How will you create an organization using local resources of land, labor and capital that would maximize your business and personal values while economizing on costs?
There are three methods of doing business in this state of the economy. One is the takeover of a falling enterprise and turning it around. The second is to gain a successful franchisee. The third is to start from scratch a new enterprise that is centered on a new product or service idea. The problem with the last, starting a business from the scratch will require huge capital and it may not be possible to attract funding unless the idea is exceptional. All ideas may not work especially if one is trying to cater to a local market. Therefore starting a business from scratch can be ruled out. The second is a franchisee, and the successful one at that. The problem with franchisee model business is that there is already an inflexible system and the implementation has to be in accordance with the contract and may not be accommodative of local conditions. For example MacDonald's franchisee may not actually be as popular as the local eatery and that may require some adjustments to make it competitive which will not be allowed by the franchisee. Lastly the franchisor dominates and imposes their culture and this also may not be acceptable.
Thus a business that is now in the verge of closure can be turned around if one has the expertise. This may make it possible to refresh the business without making much change and investors can be found if the idea is feasible. Therefore in this economy as of now trying to salvage a business is the best option and also it is helpful not only to the economy and employees -- who will not become jobless, but also to the entrepreneurs who have already experience with the business and can be retained as partners. The idea of thus taking up a failing super market and renovating it is considered as the FMCG sector will thrive in the economy.
Identify some barriers, problems and challenges:
The first problem is that the business as it is has fallen. If it was due to mismanagement or has gone out of control it can be rectified. What if the costs have gone beyond the revenue and thus have entered in a loss situation? There would be the bankruptcy looming large. Is it possible to turn around such an institution? The assessment would have to be made based on the territory the supermarket covers, the affluence of the customers and their preferences and if it is possible to reduce the costs by changing the management paradigm and the modes of doing business? The analysis of the balance sheet of the company up to now and their good will assessment has to be made. Thus one cannot choose just any failing firm.
The above exercise requires the services of expert accountant, lawyers and consultants in the business. The take over of a mismanaged business and trying to rectify the short coming of an already established business is not a small task. For example if it were to be that I would acquire a failing convenient store and re plan the business from a managerial perspective, there will certainly be several problems that I would have to address and take care of. (Siegel; Ford; Bornstein, 1993) Thus primarily I would like to get a thorough appraisal about the present situation that includes advice about the break even and the future possibilities from professionals. Assuming that such a store has been found the issues that come up next is the issue of employees and the system of the organization.
The existing organization has to be checked for cost effectiveness, employee redundancy and a host of other factors. There are many external factors like changes in the economy, customers and so on. The external factors have to be included in the change management plan. During the restructuring the employment laws have to be considered. Formation of teams should factor in the growth opportunities and threats in the environment. Competitive forces should also be evaluated and considered. During the restructuring process, the car?
r attitudes of "mploy"?s, the external opportunities available for "mploy"?s, and the seniority of team leaders will be considered. If the external employment environment is not considered there can be a high rate of "mploy"? turnover. Finally, the latest technological advances should be used in the processes. These will make the business competitive and help it turn around. (Siegel; Ford; Bornstein, 1993)
The first thing therefore is to consider if the existing system has any extra advantage and if changing the system can give the firm any extra advantage? One of the major competitive advantages is that as of now it will have a good will and a consumer base and the high end consumer can be catered to with a novel package of goods and there must be a method of central management that is not rigid and bureaucratic. A flexible management model will create synergies in the various departments that complement the need of the company. The creation of synergy is based on integrating strategic management like strategic renewal, use of disruptive technologies, and core industry development, using the feature of multi-business synergy. There is also the use of acquisition and inside integration, forming strategic alliances, and creating new business eco systems which form the basis of strategy implementation. (De; Myer, 2004)
The organization will thus consist of existing patterns and new innovations. It will thus have existing services and employees and new employees with new employment models. To remove the labor costs means to remove some or most of the labor in some way or other. The revamping of labor is a means of cutting costs and labor and the management that some how tend to redefine employee relationship. Legally employment relationship as seen by the state is the frame through which the workers gain rights and benefits and these are brought about by the legislation of labor laws that gives such employee benefits as social security pension and also provide for protection and creating balanced employers' rights and equitable obligations. (ILO Report, 2006)
This means that the hiring and firing and restatement of contracts will have to be within the ambit of the law. The best plan therefore is to take the system as it stands and run it with a few tweaks and changes. For example the first thing that I would invest in is bringing in up-to-date product lines and getting rid of all the outdated ones. This can be rectified by revising all the product line through extensive new product development which will require a close coordination between 'Research & Development' and various different departments within the business. There will be no short cuts; all the usual stages of product development from idea generation to concept development to commercialization will be carried out accordingly. (Siegel; Ford; Bornstein, 1993)
Culture and Society:
The existence of the business for long would have merged it with the culture and the society well. The model must be scientific and humanitarian in the sense that the core competencies of the employees have to be leveraged for the business. The existing business culture has to be studied to see if that is unique to the business and has stood the changes in market and expansion strategies. The changes will involve management perceptions. The best thing to do under these circumstances would be to create a model that has two of the synergies overlapping. For example the company must create the model for the technology that makes it locally unique -- its products, standards and the way the marketing is done with the internal administration and control being autonomous. In other words there will be two identical frames where products receive the absolute and coordinated, controlled attention that is the same every where while unit functioning and internal administration, training staffing and coordination can be based on the unit based autonomy. It goes without saying that the personnel selected for each of these operations have to be highly qualified, trained and motivated based on the overall company policy. Creating such a two tier model will be helpful in coordination and management. (Siegel; Ford; Bornstein, 1993)
Second thing that I will make sure is marketing. I will take all the essential steps to ensure that the neighborhood knows that the store is now under a new and more efficient management. In order to do that, a grand opening will be scheduled preferably on the weekend where free food and drinks will be offered and a huge discount will be given to all the customers. This might actually be out of pocket but in the long run it will be a worthy investment. (Siegel; Ford; Bornstein, 1993)
What would be required would be to study the cost advantage patterns of employment. The part time employment…