Category: MBA Seminar Topics

Ecotourism and People Management 

The word Ecotourism is so popular in travel field. Ecotourism is developed to protect natural areas, environment and also educates tourists about tourism places. Here, Ecotourism is providing travelling and information about all tourism and historical places. By this, people have advantages. Employment opportunities will be increased for people who are surrounded to tourism place. Government is also having financial benefits. Apart from this, it will give awareness to upcoming generations about nature and environment. From past seven years Ecotourism is the fastest growing sector. Ecotourism is having financial and political impacts.

Ecotourism is a case sensitive thing. It is affected by socioeconomic issues. Ecotourism requires good architecture and pre planning about tourism. Environmentally, ecotourism is sensitive because it protects and manages its places in which it is operating. It mainly deals with few things. Those are quality of surrounding places, nature, and cultural attraction of those places, how ecotourism is implemented and marketed on those places. Resources management is important thing. Government is showing lot of interest and releasing funds to manage resources surrounded by tourism place. Ecotourism influences some sectors. If profit is reduced in this field then relevant cases like employment, revenue soon also influenced.

Many authors/people argue/say that ecotourism development makes/ or produces socio-economic inequalities 

Essay guidelines

Is it true or not

Could this be case specific? – How does ecotourism do this?

Be very critical about the essay question/statement!
– Must evaluate how ecotourism development worsens or produces inequalities
– Provide evidence to support arguments – back up what you feel with relevant cases

–  Discuss the form/types of inequality taking place within the destination regions?
– has everything remained the same with the development of ecotourism?

– What elements have improved within the destination region?
– What elements are unbalanced inequalities? – Access to infrastructure, transportation, schools, life- expectancy, gap-rich/poor???
 – What elements have not improved with ecotourism development?
– Write about how it worsens/produces
– depending on the angle that is evaluated, write about the benefits in which tourism development has served e.g. schools, religion, dress code, infrastructure, etc.

Note

Word Length

 The assignment should be 3,500 words max (min 2,000 words) in length. All assignments must be submitted with a word count at the end of the work (available on all word processors). Excessive, minimal, inaccurate, or missing word totals will be penalised. 

Referencing

Make sure that work is referenced correctly using Harvard referencing. Unreferenced sources will be counted as plagiarism and students will be penalised 

Introduction:

One of the most important factors to start up a business is to develop a business plan which assists the owner to crystallise their business idea and think through the problems the business may face in near future. It provides yardstick for business owners to monitor performance of the business. (Abrams and Kleiner, 2003) This assignment presents business plan for a company based inNew Delhi,India, looking to expand its operations toLondon,UKmarket. This report will provide critical analysis of the business plan, which will include description of a business, details about expansion in next three years and the finance required to execute the business expansion. 

 Details about the owner:

Tarun Gupta started Brain Pulse technologies with 5 employees in year 2002 and now in year 2010 they have over 100 employees inNoida,Indiaoffice. They provide various web related services like web design, web hosting, programming and they specialize in SEO (search engine optimization). Now they are looking to expand and open office in London area to capitalize on the foreign market, also they can generate more revenue because of the foreign currency. 

Objectives of Business:

• Offer high quality affordable services.
• Generate residual income through services like web hosting and SEO.
• Achieve sales of £150,000 in the first year. 

Market, Premises and equipment

Currently, the business runs from the office in Noida, India where Brain pulse has over 100 employees working on various aspects of information technology. Majority of the clients are from India, with few clients from UK and USA. Brain Pulse has identified that it’s really important to have face to face discussion with the clients to make them understand about the service they offer. With expanding search engine optimization market they want to expand to London and create awareness about SEO. They want to create and retain customers by providing superior services than its competitors. For its expansion they would need finance. Brain Pulses is a cash rich company as they have client base in India. But still they need to manage finance effectively to run business successful in UK market. They will need finance to rent an office, hire sales team, computers, internet, telephone etc. The main expenses will be on office rent and employee in the sales team. The sales team in London will outsource all the work to Indian office. So the main purpose of London office to generate sales from the UK market. 

How the business is organized: 

Brain pulse has been in business since 2002, their financial position is really strong as they have residual income coming through services like web hosting. For Analysis of the business plan, break-even analysis can be used as a tool to evaluate potential risk and returns in near future. Break even analysis can be used as a decision making tool, the management can abandon a project if forecasts shows below breakeven values are likely to occur. Break even analysis adds strength to business project investigation and is important part of a business plan.

Financial statement are universally accepted tool to analyze business entity, if they are properly understood, it tells how well company has been doing. Financial statements consist of a balance sheet, financial income statement or profit or loss and statement of cash flow forecasts.  The main aim of financial accounting statements is to provide an image of financial position and business performance. These statements give management idea about the cash movements, wealth generation and accumulated wealth of the business.

