In this case study we will examine some of the problems that can face even a successful
Question:
In this case study we will examine some of the problems that can face even a successful business. The business context is that of a partnership, but some of the problems could also be found in a sole trader or company structure.
Chris and Anwar have been in partnership for over eight years running a computer consultancy business. Both men are in their mid-40s. They first met up almost 30 years ago at Sixth Form College where they studied computing at A level and founded a computer programmer's club. After that, they went to different universities and then gradually lost touch. However, almost ten years ago they met up again at a school reunion and started talking about their dissatisfaction with their respective jobs. At the time Anwar was employed in computer sales; although his job was well paid with high levels of commission, he really felt the time had come to run his own business. Chris had had various programming and consultancy jobs but he, too, was unhappy at the time because of an unsympathetic boss.
A year or so after their chance meeting, Chris and Anwar had taken the plunge into self-employment. Eight years on they remain the sole partners in the business, but now they employ nine consultants, three secretaries and a bookkeeper. The business has been successful and profitable almost from day one; the partners have complementary skills and have continued to work harmoniously together. Anwar is the public face of the firm; he has a 'larger-than- life' personality, is immensely sociable and extrovert, and has been able to build up a huge range of useful contacts in many industry sectors. The firm has never been short of work; in fact, the consultants all have to put in long hours to fulfil the existing contracts. Chris is the details man; he organises the provision of consultancy time to ensure that the contract requirements are met and is in charge of the management of all administrative matters. His technical knowledge is more advanced than Anwar's and he is involved hands-on in every contract the firm takes on. Despite having such different personalities, Chris and Anwar get along very well both personally and in business. They see each other socially, their families get along well and their sons go to the same school.
Now, however, the business has reached its first major crisis. About a year ago, Anwar suffered a fairly serious heart attack. He was advised to cut back on his hours of work, to give up smoking and to lead a much healthier life. It's been a huge struggle, but he's managed to kick the smoking habit; cutting back on work, however, has been much more difficult. Anwar loves his work; he cannot imagine life without it. Chris has encouraged him to leave earlier, to take on less and not to work so much at weekends. The trouble is, though, that the business is so absorbing and there's always so much to do that he hasn't really noticed that Anwar is putting in just as many hours as before.
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Business Accounting And Finance For Non Specialists
ISBN: 9781861528728
1st Edition
Authors: Catherine Gowthorpe