Effective and efficient management is deemed as substantial key to successful business and its growth and development whereas the problems related to management include strategic, operational and financial, which may affect the profit acquisition of businesses (Longenecker, Petty, Palich,& Hoy, 2011). With respect to management issues within organizations, small businesses management are largely considered as easy task in relation to managing small number of employees and limited scope of organizational performance (Dunn& Liang, 2011). Considering the significance of effective and efficient management within small businesses, this paper aims to analyze the key management factors within small businesses and issues that it may face in the result of in appropriate management process within small businesses activity. professional writing service
Small Business Management
Small business that is defined as economic activity at local level with limited capacity to produce the output certainly faces as much problems in terms of management as large organization does (Longenecker, Moore, Palich,& Petty, 2005). Businesses are identified with certain activities that aim to produce output after successful phase of input and production process, such as strategic activity, operational and marketing activity. It has been found that small business is always with the vast opportunity to grow and expand its operational activity and it can only be achieved when important organizational or business activities are managed appropriately. According to Longenecker and Loeza (2010), the reason mostly small businesses fail is that the importance of management is always ignored and its true essence is always misunderstood and implemented inadequately. It has been observed that small businesses mainly focus on the maximization of their output, and in this way, they greatly underestimate the process of effective management within their business process. According to Hatten (2011), the key to achieve successful management within small business is based on the examination and evaluation of the marketplace environment by creating employment and profit opportunities that could give the expected growth and financial development to the business. Get dissertation writing help uk.
The area of operational management within small business has not been much part of researchers’ attention; however, small firms and businesses have been found focusing on the operational management aspects, which include managing inventory and manufacturing. In this regard, Kakkar (2009) determined that small businesses to manage their operational activity make the use of numbers of techniques. The studies made on the inventory management within small business have found the use of forecasting system and probabilistic forecasting system. In this way, studies conducted by Bamford and Bruton (2006) have found that operational activity within small business is comprised of aggregate planning, forecasting, facilities layout, facilities location, employment design and planning, inventory control and management and production. Experienced assignment writer uk are available online.
Strategic management within small businesses has been observed as planning for the future growth of the businesses (Analoui& Karami, 2003). In this context, it is found that strategic management plays considerably important role, as appropriate management in the area of strategies help the small business to achieve predictable and stable growth. Effective strategic management in small business serves with the eradication of threats and crisis that businesses are likely to meet in the future. According to David (2008), effective implementation of strategic management within small business ensures the firms to deal with the problems and make effective decision for the growth of the businesses. In this respect, it has been observed that strategic management in small businesses is mainly focused on cost reduction and profit maximization, while according to Analoui and Karami (2003), there is misperception in small businesses about the implementation of strategic management. In this way, strategic management within small business is partially associated with the finance management in which business merely focuses on the cost reduction and maximization of the profit.
Issues and Challenges in Small Business Management
The organizational structure of small businesses is observed as different and so is their management. As identified above, the management within small business is perceived differently than it is taken in large organization therefore, small business comes across the issues and challenges of distinct nature. Operation management is taken into account as important aspect of organization regardless of their size, since every business and organization are engaged in producing and delivering their products and services by employing effective and efficient management process (Bamford& Bruton, 2006). On the other hand, operation management in a small business can have unique combination of problems in practice, because large businesses have enough resource to allocate individuals to specialized undertakings. Small businesses, conversely, often encounter problem in implementing successful and effective operation management process due to insufficient availability of resource. In this way, Kakkar (2009) has found that small business is compelled to implement the operation management process in which individual is to perform number of tasks. The challenge faced by small businesses in this context is that such an informal structure of business can permit to address promptly as opportunities and problems appear. Decision-making process, on the other hand, can appear confused because of overlapping in role of people involved in the management process. According to Beal (2007), the process of effective strategic management is as imperative to the success and even survival of small businesses as it is imperative for large businesses. In terms of successful implementation of strategic management in small business, it is observed that small business failed because they more focused on the short-term profitability rather than long term, while the benefit and purpose of implementing strategic management within business is to achieve long-term expectations.
This paper can be concluded by stating that effective and efficient management is the key to successful business irrespective to its size. Effective management within small business can serve with improving the operation and strategic issues, which in result can affect positively on the growth and development of business. Number of management aspects is present in the internal environment of the businesses, but this paper has mainly focused on the operation and strategic management, its significance and successful implementation issues. In this regard, it is determined that small businesses due to lack of sufficient resources is unable to implement effective management in their business activity, however, the significance of effective management process cannot be ignored for the growth and development of the organization