The Effect Of The Economic Recession On Small And Medium Companies Business Essay


Since the establishment of Salfordia in 1975, the company has continued to enjoy growth which has increased the capability of the company greatly. However, that growth has been affected by the emergence of the economic recession which not only hits small medium size companies such as Salfordia in the whole country, as it also affects large and small medium size companies worldwide. Therefore, amidst this economic recession Salfordia has not been an exception, as most of their market clients either private or public sectors are finding it difficult to either have access to or buy out exactly the developed properties. This scenario has urged the need for the company to moderate the consequence of the present economic climate and also to get on market relocation.

In order to neutralize the effect of this adverse market environment, Salfordia has decided through its management board to acquire a 5 years plan which meets annual target. It is hoped that the acquirement of such plan could situate Salfordia in a good stead to preserve and augment its profit margin even thought this hard economic period does not help.

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However, integrating this 5 years plan in Salfordia would not be an easy task due to its current philosophy, organizational structure and socio cultural behavior, i.e. family business nature, and also giving contemplation to the present economic climate. As a result it is in view of this that the management has commissioned this report to analyze the critical potential issues that may result from the achievement of this strategic plan.

1.1 The critical, strategic analysis

During decision making process, before propose any recommendation it is essential to analyze the scenario in order to gain the required acknowledge, therefore this section deals with the investigation on the micro-environment which consists of broad environmental factors that could impact to a greater or lesser extent on Salfordia.

In order to improve market share, and be profitable, survive! It is vital to explore the Salfordia environment, as this is what gives organisations their means of survival. Being Salfordia a company which focus their business in both commercial and industrial building in an equal workload levels, the first priority for them, as stated in its mission is to keep their customer satisfied by ensuring client's expectations are met. This is mainly based on achieving quality, budget and service; therefore clients are the most significant people for any businesses, as they are the resource upon which the success of the business depends. Research reveals, that it costs five times as much to attract new clients as it does to keep an existing one.

The relationship between the client and the organisation is crucial, keeping clients pleased Salfordia would gain their expectation which is the key factor to make the company always profitable and the client's first choice.

Thus, in order to achieve clients' expectation it is practical to bear in mind the following points:

Repeat business is the spine of selling as it helps to contribute revenue and decisiveness for the business.

Companies are dependent upon their clients. Without developing client fidelity and contentment, could direct business lose their clients

The company would not exist without customers.

The company function should be to fulfil the needs of the customers.

Nevertheless, it is difficult to meet client's expectations as environmental changes are part of life and Salfordia is not exempted of such fatal changes i.e. source of threats. Example, hostiles shifts in market demand, new regulatory requirements, revolutionary technologies or the entry of new competitors.

1.2 PESTEL Analysis

As a result, this section focus on the application of PESTEL analysis, as this helps to indentify how of the different aspects such as the political, economic, social, technological and legal environments might impinge on Salfordia Company (Gerry et al., 2008). In addition, it also enables Salfordia to develop more informed strategies (i.e. long term plans), as it identifies key drivers of change; which could be used to construct scenarios of possible futures.

As mentioned previously, the company had an incessant decline from (2007 to 2009) the fact is that even though Britain officially entered recession on 23 January 2008 (, they still had made an average profit of £233,000. However, in the current year Salfordia has had a substantial loss of -£75,000 which is assumed to be linked with diverse factors such as political, economic, social, technological, environmental and legal.

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Having England officially entered in recession, which is normally accompanied by inflation, the effects of it can ruin many Businesses including Salfordia, as this means that their expenses could raise quite a bit, even as their income is under pressure. The inflation is a chain that affects both sides i.e. companies and clients. While recession takes a choke hold on the economy, it is more likely that there are fewer new clients walking through the doors of Salfordia and the existing clients may shut their wallets tightly as they also try to control their rising expenses. Consequently, it is vital to think up ways to increase the sales as well as the profits, as the resulting loss of income and decline in profits could be detrimental to Salfordia and could ruin it.

It is appropriate to emphasize that companies profit are also linked with many external factors as it could be seen previously, Therefore, the global credit crunch does not only affect companies as it also is interrelated with Politics. As Gerry et al., (2008) mentioned these key drivers are of course interconnected: high political instability and low economic growth are likely to go together. As a result below an investigation will be conducted in order to comprehend the various reasons that may have affected the good performance of Salfordia.

