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Managing Small Firms

The Awakening of the “Sleeping Partner” at U-Brand

Question 1.

Every new company started within a region calls for prior market research in order to weigh the feasibility of its commencement. Faisal and his friend Basheer ought to have taken an initiative to do a study on the new market where U-Brand was to be formed. Managerial structure is also a vital factor the key leaders ought to have placed. The company picked up very well and succeeded for some time. However, lack of a well established managerial structure caused the downfall of U-Brand.

The idea of starting U-Brand Company best fitted its existence in the UAE. The idea of establishing the business Sharjah, which was a free zone, was perfect and the right choice of venturing. However, choosing Dubai Media City, which was a counter part of Sharjah would be more effective if Basheer established the business within that place. There were a number of benefits attached to the choice; such as events and leisure licenses where promotional events could be held to attract more clients as well as media solutions. Setting up a company in free zones was also an exemption from all profit transfer as well as capital repatriation.

Question 2.

            Since Faisal Siddiq had become loyal to his employer and is already enjoying the benefits of employment, he therefore requested his wife Zainab Siddiq to be the sleeping partner. By doing this, his wife (Zainab) could enjoy corporate duties being a homemaker and as well to benefit from monthly payroll payments. Nevertheless, as Faisal’s plans never succeeded since the formation of the partnership was not fairly organized; therefore, Basheer had more benefits as compared to his partner. The idea of starting a partnership was initiated by Faisal, and later went to seek help from his old friend. Faisal therefore was entitled to ask for a larger profit percentage than a mere 50% (percent).

Basheer, a corporate partner ended up possessing Rolls-Royce, an image, a reputation and finally a title deed while Faisal ended up making significant losses that eventually affected the overall financial status of his family. Faisal possessed all qualifications that would suit him enjoy benefits in the company. Evidently, his resume indicated that he had worked as an accountant in a management consultancy firm and got three consecutive promotions. He also headed the finance and accounting department and by these work experiences, he served to be given priority than Basheer. However, the counterpart made many managerial mistakes but in turn posed high risk to Faisal.

Faisal ought to give critical thought and enough time to the business even if his wife (Zainab) was a sleeping partner in the portfolio. The greed of Basheer was a consequence of Faisal’s absence and lack of interest. If he had made contributions to the interest of the company on the managerial leadership as well as the structural decisions at the crisis emergency, the losses that were incurred at U-Brand would have been minimized. As stated by LaRose (2009), every decision and the responsibilities of each partner as well as the expectation need to be tabled by both partners regardless of the nature of the partnership at its start. Basheer made sure that Faisal was shut out of the decision-making panel during the Company’s formation.

The two partners contributed to the downfall of the U-Brand Company. In fact, they relied so much on their tight relationship and opted to be a guarantee for the success of the U-Brand. However, their expectation never worked out for the best interest. The friendship tie built their partnership just for a period, but Faisal’s lack of involvement worsen the future stability and performance of U-Brand Company in a long-term basis. The trend that they formed led to a culture of negligence of which other members portrayed in the company.

Saloni and Rathod, who were employees at the company and held work responsibilities, barely reported to the office to attend to their daily duties. These workers lacked motivation and could not allow space for innovation. They did not also give chances to make other contributions related to work that in turn made other employees feel neglected. The culture that was there before was encouraging and every individual could feel motivated, and work happily with each other, rather than a new culture of neglect that encourages a habit of carelessness and lack of dedication to work.

Question 3.

            Indeed, Basheer made mistake in all managerial roles i.e. in planning, controlling, organizing as well as leading. Based on his delinquency in planning, he failed to make the best timing to choose the best environment that could favor the existence of U-Brand Company. Planning for the Company’s set up required a market test research on the feasibility of the U-Brand existence amongst other marketing and advertisement companies that could offer competitive advantages. The global expansion of U-Brand could not fit, being a new business in the market and based on the financial crisis. The plan for recruiting managerial key positions where he placed both Saloni and Rathod in high hierarchical positions was not right too.

            Secondly, Basheer failed to monitor and control the quality of work. All the financial benefits he was entitled to blinded him. Clear evidence seen through the scandal of AnimeFirst project that was not given priority and first thought until it turned to a disappointment and later ruined U-Brand image and the company’s account. It is indeed evident that proper control was not practiced. Basheer also failed to maintain the initial culture that all employees possessed due to lack of control systems. A new culture that introduces new top officials; Solani and Rathad took control, which eventually imposed an adverse impact to the company. There was no control on the recruitment process of employees just in the case of Aamna’s position on her attachment period with the enterprise. The company’s book of accounts i.e. the income and expenditure were not adequately controlled, which led to the downfall of the enterprise.

            The entire work schedule ought to be delivered on time if Basheer could have organized the process to flow. The manager did not arrange a hierarchical flow of work by individuals, therefore, was even rigid to allow Aamna to work freely within the media section in the company. Consequently, as a leader, there should be a form of leading by example by the key managerial officials (Schraeder, Tears & Jordan, 2005). The cash that the company required for upgrading was used recklessly on projects that were unnecessary at hand. He did not also welcomed grounds to accept different ideas from members that would help salvage conditions during critical situations. Basheer, notably failed to listen to an advice Zainab had about the worries of the company experiencing recession. The working environment for employees never favored their duties thus led to a go-slow. Moral support, as well as financial incentives, were not accorded to members, which resulted in low productivity in the company.


LaRose, G. (2009). N.O. Business Organization mixed on N.O. Mayor’s decicion to suspend the formation of a public-private partnership for economic development. New Orleans City Business. Retrieved from: <>

Schraeder, M., Tears, R., & Jordan M. H. (2005). Organizational culture in public sector organizations: Promoting change through training and leading by example. Leadership & Organization Development Journal, (5), 492-502. Retrieved from: <>