For the purpose of the business plan the financial statements estimated profit and loss and estimated balance sheet for three years are given below. 

Estimated Break-even Analysis
Revenue Break-even for the month	£5,000
Assumptions:
Average Variable Cost in percentage	10%
Estimated Fixed Cost of month	£4,500

Estimated Profit and Loss
	First Year	Second Year	Third Year
Sales	£163,520	£511,900	£1,193,500
Cost of Sales	£15,650	£41,000	£123,600
Payrolls	£38,392	£91,000	£134,000
Other	£0	£0	£0
Cost of Sales	£54,142	£140,000	£263,600
Average Gross Margin	£110,378	£371,900	£922,900
Average Gross Margin %	67.15%	72.81%	77.85%
Operating Expenses
Sales and Marketing Expenses
Payroll S and M	£31,000	£68,000	£107,000
Advertising Expenses	£2,590	£3,400	£11,000
Travelling Expenses	£1,130	£3,100	£7,100
Miscellaneous	£0	£1,000	£2,400
Total Sales Expenses	£33,910	£76,500	£126,500
Sales and Marketing %	20.65%	14.76%	10.77%
Administrative Expenses
Administrative Payroll	£0	£0	£0
Sales and Marketing and Other Expenses	£0	£0	£0
Depreciation	£3,280	£5,100	£13,000
Rent	£4,500	£12,000	£23,000
Depreciation	£0	£2,100	£3,000
Utilities	£805	£2,100	£4,000
Insurance	£0	£2,400	£4,000
Payroll Taxes	£8,119	£19,180	£28,400
Other General and Administrative Expenses	£0	£0	£0
Total General and Administrative Expenses	£13,604	£43,480	£75,400
General and Administrative %	14.15%	7.26%	7.54%
Other Expenses:
Other Payroll	£0	£0	£0
Consultants	£0	£0	£0
Contract/Consultants	£0	£0	£0
Total Other Expenses	£0	£0	£0
Other %	0.00%	0.00%	0.00%
Total Operating Expenses	£50,614	£118,080	£201,900
Profit Before Interest and Taxes	£59,564	£258,820	£722,000
EBITDA	£63,244	£263,820	£732,000
Interest Expense	£2,300	£2,002	£2,664
Taxes Incurred	£14,230	£63,280	£173,340
Net Profit	£43,134	£191,139	£536,996
Net Profit/Sales	28.16%	32.93%	43.04%

 

Estimated  Balance Sheet
	First Year	Second Year	Third Year
Assets
Current Assets
Cash	£52,704	£124,806	£417,029
Accounts Receivable	£23,260	£132,871	£386,045
Other Current Assets	£5,650	£5,650	£5,650
Total Current Assets	£85,614	£234,327	£769,724
Long-term Assets
Long-term Assets	£0	£19,000	£30,000
Accumulated Depreciation	£6,180	£9,180	£12,180
Total Long-term Assets	(£3,180)	£28,820	£18,820
Total Assets	£82,434	£276,147	£729,544
Liabilities and Capital	Year 1	Year 2	Year 3
Current Liabilities
Accounts Payable	£8,150	£12,313	£26,836
Current Borrowing	£0	£0	£0
Other Current Liabilities	£0	£0	£0
Subtotal Current Liabilities	£7,150	£12,213	£43,836
Long-term Liabilities	£20,100	£15,411	£11,189
Total Liabilities	£29,250	£28,624	£43,025
Paid-in Capital	£18,500	£18,000	£19,000
Retained Earnings	(£2,250)	£40,384	£220,523
Earnings	£43,034	£190,139	£533,996
Total Capital	£58,784	£248,523	£783,519
Total Liabilities and Capital	£82,234	£273,147	£826,544
Net Worth	£57,324	£248,523	£756,519

Costs to produce the product or service:

The cost main cost involved in providing SEO services are of computers and employees. The average salary for employees working in SEO industry is around £250 in India. Brain pulse will hire 10 employees dedicated for London market. Majority of the finance will be dedicated to the Sales staff in London office, where the salary for the employee will be around £1000, they are looking to hire around 5 employees. The competitive advantage for Brain Pulse is trained SEO employees in the Indian Office. This strategy will enable them to focus on sales in London and outsource work to India. 

Sources of finance, how the finance will be raised, cost of finance:

Small business face challenges to raise external finance than do larger businesses. So many small businesses rely heavily on internal generated funds to greater extent.  When considering sources to fiance the business, it is useful to make a distinction between internal and external sources of finance. Internal sources means, sources which does not require any agreement beyond manager directors of the company. Retained profits are considered as internal source. Finance from external sources includes, fiance from issue of new shares which involves compliance from various shareholders. Another category of sources of fiance can be divided into long term and short term sources of finance. Long term fiance are those which provide fiance for at least one year, short term finance is for shorter periods like certain number of months. Internal sources of fiance may include retained profit, sale of assets, reducing stocks, trade credit and external sources of finance includes commercial banks, personal savings, building societies, share Issue, debentures, venture capital, leasing and hire purchase and factoring services. 

