Foundations of Business - Assignment Example

FOUNDATIONS OF BUSINESS Student’s name Code & Course Professor’s name University City Date Foundations of Business B2 To my understanding, organizational structure simply refers to formal system of task and authority relationships in which organizational functional process are divided, organized, and coordinated purposefully to attain positive results. Having learnt the what really entails organization structure, I realized that organization structure can either be formed through process division, functional structure, product structure, customer strategy, and geographical.Organization forming structures varies across the globe based on how the forms are efficient, effective, and suitable across the globe. By examining Starbucks Coffee’s organization structure, geographical organization structure poses great advantage to the company. From cross-examination I learnt that Starbucks geographical organization structure will foster closer managerial support for geographical through high flexibility in constant changing of policies and strategies so as to align with specific market demand. U.S. Department of Energy will greatly benefit from the divisional organization structure through assigning each department tasks and responsibilities hence inhibiting the organization from experiencing operative conflicts that generally arises due to lack of responsibility. Thirdly, functional organization structure will effectively suit the FedEx. Company. Since FedEx company need to be managed from top down via functional heads, the functional organization structure will foster operation efficiency and specialization from top down process due to department operational independence. Fourthly, customer organization structure effectively suits the Walmart company. Having known that Walmart is renowned for targeting all types of consumers and offers wide arrays of products, its products and services need to segmented into consumer business, and professional business purposefully to foster better business services. Lastly, product organization structure basically suites the Microsoft company. Since Microsoft company has product based division such as the production of phones, computers, and automotive, each division needs to have its own research and innovative process. Such an approach will foster product development in each division. B3 Having analysed the three leadership technique, I now realized that organization managers are at some point involved during the decision making process. Essentially, the three leadership approaches position managers as authoritarians which is strongly emphasised in autocratic and democratic leadership style with little emphasis in Laissez-faire style. Contrarily, the three leadership styles differ based on how managers exercise their authorities towards subordinate staffs especially during decision making process. I am meant to understand that autocratic leaders fail to involve subordinates during decision making, democrat managers involve subordinates during decision making, while laissez-faire managers give subordinates the power to make decision. Personally, as an organization manager I will endorse the use of democratic leadership style simply it involves employees during decision making process, opinions, and recommendations regarding organization progress. Basically, I will be able to grasp new ideas from my employees while the employees will feel more wanted to the organization hence promoting higher motivations across the employees. This is to imply that democratic leadership style will foster creativity and innovation across the organization simply because all workers are involved during organization forums. Alternatively, as an employee, I would prefer my organization manager to endorse the use of laissez-faire leadership style. Through laissez-faire style, as an employee I will be able to gather responsibility, independence, and take control of the assigned work hence not depending on my superiors. Essentially, the technique will enable be to learn important concept that required for effective and efficient operation of organization especially when given managerial leadership. Basically, the laissez-faire leadership will enable me to become highly trained and self-directed employee especially in producing successful end products and services. B4 Through my understanding of the transactional leadership style and transformational leadership style, I argue that both leadership style needs a system purposefully to operate. Though both leadership style works on system, the foundation of the style is based on the management and leadership approaches. Secondly, both leadership styles operate purposefully to attain goals whereby transactional style is geared towards defined results while transformational style is geared towards innovative outcome. Thirdly, both leadership styles focus on developing the HR across the organization in aspects such as organizing, planning, and aligning of the organization employees. Additionally, both leadership styles create agendas for the organization through planning, budgeting and establishing directions for the organization work-force. Lastly, transactional and transformational leadership styles have an operating execution process as an attempt to tackle organizational issues. Subsequently, the transactional leadership style and transformational leadership style differ based on their operative process. The below table is an in-depth representation of the differences between transactional leadership style and the transformational leadership style. As an organizational manager, I will advocate for transformational leadership style. Since the contemporary business market is contemporary changing, organizations require transformational leaders because they work to change a system and have the capacity to solve problems especially the old systems that fail to fit across the organization. Additionally, transformational leadership style focus on delivering innovation, and fosters employees to deliver their best