In order to grow a economy it is very necessary to encourage small business to flourish and make a place in the market so consumers are provided with more options to choose from and they get their proper value for money. With the growing time government also planning to increase their investment in small businesses by fulfilling their buying requirements from them and employing more small firms who can work on central government projects. This can provide a big opportunity not only for the company but provide great career opportunities for the people who wish to work with the small business organization, therefore it is, on the whole, provide amazing opportunities for the country's diverse and innovative small business(Jenkins, 2006).
The present report is connected with small business Shine Communications which is a London based Public Relations company that aims at providing clients what they need with creativity doing justice in their implications. In this report, various means and ways of growing the business and establish the changing environment are provided.
1.1 SWOT Analysis of the company
In order to frame a proper business development for a particular business, it is very necessary to assess the present position of the business so that it can grow in its strength and convert their weakness into opportunities, therefore in the light of the above the SWOT analysis of the present business is conducted as under:
Strength: In the present time Shine Communications is the most contacted PR agency in the UK and has the strong working capacity with strong brands like BACARDI, eBay, paramount, Intercontinental hotel group, etc. which gives them a major advantage over other competitors and creates a good reputation for them(Wu and Olson, 2009)
The diversification in their work is another major advantage for them like developing events, direct marketing, sampling and carrying all these functions through social media through five C's which involves content, channel, community, carrots, and connection
Weakness: The expected revenue for shine is not as per planned strategy which is only 36% as compared to other PR agencies and its present different categories of operations.
It has a small number of a team of about 56 employees which sometimes becomes unmanageable to handle its different categories of operations(Chell, 2007)
Opportunities: As PR concentrates with multiple functions of marketing, sales, promotion, therefore, Shine can grow if it satisfies more and more customers in not only in a particular field but PR as a whole as the greater number of customers are taking the help of PR agencies to introduce their product and services in the market.
Threat: The major threat to Shine is from the well established large competitions who are serving not only in the local market but nationwide, also entry is much easier in this industry as it is not so much capital oriented therefore present competition as well as the future competition both can provide a big threat to this firm(Spence, 2007).
Sometimes the PR work is given less priority and marketing firms are overlapped with their function.
1.2 Analysis of business using a comparative measure of performance
The performance of a company is judged on the basis of different factors. One of the major factors is PORTER five forces model which able to identify competitive forces threats and weaknesses. As industry of PR is very flexible to the entry of new firms because of its easy fulfillment of capital requirement so Shine Communications, in order to distinguish itself from other rivals, has to take care regarding not only fulfilling the present needs of the customers like after-sales services and handling customer grievances as buyers can easily move to other firms in this industry as they have a very low switch-over cost because of high bargaining power which stresses up the company in this business all the more. Depending upon the number of customers and the company level of customer dependency this can be high to low in the scale of performance(Street and Cameron, 2007).
Apart from this lack of proper PR professionals can lead to loss of customers which further is connected with lowering of the brand image of the company as a whole in the industry. Finally in order to deliver best to the customers business like PR should be connected with the value chain which involves linking marketing, sales and promotional activities with each other so that the present intelligent thinking of the company can be applied in a creative way with the quality specifications to the right people which is one of the major objective of Shine Communications(Malhotra and Temponi, 2010.)
2.1 Recommendations to improve the identified Weakness
First of all in order to manage its large diversified operations and to handle more and more customers at the same time Shine communications has to increase its employee base from the present level. It can do so by conducting various interviews to increase the PR professional's advertising in daily newspapers and social media keeping in mind their budget for spending amount on human resources. The hiring process will help them to maintain the inflexibility in the working hours they face because of lack of proper strength in the workforce and non-dealing with the customers in a timely manner(Dobbs and Hamilton, 2007)
In order to overcome their revenue earning factor as compared to other industry, it has to make segmented budgets depending upon their various fields and conduct research and development in the fields which are offering them less revenue than budgeted, so that the exact loopholes can be identified and services can be provided as per the customer needs.
