Legal and Ethical Environment of Business †MyAssignmenthelp.com

Question: Discuss about the Legal and Ethical Environment of Business. Answer: Introduction In relation to the case study, James and the family have mostly made considerations in terms of finance leaving other very crucial factors which when overlooked may lead to difficulties while expanding the firm. The decision to expand a firm requires accurate consideration of various factors which starts with the identification of unexploited opportunities which have been well considered, financial factors, operational factors as well as emotional readiness. Most of the above factors have been well considered by James, however, some of the factors have been overlooked: Expansion of any venture requires maximum dedication and commitment as every good thing comes out of dedication and perseverance of pain. Even though James has effortlessly tried to convince the partners, he needs to do more to convince Dave and the accountant. This is because expansion of the firm will require the team to be willing to do what it takes to make the project a success just as his mother (Ferrera et.al 2014). Dave and the accountant must be convinced to be ready to take extra responsibilities, be able to work extended hours and must be willing to accommodate the extra three employees who are yet to join them as part of the expansion team. Since this is missing and management of all the new ventures have been left for James, he must therefore ensure willingness before starting the whole process of expansion. Economic condition is another factor which James have not considered mostly in his project of expansion. Even though the firm has no capability to regulate economic conditions, James should be aware of its effects on the expansion plan (Sofat 2016). He should however try come up with accurate forecast of interest rates, inflation as well as other factors which are likely to ensure the success of the expansion. Market share and strategy While venturing into new areas like James planning to enter into steel products, he should be aware of his clients as the firm may be in trouble when the market is composed of just a few customers. In market situations where customers are just a few, the firm can suffer when all decide to switch the competitor (Sofat 2016). James and the colleagues should come up with a robust marketing strategy which can help the organization get and hold on the identified customers. James has to expand his market research and identify whether the product they want to venture in has high demand. According the provided case study, James has concluded various additional costs in the expansion, however, apart from normal business costs, he should include outlays such as taxes, employee benefits, holidays as well as other costs related to absenteeism, insurance liabilities as well as training of the new employees (Ferrera et.al 2014). Conclusion Business growth and expansion is not an easy task and it requires massive effort as well as time to achieve. As a friend to James, the first thing I must let him have in mind as an entrepreneur is that, expansion of the business will only make sense when the current project is shaping up right towards the optimal and potential level with straight line success. And for this to happen he must also consider the above mentioned factors. Reference Ferrera, G. R., Alexander, M. M., Wiggins, W. P., Kirschner, C., and Darrow, J. J. 2014. The legal and ethical environment of business: an integrated approach. Sofat, R. 2016. Strategic financial management. [Place of publication not identified], Prentice-Hall of India.