The paper "Analysis of the Critical Elements Required in Running a Business - TZ Limited " is a great example of a business case study. The process of operating and running a business involves a lot of procedures and processes which require strategy. As a result, one has to come up with a formulation and evaluation checklist. The formulation and evaluation of business are important tasks that are undertaken for purposes of auditing, shareholder value and meet business requirements. This essay is going to analyze the critical elements required in running a business and how these elements have been implemented by an Australian company. Critical Evaluation TZ Limited is a company incorporated in Australia that deals in technology products with presence in different markets.
The company has been in operation since 1986 when the company was formed to sell intelligent fasteners and since then the company has grown through different challenges and successes. For businesses such as TZ Limited, there are certain business elements and requirements that must be met to ensure the business grows and overcomes challenges within the business environment.
Some of the key elements that must be formulated and evaluated within businesses include; Financing: The TZ Limited operates in a competitive industry that requires a lot of financing especially in relation to innovation. As a result, the company has met certain capital and financing requirements. For instance, the company is listed in the ASX (Australian Stock Exchange) and thus it must maintain the capital requirements set by the regulator. Moreover, the company can make use of position in the ASX to fund its activities through rights issues, bonds and loans against its business.
For instance, in the year 2008, the company has secured a $ 24 million funding from hedge fund QVT (Hill, 2009). Legal framework: Companies must operate within a set legal framework and this includes all laws governing on business within the different jurisdictions. In the case of TZ Limited, the company has been legally registered in Australia and other regions including the United Kingdom, United States and Ukraine. For instance, some laws such as the Australian Corporations Act has been enacted as part of the company’ s legal framework (Lawson, 2010).
In the case of TZ Limited, the company has ensured it meets all these legal regulations and it has gone ahead to patent its technology and products based on internationally recognized intellectual property rights. Labour requirements: Businesses must adhere to laws and regulations which look into the welfare, remuneration, hiring and firing employees. TZ Limited has implemented and met all the labour laws in the regions it operates from. Having a good labour framework ensures that companies can produce over a long period of time without problems or interruptions (Porter, 2012). Internal controls: Companies should have an organizational framework that looks into the operation and running of the organization.
These controls include finance control, audits and human resources which look into the interests of shareholders. TZ Limited has implemented internal controls but they were weak and thus, the company has been faced with challenges of fraud. For instance, in the year 2008, the company’ s shareholders were dissatisfied with the board of directors and thus there was a need for replacing the board (Hatten, 2011). Weak internal controls within the company allowed for funds amounting to around $ 17 million being lost in unclear circumstances.
Moreover, for listing on the ASX requires that companies meet certain internal controls such disclosure of financial records. Most of the internal controls are meant to fulfil regulations set by regulators such as meeting environmental laws, protection of information or import and export laws (Bidgoli, 2011). External evaluation: It is important for companies to engage external experts in different fields such as finance, IT or health to undertake several tasks such as auditing or occupational health or information technology consultancies.
For instance, in the case of TZ Limited the company must consult auditors or external evaluators so as to meet the regulation for financial disclosure meant for public companies. Having external evaluation is very important in ensuring the businesses run legally and meet organizational strategies (Hill, 2009). Technology: In the current business environment, it is vital for businesses and organizations to leverage technological systems in the process of undertaking business activities. TZ Limited is a technology company and thus, it has implemented smart business systems which they have used on communication, selling and innovation in terms of control over their distributed operations located in different global locations (Stokes, 2010). Innovation: Companies such as TZ limited who have a business in the technology sector should have a strong bias on innovation as the key driver of their business.
This would make the company more competitive in the fast-paced sector. In terms of innovation, TZ Limited has patented the technology of intelligence fasteners and this allows their technology to be protected against intellectual property rights theft.
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