Critical Evaluation of an Entrepreneurial Australian Business - Essay Example

Critical evaluation of an entrepreneurial Task Introduction Btec communications Pty is a computer management facility based in Australian business that offers computer services majorly in documentation of data through its Depot Management systems. The company is considered as a small business within the Australian technology services with relatively small number of employees and has experienced tremendous growth over the periods as shown by the revenues improvements (LATIMER, 2011). Due to increase in demands, there is high opportunities provided by small businesses in an attempt to manage their systems well. The company operates in the technology industry which requires innovation at all times so as to remain competitive in the market. The business rather was developed due to the exhaustive manual records hence there was need for cheaper storage materials for the small businesses. This led to the rise of depot management systems by the company to alleviate the problem and make the businesses more efficient (CAGAN, 2010).However the industry is characterized by competitive markets where there is free entry and exit. Thus as time goes by the market is concentrated in the provision of the goods and services. The firm plans to increase its management systems so as to upsurge its customer base as to raise more capital that can be used for expansions. The current server that is used by the company is quiet small and cannot accommodate the rising demand of the service in data management by different institutions and individuals. The company thus plans to invest in more server space at relatively affordable cost. The organization also plans to diversify in its activities to surge revenue base which are just the few growth strategies to be implemented. Customer base has since increased since small business who can’t afford the large and expensive management and documentation system ends up in the Betz facility services .this has since increased the market size of the company commanding a substantial share of the market. As a result sales are greatly improved raising more revenue to the company. To achieve this, the organization plans to increase the number of employees to the various departments acquire qualified labor to addressed the issue of shortage of labor since the implementation and successful of the plans greatly depends them. The organization stands a better chance to increase its profitability if all the plans are to be implemented (LATIMER, 2011). However since the organization is still a small company, there are various challenges as to the development strategies due to the limited capital. As a result the company is limited to the amount it can borrow and must find the right balance of the input resources to maximize their output. Evaluation hence is necessary depending on the priorities as to which objective is to be achieved first so as to increase the profit potentials. The company thus is to increase its operations cost since they will have to hire labor, purchase the inputs in the short runs and is estimated to bring positive returns in the future periods as it becomes stable and competitive in the market. Betz facility operates in a competitive market where other firms had already establish themselves which will force the company to remain innovative over the periods as they try to expand in service provision(LATIMER, 2011). The company would only fit in the market if the goods they offer are price competitive to avoid losses due to price inefficiencies. Quality products fetches high revenues that makes the organization to expand with ease minimize the debts as result of borrowing from financial institutions. Hence prices set that will be just enough to recover the costs is sufficiently okay as the company establishes itself in the market. Carrying out advertising relatively cheaper cost for example taking in advertising podiums like the online while promoting the products in the market to increase the revenue. Success of the organization will depend greatly on the marketing strategy that organization will employ. This will involve creating a unique brand within them to overcome competition. The business plan will hence be centered to increasing sales. The company should create avenues as to improve both the local and international markets (GASPARSKI, 2011). This will enable the company to have diversity in markets minimizing the risk that may result due to local market failure. This provides maximum revenue which enables the firm to compete favorably, diversify in all aspects while improving the organization standards. Having increased the growth measures and rising competitive nature of the business, the company will formulate legal structures that will help protect the organization from unhealthy competition from the sector while constructing a good management team to oversee the implementation of the activities. Good rules and well-coordinated efforts improves efficiency in the production process so long as the team is well composed and motivated. This reduces the costs operations while maximizing the profits levels. The CEO should hence be the front man in making the organization better. The company should make use of the most cash that they have to improve their output. This will be an opportunity as big firms do not plan well with their finances. They spend in unnecessary manner like advertisements, brand imaging while spending less on research and development making them less innovative (GASPARSKI, 2011). As a result the small firms like Betz can take advantage by minimizing their expenditure by use of less costly advertisement like online and investing more on the research so become more inventive. This will increase their competitive advantage in the market reducing the market share between the big firms and the small organizations. By operating in the small markets, they are flexible to various economic changes as compared to large organization who tends to be more rigid due to cumbersome procedures of doing work. Hence the CEO should make and enact laws that will make the firm to respond quickly to any market advantage or the general procedures of doing work easy. This would reduce delays in the operations of the company resulting to smooth flow of work leading to high a market rate supply. The organization is hence made better of as the market niche is greatly reduced between the firms. The CEO should allow free communication among the employees and the leadership. This would lead to dissemination of information to all departments and a free movement of work. A well-coordinated office results in high production capacity that will translate in high profits to the organization (LALL& SAHAI, 2008). The CEO should come up with various ways on how to improve the employee morale. The labors must be compensated adequately as per the work they perform and their security ensured as they are the most important part of the organization and determines the quality of goods and services produced. This would otherwise motivate the employees and would solely focus on achieving the company goals and objectives making the firm to be better. The company will also foster entrepreneurial activities to increase sales. This can be achieved through the organization fostering creative works in the product provision. The CEO hence should encourage innovative in the work stations by employees undertaking various research. This will improve employee engagement, morale boosting and good environment for work bringing more ideas, employing qualified workers and retaining the best brains in the organization (LALL& SAHAI, 2008). Thus productivity is of high standards that yields more revenue increasing profits. This returns could be invested back in the firm to increase the diversity in the firms output. Having improved the organization revenue base, it should now consider having a long term strategy on the sustainability of the organization. The net incomes can be invested in other businesses to provide securities which in return will make the organization to be independent in terms of required capital (LALL& SAHAI, 2008). As a result the company will have an increased savings into the banks and can access any loan facility whenever they wish. The company also plans to be listed under the stock market which will make the firm to sale its shares to the public. This will raise more funds to the organization to invest in other areas providing financial security to the organization hence will be more stable in the future times. References BADI, R. V., & BADI, N. V. (2005). Entrepreneurship. Delhi, India, Vrinda Publications. GASPARSKI, W. W. (2011). Entrepreneurship values and respinsibility praxiology. New Brunswick, Transaction. LALL, M., & SAHAI, S. (2008). Entrepreneurship. New Delhi, India, Excel Books. PINSON, L. (2008). Anatomy of a business plan: a step-by-step guide to building the business and securing your companys future. Tustin, CA, Out of Your Mind & into the Marketplace. CAGAN, M. (2010). Streetwise business plans with CD create a business plan to supercharge your profits! Avon, Mass, Adams Media. http://public.eblib.com/EBLPublic/PublicView.do?ptiID=790965. FRIEDLOB, G. T., & PLEWA, F. J. (2006). Financial and business statements. Hauppauge, NY, Barrons Educational Series. ABRAMS, R. M. (2003). The successful business plan: secrets & strategies. Palo Alto, Calif, The Planning Shop. SIMERSON, B. K. (2011). Strategic planning: a practical guide to strategy formulation and execution. Santa Barbara, Calif, Praeger. ENGLISH, J. W., & MOATE, B. (2009). Discovering new business opportunities. Crows Nest, N.S.W., Allen & Unwin. http://site.ebrary.com/id/10297316. LATIMER, P. S. (2011). Australian business law 2012. North Ryde, N.S.W., CCH Australia. Read More