3457, Chatley Avenue,
New York City, NY 123.
Amanda Smith Accounting and Tax services,
521 Winners avenue,
New York City, NY 213.
Dear, Ms Amanda Smith:
With reference to your letter date March 15, 2013, I hereby wish to affirm our commitment and dedication as McKinley Consulting Group Incorporation in rendering quality, reliable and affordable service to our enthusiastic clients. As the manager of McKinley Consulting Group Incorporation, I am pleased to inform you that I have read and understood your concerns; as articulated in your letter and affirm to offer consulting management services to your business.
The main reason for writing this letter is to offer consulting management services to you as the entrepreneur and elaborates the four functions of management in detail. Additionally, in the letter I wish to offer viable recommendations on how to revive your business bearing in mind that it is in a critical stage of development, and more importantly, ensure your business competes effectively in the business arena. I hold the view that your business will prosper and develop in the near future after implementing the proposed recommendations in this letter.
There are many types of business operating in the world today. Some of the businesses have specialized in either processing or manufacturing of products while others deal with service delivery. Additionally, businesses differ in size, capital share and market niche. Some businesses enjoy economies of scale because they are large while others do not benefit from economies of scale as they operate in small scale. Despite the variance in their operations, size, market niche and capital share businesses strive satisfying the needs of the client and increase their profit margin (Mitchel & Dyck, 2008). This infers that businesses tend to outdo each other on the premises that they win trust and loyalty of the consumers by providing quality and affordable services and products, and your business is no exemption.
Entrepreneurs understand that external and internal factors pose a challenge to the business success because the businesses operate in unpredictable environment. This aspect hinders business from achieving its goals, objectives, and mission. In order to overcome environment challenges, managers need to establish an effective management system that will ensure that the business remain competitive, profitable and sustainable in the long term (Worthington, Britton & McMillan, 2006). On this assertion, managers should use their experience, expertise, and skills in developing managerial concepts and models, which will guide the daily operation of the business. In doing so, managers should take into account the four key areas of management namely; planning, organizing, directing, and controlling. Effective articulation of these four areas will enable managers address operational and tactical issues experienced daily in the business. Similarly, the management will adapt an effective course of action that will resolve managerial problems without interfering with business operations thus enhancing productivity. From a professional point of view, it is imperative for managers to understand how the four areas of management influence business internal and external environments.
Planning: This remains an imperative component in the business environment. Planning entails formulating long term and short goals, which the business desire to accomplish in the near future. It provides an effective framework on how the business should conduct its daily operations and what course of action it should adapt in ensuring that business goals, objectives, and mission remain attainable (Worthington, Britton & McMillan, 2006). Managers need to engage in strategic planning because external and internal factors keep affecting business operations. A small change in external and internal environment affects the business performance either positively or negatively. In such situations, managers should devise an effective strategic planning model that will foster for business success and enhance sustainability. This implies that managers should adjust their course of action so that to meet business, mission, goals and objectives. Additionally, strategic planning enables the business to evaluate its performance against the available resources and articulate ways to enhance productivity. In a similar vein, strategic planning helps managers establish strengths and weaknesses of the business. In order to remain competitive, managers should use strengths of the business as competitive advantage in winning over consumers’ trust and loyalty. In this scenario, Ms Amanda Smith should analyze internal and external factors that affect her business and develop a comprehensive business plan. This move will help the business attain its goals, objectives and mission at a cost effective manner; an idea that promote efficiency.
Organizing: This process entails allocation of resources, establishing functional units within the business and formation of internal structures. Objectives, goals, and mission of the business determine internal structure of the business in terms of departments, operations, staffing, and evaluation. Before establishing the internal structures of the business, managers need to assess on how to delegate duties, roles, and responsibilities based on departments, maintain smooth flow of information and evaluate performance (Young & Tippins, 2001). This move will help in reducing misuse of resources and promote accountability and transparency. In this case, Ms Amanda Smith needs to restructure her business and establish an effective internal structure that will work towards achieving business goals. Ms Amanda should allocate and assign duties based on departments; an idea that will enhance efficiency and productivity. The business can have three main department headed by different departmental heads. These include; marketing, quality assurance and auditing department. Those departments that perform similar roles can be merged so that to lower operation cost.
