We’re
going to need additional investors and expertise to get this business off the
ground, Ravi says. We should develop a business plan that will be attractive to
potential investors and partners. They’re going to have concerns about joining
a new startup, Tanya says. We should work to address these from the start.

Ravi
looks to you. Can you prepare a PowerPoint presentation for potential
investors? Let them know what legal form the business is going to take and
explain why it works for our company. You should include your analysis on
personal liability, taxes, interests of contributing parties, and management of
the business. We want them to know we’ve done our homework.

Tanya
interrupts, the other thing is we have to decide what organization structure
would best serve our goals. That’s right, Ravi says. We’ve already identified
innovation and timely customer service as our top priorities for Sunburst. We
know we need staff to handle product development, production, finance and
accounting, and marketing and sales.

We’re
definitely going to need human resources functions, Tanya says. Outsourcing is
one option we should look into. We need to do some research before we make a
decision. Ravi looks to you again. I think we need to develop a clear mission
statement and an organization chart and explain the rationale for our decisions
in a short paper. You’re the most detail-oriented. You think you can handle it?

In this project, you
are determining the best legal form and organizational structure for your new
business. The nature of the organization’s business and the environment the
business operates in are factors you must consider. Initially, Sunburst will
operate locally, but within five years operations will go national (or
international). Read about how you might plan these stages inCreating and Managing a New Business.
(Ref 1)

In the first part of
this project, you will create a narrated PowerPoint presentation for potential
investors and partners in your new company. In this presentation, you will
analyze the pros and cons of various forms of business and recommend the best
legal form of business to achieve your organization’s goals.

In the second part
of this project you will design an effective organizational structure for the
business at its inception and in its next phase of growth. To achieve this,
you’ll need to create one short paper with three sections: (1) a brief mission
statement reflecting the primary goals of the business, (2) a detailed
organization chart, and (3) a rationale statement that explains and supports,
thoroughly but succinctly, the mission statement and structural decisions
reflected in the organization chart.

Step 1: Determine the Legal Structure of Your
Business: Gather and Analyze Information

You go to your office to begin
the task at hand—the preparation of a narrated PowerPoint presentation to
potential investors that will address all of the issues involved in making this
decision. For critical background information, see.equella.ecollege.com/file/3e4c6d8c-53d8-48a0-983b-5f45de39c024/1/CreatingSunburstLegalandOrganizationalConsiderations.html”>Creating Sunburst: Legal and
Organizational Considerations. (Ref 2) You will need this
information to make the best legal and organizational decisions for your
business.

Since one of the investors will
not be able to attend a presentation in person, you need to prepare and record
a narrated PowerPoint, so she can listen at her convenience. In order to
complete this task, you realize that you must do some research to address the
legal and strategic implications if your business is to get off the ground.

• What
  types of business organizations are available to entrepreneurs?
• What
  are the advantages and disadvantages of each alternative?
• What
  are the two best choices and why?
• How
  would you explain your choices to your investors?

Be sure to discuss the
following information in your plan (refer to Legal Forms of Business (Ref
3) before you begin writing):

• What
  are the different legal forms of business that you might consider? You
  remember that there are at least six factors that will influence your
  choice:
• creation
  and maintenance
• continuity
• ownership
  and control
• personal
  liability
• compensation
  and division of profits
• taxation
• What
  is your proposed choice for the legal form of business? Include your reasoning
  based on the preceding six factors and any other relevant factors.

When your research is complete,
continue to the next step, in which you will create the Powerpoint presentation
for your investors.

Step 2: Prepare Your Presentation

Using the information you
gathered in the previous step, prepare a PowerPoint with a transcript. Because
you will not deliver this presentation in person, it should follow the form of asynchronous
presentations. (Ref 4) Be sure to meet the following requirements:

• Include
  a title slide, with your name on it, introducing the presentation.
• On
  the presentation slides, include only the major bullet points for each
  issue.
• Include
  no more than 15 slides (not counting title page or references list).
• Cover
  all the elements of your plan as outlined in Step 1.
• Use
  your narration to provide the supporting rationale for each major bullet
  point.
• Include
  a script of your narration in the notes section of PowerPoint.
• The
  final slide must present a clear summary of your major conclusions and any
  recommendations.
• Include
  a reference page in APA format citing any sources you used to develop your
  presentation.

When your presentation is
complete, continue to the next step, in which you will gather information
about the potential organization structure for your business.

Step
3: Determine Your Organization’s Structure: Gather and Analyze Information

Now that you have
decided on a legal organization form for your business, which currently has a
single location, you need to decide on an organization structure. Organization
structure determines such things as what departments the organization will
need, who will report to whom, how many levels you will have in your
organization’s hierarchy, and how many individuals will report to each manager
(span of control). An effective structure should promote communication and
coordination of efforts across the entire organization. See:Organization Structure and Design.
(Ref 5)

You begin your
research by formulating a number of questions, the answers to which will be
reflected in a short paper that includes your mission statement, organization
chart, and your rationale for these recommendations.

1.
Sunburst’s primary goals are innovation and customer
responsiveness. How should yourmission
statement (ref 6) articulate these goals? How can this statement be
drafted so that it is clear, concise, and meaningful to organization
stakeholders?

2.
What key tasks must be accomplished in order to meet the
organization’s goals? What individuals or groups will have responsibility for
delivering these processes or items?

3.
Will individuals have titles and, if so, which individuals? What
will those titles be?

4.
To whom will individuals report? Why?

5.
What are the possible impacts ofoutsourcing the HR function (Ref 7)?
What are the pros and cons of doing so? Make a recommendation in your paper. If
you decide to keep HR in house, make sure its place in your business structure
is reflected in your organization chart.

6.
Consider all other relevant factors (for example, will your
business structure be functional, centralized, or decentralized, etc.).

When you have
formulated your preliminary thoughts and questions, begin your research. The
resources below are a good start, but you should also conduct your own research
to enhance your knowledge and the final product.

When your research
is complete, continue to the next step, in which you will write your short
paper, which will include a mission statement, organization chart, and summary
of the rationale behind your decisions.

Step 4: Integrate Your Thoughts and Material

You’ve formulated your key
questions; you’ve done your research; you’ve analyzed and refined your
information and thoughts. Now it’s time to put it all together and start
drafting your deliverable.

• Assemble
  a short paper that contains the following:
• your mission
  statement of no more than one paragraph
• your organization
  chart
• your
  rationale, no more than five pages (12 point type, double-spaced), for
  your chosen mission statement and organization structure as displayed in
  your chart
• Be
  sure to attribute any sources you use in the creation of any of the
  documents you submit.
• Include
  a reference page in APA format citing any sources you used in your short
  paper.

When your mission statement,
organization chart, and rationale statement are complete, continue to the next
step, and submit your work.

Step 5: Materials

• narrated
  PowerPoint with recommended legal form of business
• short
  paper including mission statement, organization chart, and rationale