Methods and Tools for Control of Business Outcomes - Essay Example

Methods and Tools for Control of Business Outcomes Name: Course: Tutor: Date: The formation and running of a business begins with a given idea borne by a single person or a group of entrepreneurs who gather to reason together on how to form a business that can serve their interests. This calls for proper planning and coordination of the required resources to foster high returns and a consistent growth of the business entity. It is a requirement for all business owners to obtain the best managerial team that is qualified in terms of experience and academic skills so as to propel the business to higher outputs, turnover and profits. The biggest challenge for any business venture occurs at its formation when most of the costs are fixed and the returns are not enough to meet the enormous cash outflows. For most businesses at this stage, the decision on what to produce and at what quantities is usually unknown since most of the output is being tried in the market to help determine which of the different products would thrive in the available market and what quantities would be optimal for production (Barret, 105). The success of any business is usually observed by considering the growth of the entity in terms of output, branch network and profits. The growth of businesses has however faced many challenges in the modern world. The desire for high quality and cheap products by consumers has limited the amount of profits that can accrue to the entrepreneurs. The costs of doing business have remained very high over the world while the turnover has not increased in the same margin. Essential resources have been scarce or too costly resulting to collapse and consequent closure of many industries. Governments, civil societies and human rights bodies all over the world have continually pushed industries to employ environmentally sensitive technologies in their production so as to maintain a clean environment globally. These technologies are expensive and could be less efficient leading to a drop in output (Babbes, 27). Workers unions have also been competitive in their campaigns for better pay for all workers worldwide leading to an increase in the operative costs of most businesses. The above challenges require the employment of experienced human personnel who can optimally employ the available resources to produce the highest profits for the business. The management should strive to strike a balance between the growing demands by consumers for quality and cheaper prices as well as maximizing profits for business owners. The shareholders interests should be prioritized even when the business is seeking to meet the needs of all other stake holders (Gartner, 37). Bespoke products Bespoke products are items that are produced as per the customers’ specific requirements which are communicated to the manufacturer through orders placed by different consumers. These products are sometimes a challenge to different manufacturers since some of the specifications by consumers usually transform the outcome of the product to a new item completely different from any other article in the market (William, 81). A certain specification on an item like a mobile phone can result in a total overhaul of an old make to a totally different model. It is important for the manufacturer to understand the customer’s specifications and give maximum attention to all the details of the order (Vance, 44). The producer needs to outsource any components that he may be lacking so as to produce the item as per the specifications. Emphasis should highly be put on the quality of the product so as to promote a repeat buying by consumers. Methods/Tools for control of outcome Manufacturers producing bespoke products should research on the pricing patterns of these goods so as to ensure that they remain profitable. They must improvise pricing patterns that put an extra fraction of the normal price for all specifications that cause an extra cost in the production of the specific article. This will ensure that the output is an article of high quality which is competitively priced to keep the manufacturer in business (Smith, 21). Manufacturers need to carry out consumer education to ensure that customers benefit from the usage of their products. Air Traffic Control Systems An information technology project such as Air Traffic Control Systems is a highly sensitive and demanding business venture for the person or entity contracted to offer such services. Unlike in bespoke products where the success of a product and the entire business is seen through the production of cheap and quality products, in the service industry like Air Traffic Control Systems; success of such a venture is measured by the level of efficiency in the service provision and the level of acceptance by service consumers. An air traffic control system needs to be monitored closely around the clock and the provider should have a back-up system incase one fails (Hossenlopp, 53). Methods/Tools for control of outcome Due to the nature of the service provided, the company providing the service should source for emergence and stand-by power generators to ensure that coordination within the airport is efficient and not derailed by power cuts (Yates, 7). The facilities required such as computers, internet servers and sound communication appliances should be of high quality and regularly serviced to ensure smooth running of the operations within the airline. The hearing transmissions from the aircrafts should be clear and timely received by the technical controllers at the airline. The service provider should also provide clear controller screens to enhance efficiency and safety (Chorafas, 17). It is important for Swanwick to understand that a failure of the air traffic control systems could lead to catastrophes or other serious problems such as delays for airlines, passengers and cargo. It is important for the service provider to vet themselves and price their services competitively so as to ensure that they offer high quality services. The management should consider securing an insurance policy to shield them incase of any calamity beyond their control. Low Volume Batch Manufacture The volume of production by manufacturers is determined through market research which provides the optimum quantities. Some businesses may produce huge quantities at certain periods and first sell all their stock and later manufacture more for future periods. Other manufacturers may produce small but continuous output as per market requirements. A business engaged in the manufacture of electronics should produce quality items to their customers so as tom remain competitive in the market. Over the world the production of electronics has attracted many manufacturers and consumers find themselves having so many alternatives and maximize their utility by going for the best quality at the cheapest price possible (Burtonshaw, 72). Methods/Tools for control of outcome Businesses trading in specialist electronic manufacture in most cases produce what has been already ordered for. For instance, electricity transformers used by power distribution companies are expensive to produce and a manufacturer may not manufacture large volumes for store as he searches for a better market. Low volume batch manufacture will be most appropriate for his business. Production