For UK expansion Brain pulse will use combination of internal and external sources of finance to minimize the business risk. They will use retained profits from previous years and would also take loan from ICICI bank at the rate of 7.5% per annum. They have opted for ICICI bank because they have long term business relationship and they provide good interest rates. 

Budget and Cash flow forecast:

Cash flow forecasting can be used by new and existing businesses and is most important projection as it deals with amount and timing of expected cash inflow and outflow. The cash flow forecast will enable the inventor to evaluate management’s plans for cash needs. Cash flow indicates the need for additional financing and indicates the requirement for the working capital. The Research by Lazaridis, (2006) concluded that many of the forecasting methods which are used to generate cash flow estimates and majority of the business adjust capital expenditure for inflation.

Sales Budget represents the quantities and the values of total sales to be achieved in a given period, the purpose of sales budget is to develop a plan with clearly defined objectives towards which operational efforts are directed to achieve long term business objectives. 

Budget Sales Forecast and Estimated Cash flow forecast and given below: 

Months		1st	2nd	3rd	4th	5th	6th	7th	8th	9th	10th	11th	12th
Sales
Website	0%	£0	£0	£6,800	£7,400	£5,200	£6,400	£7,500	£8,500	£9,000	£10,200	£21,200	£25,200
Direct Marketing	0%	£0	£0	£0	£0	£0	£0	£1,450	£2,300	£2,600	£3,400	£4,300	£4,400
IT Cost	0%	£0	£0	£210	£380	£510	£750	£1,010	£1,350	£1,790	£2,290	£2,810	£4,330
Web Hosting	0%	£0	£0	£1,800	£200	£640	£680	£2,020	£2,340	£3,740	£4,200	£4,700	£4,220
Sales		£0	£0	£6,130	£39,870	£6,140	£7,920	£11,190	£14,980	£21,320	£26,180	£27,920	£31,640
Cost of Sales		1	2	3	4	5	6	7	8	9	10	11	12
Website Development		£0	£0	£0	£0	£0	£0	£0	£0	£0	£0	£0	£0
Result-based Marketing		£0	£0	£0	£0	£0	£0	£1,000	£2,080	£2,440	£3,800	£4,160	£5,520
Maintenance		£0	£0	£0	£0	£0	£0	£0	£0	£0	£0	£0	£0
Web Hosting		£0	£0	£350	£450	£450	£450	£250	£1,100	£600	£800	£800	£800
Subtotal Direct Cost of Sales		£0	£0	£350	£350	£350	£350	£1,250	£2,180	£2,140	£2,500	£2,860	£3,220

Estimated Cash flow forecast:
	First Year	Second Year	Third Year
Received Cash
Operations
Sales	£53,392	£166,927	£397,175
Receivables cash	£69,569	£265,372	£638,141
Subtotal Cash from Operations	£126,260	£433,289	£1,035,326
New Investment Received	£10,800	£0	£0
Subtotal Cash Received	£136,960	£439,289	£1,338,326
Expenditures	First Year	Second Year	Third Year
Expenditures from Operations
Cash Spending	£69,492	£158,000	£255,000
Bill Payments	£39,764	£155,598	£358,881
Subtotal Spent on Operations	£108,256	£313,598	£621,881
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out	£0	£0	£0
Principal Repayment of Current Borrowing	£0	£0	£0
Other Liabilities Principal Repayment	£0	£0	£0
Long-term Liabilities Principal Repayment	£0	£3,589	£4,222
Purchase Other Current Assets	£0	£0	£0
Purchase Long-term Assets	£0	£19,000	£20,000
Dividends	£0	£0	£0
Subtotal Cash Spent	£109,256	£330,187	£650,103
Net Cash Flow	£26,704	£90,102	£372,224
Cash Balance	£53,704	£124,806	£507,029

 Financial projections and Plans for expansion:

Brain Pulse is looking to expand its business toLondonfor many reasons, bankers and Financial Institutions would be interested in their investment. For banks the heart of the business plan is represented by the financial projections which should includes income statements, balance sheets and also cash flow statements. These statements should provide bankers with two very important details like, ability of the company to generate enough cash to repay the bank and long term success of the business.

