Organizational diagnosis (individual assessment)

Hide Assignment InformationTurnitin™This assignment will be submitted to Turnitin™.Instructions

You’ll learn about the small business you’ll be collaborating with throughout the term and will conduct a thorough organizational diagnosis using the PESTELE framework and SWOT analysis. The organizational diagnosis will help you to have a deep understanding of the external marketing environment and unique values of your client’s business. Based on the findings of your organizational diagnosis, you’ll develop a project proposal (which will be your next assignment) for your client. After that, you’ll be working on that project report. You’ll submit the project report and present the project at the end of the term. Therefore, your organizational diagnosis will be an important building-block for the rest of the projects for the term.

PESTELE analysis

A PESTEL analysis or more recently named PESTELE is a tool, or a framework used by marketers to understand, analyze, and monitor the external marketing environment (macro-environmental factors) that have an impact on the business. The results from the PESTELE analysis could be used to identify threats and weaknesses for a SWOT analysis.

PESTELE stands for:

Identify the significant elements under each factor stated above that could impact your client’s business, and then, discuss why they are important and what specific impact they might have on your client’s business. Elements under each factor will vary from business to business. Discuss the elements that matter for your client’s business.

SWOT analysis

Conducting a SWOT analysis is a powerful way to evaluate a business irrespective of the size of the business or the number of employees. The SWOT analysis is a technique that we use to determine and define a company’s Strengths, Weaknesses, Opportunities, and Threats. Most commonly, we use SWOT analysis to determine how closely a business is aligned with its growth trajectories and benchmarks for success. We assess and evaluate the internal and external factors through SWOT analysis.

Strengths (s) and weaknesses (W) refer to internal factors. These are usually the resources and experiences that are readily available to you. External factors, on the other hand, influence and affect the business and the individuals connected with the business. These factors are usually connected directly or indirectly to an opportunity (O) or threat (T). External factors are typically the things that your business does not control.

After you conduct both the PESTELE and SWOT analyses, come up with the following:

The founder/co-founder/manager of the business gave a presentation in class, and then, we had a Q&A and discussion. Based on information from the presentation and the Q&A as well the PESTELE and SWOT that you conducted for this assignment, (i) identify the three main challenges your client is facing and discuss why you think these challenges should be addressed, and (ii) thoroughly discuss the areas where your client’s business needs improvement to stay competitive.
Propose detailed strategies to overcome the three major challenges you identified.

Writing instructions

Your assignment will be graded based on the elements mentioned above in the assignment instructions as well as criteria such as the quality of your analyses and strategies; feasibility of your proposed strategies; quality and readability of your paper; grammar and punctuation; following the APA guidelines; etc. Please refer to the rubric posted in the course shell.
This assignment will be the outcome of thorough research. Cite your sources using the APA guidelines – both in-text citation as well as citation in the references section at the end of the paper. You should also follow the APA guidelines for formatting the paper.
Your sources should be peer-reviewed journal articles, trade journals, news articles, organizational websites, etc., with an emphasis on peer-reviewed journal articles. Feel free to reach out to our UCW librarians if you’d like to learn how to find peer-reviewed journal articles from our library website.
Use headings and sub-heads throughout the paper so that it’s easy for me to follow your points.
Use Times New Roman, 12-font, double-spaced.
Do not exceed 15 pages excluding the title page, references pages, and the appendix (if there's any). Write your name, ID, course title, and section in the title page.
The paper is due by 11:59 PM PST on the due date (please refer to the weekly schedule in the syllabus for the due date). Please submit the paper on Turnitin available in the course shell. You'll be able to submit the paper only once.
This assignment will be graded out of 100 points and its weight in the overall student's performance assessment evaluation is 20%.

Organizational diagnosis assignment rubric

Total marks of the

assignment 100

% score 0-59 60-67 68-71 72-75 76-79 80-84 85-89 90-100

Grades F C B- B B+ A- A A+

Matery level Beginning Developing Competent Exceptional

Standard level Below standard Approaching standard At standard Exceeds standard

Grading criteria Weight

Political factors 5

The discussion is

absent of lacks

relevance.

The discussion is

minimal and lacks depth

or specificity.

The discussion

provides relevant

insights on

political factors.

The discussion

provides exceptional

insights on political

factors.

