Management Assignment Sample

Executive summary

Present report is based on business operations of Sim’s Hardware, so it has developed learning regarding diverse factors associated with operational values. It is necessary for every business to understand key aspects of environment so that corrective measures can be taken into account regarding operational activities. Company is holding effective brand image in the market because of its high quality services. It has enhanced the business opportunities and leads organization to impressive level of success. Employees within organization are highly skilled that allows company to ensure about key standards. It helps in improving performance and make sure that goals and objectives are being accomplished.

A high quality product also helps company to enhance satisfaction level among customers. It assists in gaining competitive advantage so that long-term values can be well maintained. However, loyalty factor is needed to be improved for continuous development. Sim’s Hardware is facing issues in terms of customer loyalty because of high pricing standards. The technological trends are changing at quicker pace where utilization of web and other computerized stages for promoting is expanding at quicker pace. Further, if there should arise an occurrence of Sim's equipment through selection of present day devices, for example, advanced advertising can unquestionably bring good outcomes for the firm.

Table of Contents

Introduction. 3

Problem analysis. 3

SWOT. 4

PEST. 5

Findings. 6

Recommendations. 6

Conclusion. 7

References. 7

Introduction

In order to conduct the business operations smoothly and in the best possible manner it is necessarily required to identify the key issues that business operations. Further, the issues present in the external and internal environment can be identified easily through the applicability of SWOT and PEST (Parris et al. 2016). The different form of issues such as failure to meet with the customer requirement, lack of skills and knowledge in the staff etc. Resolving the issues identified in a proper manner is necessary as through this the long term performance of the firm can be easily managed and in turn it can bring favorable results (Scarborough, 2016).

The present study carried out focuses on the selection of Sim’s Hardware as one of the company. The firm has 138 stores across the nation and it is considered to be one of the largest hardware retailer in the market of Australia (Schaper et al. 2014).

Presently, the workforce that is hired by the firm does not possess right skills and knowledge. Due to this issue the firm is facing lot of difficulties in satisfying the overall need of its target market and in turn in near this will act as the major challenge also (Hill et al. 2014). Further, challenges are also present in the external environment of the firm where competition is adversely affecting the business performance that needs to be managed for the overall growth and development of the firm in the market.

No doubt the overall operations of the firm are carried out with the help of its 130 stores in the market. Another valid issue that is faced by Sim’s hardware is associated with declining net income as in the year 2017 the company’s net income declined as compared with the previous year (Doz, 2017). This is the main reason due to which it has become quite difficult for Sim’s hardware to conduct its overall operations in the most effective manner. Along with this, the market share of the firm is also not at all stable where it keeps on fluctuating and this is one of the main reason due to which corrective actions are required to be taken for the growth and the development of the business. 

The range of products that are offered by the firm involves hardware, garden, tools, paint and housewares. The report focuses on identifying the key issues that are present within Sim’s Hardware and providing recommendation so that performance of the firm can be easily managed.

Problem analysis

Sim’s hardware conducts all its operations on wider basis and several problems are faced by the firm in the market that acts as hurdle in conducting operations smoothly. Further, one of the main issue that is the rising expectations of the target market where it has been identified that customers prefer to purchase hardware items whose quality is quite high. Along with this, another issue that is faced by the firm is linked with lack of proper skills and knowledge in case of staff.

SWOT

It is considered as one of the effective technique in analyzing the internal environment of the business.

Strengths

• Talented staff that can easily requirement with the target market and their ability to demonstrate products in front of the customers is also high
• The marketing budget is quite strong and this has supported a lot in conducting the business practices in the best possible manner (Burns and Dewhurst, 2016).
• Strong market share of 6% that will surely support to dominate the market in near future also
• High quality products that are innovative and this has allowed to satisfy the need of the different individuals in the market.

Weaknesses

• Low level of customer loyalty where customers are not at all loyal towards the products offered by Sim’s hardware in the market.

Rise in the level of the cost of sales that is linked with socially responsible and environmental choices (Schaper et al. 2014).

