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Manage the Development of Small Business Assignment Help
1.1 Assessment of the implication of inflation on burger king’s business operation
In context to the case of burger king, it could be stated that the inflation rate had impacted the business operations to the great extent. It has been identified that the organisation had faced crucial issues and challenges of maintaining the customer base and retain them with the changes. The cost of production had been increased but burger king is unable to increase the consumer costs as it would lead to a greater risk of losing the customers base (Legg.et.al, 2015). Moreover, it is important for burger king to make effective plan and hold the customers along with the profitability.
1.2 Assessment of the implication of interest rate on Sak Strandbag’s business operation
Fluctuation in the interest rates affects the business operations in many ways. In case of Sak Strandbag, the amount loaned by the bank would charge the interest rate of about 10% per month. It would affect the financial condition of the business as it had to pay an additional amount in terms of interest which would be required to enhance the existing profit shares. It would impacts the business operations of Sak Strandbag in majorly three areas such as cash flow, business planning and customer spending and savings. The increased rates of interest makes unaffordable for the organisations desiring to borrow money for their capital and leads them to either pay more or work in the deficiencies.
1.3 Assessment of the implication of unemployment on Max Hamburger Restaurants business operation
Unemployment is been considered as the serious issue of any of the country. It leads towards the decline in the economic condition of the country and do not contributes in any of the developmental acts. With respect to the case of max hamburger restaurant in New Zealand, it could be either an opportunity or a challenge for the restaurant. However, it has been identified that maximum numbers of unemployed candidates are youngsters which could be used as an opportunity for Max to hire them and acquire the best outcomes with their efforts. Younger people are comparatively much energetic and creative which would be beneficial for Max in creating a new brand value and image (Guinigundo, 2015).
1.4 Assessment of the implication of investment spending on the business operation of Salvador’s Kiwi Food and beverages co.
Investment is been considered among one of the most important resources for establishing a business and carrying out the activities towards the achievement of the desires outcome. It is crucial aspect of collective demand in an economy and is also considered one of the key determinants of the economic growth. It mainly includes various purchases such as land, machinery, production, infrastructure, etc. In accordance with the case, it has been seen that with the help of effective investment spending the restaurant would be able to gain higher expansion opportunities and establish its brand at the global levels. Planning for the suitable investment and spending in the right resources would prove to be beneficial for the business to the great extent.
1.5 Assessment of the implication of Business confidence on the business operation of Glossy Pink
Business confidence is basically concerned with the indicator which measures the degree of hopefulness which a businessman feels with respect to the prospects of the company. It has been found that every organisation acquires business confidence which helps in making assumption and planning regarding the business operations. As per the case, it has been identified that due to the optimistic approach of the publishers the Pink magazine provided with a great exposure even in the declining era of the industry. Thus, it reveals the significance of business confidence along with the consumer confidence in a business.
1.6 Assessment of the possible implication of share market fluctuation on business operation of JVR
The fluctuation in the share market creates a real hassle for the small business enterprises. As with the modification in the shares could lead dissatisfactions or influence their trust and confidence on the business. It is very much important for the businesses to focus on the customer loyalty and trust so that to develop a long term relationships and thus the fluctuation in the market could hamper the same to the great extent (Daniels.et.al, 2015). In addition to this, the decline in the market might have a positive impact on the availability of capital for the small businesses and help them conduct their business activities effectively. Moreover, the changes in the tax, policy and investment plan also have significant impact on the operations of JVR as management has to make decision for implementing the changes and forecasting of the issues that can affect the business planning as well the share prices of organization. The organization is considering the market as positive for investment as changes in the market are beneficial for attracting the investors.
1.7 Assessment of implication of different economic indicators to the business operation of Wing Zone:
1.7.1. Credit availability:In case of Wing zone, it would have a negative impact as the entrepreneurs do not acquire any credit history with the banks and would be difficult to avail the desired credits from the same.