Economic factors 5

The discussion is

absent of lacks

relevance.

The discussion is

minimal and lacks depth

or specificity.

The discussion

provides relevant

insights on

economic factors.

The discussion

provides exceptional

insights on economic

factors.

Social factors 5

The discussion is

absent of lacks

relevance.

The discussion is

minimal and lacks depth

or specificity.

The discussion

provides relevant

insights on social

factors.

The discussion

provides exceptional

insights on social

factors.

Technological

factors 5

The discussion is

absent of lacks

relevance.

The discussion is

minimal and lacks depth

or specificity.

The discussion

provides relevant

insights on

technological

factors.

The discussion

provides exceptional

insights on

technological factors.

Environmental

factors 5

The discussion is

absent of lacks

relevance.

The discussion is

minimal and lacks depth

or specificity.

The discussion

provides relevant

insights on

environmental

factors.

The discussion

provides exceptional

insights on

environmental

factors.

Legal factors 5

The discussion is

absent of lacks

relevance.

The discussion is

minimal and lacks depth

or specificity.

The discussion

provides relevant

insights on legal

factors.

The discussion

provides exceptional

insights on legal

factors.

Ethical factors 5

The discussion is

absent of lacks

relevance.

The discussion is

minimal and lacks depth

or specificity.

The discussion

provides relevant

insights on ethical

factors.

The discussion

provides exceptional

insights on ethical

factors.

Strengths 5

The discussion is

absent of lacks

relevance.

The discussion is

minimal and lacks depth

or specificity.

The discussion

provides relevant

insights on

strengths.

The discussion

provides exceptional

insights on strengths.

Weaknesses 5

The discussion is

absent of lacks

relevance.

The discussion is

minimal and lacks depth

or specificity.

The discussion

provides relevant

insights on

weaknesses.

The discussion

provides exceptional

insights on

weaknesses.

Opportunities 5

The discussion is

absent of lacks

relevance.

The discussion is

minimal and lacks depth

or specificity.

The discussion

provides relevant

insights on

opportunities.

The discussion

provides exceptional

insights on

opportunities.

Threats 5

The discussion is

absent of lacks

relevance.

The discussion is

minimal and lacks depth

or specificity.

The discussion

provides relevant

insights on threats.

The discussion

provides exceptional

insights on threats.

Identified three

challenges and

discussed why

The challenges are

missing or

insufficiently

discussed.

The challenges are

mentioned but lack

explanation or analysis.

The challenges are

clearly identified

and briefly

discussed.

The challenges are

clearly identified and

comprehensively

discussed.

Discussed areas for

improvement to

stay competitive

The discussion is

absent or lacks

relevance.

The discussion is

minimal and lacks depth

or specificity.

The discussion

provides relevant

insights on areas

for improvement.

The discussion

provides exceptional

insights on areas for

improvement.

Stratregies to

overcome

challenges

The strategies are

missing or

insufficiently

discussed.

The strategies are

mentioned but lack

details or feasibility.

The strategies are

relevant and

feasible for

addressing the

challenges.

The strategies are

comprehensive,

innovative, and

highly feasible.

Quality of research

and analysis 5

Limited or no

reesearch or

analysis is evident.

Some research and

analysis present but

insufficient or lacking

depth.

Adequate research

and analysis

supporting the

assignment.

Comprehensive

research and anlysis

supporting the

assignment.

Writing quality 5

Numerous

grammar, spelling,

punctuation, and

citation errors.

Some grammar,

spelling, punctuation,

and citation errors

present.

Minor grammar,

spelling,

punctuation, and

citation errors.

Excellent grammar,

spelling,

punctuation, and

citation accuracy.

Followed

assignment

instructions and

APA guidelines

The student did

not follow

assignment

instructions or APA

guidelines.

The student partially

followed assignment

instructions or APA

guidelines.

The student

followed

assignment

instructions and

APA guidelines.

The student

meticulously

followed assignment

instructions and APA

guidelines.

Prof. Bulzacki BUSI 660

Small Business Management

Week 3

https://www.linkedin.com/in/adrian-bulzacki/

WHAT IS VALUE PROPOSITION?

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• A clear statement that explains how a product or service solves customers' problems or improves their situation (relevancy), delivers specific benefits (quantified value), and tells the ideal customer why they should buy from you and not from the competition (unique differentiation).

