Business Management Essay
1.0 Identification of a business idea
The business unit will be called a ‘Computer Centre’. Its operational basics will be in provision of computer components and various services allied to the computing technology. This idea has been rationally arrived at following a comprehensive package of business ideas.
The choice of this idea is radical to various aided strengths and optimal scale of weaknesses that would even make the realization of the goal of profit making and to achieve an expanded portfolio in the long run. Some several factors have either been captured in the strategic goal of starting this company. (Kai, 2002, p. 76)
The choice of this idea falls under a detailed spectrum of the SWOT analysis in relation to the same strategies. However, the success of the idea is only limited to efficiency and optimal employment of the various strategic tools. However, with the highly growing state of technology, this business will perhaps hold a high place in revenue generation. For adequacy in its performance various important concepts will be applied to ensure a well coordinated activity performance.
2.0 Goals and objectives:
The identification of the computer center as a business idea is however remedied by a valid package of goals and objectives. At one point, the business goals are stated as a compound of both short run and long run goals.
Firstly, the market goal is the choice of short run goals. This involves the entrance of in the industry / market with the goal of establishing a business unit.
Like any other business conception, the choice and implementation of this idea will be to develop a concept through which the company will earn benefit and consequent revenue through practicing in various modalities hence creating wealth to company. Either, offering the people with a cheaper source of computer technology will be held at a high place. This will be through offering various computer components above that of various computing services.
However, the choice of economic goals would be of a long run concept. Therefore, the economic goal accrued from the idea that it would involve the investor (company) at personal level and the broad economy which would relate to the benefits enjoyed by the other units within the economic portfolio. At personal (company) grounds, this is a source of revenue to the company. This will ultimately create wealth upon improving the standards of living. In terms of the broader economic parameters, this will be an attempt to improve the level of the economic output through increased aggregate demand. This is benefit to the board citizen population where people will enjoy the long run benefits of the business output. (Chrystal, Lipsey, 1997)
Growth and expansion of the business is a subject of one among the long run goals. Due to limitation in the factors of production, the start of the business will remarkably be of a low capacity with the major limitation basing its roots on the limited factors of production. However, with expectations of sound business activities and through various strategic management tools, the business is expected to considerably grow in capacity to even reach a state of expanded horizons in the foreign market.
With the various goals, there are however some objectives which rise from the structure of the same goals. At one level the objectives of the business would be to provide a basic investment concept that will help my company achieve a success through acquisition of revenue by it’s activities. Either, the small venture characteristic of my business idea will be a stepping stone in employing various strategies that provides a pursuit in expanding the frontiers of the activity to even involve a foreign expansion. I adequately understand the role played by business units within the economic set up. The investment activity will therefore compound the objective of providing a support for an improved economic performance of the country. (Bjerke, 1999)
3.0 Company Strategies
The operational nature of the company will involve the application of various tools of business strategic management. Through various strategies, the business will then be able to adequately perform well in such an environment coupled will high competition. These strategies will help to provide an adequate state for economic business performance. Amongst these will be the financial management, human resource managements, process management, strategic and control management.
3.1 Nature of company’s business
The business will be to involve in repair and sell of computers, their accessories and components. Either, it will offer service packages to its customers such as programming, maintenance and other service advices allied to the computer technology. The overall nature of the business will involve the sourcing of various inputs such as computers and their components from big dealers and manufacturers before offering sales and other services on computers to the customers (Barrass, 2002)
3.2 Sector of operation
The operational sector will be in line with the commercial industry. At a fine description, the company will be sales industry. This is the essence of the nature of the activities that are operational within the company’s activity. Either, the structural outlay of the processes makes it to be inline with commercial sales activity.
3.3 Statement of the product
The company is described as being a computer center. However, the same description may limit the nature of products and services to certain parameters if a clear description of the products and activities is not provided. Its activities will involve a broad outlay of computers, their components and accessories. Either, some services allied to computers will be offered to our customers. These will include computers, hardware and software components above others that will be available at the company’s starting period or even part of future products developments. Above the product compliments, some services will be offered. These will include transport and delivery of the products to the customer points and the company’s outlets, various consultancy services in line with agency, service contracts to specific customers above others. (Roy, 1991, p. 56)
3.4 Market of entrance
With the activities nature of the company, the market of entrance in the short run will be the states competitive market. Various features can be credited for describing it as been a competitive one. Firstly, the diversity in the activities and operations within the market, where other companies does the business both at state capacity and international at volume. The choice of personal willingness with free will motivation is a basic package that makes this market to be perfectly competitive.