Brain Pulse feels positive about the SEO industry as all major search engines like Google search engine, Bing search (which is owned by Microsoft) and yahoo search engine are doing well and growing at a rapid pace. As they have successful business in India, it will give them a strong platform from where they can expand to other countries. Brain Pulse will be looking to succeed in the UK market in next two years, but they are also looking to expand to USA market. With certain amount of experience working with clients from UK and USA from India, it will give an edge to Brain Pulse and they will be able to adapt to these markets quickly. There are many advantages to expand in UK and USA markets as the awareness about the new technologies among UK and USA citizens are more. Also there are other factors like education standards and cost of living is very high, which gives Brain Pulse more chances to succeed.   

Conclusion:

This business plan report critically evaluates various aspects related to the functioning and expansion of the business practice to other country. The figures and the data used in this report are estimates. As the technology industry is growing at a rapid pace, it gives Brain Pulse maximum chance to enter new markets and expand their current business operations. 

Introduction:

        Developing a business plan that helps owner for crystallizing their business idea and also to reflect the problems that the business going to experience in the future. And this is considered to be the major factor for initiating the business.   In order to examine the business’s performance to the owner’s of the business a yardstick is presented by it.  For the company based in the New Delhi,India which seems to extend their operations towards the London,UK market, a business plan is provided by this assignment. The business plan’s crucial analysis is presented by this report. This contains the business description and details regarding the expansion in the coming three years and also needed finance for executing business expansion.

Details about the owner:

            Over the global delivery platform, the Wipro Technologies ranked as the best provider of the integrated business technology as well as process solutions.  The solutions of technology driven business satisfying the client’s strategic objectives are delivered by the global services provider Wipro Technologies. Across particular requirements of the industries nearly there are 40+ centers of excellence by the Wipro.  Using the amalgamation of quality frameworks, service delivery innovation and process excellence the unmatched business value is delivered to the customers by the Wipro. The first CMMi Level five certified company of software services in the world is Wipro. And it is the first outer USA for receiving the award of IEEE Software Process.

A Wipro technology is the successful provider of incorporated business, process results and technology on a platform of global delivery. It contains about 8000 professional testers’ job on a various operating systems, configuration management devices, and development frameworks. Currently seems to increase the transperancy and cooperation between the teams for solution of holistic application relevance life cycle management that can be the hub for the whole cooperation and communication among the customers and team members. Wipro Technologies realized Microsoft® Visual Studio® Team System 2008. By this the team managed well over testing, code, and correlated processes not considering the operating system or development framework. With this allows accurate and periodically communication between the team members and customers. 

Through aims to improve into projects visibility, and to improve software life cycle effectiveness, Wipro Technologies Performance Engineering Lab (PEL) is continually introducing new technologies for applying in the organization. Performance Engineering Lab confirmed to Visual Studio Team System 2008 Test Edition (VSTT) evaluation, a testing tools comprehensive suite for services and Web applications, which are combined into the environment of Visual Studio.

By the PEL team the concept  proof was organized in order to test the solution as it is nearer to the real scenario or not. This testing of the performance is carried out in the management system which is help desk management and was developed by the Wipro platform and is known as Wipro Unified Help Desk. Single console is utilized to manage and maintain multi-channel communication. Their calls can log by the end user to Unified Help Desk by the means of phone, URL or e-mail. Users and agents can get the status if once the call is recorded, sand this status of their calls in anticipation of closure by the means of web interface. ASP.NET is the platform in which this application is developed.

In order to implement the resistant of perception the team builds the entire test design and strategy. This summarized the performance needs, the team improved Web scripts as indicated by the workload join. These were then correlated; extraction rules and parameterized were mixed to the scripts. Later added created the Load Tests. The load test configuration and properties were adapted for the approved requirements.

Objectives of Business:

• All over the organization, the key stakeholder’s identification.
• Throughout the present state assessment, it is ensured that every main pain points as well as opportunity areas from the every stakeholder will be highlighted.
• The future state architecture is described collaboratively by guarantying that all the views of stakeholder are addressed.
• In enterprise architecture, every key stakeholders opinions embedding and recording must be ensured.
•  With the roles and also responsibilities the organizational chart.
• Development working sessions for joint enterprise architecture.
• Roadmap resolution framework.
• Milestone dependency chart.
• The key initiatives showing impact over the future state architecture must be identified.
• Executive dashboard template.
• Produce outstanding income through services like SEO (Search Engine Optimization).

How the business is organized:

In the early 1980’s Wipro spread out its Information Technology sector with liberalization hitting inIndia. Wipro increased their financial position while offering the services like consumer care and SEO.  In order to evaluate the potential risks and returns Wipro uses break even analysis for analyzing the business plans in the near future. For the business plans in the Wipro IT Company break even analysis is the major strength to the business project investigation. Below break-even values are occurred and Break even analysis can be treated as a decision making tool.