EXAMPLES OF VALUE PROPOSITION:

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•Amazon: "Everything from A to Z." Amazon's value proposition is about offering a vast selection of products with the convenience of quick delivery. It targets consumers looking for a one-stop shop with reliable service.

•Netflix: "See What's Next." This encapsulates Netflix's commitment to providing a wide array of entertainment options, including exclusive original content, to its subscribers, appealing to viewers seeking convenience and variety in entertainment.

•Tesla: "Accelerate the World’s Transition to Sustainable Energy." Tesla focuses on the innovative aspect of its electric vehicles and clean energy products, appealing to environmentally conscious consumers who also value advanced technology.

•Zoom: "Bringing the World Together, One Meeting at a Time." Zoom's value proposition highlights its role in facilitating easy, reliable, and high- quality video communication, appealing to businesses and individuals who need effective remote communication tools.

•Spotify: "Music for Everyone." This statement underlines Spotify’s extensive music library accessible to a wide range of audiences, appealing to music lovers who want personalized and on-demand music streaming services.

•Google: "Organize the World's Information and Make it Universally Accessible and Useful." Google's value proposition is about providing fast, relevant, and comprehensive search results, targeting virtually everyone who uses the internet for information.

• LinkedIn: "Connect. Find. Be Found." This proposition reflects LinkedIn’s role in professional networking, job searching, and recruitment, appealing to professionals and businesses looking to expand their professional network.

WHAT CUSTOMER PAINS DOES YOUR BUSINESS SOLVE?

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• Long Wait Times: A mobile app for restaurant reservations helps customers avoid the pain of waiting for a table by allowing them to reserve a spot ahead of time.

• Expensive Transactions: A financial tech company offers low-fee or fee-free money transfers, solving the pain of high transaction costs associated with international money transfers.

• Complex Software: A tech company creates user-friendly software that simplifies complex processes, solving the customer pain of dealing with complicated interfaces and workflows.

• Lack of Healthy Food Options: A meal delivery service specializes in organic and healthy meals, addressing the pain of finding quick, healthy, and affordable meal options.

UNDESIRED OUTCOMES

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ANCILLARY

FUNCTIONAL

SOCIAL

EMOTIONAL These outcomes are additional inconveniences associated with a product or service. For example, a fitness center located in an area with limited parking might lead to clients feeling inconvenienced and stressed about finding a parking spot.

These refer to situations where a product or service does not work as intended. For example, a mobile app designed for online shopping crashes frequently, leading to customer frustration and loss of sales.

This involves the negative social impact of a product or service. For instance, a new restaurant causing increased traffic and noise in a residential neighborhood, leading to complaints from residents.

These are related to the negative emotional responses from customers or stakeholders. An example could be customer anxiety caused by a complicated user interface in a banking app, making it difficult for them to access their account information.

UNDESIRED OUTCOMES

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OBSTACLES

RISKS

These are barriers that prevent customers from accessing or using a product or service. An example is a high-priced premium service that is unaffordable for a large segment of potential customers.

These are potential hazards associated with a product or service. For instance, a data breach risk in a new fintech app can lead to concerns about the theft of personal and financial information.

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UNEXPECTED

REQUIRED EXPECTED

DESIRED

WHAT CUSTOMER GAINS DOES YOUR BUSINESS PROVIDE?

These are the fundamental benefits that customers expect as a minimum from a product or service. For example, in a smartphone, a required gain would be the ability to make calls and send texts.

These gains are not essential but are typically anticipated by customers. For a smartphone, expected gains might include a high- quality camera, long battery life, and access to a variety of apps.

These are the benefits that customers would love to have but do not necessarily expect. In the case of the smartphone, this could be features like advanced AI capabilities for personalization or a highly durable, waterproof design.

These are the benefits that customers did not anticipate but find pleasantly surprising. An example for a smartphone could be an innovative feature like a solar-powered charging capability or a unique health monitoring function that sets it apart from other devices.

SELECTED BASIC LEGAL TERMINOLOGY

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ExamplesTerminology

Unwritten law derived from judicial decisions based on customs and usages accepted by the people.

