Business Management for Granite Stones - myassignmenthelp.com

Question: Discuss about theBusiness Management for Granite Stones. Answer: Introduction The building material companies include suppliers of the basic raw materials to be used by the companies when constructing commercial and residential properties. This paper outlines the basic steps to follow to start a new company to supply granite building stones to property developers. Building stones are among the basic materials in addition to wood lumber and mill work products required by the construction companies. Granite stones exist in two varieties which are basically Igneous and siliceous. These stones are used construction of sea walls and bridge piers. Smaller pieces are used as road metals or railway ballast. Granite stones being of much demand by the product development companies, starting a company requires a bit of analysis based on the procedures and existing supplier companies. Establishing a new company is hard task that requires devotion to detail and a worksheet on the factual procedures. According to research, starting a new business can be an anxious verdict to make. One of the methods to help an undertaker gain confidence in the startup is to track the rudimentary procedures on starting a new company.. Procedure to establish a new company Establishing a Business Plan Shorn of a business plan, it can be very challenging to undertake the other procedures necessary in beginning a new company. The business plan will act as a roadmap to guide on how to approach the undertake(Pissarides, 2013). It will foretell how much the company will require purchasing supply Lorries, to order the stones and pay the staff. Manpower being a major requirement in this company, this plan will give an estimate on the number of drivers, manual workers and subordinate staff needed to set the operations going. For this company to succeed it must market and give distinct details of its supplies, competitive examination and revenue evaluations, all these details are projected in the business plan. Projecting the way the company will operate, revenue it will be generating and the changes the company will undergo is all part of business planning. A comprehensive business plan is a fundamental tool for a successful startup company(Pissarides, 2013). Financing the company The business plan will let the stakeholders know the rough estimate of money needed to set the company operations going, the projected revenue to be realized and the amount needed to maintain constant operations. It is essential to plan the financing as well. Financing a startup company can be obtained from a range of sources, including paychecks stakeholders current job, personal resources, private investors or lending organizations, like banks or credit institutions. Ongoing financing can be realized from sources, like bank line of credit, home equity loans secured for the business or company credit cards(Witt, 2014). The general Paperwork Any startup company will require some paperwork. The government may need a business certificate to facilitate filing taxes and opening the company financial accounts. In some countries a supplier company will need a general contractor's license to get started. Approaching the state sector of labor to know how to obtain a business certificate and any other state certification required will be the way to go. Insurance needs for the company should also be discussed with an insurance agent considering that stone supply is one of risk ventures to both the company assets and the manpower. Liability insurance is also a necessity to protect the company from harms and lawsuits(Granton Paul, 2014). The company location Deciding on the location of the company is a very imperative procedure in setting up a company. The startup may not attract many property developers as required by opening it remotely from the main cities. This is because many property developers are based on main towns and cities. They will mostly prefer to get materials from the supplier companies located just around the premises in order to cut on the transport costs. Stones being bulk materials, the company location away from quarries may also be costly generally and hence gauging the two options to come up with best is crucial. Similarly, Local business guidelines hinder the company being established in the spot considered ideal due to factors such as noise pollution and hence consulting zoning board is very important(Pissarides, 2013). Analyzing the a company startup Perceptive of how different sectors of a startup business are progressing can help understand the strong points of a business, where it is underperforming and factors which can be reformed for a better performance(Granton Paul, 2014). This will help manage company enactment proactively and efficiently. Non-financial aspects as well as financial ones should be considered. Some areas which could be considered are: Company customers this factor considers the number of customers the company has and the number it has lost and gained over a certain period of time. The company customer service this factor puts into consideration the waiting time taken by the customers before they can be attended to, complaints received from the customers and the reason behind the complaints. The company market share this factor will evaluate the company market portion and the fluctuations which are expected to take place over a certain time period. I.e. whether the share has increased or decreased compared to competitors The company staff this factor evaluates the staff satisfaction levels, the work quality and the environment. Feedback can be obtained through carrying out staff interviews. The SWOT Analysis SWOT analysis is the basic planning instrument that matches the powers and faults of a startup company with the prospects and dangers to undertake an action plan. Strengths and faults are internal to the company being analyzed while opportunities and threats are considered external factors to the company. While SWOT examination can be used for individual development, it's commonly used as a business planning instrument(Hill Westbrook, 2013). In my stone supplier startup company, SWOT analysis will act as a springboard to pave a way for an effective planning on issues