Business Plan Essay
For any business to be successful, a business plan is an important tool. Castles family restaurant aims to offer quality services to its customers so as to attract them and win their trust. To achieve these goals, it wants to improve its human resource department by integrating it with information systems. This system is referred to as human resource information’s system (HRIS) to manage administrative roles. As noted before, there is no stiff competition in the market but this is not a good reason enough of not aiming for the best.
Castle family business should try and reach more customers by reviewing its HR department for better services and a bigger market. Customer’s preferences change from time to time therefore castle family restaurant should be on the run and not in the comfort zone to satisfy their requirements.
Soon as new competitors may discover the business and try to take over. Since the mind of the market is to experience new things, the customers may be attracted to the competitors. All is well for castles family restaurant if it allows flexibility in its operation through the adoption of HRIS module. The business plan is vital as a good staff will lead to quality services and as a result a strong customer base. Revenue will increase cash flow the same and strong capital base. What does this mean for castles family restaurant? Expansion and growth is achievable as a result. Innovation creeps in through the flow of new ideas and adoption of latest technology.
A business plan is a statement showing organizational goals, the reason why they should be pursued and how they are to be attained. Organizational goals are the targets a company ought to achieve; therefore a business plan becomes very essential in attaining these targets. According to Eric Siegel (1993), a business plan also aids in decision making and may either target internal and external stakeholders. External focus may include stakeholders like the customers, investors, international lending agencies, taxpayers and donors.
While internal focus may involve development of a new product or service, adoption of new technology and restructuring the organizational structure. All these goals aim at solving problems facing an organization therefore every problem needs a solution which is achieved through a business plan. An entity may be faced with obsolete technology or a poor payroll system.
A business plan should be secretive as there are competitors who can copy the ideas use them to attain a competitive edge. It has been discovered that castles family restaurant has been facing a problem in the human resource department. The formal way employees are selected, recruited, evaluated and pay rolled is not pleasing at all and not concurrent with the new technology. This problem has to be addressed; therefore the need for a business plan arises. As an expert in offering business solutions, adoption of the human resource information systems software (HRIS) is suitable for this kind of a problem. But before adopting the suggested software it is essential to do a cost benefit analysis, identify the associated risks and its impact on this business.
Read also: PESTLE Analysis for Hotel Industry
Castle family restaurant is a business dealing with food and beverages. The restaurant is run by a family, only offers inside catering, has one branch and it’s the only restaurant in the region. Therefore, its growth is certain as it can open several chains to expand its business, expand its services by engaging in outside catering and engage new business partners since it’s a family business. Opening new branches means reaching more customers and making huge profits before competitors come into existence. Outside catering involves offering services outside the main place of business especially during functions like weddings, public functions, birthday parties, graduation functions and funerals.
Through this expansion cash flows in and financial targets are achieved. Engagement of new business partners allows innovation through exchange of ideas and also financial discipline is achievable since partners respect each other better than family partners. That is, business ethics is achievable and its core to success of each business. Since the business has potential growth as noted, it should take advantage of this to build a solid empire. More growth means more cash flow, a strong capital base, competitive salaries for the employees and customer satisfaction. Also another way of extending its services to its customer is by offering door to door deliveries. This is only possible through the acquisition of new delivery vans.
Change in every industry is very crucial and often, change is gradual. For instance a country can become a cosmopolitan where by new races come in, therefore their needs have to be satisfied through offering these particular services. For castles restaurant to reach each and every customer then specialized chefs have to be hired. This takes care of the changes in customer’s tastes and preferences. Another form of change is where competitors come in and for a competitive edge to be sustained by castle restaurant; the theme of flexibility has been addressed.
Business analysis entails identifying a problem, coming up with a solution so as to address business needs. The aim of business analysis is to improve efficiency in operation, reduce waste and create solutions. Who can carry out a business analysis? Anybody who is an expert in the business field can do this. Such a person is called a business analyst. The role of a business analyst is that of a strategist, an architect and that of a system analyst. BPR is the radical change and redesign of business processes.
According to Kathleen Hass (2008), there are various ways or techniques of carrying out a business analysis. To begin with, PESTLE standing for political, economic, sociological, technological, legal and environmental issues. Another technique is MOST covering the attributes of mission, objectives, strategies and tactics. There is the SWOT analysis which addresses the strengths, weaknesses, opportunities and technicalities of a business. For business analysis, SWOT is mostly likely preferred since it addresses both the internal and external business environment. The strengths and weaknesses are internal while opportunities and threats are external.