Common law

Body of laws passed by federal, state, and local governments.Statutory law

Gives Congress the right to “regulate commerce with foreign nations, and among the several states.”

Interstate commerce clause

States’ right to regulate business, including the right to use the force of the state to promote the general welfare of citizens. All laws must be based on the federal or a state constitution.Police power

Implies that everyone is entitled to a day in court, and all processes must be equal and fair.Due process

SELECTED BASIC LEGAL TERMINOLOGY

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ExplanationTerminology

Deals with the rights and powers of the government.Public law

Deals with punishing those who commit illegal acts.Criminal law

Is administered between two or more citizens.Private law

Deals with violations against another person who has been harmed in some way.Civil law

A procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties

opt for a private dispute resolution procedure instead of going to court. Arbitration

BANKRUPTCY

• A formal legal condition of inability to repay debts.

• People or businesses can petition the courts to be relieved of this financial obligation.

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SOME PROBLEMS WITH GOVERNMENT REGULATION

• Difficulty of understanding some of the regulations, which can be confusing and restrictive.

• Enormous amount of paperwork involved in preparing and handling the reports needed to comply with government regulations and in maintaining the records needed to satisfy the regulators.

• Difficulty and cost of complying with the regulations.

• Regulations tend to discourage small firms from hiring more workers as their employment approaches the cutoffs set by federal laws and regulations.

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HOW OWNERS OF SMALL FIRMS CAN COPE WITH GOVERNMENT REGULATIONS • Learn as much as you can about the laws that can help you, such as CRA regulations.

• Challenge detrimental or harmful laws, by joining Small Business Associations.

• Become involved in the legal-political system to elect officials of your choosing who will help change the laws.

• Find a better legal environment by moving to a different location

• Learn to live with the laws and regulations

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DO I NEED A LAWYER?

Your lawyer has several roles: • Education • Knowledge of the law. • Ability to see the big picture. • Talent for weighing alternatives.

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WHERE CAN I FIND ONE?

• Personal referral from someone whose opinion you value: banker, minister, relative.

• Lawyer Referral and Information Services, provided by bar associations.

• Advertising: Internet, yellow pages, television.

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WHAT EXACTLY SHOULD I LOOK FOR?

i. First, look for appropriate experience and knowledge of your type of small business.

ii. Second, observe the lawyer’s demeanor, the style and atmosphere of his or her office, and any clients. Does he represent a competitor?

iii. Third, does the lawyer have time for you and your business? Did you have trouble getting an appointment or have a long telephone wait?

iv. Forth, discuss fees, for performance must be balanced against cost of service provided.

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SAMPLE CONTRACT FOR A LAWYER’S SERVICES

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SOCIAL RESPONSIBILITY

• A business’s obligation to follow desirable courses of action in terms of society’s values and objectives.

• Consumerism, employee relations, environmental protection, community relations.

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SOCIAL RESPONSIBILITY

Consumerism

The organized efforts of independent, government, and

business groups to protect consumers from undesirable

effects of poorly designed and poorly produced products.

Employee relations

Showing interest in and concern for employees’ rights, especially as to meaningful employment:

training, development, promotions, pay, health and

safety.

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SOCIAL RESPONSIBILITY

Pollution control

The effort to prevent the contamination or destruction of

the natural environment.

Environmental protection

Tries to maintain a healthy balance between people and

their environment.

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SOCIAL RESPONSIBILITY

Recycling

Reprocessing used items for future use.

Conservation

Means practicing the most effective use of resources, while considering society’s current and

future needs.

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SOCIAL RESPONSIBILITY: GOING GREEN

• Works best when you initially set up your office with recycled office supplies, as furniture and paper goods.

• Use products that are earth friendly or products that dissolve (corn pens and pencils?)

• Practice due diligence in this area as all others, and reduce your carbon footprint.

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SOCIAL RESPONSIBILITY: COMMUNITY RELATIONS

• Educational and medical assistance.

• Urban development and renewal.

• The arts, culture, and recreation.

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BUSINESS ETHICS

Business Ethics

The standards used to judge the rightness or wrongness of a business’s relations to others.

Deal ethically with employees, customers, competitors, and

others. Ethical and fair behavior will

grow your company.

