Business - page 6

Why Do Small Businesses Fail?

Darryl Bachmeier Mar 27, 2019 Business

Running a small business can be difficult and no one wants to fail but many do. New companies have the highest failure rate of all. In fact less than 60% of new business make it past the first two years. What Reasons Do Small Businesses Fail? Poor Planning You need to come up and write down your strategic plan. You need to analyze your competition, forecast sales and plan for a changing environment. Not Enough Capital If you do not have enough cash flow to keep the business operating then you will run into trouble. Small business owners take on lots of personal debt using their credit cards to run the business. Cash is the lifeblood of a business. Ineffective Marketing You always have to be marketing your business. If you are not promoting you will fail to reach new customers and maintain a good reputation. Look at multiple channels...

The future direction of corporate sustainability

Darryl Bachmeier Mar 27, 2019 Business

As greater environmental concern grows with younger generations, I believe that the future direction of corporate sustainability movement will continue to grow to the point that sustainability will not be optional. In order to fulfill their own sustainability requirements, organizations will require their partners and suppliers to follow sustainability. This will raise the bar of sustainability quality across the board. With organizations like GRI providing a global standard for sustainability reporting requirements it will be easier for organization to understand how and what they should report. The role of corporate leadership in realizing this future is what we expect for any intuitive. Leadership must fully support it. They will need to prove this by creating the vision for the organization to follow. The vision must inspire. They will need to develop realistic goals that they can measure and report on. Leadership will need to communicate the value of initiatives. They...

Who are the biggest players in sustainability?

Darryl Bachmeier Mar 26, 2019 Business

I believe that the two biggest players in sustainability are government and consumers. Corporations indeed have a role to play as they have the ability to research and develop new technologies to solve issues but I believe it is the consumer that drive these changes. Corporations can lead the market but if the consumer is not ready to accept new ideas they will fail. Consumers are the ones that vote for corporations, and technologies by buying products and services. Consumers are also the ones that elect their government who both creates new regulations and enforces them upon corporations. The truth is that all three groups influence each other. Corporations hire lobbyists to influence politician’s decisions which impact regulations. Corporations can also choose to lead the way by enforcing higher standards on themselves. The government has the ultimate power but they serve the people (consumers). They create the regulations and enforce...

What influence do shareholders have on sustainability efforts?

Darryl Bachmeier Mar 26, 2019 Business

It is important that the investors believe in the company and its management. Shareholders react to gossip, news and rumors. If they feel that a company is being mismanaged or trying a new strategy far outside the element of the company’s core business shareholders will run fast. This means selling the company’s stock. Investors themselves may be interested in companies that work towards sustainability. Any effort to work towards sustainability can be seen very positively to potential investors. It may draw in more investments increasing the share price. Even though the stock price is not really the best indicator of the company’s value especially in the short term the company must monitor the stock price with any news released that may appear negative.

Theory X and Theory Y management styles compared

Darryl Bachmeier Mar 25, 2019 Business

Theory X and Theory Y management theories originated in the 1960s by Douglas McGregor. Theory X and Theory Y management styles make assumptions about human behavior and are essentially opposites of each other. These are among the first theories discussed in business schools, and are fairly easy to understand as they are two completely different viewpoints and most managers are somewhere between the two. Theory X is a very pessimistic view of employees while Theory Y is much more optimistic. These theories seem to try to give to ends of a spectrum and there are other management theories that build upon these. Theory X employees hate work and will do anything to avoid it employees do not want any responsibilities what management says goes employees are not creative employees are motivated only by rewards and money the organization must have a well-defined hierarchical structure employees require close supervision, need to...

What is overhead and why should you try to reduce it?

Darryl Bachmeier Mar 24, 2019 Business

Overhead is the total expenses paid by the business. It is the expenses paid to keep the business running day-to-day. There is no way of getting around it. It must be paid for the business to generate any profit. What makes up overhead? Rent, wages, insurance, legal fees, supplies, taxes and utilities are all examples. Overhead costs can be grouped into either administrative or manufacturing. Administrative overhead includes anything that supports other areas of the business some of this includes admin staff wages, office equipment, supplies and travel expenses. Manufacturing overhead re all costs in order to create a product or service. These costs are much more visible. They can also be grouped by location. Wages for production staff i.e. plant workers, deprecation, taxes, rent, utilities are all examples. Overhead is used for budgeting. It allows a business to figure out how much to charge consumers for product or service...

What is appreciative inquiry?

Darryl Bachmeier Mar 23, 2019 Business

Appreciative Inquiry is all about making change. It looks to the positive strengths to make change happen. The leader has to motivate and empower followers in order for the change to occur. Often when businesses or individuals have a problem they seek to find what is going wrong and focus all their efforts at resolving the negative. Appreciative Inquiry turns this on its head by finding what is working and focusing all efforts on make the positive even better. There are four stages of appreciative inquiry Discovery, Dream, Design and Destiny. (Daft, R. L. 2014 P.467) Discovery looks for the strengths to find what is working. Dream this allows us to imagine a world in which the organization would be like if the best outcomes were a normal occurrence. Design asks us to create a plan so that we can build the dream. Destiny is all about implementing the plan....

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