PART B

ESSAY QUESTIONS

Question 1

John is a senior human resources manager who wishes to go into business as a HR Consultant. John is seeking your advice as to which business structure is best for him.

Provide John with advice by comparing the advantages and disadvantages of the following business structures:

1. Sole trader

2. Partnership

3. Company

Include in your answer: Costs, Regulations, Setting up, Operations, Liability.

Question 2

Congratulations, you have graduated from ICMS and have just been appointed to a new graduate position in a mid-size company “Great Ozzie Pools”1 The company manufactures, markets and installs (through a network of contractors) a range of fibreglass swimming pools located in one of Sydney’s outer western suburbs. The company currently has a turnover of $15 million (AUD) and enjoys an average 9% net profit return (before tax). The business was set up and is operated by two brothers who arrived from Cyprus just over 10 years ago. The company has enjoyed remarkable growth and has an aspiration of listing the business on the stock market in three to five years-time. The company employs over 50 staff and over 100 third-party contractors.

Your first project for Great Ozzie Pools is to research and present to the brothers, the benefits -v- costs of introducing a Corporate Social Responsibility (CSR) strategy and policy. One of the brothers is heavily oriented towards production of an increasing range of pools but is skeptical about incurring additional costs “for no real benefits”. The second brother has excelled in the marketing function but senses the need for the company to present a powerful CSR message in the market if the business is to rise to the next level and be a desirable investment once the business is listed.

You have been given just 48 hours to research and present a blueprint of the benefits of CSR and how its introduction might add value to Great Ozzie Pools. Your blueprint will be a conceptual paper as no budget has been determined.