Personal ethic

One’s own belief system that tells one what to do if or when the laws or any pertinent codes

or ethics are silent

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BUSINESS ETHICS ISSUES EXAMPLES

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Diversity and discrimination in the workplace

Theft

Data privacy

Whistleblowing

Corporate Espionage

Harassment

Health & Safety

Nepotism

UNITED AIRLINES CASE

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In 2017, one of the passengers was kicked off the flight… aggressively…

Reaction: losing customers, losing market price (4% fall),

Result: a settlement between United Airlines and Dr.Dao (passenger) is confidential, but some say it cost company $140 million… and possibly reputation.

WHAT TO DO TO AVOID ETHICAL DILEMMAS IN WORKPLACE 1. Set up the rules from the very beginning

2. Make sure to deliver ethical values to the employees

3. Remember to be the best example

4. Make communication transparent

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DISCUSSION – VALUE PROPOSITION AND BUSINESS IMPACT • How does a strong value proposition influence a business's success, and can you provide examples of companies whose distinct value propositions have significantly impacted their market position?

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A strong value proposition is crucial as it differentiates a business in a competitive market, addressing why a customer would choose its product or service over others. For example, Apple has a value proposition focused on innovation, quality, and design, which has helped them to carve out a significant market share and maintain customer loyalty. Similarly, companies like Tesla have disrupted the automotive industry with a value proposition centered around sustainable energy and cutting- edge technology, drawing in a customer base that values these aspects.

DISCUSSION – ETHICAL CONSIDERATIONS IN BUSINESS DECISIONS • In light of ethical dilemmas such as data privacy and workplace discrimination, how should businesses approach these issues, and what is the impact of ethical decision-making on a company's reputation and sustainability?

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Businesses should approach ethical dilemmas by fostering a culture of integrity and transparency. This includes clear ethical guidelines, employee training, and effective channels for reporting and addressing ethical concerns. The impact of ethical decision-making is profound; companies that actively address ethical dilemmas tend to build stronger trust with their customers and stakeholders, enhancing their reputation and long-term sustainability. For instance, companies like Patagonia, known for their commitment to environmental ethics and sustainability, have garnered a loyal customer base and industry respect.

DISCUSSION -SOCIAL RESPONSIBILITY AND ENVIRONMENTAL IMPACT • How do businesses balance profitability with social responsibility, particularly in environmental protection and community relations, and what is the role and impact of 'going green' initiatives on the business and the community?

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Balancing profitability with social responsibility involves integrating sustainable practices into business operations while maintaining financial health. This includes adopting eco-friendly practices, engaging in fair trade, and contributing to community development. The 'going green' initiatives, such as using renewable energy sources or reducing waste, not only help in reducing environmental impact but also can lead to cost savings and open new market opportunities. Companies like IKEA have shown that implementing sustainable practices can lead to operational efficiencies, innovation, and enhanced brand value, thereby benefiting both the business and the wider community.

THANK YOU QUESTIONS? UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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THE ROLE OF SWOT ANALYSIS

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WeaknessHelpful

Weakness W

Strength SIn

te rn

al Threats

T Opportunities

O Ex

te rn

Prof. Bulzacki BUSI 660

Small Business Management

Week 2

https://www.linkedin.com/in/adrian-bulzacki/

WHY IS PLANNING SO IMPORTANT TO SMALL BUSINESSES? Planning

• The process of setting objectives and determining actions to reach them.

Criteria

• Be prepared and be patient.

• Know where to get help.

• Form your own support system.

• Know the power of vertical integration*.

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*Vertical integration is a strategy that involves growth through the acquisition of

a producer, vendor, supplier, distributor, or other related company that the acquirer

may already be doing business with.

…PLANNING

• Where can I find needed personnel?

• How much profit can I expect?

• Planning should be the first in performing a series of managerial functions because it sets the future course of action for all aspects of business.

• Planning is the foundation you build on.

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HOW PLANNING RELATES TO OTHER MANAGERIAL FUNCTIONS

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WELL-DEVELOPED PLANS CAN:

• Interest moneyed people in investing in your business.

• Guide the owner and managers in operating the business

• Give direction to and motivate employees.

• Provide an environment to attract customers and prospective employees.

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WHY SMALL BUSINESS OWNERS NEGLECT PLANNING

• Day-to-day activities leave them little or no time for planning.

