Ownership structure using the partnership model
Conduct research and demonstrate your understanding of the lecture material in developing a report titled “Business Exploration – your IoT idea”.
The product that has been chosen for the utilization of Internet of Things is Smart Bikes Locks and Trackers. The Internet of Things is working on the functioning of the technology of the tech-savvy. The technology is considered as the anti theft device that deals with the tracking of the bikes and the tracing the location of the bike. The device provides notice alerts to the genuine owner of the bike in case the bike leaves the designated area and travels through the routes that are not authenticated by the owner if the bike. The smart locks do not require physical keys to unlock the locks that uses the technology of the internet of things. The Smart bike locks also provides the bike ride analytics as well s the crash alert in case of expensive updates that are used in the infrastructural framework. The connectivity of the tracker is made by the Wi-Fi, NFC, Bluetooth and the GSM cellular technology. The response of the tracker is provided by the application that is built specifically for the working of the smart lock technology. The application charges monthly installation charges from the clients and the users of the technology for enjoying the security f the technology. The information of the user who gets the tracking instances of the car is connected with the tracking system has to pay the regular in charging charged to keep the application updated in order to get the new updates that are available in the internet store.
The ownership structure that has been used in the process of maintaining the business organization of the smart tracker and the locker is by the methodology of the partnership terminology. The terminology of partnership is being used in the processing of the project because n case of partnership both the members of the project who are effectively and actively involved in the project gets the right to take decisions for the betterment of the organization. This versatility and diversity that is provided in the decision making of the company helps the company take a massive leap in the growth of the sociological and economical standards/. The diversity that is provide gin the management of the company helps the company to grow over the years as the responsibility of the company is equally divided among the partners of te company.
Benefits of partnership model
Pros
The main advantages of havu0in partnership in the processing of the business are as follows: –
- Decision diversity
- Division in the capital cost among the partners of the project .
- The capital that is invested is usually more as the amount is divided among the partners.
- The borrowing capacity of the organization increases as the liability of the organization has two partners and the accountability increases.
Cons
- The liability of all the partners for the allowance f the debts of the business is unlimited.
- All the partners that are connected with the company is equally liable for teir half of the debts as well as the entire debt of the company.
- The risk of disagreement and the friction among the partners of the business is obvious.
- Each and every partner is liable for the performance of the other partners.
The entire processing cost of the project regarding the setting up of the project management is $2 million. Despite opening, the business in the form of partnership the amount money that could be arranged by both the partners is $50 thousand. There has been a deficit of $1 million to overcome to get the business regarding the smart lacking and tracking of the bikes get going. After contacting the personal contacts, only $15 thousand was arranged. The remaining amount of $85 thousand was acting as the barrier between the startup of the business. Rest of the money that is required is arranged by submitting the papers of the houses of the respective partners in the bank to get the loan sanctioned. The bank sanctioned a total loan of $40 thousand for one partner and $60 thousand for the house of the second partner. Despite getting the loan of $1 million from the bank in exchange of submitting the paper of ownership of their house still there was a deficit of $50 thousand. The deficit of $50 thousand was being the main problem and the barrier for the setting up of the business and creating an organization as a whole. The rest of the money was inaugurated by an advertising agency who wanted to get the name of their brand enlisted in the innovative idea that might take the world in storm in the time of its launching. This was the methodologies that were undertaken by the partners in order to collect and gather the money that was required for the progression of the business.
Confirms the identity of the organization
In case of the organization attaining the Australian Business Number is important for gaining the identity of the business acts as the major benefit for the company. This aspect of the company helps in gaining the benefits of marketing for the brand and the organization which helps in popularizing of the brand. With the increase in the popularization in the brand the products of the brand gains a lot of interest from the common mass which increases the turnover of the company.
The company can be allotted among the companies that imply the Australian Business number by registering the company in the Business Registration Service Beta.
The trading unit of the government body will be approached in order to get the transaction of the business organization done efficiently. This enables the organization to gain the approach to the legal authority that deals with the transaction policies of the business organization.
Business registration and benefits of Australian Business Number
The economic state of the Australian market has been in a growing notch. The aspect that the Australian market has been blooming and the introduction of the new technology is being accepted well by the audience of Australia. Hence launching of the product in the, manufacturing industry that is expanding.
The economy of the Australian trade wings has been developing since the year 2013 hence the economy of Australia has been on an increasing note.
Shipping details
The product that a will be manufactured in Australia will me made keeping in mind the interest of the global audience. Hence shipping of the product acts to be important. Freight Exchange is the transportation and shipping partner for the project and will look on to the shipment of the project.
GST laws
The price of the product overseas will increase to a great extent as the GST is applicable on the products that are exported from Australia which makes the product less cost efficient.
Oversea Government laws
The government laws will not be an issue for the smart bike locker and tracker as it is not a product that might act as the militant source of conduct in the government laws of the overseas.
Figure: Hierarchy of the organization
Drawn by the author
The staff selection methodology that has been undertaken for serving the organization is that the aspired employees were taken an aptitude test. On fulfilling the requirements of the aptitude test the recruiters hires the employees and proper training is provided to the employees in order to make the functioning of the process in the business more efficient. After the training is provided to the employees another test is taken by the human resource head of the company to ensure the efficiency of the company functioning. On cracking the exams of testing the efficiency the employee is permanently recruited in the company.
The leadership style that will be used in the organization is the passive leadership mode of leadership. This mode of leadership is preferred over other leadership methodologies as in case of this methodology the knowledge that is present in the leader of the organization is shared with the employees of the company. The hierarchy of the employees are not seen during the process of the functioning of the company. This increases the friendly environment in the work place which acts as the motivation for the employees to work for the company. In case of adopting the active leadership methodologies the company would not have enjoyed this friendly atmosphere in the company hence decreasing the efficiency in the production in the company.
Shipping considerations and GST implications
The code of ethics that is followed is the code of conduct related to the transparency in the hierarchy of the system. This transparency in the system helps in reducing the conflicts among the employees who have been working in the industry. This strategy also decreases the conflict among the employees of the organization and the clients of the organization. This lack of conflict among the organization increases the efficiency in the production of the company. This increase in the efficiency of the production leads to the increase in the turnover of the companies.
The main concern in terms of ethics for the company is that the competency among the employees of the organization is very high. Often this competition among the employees does not remain as healthy as it should hence leading to the fact of lack of coordination among the team members of the company which results in the conflictive decision making. Due to the fact of this ethical dilemma the organization suffers the lack of client endorsement and client trust.
The importance of the Risk Management plan finds its importance in the processing of the business organization as the risk Management plan ensures that the threats that are approaching the business organization is detected beforehand hence reducing the fear of external threats that might affect the efficiency of the company.
The main function of TQM is to ensure the demand of the market and mold the marketing strategy of the business firm in order to earn the interest from the audience in order to increase the popularity of the brand and increase the brand value of the product.
The ISO certification ensures that the products that have been manufactured by the organization are standard in the quantity of the product. The standardization of the product ensures the brand equity in the market. The good will of the audience regarding the brand is prevailed and brand loyalty increases.
References
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