Assessing The Performance Of Small Business Enterprises Commerce Essay

Assessing The Performance Of Small Business Enterprises Commerce Essay Small business enterprises are managed by the proprietor and the small enterprises settle on the wealth of a country. Small enterprises make extra job. In the start small enterprises resist to execute well as of need of skill and need of preparation. SBEs frequently create their trade in four category of souk, those are transaction, wholesaling, check if and developed. At the similar occasion there are so numerous challenge that small business enterprises have to features. If there is a slump, the banks will not advance cash, they cannot increase the trade and they have to use the coins minerals. Some owner takes up their relatives member so that they cannot rest rotten team. Normally there is an additional dare that the small enterprises visage is the wealth. Often they face hitches in raise finance when they open the business. If an industry to be winning, the organization must be fine. As Jerrys notice to the commerce is scarce, he has to employ superstar to run the company. As a boss, the being who undertake the duty should be clever to do preparation, jealous and organising. The major reason for the breakdown of the commerce is need of preparation. This will be determined by put superstar to mange. The moment topic is that the venture has no correct arrangement. Organisational association is the input craze for the victory. If there is no arrangement, the inter-relationship will not be fit distinct. This will be attributable for confusions inside the venture. When there is a arrangement, the workers will interrelate with every other according to that. One of the workers should be in accuse of day to day performance and all the performance should have the books, so that if there is any error, the organization will approach to recognize. The duty has to be kaput down into sector and given to suitable department. Every section should have a boss to direct the workers. All the employees errands and errands should be fined distinct. When the workers are agreed with convinced tasks, they will be enthused, so that the work income speed will go downwards. In order to inspire the workforce, the organization should prize them for their achievement and provide them the credit. They have to believe about the decrease of their possessions and property. By implement all of these data; Jerry can defeat the here state. Even while the sales are rising, the cash flow of the business is less than future. It illustrate that the charge is too high. The running should look for the probable habits to remain the rate downhill. An organisations goal must be to lessen cost and exploit revenue. If they be the rate down, the company will be rewarding. The company have to reject borrow wealth from the banks, so that they would not need to forfeit awareness for the currency that the banks borrow them. How would you review the performance of his business? (1b) In direct to reconsider the presentation of the industry, the work revenue, cash run and sale should be measured. If the work earnings rate is elevated, we can approach to a close that the workforce is not enthused or the work is not attractive. In command to inspire the workers, they should be known with some amount of gratitude and everyday jobs. The organization has loyal some mistake in recruit individuals and charitable them the fitting roles. As a result the workers are not stimulated and that has augmented the struggle earnings. The proprietor and the organization of the corporation have botched to diagram correctly when they begin the company. They have not adopted an organisational arrangement which is a necessary feature of the running. If they had adopted an arrangement, they would have been clever to make the most of their workers. We can review the act by consider the money flood as well. According to the point those are prearranged; the coins flow was awfully fewer. If this ruins, the troupe will face need of cash liquidity. It will formulate a force on fertility. This may pilot them to close the exchange. The fee is too tall and it has through a force on the cash flow. The cost is too high since the concern has lent too many workers. The recital of the business is deprived so distant, because of the neglectful of the running and the employees. They have not capitalised in key subject and which has lead the concern to a tricky state. The sales is rising, from this we can approach to an end that the souk is beautiful. If the business capitalises in its advertising, it can get better on its recital. Help Jerry identify his companys strengths and weaknesses. (1c) SWOT analysis of Zenith healthcare SWOT analysis is used to review the internal aspects of an organisation. By analysing the internal aspects of a business, present position of the company can be identified and the solutions to increase the performance will be taken. S stands for strengths, W stands for weaknesses, O stands for opportunity, and T stands for threats. The positive factors that help the performance of the business are the strengths of that business. Weaknesses are the factors that draw the company back and lead to poor performance. The potential chances to improve the business are opportunities. Threats are the factors which will affect the performance of the company. Strengths Sales are increasing and it illustrates that the business has a good demand among the public. This is strength to the company and it can capitalise on this. It is quite easy to the company to increase the sales further by implementing good marketing strategies. They can advertise the services by using TV, radio, news paper and internet, so that they can make an awareness of the products and services among the public. They have got competent staff in the company. Even though this is a good strength, the company is unable to get the full benefit of this as they do not have a proper structure. Because of having competent staff, the company can achieve the goals easily if they handle the staff well. The owner has good experience in this field as he has been working for NHS. This will strengthen the performance of the company to some extent. Weaknesses