The broad diversity of features describing a perfectly competitive market is the greatest attribute of all these features. The capacity under which the price of the goods and services produced by the company is to be determined by forces within this market. The role of the equilibrium point (price) between the demand factor and the supply factor still holds within this market. The price is adequately set by the market environment in regard to the level of out put (supply) and the amounts the customers are willing to consider (demand). (Warner, 2001)
The success of good performance and a high competition is however determined by specific industrial adaptations in the line with efficiency and adequacy which helps such an industry to provide high quality goods. High quality is important for ensuring higher state of rational competition. Survival at the market will therefore involve a package of adaptation in terms of strategies that increase efficiency and a higher quality of out put. (Paige, Litrell, 2002, p.94)
3.5 Size of the Company
Due to the limitation in the factor of production, the size of the company is an important factor that should be considered in the first level of business entrance considerations. However, the short run decisions in the planned company’s activities leaves it as been a medium sized company. This is not a mere face value attribute arrived at but involves an intensified scanning of the availability in the resource package. Due to the startup, the entrance into the market will be in form of a medium sized company. However, with the diversity in the strategies which I am planning to employ in its operation, the future of the same medium company at the start is a bright one.
The goal and objective of its expansion to even reach the foreign market will be assumed to hold. This implies that, the long run size of the company would be inform of a big company which would exploit the frontiers of even the global market. (Martin, et al, p. 67)
3.6 Location and Financial Structures
As an important factor, the location and the financial structures remain to be relatively important factors of consideration in the start of the company. Their adequacy and proficiency is among the benchmarks in the array of the operational advantages that accrues to the company. The location would be in one of the big cities within my state. The choice of this location is accompanied by diversity of operational advantages.
These will include the adequacy of infrastructural efficiencies, immediate high scale of customers, sourcing of material above others. This location will involve the purchase of relative capital structures required in the investment process. Due to the huge financial requirement, personal savings would have a deficit in the business operations. An external sourcing of funds from the bank is therefore to remedy this capital deficit. The bank funding will be in form of a loan.
3.7 Management Structure
My business will take the form of a company. Therefore, an adequate management layout remains an important factor of consideration. The management structure is however dictated by the states company laws. At the top of management will be the Chief Executive Officer (CEO). Either, a complete panel of the directors will man the operational activities of the company. The role of the directors will be to formulate various operational decisions regarding the various areas of the company’s operations. A panel of managerial staff is equally important.
This will be a list of managers who will manage different areas of activities. The aspect of workers should never be overlooked. However, a complete package of workers will be employed for the various activities within the company. The complete set of management will therefore imply the nature of the corporate governance. Each member to this management will be allocated a distinctive role to play. (Street, Cameron, 2007, p.80)The choice of such a management portfolio is through the understanding in the concept of organizational behaviour. Generally, my company’s organizational behaviour is seen as a largely important aspect in defining the nature of achievement in the company’s goals and objectives.
4.0 Development of the Corporate Strategies.
4.1.0 Analysis of Needs
To operate well within the market, the company is obliged to having a good foundation of the above strategies. However, the same strategies will remain mere statements unless adequate methods and tactics of their development are put in place. Development of the above strategies will involve an evaluation of the basic parameters that may be defined in terms of its operational layout and activities.
4.1.1 Current Resources
An analysis of its resource package is however important. The package of the company’s resources can be evaluated in terms of its availability in regard to the factors of production. Elsewhere, a good portfolio into the factors of production as immediate resources is perhaps the biggest motivation towards the entrance into the market. The intended start up embraces a unique package of production resources. At one level, there is a well-planned production capital that is seen to adequately provide for efficient performance of the activities. The capital parameter has been taken to capture the variable of both fixed assets and the liquid financial requirements that would be required to adequately provide the provision of the basic needs into the activity. (Thierauf, 1999, p.75)
To my understanding and generalized for any rational investor, capital outlay forms a benchmark of internalizing the efficiency in the entrance into the market. This is a guiding factor in formulating the final hypothesis for the validity of my business entrance into the market. Either, an importance has been attached into the labour resource requirements in the company. This is in the understanding of the roles played by labour in the utilization of the other factors of production. However, an adequate layout into the resource of the labor forces, in line with experience, professionalism and competence of the workers has been done.
