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.
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.