2.2Ways in which existing performance could be maintained and strengthened
Shine communications believes in applying intelligent thinking in delivering to the customers the best creative ideas with the right quality so it has to continuously upgrade itself with the present mindset of the people dealing with it along with different changes in technology, market and society as a whole so that it can deliver its service in the best possible way. It can further develop its current staff so that it can become more efficient and get educated with the latest trends so that its objective of putting the client first can be achieved as they are satisfied with the latest creative method. Further teams should be build up so that customers can be divided according to their areas and different levels of requirements. By dividing and breaking the tasks and achieving individual team targets it helps in achieving the target of the firm as a whole and can strengthen its present work frame and helps in maintaining good team spirit and performance(Vos, Yeh, Carter, and Tagg, 2007)
For small business individual customers plays an important role in their revenue so shine should knot up with customers personally so that its present scale of operations of business can be maintained(Lepoutre and Heene, 2006)
It should provide training and development to its existing staff so that the capabilities of the staff can be improved as they are encouraged to gain new knowledge they will discharge their functions in a better way which overalls lead to improvement and strengthening of the company's performance.
2.3 New areas in which business can be expanded
It is very important for a firm to grow in order to change not only its status from a small firm to large scale firms but also to create customer loyalty and recognition in the market and the industry. There can be various areas of expansion one of them can be entering new fields of business.
Conducting marketing research work can be one of the key areas for expansion as through it various customers and companies are linked through information. When marketing research is conducted a deep analysis is done in capturing value-based data so that prospective customers are provided with the exact product and service which they need. Some big companies outsource marketing research work to other companies while entering into a particular sector or introducing a new product to the existing sector.
As on marketing study, the future course of action for any company depends, therefore, they pay heavily to the agencies if the research work is proper and with detailed reasons for the course of action. Shine can provide various validity techniques in order to create authenticity and trust in their work which can distinguish it from the other players in the market(Blackburn, Hart and Wainwright, 2013.)
3.1 Existing business objectives and plans
Framing business objectives and plans are very important for any business as it defines the base for doing its activities. It defines where the business wants to go in the future and time-specific targets to be achieved(Shah and Ram, 2006)
Shine communications believed in the expression of shining. It believes in doing its work which leads to the glowing future for it and the people it serves. As per the present requirement, it is planning to use LIS Shine the mailing list and other social websites in order to make people aware of new posts, new applications in their nature of work(Gronum, Verreynne, and Kastelle, 2012). Further, they are planning to take the help of LinkedIn and Twitter to provide training and development to their staff where its members can share their experiences and skills with the other people linked to social media.
The main objective of Shine Communications is concentrated to focus customers first by applying their intelligent mind in creative thinking so that right type of work is delivered to the right people in a cost-effective manner. As it believes in promoting the new changes in their client business in an innovative way with maintaining the quality in their work.
3.2 Revision of business plans to incorporate changes
Shine communications maintaining its present objectives in the proposed area of its introducing itself in the marketing research can further make necessary changes in its business plans so that this area can provide it with the amount of revenue it expects. For it, the company should raise its profit targets so that the team has the target to achieved and accordingly they can work as per the target set. Further business plans should be such that they provide a flexibility to amend it as per the changing environment(Bridge and O'Neill, 2012).
Therefore as per the suggested new area that is market research shine communication should plan about the ways of conducting the research of gathering the required data. Having a plan about various methods helps the firm to select the most appropriate method among them. For successful implementation of the method selected shine should employ the requisite professionals to carry out the fieldwork as well as handling the indoor work and finally a plan of reaching the target customers which involves both existing and new customers by various medium including advertising through social media, and other methods of communications(Reid, 2007).
3.3 Action plan to implement changes
Action plans serve as a guide to carry out day to day functions and activities, especially in a small scale company. It should be constructed keeping in mind all the strategies so that it can contribute in a positive and most beneficial way in the implementation of business activities.
While developing an action plan some questions need to be answered like what has to be achieved as it plays an important role to frame out the steps in order to achieve it. For it information can be collected from the direct contact that is the top management of the company who can specify what exactly they want for the company from the new provision of service and they going to shine's media activities to find out its present scale of work and feedback of various customers(Jenkins, 2006).
- EXCLUSIVE SEASONAL OFFER
UPTO 50 %OFFOrder Now
Extra 5% off on App
After answering this the function of delegation comes into picture that is assigning responsibility to various employees so that a full-fledged activity of marketing research can be divided into small tasks that will be easy to achieve. For delegation activity to be successful it is very necessary to see that the present requirement regarding professional workforce is met by the company and if not the action plan also includes recruiting the appropriate staff in a particular time frame so that carrying out the change will not be delayed beyond the decided time. The correct human resource will lead to the achievement of targets in a more effective and efficient manner.
