Preliminary forecasting and research are an integral part of any competent business strategy. One of the most multipurpose types of provisional study that covers all layers of the upcoming business project activities is a feasibility analysis. Feasibility analysis is the process of confirming that a strategy, plan or design is possible and makes sense. Novice entrepreneurs and experienced business people begin the practical implementation of their business ideas, primarily with this specific assessment technique. Nature and Objectives of the Feasibility Analysis First of all, the feasibility analysis is a method of evaluative research. Studying various aspects of the future business project from the financial to the legal component, the specialist determines the degree of the feasibility of the practical implementation of an entrepreneurial idea. A feasibility analysis evaluates the project’s potential for success; therefore, perceived objectivity is an essential factor in the credibility of the study for the potential investors Continue reading
Management Concepts
Three Perspectives on Organizational Change
Organizational change is best achieved by setting a clear objective, carefully planning all necessary tasks, and following a detailed plan. The above statement is very true given the fact that failure to articulately effect change in organizations has led to unnecessary internal and external conflicts that breed business failure. Competition has gone global and the market and industry dynamics have necessitated the need for companies to make concerted efforts streamlined towards ensuring that high-quality goods and services are offered in the market at competitive prices. This has resulted in the adoption and implementation of several tools and strategies in change management geared towards the attainment of the aforementioned goals. A good example is the discovery of the internet that has enabled faster communication and easier access to knowledge. In addition to the above, globalization is tearing down traditional approaches to management. It is no wonder relentless change has become a Continue reading
Advantages and Disadvantages of Outsourcing Strategy
Outsourcing constitutes one of the fundamental sourcing strategies that organizations can adopt. Outsourcing entails an approach whereby certain business processes are undertaken by an external entity. Thus, outsourcing is based on a contractual relationship. The concept of outsourcing has gained remarkable significance over the past few decades. Traditionally, outsourcing was limited to peripheral organizational tasks. This trend is changing as evidenced by the high rate at which outsourcing is being integrated into diverse organizational activities. Organizations perceive outsourcing as an essential strategy in their commitment to value addition. Some of the industries that have adopted the concept of outsourcing include aviation, manufacturing, and medical services. Firms in the oil and gas industry are also adopting the concept of outsourcing. Organizations’ motivation towards this strategy has been spurred by the need to attain competitiveness concerning high return on assets and better and quality service delivery. Secondly, the pressure to outsource has Continue reading
7 Key Elements of a Business Plan
The aim of venturing into a business is to make profits. In this case, all elements of a business plan should be aimed at creating a successful entrepreneurial venture. A business plan is a document that indicates a plan on how an investment is to be conducted. It includes among other elements; generation of ideas, financial and market analysis, strategic objectives, cash flows and profits and loss forecasts. Other elements that may be included in the business plan are a balance sheet projections, competitive strategies and scenario analysis. All these elements contained in a business plan give an understanding of the current and future expectations of the business. They identify the business and give a rationale of investing in the said business. In this case, these elements should be comprehensive and a faithful representative of the actual situation of the business venture. If well drawn, the elements of a business Continue reading
Case Study of General Electric: From Jack Welch to Jeffrey Immelt
General Electric is one of the oldest conglomerates that are still actively present on the market. It consists of a wide variety of businesses and is involved in the production of a great multitude of items, resources, and services. The main segments of the company are focused on oil and gas production, renewable energy, aviation, additive manufacturing, lighting, healthcare, power generation, venture capital and finance, transportation, digital technologies, and lighting. General Electric is also involved in a variety of smaller enterprises which diversify its product line even further. The company was originally established in 1892 after Tomas Edison’s Electric Light Company and Thomas Houston Company were merged to create General Electric. The management of the company was focused on utilizing the numerous patents that Edison’s company held, especially those that were related to electricity generation and distribution. The company grew quickly by focusing on the adaptation of its technologies, a Continue reading
Causes of Low Levels of Workplace Productivity
Organizations which have goals to achieve require happy and satisfied staff. Organizational climate serves as a measure of individual feelings and perceptions about an organization. Organizational climate includes leadership styles or management, participation in decision making, provision of challenging jobs to employees, personnel policies, reduction of boredom and frustration, provision of good working conditions, provision of benefits and creation of suitable career ladder for academics, In case there is some form of dissatisfaction. The organizational climate is viewed as characterized by the following factors: Unchallenging jobs, lack of recognition for work done well through merit or announcements in meetings, shortage of personnel where they are expected to perform responsibilities, which were supposed to be performed by other employees, lack of feedback about performance, poor communication where there is no two-way communication between subordinates and managers and lack of staff development activities which prevent personnel from being equipped with skill and Continue reading