Group 15 - Evaluation of the Effectiveness of a Small Business - Case Study Example

The paper “Group 15 - Evaluation of the Effectiveness of a Small Business" is a forceful example of a case study on business. Group 15 have shown a successful business practice starting with an understudying to customer needs and had a good business plan to show the path and the targets of the firm. Additionally, the business has a detailed description of the targets it aimed to achieve and an awareness of the targeted consumers’ attractions. The objectives stated in the business plan were also critical to guiding the performance of the company, as they are specific and quantifiable while including a timeframe and index that can be used to measure progress. The accounting figures provided by Group 15 show a complete picture of the returns which have been made in close proximity to the business plan expectations.

The financial statements are showing Group 15 achievement in the break-even analysis along with opportunity cost analysis to the activities carried out by the business. Through this reporting, there is greater cost-consciousness as far as financial statements are concerned while the opportunity cost demonstrates the maximum value associated with the benefits foregone through choosing one option over another (McKinney, 2004, p. 35). Group 15’s financial position also seems encouraging for the current business status as well as the immediate projected growth since it reconciles the financial statements on a regular basis while adequately managing cash using a cash budget.

The expenditures of Group 15 are founded on the allocations that have been established by its own budgeting system, while the budgets are linked to set times as well as performance standards. These budgets further provide records of improved performance and can be critical to the construction of break-even models and a review of the actual operations against forecasted activities for every accounting period. Group 15 deposits all the cash receipts in the business’s account and the records processed, while the cash disbursements are continually monitored and reconciled against the original authorization.

Group 15 regularly reviewed the quality it had purchased for resale and whether they were delivered in a timely manner after it had solicited for the best prices of goods that were of good quality. The purchase of the accessories for resale was mainly based on specification instead of the brand name or a mere acceptance of the offers given by the vendors. The volumes that were being procured by Group 15 were enough to warrant dealing directly with the wholesale vendors so that the prices of the acquired goods could be better than the market prices. As the business was seeking to get the goods from China, it had already identified the specific segment of the market that is intended to serve while seeking the customers with services that are better than the services provided by the competition. Understanding the market segment beforehand is important as it will assist the business gain and control significant market share that is critical for its success (Ryu, 2012, p. 169). The marketing and promotion endeavors of Group 15 are also honest and straightforward while being coordinated with the sales planning and scheduling to ensure effectiveness.

The prices of female accessories that were sourced from China by Group 15 were competitive and this was critical to ensuring that customers bought them and thus make breaking even an achievable fete for the business. This project also had the edge of having no overheads that allowed it to sell at lower prices than the competitors even though there was no similar direct competition in the area in which it operated in. The business further seeks to identify opportunities for advance planning in order to be prepared for future growth and an expansion of the activities and operations it undertakes. Generally, Group 15 may be considered as operating in an environment that is profit-make and sustainable.