Solving a problem: How to manage
a company after growth?
An owner sees his/hers company grow, but
encounters problems associated with its growth. How can it be handled?
Why do companies need to
restructure their operations when company size changes?
A company should
regularly evaluate is there is there a need for restructure. It´s important to
evaluate are the business goals met and if not could better results be
accomplished with restructuring inside the organization. If the answer is yes,
then a company should decide carefully how to manage the restructure process and
have a clear agenda how to achieve its goals.
Often restructuring is
needed when a company is preparared for sale, merger or an employee buyout. A
common reason might as well be difficulties keeping sales above break-even
point. In addition to these an impotant reason could be preparation for future
growth.
Steps for restructure
·
Diagnosis – Firstly it´s needed to evaluate every possible situation and scenario
·
Planning – Formulating of strategic and operational plans
· Implementation
– is closely tied with the
business restructuring plan and is monitored by owners and stakeholders.
The Result
When a new plan is
implemented and approved in an organization it replaces the former business
plan. When a company grows, it will usually become more complex and it is the
case with the new plan as well. The new plan is more detailed to suit the
growing company and hopefully prepare it for future growth.
What is a value chain?
Value chain a set of
interrelated activities a company uses to create competitive advantage. The
idea was pioneered by Michael Porter and is divided in 5 steps.
The primary business activities are:
·
Inbound
logistics – receiving, warehousing and inventory control
·
Operations –
value creating activities which transform inputs into products
·
Outbound
logistics – activities to get the product to customers
·
Marketing and
sales – To get the customers to buy the product
·
Service –
maintaining and enhancing a products value
In
addition to succeed a company needs effective supporting activities or
processes: procurement, technology development, Human Resources Management and
Firm Infrastructure.
What impact does value chain have
on a company?
An effective value chain
can be a competitive edge for a business, a tool to generate more sales, be
cost-efficient and as a result make money for its owners and secure employment
for its employees. Valuechain has a big impact on the entire process in
production, sales, marketing, business and every single division in a company
if it´s correctly applicated. It makes companies greener, the money spent goes
in the right direction and employees are happy when the work flow is
functioning.
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