Planed Process in the Future of a Business - Essay Example

Planed’ process in the future of the business of The paper will examine to the extent ‘planed’ process remains appropriate today. The paper explores 13 written articles on the process. It also shows the development of the field since it was started until now. The paper will use organizational illustrations to help understand the topic further. Planed’ process is defined as the determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for those goals; this definition is from chandler. This paper will revolve on this definition and illustrate with examples organizations. Key words: planed’ process ‘Planed’ Process in the Future of a Business Many believe that planning in a business is the key to success. To some extent, that fact is true. However, there are situations that cannot be foreseen during the planning process. When organizing a business, most of the concentration is put on the division and allocation of capital and resources to the areas that can bring back much more to the business. A business should be profit oriented. However, each business has its season (CIMA, 2014). So when planning it is better to look at the long-term goals and allocate resources and capital according to them. If the business is to last for a longer time then the planed process is the way to go. If resources are concentrated on short time goals then the future of the business will be short lived. Focusing on the future when deciding which strategy to follow will be the best way to go. Business strategies are very important in the growth of a business. The field of business strategies has grown tremendously. Introduction of software’s and new ways of creating perfect business plans has seen success in many businesses. Now there are methods that business owners use to predict the direction of a business. This makes them create business plans and strategies that protect and ensure that the business continues to grow. A proper business plan is good for any business. Organizational growth is referred to as the growth in annual revenue and the improvement of the business. However, it is much more than that. It is not necessary that growth is getting bigger profits. Many businesses view growth differently and it is important you define the type of growth you would like (Johnson, 1992). Business owners need a superficial view associated with growth methods they want for their business. Regardless of whether your business is flourishing, chances are it is not as productive or effective as you want it to be. You may prefer to increase your clientele, sales profits, to get a higher income. The business should grow well in its market by selling and putting money aside for the hard times. With the profits that you make, add important pieces for a business infrastructure that the business could not previously afford. These pieces can be employees that would help the business run smoothly and other safety precautions like insurance. For example, you were not able to purchase an insurance policy to protect your business against damages and insecurity, the profits that you have made would make it easier to purchase a long-term policy for the job. In addition, you would have made enough savings to help you sustain the business during the rainy season (Miller 2008). Your power to influence people, your leadership capabilities and emotional intelligence are all factors to consider while determining how your business grow. Growth may also be about certain goals that contain nothing related to overall revenue growth. What form of work/life balance are you trying to achieve? Often a new businesss efforts in growing are wasted. This could be since they are not inclined to building competitiveness and tend to be short-term within their perspective. They are not able to capture the benefits of compounding because they build on what is recent. Determining how you wish to grows, means that defining the specific strategy that will assist your business to move, from marketplaces and products to stations and industry intelligence. When it comes to business, both the customers and the competition are constantly changing. For that reason the market, ailments rarely stay the same for long. Changes in your business strategies to accommodate these changes are necessary for the business to be successful. Your business strategy had been a best fit intended for what the marketplace needed after you started your small business, but as your organization evolves and also external ailments change, altering your company strategy is important to the long-term achievements (Liabotis, 2007). For example, Twenty years ago, newspaper companies would not believe their printed circulation could drop significantly in the coming decades. Now, news companies who have not followed the modifications that sported the development of the internet trends are feeling the actual crunch from modern tools. In the eventuality, they were able to remain in business for all this time. Because market trends have transformed, it not mean that all business strategies need to change. When evaluating whether the business strategy is up-to-date, you have to analyze every single section separately. By discovering which areas ought to be changed, you can prevent a massive alteration on your companys operations and concentrate on improving the organizations relevancy and competitiveness availability in the market (Fieber, 2013). One rule is to generate a certain percentage of change on your strategy each time that you need to reevaluate the plan. This percentage change means that you can update your technique to be relevant in different stages. However, the changes should be small enough not to affect the operations of the company. By creating small changes as time passes, you will realize that the business will changeover more efficiently as the market changes. The great thing that a business is able to do is to assure success is correctly gauged in a specific business. While using news companies, integrating the internet into their business model is the actual change, many organizations are required to make as a way to stay related to customer’s desires. Those who have adapted these changes and made the actual change in years past found the transition less difficult as the customers preference lean heavily on digital information (Chadron, 2010). By checking up on technology and consumer changes as part of improving your business, it is easy to incorporate fresh developments into your organization in time, rather than playing catch-up once the competition decides to put up modernizations in their operations. Some people hate change. We feel comfortable inside the routines and habits we develop and use for a long time. These results in monotony and an absence of risks and that cannot be good for business. For just a business, this aversion to switch is deadly. Sales are continuously changing, and in case your company is not updated, you might find that you will be left inside the dust behind your competition (Henry, 2014). There are different types of growth strategies. One of business growth strategy in operation is current market penetration. Small businesses use an industry penetration technique when they decide to promote existing products in the same market. The only way to develop this strategy using recent products as well as markets should be aimed to increase current market share. Market share is the percent of unit a firm holds inside a certain market against all the competitors. A great way to increase current market share is by decreasing prices. For example, in marketplaces where there is little difference among products, a decrease in price may help a business increase its share in the