Partnership in Business: Zeo Inc. - The Company of Concern (Term Paper Sample)

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This paper addresses the issues of forming a company with friends, with the Zeo Inc. being the main company of concern. It elucidate the advantages of founding a company with friends and these include setting up the tone of the culture, good understanding of each other’s strengths and weaknesses and overcoming the different challenges of entrepreneurship. Disadvantages of forming a company with friends that include difficulty in taking orders from a friend and the presence of similar networks are also discussed. The founders of Zeo Inc. identified the board of directors by mapping both internal and external stakeholders. They explained to them the potential benefits of their systems to individuals with non-medical sleeping problems and the benefits they would gain as members of the board as a way of enticing them. Since the founders wanted to expand their products and also acquire individual management skills, seeking a new CEO was important. As the company evolved, the roles of the founders had to change, with each of them playing a different role within the company. Further, ways of maintaining the culture by a business professionalizing a large top management team are discussed. They include promoting shared beliefs, managing communication and involving employees in the company’s decision-making and problem-solving activities.
In the United States, nearly 1.8 small businesses were classified as partnerships in 2014.Either
Families or friends formed these businesses. A large number of these companies were successful.
Only a small percentage of these companies failed. Forming a business with a friend you have
The GOOD, BAD, and THE UGLY! Good: You have a friend in the trenches; your friendship sets
The tone for culture; you understand each other’s strengths and weaknesses .Bad: you have similar
Networks it’s difficult to take orders from a friend; it’s easy to take advantage of the
Friendship; you don’t want to hurt each other’s feelings .Ugly: The stress of failure is
Compounded by nature of friendship one will tend to have with others; failed businesses can lead to broken friendships, and vice-versa .A good example of a company formed by friends is the Zeo Inc. which was founded by College friends in 2003. The company makes health products used for sleep management. This paper will focus on explanation of the advantages and disadvantages of founding a company with friends and the ways used to identify and entice them to join the board of directors by the founders of the Zeo Inc. further ,seeking a new CEO by the founders .
Through forming accompany with friends it will bring immense advantages to the company as follows:
Trust is built among individuals as each individual is in position to perform different tasks in the organization as it’s always based on the skills one has.
The new ideas from different individuals can be incorporated into in the organization hence productivity of the organization greatly increases this gives accompany an opportunity to be able to satisfy the needs of its customers
It also filters decision making down to all levels of management hence this gives all the founders and new members an opportunity to participate in decision making processes in an organization. Hence this will tend to give an organization an upper hand in the global markets.
Most of the member’s primary attention tends to be shifted to business development and relationships that will help in the growth
The demerits involved includes: Reaching to concrete decision stands to be a major challenge since the process becomes more complicated, this brings a problem when there is need to address a large customer market.
It dictates the decisions to be made when appointing top experien...