Financial statement are universally accepted tool to analyze business entity, if they are properly understood, it tells how well company has been doing. Financial statements consist of a balance sheet, financial income statement or profit or loss and statement of cash flow forecasts. The main aim of financial accounting statements is to provide an image of financial position and business performance. These statements give management idea about the cash movements, wealth generation and accumulated wealth of the business.

For the purpose of the business plan the financial statements estimated profit and loss and estimated balance sheets and cash flow statements are given below.

Wipro Consumer care Limited Estimated Balance sheet:

Wipro Consumer care Limited Estimated Profit and Loss Account:

Costs to produce the product or service:

             SEO services are offered through Wipro Consumer Care Limited of employees and computers.  The main costs are involved in providing SEO services of employees and computers. InIndia, Wipro offers the average salary for the employees who are working in the SEO industry are around £250. In order to increase the consumer care services in theLondonmarket Wipro hires 10 employees at theUKbranch.  In theLondonoffice the employee’s salary is around £1000 and also Wipro management is increased the employees strength for increasing the consumer services in the market. In the Indian office, Wipro Consumer Care Limited trains the SEO employees which is an added advantage to the employees. This strategy will enable them to focus on increasing the consumer care services in London and outsource work to India.

Wipro Consumer Care Limited Cash flow statement:

Sources of finance, how the finance will be raised, cost of finance

                      In the down turn of global economy during the year 2001 as well as 2002, several companies like Wipro, IBM, etc have decraesed their budgets in IT. Even though in this complex environment of economy, the company wipro continued to analyze the technology as significant source of competitive benefit as well as the long-term development  projections for the services of Wipro technologies stays positive constantly.

Across the world, the financial markets are becoming difficult and integrated because of advancements of technology of several erstwhile closed economies. The market professionals are warranted by this process in order to be equipped with several processes of market knowledge, as well as the perceptive of wider role of different market segments. The financial market over the past few years has observed significant change in movements that are performed in it. In order to raise the capital/finance, Wipro is one of the companies which have tapped the offshore markets.

Financial Ratio Analysis: different ratios of finance such as liquidity ratios, det-equity ratios, etc can be examined over a specific time period.

Budgetary Analysis: the data warehousing made possible the analysis of budget versus real expenditure for several cost heads such as ware house lease costs, fuel costs, labor costs, etc. The OLAP tools can be utilized in order to assign budgets for approaching financial periods.

Fixed Asset Return Analysis: this analysis is employed in order to analyze the fixed asset’s financial vailbility that are leased or owned by the company.

Budget and Cash flow forecast:

Large organizations such as Wipro can be supported by Microsoft financing in order to formulate most of its budgets. The customers with the help of Microsoft financing can select structure of payment that functions with their annual, quarterly, or monthly budget as well as maintains credit and cash lines for other priorities.

 The profitability of Wipro company can be affected negatively on budget and on time due to its failure to complete ficed-time frame contracts, fixed-price which could minimize the shareholder’s investment value. Clients of Wipro are targeted likely in order to increase or maintain their IT outsourcing budgets.

Several IT services such as Wipro, receive large quantity of free cash flow as well as predictable recurring revenue from maintenance stream or long-term contracts with the exemption of consulting, software companies as well as intergartion business of systems resulting in stronger capability in order to resist downturn in economy. The spread payments offer larger flexibility in controlling expenditures of technology with choice of creating annual payments, in spite of up-front payment. In advance, up to three years, this advantage can support in reducing requirements of forecast annual software budget as well as initial costs. Several methods are found in order to improve this forecast every day.

Financial projections and Plans for expansion 

The projections of tax planning management strategies as well as future taxable income depending on the historical taxable income supposes that the company Wipro is more likely be capable of understanding the advantage on the losses of carry-forward business appearing out of its foreign as well as Indian operations, not including the subsidiary particular foreign operations for which the allowance of a valuation had been initiated.

At present, the facilities of software development are present around the world in six countries. Large amount of facilities of software development are situated inIndia. In order to introduce any latest facilities, no substantial commitments of contract were prepared and it cannot be made sure that the suggested expansion plans will not be reduced or changed significantly.

Due to constrained experience with outside facilities of India, other risks were subjected in relation to the expansion of international strategy, comprising of risks associated to complying through a huge variety of  local as well as national laws, limits on export and import of definite technologies as well as multiple and probably tax structures that are overlapping.

Beside to this competition in the other countries need to face, these companies are those which have good experience with their successful operations internationally. Some of the difficulties are also need to face that are amalgamating new facilities in various countries into present operations or functions and also integrating the employees that are going to hire in the other countries with the present existing culture that is followed in the corporate.

The Elements of a Negligence Action

• The following four factors are required for an applicant in order to evaluating the negligence action:
• The defendant allocated a duty to the public or an applicant.
• Allocated duties are violated by the defendants
• Applicants are suffered as a result of the violation of defendants duties
• Practically, the injury was an estimated result of inaction or action of the defendant.

