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There is considerable evidence that small firms are reluctant to carry out strategic planning in their businesses.
(b) What are the advantages and disadvantages for Gould and King Associates in creating and implementing a
strategic plan? (8 marks)
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更多 “ There is considerable evidence that small firms are reluctant to carry out strategic planning in their businesses.(b) What are the advantages and disadvantages for Gould and King Associates in creating and implementing astrategic plan? (8 marks) ” 相关考题
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2 David Gould set up his accounting firm, providing accounting services to small businesses, in 2001. Within threeyears his fee income was in excess of ￡100K a year and he had nearly 100 clients most of whom had been gainedthrough word of mouth. David recognised that these small or micro businesses, typically employing ten or fewerpeople, were receiving less than satisfactory service from their current accountants. These accounting firms typicallyhad between five and ten partners and operated regionally and not nationally. Evidence of poor service includedlimited access to their particular accountant, poor response time to clients’ enquiries and failure to identifyopportunities to save clients money. In addition bad advice, lack of interest in business development opportunities forthe client and poor internal communication between the partners and their staff contributed to client dissatisfaction.David has deliberately kept the costs of the business down by employing three part-time accountants and relying onhis wife to run the office.David had recently met Ian King who ran a similar sized accounting firm. The personal chemistry between the twoand complementary skills led to a partnership being proposed. Gould and King Associates, subject to securing thenecessary funding, is to be launched in September 2006. David is to focus on the business development side of thepartnership and Ian on the core services provided. Indicative of their creative thinking is David’s conviction thataccounting services are promoted very inadequately with little attempt to communicate with clients using the Internet.He is also convinced that there are real opportunities for the partnership to move into new areas such as providingaccountancy services for property developers, both at home and abroad. Ian feels that the partnership should set upits own subsidiary in India, enjoying the benefits of much cheaper accountancy staff and avoiding the costs andcomplications of outsourcing their core accounting services. Ian sees fee income growing to ￡2 million in five years’time.David has been asked by his bank to provide it with a business plan setting out how the partnership intends to growand develop.Required:(a) Write a short report for David giving the key features that you consider to be important and that you wouldexpect to see in the business plan for the Gould and King partnership that David has to present to his bank.(12 marks)
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