Business Analysis assignment PDF

Preview

Summary

AIBAX3A Business Analysis Assignment Name: Hamilton Setende Student Number: 207063303 2009 TCHISSOLA SHOP CAFÉ 2 H f f Setende 207063303 Business Analysis 3.1 THE ANALYTICAL PROCESS Preliminary Corporate Analysis What product and markets does this organization supply or serve? This organization func...

Description

AIBAX3A

Business Analysis Assignment Name: Hamilton Setende Student Number: 207063303

2009

TCHISSOLA SHOP CAFÉ

2

H f f Setende 207063303 Business Analysis 3.1

THE ANALYTICAL PROCESS Preliminary Corporate Analysis What product and markets does this organization supply or serve? This organization functions both as a mini shop, restaurant and we also have a pot for entertainment. Being that those are our functions we conclude that we provide both a product and a service. The product provided are the typical products found in supermarkets, and shops of the same kind as our own, products such as: food, household items such as cleaning material, appliances etc, school material, and a variety of other items. The restaurant part can be considered as a service, being that we provide a catering service to the clients that come to the restaurant and also can be considered a product, this being the food that these clients eat. Another service that we provide is the entertainment nights where upcoming artist are invited to perform and entertain our clients and also we have our karaoke nights where our customers are invited to provide the entertainment. FORMAL ORGANIZATIONAL STUCTURE  This business is a SBE (small business Enterprise), meaning it is an independently owned business, a business owned by and managed by its owner, in this case being myself. Being the owner means that I am fully responsible for the business, financing, success and failure.  Skilled and professional workers are employed and because it is a small business environment, a good and close relation is established and maintained between myself the owner and the employees.  What is the financial and business performance of the organization?

 Being that our business is just starting, it has a stable moderate performance; the aim is to create a good stable foundation to build a good and successful business.  The starting capital has been contributed by me the owner of the business and with that the aim of our business and my aim and goals for the business is to attain a profitable operation. Who are the stakeholders of the organization?

 The stakeholders are the people who have an interest in the business, suppliers, customers, the owner and employees.  The main stakeholders is myself the owner, I have financial interest on the business and want it to succeed. 2

3

H f f Setende 207063303 Business Analysis 3.1

 The customers are the consumers; they are the people that our business has to provide service to and products and satisfy, so that in turn, they will contribute monetary to the business by buying and consuming our products, and using our services.  The suppliers have a business relationship with the organization, they provide or supply the products the business sells and our business pays them for those products and the delivery of those products in good quality. Individual business Analysis Who are the consumers of the unit’s goods and services?

 As a start, our aim is to provide products to provide products to our own community, so our consumers are everyday people in our community. Why do our customers choose our products?

 Our customers buy our products, because we provide good quality products and we also provide great service, and the customers have learnt to trust us to provide them the best goods and services with a smile on the face of our works. Do the business key players have a coherent version of what they want the business to be medium and long term?

 The key players of the organization being myself the owner, I am also the main stakeholder of the organization, the medium term objective is to create a stable and well financed business that will provide a good service and products to its customers with the aim of reaching the long term objective of having a profitable self sufficient business.

Swot Analysis Strengths

 Being that this is a small business enterprise, one of the strengths of the business is that, very close ties can be formed or can be developed between the customer and the business, customers have a close relation with us and thus are able to provide feedback on the business services and products, helping the business improve, and create a brand name.  Easy to adapt to changing conditions because the owner being the main decision maker of the business, decisions can be taken quickly and effectively.  There is also a personal control relationship between the owner and the employees. 3

4

H f f Setende 207063303 Business Analysis 3.1

Weakness  There may sometimes be lack of sufficient funds, because capital is limited to the money The owner contributes to the business or borrows from financial institutions, so availability of funds for expansion is often insufficient.  The continuity of the business might sometimes depend on the life and good health of the owner, unless a qualified person is trained and appointed by the owner in case I am not available, or not able take full control of the business, then the business life-span may be linked to the owners life span.  Heavy reliance on the owners to manage the business enterprise. Opportunities  There are always a lot of opportunities in the market, being that our business functions as a mini supermarket, restaurant and entertainment spot, there is few competition, because few business have the same range of activities and so customers will easily choose us as their favourite service and product provider.  Our customers are ready to spend for the quality service and products we provide. Threats

 Our threats are the competion, such as new entrants, who are capable of analysing our success and structure their business operations to better ours. There is also the threat o existing competitors who are already in the market, well established and can deal better with the threats we pose to them and they have the expertise and the financial structure to pose a big threat to us.  Our business and our competitors maintain a fierce competition for customers, the best suppliers and the best products an also have the best service.