market. A market expansion growth strategy, called market progress, entails promoting current products in the new current market. There several reasons why a business may consider a market development strategy. The competition might be such that there is no room for growth from the current market. If a small business does not find completely new markets due to the products, it cannot improve sales or profits. Small businesses may also make use of a market development strategy if it locates new uses due to the product. For example, a little soap provider that markets to retail stores may also want the factory employees also use the product (Suttle, 2014). A small enterprise will expand its products or create new features to increase its sales and profits. When little companies employ a product development strategy, also referred to as product progress, they keep on selling from the existing market. A product expansion growth strategy is often successful when technological expertise starts to switch. Small enterprises are often forced to include new products as older ones become outdated. Growth strategies in operation also include things like diversification. This is where small businesses will sell new products to completely new markets. Small businesses will have to plan carefully when they use a diversity growth technique. Marketing research is critical because a firm will need to determine if consumers in the new current market will like the new products. Your services and products already help with your financial wellbeing. If your company is certainly not horribly dysfunctional, every transaction that has a customer gives profits form the collections. The simplest way to increase your current profits is to improve your sales volume. Find new markets for your services and products, determine precisely what specialized and targeted mass media they use, and begin a new marketing strategy for all of them. Offer them their own deal not the same that you offer your regular customers. This will allow you to track whether the marketing technique is doing the job (Davidson 2014). A small percentage lowering in the cost of your product is an effective a method of maximizing your financial status as the same as increase a small percentage in your price. Shop around for switch suppliers to ascertain if the prices you are purchasing your merchandise are market rates. This will help a lot in setting the price of your products and increasing a profit margin. Getting the right supplier for your products will be paramount in making profits in the business. Do not define your small business and its mission narrowly (Sabharwal, 2014). It can cause you to miss from opportunities pertaining to revenue development. Think in the broadest terms what you look for while delivering for a customer, and what your small business is able to bringing on the market. Having a favourite brand name permits you to introduce new services and products more simply. Strive to get the most use of all company assets and resources. You may have unused resources that may prove to be the difference maker in your business. Spare retail store or a workplace could end up being offices or rentals to another company. An accounting firm could rent out conference space to help attorneys or even other professional companies. The strategy is usually to turn non-earning or even underutilized belongings into opportunities for increasing cash flow (Outsiders, 2014). Find out why specific customers do not buy from you. Never give up on doing business with them. There are strategies you might employ to capture them. For example, Movie theatre owners have a younger group for the first showing of a movie, because the filmmakers as well as distributors supply more films tailored for that age group. Theatres began offering exclusive daytime showings connected with classic movies that appeal to an older audience to acquire those customers in to the theatre at that time. Another example: A golf club trying to help attract members that are more radiant may offer free lessons to help kids as a means of stimulating young parents to play golf (Hill, 2014). In sourcing happens when a new multinational company moves a particular business practice or number of practices to another country. Instead of contracting another company inside a foreign region, as inside outsourcing scenarios, the company keeps the organization activity inside the company. The company either uses a well-established subsidiary internationally, or creates a subsidiary inside a specific region. The additional country should present certain advantages for the company to participate in these specific business techniques there instead of in the multinational companys home region (Symes, 2014). In sourcing provides a number of benefits, with respect to the company organization practices and where the company is. Some regions of the world provide less expensive labour, making the production of products including textiles and electronic components cheaper. A multinational company may perhaps locate a few activities in just a certain country in order to avoid paying charges or additional penalties, charged on items imported from not in the country, or to take advantage of tax incentives provided to businesses operating in the United States. A company may also want to take advantage of the exclusive skill sets present in a specific area, benefiting those knowledge business techniques. References Chadron, D. (2014). Begin at the beginning in organizational change. Retrieved on 6th march 2014 from: http://www.organizedchange.com/decide.htm. CIMA. (2014). Incorporating ethics into strategy: developing sustainable business models. Discussion paper Davidson, E. (2014). Growth Strategies for the Bottom Line. Retrieved on 6th march 2014 from: http://smallbusiness.chron.com/growth-strategies-bottom-line-1693.html Fibber, T. (2013). What To Do When Your Business Strategy Changes. Retrieved on 6th march 2014 from: http://ezinearticles.com/?What-To-Do-When-Your-Business-Strategy-Changes&id=8097105 Hennry, D. (2014). A Business Strategy Is Mandatory To Guide an Organization. Retrieved on 6th march 2014 from: http://ezinearticles.com/?A-Business-Strategy-Is-Mandatory-To-Guide-an-Organization&id=8257474. Hill, B. (2014). Growth Strategies for Companies. Retrieved on 6th march 2014 from: http://smallbusiness.chron.com/growth-strategies-companies-2525.html. Johnson, G. (1992). Managing Strategic Change Strategy, Culture and Action. Long Range Planning, Vol. 25, No. 1, pp. 28 to 36, 1992 Outsiders. (2014). Successful Business Growth Strategies. Retrieved on 6th march 2014 from: http://www.chiefoutsiders.com/strategic-services/business-growth-strategy/. Liabots, B. (2014). Three Strategies For Achieving And Sustaining Growth. . Retrieved on sixth march 2014 from: http://iveybusinessjournal.com/topics/strategy/three-strategies-for-achieving-and-sustaining-growth#.Uxju7cGM8-8. Miller, C. (2008). The Importance of Defining Your Business Growth Strategy. Retrived on 6th march 2014 from: http://ezinearticles.com/?The-Importance-of-Defining-Your-Business-Growth-Strategy&id=1813863. Outsiders. (2014). Successful Business Growth Strategies. Retrieved on 6th march 2014 from: http://www.chiefoutsiders.com/strategic-services/business-growth-strategy/. Sabharwal, S. (2014). Alternative growth strategies for small business. Lesson 10 Suttle, R. (2014). Growth Strategies in Business. Retrieved on 6th march 2014 from: http://smallbusiness.chron.com/growth-strategies-business-4510.html.  Symes, S. (2014). What Are Two Strategies Commonly Used by Multinational Companies?. Retrieved on 6th march 2014 from: http://smallbusiness.chron.com/two-strategies-commonly-used-multinational-companies-17440.html.. . Read More