Another strategy for start-ups to follow during recessionary environment is a “Lean start-up” strategy (Singh et al., 2009). Many start-ups do not manage to survive because they spend a lot of money and time trying to produce products that customers might not need or like and therefore will mathematically drive the company out of business. This is what professor of HBS, Eisenman (Nobel, 2012). Ries, 2011, said; “startup success is not a consequence of good genes or being in the right place at the right time. Startup success can be engineered by following the right process, which means it can be learned, which means it can be taught”. The methodology on start-up businesses is all about avoiding waste in terms of money and time. A good example is through the Toyota Production System (Dennis 2002).
Six sigma (quality control standard), was developed by Motorola in 1986. It is a set of techniques and tools for process improvement and it is a strategy that entrepreneurs can use, either in recession or not, in order to have a successful business. It is a methodology for eliminating defects in any process (Linderman, 2003). In the business world, organizations have to compete between each other and by achieving lower rates of defects it is a way to achieve a competitive advantage. Six sigma, helps to increase customer satisfaction and build loyalties. By achieving customer satisfaction, it ensures a flow of cash even when there is a cyclical downturn in industry (Kwak and Anbari, 2006).
Another important factor that is essential for a company to succeed is to control inventory efficiency in order to avoid any extra costs, such as holding costs and to also decrease the amount of defects in goods. Companies can control the inventory by...
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... on why firms choose to respond in this way, or if price maintenance is recommended through efficient measures.
For the start ups, more recent studies claim that a recession is normally an opportunity and not a threat, if handled correctly (Williamson and Zeng, 2009). The recent world-wide recession is characterized by its nature globally and the risks that companies in rising markets are taking are becoming more powerful than expected. However, research shows that businesses are not doing very well. Williamson and Zeng (2009) stated that a key strategy that businesses might adopt to avoid this, is to focus on developing what rising markets know how to do well by offering value for money. They also suggest that companies should invest in research that is aimed at service and product innovation to offer similar products or services, but at lower expense and costs.
There are many people that benefit from Lean Six Sigma which include mainly customers, suppliers, employees, and also stockholders. Lean Six Sigma is a way for businesses to improve, to reduce waste and to become more successful. In the future, more and more organizations will adopt or practice some of the Lean, Six Sigma, or both in order to stay competitive in today’s market. In some cases, blending both Lean and Six Sigma can be costly and difficult; however the end result can create an organization that focuses on quality, accuracy, and speed to meet the goal which is profitability.
Sitnikov, C. (2012). Six sigma as a strategic tool for companies. Young Economists Journal / Revista Tinerilor Economisti, 94-102.
The Six Sigma approach was designed by Motorola in 1986. The primary objective of the concept was to develop a tool for tallying the process defects and, as the result, improving business operations. The foundations of the approach are the customer needs, statistical analysis of data and facts, and timely execution. The method promises numerous benefits such as increasing performance and profitability of an organization, improving product or service quality and employee morale, decreasing costs, the growth of market share, the higher level of satisfying customer needs, etc. (Meredith & Shafer, 2013). The primary advantage
New businesses will take longer to thrive with the United States falling economy. The faltering job market and the deepening slump in housing threaten to hurt consumer spending. Consumers are becoming more conscious of their spending and therefore using cash to pay for smaller necessary purchases. The cost of entertainment and other presumed luxuries may be pushed to the background by most families, when having to choose whether to pay for a bill or treat the family out. Thriving businesses will understand the need to provide a service or product at affordable prices.
An entrepreneur starts a new venture not only to succeed but ultimately to have the venture grow. Before an entrepreneur begins a strategy of growth and building wealth for the venture, several key fundamental puzzle pieces must be in place. This paper will explore five of these fundamentals and describe the importance of each one. It will go on to compare and contrast three growth strategies available to a business.
There are many responses that a company can have to troubling economic times. They can first weather the storm and survive. They can back up and get driven out of business, or they can grow. The economy has been in recession for many months. It is the job of our company to identify things that can help businesses to make it through these times and hopefully prosper.
