Discuss about the Hypothetical Business.
A hypothetical business is a conjecture business. It means an imaginary business and in this context that if all the resources were made available I would venture in. This essay explores this hypothetical business that I would begin after provision of the necessary resources like time, funds and drive in terms of size, organization structure, company, business environment among other related factors. In the identification of this hypothetical business, it is very important to consider a few things like the availability of resources, government policy and market among other things(Rainelli Weiss, 2016). After this consideration, a large-scale rearing of fish is this business that I would pursue as a start-up. The term start-up means a new business to venture. Aquaculture is one of those fields that generally generate a lot of income and hence beginning such a business will likely lead me to success
Features of the organization
Business size is a key feature to consider about any organization. The floor space covered by a particular business determines its capability and can be used as a ranking tool. My firm would involve the large-scale production of fish that covers a really substantial area. In fact, it would be one of the biggest aquariums if not the biggest in the world. In the business context, several firms covering the same field of specialization make an industry (Hsu, 2017).The industry of my business, therefore, would be fish production and selling. This means that I will be among those entrepreneurs who are in the same field of specialization.Again, my business would specialize in the provision of goods as opposed to business.
When choosing the country in which a particular business would operate one has to be very keen. This is because you need to ensure that what you provide exactly rhymes with the market needs. Statistics show that China is the leading country in aquaculture followed byIndonesia, India, Vietnam and other countries(Human, 2017). Having considered these stats, I would, therefore, locate my business in China to serve both the local and international market like Australia, Switzerland and America among other countries. This is because I will not take time in building the foundation for aquaculture. I will find this already done and growing will be easy because I won’t take time convincing buyers that eating fish is good because they already have the experience.
It is important also to provide a good business strategy. This is what actually dictates that future of the business. It dictates whether the business goals will be reached and if yes when they can likely be achieved(Leonidou, 2017). I would ensure that there is a good organizational strategy and cooperation among all the business functions to ensure that my objectives are gotten. The vision, on the other hand of any businesses, gives its prophecy about the future. The vision of my business would be ensuring customer satisfaction and maintaining the first position in aquaculture.
The best organizational structure
Organizational structure in the business context means the arrangement of different functions of the business. Every business should have a well-organized structure. This structure determines the ease of management and the flow of activities. A relevant structure allows the business to enjoy good management and conducive environment for the business operations. The organizational structure is defined by the senior leadership and board(Lugli, 2017).There are several organizational structures and these include the matrix, customer, product, geographical, functional organizational structures among others. These structures are used in different types of business. This is to mean that every business usually has its most suitable structure.
In my business of rearing and the sale of fish, because it covers more than one region and also different countries the most suitable organizational structure would be the geographical organizational structure. Due to the fact that my firm supplies fish to both the local and external markets, an organizational structure that is organized by regions would be the most suitable. In this structure, there are usually officials in every served country who report to a central oversight person(Wood, 2016). This is the most suitable structure because of the fact that my business serves a span of countries.
Internal and external environmental factors and their effect on the business
Environmental factors in a business refer to factors that affect the business from either within or without itself. This comprises of the macro business environment and the macro business environment. Micro business environment refers to all those factors that originate from the business itself while macro business environment means those factors that are from outside the business(Ashton, 2017). To begin with, internal business environment comprises of owners, business culture, resources and business structure. Owners start the business and manage it. They are the key decision makers and this affects the success of the business. An owner would provide the required resources like water, electricity among others.
Again, there are external business factors like culture, competition, demographic factors and legal political, economic among others. Culture is a key determinant of the kind of the business as well as its location. It helps you determine whether the societal norms are opposed to the consumption of your product or not(Gaspar, 2016). Therefore, culture would influence the location of my business. The other is legal political factors. This refers to whether the proposed business is allowed in the country of venture or not. Before starting my aquariums I would determine whether the government allows domestic rearing of fish or not.
The economy also would affect my business either positively or negatively. If my customers are able to buy my products my business will be okay but if they are not in a position to my business will be likely to fail. The population of the regions covered by my business still affect the business. If this population increase rapidly I would be sure to make many sales as opposed to when the population is decreasing. The competition also affects the business (Boone, 2015). It is obvious that there will be competition from the pre-establishedfirms. However, I should be able to devise ways of competingfavorably to achieve my business objectives.
Risks that will confront my business organization
Risks are perils or threats that might occur in the management or any function of the business organization in its day to day running. There are several of these that will compromise my organization. Among them is reputation risk. This is the risk of getting a bad name that might negatively affect my business. This may result from a mistake done in any of the business functions. Compliance risk might confront my business too. There might come a time where the legal requirements for aquaculture may change abruptly making me unable to abide by them(Arvanitis, 2016). Another risk is the strategic risk. This arises where the previously well-laid structure becomes non-functional or out-dated. Lastly, there is also the operational risk. This involves unexpected failures in the daily running of the business due to factors like power or water supply.
Business practices that I would use to enhance my business performance
There are actually a number of business practices that I would use to enhance my business performance. For instance, I would ensure proper business acumen. It is very critical to ensure that the virtues and values of business like respect, integrity among other virtues are adhered to. Another practice is the involvement of all the people. I would ensure that all the people feel part and parcel of the business and that none feels neglected. In this way, the business performance is enhanced. Employee motivation is another practice. It is important to show your employees that you value them(Behari, 2015). Therefore, I would ensure they are motivated in several ways to make them perform better. I would also ensure proper record keeping. This ensures transparency and accountability, especially in the financial sector. This will avoid chaos and bring about easy auditing. Lastly,I would ensure that there is teamwork among all the employees. This means that they work with togetherness and cohesion. This makes the business run smoothly
Functions within the business and how they relate to its performance
Fish keeping like any other business has different functions. These functions cooperate harmoniously to ensure that the business runs smoothly and that its long-term goal is achieved. The most important functions within my business will be production, purchasing, marketing, human resource management, research and development and the accounting and financial functions(Stewart, 2016). To begin with, the production function will be responsible for all activities in the rearing of the fish. The purchasing department serves all functions related to purchases. The marketing department sells the fish and markets the business to all the relevant regions. The human resource is responsible for acquisition and employment of employees as well as looking into their needs. The research and development function investigates matters concerning the market and related roles(Taylor, 2017). Lastly, the financial and accounting function manages cash inflow and outflow. It is responsible for creating all the necessary accounts, balancing the trial balance and giving financial reports. These functions dictate the business performance. If they take their responsibility as required there is the good performance. However, if any function neglects its duty, the business performance will go low.
Conclusively, the art of starting any businesses, whether large or small must be accompanied by a deep research about the market and policy. A number of factors affect a business. These dictate the direction the business will take as far as functionality is concerned. There are also many perils that may confront a business but they should be handled appropriately to ensure that the business progresses well. Business practices should be aimed at acquiring the best performance and all the functions in the business should work responsibly and cooperatively to make the business a success.
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