levels can be adjusted as per market trends and demand (McKinney, 64). The manufacturer should ensure that orders are responded to in good time and the quality of his output is high. The distribution channels should also be efficient enough to ensure that the items are easily reached by the target market. The manufacturer should also offer after sales services such as transportation, installation, and minor repairs so as to attract more customers. The pricing should remain competitive but must not be lowered at the expense of quality for customers will not make a repeat buying. IT Projects The implementation of IT projects for certain institutions requires a continuous study of the operations of the institution so as to understand the needs of the consumer to help in providing a reliable system. The computerized systems should facilitate efficient flow of data or information and help in the maintenance of all resources of the institution. The provider of these services should provide a programme for the training of all staff members of the institution on how the computerized system works. Methods/Tools for control of outcome The system should continually be updated to meet emerging demands of the consuming institution (Daniells, 42). The system should be user friendly and one that embraces modern technology. ERP systems are used to merge all business processes into a homogeneous and venture-extensive system environment. It is a software that manages the assets of an institution, the human resources, materials and financial resources both internal and external. The IT specialist should work out a feature driven plan to provide a successful project. Medium Volume Manufacture/ Large Batch Manufacture Manufacturers producing items such as cars and domestic appliances may produce them in large quantities as per researches on market trends. This is due to the nature of these items since they are durable and may not lose much value in the short run. To maximize on their sales and profits, the manufacturers should employ experts who will maintain high standards of quality and embrace technology and modernity in their output. These industries are highly saturated with competitors and for businesses to succeed require their output to be outstanding in meeting the needs of the consumers. The manufacturers should continually improve their latest models by incorporating new features on their products. This calls for an expansive research on the market needs and how previously manufactured items can be improved on (Rud, 29). Methods/Tools for control of outcome Due to the increasing number of competitors in the medium volume manufacture and large batch manufacture, any business seeking success should be innovative and having sound long term planning of its operations. Production levels should be kept at optimum levels at all periods when the marginal revenues are higher than the marginal costs. Companies that manufacture cars need to improve on their efficiency and improvise new features. They should also diversify their businesses and offer the consumer a wide range of items from which to make a choice. Toyota as a car manufacturer has offered consumers with different makes of cars and has realized high turnovers for a long period. Through their Just-in-time (JIT) system, Toyota has been able to meet market demands at low costs of operation. Companies producing home appliances such as LG, SONY and SAMSUNG have also diversified their products to help realize their business objectives. For instance, Samsung and LG produce radios, televisions, fringes, microwaves among other appliances (Kerzner, 102). IT System for a Small Company The installation of an IT system for a small company may not pose extreme challenges to the provider but there is need to emphasize on all details so as to provide a reliable system. The capital requirement is not enormous but this depends on the size of the business. A IT business that is providing MRP systems for a small companies should not complicate the system with many details as if it was being made for a large company for this may minimize its efficiency (Puu, 19). The systems should be made as per the requirements of the consumer. MRP systems help the consuming companies in control of their manufacturing processes from the input of the raw materials through the different processes until the output or final product is produced. The supplier of the system should ensure that the system helps in cutting operational costs of the consuming company. The provider needs to study the manufacturing processes of the user company to help him develop the relevant system that best serves the company (Weetman, 118). Fast Moving Consumer Goods Business entities engaged in the provision of Fast Moving Consumer Goods (FMCG) need to study their markets well to understand the specific goods that will meet the market demands. Super markets and retail shops need to have a variety of items and in the right quantities and package that serve the consumers’ needs. These ventures should ensure that their goods are well displayed and the shelves correctly labeled to ease customer’s shopping. The customer should have a one-stop-shopping for all their needs on visiting a single shopping mall. A lot of advertising needs to be done by businesses trading in these kinds of goods since the levels of competition are in most times very high. Methods/Tools for control of outcome The businesses should also adapt to the peculiar shopping trends of customers by opening their businesses early in the morning and remaining opened till late evening to serve customers shopping at such times. The businesses may consider opening day and night after considering the market trends and the cost implications to the business. These businesses depend on the levels of turnover and all efforts to ensure the sales remain high will be welcome for profitability. The most important tools for these businesses would be long term strategic planning on finances and general operations. Conclusion All business whether in service industry or manufacture of tangible goods pose different challenges to the owners and thus there is need to plan well before the start of the businesses. Managers should also re-plan or consider alternatives incase one of the business operations collapses or is continually unprofitable. Manufacturers need to invest in market researches to help them in understanding the market needs. The biggest challenge is usually to ensure high returns for shareholders as well as maintaining quality of products and efficiency in service provision (Lam, 14). Whatever the outcome, any business manager should be focused on the long term existence of the business and growth of branches, turnover and profits. Focus should also be laid on a better pay for all staff and participation in social responsibility. Works Cited: Babbes George. The Minister's MBA: essential business tools for maximum ministry. B&H Publishing Group, 2006. Barret Deb. Business tools. Window Dressings, 2000. Burtonshaw Simon. Essential tools for operations management: tools, models and approaches for managers and consultants. John Wiley and Sons, 2010. Chorafas Dimitris. Strategic business planning for accountants: methods, tools and case studies. Elsevier, 2007. Daniells Lorna. Business information sources. 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