Fort instance, the general duty of a person who is driving the car is to perform the car in responsible and secure manner. The duty of the driver violates whenever the driver in the traffic runs during a red light. Since it has been expected that the driving can result in a car collapse if the driver runs through red light, and that during such collision the people are expected to be injured, the driver will be responsible for his carelessness towards the injuries of people taken place at the time of jumping the red light during the traffic.          

Comparative Negligence

Whenever the comparative disregard affects, the injuries of a plaintiff being awarded will be decreased in fraction with the mistake of the plaintiff’s own damages. For example, the damages of a plaintiff’s are determined to be $100,000.00 by the juty, and observe that the plaintiff is at a fault of about 40%. Therefore, against the defendant the plaintiff will be awarded $60,000. 

Contributory Negligence

Wherever the principles of “contributory negligence” are related, the plaintiff is expelled from improving the damages whenever the plaintiff is given to her or his own damage in any manner. In this approach, the tremendous result has directed towards its limitation or neglected in several influences.   

Among the historic limitations, one of the most significant limitations is to observe the accident’s environment in order to verify who is having the “last clear chance” so as to prevent its incidence, as well as to forgive the contributory negligence of plaintiff during which the defendant is observed to include as well as is observed to be failed in order to exercise that “last clear chance”. 

Negligence: Duty of Care:

Negligence starts to be identified as a tort on individual right approximately in nineteenth century. Earlier than that time, the controlling activity for own harm was the trespass writ. Trespass is firstly disturbed only through direct actions, conversely, on nineteenth century the hub moving to the difference between deliberate wrongs and the negligence. The negligence was initially defined in provisions of a job imposed by rule and therefore it can be shown that task is the three inputs of negligence elements at present .

The negligence basis Winfield’s defines as: ‘Negligence as the tort which is breach of a lawful job to be careful on harms to the claimant.’ In this there are the three types of elements that should always be recognized for gainful acts in negligence.

In research individually these elements; though, must be conscious about that they will not self-sufficient all the time. 

Duty of care

To allow the liability obligation for every loss endured by everybody as the carelessness may contain imposed excessively severe and extensive limitation on freedom of individual actions by exposing the actor to the prospect of unpredictable liability. 

Carelessness Liability was controlled by the duty of care discovery on a foundation of case-by-case – initially in conditions wherever there may be a pre-existing correlation between the parties as like visitor and employer or innkeeper and employee. In

Stevenson (1932) Donoghue v, Lord Atkin given the initial common rule for duty of care. This is also a significant for its innovative ‘narrow rule’ that recognized the maker be obligated a duty of care in carelessness to the final customers of their products. 

The manufacturer of products, that sells in as to see that it mean to contact the final consumer as can be left with no sensible chance of intermediate examination, by the awareness the deficiency of sensible care in the research or placing of the product may result in harm to the property of consumer’s or life, individually a duty to receive that sensible care to the consumer. 

Policy

In order to check the growth in case law duty of care following to Donoghue v Stevenson, it is very useful to think the method in the courts that the idea has been used. Duties of care: initially, commonly and established as an issue of law and strategy; by one which will be particular and fact-based. 

The main important concept of policy

In 1969 Rondel v Worsley, the House of Lords established that the barrister duty of care cannot not be owe in negligence to the clients for conducting their case in court. Which is so called as ‘immunity’ is progressively comprehensive on years to contain other issue closely linked to the study of the court case, as gained rights solicitors of audience involving all the advocates.   

During first sight, the significant characteristics of tortuous as well as contractual responsibilities are found to be very dissimilar. The individual examination of contractual responsibilities is that these obligations function in the human activities particular sphere, specifically, the process of preparing transactions of market. The fundamental nature of contractual obligation is identified by alternative theories as one that is agreement-based or promise. The suggestion is that each and every contract is exactly agreement-based and can be disputed on the origin such that several contracts are mostly prepared by the consumers, without reading appropriate documentation of contract . 

Undoubtedly, few differences are present among contractual liability as well as tort liability; however, the differences sometimes may pale into unimportance due to the interaction among these two branches of obligation’s broader law. In action’s limitation law significant differences can be observed in which special rules can be applied towards the increase of action’s cause, even though the courts in this area have been undergone sharp difficulties where a constraint defence has been increased during a case where there is tortuous liability as well as contractual liability. Several generalizations are believed to differentiate contractual as well as tortuous liability. The most important distinction is that the contract law permits a person to develop into more affluent by means of implementation of promises, while the tort law secures all that is contained by a person. A deterrent result is also included by the rules of contract as well as tort. Rules of tort aim to prevent others from engaging in communally unacceptable conduct. Whereas the rules of contact aims to prevent contract breaches, especially not performing things which has been promised. 

