Key Elements that Make Businesses Grow - Coursework Example

Key elements that make businesses grow By: Introduction Associated British Foods is an internationally recognized firm. It has opened branches in many cities all over the world. It is has gained recognition for its high level of production and large profits. It has businesses both in the hotel and retailing sectors. The retail section is Primark, which has open retail stores all over Europe. All this has led to Associated British Foods to trade in the London Stock Exchange. This shows the firm always produces the best results after every financial year. This report is going to show key elements in the markets the firm is using to maximize productivity. There are important tools in macro and micro business environment that the firm uses to gain success in the market (Barry, 2005, p. 65). This paper is going to show how that firm gained the ability to control the markets. Background Primark is a well-respected retail store across Europe. It is a clothing line based in the UK. Primark is growing year to year because their managers observe simple business rules. They respect simple things in the market, as the consumer taste. It has created a lot of employment hence boosting the countrys economy. It is still the second largest clothing line in the UK, and they are aiming for the best. They always push up the Associated Foods profit, and this is because of the high sales in their stores. All this is because their leaders never make flaws in entrepreneurial thinking. They always remember the main objective of the business. A business with a vision always has the capability to succeed (Abrams, 2003, p. 43). Their workers have a passion for succeeding, and they work out of their hearts. Their management has proper planning. Business plan is crucial for any business; it is like a handout on what they should do. A business plan will highlight the role of every element in an organization; that is the management, finance, marketing, and sales. It will give a business strategy for a long term. The plan will help the management know the number of people they should employ (Greenhalgh, 2005, p. 86). This assists the business to grow significantly, because they would have known the budget to spend in a given financial year. Primark never lacked any source of funding. It was a branch of a big organization in the UK. This factor made the retail store grow to great heights. They never lacked the capital and finance to run production costs. They had a business plan where they estimated the amount of money they required. This made the store not to face any underfunding. They had their business begin in the right location. It began in London, where it there is a lot of markets. This was a viable location because many people visit London to know the latest trends in fashion. This site is market friendly, and the customers who were satisfied with Primark spread the news. Primark used effective marketing to attract their customers. This is to make the people aware that the business exists. They knew their target audience, thus, used every method of marketing, such as advertisements, to reach out to them (Rhonda, 2003, p. 14). Primark succeeded because they hired the right people for the job. The employees had the will to work and promote the retailer. They had undergone good training and had the best customer relation. The management took their time to get the right people, through interviews and to identify their experience. The firm knew their competitors and took advantage of their weaknesses to acquire customers. Knowing the competitor is an element, which makes organizations, to succeed (Hawken, 1988, p. 45). Keeping the track of your competitor will help the organization to grow. The most important element is to believe one can do anything. This tool made Primark succeed. They gained a lot of respect for showing signs of being willing to serve the organization. They had motivation making them apply all aspects required to grow a business (Appleman, 2008, p. 209). They seek the advice of experts of businesses and clothing lines. They applied the advices in their operations. Internal factors and tools that make business grow Business tries to solve various macroeconomic issues (Moore, 2011, p. 66). They use business tools to solve this and grow. Primark used these tools to maximize productivity and gain a lot of profits. One of the tools is share of ideas among the business employees. There should be chat systems in the firm. Employees will share important information that will help grow the business. For example, the finance manager can consult with the director easily and make important decisions. There will be minimal interruption and other employees will concentrate on their work (Bond, 2005, p. 111). This increases productivity. Information moves at a tap of a finger, and this takes less time to make decisions. Primark used the tool of time tracking. Managers easily supervise employees with deadlines. It also makes employees work hard, because they will not late for work (Lientz, 2009, p. 19). Keeping records is among the tools that make a business grow. Primark became successful because they kept important records like financial reports. The management will know how to make plans, and the business can be able to tackle challenges with ease. Keeping