• They fear the problems and weaknesses planning may reveal.

• They lack knowledge of how to plan.

• They feel that future changes cannot be planned for.

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SOME OF THE MOST IMPORTANT TYPES OF PLANS AND PLANNING FUNCTIONS

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Strategic Planning Examples

Mission: The long-term direction of the business. To provide financial security at low cost.

Objectives: Shorter-term ends to help achieve the mission. • For total firm.

• For functional area.

• Earn a 20 percent return on investment in 2025. • Increase penetration of market by 25 percent by

2026.

Strategies: Means to achieve an end, or courses of action needed to achieve objectives.

• For total firm. • For functional area.

• Establish control procedures to control costs by 2025. • Use 1 percent of sales to improve and expand

service.

SOME OF THE MOST IMPORTANT TYPES OF PLANS AND PLANNING FUNCTIONS

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Operational Planning Examples

Policies: Guides action that provides consistency in decision making, particularly in repetitive situations.

Personnel policy: Promote from within, giving preference to promotions for present employees.

Methods and procedures: Prescribed manner of accomplishing desired output.

Employee selection procedure: Complete application form, test, interview, investigate, select.

Budgets and standards: Plans for future activities using measures for control.

Cash budget: For planning use of money.

THE ROLE OF STRATEGIC PLANNING PROVIDES COMPREHENSIVE LONG-TERM DIRECTION TO HELP A BUSINESS ACCOMPLISH ITS MISSION.

• Selecting the type of business to enter.

• Formulating the mission of the company.

• Deciding whether to start a new business, buy an existing one, or buy a franchise.

• Choosing the product or service to sell.

• Deciding on the market niche to exploit.

• Choosing the type of organization to use.

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THE ROLE OF SWOT ANALYSIS

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Helpful Weakness

In te

rn al Strength

S Weakness

Ex te

rn al

Opportunities O

Threats T

MISSION AND VISION

Vision

Explains what the business is stressing to become in the future.

Mission statement

Defines the present business scope and broadly describes the organization’s present capabilities, focus, and activities.

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TYPES OF PLANNING

• Strategic planning before starting the business.

• A business plan to attract investors, financiers, and prospective employees.

• Continuous operational planning and control before and after the business starts operating.

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WHEN WE STARTED A FURNITURE RETAIL CHAIN, WHAT DID WE CONSIDER? • Street retail (separate entrance)

• Malls

• Specialized malls (Home and furniture)

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Location

STREET RETAIL

Where is the best spot here?

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STREET RETAIL

Where is the best spot here?

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Entrance/Exit

MALL

Which Property Should We Rent?

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Product Store (Supermarket)

1 2 3 4 5 6

IT DEPENDS!On the Entrance / Exit

MALL

The Traffic

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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Product Store (Supermarket)

1 2 3 4 5 6

MALL

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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Product Store (Supermarket)

1 2 3 4 5 6

9 The Traffic

How To Choose The Idea And Validate It?

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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HOW TO CHOOSE THE IDEA AND VALIDATE IT? WORK IN TEAMS AND DISCUSS THE FOLLOWING

1. What are the main criteria to choose the idea for business? What rationale stands behind the idea?

2. How do we validate that the idea is worth time and other resources?

3. Make a small research, choose a company and prepare a very short story about how this business started.

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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15 minutes to discuss

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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WHAT IS VALUE PROPOSITION?

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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WHAT CUSTOMER GAINS DOES YOUR BUSINESS PROVIDE?

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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UNEXPECTED

REQUIRED EXPECTED

DESIRED

WHAT CUSTOMER PAINS DOES YOUR BUSINESS SOLVE?

THANK YOU QUESTIONS? UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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Slide Number 1
Why Is Planning So Important to Small Businesses?
…Planning
How Planning Relates to Other Managerial Functions
Well-developed plans can:
Why Small Business Owners Neglect Planning
Some of the Most Important Types of Plans and Planning Functions
Some of the Most Important Types of Plans and Planning Functions
The Role of Strategic Planning�Provides comprehensive long-term direction to help a business accomplish its mission.
The Role of SWOT Analysis
Mission And Vision
Types Of Planning
When we started a furniture retail chain, what did we consider?
Street Retail
Street Retail
Mall
Mall
Mall
Slide Number 19
How To Choose The Idea And Validate It?�Work in teams and discuss the following
What is Value Proposition?
What Customer Gains Does Your Business Provide?
What Customer Pains Does Your Business Solve?
Thank you

2024Prof. Adrian Bulzacki

BUSI 660

Small Business Management

Week 1

WHY DO WE STUDY SMALL BUSINESS?

