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Commercial Entity Development
In today’s competitive world, it is the most essential for Commercial Entity To Develop better relationship with stakeholders for performing its business practices in an appropriate manner. Due to this, it is required for the management of company to maintain effective communication with all stakeholders (Biltz and Ruegg, 2005). Availability of proper communication leads to enhance the level of satisfaction and trust of all stakeholders towards the business entity.
Along with this, it is helpful for organization to fulfil its goals and objectives very quickly. By considering this, present report from Global Assignment Help Australia is focused on describing the importance of communication in new establish business along with including the description of decisions needs to be taken by management at the time of opening new business.
1.1 Range of decisions needs to be taken for operating a new business
In order to start a Coffee Shop, first decision needs to be taken by David and his friend is related to the financial resources. Without finance, it is not possible for them to operate a new business (Evans, Carlon and Massey, 2005). Due to this aspect, it is required for them to consult with investors and financial advisors for the availability of capital. Along with this, decision regarding to select the location of coffee shop is one of crucial action on which the success of this business depends mostly.
For entering into new market in an effective manner, it is necessary for the owner of business to evaluate the strategy of major competitors along with identifying the factors such as political, legal, economical, technological, environmental and social (Agarwal and et. al., 2006). Clear understanding of competitor’s strategy and those factors assist both of them to make appropriate strategy for their business launch and gaining competitive advantage. Moreover, David and his friend should take proper actions for identifying the requirements of customers in order to provide better products and services to them.
1.2 Examination of the knowledge and information needed to take decisions
There are following types of information and knowledge which are necessary to be considered by David at the time of making their business decisions. These are as follows:
Success of business mostly depends upon the satisfaction and loyalty of customers (Keil and et. al., 2008). Due to this aspect, it is necessary for the owner of business to identify the needs and demands of customers for providing them better quality of services in accordance to their requirements.
Identification of competitor strategy is most essential for the management of Coffee Shop for gaining competitive advantage in this competitive world. Clear understanding of competitor’s strategy helps management to take further actions regarding to modify and improve its services and practices (Evans, Carlon and Massey, 2005).
It is required for the business’s owner to follow the rules and regulations of government in order to perform its practices in a legal manner (Moody and et. al., 2009). Considering laws of government at the time of making its policies is very beneficial for Coffee Shop by enhancing its brand image among general public and stakeholders.
Main aim of HR policies is to provide healthy environment to human resources of company by satisfying their needs and expectations in an effectual manner (Agarwal and et. al., 2006). Proper knowledge of these policies helps business to manage its employees in a proper way for fulfilling its goals and objectives.
1.3 Internal and external sources of information and knowledge
Internal sources include a range of individuals working within the company through whom primary information can be collected. These sources are mentioned below as:
Financial controller or Accountants
These professionals are responsible for providing the financial information regarding the cost, revenue, expenditure, profit and loss of business (Scholl and et. al., 2007). Furthermore, they are focused on ensuring the effectiveness of financial information in order to set budget in an effective manner.
This department is focused on rendering the information regarding the availability of current trends and issues in market as well as strategies adopted by the competitors (Coombs, 2014). Along with this, it works is to gain knowledge about the demands of customers in order to make available that product or service.
It is the responsibility of employees to provide personal information to the HR manager when asked by him or her (Internal sources of information, 2013). Due to this, business can gain information regarding their performance, productivity and development needs.
On the other hand, external sources are focused on collecting information from the outsiders of organization. These are as follows:
With the help of government information, business entity can run its business in more successful, ethical and legal manner. Information provided by government is always reliable and based on the current trends and issues available in market (External sources of information, 2013).
It can be defined as the group of businesses which operates in the same industry instead of same location. The members of this association have the rights to access the information regarding to run business and enhancing the development of company (Keil and et. al., 2008).
2.1 Identifying the stakeholders for decision making process
In case of Coffee Shop, there are following stakeholders which are necessary to be considered while taking decisions. These are mentioned below as:
Shareholders can be defined as the investors of business which pays money to company in the return of its shares (Fera and et. al., 2006). For enhancing the number of shareholders, it is required for David to give proper partnership to them in the profitability of business.
Suppliers refer to the businesses which provide raw materials and machinery to the management of company for processing of products and services (Schneider and Hollenczer, 2006). For David, it is necessary to maintain strong relationship with suppliers in order to get better quality of goods.
Customers are the key players of business which influence the management of Coffee Shop to maintain the quality of its products and services (Beamer and Varner, 2008). Fulfilling the needs of service users is the major reason for the success of business.
In order to provide appropriate customer service, there must have the availability of trained and experienced staff at workplace (Meredith, 2012). Availability of effective human resources leads to enhance the level of customer satisfaction and loyalty by rendering better services.
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2.2 Development of business relationship with stakeholders
In order to develop better relationship with separate stakeholders, there are following ways which can be used by the friend of David in its business. These ways are differ from one to another stakeholder (Evans, Carlon and Massey, 2005).
For developing effective business relationship, it is required for the management of Coffee Shop to render detailed information to its shareholders regarding its strategies, policies and other financial transactions (Moody and et. al., 2009). Due to this, business entity needs to maintain communication through their official websites and annual reports.
In case of suppliers, David can take the help of temporary partnership with them by providing shares and other benefits (Scholl and et. al., 2007). Along with this, it is needed for business to pay its suppliers on time to time for the creation of strong relationship.
Honesty is one of the key factors at the time of maintaining the relationship with customers. Due to this aspect, it is required for David to communicate accurate information of service users through marketing campaign (Stern, 2008). Further, it is needed for management to treat well with all types of customers.
Providing better working hours, salary and incentives are very necessary for the owner of business in order to develop better relationship with human resources. Along with this, focusing on the productivity of employees is also put their positive impact on the business relationship in between the both of them (Agarwal and et. al., 2006).
2.3 Involvement of stakeholders in the decision making process
For involving stakeholders in the decision making process, meeting is an appropriate method which can be used by David. At the time of conducting meeting, it is required for management to involve all shareholders, suppliers and human resources in this process. With the help of this method, business entity can communicate effectively with all of those stakeholders as well as can take their suggestions, ideas and advice (Evans, Carlon and Massey, 2005). Availability of time to time helps company to develop strong relationship with all of them along with satisfying them in an effecti