A couple of months ago, England had elections which led the country to change its government. A report from the insurance service network, (2009) affirms that the global credit crunch starts to have an impact on the political stability, i.e. shifting from being an economic problem to a political problem. Furthermore, suggests that when an economy is in downturn, the government has less resource available to deal with issues when they arise, potentially leading to political instability.

Yet, this statement confirms that is more likely that England was another victim of the recession which led the country changes its politics i.e. government change. As a result, the new government Politics (funding and policies) and legislative change (new requirements) in a way arouse uneasiness on the clients and the market itself, affecting in special small medium size companies such as Salfordia in the construction industry suffering disproportionately as a result of the recession, as it is clearly demonstrated that during the economical and political stability the company has been making profit i.e. surviving.

1.3 Social

It is important to understanding social influence in organisation, as it can help Salfordia in this case to appreciate what motivates their clients. By achieving that understanding, Salfordia could develop strategies to target influencers, develop relationships, and leverage their social influence in different situations (Ellwood, 2010). In this case the social influence in Salfordia is closely linked to its organisational structure which is described by Covin and Slevin (1990, cited in Altinay & Altinay, 2004) as the arrangement of workflow, communication, and authority relationships within an organization".

The social influence in organization as stated previously is linked to the organisational culture. Salfordia as a family nature business has its own culture. Schein,(2004) explains that culture is an integral part of human society although quite abstract, it wields a very high influence on individuals and as a group. From this fact it can be seen why culture is principally ingrained in the heart of people making it very hard to change, Moreover irrespective of the size, age and complexity of an organisation, it tends to exhibit its own restricted way of process which differentiates it from every other organisation.

Innovation and entrepreneurship are fundamental drivers in today's economy, as this involves the conversion of new knowledge into a new product, process or service and the putting of this new product, process or service into use, either via the marketplace or by other processes of delivery. Although Salfordia has in the past 3 years up-graded its In-house IT systems (mostly financial) based upon commercial software / hardware. The fact is that innovation is a key aspect of business-level strategy for Salfordia since it is implicated with quality, price and sustainability (Gerry et al. 2008). This fact requires Salfordia being an innovative organisation as Gerry et al. (2008) explains that working in private sector, innovation becomes often a condition of simple survival as this market is increasingly competitive. Furthermore, he emphasizes that the public sector also needs innovation due to ceaseless cost pressures and increasing public demands which are compelling constant innovation and even new kinds of entrepreneurship.

1.4 SWOT analysis

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Having applied the PESTEL analysis, it is also import to employ the SWOT analysis as this method is an extremely useful tool for understanding and decision-making for all sorts of situations in business and organisations. Gerry et al. (2008) counter that the aim of SWOT analysis is to identify the extent to which strengths and weaknesses are relevant to, or capable of dealing with, the changes taking place in the business environment. Nevertheless, the SWOT analysis headings offer an excellent framework for reviewing strategy, position and direction of a company or business proposition.

1.5 Analysis of the Organization Structure and Culture

Salfordia is one small medium-sized construction management / contracting organisation based in Salford. The company started trading in 1975 and does not employ direct labour, i.e. all work is carried out by sub-contractors whom have been working for Salfordia for several years on multiple projects.The company is of Family nature business (i.e. a conservative nature / culture) and has been obtaining 100% of its projects in the North West region; all through 'traditional' procurement route. However, they had a substantial loss of -£ 75,000. Salfordia covers a wide range of construction projects both private and public sector clients, such as offices and industrial facilities.

Salfordia being a family nature business has advantages and disadvantages. At the moment Salfordia is in its 3rd generation and according to reserchs it could means that Salfordia is experimenting one of those follow cases, example lack of creating a plan or the reduce number of family nature business survivors, as only between 5 to 15 percent continue into the hands of third generation or descendents of the founder(s).

Yet, the implementation of the SWOT analysis would provide to this research more precise information in order to review the strategy, position and direction of Salforia proposition. Moreover, the SWOT analysis carries out an investigation in the existing structure of the Company, which will allow finding remedy to the causes of poor company's performance.

1.6 Strengths

Since its humble beginning in the UK construction industry, Salfordia has now acquired a 35 years old history as a family business. This becomes one of Salfordia's key strengths, as its experience can meet client's expectation. In any business the experience is something very coveted, and having 35 years in the market gives reputation to the company. Entering the heavy construction industry is complicated for new companies; as a result, the long standing name that Salfordia has developed is one of its primary strengths. This reputation in both private and public projects, commercial and industrial building encourages trust to clients to invest their money. This major achievement can have a profound effect on the capital base of the company.

