-471170-1060450 Qualification

Qualification: Higher Certificate in Business Management
Module code: COBU011 Module name: Business Management
Assignment title: Managing Small Businesses
Date: 6 March 2018 Submission date: 4 May 2018
Student Name: Evandre Bock
Student Number: 3MPCRPM39

Question 1:
Small business try and contribute and mainly are job creation, promotion of entrepreneurship, and to mention social stability
A small organisation focuses more on their employees and satisfying them but don’t have much capital, where big business is more capital intensive. Meaning it produces more work with little money than all the big companies do. People that got fired tend to start their own little business once they get retrenched from the big organisations. Each new small business or organisation that is built, help employs people to help run it, creating more jobs for the community it’s situated in. The world’s most economic activity comes from small businesses.

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Promotion of entrepreneurship, not every small business that is established grows up and be an entrepreneurial business. It takes time and what you put out to prove whether or not you have the skillset or know how to run a business is a candidate to become a successful entrepreneur. Businesses grow and contribute to the economy by owners excelling in thinking new ideas that lets the business grow. Many entrepreneurs start small and grow bigger.

Small business helps the locals in the community to create jobs to pay tax and buy food for their family and buy all the resources they need. If the people in the community are employed they can take care of themselves, and it brings an income to the community and better the way they live in.

Many small businesses also are able to respond to the environment and quick to respond to the changing economic climate. This is due to the fact that small businesses are often very customer-oriented. Many local customers will remain loyal to their favourite small businesses in the midst of an economic crisis. This loyalty means that small businesses are often able to stay afloat during tough times, which can further strengthen local economies. Small businesses also accumulate less revenue than larger corporations, meaning they may have less to lose in times of economic crisis. (https://study.com/academy/lesson/internal-and-external-environments-of-business-lesson-quiz.html)
Firstly, the micro or market environments is in control of the organisation and it’s known to be the decision-making environment, everything in the organisation can be controlled, whereas the macro environment includes all the forces in the organisation where they can’t control what happens to the business, but you can react to them once they come
Firstly, a business has to know its strengths and weaknesses, the strength are what the business are good at and excel which they should exploit, and weakness are where the factors that in the organisation needs to be improved if they want to remain competitive.

A vision and mission statement is needed, a vision statement is a dream or ambition where you see your business going and a mission statement is a statement that states how the vision will be achieved.

But a business also requires objectives and goals, where goals are your main target where your organisation tries to achieve whereas the objectives your business has to do are smaller and more specific targets for your business to reach your goal.

Understanding your business culture, ethics, and ethics, but the culture implies that the business belief and values form its identity
Managing of business diversity states that you have to respect other people in workplace religions and their differences in the workplace.

Ethical behaviours follows the principles of right and wrong in a business, it’s the set of morals that describe what is right and what is wrong for a business.

A threat comes in the external environment, and it exposes the lack of resources in the organisation, expertise or contingency planning.

Opportunities comes when you see a gap in the environment and that the environementThe market environment is important because it’s unique, every organisation has its customers, competitors, distributors, suppliers and employees.

Customers are the most important factor and they consist of individuals and groups who buy the good and services the organisation provides. Without customers, an organisation won’t survive because nobody would buy the product or service they providing causing the business not to make money, managers must ensure they provide cheaper or better-quality goods or services from the demands of customers to satisfy them and to meet their needs.

Competitors are an organisation that produces the same or similar product and want to take your market share away from you. Basically they’re competing for the same customer customers, and they obtain the same or similar resources. If competitors take your customers from you, then you will be left with no business to run or continue.

Distributors are organisations that agrees with suppliers for their deliveries of goods and services, it requires specialist for their knowledge and skills that are not available in an organisation.
Suppliers provide the resources for organisations to run, if your suppliers fail to deliver your product or bad quality of it, you will lose customers and then get bad reviews from them leading you to run out of business.

Labour forces is the most important asset to an organisation, in this way it must be appropriately supported and looked after. Work drive is the main asset with the ability to consolidate different assets of association so merchandise and enterprises can be created. If your employees has a bad mood, they can perform badly that is why you try and keep them happy at all times so they can perform at their best.

