A MEETING OF MINDS?
Worden is a medium-sized industrial town in the Midlands. It grew up around the local electronics plant, which is part of a large international group that makes and supplies electrical components to the automotive industry. The economic fortunes of the town have consequently tended to fluctuate with the fortunes of the plant, and therefore, the automotive industry. The last decade has however been a relatively stable period for the town and it is thought that there will not be a change to the low rate of economic growth in the area.
The electronics manufacturer is the major employer in the area. Also in Worden there is a reasonable amount of industry and commerce ...view middle of the document...
The lease on these premises is due for renewal shortly.
Several potential threats appear to have arisen to these two practices. Several local customers, possibly prompted by concerns about their own profitability, have started to try to conduct ‘auctions’ between the two practices for their work. This has also encouraged practices from other nearby towns to try to poach clients with a view to capturing enough business to make relocation to Worden a viable option. Because of their size, both practices are unable to offer the full range of necessary services to the depth and breadth that clients are beginning to expect from their accountants. Both practices are not of sufficient size to enable them to enter into training contracts for Chartered Accountants.
MANN & MANN
This practice has two partners: -
Alex Mann is the senior partner. Alex’s father founded the practice. Alex undertook his training with the partnership and has never worked elsewhere. It is Alex, exclusively, that handles the farming clients having considerable expertise in this very specialised area. The remainder of his portfolio is made up of a mixture of clients.
Alex, who is 61 years old, is a mainstay of the local community and is on many voluntary committees that serve local economic and recreational interests. Married with four children all of whom are now married and have moved away from Worden.
Jackie Mann is Alex’s nephew/niece. He/she received their training as an accountant in one of the larger medium-size practices in Birmingham. Specialising in taxation and dealing with most of this work for the practice. Jackie would like to do more taxation work rather than the general mixture of work that makes up the remainder of his/her portfolio. Jackie is 41 years old and married with two children, one of whom is just about to leave university.
The practice employs 8 other people.
PARKER and HALL
This practice also has two partners: -
Leslie Parker was the founder, developing the business after moving from one of the very big accountancy firms, having had very high hopes of developing a large private practice. Although the practice has grown it has not developed to the size Leslie hoped for. Leslie would also like to develop the...