The company does not have proper plans and structure. These are the main weaknesses of the company. If there is no planning they cannot conduct the business successfully. Planning is the essential aspect in management and it is the key for the success. They have to estimate the resources that they need to conduct the customer service in a preferable way as a service providing establishment. Organisational structure is the base for the inter-relationship and it determines the performance. If there is no a certain structure there will be plenty of confusions, and the company cannot build the relationship among the employees. Cash flow of the company is less. It means that the transactions are not taking place in a regular basis. The cost is too high, so that the profit will be less. They are unable to keep the cost down. This is also a weakness of the company. This happened because of the lack of attention to the business by the administration. They have hired too many employees and it has a great impact on their cost. The lack in formal qualifications of the employees also will make an adverse impact on their performance to some extent. Opportunities New organisations hesitate to get into this market to establish their business. This is a great opportunity to the company to capitalise on the market. They have enough sales and that provides them an opportunity to make more profit by keeping the cost down. Threats The competition in the market is increasing and some new companies are embarking into the market. If the company fails to do a good marketing, they will lose the sales. In order to overcome this, they have to implement some marketing strategies. Net profit of the company is going down and this may lead the company to further troubles. In order to increase their net profit, they can refrain from borrowing money from the creditors and the banks. They have to make sure that there are no unnecessary expenditures. These are the threats that the company has. Recommended plans to capitalise on the companys strengths, and overcome its weakness. The ways to capitalise on the strengths To maintain and improve the sales, the company has to implement some marketing strategies. They have to advertise and make the public aware of the business. The company should provide a good service to the customers and carry the after sales service well. This will attract the customers and make them stick with the company. At the same time, the recognition that the company gains will help them to compete with the competitors even the competition goes up. If the owner pays enough attention to the business, he can improve his business as he got some experience in this field. Plans to overcome the weaknesses If the company adopts a suitable organisational structure, they can take the full advantage of having competent staff. They have to define the tasks of each employee to get the employees motivated. It is better to have a flat structure which will enable good communication within the organisation. It will also help to get the feedbacks in a quick time. In order to motivate the employees, the company can take some actions such as rewarding them when they succeed and, giving them responsibilities and recognition. When the new employees join the company, the company must provide them proper training, so that they will come to know about the work processes in a quick time. They have to lay off some of the employees who are not effective, so that they will be able to bring the cost down. It will improve their cash flow. They have to repay whatever they owe in the correct period of time and, they have to get the money from their debtors on time. These factors will also improve the cash flow. Jerry has bought you a one-week, return ticket to his holiday home in Florida. He wants you to help him investigate ways in which the business existing performance could be maintained and strengthened (2b). In order to maintain and strengthen the performance, the owner should review the business often and if he finds any errors, he should fix them. Meetings should be held often and the opinions of everyone should be considered. They must let every now about what happens by providing minutes. As a small business enterprise, it would be preferable to adopt flat structure. They should make sure that a good communication exists within the organisation. They can provide proper training to the employees and assign them suitable tasks. The company has to lay off some of their employees who are not effective or necessary. As a service providing company, they have to mainly focus on customer service. They can use some new technologies to expedite their service and get them effective. They can do the segmentation and target a particular sector to succeed in the market. They can advertise the service on TV, Radio, News paper and Internet. While you are with Jerry, could you also suggest new areas in which his business could be expanded? (2c) Introduction If the business is to be expanded, they can open a new branch where the company can make more profit. When they choose the place where they open the new branch, the management must consider whether the place can be accessed easily. They have to consider about the transportation factors of that particular area where the company will establish its new branch. When the company establish its business in a new area they will have to analyse the following factors. Political factors When they establish their business in a new area, they should make sure that the political situation in that area is conducive for the business. If there is terrorism or political instability in that particular area, it is better to refrain from establishing the business there as it will be much harder to conduct the business successfully in such an area. The company will have to take taxation issues in consideration as well. In some areas the taxations will be too high. They will have to avoid those places if there is not a good market. Economical factors When they open a new branch, they must make sure that the people in that area have the power to buy their goods or services. If the people have the power to buy, the company is going to have a good market. Social factors As a healthcare