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The assignment mainly focuses on understanding the nature of small business with the variety of business and management concepts. In this assignment target on performance evaluation of small business, applying changes to improve business performance, assess business objectives and plans , introducing new business plans.
Company profile for Shine Communications
Among almost all the marketing communication agencies Shine Communications is ranked as one of the best small company in UK. Shine Communications was founded in 1997 as an agency for public relations and marketing communication and the company runs on four basic values: Smart, Fresh, Connected, Committed. Shine Communications awarded as the best small business / company at Sunday Times Best Small Companies To Work For 2012 and also the CEO Rachel Bell was recognized as the best leader. The company is changing day by day with the latest requirements. Shine organize many campaigns under different ways but the major way of delivering is social media activities. Team strength of the company is highly counted in scale of small business. Shine Communications is running with a team around fifty heads and they are able to work with most strong brands around the world.
SWOT analysis for Shine Communications
Shine Communications is the most sought after personal relations agency over five years in UK.
Shine Communications has strong working capacity with strong brands across the world as BARCARDI , ebay, paramount , Intercontinental hotel group etc. it is a huge advantage for Shine Communications to have such large dealers in their business. That cause to build a magical reputation to the company name.
Shine Communications is well diversified across their pattern of delivering campaigns. Shine 1 is the place where all the campaigns are built on with strategies , valuable ideas and PR related materials via marketing mix. Shine 1 also focus on delivering solutions for brand Management. Shine Studio capable enough to deliver high quality collateral design , production of videos, photography to client. Shine Live is currently engaged in for develop events , direct marketing , sampling , guerrilla marketing. Shine creations are mostly backed by social media. This way of interacting is highly demanded. When comes to Shine Social Media it based on five C' s ; content, channel, community , carrots and connection. The diversifying factor within the business is attain higher strength to the company.
Research and Development
For the development and sustaining in the industry each and every business need R&D. Shines Communications particularly does not has a department to carry out such procedures. But they always alert on latest trends and fashions in market , culture and society. In that way they are able to keep their campaigns refreshing. That ability of being alert add more and more values to the business.
When compare to the same scale business the expected revenue is not much satisfied that is about £35000 (36%). it is not enough revenue because the company operates under different categories.
Count of heads
Shine Communications work with a team of less number about 56. All the functions carried out by them in a tight schedule. In one side it adds weak point to the company .
The company has the ability of building strong client base due to the versatility behavior of the company. At present they are also working with iconic brands in the market under different categories.
As the company get to know day by day ,with their achievements and awards it will lead to marketing efficiency in the industry.
Shine Communications has to face competition posed by other local small firms with the special client base they have from surrounded areas. And also the competition from large scale PR firms that serves nationwide.
Analysis of the business performance
Performance of a company depends on different factors. To evaluate performance of a company comparatively Porters' five forces model gives a large cover up. The task facing managers is to analyze competitive forces in an industry's environment in order to identify the opportunities and threats confronting a company. Michael E.Porter of the Harvard school of business administration has developed a framework that helps managers in this analysis.(Morden ,2007)
According to the Porter establishment of many companies pose a threat. Industry of PR is fully filled with thousands of companies , so the buyers can easily move on to other company. As PR is not much capital oriented industry so entry is much easier compare to another industry. so there is high threat of new entrance.
Bargaining power of customers is the power customers have to stress up companies in a particular industry. In PR applying this factor is not identical. Some firms highly depend on customers while others neglect that so the bargaining power can be ranked as moderate factor. PR is a industry build with knowledge. It is very hard to find good PR people so they can demand more. There is competitive rivalry among companies in the PR industry because loosing a one customer may cause to lose ten.
Value chain analysis contains interlinked activities that finally targeted to achieve customer needs and requirements. In each stage it adds value to the final product. In the industry of PR it targets to grant customer satisfied final product. Activity of the value chain consists which are related to sales, marketing, promotional. As a small business in PR industry it needs to pay attention on that activity. Elements of service represent activities related to after service, assisting, handling complains. As a company in PR industry it is highly connected with those element.
How to overcome weaknesses
As pointed out in SWOT analysis there are few weaknesses identified. The less revenue compared to other companies in PR industry is an issue related with the company. To overcome this problem company needs to focus on generating more and more profits. For that they need to target as well as high budget and low budget campaigns. Because sometimes profit margin of low budget is higher than profit margin of high budget.
