Sunday, November 17, 2019

Business Strategy Essay Example | Topics and Well Written Essays - 1500 words

Business Strategy - Essay Example This will range from an individual to an organisation. A contractor of a construction project can subcontract the electricity wiring to the subcontractor. Recommendation as a subcontractor or main contractor The amount of resources available would determine whether a company or an individual can be the main contractor or the subcontractor. The private family owned company would be better off operating as a sub contractor rather than a main contractor or even carrying out both the activities of the main contractor and the subcontractor. The operations of the company as evidenced by the financial statements indicate large amounts of sum that has been used to transact the liabilities. As much as the liabilities still run lower than the assets, the margin is very small and would not guarantee that the company will not incur losses soon. A company would consider being a main contractor or a subcontractor depending on the balance between the assets and liabilities. This financial statement is important to determine the profitability and the liquidity of the company. A subcontractor may decide to operate so not only because of the limit of resources but because the subcontractor is more specialised in a given section of the contract than the main contractor. The company’s decision to become a main or subcontractor should be based on the health and safety of the employees and workers of the organisation which would have been provided to give a judgement that is based on all the factors that affect the operation of the compan