Article Abstract:
An employee stock ownership plan (ESOP) can be an important part of an entrepreneur's strategic business plan. An ESOP is a stock bonus-retirement plan that is primarily used to invest in the stock of the sponsoring company. The three main types of ESOPs are ordinary plans, leverage plans, and transfer of ownership plans. ESOPs offer several advantages for small companies: enhancing cash flow, financing growth, providing an in-house market for a company's stock, aiding in estate planning, providing useful employee benefits, and improving productivity and morale. Companies with successful ESOPs follow a pattern: management makes a tangible commitment to the program, employees are given the chance to own a significant percentage of the company's stock, and employees see a direct correlation between job performance and the value of their stock.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
Strategic planning is critical in small business management, but many small business managers ignore it because of lack of expertise, inability to find a starting point, uncontrollable operating factors, inadequate capital, focus on daily operations, or lack of a practical planning procedure. Six steps for proceeding with small business strategic planning are outlined: (1) development of a clear mission statement, (2) collection and assimilation of relevant information, (3) creation of company goals and objectives, (4) formulation of strategic options and strategy selection, (5) translation of strategic plans into action plans, and (6) establishment of accurate controls. Small business owners should not try to use strategic development methods used in big business, because small businesses are not merely little versions of large firms.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
American executives are faced with many cultural problems when dealing with people in the Third World. An analysis of some Third World values and mores that affect business transactions with U.S. corporations indicates that, for the most part, Third World value systems may be categorized as rural values. U.S. executives doing business in Third World countries are advised to: identify obstacles to business transactions, demonstrate advantages of doing business, adapt to the culture of the foreign country, and attempt to identify rural values that will promote the business transaction or business goal.
User Contributions:
Comment about this article or add new information about this topic: