Business Strategies for Organization Growth
Implementing Effective Business Plan for Enterprise
Organizations which are having less number of personnel in it are generally termed as small business enterprises. These firms are known for its innovation and ability to fight in intense competition. Small businesses are normally private enterprises in which there are either partnerships or sole proprietorship (What is an SME?, 2014). The tax policy and government support to it differs from nation to nation and also on the type of industry.
Main objective of this study is to identify the strengths and weaknesses of small business enterprises. For this purpose, a real estate firm based in UK, that is, One Vision Housing is being taken (One Vision Housing, 2014). Various measures to overcome negative aspects of this organization will be discussed in this report. Appropriate business plans with suitable actions to be implemented with improvements will also be in focus.
One Vision Housing is having various positive and negative aspects with it like any other organization. It can be explained by the following ways:
Lack of finance – For performing operations, this organization sometimes feels difficulty to manage funds for that. In fact, like large corporations, this firm does not get the loan easily. As a selling tool, it is not possible for organization to use credit cards.
Difficulty in staffing – As One Vision Housing is a small business enterprise, it is not having very attractive salaries like other big firms; it is difficult to recruit people for required positions (Olufisayo, 2014). Due to the reason that they are not being given with higher opportunities and also there is no big scope to earn more, organization cannot hire people as it desires.
High direct cost – In large corporations, as raw material has to be purchased in bulk quantities, suppliers provide that in lower cost. But as One Vision Housing is a small business enterprise and has dealings in less capacity, it involves high cost and suppliers are not ready to provide it at low price (Khan, Hussain and Yakub, 2012).
High motivation – In One Vision Housing, there are less number of employees who are working. This is the reason every individual is concerned by the owner personally who shares their ideas and feelings. It is helpful in motivating them to a large extent. They work with the intention of achieving organizational goal with high level of coordination as well as by aligning their personal goals with the firm (Ireland, Hitt and Hoskisson, 2008).
Less bureaucracy – The decision making process in this organization is very fast and do not involve much time. Here, judgments are being made in a better manner than that of large organizations as because of the reason of less number of people; it can focus on this process. Results can also be matched in a quick way as well as in an effective manner (Hutt, Gavieres and Chakraborty, 2007).
In order to analyze the performance of business of One Vision Housing, the analysis on the basis of level customer satisfaction and efficiency and is being used. From 2007 to 2013, through repair services, the satisfaction level of people has increased from 79% to 97%. In order to deal with ASB cases, company has taken various initiatives to increase approval of customers from 49% to 87% (ANNUAL REPORT 12/13, 2014). To improve solving process of complaints made by consumers of the organization, it has adopted various methods so as to satisfy people. The percentage from 2007 to 2013 has increased 45% to 88%. 100% satisfaction level has enhanced through many aids and adaption services in 2013 by One Vision Housing. In terms of gas service, the fulfillment level of customers has also attained 99% in 2013. Decent homes provided by the company plays an important role in satisfying consumers and their satisfaction level is 97% (Poutziouris, and et.al, 2002).
In accordance to efficiency analysis, One Vision Housing has taken some measures to reduce the recurring management cost by 2.8 million pounds. It helped the firm to strengthen its financial inclusion and in 2013, its cost of management is 0.6 million pounds. In order to reinvest into insulation and other energy interventions, company has secured b1.0 million efficiency grants (ANNUAL REPORT 12/13, 2014).
As there are several weaknesses which One Vision Housing is facing, measures to overcome these are also present. Many a times, organization faces the problem of lack of funds in it which restricts its operations and reinvestment plans. For this reason, firm must make the estimate of the finance which is required and also the available funds should be in its knowledge. Different sources from which funds can be arise and that are suitable for the company should be selected in order to raise them (Peltier and Naidu, 2012). Appropriate cash management techniques must be adopted by One Vision Housing so as to handle and allocate cash effectively. One of its major issues is the lack of management skills as organization faces problem in recruiting employees due to unattractive pay structure. For solving this problem, company should focus on its pay structure and try to improve that as if skilled people would come in firm, it will automatically cut the costs and improve the efficiency of operations (King, 2007). This ultimately leads to increase in profits and so as goodwill. As One Vision Housing is a small business enterprise, generally it does not make plans by which complaint for the delay of operations come in front of it. To manage the functions in an effective way and to complete tasks on time, proper planning is required. Lack of information is also one of the areas which need to be concerned. Sometimes firm does not have an idea that what actually is working in it and what is not (Perry and Coetzer, 2009). In this case, key performance indicators must be used so as to know about these areas and it will also help in identifying the challenges and opportunities of organization.