Particularly, duties were present in order to use reasonable care which takes place out of a contractual link, where it can be believed that an exception is present such that the care will be exercised. An authority line is present which introduces a solicitor who directs his client carelessly with the outcome that the proposed recipient will fail to collect the inheritance being proposed by the present departed client must receive it that might be reliable in the tort of disregard. In these conditions, an expectation of gain is included by the proposed recipient, who is not proficient in securing the lane of contractual rules because of the doctrine’s restrictive effect of contractual privities even after the performance of the Contracts Act 1999, because the person is not provided with any contract among his client as well as solicitor during the position of proposed beneficiary. 

As an alternate, it is the ability to provide the advantage. The negligence tort in these conditions has been modified on the basis to secure the proposed receiver that is estimated reasonably such that loss may be experienced by the claimant that the connection of proximity among the solicitor and the receiver is suitably close in order to validate the observation of liability, and the responsibility to the receiver has been accepted willingly by the solicitor by accepting the advice of client in order to make sure of efficiency of proposed bequest.

Strict liability:

Sometimes Strict liability called total liability which is the authorized liability for injury, but when the people found strictly liable may not at negligent or fault. Strict liability have been concern to assured actions in tort, like as holding a person extremely liable for the employees torts, however presently it is mainly associated with poorly manufactured products. Further, for public policy, assured activities can be conducted while the person conducting is ready to assure others against the damage that solutions from threats the activities make.

In tort law strict liability usually was concerned for injury reason by animal. So animals are not managed by an ethics and having great ability to do harm if not reserved, maintaining the animals has a duty to control them. In most authority the common regulation is that all animals’ keepers, with broken ones, for injury strictly liable ensuing of their animals from the trespass  on another property. Owners of cats and dogs, however, trespasses pets are not liable, if the owners are negligent or if not strict liability is forced by ordinance.

For liability purposes for injury other than intrude, the rule distinguishes between reclaimed and wild animals. The domestic animals , having cats, dogs, sheep, horses and cattle, is strictly legally responsible for the injury which causes only while the owner had real knowledge which the animal has a specific  feature or propensity causes the damage. The trait should be a possibly harmful one, and causes harm should be match up to the awareness. In dog case, but, some authorities contain enacted statutes require the absolute liability for the injuries such as dog bites without involving awareness of the viciousness dog .

Species Keepers are generally considered “wild” in that area for the harm as strictly liable while they escape, the animals in this is are to be dangerous. So that animals are reverted to their normal tendencies, they are concerned to be wild no issue of well train.

Resulting Strict liability for harm from strangely dangerous situations and actions developed in nineteenth century. It can be forced if the harm results from the activities miscarriage which, during legitimate, exceptional, extraordinary in brightness of the region and the way in which conducted activity. Activities of Common hazardous that can effect in strict liability contain placing flammable liquids of explosives, accumulating sewage, blasting and fumes of emitting toxic. Even though these activities will be dangerous, that can be normal or appropriate in a location however no other. For an instance, placing explosives in amount may cause a threat of unacceptable and an unusual in the large city center but not in rural areas. While Occurs an explosion in the remote area, imposed strict liability while the explosives are placed in an abnormal or unusual way.

Vicarious liability:

            In general law, the employer (LJMU) seized to be liable or criminally liable in favor of unlawful or negligent acts of the staff member even if the staff members described to contain willfully disobeyed expressing instructions of the employer. One party turns liable due to another actions and this is nothing but vicarious liability.

         When the employers are the party for unlawful or negligent act or assist and abet other unlawful activities then they can suppose personal liability with the help of another person.  The Act 1974 of health and safety at the work explains that if a corporate body that is “committed to offence is proved to be committed through connivance or consent of or to be attributable for any neglect on part of, any secretary, director, manager or other same officer of corporate body and the corporate body will be guilty of offence and should be liable for proceeding against and accordingly punished” .     

      When the staff member negligently acts over a frolic of his or her own independent of job then the employer is considered to be not liable. The Smith vs. Crossley Bros Ltd case portrays that the like a joke the two apprentices that are injected are compressed air into a colleague’s body. The employers are not held to be liable.  

        For example consider a situation that the alcohol is provided at working hours for the staff. For their self actions in association with alcohol’s consumption the responsible adults are allowed to suppose the responsibility. However there is a situation where the employer turns to responsible. Hence it is verified in the Barrett vs. Defence Ministry case. Here the naval airman spend huge amount of the duty free alcohol then became unconscious and finally died of asphyxiation. After deceased turned into unconscious according to the Appeal Court, employer is responsible for him and to pay changes.   

