Under the section, performances are measured under the following characteristics or element: * Level of output- is it below expectations or above expectation? Is there any deviation between planned results or actual results? * The profitability of the organisation.Here, performance is measured by taking into accounts the following elements: * The level of overtime spent by the individual beyond the normal time. * How efficient and effective is the work force or individual efficiency and effectiveness takes into account performing a task within a shorter period, competency reduction in errors and mistakes * The output and the time frame required.* The level of punctuality and commitment of the work force towards meeting objectives and goals. * The meeting of a bench-mark or a yardstick set by the organisation or management.Customers will often pay a premium for personalized attention. In many companies where products and prices differences are minimal, the human factor emerges as a prime competitive advantage. Greater Motivation.Business Key management of small enterprise normally consists of the owner(s). They work harder, longer and with more personal involvement. Profits and losses have more meaning to them than salaries and bonuses have to the employees of a multinational company. Greater Flexibility.A small enterprise has the prime advantage of flexibility. Big company cannot stop operation without opposition from organized labor, or even increase price of their products without possible intervention from government. Small enterprises have shorter lines of communication. Their product lines are narrow, their market limited and their factories and warehouses are close by. They can quickly spot trouble or opportunity and take appropriate action. Less bureaucracy.In small business the whole problem can be understood readily, decision can be taken quickly and the results checked easily. But in a multinational company, bogus management structure can lead to delay in taken action and bureaucratic influences. – Unobtrusive (Less Conspicuous).Small company can try new sales tactics or introduce new products without attracting undue attention or opposition. This is possible because it is not quite as noticeable as multinational company. Large company is constantly faced with proxy battles, antitrust actions and government regulations. It is also inflexible and hard to change or restructure.
Weaknesses of small business enterprise
The location of my shop is very bad. During the rainy season, there are massive pools of water and cars rarely want to come around that area, therefore, I hardly have any clients during that period. Attitude, The attitude of my staff towards a client is excellent but they hardly come to work. If they ever show up, it’s never on time. I have to always call them and wake them up before they come to work and the absenteeism is very rampant. It is always one excuse or the other. Management style . The management style I use in my salon is laissez faire. I offer no or very little guidance to my staff, amidst leaving them to make decisions on their own. As much as it could be overtly effective in those situations where most employees or members happen to be highly qualified and skilful in their area of experience, it has often led to poor roles definition plus a sheer lack in motivation. Quality of products , I use very poor quality products in my saloon. I buy the cheap things so as to
get more profit at the end of the day. The shampoo and hair lotions I use have very poor quality thereby destroying my clients hair. This therefore discourages them to come back to my saloon. External Opportunities and Threats.
Situational analyses consider opportunities and threats from the external environment. External opportunities include things such as gaps in the market that no company is currently serving, new markets and other clear growth opportunities. External threats include new product releases from competitors and new competitors arising in the market. A range of external factors can present either opportunities or threats, depending on the specifics. Changes in the law, for example, can provide distinct opportunities to some businesses in an industry while threatening the survival of others. Changing consumer preferences and market-changing new product categories, as another example, can give new entrepreneurs a world of opportunities while seriously threatening established brands.
RECOMMENDATIONS TO OVERCOME WEAKNESSES
Lack of experience. Not everyone is cut out to be an entrepreneur. Analyze the strength and weaknesses of starting your own business. It is important for business owners to be self-starters who are good at planning, organizing, and making decisions that can benefit their business in the long-term. It is also important to choose the right business for you; which may not be the most profitable, but the one in which you have the most interest and skill sets. Network with other more experienced business owners online and in your community to obtain feedback on how you can start and maintain a successful enterprise. Poor business location. Knowing your target consumers will help you identify where to best market your products
Goal setting is an essential force in the performance review. The goals that are set within the performance review are based on the findings of the aforementioned sections. This individualized section will provide the employee with steps toward improving their position and success within the company. The goals should include items such as improved attendance, refined metrics adherence and improved accuracy. The goals should be clearly stated and within the employee’s reach.
RE-BRANDING: This has been an opportunity for organisation and marketers. When the product is rebranded, it becomes appealing to new customers. It also creates market penetration by taking a rebranding product to the same contemporary market. This adds value to the organisation in terms of customer confidence, customer retention and company’s image and reputation is bestowed.
REVIEW EXISTING BUSINESS OJECTIVES AND PLANS:
An important part of your business plan is to state what your goals as a company are. If you are a startup, then you’ll want to project out for several years. For instance you would state your current position and where you plan to be in six months, one year, and so on. You’d list your product or services and explain your growth plans for the listed periods. If you’re an existing business, you would show your current position, and then do the same type of projections. A business plan is not a one-time document, at least it shouldn’t be. Most businesses put together a business plan during their start-up phase to organize, attract partners and employees, and to try and get a loan or financial investment. This is a great use of a business plan, however far too often once the company has started up the plan isn’t touched again. Ultimately, a business plan is about results, about making your business better. If you don’t think doing a business plan will improve your business, then don’t do one. Planning for planning’s sake is a waste of time. Where a plan is most likely to make your business better is by allowing you to: 1. Set priorities properly.
2. Track plan vs. actual results and make course corrections.
3. Plan and manage the critical numbers that aren’t intuitive: not just profit and loss, but the relationship to cash flow, balance sheet, and ratios.
4. Communicate your plan to others: partners, employees, lenders, and investors. You may have a great plan in your head, but as soon as you need to explain it to others, you need to write it down. Reviewing Your Plan So how do you maintain your business plan?
We have to first establish that without regular review — monthly or at least quarterly review of your planned vs. actual results, with practical analysis of the reasons for variance — planning is likely to be a waste of time. Real planning requires regular reviews just as much as navigation requires knowing where you are as well as where you were and where you wanted to go. Every real plan needs to be full of specific dates, budgets, forecasts, and management responsibilities. People involved have to know there will be tracking and following up on specifics. Then that plan must be reviewed against results, and those reviews should produce course corrections and fine tuning. Generally a business hopes for a consistent long-term strategy built on short-step incremental changes, not major revisions. Consistency is important to strategy, and the business should avoid the temptation to jump around from one strategy to another so quickly that no strategy is ever really implemented. Remember that even a mediocre strategy well and consistently implemented is much better than a brilliant strategy that wasn’t implemented. However, businesses do come to crossroads demanding major revisions in their business plan.
* What changes took place in the competitive landscape that could be updated in the plan? * What changes took place affecting our market that could be updated in the plan? * What changes took place internally in our organization that could be updated in the plan? After you’ve answered these questions, update your plan accordingly, set new budgets and milestones, adjust your financials, and repeat the process with another review of your plan again next month or next quarter. Update your plan accordingly again, and keep repeating. You’ll find that maintaining your business plan gives you a better grasp on your business, your market, and everything else that happens with your company.