Opportunities

• Expansion of the e-commerce practices so that all the hardware products can be offered with the help of online platforms
• Entering into the partnership with the suppliers who can easily assist in delivering innovative products
• Opportunity to buy products in bulk amount and selling the same at an nominal price as through this economies of scale can be accomplished easily (Bryson and Daniels, 2015)

Threats

• Competition is one of the main issue that has affected the overall practices of the firm in the market
• Uncertain economic climate at global level and this is somehow affecting the Australian spending
• Absence of prime locations for the large warehouses

Above shown is the SWOT analysis that helps in knowing the key issues that are faced by Sim’s hardware at the time of conducting its overall operations in the market. Generally, the changing economic climate is adversely affecting the firm and it is one of the biggest threats that is affecting overall business practices in the market (Parris et al. 2016). Another key challenge that is affecting business operations in the market is high level of competition. It has been found that different competitors are operating in the market and this directly acts as hurdle in front of Sim’s hardware and in turn the long term performance of the firm is affected due to this.

PEST

Political: This factor undertakes the government laws and regulations that directly influences the performance of the firm in the market. Further, different acts have been introduced by the government of Australia that involves fair work act 2009, corporation act 2001, packaging and labeling laws, competition and consumer act 2010, environmental laws etc. It is necessary for Sim’s hardware to ensure that its business practices are in accordance with the different laws such as environmental where corrective measures have been taken to reduce environmental burden etc (Wood et al. 2015). For dealing with competitors proper practices have been undertaken that are ethical as per the consumer and the competition act. So, in accordance with this fact the company has to modify its overall activities.

Economical: Overall the economic condition of Australia is sound but on the other hand unemployment level is increasing within Australia. Further, with the rising disposable income of the people living in the society it has become possible for the customers to easily afford the home improvement products and this will surely benefit the firm in the every possible manner. Therefore, with the help of this it can be stated that economical factor has positively affected the overall performance of Sim’s hardware in the market (Grant, 2016).

Social: The market trend is changing at faster pace where consumers prefer to buy such type of products whose impact on the community is very less and the activities of the firm must be for the development of the society. Further, consumers are highly concerned about the environment and in this case it is required for Sim’s hardware to undertake proper actions to reduce the negative impact on the environment (Hill, 2017). The company is required to focus on the development of the products that are environmental friendly as it can easily contribute in gaining competitive edge over the rivalry and it will bring fruitful results for the business also.

Technological: The technological trends are changing at faster pace where use of internet and other digital platforms for marketing is increasing at faster pace. Further, in case of Sim’s hardware through adoption of modern tools such as digital marketing can surely bring favorable results for the firm. The company can easily take advantage of the online platforms for offering products to its target market such as adoption of e-commerce and through this it will be possible to serve customers in the proper manner (Hill et al. 2014). Further, from marketing point of view digital platforms can be easily adopted such as social media etc that will contribute a lot in gaining competitive edge over the rivalry.

Hence, through the applicability of PEST the factors have been known that are directly affecting the performance of Sim’s hardware in the market. Mainly political factor is acting as hurdle in front of the firm in the market. On regular basis government is introducing new laws and this is the main reason due to which the firm has to modify its overall practices. In case if the practices of the firm are not in accordance with the political laws then in such case it will become difficult to carry out the overall practices. Therefore, it is necessary to modify the business practices as per the political factors so as to manage the long term performance in the market.   

Findings

It has been identified that carrying out the smooth flow of all operations and activities is not an easy task for businesses such as Sim’s hardware and there are various issues and challenges faced by the business during the same. Increasing expectations of the target market have been identified as one of the most critical issues which have been faced by the selected organisation. The customers now expect that Sim’s hardware offers them with a high quality of products and services at competitive or affordable prices and this has created issues for the business. Lack of skills and adequate knowledge among the employees has also emerged as a crucial issue which is creating obstacles in the success and growth of the business enterprise (Hitt and Duane Ireland, 2017).

Sim’s hardware is now struggling to meet the need and expectations of its customers and this has created further problems for the business. After carrying out a SWOT analysis of the company, it has been identified that strong market share and adequate marketing budget have been identified as the major strengths of the selected organisation. The products are innovative and are of high quality and this is another major strength which is contributing to the success of the organisation. On the other hand, a low degree of customer loyalty and increasing cost of sales has emerged as the biggest weaknesses of Sim’s hardware (Doz, 2017).

The findings of SWOT analysis outlines the fact that the expansion of e-commerce practices, buying products in bulk and entering into a partnership are the major opportunities present in front of Sim’s hardware. Apart from this, competition and the uncertain economic environment in the marketplace are the major threats which are creating obstacles in the success and development of the business enterprise. To deal with threats such as increasing competition, it is required by the brand to introduce unique and innovative products and services at regular intervals. 