Directing: This involves the act of overseeing daily operation of the business and ensuring that different departments work in unison. In most cases, the process of directing entail creating a favorable work environment by changing employees’ behavior (Young & Tippins, 2001). Managers should motivate their employees, facilitate flow of information, and organize seminars and vocational trainings aimed at empowering employees with skills. Motivating workers improves productivity and efficiency because workers strive to meet organization goals and objectives timely. In order to motivate her employees, Ms Amanda Smith should develop a performance appraisal model that will reward workers based on their performance. Additionally, Ms Amanda should organize seminars, fieldtrips, and vocational training for the employees so that to empower them with skills and knowledge.
Controlling: This is a crucial process in the business as it entails evaluating business performance against the standards set forth. The process also entails assessing whether the business has achieved its goals and objective. In case the business has not attained its goals, managers should implement a corrective measure to rectify the situation. Controlling is a continuous process because managers need to adjust their course of action often and advocate for the correct measure. In so doing, the business remains focused and determined in achieving its objectives. In this scenario, Ms Amanda Smith should place in position controlling measure that will ensure effective utilization of resources, maintenance of business reputation and provision of quality services.
Ms Amanda Smith should establish departments and assign roles, duties, and responsibilities based on these departments. In this case, she should establish marketing, quality assurance and auditing departments respectively. This move will foster for specialization and competition thus improving productivity and quality of services offered.
Establishment of performance appraisal: Ms Amanda should create a performance appraisal model that will reward hardworking employees and facilitate business productivity. Performance appraisal model should borrow from motivational theories, which articulate that motivation is directly to employees’ performance. This implies that motivate employees work more compared to less motivated workers. This move will create a healthy competition among the employees and in the process boost business revenue.
Redefine recruitment process. Business success depends on employees’ qualifications, skills, and expertise in accomplishing tasks assigned to them. However, in order to achieve this outcome, Ms Amanda Smith should redefine business recruitment process so that it fits with its goals, objectives, and mission. Setting high standards for employees will help the business hire qualified and competent employees who will attract more clients and maintain reputation of the firm.
Control function and its association with planning, organizing, and leading functions
Henri Fayol defines control function as systematic process established by the business with the aim of evaluating business performance in relation to the set standards and establishes shortfalls/deficiencies (Pelle, 2007). Control function aim at guiding the business operations with the sole intention of attaining business goals, objectives, and mission in a cost- effectively manner. Businesses should take into account the concept of control function during planning, organizing, and other leading functions because these three aspects are intertwined. Management should plan on how control function aspect may influence business operation and advocate for counteractive measures. In certain instances, business need to redesign its operation so that to meet certain goals. In this case, managers should develop and effective control functions that will ensure the desired goal remain achievable in short and long term basis. Businesses can attain effective control function through automation, risk sharing, and centralization. Managers should organize how internal structure of the business will be and determine how information will flow. This infers that planning, organizing, and other leading functions interlink with control function.
Importance of accurate timing and link between planning and controlling
Information remains an imperative component in the business arena. Managers use information available in the environment to make concrete decisions about the business. However, the information should be accurate and timely for it to be effective and meaningful in the business settings. Based on this assertion, accurate and timely information has the following importance:
Foster for the implementation of a effective course of action: Managers use the information available in the business cycle in developing an effective course of action. The information available determines course of action that managers will adapt and the impact of the same on the business.
Enhance efficiency: Accurate and timely information enable managers to adapt modern technology in the operation thus enhancing efficiency. This aspect creates a healthy competition between businesses as firms strive in improving the quality of products and services rendered.
Planning and controlling are two important aspects in business management. Although planning and controlling differ in meaning, both concepts complement each other. Planning entails setting goals and objectives of the business, but controlling ensures that these goals are attainable. Both concepts are inseparable and reinforce each other. Therefore, planning cannot be effective without controlling and vice versa. It is imperative for managers to understand how planning and controlling aspects influence decision-making processes.
I believe that Ms Amanda Smith you will learn important aspects that will help in developing your business. The purpose of this letter was to educate you on the four areas of management, provide recommendations on your business, and educate you on other business issues. I look forward working with you and feel free to contact me.
Thanks in advance.
Pelle, S. (2007). Understanding emerging markets building business BRIC by brick. New Delhi: Response Books ;.
Worthington, I., Britton, C., & McMillan, K. t. (2006). The business environment (5. ed.). Harlow: Financial Times Prentice Hall.
Young, P. C., & Tippins, S. C. (2001). Managing business risk: an organization-wide approach to risk management. New York: AMACOM.
Mitchel, N., & Dyck, B. (2008). Management: Current Practices and New Directions. New York: Cengage Learning.