Accounting

Weekly Notes - Two

Chenqi Dai - #999856259

The case has introduced about a new online music business called: MUSICJUICE. The company was established based on an idea form set a platform for individual musician to share their music to fans while raise fund to record CD albums. Beside the normal music sharing business, the 2 founders of the website want to make a difference by offering the musician additional funds for tour. The fans would also get extra experience if they invest for more than 10 dollars. They would become a premium member and receive bonus like signed CD or preview of unreleased songs. The two founders believe these two strengths would help them enter into the market and they have successfully have 180 signed up musician during the first 4 month of launching the website.

Several issues has risen during the time of developing the website. The two founders has sought many IT developer to help them create the website but soon after the development has began they found that another competitor called “Slicethepie.com” has entered to the market as well. This makes the small industry more competitive. Due to the reason of “Slicethepie.com” is launched by a large blast campaign. It is hard for MUICEJUICE bring awareness in the public. Also, the collaboration between the two founder did not go well since they both lack some knowledge to judge the actual progress of the website. Additionally, the company has very low remained on cash after paid out the developer, this would indicate a going concern issue for the business. The business did not implement an expense control thus there are extra cost generate due to the delay project. There is one more important issue exist in the case is that the customer may loose interest to the website because the site has no unique feature to keep them stay or the musician registered on the website is not enough famous to attract more fans. This issue has also indicated the website lack of successful marketing...