Every business must have a business plan, a business plan describes missions, objectives, and goals that a business should pursue and sets strategies and actions necessary to achieve them. A good business should entail feasibility as well as visibility studies carefully carried out to provide relevant information to the user to make appropriate decisions. These studies are very instrumental to entrepreneurs willing to invest in different market segments but lack adequate information as to the market needs, financial requirement, legislation procedures, and customer requirements, etc (Business and Government, 2009).
In this paper, we take a critical look at some of the significant and crucial issues that need to be properly addressed before undertaking to commit such investments. This is conventionally desirable so that success can be most likely. In this situation, we begin by defining the goals of a business. I have chosen a global Computer Consultant as our business venture (Tim, 1996).
This is a global computer consultant that specializes in providing computer services to its clients both domestic and international borders. The main goal of this company is to provide world-class computer service to its clients and at the same time provide the best return to its institutional shareholders. Most profit-oriented businesses exist in the industry to make a profit. In doing this a balance needs to be struck so that no conflict of interest arises (Business and Government, 2009).
The company exists to provide a range of services that include troubleshooting, email functions, drive replacements, installation, web designs and configuration. The broad spectrum of our services can be said to include, upgrades, consultations, system customization, tune-ups, computer forensic analysis, hardware and software management, property digital surveillance, and security issues. Customer target (Tim, 1996).
Our main customer targets include both small businesses and corporations from across the divide. We operate many branches on the globe and we are now considering diversifying our products to match the customer requirements so that we can be able to achieve our desired objectives successfully as we can. We are also planning to introduce personal computer services; this will be tailored to meet the specific needs of individuals with any digital possessions. We currently do not have branches in Africa and plans are underway to exploit new and existing market opportunities in the region. We have selected countries that we deem to be having business potentials. These countries include Egypt, South Africa, Kenya, Nigeria, Ghana and Libya. (Business and Government, 2009)
With the increasing competition in the market place, we realized that some our local branches are not doing a worthwhile business and were closed definitely. To cut operational costs, our responsibility is to carry out a cost-benefit analysis on a timely basis to determine the viability of certain specific long-term objectives (Tim, 1996).
Strengths that could be associated with our business venture
Strengths are certain advantages that accrue to a business as a result of its position in the industry, size, management and its entire environment. These strengths can be identified with economies of scale. In this business, we pride ourselves on a 24-hour business that ensures that we are available any time of the day or night. We have also been able to maintain our competitive advantage by using information technology. We operate different sophisticated information technology systems that require specialized skills and technical competencies. We realized that in this industry, these systems are only available at our organization and have given our competitors sleepless nights (Business and Government, 2009).
Maximum use of technology has also ensured that we have achieved our cost-effectiveness by being efficient. This has provided us with an opportunity to adopt a cost leadership approach where we focus on offering executive services to our esteemed clients at relatively lower prices than our competitors. We rely on carrying out rigorous and vigorous recruitment procedures that have ensured that we have the best human resource in the industry. This has created a culture of professionalism and innovativeness in our organization and most medium-sized entities outsource from us.
We also operate an international business that has enabled us to record big profits, reasonable enough to absorb all fixed as well as variable costs. This ensures that there are surplus profits to invest in other regions (Tim, 1996).
These are failures and disadvantages that arise from a business entity’s inability to make proper planning decisions. Weakness may also arise from a business’ position to record insufficient profits. This might be followed by a constant period of losses and liquidity problems. In this situation, the future survival of an organization can be put into question. Fierce competition, lack of innovation, training, bad management are requisites for weaknesses (Business and Government, 2009)
We received a complaint from our overseas client claiming that her concerns were not fully addressed. This became a big problem in our organization eventually leading to some employees being shown the door. This could probably be our weakness. Our customer response for the last two months has been put into question. This has been attributed to over-expansion. We, therefore, decided that all expansions programs be put on hold until any successful feedback on customer care is received (Gradual Net works, 1995).
Another problem is the pace at which we are studying our competitor’s moves in the market. Although we have technically and professionally qualified individuals to take the company up to where it should or want to be, we are slow in responding to market needs. These are some of the weaknesses associated with our business (Tim, 1996).
The legal environment
Multinational organizations with several branches across the globe should be able to observe local as well as international legislation that becomes the subject of their businesses. Most businesses have been closely following their inability to comply with legislation affecting their businesses. It is so that compliance is given priority in every stage of business activity. In some cases, enterprises have lost public confidence by failing to observe local regulations such as that of Environmental Conservation, Child labor, Equal opportunity Act, and Employment Contract laws (Gradual Net works, 1995).
All enterprises are under obligation to follow the laws. If for instance, a business considers international expansion an option then there should be adequate and relevant mechanisms to achieve this option. Compliance gives credit to certain businesses and helps build their reputation and public image. (Tim, 1996).
To start and operate a business in California one needs to have the following document: Californian Business Portal, this is a business document required that describes all the relevant legislative requirements suitable for operating a business (Business and Government, 2009).
Business plans are instrumental in giving direction for entrepreneurs. It is significantly important to consider factors perceived to be core in the overall performance of the business. Most businesses have been started and closed due to on grounds of inappropriate planning, incompetence, and bad management.
When making decisions on market expansions organizations should ensure that all the relevant laws and regulations are complied with. This will reduce risks that can befall a business as a result of non-compliance.
List of References
- Business and Government. (2009). Operating a business in California.
- Gradual Net works (1995) Business Entity Plan.
- Tim, B. (1996). Legal Entities, Licenses and Permits.