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.
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 effective manner.
Further, to involve customers in decision making process, management of Coffee Shop can take the help of survey method (Keil and et. al., 2008). It is focused on understanding the needs, demands and expectations of buyers by filling questionnaires through them which includes a range of questions regarding the products, services and business practices of company.
1.4 & 2.4 Strategies to involve stakeholders in decision making process and suggestions for further improvement
Involvement of stakeholders in decision making process is very beneficial for company by enhancing the effectiveness of decisions taken by management. In case of customers, online survey is the best method which helps management to understand the reviews of them. Information given by service users in this survey must be kept in secure manner for promoting their privacy. Along with this, it is required for business entity to organize the meetings of shareholders on time to time in order to provide them detailed information about the financial decisions of business.
In today’s competitive world, it is very necessary for company to satisfy its employees in an effectual manner in order to achieve its business objectives. Due to this aspect, management of Coffee Shop needs to share their ideas and thoughts with human resources and taking suggestions from them. Availability of this procedure leads to enhance the motivational and confidence level of staff members in more effective way.
3.1 Existing process of communication used by the management of HMRC
HMRC is the taxation authority in United Kingdom which works is to HMRC is the taxation authority in United Kingdom which works is to collect tax revenues from the business in order to support the policies and practices of government. Along with this, it is focused on rendering the proper guidance to other businesses related to conduct the practices of taxation, employment and loan repayments. In accordance to given case study, appropriate methods are used by the management of HMRC to maintain the internal communication with employees and external communication with customers and other stakeholders. In case of written communication, email system is used by the organization through which proper information related to payment schedules and tax liabilities have been communicated.
While, conducting the oral communication, rights have been given to customers to call the employees in the office hours for resolving their queries. Further, face to face communication is also preferred by the management of company for reducing the chances of misunderstanding. By considering the recent scenario, organization is focused on providing the online service to customers by which they can pay taxes through using internet. In order to develop effective communication with employees, management adopts the methods of meeting, presentation, emails, internal memos and staff magazines.
3.2 Ways to improve appropriateness
In order to improve existing communication process, it is required for management of HMRC to enhance the effectiveness of their complaint procedure. This procedure must be available on the official website of company and it should be accessed by the authorized person (Meredith, 2012). Moreover, business entity should take corrective actions in very quick manner as per the complaint registered on the site. In case of customers, oral conversion and face to face communication are the most appropriate for resolving their issues and queries.
Therefore, it is requited mostly for organization to enhance the effectiveness of oral communication by rendering proper training to employees. In case of employees, they should involve all of them in the process of decision making at the time of creating strategies and policies (Beamer and Varner, 2008). Due to this, democratic leadership style needs to be adopted by management at the time of communicating with workforce.
3.3 Implementing the improvements for enhancing the effectiveness of communication systems
In modern era, it is crucial for HMRC to enhance the effectiveness of its systems for maintaining communication with stakeholders in a proper way. By considering this aspect, it is required for management to adopt new and innovative technology as per their requirements (Fera and et. al., 2006). For enhancing the effectiveness of oral communication, employees of HMRC needs to treat effectively and behave ethically with customers. In case of written communication, sent emails must be arranged in systematic manner for providing information properly to customers and employees.
In order to use the complaint procedure available at official website in an effective manner, proper guidelines should be given to users by the developers. By using those guidelines, user can deal effectively with the complaint procedure for registering their complaints and resolving their queries regarding the taxation and other services (Schneider and Hollenczer, 2006). In addition to this, organization needs to conduct time to time meeting which is the best solution for maintaining effective communication with stakeholders.
3.4 Creating a personal communication and development plan
For creating a better development plan, it is required for me to gain knowledge regarding my strengths, weaknesses, opportunities and threats.
- My communication skill is very effective because I am always focused on participating actively in the decision making process.
- My coordination skill is also very appropriate because I try to develop better communication with my juniors in order to understand their issues and problems.
- Time management skill is not appropriate.
- Decision making skill is not so effective.
- In my organization, conferences and seminars are organized by management which is the best opportunity for enhancing and improving my skills in more effective manner.
Due to non-availability of time management skills, I am not able to complete my work on time which leads to decrease the effectiveness of my performance.
In accordance to this SWOT, some objectives have been included by me in the personal development plan with the solution to achieve these objectives. These are as follows:
- I am focusing on enhancing my communication skills in more effective manner. Due to this, I always try to give presentation in the front of team members, subordinates and superiors.
- In order to enhance my coordination skills, I am focused on communicating with new staff members as well as the existing employees.
- For improving my time management skills, scheduling and priority methods have been considered by me to set time according to availability of work.
- In order to recover loopholes in decision making skill, I am focused on reading the case studies and recommending solutions for resolving the issues available in it.