And also they must carry out promotional campaign emphasizing their awards in order to attract more and more valuable customers
Strength of a working team is not always depends on count of heads. But in Shine Communications there are only 56 employees in the company. Because they are in PR industry they always have to deal with people who need everything perfectly done. As the few number of work force they have a very busy and tight work plan so sometimes they have to face problem of flexibility when dealing with customers. So it is better to hire well selected employees to overcome being inflexible amidst customers.
How to maintain and strengthen existing performance
Shine Communications operates with core values inside the business that helps to run business functions smoothly. That leads them towards more achievements. In order to maintain performance they need to refresh their ideas continuously. Customers expect different type of outcomes from the company. Identifying new trends in cultures, market and society is important because customer's preferences change with those trends and factors.
In this type of business it is needed to build great team spirit and relationship. To strengthen up existing performance in a company team playing plays vital role. Shine Communications already having good team spirit and that should be keeping up and strong to maintain performance.
Shine Communications reach their customers in different ways and they value their customers. It is better to tie up a knot between customers in a small scale business because one customer means lots. To attain more performance it is required to value people indeed.
Performance of a company rather depends on capabilities of the employees of the company. So in order to acquire high performance it is needed to improve performance of individuals. For that employees should be trained, push to gain new knowledge, encourage to learn. Those will definitely leads to improve performance of the company.
New area which the business could be expanded
It is a way of performing well by entering to a new field of business. As a company in the field of PR the Shine Communications can expand their business operations in to different fields. As per the behavior of the business and the way they conduct their business activities most lead to the sector of marketing research. Marketing research is the function which links the consumers, customers , public and the market through information. Information used to identify define marketing opportunities and problems , generate refines and evaluate marketing action and activities monitored marketing performances and improve understanding of marketing as a process(Macolam,2007).
Shine Communications already in the position of understanding behavior of customers and they are deeply study the changes in market as well as every aspect of the society in order to carry out their campaigns. So shine communications has a passion for researching. In a marketing research it is important to measure what we done. Validity refers to the extant to which we captured data and are we measuring what we intended to measure(Naresh,2006) . Shine Communications measure the output of their effort that they achieved the required target. So by using those techniques they will be able to measure the impact and benefits of conducted marketing research to a particular company.
Identify and assess the existing business objectives and plans
Objectives of a business define where the business wants to go in future and what we want achieve in a given period of time(Baker, 2008). Shine communications are in a plan of getting more and more closer to their customers in order to deliver standard service to them. As per the Truban(2002) the customer is the person receiving the outcome of the campaign in fact we must look at the deepest level of specific satisfaction. So according to that shine has a plan to customize their distribution channels suit to the present day demand. They are planning to use LIS Shine the mailing list and other social web sites to make aware and advertise what is happening , new posts , new applications for those who are interest. According to the Rothwell(2004) the main objective of staff training and development are to improve the quality of employee for achieve different tasks. Shine is not in strength of allocating time for series of training and development. But they are having a plan to develop skills of their employees by using twitter and LinkedIn. In that method they are having objective to allow their members to share skills and experience with others over the social media.
Revise the existing business plans of the organisation and suggest new business plans
As per the Pinson(2004) business plan is extremely important for the success of business and it is main purpose is to give a picture of the future business. Business plan is very much important to have a integrated vision about the company , mutual understanding among the team , recruiting, determine financial requirements and many more things. Shine Communications should focus on raising their profit margin for that they need to develop business plans in order to achieve that task. Also the company must concentrate on recruiting procedure. To build up strengthen high spirit team they must have a good plan for manage human resource.
According to the new business era suggested Shine Communications is needed to develop new business plans and objectives in order to capture the market. Business plan is not a fixed written document that cannot be amended according to the changes within the company (Carig,2009). So as the suggested new business field of marketing research they are expected to develop new aims and objectives to the company 's business plan. First company needs to develop a methodology to conduct the researches. That means they should experiment on different ways to gather information and measure the result. The best result methodology can be selected. Then the company needs to hire capable human resource to carry out field work as well as indoor work. Then they must develop a business plan to promote new business area to existing customers , new customers and outsiders by social media.
