Criterion 1.

1.

Responsibilities & Liabilities of Owner - Manager

a) The manager will be responsible for the well being of the company.

b) The manger / owner of the company should impart all his work through honesty and

ethics.

c) The manager / owner is responsible for making the efficient and optimal utilization of

the resources for its company.

d) He is responsible to adhere the rules and regulations of the company.

e) He is also responsible to implement all its business activities according to the rule and

laws of the land / country.

f) He should inculcate the technological advancements and innovations in his company.

g) His prime motive should be to increase wealth and profit for the overall business as a

whole.

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2.

Mission for the Computer Business

a) To give quality products and services in the field of computers and IT.

b) To inculcate technological innovations and advancements in the business and make it

as a continuous process.

c) To impart all the duties and obligations of the company with honesty and ethical

values.

Vision for the Computer Business

a) To train the employees of the company at a regular basis so that they become

technologically thorough with the current trends.

b) To give the maximum efficiency and effectiveness in the business operations to get

the optimum utilization of resources.

c) To inculcate the culture of work ethics and honesty in the organization.

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Criterion 1.2

1.

Marketing & Sales

a) Proper advertisements are to be focused in the localized newspapers and magazines to

make the product more popular.

b) To implement the sales promotional activities like gift vouchers and prizes to increase

the sales and attract customers.

c) To give maximum importance to the customer satisfaction of the company.

d) To implement up to the mark products and services and segment it according to the

customer preferences and tastes.

e) To have the best of mineral water raw materials and supplies so that the output

product is well matched with the quality.

f) To segment the market according to the customers and then target the marketing and

sales activities accordingly.

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2.

Use of Technology

a) Technological advancements could be used for increased the market share of the

company.

b) Customer could be given knowledge of call centres and telephone lines facilities from

the company.

c) The company should launch its own website and give all the necessary information

over there and also could take orders from its customers through the websites.

d) The company should also focus on the customer satisfaction a lot.

e) More importance should be given in the technologically advanced mechanism and

processes used in producing and manufacturing the products.

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Criterion 1.3

1. Business Budget

Business budgets are very important for the company. It is the back bone for any

organization. Because of much cash flows and investments involved in the company,

estimation of future cash flows (cash inflows and outflows) are very much essential for any

business.

The following points will summarize the case:

a) Business budget helps the organization to estimate its future cash inflows and

outflows well in advance so that they can do the perfect utilization of resources.

b) Business budgets are important for the small scales enterprise as well as the medium

sized enterprises as it helps to develop and aid all the management activities of the

firm. It comprises planning, organizing, controlling, staffing, etc.

c) Business budgets for small and medium sized organizations are also essential for

effective and efficient utilization of resources.

d) The business is also an important source of revenue and wealth for its stakeholders

and other outsider parties. Business budgets helps all these external parties to have an

overview of all of its future expansion and wealth utilization plans.

e) It also gives a basic infrastructure and base for pursuing all of the future activities of a

business entity.

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2. Return on Assets Ratio

a) Return on asset ratio helps to find out the relationship between the profits and the

utilization of resources in the form of total assets of a company.

b) It helps to estimate the returns on the assets being purchased by the company.

c) An increase return on asset ratio is a good form of growth indicator for the company.

It shows that the company is progressing at a relevant and appropriate manner.

d) It also helps to distribute the future profits according to the ratio performance.

e) It also helps the company to implement its management activities accordingly.

f) It helps to prepare in future cash and other types of budgets for the company.

g) Return on asset ratio is also helpful for the company in estimating the utilization of

resources at an appropriate manner.

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References:

a) Huczynski S – Business Essentials, (Prentice Hall, 2006), ISBN: 02342823456.

b) Madura, Jeff – Principles of Business Management, 3rd edition, (Prentice Hall, 2001)

ISBN: 049085688272.

c) Brooks I – Principles and practice of Business Units, 3rd edition, (Prentice Hall,

2003) ISBN: 0347723090.

d) Maccoby, M – Business Fundamentals, (New York: Simon and Schuster, 2000)

ISBN: 06714209145.

e) Mullins L – Business Management, (London: Pitman Publishing, 1999) ISBN:

027365123945.