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Effective Management Systems for Businesses

The document discusses the high failure rates of small businesses, highlighting that many owners engage in ineffective practices rather than establishing a solid management system. It emphasizes the importance of a structured management system over hiring highly skilled managers, suggesting that a well-designed system can enhance business effectiveness and customer retention. Additionally, it touches on the significance of human resource management strategies for recruiting and maintaining talent within an organization.

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4 views2 pages

Effective Management Systems for Businesses

The document discusses the high failure rates of small businesses, highlighting that many owners engage in ineffective practices rather than establishing a solid management system. It emphasizes the importance of a structured management system over hiring highly skilled managers, suggesting that a well-designed system can enhance business effectiveness and customer retention. Additionally, it touches on the significance of human resource management strategies for recruiting and maintaining talent within an organization.

Uploaded by

keo chanthla
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

LIFE UNIVERSITY Department of Business

2. Literature Review

Most people belief that running a businesses simply do not work. The problem is not
that the owners of small businesses don’t work, the problem is that they’re doing the
wrong work. As a result, most of their businesses end up in chaos unmanageable,
unpredictable, and unrewarding.
A study case in United state showed every year, over a million people in this country
start a business of some sort. Statistics tell us that that by the end of the first year at least
40 percent of them will be out of business. Within five years, more than 80 percent of
them will have failed. And the rest of the bad news is, if you own a small business that has
managed to survive for five years or more, don’t breath a sigh of relief. Because more
than 80 percent of the small businesses that survive the first five years fail in the second
five.
Why is this? A business can be compared to a car or an airplane, which are comprised
of numerous mechanical parts. Each part of the system is crucial, and the absence of one
might lead to issues. Similar to this, a firm has its own operating system, which the
majority of business owners neither value nor assign any significance to.

2.1. Management of the company and other key people

You may think that the successful implementation of a management strategy is


dependent on finding amazingly competent managers-people with finely honed “people
skills’, with degree from management schools, with highly sophisticated techniques for
dealing with and developing their people.
It isn’t’.
You don’t need such people
Nor can you afford them.
In fact, they will be the bane of your existence.
What you need, instead, is a management system.
The System will become your management strategy, the means through which your
Franchise Prototype produces the results you want.
The system will become your solution to the problems that beset you because of the
unpredictability of your people.
The system will transform your people problems into an opportunity by orchestrating
the process by which management decisions are made while eliminating the need for such
decisions wherever and whenever possible.
What is a management system?

It is a system designed into your prototype to produce a marketing result. And the
more automatic that system is, the more effective your Franchise Prototype will be.
Management Development-the process through which you create your management
system, and teach you up and coming managers to use it isn’t a management tool as many
people believe. It’s a marketing tool.
Its purpose is not just to create an efficient prototype but an effective one. And an
effective Prototype is a business that finds and keeps customers-profitably-better than any
other.

Our approach begins with a marketer because the majority of project owners lack
design expertise. Therefore, we don't require a specialist to complete this task in this method.
People with strong communication abilities are what we need. He or she must also adhere to
our script when speaking. After establishing a pleasant conversation about their likes,
lifestyle, and family, we must first help them feel at ease before gradually assuming more
control and learning what their true desires are. We will forward their purpose and preference

Major: Business Management Page : 1


LIFE UNIVERSITY Department of Business
information to our architect team so that it can be further developed into the building design.
Once the architect team has completed the draft design, we will present the outcome to the
marketer so they may re-convene with the project owner and assess their level of approval.
Following proposal acceptance by the project owner, the architect's plan will be forwarded to
the structural design team. to plan and calculate the cost of building.

2.2. Human Resource Management


Examine strategies for recruiting, training, and retaining talent within your organization.
Discuss how you plan to create a positive work culture and promote employee engagement.

Page : 2 Major: Business Management

Common questions

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A Franchise Prototype is central to business effectiveness as it serves as a model for creating a systematic management approach that yields consistent and profitable marketing results. The prototype ensures that the business finds and retains customers better than competitors by integrating management and marketing strategies into its operation. This standardization helps streamline processes and make effective use of resources, enhancing overall business functionality .

The document suggests dealing with the unpredictability of human resources by developing a management system that minimizes the need for individual managerial decision-making and instead relies on a structured system to manage operations. By making the management system as automatic and effective as possible, businesses can better handle variations in human resources, turning potential unpredictability into an advantage through systematic training and consistent application .

The document proposes a process where the marketer initially gathers customer feedback by establishing a comfortable conversation to understand their preferences and desires. This information is then passed to the architect team to create a draft design, which is reviewed and refined with the project owner for approval. Upon acceptance, the project is forwarded to the structural design team for cost planning, ensuring customer preferences are integrated at every stage .

Management systems transform people problems into opportunities by orchestrating management processes to eliminate unpredictable decision-making. These systems serve as a marketing tool that ensures efficiency and effectiveness, thereby finding and retaining customers profitably. By automating routine decisions and reducing dependency on individual managers, businesses can operate more predictably and profitably .

The document draws an analogy between a business and a mechanical system like a car or airplane, emphasizing that each component is crucial to overall functionality. Just as a missing part in a mechanical system leads to operational issues, neglecting any aspect of a business's management system can lead to failure. This implies that a comprehensive, well-integrated management system is necessary for ensuring that all business components function cohesively, supporting stability and success .

Communication skills are crucial in the described management approach because they enable marketers to engage effectively with clients, understanding their preferences and desires, which are essential for developing tailored business solutions. These skills are prioritized over design expertise because most project owners lack such expertise, and effective communication allows for better rapport-building and needs assessment, which are vital for business success .

The development of a management system is considered a marketing tool because its primary purpose is to create a business model that efficiently attracts and retains customers profitably. While it organizes and streamlines internal processes, it ultimately serves to enhance the business’s marketability and customer service, distinguishing itself as a competitive force that prioritizes customer satisfaction and loyalty over mere operational efficiency .

Many small businesses fail within the first ten years because business owners often do the wrong kind of work, leading to chaotic and unpredictable operations. The recommended solution is implementing a robust management system rather than relying solely on competent managers. This system becomes the management strategy, transforming unpredictable people problems into opportunities by streamlining decision-making and ensuring consistent results .

Marketers play a crucial role in the architectural design phase by communicating with clients to gather their preferences and desires. They help facilitate the transformation of this feedback into a conceptual design by collaborating with the architect team. After the draft design is created, marketers reconvene with project owners to review and refine the plans, ensuring that customer needs are integrated into the final design proposal before proceeding to cost planning .

The underlying reason for focusing on a marketing-oriented management system is to create a business that efficiently finds and retains customers profitably. By integrating marketing principles into management, businesses can align their operations to better meet customer needs, leading to increased customer satisfaction and business profitability. The system also reduces reliance on individual managerial talent, which can be variable and unpredictable, hence ensuring more stable operations .

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