4.1 Impact of the proposed change on the business and personnel
Implementing change in any organization is not easy. It is resisted by the employees and the present employees as it affects the present working of the workplace. While introducing the new area possibility that the present areas of operations might get neglected and their changing requirements might not get adhered to although it is very necessary for a small business to bring out changes in order to grow but it is not recommended as it can lead to collapse of the entire organization in the form of its structure and level of working as because of the introduction of the new area new recruitment process are conducted to fill the new areas which altogether changes the organizational hierarchy which further changes their pattern of working power of delegation, nature of responsibility and leadership patterns, in all changing the way in which the decisions flow(Chell, 2007).
Further, the changes tend to change their existing business policies as there are changes in the company's aims, targets, structural and functional patterns. Further, the business will take more ways to achieve its targeted profit and to gain market ownership by gaining more and more customers locally and nationally. With the proposed new area the present employee can feel neglected as they have no knowledge about how and what can be the necessary outcome of the required change. There can be a loss of team spirit between the employees because of the introduction of new personnel among their teams or the formation of entirely new teams.
4.2 Ways to manage the changes
It is very important to manage change so that the proposed area can only work towards in a forward direction for the company. In order to manage the changed organizational structure and avoid confusion among the present and new personnel proper authority and liability chart should be prepared so that the employees know to whom they need to report and what is the nature of their liability(Spence, 2007). To whom they need to address their problems for various kinds of problems they face at the implementation stage of the new area. Further, in order to manage the changed policies, proper discussions should be conducted among employees so that the new policies should include their involvement which ultimately leads to making the respective policies understandable to the employees in a fast and easy way.
Apart from this to have the positive effect of the required change on the employees so that they can work in different departments in a flexible and without hesitation proper study is required from the existing staff, for it, the company should provide the employees with various study materials on their implementation so that the new area can prove one of the major areas for the company, and inter-department discussions should be promoted so that different departments can be aware with the various problems face by each other so that new and innovative methods can be provided to solve the problems within departments but also with the help of various departments in the company which ultimately leads to the building of team spirit and achievement of the objectives as a whole(Street and Cameron, 2007)
4.3 Monitor improvements in the performance of the business in the given timescale
It is not only to manage changes but equally important to manage them in a decided timescale so that the achievement of targets is not postponed and an obvious path is not provided to competitors for entering the market and establishing its roots. For it, the management should be informed about the current performance so that monitoring of the performance can be done. To identify the level of working in current performance key performance indicators should be identified(Malhotra and Temponi, 2010)
The major key performance indicators can be what is the impact of various areas on the financial performance of the company. Views of clients on the quality of delivery of services in various areas of operations and finally views of the personnel regarding their work and relationship with the firm as a whole. The company must identify a specific time frame in which to measure these aspects of current performance like checking the progress after three to six months of area of introduction so that it can exactly find out that the proposed area is providing a bottleneck for the small scale company growth or working as an enhancing tool to make the company successful further.
Studying financial performance of the company after introduction of the new area that is market research it can be easily be found out that how much revenue is increased because of this service and monitoring continuous feedback from the customers can help to introduce further changes from time to time so that the operations are not affected because of the change in the requirements and finally the personnel view about the current performance can be helpful in overcoming the difficulties they are facing in proper conduct of their part in the efficient discharge of their performance(Dobbs and Hamilton, 2007).
With the present report, it can be concluded that with proper functioning and planning regarding the changes to be introduced in the small business it can work in a better way and can establish its position in the market. In order to grow strategically well business development planning is also very necessary, the small business from time to time frame business development and expansion strategies so that it can compete in a well-planned manner with its competitors and can the changing requirements of the industry and company as a whole(Blackburn, Hart and Wainwright, 2013).
Further, the planning should also include the major impacts of the expansion on the present organization and personnel so that it is ready to overcome it also and does not disrupt the existing and newly frames business goals and objectives.
- Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business, strategy and owner-manager characteristics. Journal of small business and enterprise development
- Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small business. Palgrave Macmillan.
- Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave Macmillan.
- Cambra-Fierro, J., Hart, S. and Polo-Redondo, Y., 2008. Environmental respect: ethics or simply business? A study in the small and medium enterprise (SME) context. Journal of Business Ethics
- Carter, S. and Jones-Evans, D., 2006. Enterprise and small business: Principles, practice and policy. Pearson Education.