Executive the next step. Finance is significant

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Monica is the owner of the salon and she is looking to expand
as her current premises is quite small. However to do so she needs to consider
the changes that will take place and how it will affect the business. The report
below discuses about the different functions of business and their importance .Business
operations is a core function. Having a good operations system in place can have
significant impact on the outcome of the business. An organisation is like a
tree with different branches on the side. Operations function places different activities
in places i: e the operations manager’s duties are to hire, train employees, monitor
existing processes and create strategies for improvement. Marketing is also core
business function. It is important to have effective and efficient marketing
tools as they will cause growth and development. The tools such as social media
increases business popularity which may potentially raise business reputation
by reaching out to a lot of clients. Information tech (IT) has been essential part of businesses for a few decades and
still is. The importance of having innovating IT system in place can save you a
lot of time and money and boost your business to the next level. Human
resources(HR) is also an important function as it will assist in finding the
best candidate for work, managing employees pay, compensation and helps in
handling some performance issues. Finance is the heart of the business .Without
no finance there will be no operations, marketing activities taking place. The
whole business will not be able to take the next step. Finance is significant
part of a business. A business which healthy finance is a business that will
have the capability to expand.


















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Monica Johnson is the business
owner of a beauty therapy. As a private owner she began operating seven years ago
from a salon to beauty therapy her business offers wide range of services to people.
The business has achieved great support from the locals as it provides
excellent customer care and professional expertise from staff. The business is booming
with limited room space in the premises. Recently she made a decision to find a
better and a more comfortable place to grow her business empire which currently
operates in a small leased property.

Monica trains two students each
year; 3 of her employees are full-time therapists who were her students
previously and 1 works part time. Her client records are kept on a data card.
The clients have complained as there has been a file mix up. The government has
introduced the “new entertainment licence” to all organisations which offers
the use of sun beds. The license price is £700 regardless of the size of
organisation. Also it is must that the organisation offers the clients
showering facilities (unavailable in current premises due to limited space).

The following report will be
viewing Monica’s current business functions (Operations, Marketing, IT, HR  and Finance) to determine their performances
for the future prosperity of the business. This report will also help in
discovering the next step for the business as Monica is looking to expand by
leasing a decent sized premises due to increasing size of her client base and
staff. Furthermore there will be suggested actions in the report regarding the
move of the beauty therapy into a vacated bank.





















1.1 Operations

organisations have operations function because every organisation produces
products or provides services (Slack nigel). Business operations management is
responsible for managing processes of creating service. Within the operations
function there are managers who are responsible for managing some if not all
operations. It is established in the case study that Monica’s Salon is small
for the amount of clients she receives and staff she has. She manages operation
activities herself. As part of the operations function moving into a bigger
premises is a smart move as it will help improve the quality of service the
staff are providing to their clients because they will have more room space. In
the long term this will help the business to expand as the clients are more
comfortable and satisfied with the space they have. This means that positive
word of mouth will be out to people when clients experience a slightly bigger,
better and comfortable premises. Creating a better operations plan will have
significant impact on the business. The cost of the business will drop in the
foreseeable future. This business function also involves placing people in the
right place which helps save money and time. It is vital to manage information
hence that’s why Monica will be getting a better IT system.

1.2 Marketing

is a tool which is used to manage profitable customer relationships. Part of
this tool is the marketing mix which are the 7ps product, place, price and
promotion, people, process and physical environment (Michalska.A). Organisations
that sell product or offer service need to consider the 7ps i: e which products
will they sell? Where is the best place to do so? And how much for? .In
marketing the marketers have to understand the importance of the core concepts:
they are needs, wants and demands, Market offerings, value and satisfaction,
relationship and exchanges and finally the markets they are in. The whole
concept is to satisfy customers’ needs to achieve organisations profit and gain
less competition. In the case study Monica needs to carefully select the
appropriate tools which are suitable for the use of her business. The main
advantage she has is that the local community have been satisfied with her
services. Monica can grow her business further by the use of digital marketing.
This tool is very powerful and by using this tool she will be able to reach a
wider audience and gain more clients. By using Instagram she can get snapshots
of services she provides i:e hairstyling and posting it. This will increase the
awareness of her business therefore helps her gain more profit. She can also
post offers on Facebook and twitter where she can get replies instantly. Also
YouTube can have significant impact. These tools are all there to flourish the