The castle family restaurant has a problem with its human resource (HR) function of selection, recruitment and performance evaluation. To begin with, the restaurant does not make selection based on merit. Since it’s a family business, selection is based on friendship which is not a formal way. Therefore the kind of staff in there may be incompetent and unqualified leading to poor services. Customer complain may also increase and these actually is a major threat to the business. The profit margin may go down making the restaurant unable to meet its financial goals therefore closing down. Also the restaurant does not have a formal way of recruiting its staff. This also creates a threat to the business as inefficiency comes into place.
For a successful human resource department, there should be a periodical performance evaluation of all the employees of the restaurant. As for castles family business, this function does not exist. It’s impossible to know how each employee is performing, if there the need of keeping a certain employee or firing him.
The reason why these HR functions are very critical is because the kind of staff a business has determines the kind of services it’s likely to offer. If the staff is well selected, trained and periodically evaluated, then the services are quality. Quality staff saves on costs in terms of money and time. Also a business creates a good public image through efficient and quality services. But for every problem, there has to be a solution.
As a business analyst I would advise the management of castles family restaurant to implement human resource information systems (HRIS) software specifically catered for these HR functions. This software makes management of HR functions efficient. The software can either be bought or designed by IT specialists hired by the business. The source depends on the cost effectiveness. A cost-benefit analysis is also carried out when carrying out business analysis. This analysis helps to determine the viability of the proposed technology. That is, it weighs the benefits against the costs.
HRIS type / comparison
HRIS module is a system that integrates human resource management and information technology. It helps manage administrative functions with effectiveness for the success of a business. Castle family business should adopt a training module which helps in tracking an employees training and development efforts. This system is normally referred to as learning management system and it helps in tracking an employee’s qualifications, skills and educational background. The system also outlines the courses, books, CDs and learning materials available to develop the required skills.
Castles family restaurant should also adopt the online system of recruitment. This encompasses the analysis of the personnel usage within an organization, identifying potential candidates, recruiting through company-facing listings and recruiting through online recruiting sites that market both recruiters and applicants.
Before buying the module, the human resource personnel should identify the different vendors to make sure they are licensed. Pure scrutiny should be done on the different modules being offered for the specific human resource function. Prices are to be compared and also the terms of the purchase. This comparison is very important as it helps the human resource personnel make the right choice.
Several assumptions can be drawn on the adoption of the proposed HRIS. To begin with, it’s been assumed that the proposed module is compatible with the hotel business. Also, the module has been assumed to be user-friendly one that’s easy to learn and use. Another assumption is that it’s a cost effective module after doing the cost-benefit analysis. Although at first high cost will be incurred, major benefits will be achieved in the long-run. Risks may be experienced when adopting the proposed module. Implementation time may be long thus proving to be costly.
There might be resistance to change as the human resource department might forcefully refuse to accept the new module. The assumption that the module is user-friendly and compatible with the business may turn out to be negative. Finally, new modules or technology may come into the market before implementation of the proposed module rendering it obsolete.
The implementation of the module can impact the business in several ways. Efficiency of operations is enhanced as the staff is formally selected based on merit. Corporate image becomes positive as the business is able to win public trust by offering quality services. The staff is likely to be paid competitive wages and salaries since quality services lead to more customers and thus, huge profits. Another impact on the HR department is that activities will always seem to be well coordinated.
When a business is run by a family, biasness is likely to be experienced. Therefore, adopting new HRIS module might eliminate this problem as formality is put in place.
As a business analyst of castles family business, the benefits of posed by the proposed HRIS module outweigh its costs. Therefore, its implementation is recommendable.
As a business analyst, castles family business should consider this business plan on the adoption of HRIS module for a successful business.
- Bent Flyvbjerg, Mette K. Skamris Holm, and Soren L. Buhl (2002), “Underestimating Cost in Public Works Projects: Error or Lie?
- Bent Flyvbjerg, Mette K. Skamris Holm, and Soren L. Buhl (2005), “How (In)accurate Are Demand Forecasts in Public Works Projects?”
- Eric S. Siegel, Brian R. Ford, Jay M. Bornstein (1993), “ Ernst & Young Business Plan Guide” (New York: John Wiley and Sons) page 3
- Kathleen B Hass, Richard Vander Horst, Kimi Ziemski (2008). From Analyst to Leader: Elevating the role of Business Analyst. Page 5
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