Sometimes people invest in businesses, but they are unable to thrive through financial crisis when they arise. The book has used several examples to helps business managers to see through their institutions during financial depression periods. When business management uses various innovative ideas, it can be able to defeat market inflations that affect the business. Investing in many innovative ideas helps business to ship in profit from different sources. The sources of income mutually benefit from each other. Therefore, should one source fail it can be supported by others. The book has given various concepts in business management. These concepts help managers in collective decision making that propel business towards goals achievement. The concepts in the book also help managers and entrepreneurs in managing the workforce in an organization. The book has also given the concepts that help business stakeholders in investing in innovative ideas that can be well integrated with modern business. It has also given case studies that help the readers to have a deeper understanding of the management
Inventory management is a method through which a business handles tangible resources and materials to ensure availability of resources for use. It is a collection of interdisciplinary processes including a full circle of the demand forecasting, supply chain management, inventory control and reverse logistics. Inventory management is the optimization of inventories of manufactured goods, work in progress, and raw materials. According to Doucette (2001) inventory management can be challenging at times; however, the need for effective inventory management is largely seen more as a necessity than a mere trend when customer satisfaction and service have become a prime reason for a business to stand apart from its competition. For example, Wal-Mart’s inventory management is one of the biggest contributors to the success of the company; effective and efficient inventory management is of critical importance.
Inventory management can enhance the efficiency in operation of the supermarket. Supermarket must ensure that the correct levels of inventory are being maintained throughout the store, and that merchandise is purchased at the best price point as possible. Holding too much inventory on hand generate costs like carrying costs. Whereas having too little inventory on hand makes customers dissatisfied and it leads to declining
Entrepreneurship is defined as being able to develop a business from ground to up, creating new ideas that will be part of a profitable business (Brooks, 2015). It is also the willingness or the capacity of an individual to develop, manage or organize a business along with its risk that the business would fail in order to produce profit. An entrepreneurial spirit of a business man can be described as the ability to take risk and being an innovative fellow. (Business Dictionary, 2015). Having a spark of creativity and a passion to change the world in a person’s view point without considering how hard it may become. Being able tackle new stuff without any hesitation due to the risk in failing. Sees the risk
Starting and building a prosperous business is an ambition of many entrepreneurial minds and has for
"Entrepreneurs who start and build new businesses are more celebrated than studied. They embody, in the popular imagination and in the eyes of some scholars, the virtues of "boldness, ingenuity, leadership, persistence and determination." Policymakers see them as a crucial source of employment and productivity growth. Yet our systematic knowledge of how entrepreneurs start and grow their businesses is limited. The activity does not occupy a prominent place in the study of business and economics.
If people are the same, can the creation of new inventions come into existence? How can society and individuals improve if there are no differences? In fact, innovation comes from the mind, but the uniqueness of people has led to these creations. Ever since the first incandescent lightbulb to the present age of rockets and computers, these inventions have helped society progress forward into a new era of life. However, how can people comprehend that a single person has created a complex innovation? To explain, a quote describing success through innovations while facing several obstacles is “‘the confrontation between the stream and the rock, [where] the stream always wins, not through strength but by perseverance’” (“A quote by H. Jackson Brown
Entrepreneurship, innovation and economic development are the key factors of a successful business. These concepts are inter-linked and this essay will further explore and elaborate the relationship they have with each other. Additionally, sustainability also plays a role in this relationship and contributes greatly to a business’ success and reputation.
Inventory management involves planning, coordinating, and controlling the acquisition, storage, handling, movement, distribution, and possible sale of raw materials, component parts and subassemblies, supplies and tools, replacement parts, and other assets that are needed to meet customer wants and needs (Collier & Evans, 2009). In order for business and supply chains to run smoothly, they must meet all the listed requirements for effective inventory management. Thus, inventory management must be managed wisely in order to be a successful an...