With reference to Medimatters, out line two key features of operating as a

private limited company.

A private limited Company such as Medimatters is a company that can only raise share
capital from friends and family, not the general public. Key features off a Plc include:

Directors can maintain overall control over the business as they control the
trading of shares in their company. Thus, the six founding members of Medimatters
will be able to choose who owns how much of the Company. Further, the six owners
(shareholders) of this private businesses will be able to have more of say as there
are less shareholders and so each director has more influence over business
decisions.
Another feature is that is re latively less expensive to start a private limited
company rather than a public one. Medimatters is looking to become established
with only $60000 in startup capital. However private companies such as
Medimatters will not usually be able to raise as much finance as public limited
companies.

With reference to Medimatters, distinguish between leadership and

management
Ahmed is the leader at Medimatters. Leadership I defined as the art of motivating a group
of people towards achieving a common objective.
Leadership is different to management as:

It is essentially about motivating and inspiring others.

Leaders are innovators who encourage others to accept change.
It stems from personal qualities and traits.
Leadership is based on an individuals natural abilities and instincts.
The leader believes in doing the right thing.
He or she is respected and trusted by followers-they want to follow because of the

leaders personality.
A leader creates and develops a culture of change.

Ahmed is the driving force behind Medimatters, and he has the trust and respect of the
group of directors. Establishing a new business is a risky proposition and Ahmed is seen by
the group as being the most capable of leading the Company through the startup stage.
Management on the other hand is defined as the organization and coordination of the
activities of a business in order to achieve defined objectives. Management is different to
leadership as:

It is about directing and monitoring others.

It attracts problem-solvers to positions of managerial responsability.
It is an oficial position of responsability in the organisation.
The manager skilled and qualified to perform role.

The manager is listened to by others because of status not necessarily because

of personality.
He or she accepts and conforms to the norms of the organization.

Leadership is a key part of being a successful manger. Ahmed, as a leader and as a

manager will need to set a clear direction and vision for medimatters that others will be
prepared to follow. Employees will want to follow a good leader and will respond positively
to them. A poor leader will fail to win over staff and will have problems communicating with
and organising workers effectively.
Most good are also good leaders but some managers are not. Managers who focus on
control of people and allocation of resources can fail to provide a sense of focus that others
will understand and be prepared to follow. Without the clear and charismatic leadership that
Ahmed is said to provide, workers may very well be managed, but will they be inspired to
help Ahmed and Medimatters take a fresh direction and achieve new goals?
With reference to medimatters, outline one internal source of finance and one
external source of finance that could be used by the startup company
Internal finance is internal money raised from the businesses own assets or from profits left
in the business (retained profits). At this stage, medimatters has not been operating long
enough to be able to make, let alone, retain any profits. Nor are there any assets mentioned
in the case study. This leaves Medimatters with only external sources of finance which is
defined as external money raised from sources outside the business. At this very early
startup stage of operations it is unlikely that a bank is going to lend money (unless it is
secured against the personal assets of the directors of Medimatters) so the best form of
external finance wil likely come from the issuing of shares. Investors could be found that are
willing to purchase shares in Medimatters in return for an equity stake in the company.
With reference to medimatters, distinguish between flow and batch production
methods.
Flow production (also known as line production) is where items are produced in a
continually moving process and this production method comes under the category of mass
production (where large quantities of a standardised product are produced). Flow
production involves the production method being carried out in a sequence where as son is
one task is complete; the next stage in the process must start immediately. Thus, there will
be different stages in the manufacturing of lenses for the medimatters product, and each
lens passing through the production line will undergo a new process on the production line
until it emerges at the other end as a fully functional lens, carrying the medimatters logo
and encased in Medimatters packaging. This is different to batch production.
Batch production involves producing a limited number of identical products (known as a
batch). From this case study, batch production is an option that is being explored to
manufacture the lens that Medimatters aims to produce. The level of demand for the lens
and app has made batch production ideal for this specific product for medimatters.

Both batch and flow production produce more of the same product, unlike, say, job
production which customizes each order to customer specifications. Both manufacturing
processes can enjoy economies of scale as machines can be used to produce larger
quantities (technical economies) and also the degree of specialisation can lead to
increased productivity.
Given the level of estimated demand just over 800 lenses would be required each month
it does not make sense for flow production to be considered. Flow production typically
requires a much higher level of capital investment to produce the automated machinery
needed the production process, and the level of extra investment needed is justified
through economies of scale. 800 lenses are unlikely to achieve any meaningful economies
of scale. Flow production is suited to mass production and could be considered by
Medimatters if the level of demand reached a scale where lens manufacturing could occur
continuously over at least one, but preferably two, shifts each day. Demand would likely
need to be in the order of 1000 lenses per day (30000) each month before it could be
justified.
Batch production has a Little more flexibility, as before a batch has been started, it is
possible to change the requirements for that batch of lenses different sizes or positioning
mechanisms for different types of phones, could be an example here. If medimatters
considered setting up their own manufacturing production lines and not outsourcing the
production of lenses, then batch production would be more cost-effective tan flow
production as the capital equipment is likely to cost far less than a fully automated flow
production system.

Analyse the impact of two external environmental factors on the business objectives
of medimatters.
Without specifically stating what the business objectives of medimatters actually are, it is
safe to assume that the companys objectives are profit maximisation, market share and
shareholders value the most common business objectives in for profit firms. External
environmental factors refer to the importance of external influences on business
performance and decision-making. To survive and prosper businesses must understand
and respond to external factors that are beyond their control. There are various factors a
firm needs to consider within the external environment it operates in social, technological,
economic, ethical, political, legal and environmental change.