The macro environment or external environment are the forces the organisation cannot control so they have to react to it, this includes economic factors, technological, Political-legal, demographic and culture, international and ecosystem factors.

Economic are the factors that affect the vitality and health of the organisation which it operates it. The economic issues are taxes, inflation, foreign exchange rates, wages, cost of acquiring raw materials, etc.

Technological factors includes in the organisation that transform its inputs into outputs. It plays a key role on showing us the decision-making process, since you can use gadgets like computers to monitor the big amounts of info very quickly allowing manager decisions more accurate.

Political-legal relationships are between the organisation and government, which government provides the framework which in business should operate. This applies to organisational goods and services they’re providing, and such legal forces directly affect the way in which organisations run.

Demographical and culture, social components portray the idea of a specific populace gathering. This organisation includes age, race, gender etc.

International factors are affected all the South African. Trends and international markets impact organisations threats and opportunities.

Ecosystem factors global warning and many other environmental concerns such as pollution, which is altering customers who buy these products. (https://study.com/academy/lesson/internal-and-external-environments-of-business-lesson-quiz.html)
Question 2:

(http://roico.com/2015/06/04/the-9-steps-of-strategic-planning/) ( reference for 2.1)
2.2)David has to analyse all the work that has to be done for Now Now, so David has to assign responsibilities to all of his employees, without everyone being organising their responsibilities there would be confusion in the workplace , and some of the tasks can be copied and some won’t not be done at all.

It allocates accountability, if the employees and their departments in the organisation know that they are going to be responsible for all their actions and then immediately they will perform better if they are going to be held liable.

It establishes channels of communication, if the organisations structure is clear and proper, the employees will be aware of all the correct channels to follow through the different levels of the organisation
Organising allocates the resources in the business, if the employees are organised into department in the organisation, managers can allocate the necessary resources to the different departments or unit so unnecessary resources won’t be used
If the organisation is organized, it would improve the employees teamwork and synergy, therefore, the different units and departments for Now Now have to work together to achieve all the organisational goals and objectives.

The organisational design helps Now Now identify the activities, and organising the activities into departments, Now Now identifying the activities is the first step in the organisational design process, it involves an analysis of the business, thus meaning breaking up the work, structures and processes in the organisation and groups them so the employees can work well together. What has to be done in Now Now will have to be divided into specific tasks.

Organising the activities into departments follows the identification of activities organises the activities in the organisation into specific departments, this is called departmentalisation, meaning it involves dividing activities into related groups such as functional departmentalisation, geographic departmentalisation, product departmentalisation and customer departmentalisation.

Functional departmentalisation it groups employees in their area of expertise and provide the resources that are needed for performing the tasks. This type of departmentalisation promotes skill specialisation which is an advantage.

Geographic departmentalisation divides organisations up where work is carried out, which geographical markets where the business functions. All functions for a geographical area are grouped at one location, under the control of one manager. Advantages of geographical departmentalisation is that each manager is aware of the customers’ problems and can solve them within the context of that specific area.

Product departmentalisation entails that major product line is under control of a manager who specializes in that specific product. The advantage is that managers and employers focus on one product, allowing them to reach maximum knowledge of that product so they can focus more on customer satisfaction.

Customer Departmentalisation is used when business builds itself up by the customers its serves and managers wishes to focus on those customers. The main advantage is that it enables manager to identify business’s key customer which allows more customer needs.

Job designing is the 3rd step of the organisational design, which involves the designing of jobs. It’s the combining of individual task to create a form of job so the business will be enabling to achieve its objectives.

Job specialisation is narrowing down activities to uncomplicated people and repetitive routines, while job expansion means less work but more complicated.

Job rotation means swapping employees around so Now Now employees can be kept busy. Job enlargement means giving more duties and responsibility so if Now Now decides to give employees more work and responsibility they will perform better. There must be a job description available in Now Now so their employees would know what to do and is expected from them. (https://hbr.org/2011/02/the-importance-of-organization)
Kotler, P and Keller, K 2009. Marketing Management:
Analysis, Planning, Implementation and Control.13th ed. Englewood Cliffs: Prentice Hall.



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