The report aims at analysing Pete’s Cheap Car Sales business that is in operation at Melbourne city. The company is small and recently is experiencing some problems like decision-making strategy and stagnating profits. Stagnating profits if not well dealt with, it will lead to failure of business as it turns from stagnating profit to losses and eventually at the ends it fails. Strategic planning is a vital necessity in every industry as it provides efficient plans and tactics to perform duties that will yield high productions at the end (Hammond et al., 2007). With strategic tactics that facilitate development without stifling profit precincts, an individual can breeze through the growth table storm and appear with good revenue, happy workforce and time to essentially perform as anticipated. The report further describes methods that tend to the application in enhancing proper decision making. Decision making is an organisational aspect that plays a significant role in ensuring effective functioning from the staffs to the executives.
Even the principal companies around the groups have breaks in overall production or sales. A study by Slawinski and Bansal (2015) states that this is a fragment of the corporate lifecycle as specific outputs have a busy era and one where numbers appear to dip. Extenuating the times when things are not going as expected it is important since if a business can turn a conventionally poor quarter into one of the sturdiest, the profits at the completion of the year will rise steeply. Merely accepting that a definite part of the year is sluggish is not what a performing manager or executive should enhance.
As Pete’s Cheap Car Sales business tends striving to grasp excellent presentation at all times of the year is not realistic, but it cannot upset to achieving the goals that are set.
The company to my view has the weak or ineffective administration as mostly seen in many small businesses but is most widespread in big running organisations. The business is small as it only has two senior staffs who runs the whole business thus lacking abundant strategic plans where they slag proper operations. In several of the smaller corporations, the proprietor is very capable at whatever the company operates, but neither he nor his workforces have had much acquaintance of managing a contemporary business (Scholes 2015). There is noteworthy resistance to change enforced aspects by the market conditions. I feel that the company lacks information and control systems and this further exaggerates the situation. Classically we find that the company is only reacting to problems and are always left behind thus not effectively competing in the outside market. The company executives lack information on the overall condition and tend to ponder only on what they can prime, sometimes to the damage of the general business. The absence of control systems permits for significant eccentricities in buying, catalogue, scrap and receivables.
Corporations of this class do not know their factual costs and require significantly more working capital that should be essential for an establishment of their size (Hubbard, Rice and Galvin, 2014).
Stagnating profit from Pete’s Cheap Car Sales Company mainly tends enhancement by vehicle types that takes a long period in the yard before they are purchased. As thy stock in the yard, the business uses the extra cash in their maintenance which in turn reduces the profit acquired after sales. Due to this aspect, the executives should have trends of the vehicles that are selling fast and those that are taking too long before being purchased (Olson et al., 2018). To enhance high-profit realisation, they supposed to bring vehicles that are highly purchased and in less time since they will bring high profit in less time hence reduce the disadvantage of profit stagnation. Prestige cars for instance, in this case, they tend taking one hundred and sixty-three days before they are purchased which means they have high costs of repairing. The repairing cost and certificate costs amount to about $980.0, and that amount will thus be deducted from the profit enhanced after sales of the vehicles.
The Company realized profits in every month apart from April where they operated in loss. However the profits amount after total deductions reduced after one month to another. This meant that the business did not operate as anticipated reason that every business operates with aim of improving profits from the previous acquired profits.
|
Total profit after deductions |
|
|
JAN |
95055 |
|
FEB |
66605 |
|
MAR |
45978 |
|
APR |
-15525 |
|
MAY |
35817 |
|
JUN |
51224 |
The company needs to know that contests work as pronounced when it comes to auctions teams since people who are competitive commonly prosper in sales. This could be a squad contest or discrete contest contingent on the department of implementation. It is significant to keep the challenge exciting with weekly apprises, so individuals do not grow bored stiff of this and end their partaking (Ims et al., 2015). The extent of the contest, as well as the recompenses, will have a massive impact on the workforce. A yearlong challenge that is being controlled by someone is not as fascinating as a monthly competition with a new schedule enhanced on a monthly basis. The contestants will upsurge to the top, and this can also shape great team surroundings but make sure that things do not get too intense between persons or teams.
In enhancing that the profit margin is at higher levels, Peter as the business owner must always squeeze an entrepreneurial boldness to see and grab the right chances especially those formerly unseen. This is why he must clinch an entrepreneurial essence when prospecting the right customers in assuring that the business not only propagates but endures itself over time. According to Galbraith (2014) making sales is all virtual and if the business is selling to clients whose corporate needs are not justifiable, this tends to represent a zero-sum game. If peter lacks the right apparatuses in place to overlook the right customers, his business will find it hard to sustain development and improve the profit realised over the time. Embracing a commercial attitude allows one to see beyond the palpable and spot the superlative clients in the sustenance of the business archetypal. This keeps purchase costs low and promises client relationships are equally beneficial and goalmouths are in configuration.
Also, will recommend Peter, during promotion aspect he should significantly consider the background of work performed by the staffs in the previous job. If a particular staff fully dedicate his duties during times for trifles, they may not be visible to managerial expertise, and this will be their drawback when they are asked to head a team. Again, the abundant technician does not mean they are a pronounced manager, or furthermore, the great frontrunner. In deciding the right staff to promote to the vacant post (senior sales person) which is critical for management, success is the aptitude to be creative. Having an intense sense of how to achieve goals and get results deprived of having ample support brands one as a star in the most system today (Bansal, Pratima and Mark DesJardine, 2014). Peter should ask himself whether this individual has demonstrated an aptitude for finding conducts to get things performed when the workforce is petite, budgets are slender and the less deadline.
References
Bansal, Pratima, and Mark R. DesJardine. “Business sustainability: It is about time.” Strategic Organization 12, no. 1 (2014): 70-78.
Galbraith, J.R., 2014. Designing organizations. Jossey-Bass & Pfeiffer Imprints, Wiley,.
Hammond, A.L., Kramer, W.J., Katz, R.S. and Tran, J.T., 2015. Courtland Walker.(2007) The Next 4 Billion: Market Size and Business Strategy at the Base of the Pyramid.
Hubbard, G., Rice, J. and Galvin, P., 2014. Strategic managment: Thinking, analysis, action. Pearson.
Ims, S.D., Li, Y., Lusardi, R.J. and Xing, J., International Business Machines Corp, 2015. Capacity on-demand in distributed computing environments. U.S. Patent 9,137,324.
Olson, E.M., Slater, S.F., Hult, G.T.M. and Olson, K.M., 2018. The application of human resource management policies within the marketing organization: The impact on business and marketing strategy implementation. Industrial Marketing Management, 69, pp.62-73.
Scholes, Myron S. Taxes and business strategy. Prentice Hall, 2015.
Slawinski, N. and Bansal, P., 2015. Short on time: Intertemporal tensions in business sustainability. Organization Science, 26(2), pp.531-549.
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