Example Answers For Assignment On Small Business Enterprise
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As an experienced business executive, what advise would you give Jerry, eg: a systematic approach to starting up a new business, structure, etc. (1a)
Being an experienced business executive, I can see that the business demands huge efforts for success. In case one wishes to gain more, the best way is to start a business. Although job has fixed income for fixed work, increased efforts in business can result in huge benefits. Therefore, to carry on the business, it is necessary to put extra efforts for success. For Jerry, it is suggested that he should not continue his job further; else it may affect his business growth. The risk management strategy shall be made use of for success and growth (Lam, 2003).
He should put his efforts in his business and make use of the experience he gained while working for others. These practices shall be put by Jerry in his own organization. He should strategically manage his staff on a regular basis. This would help him in making optimal use of his human resource assets. Additionally, the lack of capability of administration department could also be improved through this approach. It is a common concept, that greater the rate of risk, greater is the rate of return (Pakroo & Pakroo, 2008). So leaving a job, Jerry would though take a risky step; it might result in his long term success.
Additionally, Jerry has a good back up of money that he got from his grandfather. Money matter notably for a business in inception stage (Boyett & Boyett, 2001), therefore Jerry needs to devote more and more time for the business, without the greed of having job along with the business.
How would you review the performance of his business? (1b)
To review the performance of his business, the best method is to see at the growth trend of the organization. I would analyse the past performance of Jerry's organization to note how the organization is performing, what are it's weaker and stronger areas, and how can the improvements be made in this business. I would review Zenith Healthcare's performance thoroughly. Due focus shall be laid on total control over the operations of the organization (Druckman, 1997). There should be regular reviews of performance. I would analyse the weakness areas to come up with certain suggestions.
To review the performance, I would further arrange meetings with staff members to know about their skill sets. Human resources are the most important asset for any organization. There is the need to have strong people in the organization who have their own area's expertise; this would entail the success and growth of the organization as a whole. Therefore, for Jerry, it is crucial to respond to problems. He shall devote his full efforts for this.
I would have a look at the satisfaction level of customers, by checking their improvement in health. This is of supreme importance for Zenith Healthcare. Followed by this, I would staff members' performance chart to be aware of their level of involvement for the growth and success. These all strategies would help in analysing the performance of Jerry's organization, and thus would further help me in giving better recommendations.
Help Jerry identify his company's strengths and weaknesses. (1c)
For any organization to be successful, it regularly needs to review its strengths and weaknesses (Pakroo & Pakroo, 2008). These factors can help the organization attain better results due to the clear description of areas that need improvement, and the strength areas. The following discusses about the strength and weaknesses of Zenith Healthcare.
As far as the strengths associated with Zenith healthcare are concerned the organization has an experienced person, Jerry as its owner. Therefore, there is a huge potential with the organization. Right use of strategy can result in growth and success. The sales of Zenith are growing in spite of lack of control by the owner. Therefore, there still persists huge potential in the organization. The optimal use of their staff is still to be done, which can result in increased benefits for the organization.
On looking at the weaknesses of Zenith Healthcare, first thing noticed is the lack of time given by Jerry to carry on the business operations. There is no official in charge to look after the work activities of 5 staff members. The organization has to also note the point of its lack of growth of cash inflows in spite of the increased sales. The administration department is not given due care to carry out business operations. Jerry also needs to note the point that the competition in his industry is raising at a great pace and results in increased mergers and acquisitions.
Following the analysis of the company's strengths and weaknesses, recommend a plan of action that will capitalise on the company's strengths, and overcome its weaknesses. (2a)
In order to grow at a good pace, company needs to get rid of its weaknesses and make use of its strengths to capture a good share of market. Therefore, the organization shall adopt the action plan as described here on to growth at a good pace. Firstly, Jerry shall leave his current job to have a focus on the business growth.
The competition is increasing with time; there are regular amendments in policies by the organizations to survive in the market (Bradt et al., 2009). Therefore, the need is to work out thoroughly on the weaknesses in order to ensure that there are no risks associated with the business, or better say that the risks are optimized. For this purpose, the organization shall work duly on the weakness areas and understand the root cause of the same. There should be someone who looks after the administration tasks of the health care as well. Jerry should act as a leader followed by one administration head. Thus administration should be responsible to look after all the activities leaded by the administration head. This would form a better hierarchy of operations for the organization.
There is the need to have a proper check on the root cause for no increase in cash inflows in spite of increased customer base. Thus, there exists some flaw in the operational management operations of the organization, which needs improvement. These need to be taken with due care to result in success for long term.
