Managing the Development of Small Business Ventures

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Manage the development of small business ventures

Task 1

1.1 Assess the implications of inflation on Burger King’s business operations. a) Increase in Price: Due to the inflation BK has to increase the price of its food products. Due to increased price Burger King can put them into the problem by losing the customers or decreasing their profit.

b) High operation Cost: Due to inflation the price of the raw material could be high and it will result in increase cost of sale.

1) Eating the cost

2) Skimping on the product or

3) Risk losing customers by raising the price

None of these options are good ones but this is the consequence of operating in a country with an unemployment rate of 9.7 percent.

1.2 Assess the implications of interest rate on Sak Strandbag’s business operations.:

a) Less income for buyers:- Due to rise in interest rate the buyer will have less income to spend due to more money is going to interest to bank.

b) Decrease the sale:- Due to less moneyin the economypeople will spend money on their basic which will affect the sale of sak Strandbag

1.3 Assess the implications of unemployment on Max Hamburger Restaurants business operations if they were to set up in New Zealand. :

  1. Lack of money: If the Max Hamburger restaurant starts their business in New Zealand it will not be successful as there is lack of money to spend among people which can affect the business.
  2. Cheap Labour: Due to the rise in the unemployment rate there will be no money with the people. This will make people work on the cheaper rates and thus affect hugely on employees pay rates.

1.4 Assess the implications of investment spending on the business operations of Salvador’s Kiwi Food and Beverage Co.

Through the investment of $100000 the business has grown for a small speciality coffee bar/restaurant to a thriving business supporting 13 employees and a second outlet. The concentration on quality service and staff welfare has generated a second business with potential to expand further and give quarter returns to the four original investors.

1.5 Assess the implications of business confidence on the business operations of Glossy Pink.

  1. Increase in business: -Business confidence increase will increase the investment which will help to increase in the business
  2. Increase in jobs: - Due to the increase in business pink will need more people which will increase the jobs in the market.

1.6 Assess the possible implications of share market fluctuation on business

operations of JVR.

Stock market fluctuations are when a company's stock price changes in the market. On one hand, a company's stock price has no direct effect on a company, unless the company wants to raise more money by selling stock into the market. In that case, the current stock price determines how much money they will be able to raise when they sell shares into the market. Once the shares are sold into the market, however, the company is no longer affected directly by the share price.

1.7 Assess the implications of the following economic indicators to the business operations of Wing Zone: 1) Credit Availability: Lack of credit history may affect applications for capital investment expansions however a strong presentation highlighting the company’s rapid growth and success to date should go some way to offsetting that negative factor.

2. Gross Domestic Product (GDP): The gross domestic product (GDP) is one the primary indicators used to gauge the health of a country's economy. It represents the total dollar value of all goods and services produced over a specific time period - you can think of it as the size of the economy. New Zealand population growing so Manufacture of Pizza will also grow the demand of the Pizza of grow.

3. National Income: The decrease in the national income means that the market is still growing but not to that extent. Wing Zone has to make a plan to come back strongly in the market. If Wing Zone comes up with a new strategy to overcome the loss in the business they can make a comeback in the market.

4. Money supply: Reserve bank restrictions on many supply may restrict on money supply may restrict or slow down the availability of funds for business expansion.

5. International Trade: To grow on international level it is important to have all the basic information regarding the foreign market. To grow globally Wing Zone has to consider strategies made by McDonalds and the Burger king. They need to have details regarding competitors and demand of the people.

6. International Market Fluctuation: International market fluctuation effect the stock market. They also affect a small business.

7. Fluctuation Currency- Fluctuation risk on the foreign Exchange their price will low and high they most effect on the small business. The small businesses set up their price for product according to nation’s currency but when it fluctuates it creates problem for small business operators.

8. Balance of Payment: Balance of payments accounts are an accounting record of all monetary transactions between a country and the rest of the world. These transactions include payments for the country's exports and imports of goods, services, financial capital, and financial transfers

Task 2

2.1 Disposable Income: Disposable income is total personal income minus personal current taxes. In national accounts definitions, personal income, minus personal current taxes equals disposable personal income. They started a small business it is very hard to save amount because they need a best employers to work and best product goes to market and they also need a promotion like advertisement on TV, Newspaper, Magazines, Etc.

2.2 Population Trends: In population Trend How many people drink a beer and how many people drink a wine in their life. Youth Generation not drink a wine 18-24 aged represent only 6% of wine consumed. But there is different choice in the market to buy a wine and beers choice available.