Firm Analysis Tchissola shop cafe` can be called a multi service and product provider being that our business has various functions, we work as a restaurant, mini supermarket and also provide entertainment. We are subject to increasing competition from other business that provide one of our product and service range. To keep us ahead of the competition we must always do our market research and always be aware of how our competitions are functioning. We are planning in the near future to expand our operations and we hope to have more Tchissolas spread throughout various communities in the country. 4

5

H f f Setende 207063303 Business Analysis 3.1

We are in the process of buying land in order to achieve this objective and crash the competition. We also plan to create more mechanism to bring our customers closer and develop greater personal contact between the business and customers. This is way to capitalize on one of our strengths which is the close ties we have with our customers, we hope with this plan, the customer fell like the business considers them important and it will translate to customer appreciation and they will continue to consume our products, it will also allow us to improve our operation by analysing the customers feedback. We also want to spend money to provide workshops and training to our employees to improve the way they work and improve our. We want to maintain good relation with financial institutions, because we will need them for financing expansion and our resources.

Potters five forces 1. Threat of substitute product In many cases we find that our consumers have certain preferences and in sometimes we might not be able to provided than with product they prepare, because we do not have them, in these cases, we sometimes have to get these products from our competitors and we look for those competitors who change less, so that we do not affect our customers by offering a product in a reasonable price for them and for us to still make a profit and also in a price that would not make than turn to our competitors. 2. Threat of new entrants To fight off the threat of new entrants, we plan to provide a very organised and planned service, order to create a brand name, where customers would communicate to others about services. We will work a lot in our advertising, to create awareness of our operations and products. 3. The power of suppliers We count on our business buying power to get the best products. We also try to have a great relationship with our suppliers, so that we can have first choice of products. 4. Rivalry amongst industry members. In the mini market industry, competition is very high and we try to always be ahead of our competitors, 5

6

H f f Setende 207063303 Business Analysis 3.1

Especially with these economic crises, customers are buying less and competition is higher and the organization with the best competitive prices gets the customers.

SLATTER’S FACTORS THAT CAUSE A FIRM TO DECLINE  Poor management Management is responsible for motivating the workers to do their work at the best way possible and maximize the potential of the business. The people in management should be skilled and cable of making sound decisions that affect positively the business; if management is not good then the organization fails.

 Inadequate financial Control Adequate financial control must be established, these controls will set certain standards, cost reducing measures have to be taken to keep financial expenditure down, identifying most important task that will receive the most money. There should be comparisons of previous year’s performance in order to check how the business is functioning financially and to check if there are any deviations and if so take corrective action.

 High cost structures Cost must be reduced, we must keep our high costs to a minimal by, implementing less expensive activities, and we must look at the best suppliers with the least expensive costs, we should reduce costs but not compromise the quality of our products and services.

 Poor marketing Marketing is our most important tool to pass awareness of our business to customers, and so time and money have to be invested into the marketing activities, in away that are satisfying and reasonable to everyone. We plan to research the market and come up with the best ways to get our message across

 Big project Acquisition Big projects must only be taken up when, necessary, because they take time, money and a lot of effort. When capital is right we plan to undertake a few big projects because they will help with the business.

 Competitive weakness 6

7

H f f Setende 207063303 Business Analysis 3.1

Analyzing the competition is very important, because so that business strategies can be developed to fight against them. A company should always be looking for different services or substitute services to be ahead of the competition, and a company should always be ahead in terms of technological advances to be competitive, and not become outdated.

 Financial policies Financial policies are very important to run a business, the business’s financial position should always be considered before any thing else, a business cannot acquire anything, like fixed assets before considering the financial position of the business, you should consider the quantity of fixed assets required as well as their purchase price, and also which option will be the cheapest with regard to or of a fixed asset.

Strategic Choices at the corporate levels  Business Closure Business closure is something that is very far of our minds, as I started the business I had very focused goals in mind, to create a well rune and successful business and I am focused in attaining those goals, before thinking of closure, but there might be various factors that could affect the business performance and eventually lead to closure. Business Disposal

 This is another topic that goes against the goals and objectives that I have for my business. Business Acquisition

 As stayed before, the financing and acquisition of the business and any other assets by the business is solely done by me, the owner of the business,, and this money is acquired through other business ventures that I have and through loans Business Re-organization

 My plans, goals and objectives for the business are to establish a brand in our target market, and once that has been accomplished; I plan to reorganize it by expending to other markets. Business Start-up

 All start up costs etc are covered by myself the owner of the business. 7

8

H f f Setende 207063303 Business Analysis 3.1

The Resource-based perspectives required for competitive advantages by Peteraf (1993) 1. 2. 3. 4.

