Australian Business Laws in the Bee Keeping Sector - Case Study Example

Name: Tutor: Title: Business Case Course: Date: Table of Contents Table of Contents 2 Introduction 2 Analysis 3 Stakeholders 3 Rival Bee Farmers 3 The Clients 4 Health and Research Agencies 5 Australian Business Laws in the Bee Keeping Sector 6 Business Structure 8 Strategies of Dealing with the Competitors 9 Recommendations 12 Conclusion 14 Introduction Setting up a business is a complex task that requires profound considerations. It is important for the business manager to make a critical analysis of the business environment before starting any operation (Barlett, 2008). All the stakeholders should also be known and the role they play should be noted. Some of the business environments are harsh and new business owners will find it quite difficult to start a business. They may be frustrated by the competitors who have been in operation for a long time. In some instances, the new business may come up with new products that have not been used by the customers before. The products may have positive or negative impacts on the business. If the product has not been tested and it results to any negative outcome to the customer, the business owner may be sued. It is thus important to fully understand the business laws to avoid legal battles (Armstrong, 2006). On the other hand, it is important to establish a good relationship with the stakeholders so as to avoid confrontations. The paper therefore, discuses the aspects of a new business in relation to a bee farmer who has discovered a new method of breeding bees but is worried about some issues that may affect his business. Analysis Stakeholders Rival Bee Farmers Grizzle who is the farmer has a lot of concern regarding the reaction of the other bee farmers. Since his method id more efficient as compared to the other farmers, it may cost him a lot. He is also concerned that the other farmers may decide to burn down his farm due to the threat he poses to them. His fears are very real as rivalry in business can be quite costly. In a business environment, each competitor would always want to be better than the rest. Some of the competitors are usually aggressive and may use unethical means to discourage the new businesses (Hillman, 1997). It is therefore likely that the other bee farmers may not be friendly to Grizzle. It may lead to a situation where the other competitors may gang up against him. This is because he is the only one who has the new technology. On the other hand, some of the farmers may want to steal hi new innovative method of breeding the bees. Once the competitors have the new technology, then he will not benefit from it. The rival farms are therefore a major concern fort him as they may end up costing his business. It is also likely that they will not welcome his new innovative method as it may affect them in terms of competition. It is thus important for him to device better means of dealing with the hostility from the rivals. The Clients The clients are the main stakeholders in the case study. This is because the business mainly relies on the clients for it to prosper. Without the clients, it is impossible to operate any business. The reaction of the client concerning a new product determines whether the business will be successful or not. Since he is the only one who has tasted the new product, it is likely that it may generate different reactions from the clients. For a product to be successful in the market, it is important for it to be fully analyzed by experts. This will give full details of the contents of the product and the possible effects. The new product may be costly to him if it has side effects on the clients. According to the business laws, he can be sued and pay for compensation. The reaction of the customers is thus very important for the success of the business. The reaction of the customers will also determine the actions of the competitors (Sheffrin, 2003). If the products becomes successful and does not cause any effects on the customers, then the competitors would want to know the new innovation. On the other hand if it causes any problems to the clients, then the competitors would benefit. Customer satisfaction is thus very important in the situation and may impact positively or negatively on the business. However negative responses from the customers will greatly cot the business. Health and Research Agencies The government health and research agencies are also stakeholders in the case study. The health agencies are responsible for the safety of the consumers. It is usually their job to determine whether a particular product is safe for consumption or not. The health agencies are also interested with the side effects that the product may have on the consumers. Grizzle should thus liaise with the health inspectors to determine how safe his new products are. Failure to this may result to serious consequences if the customers are affected by the product. It is also the responsibility of the bee farmers to ensure that their products comply with the health requirements before selling it to the consumers. This makes the health agencies important stakeholders in the scenario. The research bodies dealing with bees and their products are also important stakeholders. This is because they are directly responsible for the development of the sector (Wezel, 2009). Any new ideas are also important to the agency for the purpose of developing the sector. However, these stakeholders may disadvantage Grizzle once they know the concepts of the new technology. This is because it may lead to publication and hence the other farmers will be able to aces the information and use it freely. However, thuds will only be possible if the products are fully accepted by the customers. Australian Business Laws in the Bee Keeping