This report has been written by Sara consultants for the Interested stakeholders of Lacuna and Philip businesses. It will cover the skills in management relating to adaptability, flexibility, strategic thinking and communication within a business.
We Will Write a Custom Essay Specifically
For You For Only $13.90/page!
It will also discuss managing change within a business through firstly establishing the need for change, setting business goals, resistance to change and management consultants. Lastly this report will cover reasons for business success and failure through discussing critical issues such as; a business play, management and economic conditions. It is recommended that: The business should have arrange of management skills within the business Adaptability. Legibility and strategic thinking are skills that a being used throughout the business The business should have efficient and effective strategies in managing change The business should establish the need for change, set business goals and examine reasons for resistance of change The business should consider ways in which the business can succeed and fall Examine aspects within the business such as having a business plan, management -including staffing and teams and the economic conditions BODY Skills In Management Adaptability and Flexibility to change Business should have the ability to adapt to changing circumstances and be flexible within the business.
Successful managers are those who anticipate and adjust to changing circumstances. They must be flexible, adaptable and proactive rather than reactive. Managers who are unprepared or passive in the face of change will not succeed. Having the ability to quickly and efficiently adapt to changing circumstances within the business Is a vital skill for management. Also being flexible with the business. Thus, it is essential that Philip and Lacuna have management skills such as adaptability and flexibility within their business to over come any circumstances they may face. Strategic thinking Business managers require arrange of skills to operate their business effectively.
Strategic thinking allows a manager to see the business as a whole. The ability to think strategically lets the manager see the ‘big picture’. The manager may then see the business in context of events and trends, and identify opportunities or threats and gain insights into an uncertain future. Therefore, Lacuna and Philip should 1 OFF stricture of their business and where it is going as a whole. Communication Effective communication within a business allows managers in getting their employees to understand and want to achieve the business’s goals. Without communication business can have unmotivated, confused employees in turn decreasing the levels of profit.
Whether communicating with employees within the business or customers in the marketplace, effective communication is essential for the long-term survival of the business. Thus, Lacuna and Philip should consider arrange of communication aspects that they can improve on within their business such as; Well-written letters, an inviting telephone manner, pleasant conversation, concise emails, and friendly smiles and gestures that reinforce carefully planned business strategies and client networking. Managing Change Identifying the need for change An effective manager should always be scanning the environment, attempting to understand factors that will have an impact on the business. In this way, he or she may better identify current trends and predict future changes.
It is important that all managers scan the business environment to take in to account any changes that may eave an impact, on the levels of business activity. If a manger is able to correctly anticipate these changes this will result in higher levels of business success. The business will fall behind if it does not identify the need for change. Therefore, not monitoring changes in the external business environment by identifying the need for change will result in decreased levels of profit. It is recommended that Lacuna and Philip continually examine the need for change within the business in order to succeed. Setting business goals A vision statement states the purpose of the business. It indicates what the firm does, and states its key goals.
As well as the vision statement, a business should establish specific company goals that are measurable. For change to be managed effectively it is essential that any new goals be achievable. This means goals that are attainable and realistic. Unachievable goals will only cause cynicism among employees and damage relationships between employees and supervisors. It is recommended that Philip and Lacuna set achievable business goals for their business to give them direction in where the business is at and where they want it to be. This will result in higher business success and higher levels of activity. Management Consultants A management consultant is someone who has specialized knowledge and skills within an area of business.
They specialize in a diverse range of business-related areas, including risk management, brand protection, business set-up, executive recruitment and sustainability. It gives the business an external viewpoint and access to the latest research. The main role of management consultants is to help and developing plans for improvement. Consultants can be especially helpful in roving advice: a methodical approach to dealing with change, both from the perspective of a business and on the individual level. It is recommended that Philip and Lacuna hire a business consultant to help them with managing change within their business and identify what aspects of the business need change.
Business Success and Failure Importance off business plan A business plan is the ‘road map’s future growth and development within a business and sets out the desired goals and direction of the business. It is a summary and an evaluation of a business idea in written form. It is one of the most useful management tools a business owner can use. In all businesses, the best results come from effective management and detailed planning. A comprehensive business plan will assist when arranging finance for the business. The plan provides information that lenders need to know and it also shows that the business is being properly organized and managed. Therefore a comprehensive plan is essential for business success. Some benefits of a business plan include: Helps test the viability of the business Identifies the businesses strengths and weaknesses
Assists the business to be proactive rather than reactive Consequently, it is suggested that Philip and Lacuna take a look over their business plan if previously having made one, if not make a business plan to ensure the business is heading in the right direction at all times Management – Staffing and Teams Management is a fundamental activity that makes the business function. Every business needs effective management to succeed. Management is the process of: 0 – Coordinating a business’s resources to achieve its goals – Working with and through other people to achieve business goals in a changing environment. Effective management is usually the major factor influencing the success or failure of a business. It is essential to have employees who are satisfied and motivated as they will be more productive. They also provide the business with a competitive advantage, especially if the business offers a service where the customers come into direct contact with the employees.
