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Business Management Capstone – Part 4

Resources for Implementing the Recommendations

In order to implement every recommendation, there are various resources needed. The first recommendation entails seeking access to finances pertinent for effective operation of Chong Wholesale. Significant source of such finances include banks and credit/financial institutions. In that light, an important resource is the sales record that the company will use to secure loans from different financial institutions. With such sales record, financial institutions can fully assess the monetary status of the firm, and thus, be better placed to make a decision of either or not credit will be granted.

The other necessary recommendation for Chong Wholesale is a change in leadership; hence there is the need to search for experts to fill the management positions. In this juncture, the resource required to accept the recommendation according to which people will introduce new and appropriate leadership styles. Such people are experts and they include a sales manager who will be charged with venturing into the online market. Besides, a CEO will be pertinent, and together with the sales managers, there will be the formation of a strong and powerful coalition. Considering the leadership support for changes by applying Kotter’s 8 Step Model, Chong Wholesale will benefit from goal-oriented leadership and management.

In attaining the CRM integration recommendation, the company will need specific human, capital and physical resources. Firstly, IT experts (website developers) will be hired on a part time basis to develop the company website. Other than developing the website, the new employees will be involved in routine maintenance and training other non-IT experts on operating the website. Secondly, bank financing will be necessary for purchase of various computers and other facilitating equipment. Another significant resource in this situation is CRM software that will be incorporated into the newly created company website, and in so doing, it will become efficient for such departments as customer service, sales, and marketing understand what their customers need, particularly in the wake of online markets. Since the software captures important customer information, the company will benefit by providing whatever goods and services are demanded by their target customers.

Visual Timeline

Actions Start Date End Date Resources/Cost Duration Needed
Consultation Meeting
Identify Marketing/Sales Manager Sales managers, Company CEO
Meeting with clients to discuss needs Company clients
Meet with I.T. Consultants to Design Website 07/15/2017 07/28/2017 IT experts (website developers), Initial website consulting cost $1500 14 Days
Purchase CRM Software from Sales force

Provide I.T. employee

07/18/2017 07/25/2017 Bank finances,

Sales records,

$2000/ year subscription from salesforce.com

7 Days
Demonstrate Website to existing clients (Beta Launch) 07/28/2017 07/30/2017 Training to owners and new part time employee

 

2 Days
Launch Website and Integrate with CRM 07/31/2017 07/31/2017 Website developers,

CRM software experts

1 Day
Purchase Printing Machine 08/01/2017 08/01/2017 $3000 1 Day

Long-term Organizational Impacts

Financial Management

By implementing the recommendations as mentioned earlier over the next five years, Chong Wholesale can expect organic growth in revenue from online sourced sales. The long-term outlook for revenue will be sustainable if Chong Wholesale is better placed to implement the financial management changes. When comparing the costs associated with the new printing machine, Chong Wholesale can expect a return on investment that will increase its revenue. It is expected that the business can regain its investment costs of the printing machine within five months.

The goal of the business over the next fiscal year is to establish a sustainable revenue stream from online orders and see an increase in new orders from individuals. By implementing the recommendations, Chong Whole can expect to bring approximately $150,000 in new revenue.

Leadership Management

One of the major challenges identified at Chong Wholesale is ineffective leadership as it has been earlier noted, Mr. Park (as the sole proprietor) makes unilateral company decisions. Even though this is the case with such kinds of business entities, there is the need to seek advice from experts in various fields such as finance, marketing, and also leadership. Due to face-to-face delivery of goods, the company fails to reach out to the online market which is growing at a considerably higher rate in the modern world.

Therefore, by adopting a change management process, Chong Wholesale can see improvements in relationships with its customers, improvements in completing its objectives and long term sustainable growth in the business. There is the need to note that customers feel content and remain loyal to companies that take heed to claims, concerns and also demands.

Information Technology Management Impacts
By creating a company website with full CRM integration, Chong Wholesale can shift their marketing efforts online to allow a greater reach for new customers and new markets.

Company Website:
By creating their own website, Chong Wholesale allows existing customers to place and track orders for their products. Chong Wholesale had to hire a temporary full-time employee whose responsibility is to create the website and integrate the website with the company’s new CRM management system. These new employees will be kept on as part time employees after the implantation process to manage the website. This new employee will work 8 hours a week to conduct routine maintenance or training for the website.

It is pertinent to note that by venturing into a new market i.e. online market, Chong Wholesale will require more experienced employees ranging from sales managers, IT experts, record keepers, and finance managers. Therefore, the operating costs of the company will as well increase, but after a full cost benefit analysis, the company will not only break-even but also realize more profits.
Benefits of CRM
By incorporating a CRM system, this will allow Chong Wholesale the ability to place orders, customers inquiries and customer data in the cloud and assist the company’s marketing and operations effectors. A CRM system will bring the following benefits for the company
1. Increased sales as it allow Chong Whole to follow quality leads and identify key customer prospects. CRM software allows Chong Wholesale to identify its most valuable customers and personalized communication to increase conversion and engagement with its customers.
2. CRM will allow reliable and fast decision to make adjustments to the company’s operations when it places orders. CRM allows the company to allocate resources for effective and timely delivery of every order.
3.CRM allows managers to conduct business mobility and increased the productivity of the owners and sales mangers in the field. CRM users can access customer data on the field and assist customer to follow up with their orders or place orders via the cloud.

