Comprehensive Business Management Report: Travel Corner Company

This report provides a comprehensive analysis of the Travel Corner company's business management practices. It begins by exploring various sources of startup capital for small businesses, including angel investors, bank loans, venture capital, and small business loans. The report then identifies and discusses the critical success factors (CSFs) for Travel Corner, such as strategic focus, people management, marketing strategies, and operational efficiency. Key performance indicators (KPIs) like cost of goods sold, revenue, and staff turnover are also examined to assess the company's performance. Furthermore, the report delves into the risks faced by small businesses, including environmental, financial, cyber-security, and reputation management risks, along with their potential impacts. Mitigation strategies, such as insurance policies, financial risk management, cyber security protocols, and reputation management techniques, are also presented. Finally, the report concludes by outlining the growth strategies employed by Travel Corner for future development and success.

Business Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
Sources of Start-up Capital for small business:-.........................................................................1
TASK2.............................................................................................................................................2
(a)Critical Success Factors For Travel Corner Company:-.........................................................2
(b)Key Performance Indicators of Travel Corner Company:-....................................................3
TASK3.............................................................................................................................................4
(a)Risks faced by small business and its impact on the organisation.........................................4
(b)Mitigation of the above risks..................................................................................................5
TASK4.............................................................................................................................................6
Growth strategies employed by organisation for future development and success ...................6
CONCLUSION................................................................................................................................7
REFERENCES:-..............................................................................................................................7

INTRODUCTION
Business Management is an act of getting people together to achieve desired objective or
goal of the organization. The business management may be summed up by managing the
resources of the entity to achieve the desired results. Present study is based on Travel Corner
company, it is the holiday service provider. This study describes the sources of raising start-up
capital and it also explains the success factors and key performance indicators that are adopted
by Travel Corner company. Apart from that, this study also describes the impact of risk factors
on the business and various mitigation strategies adopted by the firm to reduce such risks.
TASK1
Sources of Start-up Capital for small business
Business need fund to run the firm and conducting daily operations. There are various
sources of start up capital. These are described as below:
 Angel Investors: -These investors are basically groups or individuals who arrange
capital from the personal assets to support entrepreneur with starting his business. These
investors look for those start-ups which have good potential for earnings. They are ruler
in their own field who not only share their network of contacts and experience but also
their managerial and technical knowledge. In return they have the right to inspect the
management activities of the company. The National Angel Capital Organization is an
organization that helps the angel investors to develop their capacity (Erasmus, Strydom
and Rudansky-Kloppers., 2016).
 Bank Loans: -This is the most commonly used source of funding for small as well as
medium sized business. Since all banks provide different benefits whether its customized
repayment or it's personalized services. So the entrepreneur has to identify the particular
bank that satisfy his specific needs. Usually banks look for the companies that have
excellent credit with a sound track record. However, these loans require a personal
guarantee from the owners.
 Venture Capital:-Venture capitalists are generally group of individuals that offer funds
through an organization that they have established. They take an equity position in the
company which carry out a higher risk project but in return they also expect a healthy
return on their investment. However, these days many Venture Capitalists have moved to
a mentor role as they assist the entrepreneurs regarding business decisions and offering
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advice as a protective measure. If the owner does not find it suitable then he has the
option of small business loans.
 Small Business Loans:-The Small Business Administration has been initiated to support
entrepreneurs regarding their business. A small business loan is guaranteed by the Small
Business Administration as generally they provide lower rates than traditional loans.
However, these are not only form of government assistance they can also raise funds
through government grants.
TASK2
(a) Critical Success Factors For Travel Corner Company:-
Critical success factors can be defined as management element that helps in achieving goal of
business unit.
 Strategic Focus-The success of Travel Corner company can be influenced by its
effective strategies. Strategic focus is the key success factor for business, as managers of
Travel Corner company continuously analyse, evaluate and monitor tourism performance
and management strategies to accomplish the long term sustainability and growth of the
organization. The strategic planning and continuing management for a destination lead to
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the improvement and success of the company (Aithal., 2017). Hence strategic focus is the
critical success factor for business.
 People- It is another critical success factor for Travel Corner. The management conducts
training programmes for the employees to develop their valuable knowledge and skills. If
the staff of the company would be satisfied, then only they would be able to satisfy the
needs of the guests. The employees must be capable to communicate with the customers
in a well manner so that the customers share good reviews and experiences with
everyone. This helps business in increasing sales and meeting the business objectives.