Several ways are there by which the existing performance of One Vision Housing can be maintained as well as improved. Some of the ways are:
Setting goals – When there is a goal which needs to be attained within the stipulated time period, employees would perform with more efforts and in a serious way. There has to be a set objective and guidelines for One Vision Housing to achieve that. It makes people to work in coordination so that the results can be accomplished as they were specified (Tse and Soufani, 2003).
Using high impact marketing – If marketing is ineffective, money can be easily wasted but to spend at low cost is more difficult. In this case, if One Vision Housing uses the high impact marketing at low budget, it will prove to be very beneficial for it as a large amount of money can be saved through this (Morrison and Teixeira, 2004).
Monitoring latest trends - In the present scenario, the world is globalised. This is the reason that changes in tastes and preferences of people are coming rapidly. In order to make business survive, it is necessary to understand these changes and formulate strategies accordingly. Organization has to stay connected with the latest trends and issues.
Motivating staff – For bringing improvements and innovation in business, the most important thing is to make employees motivated. Talented and encouraged people in firm increase the efficiency of work and leads to increase the level of performance (Rae and et.al, 2012). Ultimately the goal of company is achieved on time. Through this, the existing performance of One Vision Housing can be strengthened to a large extent.
For One Vision Housing, there are many opportunities to expand its business in various new areas. Through several ways, it can be done by analyzing the strengths and weaknesses of the organization. With the help of acquisition, company can expand its area of business in which it can acquire another existing firm like in area of construction operating in a different area (Gumede and Rasmussen, 2002). As today’s world is globalised, if this firm acquires another one which belongs to any other nation, it will be beneficial for it to enlarge its scope as well as in increasing its market share. By the way of offering franchisee in different places in form of taking land based contracts, scale of business can be expanded and also it will help in building a rich brand image. Licensing is one more way through which One Vision Housing can make its commerce at a large scale. Here, the intellectual property is given to a third party and earns revenues from that (Lewis and Walker, 2013).
Various business agreements can be established for spreading out all activities of firm with distributors and dealers. It will be helpful in expanding scope of company in new areas. With the support of advertising and other promotional tools as well, new target markets can be captured and dealings can be increased. Furthermore some other measures are there like public stock offerings and employee stock ownership plans. These help the enterprise to develop its business in new areas (Pickernell and et.al, 2013).
One Vision Housing is having various plans for achieving its organizational goals. The main among are to make business survive, to bring development and growth and to earn profits for the firm. In order to earn adequate revenues for company, several plans are there by which profit is maximized. The quality which this organization is providing to its customers is according to the strategies which have been made for this. One major goal of One Vision Housing is to satisfy people with its services (Malinen, 2004). It builds various housing societies for them with superior quality and then sells it so as to earn profits and goodwill as well. Having high market share in this industry is one of its major goals. It also formulates strategies for growing its business like it uses franchisee and acquisitions so as to develop its commerce. In order to make business survive in long run and bring sustainability, it motivate its employees and also by satisfying them (Passerini and et.al, 2012). Organization provides them healthy and safe environment which is able to create their positive attitude and leads to retain them for a long period of time. Ultimately it helps in attaining the goal on time and with efficiency. Innovation plays a vital role in One Vision Housing which catches the attention of people very easily. In order to grab larger market area, innovation helps company the most, for this purpose, various strategies and long term plans are being made (Beaver, 2002).
In existing business plan of One Vision Housing, a variety of strategies are there. All of these are very helpful in making business grow and in earning higher profits. By the help of these plans, organization is able to stay in market for a long duration with stability in its operations. But still some changes are required which can be taken through SMART objectives as the scenario is changing every day (Charantimath, 2006). As company deals in real estate, it has the construction business under it. It builds housing societies for people by using various methods. So to make it more efficient, latest technologies can be used. It will help in creating innovation in products and services both as well as in attracting target customers (Bridge and Neill, 2012). To increase its brand image in market, One Vision Housing should also use some promotional tools like heavy advertising on the basis of its segmentation strategies. If any problem exists, it must frame appropriate solutions for that. The financial statements must be updated on monthly basis so as to further plan accordingly as it shows its profits and losses. In order to compete with other organizations, different marketing strategies should be made and the existing one can be adjusted according to the needed changes (Reid, 2002).
