Recommendation Paper to Amanda

Recommendation Paper to Amanda

Preamble

Dear Amanda, a number of ventures or small business faces the trouble or dilemmas of mismanagement which ultimately leads them to a situation of failure. Mismanagement occurs due to several reasons and assumptions that business starters incorporate in establishing the vision, mission and purpose of the business. Other factors that may lead to the failure of a new business includes ineffectiveness of human resource management, lack of employee motivation , lack of outlining the working standards, avoiding the concerns related to negative information, and ineffective planning in developing consolidated working environment.

Apart from this failure of new business usually occurs because honors do not pay proper attention to the working of business operation, they started relying entirely on their staff and allow them to take decision regarding crucial elements of the business. Lower staff makes decisions on the basis of their information and knowledge that most of the time affects the overall performance of the business. Therefore, it is the responsibility of business honor to pay substantial importance to all organization and management functions to run a successful business (Groves, P. (2002)).

Dear Amanda, when starting a new business, some important aspects should be analyzed by entrepreneurs in order to make effective and time decisions. Top of all it is important to ask a question, what is a “business”? Businesses are all activities that aim to achieve goals within the context of the economy. The initial basis for opening a business is concentrated in marketing opportunities or market (Kaiser, E. (2011)). A marketing opportunity is an area of buyer need in which a company can operate profitably. Also, a business is considered ideal when opportunity presents high incidence and low incidence of threats. Logically, the reverse situation presents a condition of high risk business. Thus, the initial step in opening a business is to find the effective human resource and then managing or organizing them accordingly. There is also the possibility of opening a business in order to occupy the space of a competitor.

Recommendations with Respect to Highlighted Problems

Concisely there are seven main problems that underlying business is facing, theses seven issues are listed below with respect to their recommendations.

Fails To Develop Or Share A Mission Statement

Mission plays the role of a roadmap for a business, and this can be seen from the case that honor herself developed the entire mission and vision of the business, hence creating the chances of biasness and error in it. On the other hand, mission was not properly communicated with the staff. So, to reduce the negative repercussion of this problem a new mission and vision of the business should be developed, and it is highly recommended that Amanda take input or feedback from employees.

Fails To Determine The Best Way To Organize Resources, Including Personnel

Due to low level of experience Amanda does not pay proper emphasis on organization of human resource and other resources. This problem of business can be solved with two to ...