records will make the business create strategies and overcome obstacles that make the business not grow. A business knowing the risks in the market is a tool that makes it grow (Bartlett, 2013, p. 198). It should also know the rewards it will get at the market. Getting to know the risks will help the entrepreneur know what challenges may rise and how he could face them. Primark’s managers were creative. It made them improve the business year to year. They targeted London where many fashion designers flock the market. They captured the eyes of these potential customers, creating new markets in the end. It made them open branches all over Europe because demand rose. The managers act as if they do not know anything and open up new ideas (Howson, 2007, p. 7). Another tool for the success of Primark is the way they stayed focus. The business knew they needed time to hit the international stage. The employees and management kept their heads high and hoped for the best. Preparing to make a sacrifice is a tool for success (Midgley, 2003, p. 73). Primark had hard work in their undertakings and after gaining success, they still never laid their hands down. The employees sometimes opened the outlets for more hours due to high demands. This is mainly during the festive seasons as the Christmas and Easter celebrations. The employees worked with passion. They dedicated their time to make the customers satisfied. This is because good service delivery is a tool for business success. A business with a good public image will never fail (Fairley, 2007, p. 80). The customers will be coming back always and in the end; the business will gain a lot of revenues. Having a challenging mission is an internal factor that makes the business grow (Lindsell-Roberts, 2006, p. 114). The retailer outlet acknowledged its competitor and knew what to do to defeat them. A mission will give the business challenge to pass. It is like self-motivation. These goals are achievable. An example of a goal is like increasing the revenue of the firm. Lessons learnt from experience are important in making a successful business. A successful business applies good lessons learnt from the previous financial year and improve the shortcomings. Primark gained many useful lessons from their first outlet, and this helped the business open more outlets, even outside the country. Primark highlighted many macroeconomic issues. The biggest issue is the unemployment rate. Primark has employed many people to work in their stores all over the world. It has played a role in trying to reduce the unemployment rate. Unemployment is a problem in the labor sector (Lund, 1987, p. 43). Primark is a department in the labor sector. They took responsibility and acted on employment. Microeconomic deals with a small issue. Primark has no influence in the microeconomic world. They contribute to the large markets. There are various challenges facing business community. Primark is solving these issues. They hinder the development of the outlet, which wants to open branches in every continent. There is the problem of uncertainty. It comes from all the parts that makeup a business community. Primark had the uncertainty of political situations in different countries across Europe. There was also uncertainty of the global economy because the firm had branches outside the country. This report recommends the business to observe various business indicators to avoid uncertainty. There is the problem of failing to plan. Without a plan, the business is doomed to fail. A plan is like a reference point when the business is facing difficulty. This report recommends business leaders to make strategic plans before starting up a business. Some business lacks leadership. Others have the leaders, but lack the skills to run the businesses. This report recommends businesses to choose the right leaders. They will guide the firm to a good position (Fairley, 2007, p 78). There is a problem of a human element. The human resource department should be active in every organization. Employees in the business should be motivated all the time. Talents should be improved and the ones with special skills to get special duties. This report recommends that firms should motivate employees and give them benefits. They should have leisure time to help them energize (Barry, 2005, p 5). There is a problem of cash flow. Many businesses lack the finding for their major projects. Others lack funds to run the production unit. This will reduce the chance of the business growing to the next level. This report recommends businesses to get adequate capital and collect any money owed outside. Planning is important in making the business prevent lack of funds in the future. Conclusion Businesses start from a small firm to a multinational corporation. For a business to grow, certain market factors require consideration. Every firm faces challenges, but with correct leadership, finding a solution is not a problem. Primark is an example of a firm that followed the right procedures to reach the top. It still follows these procedures because the firm has not reached the top yet. Reference list Abrams, R., 2003. The Successful Business Plan: Secrets & Strategies. Chicago: The Planning Shop. Appleman, J. E., 2008. 10 Steps to Successful Business Writing, Volume 978, Issues 1-56481. 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