Planning for a long term success
A business organization is a commercial enterprise that portraying characteristics of an organized institution that provides and supplies goods and services to the society. Organizations require order and hierarchical arrangement for smooth operation. After establishment of a business, managers entitled to different departments take charge to develop tasks and strategies on how to achieve them. The workers down the line should follow these tasks in order to achieve desired goals at each stage. The paper discusses processes of developing tasks after foundation of a business. The paper shall discuss each stage suggested to be critical in determining business success at the long-term. The paper identifies key roles in stage I and stage II providing examples of successful companies at those stages. The paper enters into murky depths to identify differences in the entrepreneurial stage and the professional management stage of an organization. Finally, the paper evaluates key roles of phase three, and some of challenges met on transition from phase II through III.
- DEVELOPMENTAL TASKS AFTER FOUNDATION
After establishment, the business is on its young stages of development. In the short run, budget constraints and financial difficulties, establishment of new markets, inadequate professionals and inadequate experience are some of the problems that they face. These challenges require an organized system of operation. In the short run, the managers seek to formulate strategies to cope up with tasks. They form some stages, each with different tasks to accomplish. This enables them to achieve goals at the long run stage of operation. The following are developmental tasks to accomplish, in order for smooth running at the long run.
Corporate culture
The first task to accomplish is the corporate culture. In this task, a business identifies norms which to operate with. The norms are essential to portray good image to the outside world. The norms give a business a god name and a reputation, which help in enhancing its competence. Businesses should also have its beliefs. These are methods of operation, where workers ought to learn in order to develop operation skills. The corporate culture consists of values that workers and management should adhere. This is gives the business a standard bar to operate from and this enhances uniformity of workers.
Management systems development
This task mainly focuses on critical areas of business planning, business organization, and management development and performance management. At the planning level, the business, through its management systems, structures how to achieve the desired goals. They develop plans and strategies on how come up with ways to success. The other critical goal for this task is to organize the labor. They identify who should manage, who should organize and who should direct the others. The organization should follow certain guidelines and should follow academic capabilities. This task should look onto management development. This concerns the staff, on promotion and demotions. The business lays criteria to follow when shifting these staff either up or down. Performance management is another goal in this task. This focuses on how to deal with poor and good performances. They business lay a strategy on to award through performance appraisal to the workers.
Operational system development
This task provides a blueprint on how to deal with information systems, accounting systems, operation systems, marketing and human resource management. On the information systems, the task is to show how staff and workers shall send and receive information. Communication is important for a smooth running of a business. This is through different means like intern memos, letters, emails, or phone calls. The task deals with marketing strategies by the business. This focuses on ways to reach new markets, advertising and product promotions. The task of operation links with the human resource department that deals strictly with workers. The human resource recruits new workers, promotes, demotes or send workers off from the system. The department hence ensures smooth operations.
Resource management
The task involved is resource management that may be financial; in bank or cash, or physical resources. These resources are the business worth and the business should develop a defined way of managing them. They include buildings, vehicles, land, furniture, or stock at hand. Their security is vital for many of the workers may sabotage, steal or even misplace them.
Products and services
The task focuses on products and services to the consumers. This includes the methods that the business should use for production. This task also focuses on where to find the raw materials and methods of purchasing them. The task determines how much a product or a service should cost in order to gain a profit. The techniques to use in calculation should base of cost minimization. This enables the company to have great profits. The business also determines the packages and dominations the product should have.
Markets
The final task is to identify market where the business should distribute its products or services. The task requires intensive investigations to find a good market. This task should study demographic patterns and structures of a society. The business should know the methods to segment its market to generate profits.
- KEYS TO SUCCESS IN DEVELOPING STAGE I AND II ORGANISATIONS
The stage I and stage II organizations have simple systems of operations. Management comprises of simple structured strategies than the stage III. They have an advantage over the stage III that they do not experience disadvantages of scale. These stages have a room for expansion for the business. They therefore can plan for greater matters ahead for they have land. The stage I and stage II organizations have flexibility in operations. They therefore can shift to any business if the current business fails to do. The stage three stages assume complexity and may therefore not be able to shift to other business if market fails. They may therefore incur losses when a certain commodity lacks competence at a market.
- DIFFERENCES BETWEEN AN ENTREPRENEURIAL AND PROFESSIONALLY MANAGED ORGANIZATION
Skills
An entrepreneur may be a person with little skills in management. They mostly have little experience on business operation. They use simple skills due to their restrained level of education. The professional management use high skills in their operations. They accumulated great experience in all the years they operated. Their experience may also base its origin from exposure they got in business fields.
Finance
An entrepreneur uses little capital in the management operations. He may be the boss and sometimes, he/ she incurs no costs when managing. A professionally managed organization incurs large amounts to search for skilled labor. They also incur costs in research programs on searching new methods of operations.
Competition
An entrepreneur business does not have much competition compared to professionally managed organization. The business is small and therefore no stiff competition. This leads to the entrepreneur have simple methods in product manufacture or branding. The professionally managed gets stiff competition from huge businesses over the globe. To maintain their competiveness, they must acquire classic methods of manufacture, branding and selling of their commodities. They also incur huge costs of advertising to maintain competitiveness.
4. DEVELOPING STAGE III ORGANISTION
Levels of management are what differentiate stage three III stage II organizations. Stage III comprises of complex and professional management while stage II comprise simple management. The professional management has some key points to success. Professional management has an advantage of creativity. The professional staff is skilled personnel and has literacy in business field. They give the business an advantage of being innovative in production, distribution and marketing. The professional management ensures perfect business organization. The professionals are able to place workers to their suitable positions therefore increasing productivity. They are able to allocate resources to their suitable positions. They are skilled in capital allocation and this makes the business perform better.
However, a there is a main challenge in the transition from stage II to stage III of development. The professionals require a lot of capital to operate. They require huge payments due to their skills. The stage also requires massive investment due to research. Professional management requires research due to maintenance of global competence.
