Management Of Business Unit2 Ia e72j

CXC CAPE MANAGEMENT OF BUSINESS INTERNAL ASSESSMENT (I.A) 2012-2013

TOPIC: An investigation to determine the micro-environmental factors, influencing the “Garden Cinema” organization and its possibility for success

Name: Oshin Taylor Teacher: Miss Francis School: St Thomas Technical High Territory: Jamaica Centre #: 100118 Candidate#: 1001180825 Year: 2013

TABLE OF CONTENTS PAGES ACKNOWLEDGEMENT………………………………………………………………… INTRODUCTION o TOPIC STATEMENT…………………………………………………….. o AIM OF PROJECT………………………………………………………. o BACKGROUND OF THE PROJECT…………………………………… LITERATURE REVIEW………………………………………………………………… METHODOLOGY……………………………………………………………………….. PRESENTATION OF DATA …………………………………………………………… ANALYSIS OF DATA ………………………………………………………………….. INTERPRETATION OF RESULTS……………………………………………………… CONCLUSION AND RECOMMENDATIONS………………………………………….. BIBLIOGRAPHY………………………………………………………………………… APPENDICES………………………………………………………………………………..

ACKNOWLEDGEMENT I would like to thank the Almighty God for giving me the knowledge, strength, wisdom and courage to be able to undertake this tedious task of completing this project. Also my Management of Business teacher Miss. Francis, who has been assisting me in the completion of this internal assessment and also my uncle, Mr. Welton Junior. I also want to thank my friends and other family for their help and encouragement throughout this assignment. Thank you all.

Introduction Topic Sentence An investigation to determine the micro-environmental factors, influencing the “Garden Cinema” organization and its possibility for success.

Aims of Project  To identify the micro-environmental factors that affect the success of the business.  To implement solutions that will foster growth in the business.

Background of the project The skills of the entrepreneur are very important determinant of the success of a new business. These factors can be categorized as being micro. Micro-factors are internal and can be controlled of influenced by the entrepreneur. According to Peter Stimpson (2007), many entrepreneurs fail to pay sufficient attention to record keeping, as they either believe that it is less important than actually meeting customers’ needs or they think they can everything. Working capital is a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity. Running short of capital to run the day-to-day business affairs is the single most common reason for the failure of the new business to survive the first year of operation. Kim Harrison (2004) stated that capital is needed for day-to-day cash, for the holding of stocks and to allow the giving of trade credit to customers, who then become debtors The manager of the Garden Cinema has some form of work experience-but not necessarily at a management level. The manager may be keen, willing to work hard and with undoubted abilities in their chosen field. According to Michael Lewis (2012), some organizations exist to provide for new entrepreneurs in the form of advice and training. He also stated that a manager with poor social skills will over react to an employee’s work performance. The Garden Cinema is a movie theatre located in the historical Botanical Garden in the community of bath. It has been operating smoothly for the past two (2) years. These factors are affecting the development of the business success negatively.

Literature review Micro environment factors are factors close to a business that have a direct impact on its business operations and success. These factors or elements in the Garden Cinema affect the performance and decision-making freedom of the business. These factors include lack of record keepings, working capital deficiency and poor management skills. Terry Clayton (2002) stated that records management isn't exactly an exciting subject and many people working in the field are not 'istratively inclined'. Most people do, however, recognise the importance of good istration and do the best they can to comply with head office guidelines or ensure that some form of basic records management is in place. It's a tedious and time consuming chore but paying attention to basic records management can save you and your organization from some very awkward or embarrassing legal problems later on. The working capital is among the many important things that contribute to the success of the business. Without it, the business may cease to function properly or at all. If the company has a very low amount of working capital it may be at risk of running out of money. To avoid problems in working capital, the business owner should spend time carefully looking at what is going on in the business at this level. A positive working capital is very important as the amount of working capital a company has determines its financial health. There are four main financial requirements of a business, namely, working capital, fixed assets, marketing costs and a contingency fund. Financial management for a business involves managing all of these in an efficient manner. Working capital is the amount of money a company has to carry on with its daily operations. To determine working capital requirement, lets first of all learn how to calculate working capital. (Book: Financial Management: Text, Problems and Cases fourth edition by M. Y. Khan)