1.7.2 Gross domestic products:This is one of the prime indicators which are used for measuring the condition and wellbeing of the economy of the country. It would have an impact on the restaurant. The changes in the GDP have direct impact on the financial planning of the organization and also influence the flow of cash. In addition to this, Wing zone management requires to consider the forecasting facts of government to plan their financial resources.
1.7.3 National income: With the fluctuation in the national income, the business profits and employee compensation would decreases which would thus impact the functionalities of Wing Zone.
1.7.4 Money supply:The supply of money is the most important aspect and helps in enhancing the growth and reducing the unemployment of the economy (Williams, 2015). Thus, it regulates the organisation to control and manage the supply of money and contribute in the economy.
1.7.5 International trade:It provides with the greater opportunities for the business to expand the operation and gain higher profits. For Wing zone participation in the international trade facilities is more beneficial for expanding the business and establishing the positive brand image. This could further increase the sales of the organization and would result in increased profits and cash flow.
1.7.6 International share market fluctuation:This would have a direct impact on Wing Zone if the organisation intends to expand its operations and also impact the government as well.
1.7.7 Currency fluctuation:This is the most important aspect which could affect the business of Wing Zone as with the fluctuation in currency the cost of production and the products in the market.
1.7.8 Balance of payments: It would impacts the financial leverage and operating income of the business which leads to the reduction in the reserves. The organization may not make the decision for investment for developing the business as the balance of payment requires. The critical assessment of payment and cash flow influence the process of financial planning of Wing zone.
2.1 Impact of disposable income on business
With the increase in disposable income, the Boston Beer Company can expand its business operation by setting up more breweries which will increase the production capacity of the company which will help to meet the increasing demand of the people. With the increase in income, Boston Beer Company can invest in marketing the products which will help in increasing the demand for the products.
2.2 Impact of population trends on business
The population trend shows that people between age of 50 and 64 accounts for 30% of wine consumption. Boston Beer Company should focus on this segment and launch new products as per the customer expectation and gain more market share.
The youth account for only 6% of sale. Most of the youths are interested in RTD (ready to drink). The company needs to plan to launch new RTD products which are liked by the youth. Company may also look to promote its wine products among youth by using marketing strategies.
2.3 Impact of Building permits on business
The impact of building permits impacts the designs and construction of breweries. The organisation has to make sure that the construction of the breweries is done as per the guidelines.
2.4 Impact of business surveys on business
The business survey reveals that the retailers have a major impact on the decisions of the customer. If the retailers do not recommend the products of Boston Beer Company, the sales of the company would be reduced. The company needs to make sure that the retailers have fair knowledge about the company’s product and are in good terms..
2.5 Impact of specialist trends on business
There is a trend in the industry by which the consumers buy the wine on the basis of the number of medals a wine has won. As a result the Boston Beer Company needs to participate in wine competitions and can showcase the medals on its products which will increase the sales of the organisation.
3.1 Assessment of the implication of whanau, hapu and iwi to the business operation of Biofarm products Ltd.
Whanau is basically referred to the Maori who mutually shares the ancestry and the kinship along with the collective interest which generates and seeks to have remarkable growth. These are been represented as the group of people which works together and provides them with the immense sense of pride and profit to the business. It has been found that Biofarm had been facilitated in various ways with the help of the Maori culture and have emerged with the diversified practices of business among the people. The business organisation mainly utilises the elements of the Maori culture in its business model which helps in facing each and every situation at the workplace and helps in reducing the stress and conflicts as well (Hatten, T.S., 2015). It addition to this, it has been also found that the business treats the employees as family which helps them motivate and engage in the work and lead to the higher production and profitability level. Whanua, hapu and iwi are basically the principles of Maori culture and impact the business at large. Moreover, Biofarm products Ltd. identifies the principles of diversity, interdependence and balance within the business operation and gains sustainability based on the sound social, cultural and the economic principles.