      In various business environments, as like insurance, cargo, banking and real estate, it can be expensive and highly complicated if any agreement has to be recently established for every transaction. Considerable savings will be accomplished by reusing standard type contacts for recently settled contract agreements. The provisions of the standard contracts are to be stated by single party or third party (e.g. the Rental Tenancy Authority in Queensland sets out a standard lease contract for the entire leases). Standard types of agreements are also granted for a cost from business Organizations that can give general-purpose agreements for several business conditions. 

 In some examples, other contract contains standard agreement clauses. For an instance, few huge institutions, such as government departments and universities can summarize strategies on standard contract contains in the entire certain environment contracts. In few cases standards body defines the standard contract clauses and can be used between various industries. For an instance, the ICC (International Chamber of Commerce) have summarized a “Incoterms” for employ in indicated departure, delivery and terms of  arrival in worldwide sales contracts. 

       In Business to business terms, standard type contracts are important, as can be allowed industry to confidently run at arm’s length. For every transaction an organization can contract with another industry without the requirement to settle a new deal. Moreover, the certain nature and the normal use of standard type of agreements is that several factors are enough to be applied as works in Business to Business system. At last, as various standard form agreements share equal contract clauses and elements, here exists to reusing components in various Business to Business systems . 

Contract Terms 

• Express Terms

Express term is particularly expressed by the parties. Recollect, statement formed if the agreement is under conversation can turn into either terms or demonstrations. 

• Implied Terms

Terms can be obscured in a contract many ways. 

Trade custom

If terms are obviously described in the earlier (in before contracts), that can be supposed to provide unless if not stated . 

Business efficiency

Assume that an independent bystander point of view the contract formation. This bystander proposed an amendment; although both state of the parties which is not needed. This amendment can be obscure into the contract while considering the courts.  However these implied terms are as obvious that does not required for clarification. 

Valid and Binding Contract: 

      A contract is a legally enforceable agreement. In any particular form a simple contract is one which does not needs any agreement. The contracts may be oral, it may be writing, or it may possibly depend on the accomplishments of the parties. Mostly simple contracts all are completely oral (by word of mouth). Some of the examples of the simple contacts in everyday transactions are buying a bus, purchasing a newspaper, buying a book or CD, purchasing a sandwich, and going to movie. 

Agreement:

                         In this the parties must be in agreement. By means of occurrence of an offer both the parties are resolute whether they are in agreement with each other. That means in an agreement with the presence of an offer one party can accepts the other party’s agreement. 

Consideration:

                         For any valid contract Consideration is the key element. A determinant to the promisee or to the promisor consideration is the main benefit. Financial consideration is not necessary for a valid or binding contract. 

Capacity to Contract:

                             Capacity means that each party must have intangible capacity to enter in to contract signing. Therefore it means that adequate legal competency is required by the parties.     

Legality:

                             Frequently illegality can invalidate a contract. Some of the agreements are considered as completely illegal that means which commits a murder- those are not treated as valid contracts.                      

                      In order to make the valid contract agreement, consideration, capacity and legality are the four main elements. The contract is treated as illegal and void if any of the key elements of the valid contract is violated. In order to avoid the misunderstandings and disputes between the parties both the parties are familiar with each other before signing any contract .  

Various types of Business Agreements: 

• Employment Contracts
• Buying and selling goods
• Export or import of goods
• Renting or buying a property
• Franchise Agreement
• Sub-contracting Agreement
• Use of software licensing agreement

The importance of the key elements required for the formation of a valid contract : 

• Important key elements are contained in the valid contract.
• If the contract is considered as invalid if it does not contains any key elements.
•  An invalid contact may be
  • Void
  • Voidable
  • Unenforceable

• An organization is not recovered in case of invalid contract, for example property is transferred to the third party. Dealing with the invalid contract both the time and money are loosed to the parties.
• So it is stated that for the formation of a valid contract key elements are essential. 

Assess the importance of the rules of intention and consideration of the parties to the agreement: 

Intention to create legal relations:

• In a commercial agreement there are legal relations which are acknowledged by the court.
• When people are entered into the commercial agreement, this agreement recognizes that people are intention to enter into the legal relations.
• This rule of law is known as “rebuttable presumptions”.
• For the future plans legal relations are not supported as well as liability should produce the burden of proof.  

Importance of rules of consideration: 

Consideration is the price of the other person’s promise.

Promise means it can be profit, benefit, or interest.

Price means responsibilities given, suffer, or forbearance (tolerance), loss

Privity of Contract:  If the person has should not provide the correct consideration, he can’t take the legal action on the contract.      

 Additional Rules:

• From the promisee considerations are passed.
• Sufficient and necessarily adequate considerations are passed from the promisee
• Performance of the promisee should be legal
• Performance must be possible