 Marketing: - The main objective of Travel Corner company is to maximise their
revenues and profits along with customer satisfaction. Marketing is the critical success
factor for Travel Corner company, it helps in building blocks to maintain communication
between the corporation and customers. Travel review websites, social media platforms
and tourism blogs of the company present the information clearly to the customers so that
they can research and investigate everything from suppliers-airlines, hotels and rental
cars to the actual destination themselves. The preponderance of travel details and
feedback can be overwhelming for the Travel Corner company as it helps the company to
maximise the number of customers and also to build trust among the existing customers
for future bookings.
 Operations: - It is CSF for Travel Corner company, it uses advance ERP and booking
soft-wares and solutions to facilitate quick communication with customers. For instance
if the flight is delayed due to snow storm then in such case the Travel Corner is capable
to mediate information and communication between the customers and airlines to execute
a rebooking or alter hotel accommodations to retain the customers and establish
operational efficiency (Jenkins and Williamson., 2015).
(b)Key Performance Indicators of Travel Corner Company
Key performance indicators can be defined as performance measurement tools which helps
the firm in analysing actual performance and improving as per industry standards.
 Cost of Goods Sold: - It is most effective KPI which helps to enhance the performance
of the company, the Travel Corner company look at the value of the offer that the
company is providing to the customers. Generally, the cost of goods sold includes those
expenses that are directly related to providing the services to the customers. So the
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management needs to make efforts to reduce the cost to maximise the profits of the
company (Sadgrove., 2016). Company should monitor all expenses and have to minimise
wastage. This will support in controlling of cost of goods which will enhance
performance of business to great extent.
 Revenue: -The most common and one of the important Key performance indicators is the
overall revenue. The Travel Corner company can estimate total revenue per available
room which highlights the amount of figure that the company is generating per available
room. Since the Travel Corner company uses booking soft-wares and solutions which
helps the company to maintain the communication with customers and to track
performance and sales turnover easily (Kumar, 2018).
 Staff Turnover: -The Travel Corner company also concentrates on staff retention and
satisfaction. If the staff turnover is increasing day by day the company may suffer a big
loss on wages, training time and even severance packages. So the management of the
Travel Corner company should motivate staff by giving them rewards, recognition, this
will help in minimising issue of staff turnover in the firm.
TASK3
(a) Risks faced by small business and its impact on the organisation
Environmental and Natural Risks:
Travel corner company is facing some of environmental risks which are uncontrollable
and arises due to natural disasters. Such environmental risks are developed outside the
organisation and cannot be controlled by organisation. These natural disasters can cause business
interruption and damage of assets which leads into decrease in production capacity ultimately
decreases the revenues of the company. It badly affects assets of the firm and also devastated
complete business. These environmental factors also have a deep impact on the financial
condition of the firm as it harms to inventories due ultimately which results into big losses to
company (Burns and Dewhurst., 2016). Due to natural risk travellers do not plan for trip which
creates negative impact on business as it reduces profit of organisation.
Financial Risks:
Travel corner can face economic risk, as if travellers change their mind to go on trip then
it can reduce sales of the company, in such condition entity may get fail to recover its cost of
operations hence it cause finance risk to business.
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Cyber-security Risks:
Cyber-security risks are caused due to unprotected or unrestricted use of internet. These
can cause into leak of corporate data or information of the business ultimately which results into
big financial losses of the firm. Such cyber-security risks are also arising due to loss of key
employees of organisation as they know all the corporate data of the organisation which allow
them to hack or to share important information with the competitors. Travel corner company is
facing number of issues in handling such security risks while these security risks causes damage
to the entity as it has high impacts on the economic condition and on the trading of the firm.
Such risks have high impact on the data leaking meanwhile privacy and management of the
company due to which company faces challenges in development and expansion of the company
(Wisniewski., 2015).
Reputation Management Risks:
These reputational management risks are damage to the reputation of the business and are
arising due to negative employee behaviour or their negative posts on the websites. Such risks
also arise from the negative rumours from the competitors or by unpleasant behaviour of the
employees with the customers. Travel corner company is facing number of issues in managing
their reputation as this reputational risks impacts on sales meanwhile profits of the organisation.
These reputational risks impact on the sales and management of the company meanwhile
decreases productivity and effective working of the company.
(b) Mitigation of the above risks
Insurance policies to mitigate environmental risks:
The natural risks are uncontrollable but can be fixed by setting an aftermath succession
plan for managing such environmental risks. Such risks can be overcome by getting all the costly
assets insure in the company. Travel corner company is getting insurance for every asset to
reduce chances of its failure that is financial damage to company.