Communication within organization is vital, in relation with speed, Salfordia is also faster than others, as communication in family business environment is much easier and as a result, decision making can be taking quicker due the family being a natural team. Time in construction is essential therefore, fast decision are time saving i.e. speed is everything.

However, the fact that family business is a natural team, this can make solidarity considered as trick one, as it is necessary to find equilibrium. No company is exempt of fight which means family business also have fights, but the advantage of it is that when the goal is to help the family business win, turf battles diminish.

It is common in family business to have a clan culture which is synonymous of family culture usually typified with a vastly friendly atmosphere of operation in the company. The organization operations are running like an extension of the family. This culture type offers the advantage of getting absolute contribution from every member of the organization as a friendly environment helps to ease potential communication barriers. The employees in this type of organizations also see themselves as members of the same clan which makes issue negotiation a lot easier.

Nature plus nurture, growing up in a family atmosphere makes people absorb the skills that needs in order to succeed i.e. gives awareness of the life that the relatives lead. In addition, it makes people more familiar with the trials and tribulations, and what it took them to make a living for their descendents.

Another asset that family nature business has is its authenticity, this allows member of family to work in a friendly environment and in addition, to have the ability to be fearlessly and emotionally honest which in a way can help a family business thrive.

As mentioned previously, trust is essential in all business. Being Salfordia a family business there is a very high level of trust among family members, so it enables people to talk to each other very freely and openly. Finally regarding to work, in family business it is more likely that family members work twice as hard as other employees.

However, construction sector is undergoing for difficult time due to the lack of available projects, which means that every company has to work that bit harder to attract the lucrative contracts. Most large contracts are offered either by the government or by multinational companies which require that certain criteria are met. Failure to meet these criteria can result in the loss of a contract, even if the company is seemingly the best for the role.

The above fragments have assumed some of the strengths that Salfordia has obtained throughout the years and also due to its organization structure, however, this analysis is needed to be taken in order to address the 5 years strategic plan. As anything in life family business have advantages as it could be seen previously and also disadvantages, which are explored below.

1.7 Weaknesses

The major weaknesses or disadvantage that can affect the organisational structure of Salfordia is the high propensity not to deliver as at when due, the extremely friendly environment creates an enabling platform for laxity in the workplace.

In term of complexity, family nature businesses are normally more complex in terms of governance than their counterparts due to the accumulation of a new variable: the family. Adding the family emotions and issues to the business increases the complexity of issues that these businesses have to deal with. Unlike in other types of businesses, family members play different roles within their business, example; In Salfordia the family members already hold specific roles: CEO; CFO; Contracts Director; Business Planning Director; Industrial Build Director. This fact can sometimes lead to a non-alignment of incentives among all family members.

The informality can also lead to much inefficiency and internal conflicts that could threaten the continuity of the business, as most families run their businesses themselves (at least during the first and second generations), there is usually very modest interest in setting clearly articulated business practices and procedures. Another fact that is also connected with informality is the lack of discipline. Research reveals that many family businesses do not pay sufficient attention to key strategic areas such as: CEO and other key management positions' succession planning, family member employment in the company, and attracting and retaining skilled outside managers. Delaying or ignoring such important strategic decisions could lead to Salfordia failure as a business (Indalecio, 2010).

1.8 Opportunities

The application of PESTEL analysis, as helped to indentify how the political, economic, social, technological, environmental and legal environments might impinged on Salfordia. Therefore, through its implementation it was identified key drivers of change; which is going to be used to develop more informed strategies (i.e. long term plans) and constructing scenarios of possible futures.

As mentioned prior a couple of months ago, England had elections which led the country to change its government. Such change has brought new regulations that are favorable to companies such salfordia. According to Business Innovation and Skills BIS (November 2010), this Government is committed to a comprehensive effort to prioritise small businesses and those that run or aspire to run them. This decisive plan is required, as it will reduce the deficit and to restore confidence in the UK economy. The reason of that, it is because small and medium sized companies such as Salfordia are vital to economic growth, as they are the heart of the economy, providing 60 per cent of jobs and half of GDP.

As a result, Minister Mark Prisk hosted a Summit for Small Business and set out a cross government package of measures to help the five million small and medium companies in this country grow and boost enterprise across Britain (National News, 2010).