One of the best ways to counsel a manager is to allow your other managers to counsel her. By creating leadership teams, you can place your managers in a room together and discuss effective ways to handle problems that have come up during the preceding week or month. Your manager who is lagging behind in management skills will learn from more experienced managers, and you can add your own suggestions. In this way, you can counsel all of your managers while your less-experienced manager listens and picks up pointers. A manager may fail to recognize employee achievements. You can change this behavior by asking the manager to provide you with a list of positive behaviors and outcomes for employees. If you ask for this list on a regular basis, your manager will get into the habit of identifying employee achievements. You can then counsel your manager about ways to express appreciation to highperforming employees. (Jamaica gleaner, published: Wednesday | June 25, 2008)

Methodology In order to accurately obtain the relevant information needed to complete this project both primary and secondary methods of data collection were used. The primary mean of collecting data involved the use of questionnaire. The questionnaire consisted of six questions which comprised two (2) open and six (6) closed ended questions. The questionnaire will provide suitable and accurate information that is valid and reliable. Large amount of information can be collected from a large number of people in a short period of time and in a relatively cost effective way. A total of 20 questionnaires were issued using a random sampling approach. Secondary means of data collection involved the use of textbooks, newspapers and internet. These two sources used in the data collection process were sufficient to complete my research. The researcher conducts this research to a clear understanding of whether or not the internal factors divide the company and how so in the Garden Cinema . The research chooses a sample size of twenty (20) respondents. The researcher expected to receive back at least fifteen (15) of twenty (20) questionnaires. The questionnaires were issued to 20 employees in the company, 10 females and 10 male, in the age range of 18 – 35 years. The researcher uses both male and female because the researcher wants different opinion from the employees of the organization. The researcher used the random sampling technique for the selection of this sample group. The researchers choose random sampling over other types of sampling because observations are obtained by sequentially selecting individuals from the population, and each time a selection is made, all “available” individuals have equal chances of being selected. It is also considered as a fair way of selecting a sample from a given population since every member is given equal opportunities of being selected.

Presentation of Data Question #1: Number of male and female

Number of Males and females

50%

50%

Male Female

Figure 1 The pie chart above shows an equal percentage of 50 to both male and female.

Question # 3: What are the micro-environmental factors that affect the success of the business?

factors

A bar graph showing the microenvironmental factors.

poor management skills

working capital deficiency

lack of record keeping 0%

10%

20%

30%

40%

50%

60%

number of respondents

Figure 2 The bar graph above shows that 50% of the sample indicated that poor management skills affect the success of the business while 30% indicates working capital deficiency as well as 20% of them indicates lack of record keeping.

Question number 5: What can be done to prevent these micro-environmental factors from affecting the business? Prevention

Percentage

Avoid problems in working capital

40%

Adapt behaviours to reduce distress

50%

Others

10%

Figure 3 The table above indicated that to prevent these factors, 50% of the samples indicate adapt behaviour to reduce distress while 40% indicate avoid problem in working capital and 10% indicate others.

Question # 6: What solutions do you think will foster the growth of the business?

A pie chart showing solutions 10% Improvement of management skills 40% 30%

Excellent record keeping Practice good money management Others

20%

Figure 4 The pie chart above show that the solution for the factors is improvement of management skills with 40% of the sample while 30% indicate practice good money management as well as 20% indicate excellent record keeping. It has indicated that 10% indicate others for the solution.

Analysis of Data

The pie chart in figure one (1) shows that 50% the sample, both male and female has taken part in the completion of the questionnaire.

The bar graph in figure two (2) illustrated that the micro-environmental factors that affect the success of the business are lack of record keeping, working capital deficiency and poor management skills, with 20%, 30% and 50% of the sample, respectively. The researcher believes this is so because the business has been facing a lot problem from these factors. The table in figure three (3) indicated that to prevent these factors, the manager has to avoid problems in working capital and to adapt behaviours to reduce distress. With 40% and 50% of the sample, respectively. The researcher believe this is so because avoid problems in working capital; the business owner should spend time carefully looking at what is going on in the business at this level. The pie chart in figure four (4) illustrated that 40% of the sample indicate that improvement of management skill, 20% indicate excellent record keeping and 30% practice money management are solutions that can foster the growth of the business. The researcher believes this is so because the manager lacks management skill and does not know how to manage is money wisely.