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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SOME PRO’S

• Small firms generate most new private employment.

• Public support is growing as many consumers lose favor with big business retailers.

• Many incentives, like tax credits, to do so.

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SELF-EMPLOYMENT IN CANADA

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HOW MANY SMALL BUSINESSES ARE THERE IN CANADA? HINT: THERE ARE 1.23 MILLION EMPLOYER BUSINESSES IN TOTAL (KEY S MALL BUSINESS STATISTICS – 2020, GOVERNMENT OF CANADA)

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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• 500,000

• 1,200,000

• 900,000

• 50,000

(97.9% of all employer businesses are small businesses)

MOST OF SMALL BUSINESSES IN CANADA ARE LOCATED IN:

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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• Quebec

• B.C.

• Ontario

• Alberta

(440,306 out of 1,200,571)

SMALL BUSINESS MUST HAVE AT LEAST TWO OF THE FOLLOWING FEATURES:

• Management is independent, because the manager usually owns the business.

• Capital is supplied and ownership is held by an individual or a few individuals.

• The area of operations is primarily local, although the market is not necessarily local.

• The business is small in comparison with the larger competitors in its industry

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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DISTINGUISHING BETWEEN ENTREPRENEURIAL VENTURES AND SMALL BUSINESSES

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DISTINGUISHING BETWEEN ENTREPRENEURIAL VENTURES AND SMALL BUSINESSES

Small business

Independently owned and operated and is not dominant in

its field.

Entrepreneurial venture

The principal objectives of the owner are profitability and

growth.

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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DISTINGUISHING BETWEEN ENTREPRENEURIAL VENTURES AND SMALL BUSINESSES

Small business Owner

Establishes a business primarily to further personal goals, including making a profit.

Entrepreneur

Goals include achievement, profit, and growth, achieved

through innovation and strategic management.

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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WHY SMALL BUSINESS IS SO IMPORTANT?

• Encourage innovation and flexibility.

• Keep larger firms competitive

• Develop risk takers

• Generate new employment

• Maintain close relationships with customers and the community

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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SOME CURRENT PROBLEMS FACING SMALL BUSINESSES

• Political and economic issues.

• World economy.

• Capital or financing issues.

• Unexpected growth.

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INADEQUATE FINANCING

• It cannot be stressed enough that a shortage of capital is the greatest problem facing small business owners.

• Without adequate funds, the small business owner is unable to acquire and maintain facilities, hire capable employees, produce and market a product, or run a successful business.

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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INADEQUATE MANAGEMENT

• Many owners tend to rely on one-person management and are reluctant to release control, or to delegate responsibilities.

• They may not select qualified employees or may fail to give them enough authority and responsibility to manage adequately.

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SOME CURRENT TRENDS CHALLENGING SMALL BUSINESS OWNERS

• Exploding technology

• Occupational and industry shifts

• Global challenges

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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OCCUPATIONAL AND INDUSTRY SHIFTS

Reinvention

The fundamental redesign of a business, often resulting in reduction in size and markets.

Reengineering

The redesign of operations, starting from scratch

Downsizing

Reducing the number of employees to increase efficiency.

Also called rightsizing.

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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WHY PEOPLE START SMALL BUSINESSES?

• Satisfying personal objectives.

• Achieving business objectives.

• Achieve independence.

• Obtain additional income.

• Help their families.

• Provide products not available elsewhere.

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ACHIEVE BUSINESS OBJECTIVES

Objectives

• The goals toward which the activities of the business are directed.

• Service, profit, social, growth.

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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Social objectives

Goals regarding providing a service to the community and doing their part in

environmental protection.

Profits

Are the reward for accepting business risks and performing an economic service.

Are needed to ensure the continuity of a business.

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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WHAT LEADS TO SUCCESS IN MANAGING A SMALL BUSINESS?

• Serving an adequate and well-defined market for the product.

• Acquiring sufficient capital.