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).
Looking at the description of the business status, it can be noted that Zenith Healthcare is doing well in spite of the lack of focus laid by Jerry. He is not devoting much of his time for business due to his job. He shall leave the job to focus completely on the business.
Health care organizations are increasingly migrating towards UK. The competition is rising with time due to these competitors belonging to local region as well as from abroad such as USA. Therefore, Zenith Healthcare needs to take steps in this regard. The organization shall then make efforts to expand further as this is the right stage for growth and expansion. The organization shall work aggressively to capture a good share of market before new entrants capture the whole market. Therefore, at the instance of an offer from Venture Capitalist (As discussed in the case study) shall be taken with due care. The best way is to thoroughly analyse the synergy that would be created if the organization is acquired (Hunt, 2009). This would help in better valuation of the acquisition. In case the acquisition results in increased synergy which is beneficial for the organization, Jerry shall move forward for the deal.
However, in case there is not much scope noted for this deal, there are number of options available for the organization. They shall make use of joint ventures thereon to work in collaboration with giant foreign players. These giants would help in having a better control over the process of recruitment and selection, staff and medical personnel management, and better operational strategies (Heim et al., 2003; Institute of Medicine, 1990). Thus, the synergy can help in faster pace of success for the organization.
While you are with Jerry, could you also suggest new areas in which his business could be expanded? (2c)
At present the business of Jerry seems to be going well. His company is growing at a continuous pace, in spite of several flaws attached with it. The increased introduction of new hospitals in the country is raising competition in the Hospital market. Therefore, there comes the need to incorporate strategies at work place which are of maximum returns, else consolidated market might result too tough to stand for a small business. Therefore, Jerry needs to search for a good joint venture option to expand at a good pace. This would help Jerry have his organizations' size of increased power. The size of entity would therefore increase and would result in achieving economies of scale at certain instances (King, 2003). Therefore, it could be a good practice to incorporate economies of scale.
Additionally, Jerry can opt for some further business areas that can be explored. Starting of new operations such as those of pharmacy products can be a good choice. Jerry shall make available medicines and injections etc that are commonly used at his hospital. Therefore, the sales of these products would take place from his medical store, which can be opened outside his hospital area. Even patients would feel comfortable making purchase as they won't be required to travel from hospital to the medical stores located at distant locations. This would act in favour of the revenues of the hospital. Therefore, Jerry can expand his business through this approach.
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).
For any business to be successful, it is quite crucial to make clear objectives of the business. Unclear business goals and objectives can result in divergence of the approach to gain outcomes. Therefore, Jerry should have a clear point about the business statistics he has for growth and expansion.
Therefore, the aim of his business organization, named as Zenith healthcare should be to make efforts to help the patients get rid of various diseases. Health services demand the basic need to have strong relations with patients by providing them support in a thorough manner. Therefore, the approach can help the business grow by having stronger customer relationship management. There would be more control over business practices.
Thus, the business shall have the objectives in mind that are clear in terms of concept and plan. The operations of Jerry shall however include due focus to be laid on the service users. This should entail strong relationship building and making an effort to create brand of the organization in the competitive market. This would help the organization stand well in the competitive scenario (Pinson, 2008). Jerry shall leave his job to help the organization attain his aims and objectives, as the competitive market demands more and more efforts. Lack of efforts can however result in consolidation of business due to rapidly growing competitive market, else survival would become an issue for the organization.
Once you have agreed with Jerry those key areas which require attention, help him revise his business plans to incorporate appropriate changes (3b).
The business plan is important for the growth and survival. There comes the need to implement strategies for success. The organization should use the suggested strategy for business operations.
As the current market is growing rapidly on one hand, the consolidation is probable to come into existence at other instance, there comes the need to make use of the aggressive approach to cover a good share of market. Firstly, the organization shall have clear goals and objectives that need to be attained. This shall follow by a clear understanding of the market segment for the services (Abrams and Kleiner, 2003; Holm & Blanchard, 2007). Additionally, as stated before, the organization shall even expand its business operations by making use of the medical store to sell different medical products. This should follow by a thorough plan for marketing of services. Jerry needs to define clear strategic marketing. The use of brochures, advertising on magazines, newspapers, and various internet sources, search engine optimization, and web promotion can act in favour of the hospital for increased awareness among the target segment. There should be various marketing campaigns for the hospital and clear focus shall be laid to decide for the goals to be achieved for the regular intervals such as for the next 5 years or so.