2.3 Building Permits: Building permit is a permit required in most jurisdictions for new construction, or adding on to pre-existing structures, and in some cases for major renovations. Generally, the new construction must be inspected during construction and after completion to ensure compliance with national, regional, and local building codes. Failure to obtain a permit can result in significant fines and penalties, and even demolition of unauthorized construction if it cannot be made to meet code.

2.4 Business/Industry Surveys- According to the survey most people like to drink wine by type of variety and brand. 37% of wine drinkers they often ask to retailers for a recommendation on wine.

Task 3

3.1 What are the implications of whanau, hapu and iwi to the small business operations of Bio farm Productions Ltd?

Bio farm Products is a company regards their business as being Maori. In business all member of business is not Maori. Some People have different country and different culture. But Maori give them an immense of pride, which turns give them harmony and peace to the business. Because family decide how is employ and all other decision taken by they belong to Whanau.

Task 4

Small Business Life Cycle

Characteristic of the Business Activity During this cycle

Description of related Business Activity Under Taken During the Cycle

Management Strategies

Short and long range plan

Start up

In this cycle we conceptualizing the business, Planning, market testing etc.

Information gathering, creative thinking, identified the target market.

Define the business and vision: Write the goals like short term and long term, completion.

During the start up the business just focusing on customers and product.

Growth

Sale are growing up, Product is growing in popularity, regular customer and increasing income.

Business improvement, retaining and recruiting talent

Creating customer focused strategies.

At this stage we set two goal short term goal and long term goal.

Maturity

Operation smoothly with minimal supervision

Review the plans and watch out for new ideas to expand the business

Review your mission/vision regarding the business.

At this stage we consider completion and achieving our goals which we set up in start up stage.

Saturation

At this stage this business is running smooth and giving good outcome.

Needs to watch out for the new plans to keep the business running without have enough from business or can have a break from the business to freshen yourself up.

Try to increase the earning of the organisation and challenge yourself.

Short time to getting yourself out of point of estuations, Long term plans are to plan ahead to brighten the future up.

Decline

Sales are falling, losing market share and fewer employees leaving the company.

See ways to revive the business, seeking for help.

Visualize a plan venturing out or merging into another famous brand

We try to recover our weakness and try to stay in the business and make others goals.

Task 5

5.1 Formulate at least two (2) different problem solving techniques or approaches you could use to identify and define a business problem when it occurs and to generate and then evaluate various solutions to business problems.

Internal Evaluation: Can have the meeting with the staff to find out the reason of the problem, give them the instructions to follow and perform the work in the correct way.

External Evaluation: Have to identify the reason of sales which are going down at that stage and need to look for on the market position, Can take a professional assistance to find the reason of the problem and can take advice from professional finance advisor to find out the reason.

5.2 Identify how the following decision-making techniques could help in making a decision about which options to choose to solve the problem.

5.2.1 Break-even: The break-even is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even". A profit or a loss has not been made, although opportunity costs have been "paid", and capital has received the risk-adjusted, expected

5.2.2 Decision tree: - A decision tree is a decision support tool that uses a tree-like graph or model of decisions and their possible consequences, including chance event outcomes, resource costs, and utility. It is one way to display an algorithm.

5.2.3 Pay off approach:In the payoff approach technique we use cash flow scenarios to model the future. That data can be used which is already available in the company.

5.2.4 Professional assistance: Professional assistance is the help from a qualified professional who is not a member of the business group, he is an expert to provide professional assistance for the business where is required.

5.2.5 Group decision-making: Conduct a meeting with all member of organization. Solve the problem on this meeting. Every member names and priority issues and ranks it’s according to the work.

5.2.6 Cultural consensus methods: Cultural knowledge is shared and systematically distributed. A good decision is one which has taken into the different culture of all the member of the group.

5.3 MAORI

Cultural consensus method: -In this method we can share their knowledge. A good decision is one which has taken into the different culture of all the member of the group.

Group decision making: - They conduct a meeting with all member of organization. Solve the problem on this meeting. Every member names and priority issues and ranks it’s according to the work.

5.4.2 Out-of-control growth A successful business is ruined by over-expansion. This would include moving into markets that are not as profitable, experiencing growing pains that damage the business, or borrowing too much money in an attempt to keep growth at a particular rate.

5.4.3 Operational inefficiencies: Paying too much rent, labour, and materials. Not having the tenacity or stomach to negotiate terms that are reflective of today's economy may leave a company uncompetitive.

5.4.4 Dysfunctional management: Lack of focus, vision, planning, standards and everything that goes in good management. Throw fighting partners or unhappy relatives into the mix, and the business is a disaster.

5.5 A declining market: The annual industry revenues are steadily declining because of the saturation of the market, the decrease in the market size, or the due to the introduction of a service, product or a technology from huge companies with more buying power and advertising dollars.

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