Developing Successful Small Businesses
Added on 2020-06-04
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SMALL AND MEDIUM SIZEDENTERPRISES
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Contemporary issues in small and medium sized businesses.................................................1Strategic issues in SME businesses........................................................................................2Alternative routes of business development in SME.............................................................3Diverse business development methods in SME....................................................................4Financial aspects of business expansion in SME...................................................................5Change and development process in SME.............................................................................6CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONSmall and medium sized organisations in the UK operating as private firms are the mainfactors to improve and develop business growth in nation effectively. The report will covercontemporary issues within Azio which is a SME business within UK with 48 employees.Strategic issues are discussed in this report associated with SME. Different alternative routes ofbusiness development methods will be studied here as well in context of SME. Diverse businessdevelopment methods and financial aspects of business expansion will be explained too. Finally,the report will cover change and development process associated with Azio within UK.TASK 1Contemporary issues in small and medium sized businessesThere are many key challenges faced by small and medium sized businesses today inUK. It can be said that 99.9% businesses in the UK are private and holding a large number ofSME effectively. Azio is one of them which is an electrical keyboard making firm with a smallnumber of 48 employees. There is a significant impact of contemporary issues within Azio suchas:Leadership: There is no academic qualification to be a leader of an SME and as asuspect if one were offered most entrepreneurs eager to get started wouldn’t do it anyway. Leading people in a running business without any skilled and knowledgeable leaderis a challenging work for organisation. Thus, leadership plays an important role in Azioin order to manage human resources.Strategy: A consequence of a lack of leadership development is a lack of businessplanning in most of the SME. Business planning tools are necessary to focus whatmatters for the firm in terms of profitability and production (Brunswicker andVanhaverbeke, 2015). System and process: A lot of smaller businesses seem to think having systems andprocesses that make them less competitive. The process and system of delivering qualitygoods and services is also necessary to achieve customer satisfaction and requirements. Cash flow: The managers in firm should manage the cash flow in order to manageresources effectively. This will help them to manage different operational costs under thebudget. This will lead towards the financial goals and objectives.1
Staff Turnover: Staff turnover is the major challenge for firm in order to manage andcontrol them effectively. This can be described as number or percentage of workers wholeave organization and are replaced by new employees. Measuring employee turnovercan be helpful for employers that want to examine reasons for turnover or estimate thecost-to-hire for budget purposes.Growing Revenue: It should be no surprise that growing revenue tops the list of businesschallenges for small businesses. It helps towards business expansion, future growth andcreate opportunities effectively. Strategies help businesses and managers to achieve thedesired goals and objectives by managing work from employees and effectivemanagement.Raising Capital/Funding: Securing funding to get off the ground and begin expandingis not a surprising obstacle for small businesses to face. Thus, the firm should take initialsteps to raise its capital effectively. Lack of system and process decrease the effectivenessof business operations. Strategic issues in SME businessesThere are number of strategic issues within SME firms such as Azio is suffering fromlack of leadership and strategic planning (Hillary, 2017). Strategies and plans are important forthe firm in order to manage resources, strategic focus, competencies, products and services aswell as cultural modifications. Lack of effective strategy can cause some issues as describedbelow:Products and services: Products and services require an effective strategic plan todevelop and improve. Managers are responsible for making strategies towards quality aswell as effective products and services. Lack of communication also causes strategicissues. Thus, strategies towards products and services should be managed by firm inorder to increase sales and production.Unmeasurable goals: Goals are the main indicators for employees within firm whichhelp to identify what should be achieved in a specific time effectively. Goals can beeffectively designed and measured by reviewing the previous year’s data andinformation. 2
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