Business life cycle
Table 1: Business life cycle
Small business life cycle
Characteristics of the business activity during this cycle
Description of the business activities undertaken
Short and long range plan
Development of the small business framework
Here the business is at the initial stage
The activities like determining the business idea, market research, etc. are carried out
Effective market information and research would help
Accomplish the basic goal of establishing the business
The business starts with the idea
Manage the capital, identify customer expectation (Brustbauer, 2016)
Proper financial management and resource allocation must be done
To gain customer trust and value in the market
Growth or survival
At this level the business starts generating the revenue and grab customers
More improvements are brought in the business
Business management techniques must be used
To generate adequate cash to break even and cover the capital
Expansion or rapid growth
Here, the business reaches to the maximum level of success
Strives hard to meet the market competition
Effective marketing model and sales operation
To move into new markets
The business is at the top of the industry
Initiates to sustain in the market
Competitive strategies could be used
Either to expand or to move back with a exit strategy
The sales and profits of business is reduced consistently
Business strives hard to increase sales by introducing offers and launching new products
New product or services should be launched considering the market perspective
Use effective marketing and positioning strategy to increase the sales. As a long term strategy launch new products and services as per the customer expectation and requirement
5.1 Different problem solving techniques
Every organisation acquires various work based problem which has to be solved with the effective techniques so that to avoid any kind of loses. It has been identified that the most effective techniques which could be used for identifying and defining the business problem is the problem identification research and the employee reviews. These would help in evaluating the current position of the business and identify the relevant issues of the same. It is very much important to find out the problems and solve it effectively (Cameron and McCarthy, 2015). However, the management could implement effective problem solving techniques to the business like communicating with the employees, evaluating the problem and reaching the best suitable decisions.
5.2 Decision making techniques
In order to be on track and achieve the desired outcomes, it is very much important for the businesses to make effective decision and implement the relevant techniques. It has been seen that with the help of effective decision making process, the business organisation are tend to achieve their goals more effectively as compared to the unmanaged one. There are wide ranges of decision making techniques which would helps in deciding about the best suitable option for solving the problem. The techniques are:
5.2.1 Break-even: Evaluating the break even would help an organisation to make effective decisions and with respect to the activities to run a business in order to make the desired profits. It has been found that with the help of break even analysis, the business would be able to identify the actual procedures of running a business along with its drawbacks and thus would be able to overcome with the issues.
5.2.2 Decision tree: It basically helps the management in analysing the future alternatives. The tree develops a visual presentation of all the prospective results and the follow-up decision for a single solution.
5.2.3 Payoff approach: With the help of this approach, the management would be able to identify the specific probable value of various alternatives based on the diversified outcomes with respect to the problem (Ferrell and Fraedrich, 2015).
5.2.4 Professional assistance: Professional assistance could be considered an effective approach where the expertise in the particular field would help in making decision for the problem solving technique on the basis of its experience and knowledge. This approach acquires higher rates of possibilities of having effective outcome.
5.2.5 Group decision making: This act basically involves large number of people having different opinions which helps in attaining diversified concepts and ideas and lead towards an effective decision.
5.2.6 Cultural consensus methods:The theory mainly depends upon the framework which helps in measuring and evaluating the beliefs as cultural aspects. The model mainly guides with the aggregation of responses from the people to predict the solution based on the culture and individual competences.
5.3 Strategies for making decision and appropriate action
5.3.1 Maori owned and operated business
The Maori owned business is basically regulated and predominantly staffed by Maori. Classically, the business would be entirely focused on the values and culture of Maori and tikanga. It has been found that many of the businesses follows the Maori culture, tradition and values along with the advanced technologies and techniques. The Maori owned and operated business mainly includes multiple bottom lines, Risk minimisation strategies, joint ventures, management of the collectively owned businesses, etc (Reid.et.al, 2016). These characteristics helps in making decisions based on the cultural and ethical views and are thus wholly based on the Maori principles. The strategies
5.3.2. Asian owned and operated business
The Asian owned and operated business is largely known for its effective business operations which are carried out on the basis of cultural principles and values. It has been recognised that it has helped in the growth of the ethnic economies and establish values in terms of business practices. Along with this, this sector records the majority of self owned businesses which emphasis on their different cultural and ethical values in the business.