Consequently, Salfordia being part of the five million small and medium companies in UK will be benefited from the already government plan action implemented as described below:

committed to reduce small profits rate of corporation tax to 20% (from April 2011)

helped new businesses grow in areas most needing an enterprise boost, through the introduction of an employer National Insurance Contributions holiday for new businesses in target regions

asked the Office of Tax Simplification to recommend how small business tax can be simplified

introduced a one year temporary increase in the level of small business rate relief (from October 2010)

pledged that regulation will be the last resort not the first; and where the case for regulation has been made, any that deem SMEs to be in scope must have a compelling case for their inclusion

Moreover, other further actions that ministers from Department for Business, Cabinet Office, Treasury and Communities and Local Government have announced in order to support small businesses are:

Improving access to finance

Opening up government procurement and ensuring prompt payment

Making sure our competition framework helps new companies access existing markets

Providing targeted support to those that have high-growth potential

Ensuring that Government is deliberately reoriented towards their needs (BIS, 2010).

1.9 Threats

Threats are part of our life, so special attention needs to be given on family nature business as they are not exempted of threats. Example: Family feuding, letting emotions run the Business, Nepotism and no succession plan.

Family businesses as well as any other organisation are faced with internal conflict which usually arises from the incapability to divide business and personal lives. Being Salfordia a family business is more likely that could face this sort of problem. Occasionally the feuding is due to the varied interests of each family member, personal egos or personal rivalries that spill into the business environment. This is a negative fact for any family business as they not share common goals, therefore it is important to eradicate such sort of behaviour.

However, another common threat in family business is when business is running by emotions. This aspects could be perfectly facing Salfordia, as separate emotions from the business are not an easy task; being four out of six from the same family becomes a complicated situation as it is difficult to receive critical feedback from families. Therefore, a balance is required in order to control emotions. On one hand, if emotions interfere with the business, it can make the organisation appear weak to clients, and severely affect the ability to make sound business decisions. On the other hand, if people in charge are insensitive, it may appear cold and unfriendly. Yet, lack of sensitivity with family employees can also cause problems at home if people in charge are not careful. Therefore, it is required to determine the right balance of emotion needed based on the dynamics of your business environment.

To conclude one of the reasons that many family business fails are due to the lack of no succession Plan. For instance if someone retires, leaves, or perhaps passes away it is vital to have a plan, otherwise the business fails (Indalecio, 2010).

2. The proposal

This section consists on the elaboration of a proposal for how Salfordia's organisation and culture could be changed, by identifying key strategies and drivers to enable it to become a more efficient, effective and collaborative organisation. Therefore, the follow fragments address important issues to do with the structuring of organizations and the resourcing of strategies, both important in effecting strategic change.

However, Gerry et al. (2008) counter that designing a structure and putting in place appropriate resources do not ensure that people will make a strategy happen as manager's report indicates that major problem with managing change the tendency of organizations are towards inertia and resistance to change because people tend to hold on to existing ways of doing things. Nevertheless, Cameron and Green, (2004) argue that changes occur in an organization as no organization is static. Those changes are influenced by factors either internal or external.

So in order to change the organization and culture, it is required to adjust its current management. The change management is fundamental in a decline organisation such as Salfordia, as this is the process which continually would renew the organisation's direction, structure and capabilities in order to serve the ever-changing needs of external and internal customers (Moran and Brightman, 2001).

On the other hand, Al-Mashari and Zairi (1999) disputed that change management does not only deal with the renewing of organizations direction as it also involves the introduction of newly-designed processes and structures into existing practice through techniques that impact changes on human and socio-cultural issues. These factors described above highlighted the significance of the people component in making changes. This confirms that a successful change management is a function of the ability to manage people through the introduced changes. However, Burnes (1991) explained that such changes should be taken gradually as "fast changes, rather than sustaining the organization, can lead to a disintegration of the common goals and ways of working which have previously existed" in the organization. In addition, Buch and Wetzel (2001) concluded that most processes designed to change organisational culture are said to take 10 years or longer.

In this particular case, it is clear demonstrated that Salfordia needs a radical change within the organization in order for them to react to the survival threat that it encounters in its business environment. Yet, these changes could either be facilitated or impeded by the existing culture. This demonstrates the cause why determined effort has been focussed towards managing changes in an organization (Lewin, 1951; Bullock and Batten, 1985; Kotter, 1996 cited in Cameron and Green, 2004)

Due to the organization facing immediate decline in turnover or profits, a big bang approach to change might be needed on this occasion, as Salfordia faces crisis or needs to change direction fast. However, in terms of how Salfordia's organisation and culture could be changed, the key strategies and drivers to enable it should combine these two types of strategic change:

On one hand, revolution is a strategic that would require rapid and major strategic change and also culture change. Usually this is applied in circumstances where the strategy has been so bounded by the existing culture that, even when environmental or competitive pressures might require fundamental change, the organization has failed to respond. This might have occurred over many years and resulted in circumstances where pressures for change are extreme-for example, a takeover threatens the continued existence of a firm.