probably they would not need to analyse the social factors as everybody has to consult healthcare centres. Technological factors They have to consider whether they can have a good internet service in that particular area over which they can operate their business in a quick time. The company must have a network within the establishment as they will have to share everything with their staff. They will have to make sure that they will be able to get competitive advantages by using technologies such as TV and Radio. The message that they convey over those technical factors should reach the public. You realise that the moment has arrive where it would be appropriate for Jerry to review his existing business objectives and plans. Using your initiative, help your friend outline those key areas where attention should be given (3a). Key areas where the attention should be given Cost of products and service (improve the cash inflow) Human resources management (motivating employees and setting objectives to them) Marketing (Advertising and maintaining the sales) Customer service Planning and organising Organisational structure Above mentioned factors deserve some degree of attention and the management should pay their attention to those areas in order to improve the performance of the business. Accordingly, prepare action plans to implement changes (3c). In all the stages of the business, a company needs to make decisions. In that process, companies break down their tasks into small steps and do the planning to accomplish those tasks. The plans which are taken in this process are the action plans. A company may have several goals. Those goals should be broken down and each action should have a timescale. What actions you will take? How you will take action? Who or what will help you? Why you might not take action? When you will take action? Managers of the company should answer these questions when they plan to take actions. The planning process can be broken down into three steps. Understanding where the business is in the present Deciding where should it be Planning how to get there When preparing action plans the following aspects must be considered. Objectives what is the purpose of the action? Priorities whether or not the issue need attention immediately Benefits how the stakeholders are going to be benefitted by the action? Timescales and milestones consider when the action should be taken and the constraints of it. Financial and other resources the cost of the action should be taken into consideration. Responsibilities consider who will take the responsibility of the implementation of the action. Measuring success what will ensure your objectives are achieved and what will you use to measure the outcomes? Action plans to Zenith healthcare Actions to be taken Improve on the customer service Develop an organisational structure Develop marketing strategies Motivate employees Offer training to staff Reduce cost Improve the cash flow Develop the communication within the company Help Jerry assess the possible impact of changes on the business and his management team (4a). They can improve the customer service by expediting the service. In order to do this they have to improve their technology. The company will have to send money on buying new technical equipments. The company should adopt flat structure as a small business enterprise. In order to do this they will have to define the tasks of each employee and develop a culture. When this has been done, all the activities will be systematic. They can develop their marketing strategies by doing segmentation, advertising and promoting. This will let them to gain competitive advantages. The company has to motivate their employees by giving them recognition, rewarding for success and letting them contribute in decisions making. If the employees are motivated, they will do what they are supposed to do with determination. They have to let the new employees undergo a training program, so that it will not take much time to them to identify their roles and responsibilities. The company will have to improve the cash flow and which can be done by paying off creditors, get the money from debtors, reducing cost and maintaining stock. To get the money back from the debtors within the time, the company can give some discounts. In order to reduce cost, they should review all the processes and eliminate unnecessary expenditures. They can maintain the stock by carrying stock taking, also they can recognise the items which do not move and avoid stocking them. They should develop communication within the organisation by conducting meeting often and providing minutes to all of their stake holders. They can use the technology to build a network within the organisation and let the employees to access it. These actions will be helpful to get the feedback as well. Explain to Jerry how the implementation of changes should be managed (4b). Managing changes When a company brings up the changes to its managerial approaches, the management of the company should be particular about that. In the event, the changes have not been properly implemented those changes will push the company into severe difficulties instead of leading to success. In order to make the changes successful, the management has to monitor all the activities closely and carefully. Another important thing when a company brings up the changes is making the stake holders well aware of the purposes of the changes. This will alleviate confusions and conflicts. Team leaders should have the power to influence the employees and convince them of the importance of the changes. Some employees may misinterpret the actions and they may oppose them. Management has to make everyone understand the facts. Jerry is worried that the change process could go wrong. To assuage his fears, explain to Jerry how possible it would be to monitor changes in improvements and performance (4c). The changes should be brought to the business in order to improve on several aspects of business. It is quite compulsory to a business to change the strategies to withstand the fast changing environment. In the event the changes are implemented properly and monitored well, the management has no need to bother about the changes.