1.3 IT

technology systems are needed in almost every organisations. They play vital
role in the success of the business. Having a fast effective and efficient IT
system will help save time which means more profit turnover. Currently In the
case study Monica has put in place IT system which books in clients but there’s
been a mix-up of files which has led to poor quality service. The data which
sets out preferences of treatment plans for different clients have somehow been
mixed up. Which led to employees getting incorrect information and provided
wrong service to their client. This has been a disaster which has left clients
unsatisfied and damage the business. This issue can be fixed by placing the
name of client and preferences on spreadsheet .Therefore when the staff opens
up the spreadsheet they will see the clients information and preferences.

IT has
benefit both tangible and intangible. Tangible benefit is that organisations will
get great reputation from customers.IT improves product or service lookup and
ordering which saves time and money. One Intangible advantage is that it helps
businesses promote their products or services in the most innovative and
efficient way. With no IT as part of the business the business will not be
going very far. Monica’s salon will boom when IT system is upgraded.  The use of “digital marketing is more
efficient than radio or newspaper advertisement” (Business vibes).
Organisations through the use of IT have been able to make better decisions,
more effective marketing as well as customer support.

1.4 Human
Resources (HRM)

resources is another business function which plays a significant role. Human
resources carries out the following functions recruiting, hiring, evaluating,
employee benefits, training, and compensation. HRM can be classified under
three categories (Michalsaka.A). They are HRM in personal management which
includes manpower planning, hiring, recruitment and selection, training and
development etc. The next category is HRM in Employee welfare which deals with
working conditions trying to make the environment worth working in. Also it is
responsible for health and safety employees, elimination of work hazard,
employee counselling etc. Finally the third category is Industrial relation
which deals with addressing employee complaints with management to maintain
peace in an organisation. Human resources seeks to safeguard the interest of
both employees and management.

 In the case study Monica needs to have good HR
skills as she is self-employed. She does not need HR management as her business
is small. Monica needs to employ more staff as she will be expanding into a
bigger building. Recruitment of workers is difficult therefore she can use
networking to recruit. The selection process can be done by her and an
experienced professional. She can recruit her trainees. It is vital that she
employs efficient fulltime workers as her clients base will be increasing through
the use of social media.

1.5 Finance

is a simple task of providing necessary funds required by the business of entities
like companies, firms”(Akrani,Gaurav). Finance is a key business function for
all organisations. The business activities cannot move without finance. Finance
is connected with marketing, production and other activities. The organisations
activity can be started, continued and developed with finance .Finance is
involved in decision making of the organisation. The function of finance is to do
financial reporting which are the balance sheet, cash statements and profit and
loss. Also Financial investment which is the use of money for profit or return
and manage organisations money. The case study shows that Monica has decided to
lease a bigger premises but this will come at a huge cost as she will need to
renovate the new premises and also add showering facilities. Her decision to
move into the new premise is a smart move even though it is expensive. In the
new premises Monica will be able to offer more services such as sun and she
will have plenty of space for clients who need her services. This will generate
profit in the long term and increase business reputation and development.


conclusion it is important that every organisation knows its business function
and activities clearly. Identifying issues which may cause damage to the
businesses image and reputation is vital to keep business in business. Monica’s
Beauty Therapy will soon be able to offer more services. Choosing to move into
another premises is a clever move from business point of view. Expanding is
great if you have continuous flow of huge size of client base as you will have
more profit. There will be variety of changes her business functions need to
accomplish (refer back to main body). Further recommendations that will be useful
for Monica are. In operations she can purchase quality equipment’s that will
last longer from her trusted suppliers and plan ahead where she wants those equipment’s
to be in the new premises. Next is marketing Monica needs to spend money in
designing a website which will be used for growth and awareness purposes of the
business. For IT, buying a new computer or upgrading software is another
solution which may cost her but will prevent errors from taking place in the
future. For HR, if Monica has less time to be able to manage her business she
can get external professional HR firm to manage and this may cost her but will
give her time to manage the other core business functions. Finally it is
important for her to manage finance, she will need to consider ways to cut her
cost without effecting her business growth.

Categories: Case Study


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