4.1 Existing approaches of collecting, formatting, storing and disseminating of knowledge and information
Market research is defined as one of the organized, systematic and effective approaches that helps researcher to gather data and information in order to identify the availability of market trends as well as customer’s demands. There are mainly two types of research including qualitative and quantitative. Qualitative research is considered as a study that includes a method of enquiry that uses qualitative process. In this research, data and information are collected for the purpose of exploring phenomena. In this research, instruments use flexible and interactive style of eliciting and dividing the responses of respondents towards the questions (Fera and et. al., 2006). While, quantitative method is focused on confirming hypotheses towards the phenomena. In this research, rigid style is used by the instruments at the time of eliciting and dividing responses towards the questions. Quantitative research involves close ended questions, while qualitative consists of close ended questions.
Research approach consists of a range of plans and procedures that assist researcher to collect data and information in an effectual manner in order to achieve the objectives of research. In case of research approach, mainly there are two types such as inductive and deductive. Inductive approach is focused on observing the responses of the respondents in order establish its own theory at the end of research, while deductive approach starts with understanding the theories other in order to observe the responses of the respondents.
In the particular situation, inductive research was used by me to draw valid conclusion as well as findings. Along with this, in order to collect data and information, both types of primary and secondary sources had been used by me. In my research, direct personal observation method was considered by me for collecting primary data. According to this method, face to face communication is used by the researcher with the respondents for gaining information and knowledge. Using this technique was the best opportunity for me to collect accurate data and information regarding the subject matter. Along with this, questionnaire method was also considered by me in which several questions are asked to different people for understanding their needs and requirements as per the current market trends.
In case of secondary data, the method of internet was used by me for gathering information. Internet includes a range of online articles, journals and other websites that had been used by me in my research methodology. By using internet, valid conclusion and better findings of research had been drawn by me in accordance to collected data. In order to store the information collected from the respondents as well internet, written documents had been preferred. At the time of conducting research with the above approaches, several issues were faced by me. Among the all issues, availability of wrong information and mis-representation on internet is the major issues along with convincing respondents to give their proper response at the time of collecting information.
4.2 Changes for improving the existing approaches of data collection and maintenance
In the above situation, inductive approach of research was considered by me to collect data and information. This approach directly focuses on taking responses from the respondents with understanding any type of theories and existing researches. Availability of this approach can lead research report to the misleading information and less satisfaction of research objectives. In order to deal with such situation, deductive approach can be selected that firstly focuses on understanding the theories made by other individuals as well as existing researches conducted by other researchers. By using this approach, my friend will be able to understand the weaknesses and challenges faced by the existing researchers as well as to identify the availability of trends and issues that can affect the market research.
Along with this, written documents were used by me and my friend to store the data and information collected from the internet as well as respondents. This is a traditional method can lead to enhance the number of errors at the time of storing, formatting and disseminating of information. For resolving this issue, computer applications such as MS word, MS excel and MS PowerPoint can be considered for storing, formatting and disseminating of information.
In order to improve the procedure of collecting, storing, formatting and disseminating of information, following steps can be considered.
- At first, it is necessary to understand the needs of improvement in order to make effective strategy.
- In second step, standards are needed to be set for comparing the availability actual performance with standards (Coombs, 2014).
- In third step, comparison of actual performance with standard takes place for the evaluation of errors.
- After identifying errors, fourth step includes the selection of right methods for adopting improvement.
- At last, improvements are reviewed for ensuring the effectiveness of the changes.
4.3 Appropriate strategy for improving the access of information system
In order to improve the access of information systems, it is required for my friend to collect data and information from the reliable resources and those data must be analysed in an effective manner. Further, it is needed to adopt new and innovative technology for collecting, storing and disseminating of information. Along with this, there is needed to develop an effective strategy for improving the access of information system. This strategy includes a range of steps that can help users to effectively access information as well as information system. These steps are as follows:
- Recognizing the factors of complexity.
- Understanding of aim and objectives.
- Focus on adopting right information as well as systems.
- Proper understanding of costs and benefits.
- Prioritising the type of information as per their needs.
- Availability of proper guidance.
- Proper recognition of risks.
- Effectiveness of communication (Schneider and Hollenczer, 2006).
With the availability of an effective strategy, there is also necessary to have effective systems in terms of information and technology. In the modern era, following systems such as database management system, digital asset system, web content management system, document management system, record management system, learning content management system, learning management system and enterprise search system can be used to access all types of information in an effectual manner.
As per the above study, it can be concluded that communication is one of the important aspects of business development which aim to develop strong relationship in between the management of company and various stakeholders. Along with this, it is necessary for business entity to ensure the practices of record keeping for collecting, storing, formatting and disseminating data in a systematic manner. For maintaining proper communication and ensuring record keeping, new and innovative technology must be adopted by the management of company.
- Biltz, G. and Ruegg, G., 2005.U.S. Patent Application 11/578,309.
- Bremner, S., 2008. Intertextuality and business communication textbooks: Why students need more textual support.English for Specific Purposes.
- Coombs, W. T., 2014.Ongoing crisis communication: Planning, managing, and responding. Sage Publications.
- Dewatripont, M. and Tirole, J., 2005. Modes of communication.Journal of Political Economy.
- Evans, C., Carlon, S. and Massey, D., 2005. Record keeping practices and tax compliance of SMEs.eJournal of Tax Research.