New business on wine Essay Example | Topics and Well Written Essays - 1750 words

New business on wine - Essay Example This paper provides a clear picture regarding the possible name of a new business on wine. It also includes the details of the partnership agreement that can be followed by the partners who are going to buy the vineyard It also includes the details of the partnership agreement that can be followed by the partners who are going to buy the vineyard. Furthermore, a proper mission statement is also developed based on the current situation of the company. A list of objectives and a proper SWOT analysis is also included in the paper in order to help the management in the decision making process. Introduction In real business world, if noticed carefully, it will be found that most of the businesses irrespective of their size and nature are actually the result of partnerships of two or more individuals. In case of most of businesses starting point was a partnership. However, turning a partnership into a big business is one of the most challenging tasks in the world. There are number of activ ities and decision making processes that are involved in the entire process. Perhaps the first major activity for starting up a business is choosing an appropriate name that will give a brand identity to the business. This paper is all about such a business that is likely to be concentrated on a vineyard and the wine produced from it. The business needs to be given a proper name and hence the paper includes a suitable name for it. Furthermore, an appropriate partnership agreement that can be followed in conducting the business is also provided in the paper. Over the years it is observed that businesses succeed or fail on the basis of various strategic decisions that are made by the management. However, prior to making any strategic decision, it is very important to analyze the internal and external environment of the company. Hence, the paper includes a proper SWOT analysis for the vineyard business. It also includes the possible mission statement and a list of some major strategic objectives that are required to be met in order to have initial success. Task One The partnership business on vineyard is hereby given the name of ‘Azinert’ which is a combination of last two-three words that are taken from each of the existing product categories – Shiraz, Chenin and Dessert Wine. This will be the new brand identity for the business in upcoming years. All the products that will be produced will be sold under the brand name of Azinert. Task Two Legally a partnership is referred to the relationship between the individuals who are involved into common business with the objective of sharing profits. Usually more than a single party is involved in a partnership and partners must have to agree various terms and conditions which are the pillars of the partnership (Kimuda, 2008). The partnership agreement, in case of Azinert will be made on May 15, 2011. The partners are likely to contribute the capital in the form of cash. There will be a separate capit al account for each of the partners. None of the partners will be able to withdraw any portion from his capital account. Based on the demand of each of the partners, the capital accounts will be maintained in a certain proportions in which profits and losses are shared. The net profits as well as the net losses will be divided equally among the partners. There will be a separate income account for each of the partners. Profits or losses will be either credited or charged to the each of the income accounts. In case the income account does not have enough balance, then losses will be charged to the respective capital account (Internet Legal Research Group, n.d.). As far as the salaries are concerned, there will be no such thing for any partner for any services that are rendered. However, partners are allowed to withdraw the required credit balance from their respective income account. Furthermore, no interest will be credited on the initial amount of capital neither there will be any interest on the any subsequent