'Darlings Chocolate\r'

' wherefore do you think colonel costly chose repair trader as a form of seam organization and when and wherefore might his comp whatsoever have baffle a partnership. Joshua high-priced was a retired armament colonel, who returned afterward the army to Liverpool, where he was born, consecrateed a chocolate grind and set up his own work as a sole trader in July 1933. wherefore colonel Darling chose a sole proprietorship as a form of business organization? firstborn of all, a sole proprietorship was suitable for his personality as he could be his own boss, go along and motivate people, make independent decisions and be only if responsible for all aspects of the management of his business.Secondly, after returning from the army to Liverpool, he didn’t have any person to trust in and to help. Thirdly, a sole proprietorship can be set up with little or no money in the business and there atomic number 18 no level-headed formalities to establish the beau monde. Be sides, sole proprietor is not subject to public report and the books reflecting the results of his business were secret and competitors wouldn’t use it to their advantages. The colonel’s decision to open the manufacturing plant came at a eon of high school unemployment and economic slowdown in Liverpool.Darling used it to his advantages. in that respect was no difficulty in hiring suitable workers, so he could economize paying low wages. also there was no difficulty for Darling to launching the market. Sales figure showed that his chocolate was the orbit’s number one choice and near one-half the caller’s production of the brand was exported. Why was Darling so successful with his chocolate business? The chocolates were of the highest quality and contained only the finest ingredients.And the reason why Darling decided to start a chocolate mill is that he was unsatisfied with the quality of it. That is why, when his wife came forbidden with the i dea to establish a chocolate factory he took this opportunity. In 1940 Darling changed the form of his business and entered partnership with his son-in-law who had been in the family for 6 years by that moment and was a person to trust in. Besides, he could invest money into the company and contribute newly skills and add a new dimension to the business.Besides, a partnership has many advantages. firstlyly, it is easier to multiply sources of cracking. Also partnerships lots receive favored treatment by the governing as well as tax benefits. Secondly, separately partner can specialize in for each one aspect of the business or share the work. To join up, I can say that in the time of Britain’s mountainousst economic stagnation, colonel Darling managed to set up his own, a profit making business and scram successful. When and why might Darlings’ have become LTD, when did it go public, what were the reasons for it?By the time of middle 50-s Darlings’ had become a highly profitable company. Everyone in Britain knew the smiling stage of Colonel Darling which was on every box. Sales figures showed that they were the country’s number one choice. Darlings’ chocolates were more prevalent than those of other manufacturer because of their quality and prices. That is why almost half â€Å"The Colonel’s Choice” was exported. The company managed to meekness international markets, selling products to customers oversees as far as Australia and South America.As the market was becoming more competitive, Darling started to seek ways to expand and increase the company’s profitability and in 1956 decided to become the private limited company. It was suitable for Darling as it is usually family business owned by members of the family or close friends. Other advantages were that, first of all, there are no continuity problems. Darling was becoming aged(a) and he wanted to be sure that after his death business woul d be continued by members of his family.Secondly, it was beneficial for Darling to raise extra capital as there is no limit on the number of shareowners. Thirdly, the shareholders’ liability is limited to the nominal revalue of the shares held. In this way, by buying shares, a large number of people could contribute funds to the company without risking all their personal possession. Besides, control of the business cannot be lost to outsiders and shares can be transferred only with the assume of other members of the company.In 1963 Colonel Joshua Darling died and his daughter inherited the Colonel’s majority shareholding and controlling interest. That time the cost of carbohydrate and cocoa rose significantly, the company’s gross revenue started to drop. That is why in 1963 Mrs Windbourne decided to go public. First of all, it is easier to raise capital. Secondly, production costs may be lower as firms may gain economies scale. Thirdly, in case of liquidatio n of a company, each shareholder only losses the nominal value of his shares, so the property of the owners is immune. Besides, financial institutions are more ordain to lend to plcs.\r\n'