Thereafter, based on the plan the marketing analysis shall be done. This should follow by thorough understanding of the sales forecasts for the business. This would help in formulation of strategies in the right manner. Therefore, the organization would be ready to face stiff competition with the passage of time. The staffing would also be maintained in the right manner along with the operating budget. These would overall help in generating financial projections. This marketing strategy would overall result in growth and success of the organization for long term and Jerry would gain from his business.
Accordingly, prepare action plans to implement changes (3c).
Aims and Objectives are the first stage of any action plan. The aim of Zenith Health care organization is to make an effort to help the patients get rid of various diseases. Health services have the basic need to build strong relations with patients by providing them support in a thorough manner. The approach is expected to help the business grow by having stronger customer relationship management. Through this strategy, there would be more control over business practices.
Suggested actions at this stage are to first of all valuate the offer at hand for acquisition of other organization, which is similar in size (George et al., 2009). This was the offer made by a venture capitalist in a cocktail party. Thereafter, if the proposal seems to add to the benefits of the organization, the deal should be made. This should then be followed by the search for joint venture with an organization from abroad, which is looking to expand here. This shall further help in promotion and brand building. Furthermore, the organization shall make efforts to promote more and more through various magazines, newspapers etc. This would help in creating awareness of the services provided by Zenith Health care, and would increase the chances of attracting more and more people, looking for health related services. Therefore, the strong marketing would help in establishing brand value in the market (James, 1995). This shall further be followed by proper evaluation of the suggested strategies so as to update them on a regular basis, based on the market and changing needs.
Help Jerry assess the possible impact of changes on the business and his management team (4a).
The suggested approaches would overall help the business of Jerry. This strategy would help the organization grow for long term. Thus, the suggestions are made based on the long term vision for the success. The employees working in the organization would be able to work in a better way. There would be proper flow of information in a hierarchical manner. The supervisor would handle the task of managing the whole staff. This would help in better operational management. The administrative activities too would flow in a professional manner. This would aid to the development and growth.
At present, the organization is though doing well, the competition is increasing at a rapid rate. Therefore, it becomes necessary to incorporate strategies at work place to ensure that the outcomes are attained favourably. The systematic action plan would therefore act as the backbone to carry out all the activities (Nayler, 2005). This action plan would help in going in a systematic and rapid manner to capture a good share of the market. The success of organization therefore seems to be a mandatory task which would be achieved easily.
Explain to Jerry how the implementation of changes should be managed (4b).
Change is the law of nature. This takes place on a regular basis and can result in overall success or failure of the proposed plan. Although a good strategic plan has been discussed in the above sections, the most important task is to convert the plan into action. Therefore, Jerry would need to firstly leave his job. Thereon, he would have time in managing the operations in a better manner. This shall be followed by the use of proper channel of communication. The organization shall allow its staff members to collaboratively communicate with each other to contribute to the efforts for organization.
On having an eye on the contribution of entrepreneurs of US, it can be noted that more than 50% of the revenues generated through business operations are made by the small businesses (Gates & Leuschner, 2009). Therefore businessman shall understand the importance associated with the strategy. This would help entail successful growth of the organization.
Additionally, the increased efforts put by the staff members shall be well managed with the help of controller, or manager. This person shall be held responsible of managing all the operational activities of business by making use of the staff. This would help in increasing the contribution of individuals towards organization's success. Thus, Jerry shall need to use evaluation technique to analyse the outcomes of the approach. This would result in overall success of organizational goals and objectives.
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)
To be successful and to earn more, there is the need to take risk. The greater the risk one takes, the greater are returns (Lam, 2003). Increased competition demands the need to take risks in an optimal manner. This is the differentiating factor between a successful and unsuccessful organization. Therefore, the present competitive market demands the use of new approach for success and growth.
Jerry is though worried of failure, but I would make him understand how the joint venture, for an example can act as a strong factor to keep the business at a safer end. There are reduced risks due to this strategy. Working with industry giants can help the business flourish at a rapid rate. These organizations act as the backbone for helping in tough times (Pinson, 2008). Jerry shall thus understand this point that the risks result in returns if the proper direction is followed for the business.
Additionally, the action plan can make a huge difference between success and failure. Therefore, the action plan would be used in such a manner that there are minimized risks and frequent evolutionary sessions would help in getting an idea prior to the problem situation about the state of business, and amendments if any, required in the business, can be made thoroughly to ensure the minimization of risks.
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