After analyzing the suitable changes which are required to adopt by One Vision Housing, an action plan will be built so as to implement these changes. It involves three steps:
Identifying the needs of business – Organization should give emphasis on its short and long term objectives which it needs to achieve in a specified time period. In the first stage, it is required from the firm to assess its needs based on the goals so as to take appropriate actions. For this purpose, research proves to be very helpful as will provide the exact information by which strategies to implement change can be formulated (Carter and Evans, 2012).
Formulating strategy – In the next step when adequate data is collected, plans have been made accordingly and appropriate measures are taken. In order to accomplish goal of One Vision Housing and to satisfy customers, range of plans is being made here. Then, among various alternatives, the best suitable one is chosen for its implementation to create change in company (Khan, Hussain and Yakub, 2012).
Execution of plan – Last but not the least, in third step, selected strategy is being executed in order to implement change. In this phase, proper coordination among employees and a team spirit is needed at One Vision Housing so as to bring and maintain change in an effective manner. Through this, brand image of the firm can be increased in market as innovation will also be there along with transformation within company (Ireland, Hitt and Hoskisson, 2008).
Changes affect overall performance of One Vision Housing and will leads to improve working method of employees. Technological changes will update overall production flow with speed up in the operational activities. Company will be able to better manage the affair of its clients by using highly equipped information system. It leads to have positive attitude among workers and they work with higher level of motivation (Poutziouris and et.al, 2002). It explores new opportunities for One Vision Housing which encourages it to expand and capture market share with leading position. This helps organization to serve community in better manner with greater profitability. By implementing changes One Vision Housing can better survive in the industry by creating competitive edge. By making changes in working environment and culture of One Vision Housing leads to increase efficiency of employees (Sackett and et.al, 2003). It is because improved work method and good supervision provides sense of achievement among personnel which boost their morale. Therefore changes plays significant role in One Vision Housing and helps to increase volume of the customers as well as sales. It creates goodwill of firm and enhances profitability which enables firm to cover on the whole potential market by satisfying customers to a great extent (Peltier and Naidu, 2012).
Managing changes in the organization is the most important task. In order to manage changes in One Vision Housing, it can follow changes models which help to implement change successfully in organization. For this purpose the first step it takes is unfreezing it helps to remove existing atmosphere so that people who are not willing to accept changes, can be made aware about this. Although at initial stages many people face problems during preparing for changes. Management makes them understand that present way of doing work is not suited and it is not giving profitability so it requires modifications (Perry and Coetzer, 2009). It motivates employees to bring changes in the organization for meeting current requirement.
Second step that can be taken to bring changes is in which employees can seek new ideas for solving problems of One Vision Housing. They can be provided details related to benefits of changes which ensure well being of employees as well as organization. Firm make efforts and communicate to worker regarding the necessity of changes (Tse and Soufani, 2003). In third step One Vision Housing can implement changes by applying changing working condition and different set pattern of skills and behavior required by the worker in that environment. Company will be giving training and organize mutual discussion which helps employees to set in the changing working conditions. Firm provides details of their job description and roles and responsibilities which enable employees to work better for contribute towards achievement of organizational goal (Morrison and Teixeira, 2004). In the third step gives sufficient time and communicates their workers in effective manner which helps to implement changes and it boost morale of employees.
Monitoring the performance after implementation of changes will ensures effectiveness of organization by taking corrective decision on right time. For this purpose One Vision Housing follows Gantt chart for measuring performance of employees for specific period. It provides clear idea regarding effective utilization of resources towards achievement of long as well as short term goal of firm (Rae and et.al, 2012).
This above chart shows overall performance criteria which One Vision Housing has achieved in 12 months. It has observed that firm has obtained its outcomes with the changing working conditions and culture which enables employees to improve their efficiency which can better satisfied customers need (Gumede and Rasmussen, 2002). Implantation of changes in One Vision Housing ensures that there is effective utilization of human as well as financial resources which in turn save cost of the firm. This helps to increase sales of company with greater profitability. Worker are also satisfied with changing working environment and culture which motivate them and build good relationship among all the departments of One Vision Housing (Lewis and Walker, 2013). Thus changes are very beneficial for the growth and better performance of firm which leads to cover large market potential.
From this report, it can be concluded that One Vision Housing is earning attractive profits in market but still require some changes in it so as to sustain its business for a long time period. It is providing quality products to customers which are helpful in maintaining its goodwill in market. For bringing innovation in company, changes bring into it and are explained to employees so as to implement them (Hutt, Gavieres and Chakraborty, 2007). An action plan is being made for this purpose which proves to be very helpful in executing strategies for change. Through this, firm can gain higher profits for its operations and stability as well.
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