With the help of both cultural dimensions of businesses, the organisation could establish various strategies which would help in making effective strategies could be formulated. Considering the cultural and ethnic approaches, the business could make use of the pros and cons of the problem and make the relevant solution. Additionally, another strategy could be ensuring the involvement of the realistic views and making practical implementation of the issues would help in making the decisions appropriately.
5.4 Techniques and approaches to be applied to specific business problems
5.4.1 Owners who cannot get out of their own way:
This is the common issues being identified in the businesses which must be resolved at the initial levels so that to avoid any of the risks at the workplace. In order to overcome with this, the owner must interact with its colleagues or subordinates who would help in attaining the diversified ideas and opinion which might lead to the solutions. In many of the cases it has been found that even experts could not solve the issues which could be solved by involving others in it.
5.4.2 Out of control growth
This act mainly results in a drastic decline of the business activities as in the lieu of getting more benefits the owners expand their operations which are out of their controls and thus leads to the downfall. With the intention to avoid these issues, it is very much important for the organisation to carry out a market research and so that to evaluate the prospective aspects of the related concern (Thørnblad.et.al, 2016).
5.4.3 Operational efficiencies
It is very much important to evaluate the effectiveness and efficiencies of the operations in the business. The business must acquire a stable financial guidance along with the proficiency so that to organise and plan the operation properly.
5.4.4 Dysfunctional management
Every organisation must have a focused vision and mission which helps in reaching the desired levels of success. The organisation must make use of the strategic management process which would helps in making the plans and organise the activities effectively. The employees must be communicated with the information about the set objectives and goals along with the vision of the business so that to make them work accordingly.
5.4.5 A declining market
This particular problem could lead a business towards massive losses and even closures. However, in case of market decline the business organisations must make use of the end game strategy where the best appropriate option is been selected to sustain the business or either end to it. The organisation could move towards the mergers and acquisition or a competitive strategy which would lead to sustain even in a declining market.
Books and journals:
Brustbauer, J., 2016. Enterprise risk management in SMEs: Towards a structural model. International Small Business Journal, 34(1), pp.70-85.
Cameron, F. and McCarthy, C., 2015. Two anthropological assemblages: New Zealand museums, Native policy, and M?ori ‘culture areas’ and ‘adaptation’. Museum and Society, 13(1), pp.88-106.
Daniels, J.P., Mazumder, S. and VanHoose, D.D., 2015. Implications of Globalization for the Output-inflation Relationship: an Assessment. Open Economies Review, 26(1), pp.39-60.
Ferrell, O.C. and Fraedrich, J., 2015. Business ethics: Ethical decision making & cases. Nelson Education.
Guinigundo, D.C., 2015. Increased financial intermediation in the Philippines: some implications for monetary policy. BIS Paper, (83q).
Hatten, T.S., 2015. Small business management: Entrepreneurship and beyond. Nelson Education.
Legg, S.J., Olsen, K.B., Laird, I.S. and Hasle, P., 2015. Managing safety in small and medium enterprises. Safety Science, 71, pp.189-196.
Reid, J., Varona, G., Fisher, M. and Smith, C., 2016. Understanding Maori ‘lived’culture to determine cultural connectedness and wellbeing. Journal of Population Research, 33(1), pp.31-49.
Thørnblad, R., Strandbu, A., Holtan, A. and Jenssen, T., 2015. Family group conferences: from Maori culture to decision-making model in work with late modern families in Norway. European Journal of Social Work, pp.1-12.
Williams, J.C., 2015. The decline in the natural rate of interest. Business Economics, 50(2), pp.57-60.