High security and effective money use to mitigate financial risks:
Impacts of the Financial risk can be overcome by effective and limited use of money to
reduce waste of funds and to gain large amount of returns from used amount in the firm. These
can also be handled by designing effective aftermath succession plans which can be applied
when company undergoes big losses. While financial risks caused due to theft or robbery can be
reduce by increasing security at the workplace which will help to decrease chances of theft in the
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firm. Issues related to customer loss can be reduced by giving them right and good customer
services which will help to retain customers ultimately which will help to develop sales and
maximise profits. Travel corner company is using all these above mitigation techniques to handle
such financial risks (Cokins., 2017).
Restricted use of internet and securing data with high privacy:
Cyber-Security risks can be mitigated by protected and restricted use of internet which
will help to securing corporate data from leaking. These can also be overcome by securing
passwords and information’s and by using high privacy on the corporate data which can help
reduce chances of hacking important information along with reducing chances of corporate data
leaking to employees or to competitors. Travel corner company can also mitigate such issues by
framing aftermath plans which can deal with such risks.
Ensuring right behaviour and practising continuous conversations regarding brands:
The reputational risks in the Travel corner company can be mitigate by ensuring proper
and good employee behaviour with the customers and by giving them right services. These can
also reduce by continuous participation of the leaders in regular conversations about the brand
that is giving essential and correct details of the brand to the customers. These can also be done
by producing demanded and high quality goods and services, which will develop brand value.
Regular conversations regarding brand can help company to develop a right image in front of
public which will reduce chances of disruption of reputation of the company (Harmon., 2019).
TASK4
Growth strategies employed by organisation for future development and success
Market Penetration Strategy:
Travel corner company should use this strategy on its regular basis to increase its market
share within same market which can be done by lowering cost of the products. This strategy
should be used to sell current products within same markets and to gain large number of
customers. As firm has knowledge about current market hence it will minimise risk of failure and
enterprise will be able to satisfy needs of consumers effectively which will be better for the
growth of organisation.
Market Expansion or Development:
This strategy describes that organisation should introduce its products to new users that is
the new market. This also helps firm to increase number of customers meanwhile sales results in
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increasing revenues. Travel corner should use this strategy for developing its global brand image
and will deal with mass audience.
Product Expansion Strategy:
This strategy explains that outdated or old products should be replaced or modified
within existing market which will help to retain number of loyal customers. Travel corner
company should apply this strategy for attracting new consumers towards the brand and
increasing its revenues.
Growth Through Diversification:
This strategy is quite risky but it is helpful in bringing or introducing something new to
new markets. These strategy shows that selling of new goods and services in the new market.
Travel corner company should develop product and has to expand its market as well, this will
help in attracting new consumers and raising profit of the firm (Wood, and et.al., 2015).
CONCLUSION
From the above study it has been concluded that bank loan is the most effective source of
finance that helps in meeting long term need of business and limit the liability of company. Staff
turn over success factors aids the business in finding new ways to retain staff so that skilled
people work in organisation for longer duration. Company has to emphases of KPI and have to
set its operations accordingly so that it can meet industry standards.
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Illustration 2: Ansoff Matrix, 2019
(Source: Ansoff Matrix, 2019)

REFERENCES:-
Books and Journals
Aithal, P.S., 2017. Industry Analysis–The First Step in Business Management Scholarly
Research. International Journal of Case Studies in Business, IT and Education
(IJCSBE). 1(1). pp.1-13.
Burns, P. and Dewhurst, J., 2016. Small business and entrepreneurship. Macmillan International
Higher Education.
Cokins, G., 2017. Strategic business management: From planning to performance. John Wiley
& Sons.
Erasmus, B., Strydom, J.W. and Rudansky-Kloppers, S., 2016. Introduction to business
management. Oxford University Press Southern Africa.
Harmon, P., 2019. Business process change: a business process management guide for managers
and process professionals. Morgan Kaufmann.
Jenkins, W. and Williamson, D., 2015. Strategic management and business analysis. Routledge.
Kumar, A., 2018. Business process management. Routledge.
Sadgrove, K., 2016. The complete guide to business risk management. Routledge.
Wisniewski, J.W., 2015. Microeconometrics in Business Management. John Wiley & Sons.
Wood, C.R and et.al., 2015. Principles of school business management. R&L Education.
Online
7 sources of start-up financing. 2014. [ONLINE] Available
Through:<https://www.bdc.ca/en/articles-tools/start-buy-business/start-business/pages/
start-up-financing-sources.aspx>
Ansoff Matrix. 2019. [ONLINE] Available
Through:<http://www.quickmba.com/strategy/matrix/ansoff/>
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