With the high population of persons willing to be employed, labor supply is seen to have been adequately planned for. Either, the financial capital budget has adequately budgeted for labour costs. The role of entrepreneurship has never been overlooked. A clearly drawn management structure has been an important attribute in the planning.
A discretionary structure in the company’s management has been scheduled to be adopted for a smooth operations and coordination of activities. All factors allied to land requirement in the production activity have been factored in. This comprises of leases on the real estates to be used in the operations. Elsewhere, the business site has been evaluated to provide a good atmospheric environment for the activity. (Elliot, Swartz, 2002, p.47)
4.1.2 Expected Performance
Through some statistical models drawn about the future conception of the company, a provision of a positively imagery about the future business trends expectations have been arrived at. Many variables and parameters into the functional equation of the performance outlay have been employed. Through the adequacy of the general strategic tools, the future of the company’s performance is expected to be bright if the general strategic structures are out in place. As a general attribute for all investors, expectation of business performance is generally good. To me, this is not an exception. Positive expectation is a motivation towards working harder towards the company’s success. (Bannock, 2005)
4.1.3 Problems to Face
However, success is not solely a business culture. Various elements of strategies have to sanction the success of the project. In an attempt to create an enabling environment for the same success, the company will face various problems. In an understanding allied to the market place a deep market analysis have been made market analysis has been made to bring out the nature of the competition and risks factor. At the foremost point, the business involves a start up in an environment comprised of various risks and uncertainties. The compliments of the political and the market risks are highly vulnerable into the success of the company.
The market is competitive and therefore a number of risks associated with such state would highly hinder the success of the company. In a deeper analysis, results shows that the level of benefits is directly related the risk premium. Consequently, the higher the risk, the higher the benefit and the opposite is true. Above this, there are other structural implications that hinder the adequacy of the performance within the structure. The market is comprised of a structure with high and low sales revenue at different periods of the year. It can be shown as below.
4.1.4 Environment of Entrance
The environment of operations is largely competitive with a high requirement of innovation and technological pursuit for the highest quality of products. The high standards of operation however are a threat into the nature of businesses. However, general environment is adequate and promising for a good operating atmosphere. (Statt, 2004, p.104)
With the nature of the business, a comprehensive array of stakeholder forms part of the company’s activities. Such different stakeholders play different roles towards the success of the business. Firstly, the company’s customers are deemed to provide an important role for a success since the business involves the production of goods for consumption by the final consumers. Therefore, the consumers offer an attractive package in source of revenues for the company through its sales. The government contributes directly and indirectly toward the business activity. At one point, the government exercise taxation, and formulates various regulations and orders to be followed in the business activities.
To this attribute, the government plays an important role towards protecting the general sovereignty of the consumers and the good operating environment of the company. Another stakeholder is the bank. This is where the company has sourced its operating income through loan borrowing. To the bank, the company is its client. (Culpuc, 2001, p. 27) Either, the bank receives saving from the company through deposits. Banking of the company’s money is an equally important aspect. For the growth of the company, other shareholder will be invited to join it through capital contribution. They will play a substantially important role in the company’s activities.
4.1.6 Business Location
The location of the company will be in one of the big cities within my state. Such a location is strategic in offering efficiencies into the operational structure of the company. Due to the intensity of activities within this city, there will be a good source of customers, material inputs and other infrastructural efficiencies. (Alon, Shenker, 2003, p. 52)
4.1.7 Financial Analysis
The financial analysis is a whole important aspect into the business structure. The business is estimated to have a starting capital of 500,000 pounds. Part of this amount will be solely supplied by personal saving, return on the investment held in the capital market above some borrowing from external financiers. Costing systems will commensurate with specific cost centers though basics of optimal costing will be applied for the least costs at the most optimal revenue. Either, pricing of products will be in correspondence of the input cost factor above that of the dictates of the market forces. However, a balance will be stricken to ensure a pricing intercept that optimizes revenue with subject of consumer sovereignty at stake.
The company will be formed via legal pursuit and acquiring articles of association and memorandum of understanding. A package of commensuration with the states legal requirements on company formulation, which dictates the various laws governing this institution and the external environment, will be needed. Taxation remains an important aspect in the company’s activities. However, the tax levy is proposed to fall within the states corporate tax on corporation’s revenue.
4.2.0 Business Tools
For the full success of the company in this environment, a clearly defined, strategies as tools will be used. Since the implementation of the management activities is the most important factor, the same will never be compromised.
Planning and decision-making will involve a divergence into the evaluation of the strategic management accounting tools.
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