Being a public company, FJE Limited holds much advantages pertaining to its internal strength. First and foremost management expertise and management experience have claimed to be the most precious assets and resources of the organisation. The professional background of all the directors including the two mining entrepreneurs, the uranium geologist Rebecca Paulka points out that they all experienced in their domain. The good decision making within the organisation could be a determining factor to the success of the company. The exploration company at present seems well capitalized with the $4000000, despite the fact that FJE Limited is a small company. Its finance for capital investment is quite promising. Interest on the capital would be a major source of revenue for the company. In addition the firm is not related to any debt; therefore this can pave the way for the investment projects. The company would now attract foreign investors and this would mean access to substantial capital sources. Weaknesses:
There is an ever increasing need for the company to spend money on recruitment. Present condition shows that there are no current employees as what makes up the workforce is only the accountant clerk, Lyn Hopkins. This fact cannot be denied that experienced geologist and entrepreneurs and the other director would contribute enormously to the cost of the business. In the long run of the business, they would need the advices and expertise of other employees like for example a board to accept or refuse any proposals. This may counteract the risk of undertaking capital investments which is slightly higher at present. Indeed there is only one source of revenue for the business that is the interest. To be a public company has its own problems. It is not unknown for the original owners to lose control of the company. This is mainly due to the divorce between ownership and control. Moreover investors are bound by “short-termism”. This could...
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