Interpretation of Results According to the data shown, majority of the employees or respondent suggested that the micro- environmental factors that affect the business are poor management skill and working capital deficiency. The book : Financial Management: Text, Problems and Cases fourth stated that working capital is among the many important things that contribute to the success of the business. Without it, the business may cease to function properly or at all. If the company has a very low amount of working capital it may be at risk of running out of money. It was stated by M.Y.Khan in the Jamaica Gleaner that one of the best ways to counsel a manager is to allow your other managers to counsel her. By creating leadership teams, you can place your managers in a room together and discuss effective ways to handle problems that have come up during the preceding week or month. It was illustrated that majority of the sample stated that to prevent internal factors the manager has to be aware of working capital deficiency and to adapt behaviours to reduce distress. The text: Financial Management stated that to avoid problems in working capital, the business owner should spend time carefully looking at what is going on in the business at this level. A positive working capital is very important as the amount of working capital a company has determines its financial health. It was also stated that a manager may fail to recognize employee achievements. You can change this behavior by asking the manager to provide you with a list of positive behaviors and outcomes for employees. It was suggested by the respondents that the solution given were to improve management skill and practice money management. It was stated on the Jamaica gleaner that improvement of management skill is needed for a business to be success full. Without this a business will be unable to make profit and that practicing money management is the greatest

thing for a business. Practicing this will enhance the success of the business so the manager will be able to continue the day-to-day running of the business.

Conclusion In conclusion of this research, the researcher as realized that the micro-environmental factors are divided into many parts in the business and that it has divided the business by bringing it to bankruptcy and causing some of the workers to quite. The was to find out what are the internal factors of the business and research as shown that these factors are lack of record keeping, working capital deficiency and poor managerial skills. The researcher as realized that solution was given to avoid these factors.

Recommendation To avoid these factors: 1. The manager have to avoid problems in working capital, the business owner should spend time carefully looking at what is going on in the business at this level. 2. Adapt behaviours to reduce distress. That means making small but meaningful adjustments that are both appropriate in the new setting and true to your own values.

Bibliography Rao. (2007). Human Resource Management, Second edition. India: Excel books. M.Y.Khan. (2004). Financial Management: Text, Problems and Cases, Fourth edition. Tata McGraw-Hill Education. Clayton T. (2002). "Why You Should Care About Records Management". America.

http://smallbusiness.chron.com/effective-techniques-counsel-managers-poor-skills37856.html#gsc.tab=0: linked received on March 18, 2013

http://www.abahe.co.uk/business-istration/Quality-Management-Systems.pdf : linked received on March 25, 2013

www.b2bcfo.com/article/Working-Capital.htm : linked received on April 18, 2013

http://basiccollegeing.com/2009/05/what-are-the-reasons-for-the-decrease-or-depletionof-working-capital/

www.wisegeek.org/what-is-working-capital.htm : linked received on April 21, 2013

http://blink.ucsd.edu/HR/policies/conduct/records.html

www.learnmarketing.net/microenvironment.htm www.businessdictionary.com/definition/microenvironment.html : linked received on April 23, 2013

Appendices

INTERVIEW Questions 1. What is the role of the manager in maintaining records in the business 2. What are the causes of working capital deficiency in the company 3. What are the measures used in affecting quality management skills in the company 4.

How effective are the measures used in finding a solution to the problem of microenvironmental factors

Instrument used to collect data

This survey is being carried out to determine the micro-environmental factors, influencing the “Garden Cinema” organization and its possibility of success. The information given will be confidential as most questions require a tick (√) to responses. At the end of the study the researcher hopes to find suitable recommendation for the problem studied and also to develop positive work attitude to any given task.

Questionnaires Instruction: This questionnaire consists of six (6) questions. Please place a tick and suggest an answer on the lines provide. Do NOT put your name on the questionnaire. 1. Indicate your gender Male Female 2. To which age group do you belong? 20-25 ( )

26-30 ( )

31-35 ( )

36 and over ( )

3. How long have you been working in the company? 1-5 years 6-10 years 11-15 years 16 and over 4. What are the micro-environmental factors that affect the success of the business? Lack of record keeping Working capital deficiency Poor management skill 5. What can be done to prevent these micro-environmental factors from affecting the business? Avoid problems in working capital Adapt behaviours to reduce distress Others _________________________________

6. What solutions do you think will foster the growth of the business? Improvement of management skills Excellent record keeping Practice good money management Others __________________________________