like which type of granite to supply considering the two classifications of the granite i.e. the Igneous, siliceous variety and the demand for each separately. Secondly, it will act as the basis of evaluation of the market action plan based on the competitors approach and the type of stones they supply(Hill Westbrook, 2013). Strengths and limitations of using SWOT analysis A SWOT analysis helps a company to identify and comprehend key concerns affecting the company, without necessarily giving solutions. Being alert of the confines as well as the paybacks of a SWOT analysis before conducting it is very important(Kurttila, et al., 2013). Understanding what can reasonably be achieved makes SWOT analysis more worthwhile in business, and saves time. Ultimately, time must be spent to review SWOT analysis and use it to decide the best way to advance a company startup. Strengths of using SWOT analysis The key advantage of carrying out a SWOT analysis is that it will have slight or even no cost on this company. This simply means that the company will be able to start at a high note even without involving any external consultant or an advisor(Pickton Wright, 2015). Additional advantage of SWOT analysis is that it will focus on the most significant factors to affect this startup. Through this analysis company weaknesses will be addressed and counter some threats likely to affect the startup(Kurttila, et al., 2013). Weaknesses of SWOT analysis Mainly, SWOT analyses will only shield issues that can be reflected as strength, weakness, opportunity or threat in the company. It is hence difficult to address undefined factors, like factors that could either be a strong suit, weakness or both, with a SWOT analysis (e.g. this company will have a conspicuous location, but the rent may be very expensive)(Hill Westbrook, 2013) A SWOT analysis in this scenario will be limited because it does not prioritize issues, does not give alternative decisions, does not help in choosing the best approach and not all its facts will be useful(Kurttila, et al., 2013). Porters Five Forces analysis One of the greatest threats to a startup business is competition. Knowing the company competitors and their activities in the marketplace will greatly affect the startup current bottom line and its future planning. To analyze the competition, the Porters Five Forces model is used(Narayanan Fahey, 2012). Developed by the Harvard Business School's Michael E. Porter in 1979, the five forces model looks at the five particular factors that aid to determining whether or not a startup can be profitable based on other companies in the industry(Porter, 2015). These forces are: Competition in the industry; Potential of new entrants into the industry; Power of suppliers; Power of customers; Threat of substitute products. Porter's model can be applied to anysegmentof the economy to search for profitability and attractiveness Strengths of Porters Five Forces Porters Five Forces model has a crucial role in helping the management team of this startup company to weigh and assess the present market environment. It will provide an excellent base for an advance research and intelligence congregation needed to articulate this companys prospect strategy (Porter, 2015).considering the case of a granite supplier startup, this model of analysis will enable the driving squad of the startup to make a decision on the category of the granite to supply. This will be mainly based on the market demand. Supposing the Igneous category has a higher demand compare to siliceous, the startup will go for the Igneous based on market but according to Porters model, if the competitor companies are delivering siliceous category at a relatively cheap price the startup will be forced to go the way of the competitors in order to counter the substitute threat. Weaknesses of Porters Five Forces Porter's model faces difficulties in incorporating the difficulties of today's markets considering the frequent inter-relationships and product clutches of organizations. If a company defines its market proportion too narrowly to apt into the model there is a likelihood risk of overlooking the key elements, for example the statute and the relations between suppliers and buyers(Narayanan Fahey, 2012). Companies have to react to more than just flea market forces. They need to be alert of, comprehend the effects of, and react to government statute, organization ethics, and their communal responsibilities. The internal ethos and beliefs of a corporate will also carry impact when making a strategy(Narayanan Fahey, 2012). Porter's model is also incompetent to incorporate the consequences of strategic alliances or the distribution of expertise and resources as a more actual way to react to opportunities(Porter, 2015). Conclusion In conclusion, the key responsibility of Business Analysis tools is to merge all the business startup ideas, analyze and validate them as per the requirements of the business and for changes to business processes expected in future. Therefore, following professional business analysis procedure plays a great role in stirring an organization towards efficiency, productivity, and profitability. Works cited Granton Paul, 2014. Basic procedures to startup companies. journal of economics, Volume 1234, p. 45. Hill Westbrook, 2013. SWOT analysis: its time for a product recall. journal of long range planning, Volume 309, pp. 46-52. Kurttila, Pesonen, Kangas Kanjanus, 2013. Utilizing the analyticl hierarchy process in SWOT analysis, a highbrid method and its application. journal of policy and economics, Volume 453, pp. 41-52. Narayanan Fahey, 2012. The relevance of institutional underpinnings of Porter's Five Forces framework to emerging economies. an Epistemological analysis. journal of management studies, Volume 1234, pp. 207-223. Pickton Wright, 2015. The SWOT analysis in strategic analysis, strategic change. s.l.:s.n. Pissarides, 2013. Company startup costs and employment. knowledge, information and expectations in modern macroeconomics. s.l.:s.n. Porter, 2015. the five competitive forces that shape strategy. journal of Harvand business review, Volume 134, pp. 25-40. Witt, 2014. Entrepreneurs networks and the access of startups. journal of entrepreneurship and regional development, Volume 1098, p. 234.