After conducting the PESTLE analysis of Sim’s hardware, it has also been identified that the laws and regulations developed by the government of Australia are affecting the operations and performance of the business to a great extent. Economic factors such as increasing unemployment in the country are also affecting the operations and business activities of Sim’s hardware (Barney, 2017). On the contrary to this, the rising disposable income of the people in the country is considered as a major factor which is supporting the business in increasing demands of its products and services. The findings of the study outline the fact that the changing needs and preferences of buyers or people in the target market also have a potential impact on the business activities and operations of an organisation.

Considering the case of Sim’s hardware, it can be expressed that the buyers of the company want products which are environmentally friendly and which do not create any kind of negative impact on the environment. To gain a competitive advantage over other players operating in the marketplace, Sim’s hardware is now required to come up with sustainable or environmentally friendly products and services. Factors such as technology are providing the company with an opportunity to carry smooth and desired flow of all operations and activities.

At present, the upgraded and advanced technological environment of Australia can play a critical role in enhancing the overall volume of sales and profitability of the organisation. It has been identified that at present, the brand has the opportunity to use various digital platforms and carry out the marketing of its products and services to people in the target market. Apart from this, the technological up gradations and advancements can also contribute a lot in enhancing the e-commerce operations and activities of Sim’s hardware.

Recommendations

According to detailed understanding about the company working, it can be recommended that business firm must focus on customer assistance factor. It is necessary for business firm to set out a platform that allows customers to share their views about product and services. By having an effective consideration of such factors the loyalty aspects can be targeted in better way. However, company is facing high competition in the market that can affect the overall working. It means analysis of competitor’s strength and weakness is also essential so that corrective measures can be taken into account for long-term development.

It is vital for a business firm to have an emphasis on a few qualities identified with client needs. It implies the comprehension of client compose is fundamental for business with the end goal to achieve key objectives and destinations. It gives manageable chances to business and prompts a great level of progress. It is important for a business element to have an enhanced spotlight on benchmarking viewpoints so objectives and destinations can be refined. By having a successful thought of benchmarking the key models and their correlation with client needs can be expert. Customer research can empower administration to develop a more ordered picture of brand and perceive how to target clients.

Conclusion

As per detailed study, it can be concluded that proper understanding of business environmental values is essential because it helps in long-term development. Sim's hardware directs every one of its activities on more extensive premise and a few issues are looked by the firm in the market that goes about as obstacle in leading tasks easily. Further, one of the principle issues that is the rising desires for the objective market where it has been recognized that clients want to buy equipment things whose quality is very high. Generally speaking the financial state of Australia is sound however then again joblessness level is expanding inside Australia. 

Further, with the rising extra cash of the general population living in the general public it has turned out to be feasible for the clients to effortlessly bear the cost of the home enhancement items and this will without a doubt advantage the firm in the each conceivable way. It is essential for business firm to set out a stage that enables clients to share their perspectives about item and administrations. Predominantly political factor is going about as obstacle before the firm in the market. On normal premise government is presenting new laws and this is the principle reason because of which the firm needs to change its general practices. In the event that if the acts of the firm are not as per the political laws then in such case it will wind up hard to complete the general practices.

References

Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.            Pearson.

Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan     International Higher Education.

Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small            business.

Bryson, J.R. and Daniels, P.W. eds., 2015. Handbook of service business: Management,    marketing, innovation and internationalisation. Edward Elgar Publishing.

Parris, D.L., Dapko, J.L., Arnold, R.W. and Arnold, D., 2016. Exploring transparency: a new       framework for responsible business management. Management Decision, 54(1),      pp.222-247.

Wood, C.R., Thompson, D.C., Picus, L.O. and Tharpe, D.I., 2015. Principles of school                 business management. R&L Education.

Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.

Hill, T., 2017. Manufacturing strategy: the strategic management of the manufacturing       function. Macmillan International Higher Education.

Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an         integrated approach. Cengage Learning.

Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic   management research. The Blackwell handbook of entrepreneurship, pp.45-63.

Doz, Y.L., 2017. Strategic management in multinational companies. In International          Business (pp. 229-248). Routledge.

Barney, J.B., 2017. Resources, capabilities, core competencies, invisible assets, and knowledge     assets: Label proliferation and theory development in the field of strategic           management. The SMS Blackwell handbook of organizational capabilities, pp.422-426.