Essay Sample on Business Problems and People Problems

Introduction

In analyzing the business, it is evident that the partnership is undergoing both business and personal problems that are present in the investments that have been made by both Jordie and Carlos. The issues have played a significant role in derailing the activities of the investments that have been made by both Jordie and Carlos. However, for the business to avoid undergoing liquidation, it will be highly convenient and relevant for the business to experience an in-depth evaluation to ascertain the problems that may have played a significant role in derailing the activities of the business partnership. The contracts and financial records of the pro-school and the club will have to be evaluated in this case with the aim of ensuring that the loopholes that are present in the organization can be identified and suitable strategies created to provide that these problems do not lead to the partnership business to suffer from a potential liquidation.

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People Problems

In analyzing the problems that are related to the partners of the business, it is quite evident that the partners have severe problems that need to be evaluated and a potential solution to be created to mitigate these problems. The first problem that is related to the partners of the issues is associated with the level of commitment that the two partners have towards the pro-school and tennis club. In this case, it will be highly essential for the Jordie and Carlos to exhibit a high level of commitment for the business to progress in the unforeseeable future and avoid potential liquidation. Carlos is not reflecting a high level of responsibility towards the business. Carlos has left all the obligations that of the businesses to Jordi. However, partnerships tend to rely upon the division of roles for the partnership business to remain relevant in the market. Jordie and Carlos need to divide functions between each other with the primary aim of ensuring that the partners are fully committed towards the course of the business. The level of commitment will also ensure that Jordie and Carlos are in control of the operations that are occurring in both the ''pro'' school and tennis club.

The other problems that are related with both the partners of the business are due to the lack of accountability in the financials of the pro-school and tennis club. The difficulties are vividly indicated as both Jordie and Carlos tend to frequently withdraw funds from the petty cash account whenever they have a financial need that they want to be supported. However, it seems that the permanent withdrawal of funds from the petty cash account is hurting the business rather than building the business. The two partners need to ensure that the petty cash account that has been integrated towards the operations of the business partnership is only withdrawn for the sole purpose of the business. The petty cash account system also needs to have receipts to account for all the transactions that are affecting within the petty cash account. However, the business habits of withdrawing funds from the petty cash account for personal use will play a significant role in increasing the overall losses that are being incurred by the business partnership.

The other situation that is affecting the partnership of the organization is lack of a salary structure for the partners. The partners as indicated have frequently been withdrawing cash from the accounts of the business without recording tee transactions in their journals and ledgers. However, in this case, it will be highly suitable if the business partners both Jordie and Carlos allocate themselves monthly salaries. The monthly salaries that will be withdrawn from the business accounts will need to record in the books of the business with the primary aim of ensuring that there is accountability on the funds that are withdrawn from the business. The business partners are incurring the extra costs should also be recorded into the books of the partnerships with the primary aim of ensuring that there is a high rate of accountability in the operations of the business. The partners will also be tasked to have standard expenses that will be used by the employees on occasions where the partners are tasked to attend the tennis trips. The expenses should also be accompanied by receipts which will be maintained in the journal books of the business partnership with the aim of ensuring that there is a sense of accountability on the operations of the business partnership.

Business Problems

Jordie and Carlos need to assess the lease contract that they are subjected to oblige for them to acquire the lease successfully. The agreement suggests that the partners are required to inherit the employees that are present in the space that is to be leased by the Jordi and Carlos. In this case, Jordie and Carlos should decide to retrench Manuel and Alejandro before 9th December as they are not sure of the stability of the business rather than wait and to retrench the employees after 9th December. Retrenching the park employees before 9th December will subject Carlos and Jordi to pay EUR 4000 whereas when the relieve employees they will be subjected to pay EUR 55000. The strategy will play a significant role in ensuring that Jordie and Carlos can save EUR 51000 that they might incur when they decide to relieve the employees after 9th December.

In analyzing the content of the contract about the lease, it is quite clear that the partnership will suffer severe losses in case the owner of the property decides to sell the property. In this case, Jodi and Carlos had invested EUR 38000 in refurbishing the premise. The business partnership will manage to suffer losses if the owner of the leased property decides to sell the property. However, if the owner of the property decides to sell the park during the second year, the business partnership will suffer loss worth EUR 9500 whereas during the third year the business partnership will suffer a loss worth EUR 19000 and the other year the business will manage to suffer a loss worth EUR 28500. However, in this case, it will be highly essential if the owner decides to sell his property, the partnership should be compensated all the cash that has been invested in the park.

The business partnership has no formal financial control system that might play a significant role in determining the financial soundness of the business. Currently, Jordi and Carlos are operating on perceptions about the profitability of the ''pro'' school and the tennis club. Financial controls need to be implemented by Carlos and Jordi with the primary aim of ensuring that both the Pro school and club operate differently with the aim of reducing the cases of the ''pro'' school covering the costs of the club.

In analyzing the expenses that were incurred by the business partnership, it will be more suitable for the business to settle its expenses on a monthly basis. In this case, the business partnership through the strategy will be able to have a more proper manner of handling the costs incurred by the business. The costs that are incurred can also be easily be accounted for by the Jordi and Carlos and records traced by the business partners. The revenues that are being attained from the club and the pro classes can easily be classified by the partners and thus can easily be able to determine the profitability of each of the businesses. For example, the revenue that has been attained from the pro classes was EUR 5000, and an additional EUR 1000 for the class sessions and that of the club were EUR 9000.

The Alternatives

In analyzing the current state of the partnership, the most suitable thing for the partners to do is to continue with the partnership. Liquidating the business will play a significant role in ensuring that both Jordi and Carlo incur losses as the value of the assets which is EUR 5000 is lower than the actual amount of assets that they used to acquire the properties at the beginning of the financial year of business partnership. The business partner should also consider buying out space as it is more convenient than leasing out the property. The actual value of the property was EUR 900000 whereas the total actual cost of the lease for the eight years is EUR 576000 which also means of approximately four more years the business partners will be able to own the space permanently.