Business success is also recognized to be linked with a team-based approach to the business, it allows: more informed and creative decisions work without the need for close supervision create greater levels of employee cooperation revive improved customer service and/or production output. DHOW teams are managed, therefore, is another critical issue determining business success. Therefore, it is commended that Philip and Lacuna consider their ways of management within the business and improve it to better the staff and create a team based approach to management which in turn will lead to high levels profit. The economic conditions are an aspect of the external business environment in which the business has no control.
Changes in the economic conditions in the economy have the ability to impact dramatically on a business in regards to success and failure. When an economy is in a boom, it will most likely mean that consumers are prepared to increase their spending because consumer confidence is high. Consumers are certain their Jobs are secure and incomes are expected to increase; they have an optimistic outlook. In periods of strong economic activity the economy will experience: – high levels of consumer spending. This will mean businesses have a greater capacity to sell goods and services and therefore profits are maintained and improved. – falling unemployment.
Unemployment is lower as businesses can afford to hire more employees when sales and profits are steady and growing. When an economy is in a downturn, it will most likely mean that consumers are not spending as much. This is because consumer confidence is low. Consumers fear they may lose their Job or their wages may not increase. Overall, reduced consumer spending translates to reduced profits for business. This will eventually lead businesses to reducing their production levels. Olin periods of weak economic activity the economy will experience: – lower levels of consumer spending. This will mean businesses have a reduced capacity to sell goods and services and therefore profits will decline – rising unemployment.
Unemployment is higher as businesses cannot support Current employee numbers when sales and profits are decreasing or negative. Therefore, the business is more likely to succeed during a boom in the economy because of higher levels of employment and falling unemployment. But, the business is more likely to fail during a downturn because of lower levels of consumer spending and rising unemployment Thus is it recommended that Philip and Lacuna consider the economic conditions in the economy to see where the business is at as well as being aware of the booms and downturns in the economy. RECOMMENDATION It is recommended that Philip and Lacuna consider the vital skills needed in management in order to keep their business productivity at high levels.
The business should be able to effectively manage change by firstly identifying them and then taking various actions to implement these changes. Finally it is essential that the reasons for business success and failure are identified and movements are taken to avoid failure and increase success. Skills in management including: adaptability and flexibility to change, strategic thinking and communication Managing change by: identifying the need for change, setting achievable goals, and management insulates Reasons for business success and failure: importance of a business plan, management – staffing and teams, and economic conditions With Philip and Lacuna considering these aspects of their business this should result in higher levels of business profit and success in the long run.
Short Answer questions Financial goals maximize profits increase market share 0 market share refers to the businesses share of total industry sales for a particular product maximize growth 0 internally or externally – internal growth could involve employing more people, increasing sales, introducing innovative rodents – external merging with or acquiring other businesses improve share price 0 share is a part ownership of a public company Social goals community service 0 sponsorship of a wide range of community events, promotions and programs social Justice 0 adopting a set of policies to ensure that employees or other community members are treated equally and fairly. Provision of employment Environmental goals Personal goals Job satisfaction Having good customer feedback Achieve greater financial security Business growth and diversification Management Approaches The classical approach to management stresses how best to manage and organize errors so as to improve productivity (output).
Strict hierarchical organization structure, various levels of power and authority Jobs broken down into tasks of specialization and clear lines of communication and responsibility Bureaucratic with rules, regulations and highly centralized decision making Multi-layered levels of management The behavioral approach to management stresses that people (employees) should be the main focus of the way in which the business is organized. Uses research and the scientific method to determine and understand behavior in the work place Greater emphasis on human resource management- leading to higher levels of motivation More effective channels of communication and more flexible working initiatives Flatter organizational structures Democratic style of government The contingency approach stresses the need for flexibility and adaptation of management practices and ideas to suit changing circumstances.
There is no “best way’ to manage a business because businesses and situations differ to a great extent – all depends on the requirements of the business Managers need to be adaptable and flexible in their technique to solving problems May be pyramid,flat or centralized organizational structure, depending on the business’s requirements Corrective action may involve: Changes to the materials, Products that are the firm’s output, The costs of turning raw materials into products, Management practices, Delivery of products to the market It may also involve changes to the organization’s human resources, because each individual’s performance in the organization is as important as the finished product.