chapter 13: citical issues Flashcards
what is in a bus plan
should have reliable and accurate info in enough detail to be valid
- clear, concise statement of the goals
- well-developed plans for achieveing the goals
3.reliable control standards for measuring performnace
why is bus plan important
bluepirnt for future groth and development within a bus. sets direction and desired goals. if neglected, lead to bus failure due to no clear understaning of bus’s future
why do bus need a bus plan presented ina prof manner
read by bank managers, financial advisers, accountants, company directors, potential purchasers and interested partners.
little prep reflects poorly on bus owner capabilities of running a bus
good idea to get professional help from accountant, bus adviser, solicitor, or marketing constultant
what do managers ned to do for bus to succeed
- solve difficult problems
- set an help attain important goals
- develop attitudes of commitment and ownership
- create positive bus culture
- monitor bu’s external and internal enviros
- plan and allocate reosurces
- coordinate teams
- monitor performance of employees
- successfully put workplace and bus changes into action
- develop and implement sched and operating plans
what are the two important areas manager must pay special attention to
staffing and teamwork
staffing - recuriting, selecting, training and separating of employees must be undertaken with care
identify one mistake sme owners often make in staffing
not proviing enough time or financial resources to satisfactorily carry out recruitment process
ie hasty arrangements often ends in misfortune for both parties –> cos of this many SME owners outsource this function
outline recruitment
time consuming to ad, screen and interview potential employee so they hire recrutiment agencies to recommend a shortlist of potential employees for availbale poisiton. Outspucing has become more popular due to skill shortage worsening and bus see adv in hiring expert
what is a skills audit and aim
a process that establshies the current skills levels of employees and future skills reqments
aim to identify:
- skills that will give bus a competitibe adv
- weaknesses in the skills base which can threaten bus’s survival unless overcome by training or recruitment
what is a skills inventory
database containing info on the skills, abilities ad qualifications of existing staff
used to search for appropriate candidates to fill new positions within bus
what is the cirtical issue in managing teams
difficult for SME owners to have time or expertise to develop highly functioning teams or imporve the comms and efficiency of already established teams
thus seek prof help from training and coaching buses
- invest time and money in training of team leaders and team members, bus reap the reawrds of imporved productivity
how are teams better than individuals
acatlyst for superior performance esp in bus aopting flatter organisational structure
- make more informed and creative decisions
- work without need of close superviison
- create greater levels of employee cooperatoiin
- provide imporved customer service or production output
what is trend analysis
process of investigating changes over tinem and looking for a pattern in order to predict the future
- uses past to provide idea of what will happen in future
what does a trednd anal help forecast
- potential sales
- ttotal revenue
- ttoal op costs
- gross and net profits
- availability of labour
more reliable info for owner to base decisions
define competitive advantage
the strategies used bya bus to ensure it has an “edge” over its competitors
- cant always sustain above-avergae performance therefore must choose strat to develop its strengths
what are ways bus can compete on cost
- seek low cost labour
- imporove efficiency or ops through specialisation or more machinery
- utlilise tech
- achivee eco of scale
why would bus use differetiation strat
SME cant compete with large bus on cost so they diff produtc on factors such as value, quality, brand image, service and flexinility
to limit the advnaces of competitiors, a bus ust reduce opps availbale to comps achieved through:
- R&D
- patents/copyrights
-exclusive contracts with supplers - lobbying gov to limit foerign comp
most importantly, actions must be dynamic ie staying in front reqs constant action
a bus can overextend financially by:
- cars
- equip
- office furniture
- plant & machinery
- the premises
- purchasing excess stock
employing too many tsaff
these expenditures are fixed –> higher degree of risk eg is eco conditions weaken, buses highly geared (highr debt-to-equity ratio) come under great financial pressure and more susceptible to bankruptcy
tip to avoid overextanding:
- bus planning –> cajs flow projections, preliminary establishment costs, personal financial budgets, financial statements and setting obj and goals
- avoiding overdependece on debt financing –> avoid problems during weak eco condition where lenders wait for bus to overcome difficulties
- long term financial planning –> anticipating future problems, direction, grwoth and expansion
- a small start –> start slow and allow market to determine times for expansion and growth
other than finance what else do bus overextend on?
stock and staff
what tech is available to buses
- customer transactions - eg monile payments, paypal, bitcoin and digital currency
- comms equpiment - eg phones, conferencing, group messaging, live chat
- logistics - eg drones, auto vehicles and autommation
- mahcinery and equipment - eg robotic machines, 3d printing
- social media - eg facebook, insta, snap
reduced time delays and faster porduction times overall reduce cost
what is an e-bus
using internet to conduct bus
- uses internet to find info
- uses email to comm
- use internet to strealine transactions
- creates intranet
- trade goods and services online
- online training
- research market conditions
- marketing
- lodge forms or apply for licenses
what is e-commerce
refers to the buying and selling of goods and services to have an online presence
how do booms promote bus success
- higher lvls of spending –> higher lvl of disposable income
- falling unemployment –> hire more to meet increased demand
- increased production –> increased sales and profits
how do downturns lead to bus faillure
- lower lvls of spengin
- rising unemployment
- decerased production