On the other hand, evolution is another approach appropriate to apply to Salfordia as this strategy requires also culture change, but over time. Since the company has pointed a Business Development Manager, this anticipates the need for transformational change. The organisation may then be in a position of planned evolutionary change, with time in which to achieve it (Gerry et al., 2008).

2.1 Change Management Process

Establishing a Sense of Urgency is a key factor in the change management process in an organization, as Kotter (2002) counter the first key to successful execution of change in an organization is to certify that sufficient people act with adequate urgency to generate a prolonged seismic surge towards the identification of the need to make changes. Moreover, Hayes (2007) states that this is needed as culture and organization structures are occasionally unexpected which makes them ingrained in an organization's activities, making it complicated to see the need to change particularly when such ways have yielded success.

When establishing the sense of urgency, the staff of Salfordia must be prepared to recognize the need for change. The capability to impress this need on the staff would dictate the rate of sense of urgency created. This would be the core driving the people through the following stages of change process. In order to achieve that Kotter (2002) suggested mediums which impacts on both the intellects and emotional feelings of the employees to stir up the sense of urgency. Therefore, the following methods could be adopted to establish a sense of urgency in the change management process of Salfordia.

Create an awareness of the company's vision of the synergy to be created through the acquisition process.

Create an awareness of the new culture and structure and how it will help to sustain the proposed strategy of the company.

Stress the dependence of the company on the effort of every staff of Salfordia towards achieving this goal.

The process of change management starts with the elaboration of change management portfolio which oversees the evolution from the present condition to the intentional condition. The points encountered in the first stage can be communicated through a well organized integration workshop. The adoption of multimedia helps to encourage facts and works best on emotions, as they are not easily forgotten.

After establishing a Sense of Urgency the next step is creating guiding coalition. This step becomes vital in the comprehension of the integration process as it rapidly capitalizes on the outcome of the first step.

In order to achieve the course of the change, it would be required to form teams comprising of highly motivated members, because this would serve as model to others in the company of what the organization want them to be. However, the composition of the team must be such that the roles ordinary of a team are sufficiently covered and in the right proportion.

According to Belbin (1993) nine main roles are essential in a team and the criteria for satisfying the role. In addition he identified the coordinator and shaper role as a significant role as the role player drives other members of the team. These role players facilitate to connect the synergy of the team member and give the team direction towards achieving its goals.

2.3 Strategic leadership

The leadership role in the guiding team is very important as a leader gives motivates, coordinates and gives direction to other members of the formed team. The leader in the Salfordia organization must be appointed based on clear vision of the company's direction and ability to influence the members of the team. According to Gerry et al., (2008) leader is not necessarily someone at the top, but rather someone who is in a position to have influence in their organisation. For this scenario as the brief states the role of leader could be undertaken by one of the family board members who has recently completed a Masters degree in Business Administration and is pushing for Salfordia to conduct a review of its business strategies. This action is described by Gerry et al., (2008) as charismatic leaders, who are mainly concerned with building a vision for the organization and energizing people to achieve it. Furthermore, he states that in current situation of Salfordia, these leaders have particularly beneficial impact on performance when the people who work for them see the organization facing uncertainty.

2.4 Developing a Vision and Strategy

A strategy to conduct the course of the company is essential particularly in a post merger condition. Vision may become impractical if there are no resources presented to implement them. The guiding teams assist to divulge the faculty of the firm by tapping into the tacit awareness of the members. The progress and success of the guiding team build trust and commitment on the staff of Salfordia.

2.5 Communicating the Change Vision

When companies are going through organizational changes, communication becomes a vital factor to address as it has a close tie with the company's success. The reason of it is because communication is an integral part of human society as it helps in developing and understanding people's culture.

According to Burnes (1991) poor communications is one of the factors why organizations have not been able to implement changes successfully. Since communication in an organization is frequently in a top-down direction, it is important to stress the need for the leaders and top managers to be excellent communicators. Moreover, emphasizing the connection between leadership and communication, Marbin (2001) assured that "communication and strong leadership play a fundamental part in preparing any organisation for change and in guiding the organization through the upheavals that result from changes made".