Ð†Ð†Ð† Prepare an action plans to implement the suggested changes
According to the ideas of Bozeman and Straussman(2003) action planning guide to day today activities in a small scale company. It should be a strategically build up framework that must significantly impact on the business activities. It is important to plan operationally and strategically when a company move to a new business , product or service. As per the ideas of Homburg , Kuester , Krohmer(2009) when preparing a action plan first required to develop statement of what must be achieved. In there it is needed to specify the types of the outputs and results that should come out. Then it is needed to spell out the steps that need to follow in order to achieve the objectives and how it is going to take place. Each and every step of the action plan should be carried out carefully by delegating the responsibilities and power. To determine the best methodology first need to collect information from direct contacts already they have with the company. Then focus on small and medium scale groups to collect information. Then use shine's social media activities in order to gather activities. After collecting enough information it should be processed to select the best methodology. For the selecting appropriate methodology company has to follow above specified steps accordingly by the existing staff in a given timeframe. But for the future tasks the existing staff not be sufficient enough and they are not technically and skillfully ready to carry out the tasks. So the next action should be recruiting research capable human resource to the company. Then they will be able to carry out the next level tasks efficiently and effectively to meet customer requirements
Outline the changes of the organization with the new revised plans
The rapid change affects the organization development as well as the organizational environment. The transformation of the organization can be a competitive advantage while it may cause to collapse the entire organization structure (Hudson , 2001).
As per the idea of Robbins(2007) structure of organsation reflects the meaning of framework organized on the group who are connected under one roof. It shows the way they are working , power delegation , responsibilities , leadership and how the decisions flow. According to the new plans the organsational structure is liable to change. Because of the new recruitment procedures and new business field new posts are generating , new leaders are emerging . so the existing structure of the organization has to change according to new business plans.
According to the Smith and Fingar(2003) business policy provides guidance to predetermine aims and targets of the company to cover up aspects of structural , functional manner. With the establishment of new business field in a existing company it cause to do changes in the existing business policies.
Impact that the proposed changes on business and personnel
Small scale enterprises rarely believe in policy changes and business changes. They mostly do changes with the intension of creating better work place and work environment
(Obien 2011). In the Shine Communications the changes going to made may occur different impact on both business and personal. By proposed changes the business will get new dimension towards the success. The business will be more profit oriented in a budgeted framework and have to focus on both iconic brands and locally distributed brands. Shines policy changes may lead business to more and more customers locally and nationally. Until new policies and practices become familiar and established organizational performance can be affected according to the changes made. Performance may grow up while employees are confident enough to suit with the new business procedures (Smith and Fingar 2003)
With the new business aspect employees should be able to work in each and every department without any hesitation. For that the existing staff need to study the new business area and its operations thoroughly. Because being a small scale company no one can limit only tone field of activities. They are expected to get on the job training by sharing experience among one another. Managers are to use the listening and questioning methodology that transfer employees to correct frame work that leads to target organization objectives in a team spirit (Conaty and Charan ,2011 ). To build up team spirit within the organization there should be a bond between new and existing staff. For that it is required to plan and develop campaigns which allows to join together and share skills and experiences. That changes help to develop employees personally and finally it leads to whole performance of the company.
How the changes on business going to manage and measure the performance
As per the ideas driven by Pinson(2004) significant changes within a business may cause to change management , production , policy negatively. When applying changes to existing business it is needed to systematically minimize negative effects on the business functions, employees and management. Specially there can be competition among new and existing employees because of the level of skills and experience. A smart competition can be admired but if it is growing up to rivalry it should be attended. Employees with different abilities must be appreciated while giving others a chance to improve their skills. The term diversification is connected with changes of a business function , market , product line . Diversification can bring business towards while much diversification pulling business backward. By adding more business fields to the existing business it may cause complex situation because of too many business functions and activities. But by concentrating on each and every function clearly and particularly identifying specific factors the negative impact on business can be reduced. As per the Malhotra(2006) performance of a new plan should measure and report in detail in order to significantly identify.
Performane by daily basis
Tasks of new plan
4 - High performance
3- Average Performance
The business environment of small scale business is rather different to large scale business environment. Business functions of a small business is not much complex to understand and also it is easy to measure the performance. The selected company has activated business plans and it can be advanced by applying minor changes. Though it is an small company changes in business policies , business functions and objectives cause large impact on the performance of the company.