There is heterogeneity of resources across firm The acquisition price of assets must allow for future profits It ha to be difficult/impossible for competitors to imitate or substitute profit-yielding resources Resources should be specific to the firm such that they cannot be traded.

 The resources possessed by the business, can create a competitive advantage, if they can fulfills customer’s need better than the resources of competitors. So it is important to always check your competitors, and develop a competitor profiles and compare them with our business in order to better access our competitiveness position. This helps the organization to set better goals and see how it is heading.

SPACE (Strategic Position and Action Evaluation)  We use space to determine the business options at business unit and product level. In here we look at the financial strengths of the business and the industry it is in. we also look at the stability of business environment and competitive of the business checking the advantage the business against its competitors.

CAMPBELL’S SUCCESSFUL ORGANIZATIONS RELATIONSHIP  Strategic planning relationship We use Strategic planning to determine our short and long-term objectives, to check what are our strengths and weaknesses and analyze the available opportunities that we can capitalize on and the threats that might brig us down. We also use it to predicting future trends, and to project the need for new products and services, it helps with identifying future lucrative projects.

 Financial control relationship The use of financial indicators to show how the business is performing, if it is being profitable or not, and give an indication of which areas to tackle to get better and have a profitable operation, which is the objective of the business. Refer to profitability, which is the ultimate goal of any profit-maximizing organization.

 Strategic control relationship 8

9

H f f Setende 207063303 Business Analysis 3.1

 This strategy is about identifying the problems or the changes and doing the needed adjustments We have to make these strategic actions as they occur and although the results may only show later on.

TYPES OF ORGANIZATIONAL ACTIVITIES BY HANDY (1993) 1. Steady-state Activities Being a service provider, we do not manufacture our own products; our steady activities are, taking account of stock, something that we do everyday after we finish our operations, so that we manage to have enough products to always provide to our customers. We also do accounting of the money that comes into the business from everyday sales. 2. Innovation Activities  There is always room for innovation and doing new things, we try every month to find new strategies of how we will present our product to our customers, marketing strategies are always important and we bring our client input. 3. Crisis Activities  Things that occur and may be out of the control of the business, and strategies are created to deal with these things. 4. Policy Making Activities  These activities are carried out by the owner, and some other management stuff appointed by the owner in his absence.

LIFE STAGES ACCORDING TO GREINER  Early growth Tchissola is an upcoming mini supermarket and restaurant, created on the 21st of January 2009, With the main goal to provide its products and services to its target market in an effective manner and in long term expand its operations in to other markets.

9

10

H f f Setende 207063303 Business Analysis 3.1

References New Business Economics 2000 grade 12 By: F.R. L.N. Eksteen H. R, Miller S.Y.Ledwaba F.R.L Eksteen

Strategic Management and Business Analysis By: David Williamson Wyn Jenkins Peter Cooke Keith Michael Moreton The four big questions you have to ask Page, 3,18,26,32. Firm Pages, 26, 27,2,29 TYPES OF ORGANIZATIONAL ACTIVITIES BY HANDY (1993) Pages: 49, 50 LIFE STAGES ACCORDING TO GREINER Pages: 52 Strategic Choices at the corporate levels Pages: 18, 19

10

11

H f f Setende 207063303 Business Analysis 3.1

CONTENTS THE ANALYTICAL PROCESS……………… PAGE 2, 3 Swot Analysis………………………………………PAGE 3, 4 Firm Analysis………………………………………...PAGE 4, 5 Potters five forces……………………….....................PAGE 5 SLATTER’S FACTORS THAT CAUSE A FIRM TO DECLINE …PAGE 6, 7

Strategic Choices at the corporate levels………………PAGE 7 The Resource-based perspectives required for competitive advantages by Peteraf (1993)…………………………………………….PAGE 8 SPACE (Strategic Position and Action Evaluation)……………..PAGE 8 CAMPBELL’S SUCCESSFUL ORGANIZATIONS RELATIONSHIP………………………………………………….PAGE8 TYPES OF ORGANIZATIONAL ACTIVITIES BY HANDY (1993) …………………...………………………………………………PAGE9 LIFE STAGES ACCORDING TO GREINER………………….PAGE9

11

12

H f f Setende 207063303 Business Analysis 3.1

12...