However, Smith (2003) argued that "breakdown in leadership, in communication with employees and project management failures" has the strongest association with failure. As a result, a leader who has the facility to spread the vision of the organizational is needed to execute a successful change.

In order to achieve that Dunphy and Stace (1990, p. 154 cited in Abraham et. al 1999, p.113) counter that such leaders "create a new powerful and compelling vision for the future, demonstrate personal commitment to the vision, communicate the vision through a variety of strategies and implement it by building an effective top team, reorganizing and building a new culture". Furthermore, Bechtel and Squires (2001) suggested that "all disseminated communication should address three components - the strategic (what and why we are implementing the change) the tactical (how are we implementing the change) and the personal (what is in it for me)". This gives an idea of what the component of communication may be in an organization undergoing change.

2.6 Collaborative contractual arrangement (partnering Route)

Since the establishment of Salfordia the company has been using the traditional procurement, as a procurement system. The traditional system as any other procurement provides advantages and disadvantages. However, in the midst of the global credit crunch, it is required to stress on the risk that this procurement route is presenting to Salfordia. Such risks are:

The overall programme may be longer due to the need to produce a fully detailed design before the project goes out to competitive tender and work starts on site

The Client must have the resources and access to the expertise necessary to administer the contracts of consultants and the main contactor

The consecutive timing of design and construction results in a lack of continuity between the designer and the builder (and hence less input on 'buildability)

Claims for delay and disruption can arise if the design is not fully detailed prior to agreeing the contract sum or if the Client varies the design afterwards

Yet, in order to successful implement the Change Management Process to Salfordia, it is recommended to explore alternatives procurement.

By analysing the current culture of the organisation and the market itself it is advised that Salfordia should embrace the implementation of Partnering route. The reason of that is due to the Partnering route being a collaborative approach which benefits all parties involved, as it focuses on the needs of the customer. In addition, this system would improve performance through collaborative business relationships based on best value rather than lowest cost. This management approach is usually used by two or more organisations to achieve specific business objectives by maximising the effectiveness of each participant's resources. However, it requires that Salfordia and the other parties work together in an open and trusting relationship based on mutual objectives, an agreed method of problem resolution and an active search for continuous measurable improvements.

Nevertheless, in order to make this change possible it is required considerable effort to set up and hard work to maintain it. Therefore, before embarking on the search for partners, Salfordia need to understand their own readiness for the journey including:

Have we determined what we want to partner and why?

Is our management structure appropriate and Do we have the right skills?

Have we recognised our cultural attitude?

Are we communicating our intentions and listening to the concerns of our people?

Is the organisation sufficiently flexible and prepared to respond to change?

By answer these questions the benefits that the Partnering procurement could offer to Salfordia organization are:

Increased customer satisfaction

Better value for the client

Recognition and protection of profit margin for contractors and suppliers

Staff development and satisfaction

Creation of an environment that encourages innovation and technical development

Better understanding between partners and driving down of real costs

Design integration with specialists in the supply chain

Improved 'buildability' through early involvement of the contractors

Duplication eliminated

Better predictability of time and cost

Shorter overall delivery period

Stability which provides more confidence for better planning and investment in staff and resources

Staff training

Staff training development is an indispensable preliminary strategy to steer clear of problems through proactive planning. However, implementing successful behavioral interventions require that all those involved in the intervention are thoroughly knowledgeable about and competent in the use of specific intervention techniques.


Advertising plays an important role in the 5 years strategy plan for Salfordia as this is the most important tool in the marketing of products and services. The expenses on advertising are considered to be a profitable investment that reaps profits both in the long and short run. Businesses that keep on advertising regardless of rise or fall in the economic times get a reasonable advantage over those that cut their ad budgets. Advertising offers many benefits:

Information to the customer

Improves the sale of product

Alters the attitudes of people

Direct communication

Increase employment

Economic progress

3. Conclusion

Change is an important aspect in an organization life. The change management activity is an integral part of the change strategic plan for Salfordia. This task becomes more demanding based on the socio cultural differences of the organizations. The fact that each organisation has its own culture, it affects their organizational structure. Therefore, the importance to have a leadership who plays a vital role in an organisation, as he o her can influence their staff in order to improve the good performance of organisations. With the creation of mutual trust, communication, and technology innovation, it is expected that the goal behind the strategic plan for Salfordia will be achieved.