Form of Business

In this investigation I will try to explain which form of business I would chose to run my hotel. I will use a variety of forms as this may give a wide spread field of choice. My hotel is situated in the grounds of a theme park. I have chose to build my hotel here because theme parks attract people and with a wider audience to choose from. With more people attracted to my hotel I will have more profit coming in so I may expand and MERGE with other companies.

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My hotel started off as a soul trader business, with a family run work base. I then moved location to a plot of land in the centre of a theme park. I bought the land from the theme park at a reasonable price. I sold my original premises so I could afford the land and build a new bigger hotel. The bigger hotel allowed me to expand my theoretical profit. My workforce only expanded slightly to cope with the extra work. I only made this decision when I realised that more people were coming to my hotel. I arranged a partnership with a boat hire company so that my potential costomers may get to me easily.

With my business now a partnership I will have more capital coming in form another company, Rainy Day Boat Hire. With the customers now being drawn in from the attraction of the theme park I will hopefully increase my potential profit. I will hopefully not need to expand too soon because my profit is not at a high enough peak to expand my land and hotel. Now 1 year into my new premises and I need to expand my workforce, to cope with the demand of the public. With land still free a fast food chain has opened near by; they have asked me if they could join my company. I took this opportunity to review my status and I accepted I found that they were involved with the theme park, which meant I could think about a hostile take-over, my ultimate plan!

With now even more money coming in and less stress on me I can take a well earned break. I decide to go to the theme park to scope out the business it is pulling in, I can also think about the reason of why I would like to take-over the company. With the company refusing to give me information on their company I have to find out myself weather or not the choice is wise. I will still have to run it by partners, but me being the senior partner I make the big decisions. Even thinking about this prospect will require a huge amount capital and a cunning eye. I found out that the company is estimated to be 6.9 million pounds, so I’ll need about 3.5 million pounds. I run past the idea with my members and we took a vote which shown that I was democratic manager. The vote was unanimous; we should try to take-over the company.

We will need to wait at least 2-3 years before we can even think amount having the minimum amount of money needed. With cuts being made all around the whole partnerships in the boat hire and fast food Companies even the hotel has had to cut down on staff. The prises have had to be increased to compensate for the increase in required money. The stock also has to be reviewed because the books have proved that we are ordering too many perishable goods and they are not being used. My financial manager says we have “Bad Economies of Scale” which means that our business is acting uneconomically by buying these goods. So by cutting down on these goods we can save money, and we shall only increase when the public says so.

Our economies of scale has differed through the years, when we were only a hotel we never had to bother with say electronics or motor parts just linen and things like that. We never really bothered if we were “Bad Economies of Scale” because we were only on a small scale, but now we are big and important all the extra stock really adds up. We are also cutting down on expenses, such as free food for employees or free over-night stay. The annual pay rise has also been cut by almost 1.5% to 1.4%. The employees have adapted to this and I have promised them a huge bonus when we take-over the theme park.

With now only 1 year to go before our estimated profit will be enough to take-over the theme park. I was advised by my financial adviser that we would have 6.34 million pounds more than enough to take-over the whole of the theme park. I have enounced this to my employee’s and they are very pleased with the result. But I will still have to be an autocratic manager, which the employee’s have noticed. But I am taking interest in my lower level employee’s’ who are very important to the success of my business. Overall the staff are quite pleased with me.

We have had our annual profit in, we are over the predicted amount, time to be ruthless! I sent my brokers out to the shares on the open market, all under different names. Within an Hour I was in control. I rang the theme park with the news; they were not that impressed. I handed over my memorandum for the park. They were pleased with the fact that I kept all the staff and I still let the management in charge. I just sat back and looked at the figures. There was one big change, the name, The Californian Dream. My hotel expanded to over 300 rooms and four fast food restaurants. Five years have now past and the business is booming, with lots of branches of my boat hire and fast food restaurants and now three theme parks and 17 hotels around the world.