Sector The laws in Australia concerning business are mainly for the purpose of ensuring that the business owners comply with the regulations. The regulations vary from one sector to another. However it is important to note that the laws are for the purpose of protecting the consumers from any form of exploitation. The laws require that the honey should undergo the necessary testing before it is sold to the consumers. This is important for the purpose of establishing the contents of the honey. Some of the chemicals that the government feels should be tested for are outline in the laws (Boero, 2003). It is illegal for the honey to contain some of the chemicals which may cause harm to the consumers. Grizzle should thus put this consideration before establishing the business. The laws also outline that the honey that does not meet the required standards should be destroyed. This is mainly for the purpose of preventing the product to reach the .consumers. Although Grizzle has made his own discovery, it is import for him to ensure that the products undergo the necessary testing before it is sold to the consumers. This will enable him to know the contents as well as the effects that it may have on the consumers. The laws also require that the products should be labeled before being sold to the consumers. This is an important aspect of the business as it directly affects Grizzle. Due to his research, it is important for him to label his honey so as to enable the customers to know the contents of the honey. This exercise is also very important as it will ensure that he customers are aware of the contents before purchasing it. Labeling of food products is important as it saves the business from legal battles incase of side effects on the consumer. The compliance to the regulation is very important as it will avoid problems with the law (Centre for International Economics, 2005). If the products are labeled, it will be easier for the customers to differentiate the original from the fake products. This is due to the high importation of honey in the Australian market. Labeling also differentiates the products of one company from the other. The competitors will thus be disadvantaged if the products are labeled as the customers will easily identify the products of their choice. On the other hand labeling is also important as the customers will be provided with the full information regarding the product and its contents. It is also a requirement by the law that a company or a business enterprise should be registered (Nickolas, 2010). Grizzle should thus ensure that his company has a license after the registration process. This requirement is a must according to the Australian laws. Failure to register a company or a business enterprise may result to penalties that may be severe. During the registration process it is important to analyze the categories of the business so as to register the right category. Recognition is gained once the business enterprise is registered. The farmer will also be able to operate freely without any fear as the registration makes the business enterprise legal. On the other hand the customers will always want to be associated with legal business enterprises. This is therefore a benefit to the business in terms of attracting more customers. The compliance to the laws and regulations is thus very important for the business. This is for the purpose of avoiding paying fines which may lead to bankruptcy. This is a fear that Grizzle has and it may impact him and his business negatively. The business will be in a position to expand if all the legal requirements have been met. Business Structure Choosing the right business structure is very important for any business enterprise. This process requires a clear analysis of the market situation in order to come up with the right structure (Menon, 1999). A right business structure ensures the prosperity of the business in a competitive environment. Grizzle should thus choose a sole proprietorship structure for his business. This structure is relevant in his case as he is the owner of the business. Being the owner means that he will be directly responsible for all the operations of the business. This will give him the powers to make any decision regarding the operations of his business. Since his breeding technology is unique to the other farmers, sole proprietorship will ensure that the competitors do not obtain the information regarding his technology. The new breeding technology may end up being successful and hence a high rate of customer satisfaction. Keeping the secrets of the new technology is thus very important to the business. This will ensure that his competitors do not benefit unfairly from his innovations. The only way to achieve this is through sole proprietorship as he will be in total control of all the business operations. Forming a partnership should not be done at this stage the partners may end up revealing the secrets of the new technology. Sole proprietorship is relevant to the situation facing Grizzle. This is due to the benefits that the business structure has. Sole proprietorship ensures that the owner enjoys all the profits. This is important for Grizzle as he had done the research about the new breeding technology personally. Enjoying all the benefits is thus an advantage to him as it is a motivational factor. The government regulations concerning the sole proprietorship business structure are not strict. Compared to other forms of businesses, the government regulations are friendly to the sole proprietorship. On the other hand, it is important to note that the decision making process will be totally dependant on the manger of the business. This is an important measure in terms of reducing errors in the business. This is because the owner will only make decisions that are