Client Time Log

Date Duration Method Summary Action Items
06/01/2017 25 Minutes In Person Initial meeting with client gain approval for project and participation Client Verification Forms
06/03/2017 30 Minutes Phone Discussed the major problem with business and created a problem statement. Discuss future timeline Obtained signed client verification form with final problem statement
06/05/2017 In Person Meet in person to discuss specific challenges to problem statement and meet with employees Prepare for observations
06/10/2017 1 Day In Person Sit in with owner and observed a “day on the life” Note all findings and create recommendations in next meeting
06/20/2017 1 Hour In Person Discussed findings/recommendations to problem statement Follow Up with implantation plan report
07/01/2017 2 Hours In Person Create implemented plan for recommendations Set up owner with new partners to build website/CRM
07/14/2017 1 Hour In Person 2 week follow up Follow up with any problems after plan is implemented

 

 

 

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Business Management Capstone – Part 3

The Solution to Challenges in Financial Management    

As has been ascertained earlier, lack of finances is the key aspect that constrains the purchase of equipment necessary to meet customer’s demands. Similarly, Chong Wholesale is unable to hire consultants due to the lack of capital to facilitate the consulting costs. Therefore, it is recommended that the proprietors ensure that there is availability of bank financing.

A solution to the lack of finances can be achieved by ensuring that they have access to banks that will act as the fundamental source of borrowed finance. There is the need to note that for sole proprietorship, the most suitable way to address the problem of lack of finances is to seek assistance from lending institutions such as banks, finance companies or even credit unions. As explained by Fabozzi and Drake, sole proprietors, just like other individuals in business, should align their financial decision-making to maximization of wealth (of owners) (542). The borrowed finance will be pertinent to hire consultants who will see the company reach higher positions in terms of market share as well as revenues realized.

The proprietors of the business should understand that entering the online market is a promising endeavor in the modern world. Despite the costly equipment and personnel required to soar Chong Wholesale in the online market, the associated returns are reasonable. Thus, Mr. Park should support the move, and this can only be attainable if the company has adequate finances.

The Solution to Challenges in Leadership Management  

Change is a word that generates uneasiness most in the business world, and that has not changed for Chong Wholesale. It is critical that Mr. Park and Ms. Park shows support for any changes and express the support when communicating with their clients and staff. Chong Wholesale’s small workforce can develop a level of comfort knowing that changes being implemented in the company will improve the business operation and guarantee success for the company going forward.

Chong Wholesale should ensure leadership support for changes using Kotter’s 8 Step Model. As proposed by Kotter, organizations should implement the essential 8 step process for attainment of transformation. The first step is establishing a sense of urgency, where in the case of Chong Wholesale, the need for online market is particularly urgent. The next step is to form a powerful coalition that will be charged with leading the change effort and also come up with strategies to attain the vision of the company (Petersen and Pedersen 678). The third step that Chong Wholesale should take is to create a vision that will direct the change effort, and which will be followed by communicating the vision by use of every available channel of communication. At this point, the guiding coalition should teach new traits and as well lead by example.

The next step is to empower others to act towards attainment of the vision. The Chong Wholesale coalition that will have already been formed will be pertinent in removing obstacles to change at this level. Similarly, risk taking should be encouraged, and there should be an adoption of non-traditional activities, ideas and also actions. The other step necessary should be planning for and creating short term wins, and at this juncture, the new management should be committed to recognizing and rewarding employees demonstrating improvements. The step in Kotter’s 8 Step Model that is applicable in Chong Wholesale is bringing together improvements and further pushing for more changes. The move is attainable through hiring, developing and also promoting employees who have an upper hand in implementing the company vision, i.e. venturing into the online market. The last step is to institutionalize the new strategies or approaches (Petersen and Pedersen 680). Leadership at Chong Wholesale should create links between new traits and success of the enterprise. In other words, there should be development of channels that will not only facilitate leadership development but also its succession.

Chong Wholesale needs to realize that a successful change strategy should not be limited to short terms of profits or temporary changes, but must beset the whole organization for sustained change.

The Solution to Challenges in IT Management 

Chong Wholesale still uses a manual ordering process when orders come in from its customers. There has been no implementation of an automated process for placing orders, leaving customers with little information regarding the status of their orders.

Two significant technology recommendations are being proposed, namely creating a company website to place orders and market the company’s products, and allow CRM integration through the website.

Company Website

Chong Wholesale currently does not have an online presence where it can sell or market its products on an online marketplace. Therefore, it is recommended that the company develop a website, and through its implementation, various aspects as described below should be considered.
1. The establishment of goals. Chong Wholesale needs to establish a list of goals and specific criteria for the company website. One of the simplest questions the company can ask itself is “what are we trying to achieve with the new website?” and “what is the main purpose of the website?
2. The identification of the target audience. In this case, the focus should be determining the individuals targeted in the online market. The online market targets the youth as well as the middle aged who are conversant with computers and online business.

Goal – driven design. The developers of the website should be experienced in coming up with an online avenue that will assist in achieving the vision of the company.

Measurable results in the website.

Allow (Customer Resource Management) CRM integration

CRM has various objectives that include organizing, tracking and also managing all of an organization’s client information, conversations and also activities. Besides, CRM will enable the company to deliver the right message to the customers at the right time. Chong Wholesale should be committed to CRM integration in the company website in order to assist the sales, customer service, and marketing teams to have a better understanding of the customers. CRM integration is all about building the company website and CRM to work in unison seamlessly. Once Chong Wholesale integrates the marketing and website automation software, it will realize more benefits other than retaining customer data on the basis of manual entries. Chong Wholesale will benefit in that it will be better suited to bring in valuable client information directly into their CRM.