galactic Explorer, before Marco’s involvement and he only ‘assisted’ and added concepts to the game. • Can the draft agreement be relied upon to prove the intention of the three partners was to share equally any profit from the sale of the licence • The draft agreement which had not been signed by Marco, stated that Marco only provided assistance. • Marco had not attended any meetings with Jack and Jill for three months prior to Jack and Jill granting the exclusive copyright licence to Hyper Games. • The contract with Hyper Games was only with Jack and Jill. A) WOULD MARCO BE ENTITLED TO SHARE THE PROFITS WITH JACK AND JILL? Marco would only be entitled to an equal share of the royalty if it can be proven there was a partnership arrangement between the three of them and in order to establish whether this was the arrangement it is necessary to refer to the Partnership Act 1963......

Words: 936 - Pages: 4


...household iv. Profits ( as Dividends) – to the members of the household for owning a share v. Rents (including royalties. – Paid to household that have supplied natural or intellectual property resources. b. Discussion of process flow vi. Money flows from the households to firms as consumers purchase goods and services. vii. Money flows from the firms to households as businesses pay wages and salaries to their workers, dividends to their owners and interest to their creditors. viii. Households spend some of their income and save the remainder ix. Firms sell goods to households, to government, to other firms and, as exports, to overseas purchasers. x. Domestic firms (especially retailers and wholesalers) purchase both domestically produced goods and foreign-made goods (imports) xi. The government takes money out of the income flow in the form of income taxes, and puts money back into the circular flow by spending money on collective goods (including roads, hospitals and police services) and through paying transfers, such as social security benefits. xii. Firms invest by purchasing capital goods and inventories from other firms or as imports. xiii. All of the national income is either spent in consumption goods, is saved, or is paid to government as income tax xiv. Saving and investment are linked, in practice, through the financial sectors. c. Discussions of main......

Words: 1018 - Pages: 5


...GAAP ACCOUNTING FOR PARTNERSHIPS Formation [i]. The Revised Uniform Partnership Act defines a partnership as a. Any association of two or more persons or entities. b. An association of two or more persons to carry on as co-owners a business for profit. c. A separate legal entity for most legal purposes. d. An entity created by following statutory requirements. Gleim [ii]. The partnership agreement is an express contract among the partners (the owners of the business). Such an agreement generally does not include a. A limitation on a partner’s liability to creditors. b. The rights and duties of the partners. c. The allocation of income between the partners. d. The rights and duties of the partners in the event of partnership dissolution. Gleim *. A partnership records a partner’s investment of assets in the business at a. The market value of the assets invested. b. A special value set by the partners. c. The partner’s book value of the assets invested. d. Any of the above, depending upon the partnership agreement. RPCPA 0598 [iii]. When property other than cash is invested in a partnership, at what amount should the noncash property be credited to the contributing partner’s capital account? a. Fair value at the date of recognition. b. Contributing partner’s original cost. c. Assessed valuation for property tax purposes. d. Contributing partner’s tax basis. AICPA 0594 F-35 [iv]. When property other......

Words: 3500 - Pages: 14


...CHAPTER 15 Accounting for Partnerships CHAPTER OUTLINE Partnership Accounting Partners’ Accounts Ownership Changes Partnership Liquidation Instalment Liquidation Plan of Cash Distribution to Partners Summary Review and Multiple Choice Questions, Case, and Problems LEARNING OBJECTIVES After studying this chapter, you should be able to do the following: • Describe the advantages and disadvantages of the partnership form of organization. • Explain where the major differences lie in the accounting for corporations and partnerships. • Apply the three accounting methods available to record the admission of a new partner, and evaluate the strengths and weaknesses of each method. • Apply the accounting methods for the recording of the retirement of a partner. • Prepare the journal entries to record the liquidation of a partnership when a cash payment to partners is made only after the sale of all of the partnership assets. • Prepare a schedule of the liquidation of a partnership where instalment payments to partners are made as cash becomes available. • Prepare a cash distribution plan prior to the commencement of the partnership liquidation. 1 2 CHAPTER 15 ACCOUNTING FOR PARTNERSHIPS This chapter will examine the accounting practices involved in the partnership form of business organization. The major differences between corporations and partnerships appear in the equity section of the balance sheet. The accounting principles involved have been in use for......

Words: 12196 - Pages: 49