relevant to the business depending on his situation. Incase the business enterprise does not succeed, then it will be easy to bear the losses as compared to the other forms of business (Chekitan, 2005). It is also easy to acquire the necessary certification under the sole proprietorship as compared to the other forms of business. The amount required to pay for the licenses is low as compared to the other forms of business. This is therefore an advantage to the business owner. Strategies of Dealing with the Competitors The biggest threat to the business is the competitors. This is because the rival farmers do not have the technology that Grizzle has. The use of the new technology may be successful which will definitely be a disadvantage to the competitors. It is therefore important to come up with methods and strategies that ensure that the competitors are beaten. Analyzing the competitors should be the first step for Grizzle, This can done through observing their trends ands their methods of operations. The quality of their products is also an important aspect that should be analyzed. The analysis will give a clear picture of the market environment and thus enabling the business manager to come up with the relevant strategy. Since the rival farms will be interested with the new technology, it is important to ensure that the methods of advertising the products do not reveal the secrets of the business. However it is important to make decisions after the process of analyzing the market environment and the steps being taken by the competitors (Rakesh, 2005). The process of analyzing the market situation should be done in a proper and accurate manner to avoid any mistakes during the decision making process. It is also important for the business to know the clients. This should also be done through analysis of the purchasing trends. Since the innovation may be good and useful to some customers while it may affect other customers, it is important to treasure the customers. Grizzle should thus ensure that the customers are well taken care of in order to maintain them. This is an important strategy in terms of dealing with he competitors. Due to the concerns raised by Grizzle, the support of the customers will play an important role. Massive support from the customers will ensure that the competitors do not plot any mischief that may affect the business. It is therefore important for Grizzle to ensue that the needs of the customers are well taken care of. This can also be done by asking the customers how they feel about the product. Their concerns should be put into consideration during the operations of the business. Other innovative means an also be used for the purpose of maintaining the customers. The quality of the product should also be enhanced so as to avoid court battles that may lead to bankruptcy. This can only be achieved by ensuring that the needs of the customers are well taken care of. Any complains by the customers should also be taken seriously so as to make the necessary improvements. The next step that Grizzle should take against the competitors is to strategize how to beat them. This can be achieved through utilizing various methods of advertising for the honey (Gordon, 2003). Advertising is important as it tends to make the customers aware of the products being sold in the market. This is because the product that has been developed by Grizzle is still new in the market and no one has ever tasted it except himself. Advertising the product will thus create awareness which is important in terms of attracting the customers. However it is important for the information about the new technology to be kept secret during the advertisement. This is for the purpose of preventing the rival from stealing the new breeding technology. It is also important to put up other strategies that will ensure the competitors do not harm the operations of the business. This is because the rivals may tend to be jealous of the new technology and thus sabotage the business. It is also important to be in good terms with the rival farms despite the competition. This will play an important role in eliminating any tension that may develop incase the product becomes successful in the market. Adjusting the business is also very important for the prosperity of the business. This is because the honey produced may lead to varied reactions from the customers. Some of the customers are likely to be affected by the product due to allergies while other will not be affected. It is therefore important to put into consideration the measures to be taken incase the customers are affected by the product. The prices of the product should also be flexible enough in order to meet the demands of the customers. This is an important strategy that ensures the customers are attracted to the business. Affordability of the product is very important in the market as most customers may not be able to cope with high prices of commodities. Since the competitors may turn jealous and harm the operations of the business, it is important to put in place security measures to prevent any loses. Insuring the business is thus an important requirement for the farm. This will ensue that the business is well protected incase of any uncertainty. Financial losses will also be averted by insuring the farm. On the other hand, it is important to ensure that the market trend is observed and innovations be made on a continuous basis. It is however important to note that the business has an advantage over the competitors due to the uniqueness of its products. Recommendations Due to the challenges that the business may experience, it is important to put in place measures that will avert the problems. The business laws are very important and should be followed strictly. This will solve part of the problem that may face the