• Recruiting and using human resources effectively.

• Obtaining and using timely information.

• Coping effectively with government regulations.

• Having expertise in the field on the part of both the owner and the employees.

• Being flexible.

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DOING AN INTROSPECTIVE PERSONAL ANALYSIS

Values

Mental abilities

Attitudes

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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FACTORS AFFECTING THE FUTURE OF AN INDUSTRY OR A BUSINESS

Examples of Factors Affecting Industry and Business Trends

Economics—gross national product (G N P), interest rates, inflation rates, stages of the business cycle, employment

levels, size and characteristics of business firms and not-for-profit organizations, and opportunities in foreign markets.

Technology—artificial intelligence, thinking machines, laser beams, new energy sources, amount of spending for

research and development, and issuance of patents and their protection.

Lifestyle—career expectations, consumer activism, health concerns, desire to upgrade education and climb the

socioeconomic ladder, and need for psychological services.

Political-legal–antitrust regulations, environmental protection laws, foreign trade regulations, tax changes, immigration

laws, childcare legislation, and the attitude of governments and society toward the particular the type of industry and

business.

Demographics—population growth rate, age and regional shifts, ethnic moves and life expectancy, number and

distribution of firms within the industry, and size and character of markets

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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SOME AREAS OF CONCERN FOR SMALL BUSINESS OWNERS

• The success of smaller firms tends to be limited by factors such as inadequate management, shortages of capital, government regulation and paperwork, and lack of proper recordkeeping.

• Two other concerns are poorly planned growth and the threat of failure.

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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POORLY PLANNED GROWTH

• Setting goals without realistic steps to meet them.

• Not training your employees well-enough so that you are unable to delegate responsibilities.

• Not preparing for emergencies.

• Being unable to deal with stress.

• Failure to seek help.

• The paradox itself: You own your business, yet you don’t enjoy it.

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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STAGES IN THE DEVELOPMENT OF A SMALL BUSINESS

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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THREATS OF FAILURE

Failure

Results from inability to succeed in running a business.

Discontinuance

A voluntary decision to

terminate a business, due to

health, family situation, or the

advantages of working for

someone else.

Personal (informal) failures

The owner who cannot succeed

voluntarily terminates the

business.

Formal failures

Failures ending up in court

with loss to creditors.

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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THANK YOU QUESTIONS?

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BONUS: ENTREPRENEUR TOOLS

Entrepreneur Tools by Mohammad Keyhani | ZEEF

https://entrepreneur-tools.zeef.com/keyhanimo

UCW – BUSI 660 – Small Business Management – Prof. Adrian Bulzacki

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https://entrepreneur-tools.zeef.com/keyhanimo

Slide 1
Slide 2: Why Do We Study Small Business?
Slide 3: Some PRO’s
Slide 4: Self-Employment in Canada
Slide 5: How many small businesses are there in Canada? Hint: there are 1.23 million employer businesses in total (Key Small Business Statistics – 2020, Government of Canada)
Slide 6: Most of small businesses in Canada are located in:
Slide 7: Small business must have at least two of the following features:
Slide 8: Distinguishing between Entrepreneurial Ventures and Small Businesses
Slide 9: Distinguishing between Entrepreneurial Ventures and Small Businesses
Slide 10: Distinguishing between Entrepreneurial Ventures and Small Businesses
Slide 11: Why small business is so important?
Slide 12: Some Current Problems Facing Small Businesses
Slide 13: Inadequate Financing
Slide 14: Inadequate Management
Slide 15: Some Current Trends Challenging Small Business Owners
Slide 16: Occupational and Industry Shifts
Slide 17: Why People Start Small Businesses?
Slide 18: Achieve Business Objectives
Slide 19
Slide 20: What Leads to Success in Managing a Small Business?
Slide 21: Doing an Introspective Personal Analysis
Slide 22: Factors Affecting the Future of an Industry or a Business
Slide 23: Some Areas of Concern for Small Business Owners
Slide 24: Poorly Planned Growth
Slide 25: Stages in the Development of a Small Business
Slide 26: Threats of failure
Slide 27: Thank you
Slide 28: Bonus: Entrepreneur Tools

Organizational diagnosis (individual assessment)

Organizational diagnosis (individual assessment)

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