which are contemporary aspects across the organization. B8 Based on business foundation studies, their exists varied segmentation characteristics that I can develop for profiling my customers. Firstly, the segmentation characteristics will be based on variables such as age, marital status, gender, income, and occupation. Second characteristics will be based on climate, region, and population density of a given area. Third characteristics is to focus on the consumer perceptions towards the product, the consumer user status, and the consumer consumption rate. Fourthly, the segmentation characteristics will be based on consumer’s lifestyles through people’s interests, activities, attitudes, and the values. Lastly, the segmentation characteristics will be based on segmenting the high purchasing and low purchasing customers based on age, geography, and income. Demographic Segmentation As discussed above, the demographic segmentation will basically entail variables such as age, gender, marital status, income, and education background. Personally as a business person, my products and services need to be greatly aligned with the demography of the segmented target market. Geographic Segmentation The foundation of business report informs that geographic segmentation involves aspects such as climates, region and the level of population. Based on my understanding, geographical segmentation highly focuses on the regional preferences of the varied products and services which might differ from other region though the operating company might still be the same. As such, business persons need to offer product and services that resembles the dwellers of specific region, easily suits with the climatic conditions, and has the capacity to meet the demand of the entire population. Behavioural Segmentation Personally as a business person, am meant to understand that organizations and SME’s production rate need to aligned with the consumer purchase power, thus the consumer purchase behaviour. In this context, business persons need to understand which products fall under non-user, potential user, regular user, and first-user products purposefully to come up with a clear structure of the target consumers and customers. B9 Personally, by introducing new product into the market, the pricing strategy will play a pivotal role in ensuring the product gets accepted in the market, penetrates into the market, and generates high profit for the organization. Firstly, I will price the product through skimming approach whereby the product will be highly priced purposefully to attract the interest of the consumers to purchase the product which on return, the organization will generate high profits. For long term business purposes, personally I will transform the pricing strategy from skimming approach to penetration approach. My skimming strategy will focus on low pricing of the product due to strong competitors from the market environment which will oversee the product out of the competition. In this context, my product in the market will continue wider market share thus attaining the top leadership position. B12 In the contemporary business environment, various agencies apply the use of accounting information. Accounting information is basically used by the owners and managers across varied businesses, investors and creditors across the society, government agencies, suppliers, employees, and labour unions. The enlisted users use accounting information for varied reasons. Firstly, the accounting information are strongly used by the business owners and managers to determine if the organization is making profit, to determine the financial condition of the organization, and design corrective actions for the organization. For investors and creditors, accounting information play pivotal roles in examining the organization performance and coming up with decisions that will foresee the organization growth. For government agencies, accounting information need to be distributed across federal agencies so that the federal agencies have the capacity to regulate the stock trades. For other users such as the suppliers, employees and labour unions, accounting information is used in determining the payment of the business bills, salaries, and compensation. Lack of employing accounting information exposes its users to varied shortcoming. Firstly, lack of accounting information will expose business firms to have financial discrepancies simply because the organization fails to have a comprehensive accounting information tool hence poor accounting practice for the organization. Secondly, lack of accounting information expose the organization to have incorrect financial information which will actually cause problem such as threats towards organization growth and sustainability due to poor accounting practice. Lastly, accounting users will basically lack efficient and effective financial transactions simply because of lack of accounting information that are reliable and meaningful towards corporate transactions. B13 Source of Funds Doller amount obtained Maturity, annual interest, and security Total sources Family and Friends $150,000 2% for 6 months $150,000 Credit Card Loans $250,000 10% for 6 months $250,000 Commercial bank loan $100,000 6% for 6 months $100,000 B14 Though accessing loans from family and friends is still a formal loan, personally al get massive support from family and friends. Essentially, the funds will be read available hence I can commence on my project as soon as possible. Additionally, the interest rates are much lower hence this will give me room for faster business growth. Similarly, for the credit card loan the funds are also available as soon as possible. Though the interest rate is a little bit higher, this will make me progress on my business venture as soon as possible simply because I will have the resources with me. Lastly, commercial bank approving my loan will be a stepping stone towards my realization of my business success. This is because my business will be commercially feasible hence ability to generate funds. Read More