business. Total compliance is required in order to ensure the business does not suffer any penalties that may attract fine. The payment of fins may lead to bankruptcy as the business is still new. It is also important to ensure that the business is registered with the relevant authorities. Registration of the business ensures that the business is able to operate legally under the protection of the law. It is this important to ensure that the health experts are consulted before the product hits the market. This ensures that the customers are not affected by the honey being produced by the farm. The health experts will also play an important role in determining the contents of the honey. This will greatly solve the problems of customers being affected due to allergy. Consulting the health experts ensures that the contents of the products are well known to the customers. This is important in guiding the choice of the customers. However, it is important not to reveal the secrets to the experts concerning the new breeding technology. Grizzle should adopt the sole proprietorship business structure. This is for the purpose of protecting the new technology from being copied by other farms. It is important to ensure the rival farms do not have any information regarding the new breeding technology. On the other hand it is also recommended that Grizzle should register with the government agencies that deal with the research on bees. This is for the purpose of ensuring that the innovation rights are not claimed by someone else. It is also recommended that a strong customer care initiative be developed by Grizzle so as to beat the rival bee farmers. This is because his business is still new and requires attracting customers. The customer care initiatives are very important and should be given the first priority. This is due to the importance of the customers to the development of the business. Although the new technology is advantageous, poor customer care will lead to the fall of the business. It is also recommended that all the legal requirements should be met by the business so as to avoid any confrontation with the authorities. The business should also ensure that the complaints from the customers are dealt with immediately for the purpose of creating a good relationship with the customers. The business should also be insured for the purpose of avoiding losses. This is because the rival farms may decide to burn down the farm if the initiative becomes successful. Incase the business is not insured, Grizzle will be forced to bear the losses alone. The insurance policy is also important and may assist the business incase it is sued by the customers. It is also important for Grizzle to ensure that the farm does not incur losses due to avoidable reasons. To avoid being sued by the customers who may be allergic to the products, it is important for Grizzle to ensure that the honey is well labeled. This is important in creating awareness among the customers regarding the contents of the honey. This should however be done after the health experts have carried out an analysis on the honey. The initial investment on the business should not be too high. Instead, the investments should be injected in the business depending on how it performs. This is for the purpose of avoiding huge losses incase the business performs poorly in the market. Depending on the performance of the business, the new technology should be used purely for benefits of the business. Exporting the new technology also has negative impacts. Although it may not affect the internal market, the rivals may end up with the technology in the long run. Conclusion In conclusion, staring a new business is a very challenging task. It may have a lot of difficulties during the initial stages due to various factors. The competitors may prove to be hostile as the new business may come up with new products. On the other hand it is also evident that the customers play an important role in the success of the business. This is because their reaction towards the product determines whether the business will be successful or not. Negative reaction from the customers will lead to the poor performance of the business. It is also evident that the failure to comply with the government regulations may automatically lead to penalties. The penalties may be very costly to the new business as it affects its revenue. The strategies that are required in order to beat the competitors are very important for the business. The strategies can also be used for the purpose of attracting the customers. However it is also evident that the strategies should be well planned in order to ensure that it works positively on the business. Insuring the business is also important for the purpose of ensuring that the business does not suffer losses incase of accidents or destruction by the competitors. It is also important to make a clear analysis of each stake holder so as to make proper decisions regarding the operations of the business. It is equally important to maintain a good relationship with each stakeholder for the benefits of the business. Bibliography Nickolas, J, 2010, Business Law, 1st Australian ed., John Wiley & Sons Australia Ltd. Thomson, M, 2007, Transcript of Evidence, RIRDC p. 6. Boero, R, et al, 2003, Honeybee industry survey, RIRDC Publication. Centre for International Economics, 2005, Future directions for the Australian honeybee industry, CIE, Canberra. Gordon, J, et al, 2003, Valuing honeybee pollination, RIRDC Publication no. 03/077, pp. v–vi. Rakesh, M, 2005, International Marketing, Oxford University Press, New Delhi and New York. William, S, et al, 2005, Strategic Management and Competitive Advantage: Concepts, Pearson Education, Inc., Upper Saddle River, New Jersey, 07458. 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