Business Organizations Are Collaborations †Myassignmenthelp.Com

Question: Discuss About The Business Organizations Are Collaborations? Answer: Introducation Business organisations are collaborations by individual or groups of individuals to earn commercial goals like profits. Some business organisations are formed to gain capital maximisation for the owners while others are formed for offering social services and are non profit organisations. Business start-ups are synthesis of funds, entrepreneurial leadership, ideas and other driving factors leadings towards growth and profits. A fast food business would be a great start-up and it would be named Sydney Fried Chicken (SFC). It would be a medium sized business operating in Sydney but aim to spread to the other parts of Australia and even overseas. The business strategy of SFC would offering quality fast food at affordable prices. The vision of the SFC would be to earn revenue and grow by offering customers high quality fast food. The organisation structure that would be best suited for SFC would be a centralised organisation structure where the decision making power lies in the hands of the owners. This structure is best suited for the start-ups because in the initial phases they lack the human resources competent enough to take business decisions. They have limited resources and have to allocate it efficiently to operate the business so as to gain minimum revenue in that phase. This limited resources and the constant threats from the competitive market necessitate prudent decision making to exploit the market opportunities. Thus, considering the limited human resources to take decisions and the continuous challenges from external and internal environment necessitates centralised organisational structure to take decisions(Alvesson Sveningsson, 2015). The important external environmental factors impacting SFC would political, economic, social, legal and environmental. These factors would have deep impact on the start-up business organisation but are out of its control. However the business organisation has to incorporate these macroeconomic factors while making strategies and business decisions. It also has to consider those impacts which are specific to a particular industry. The government laws and taxation policies are applicable for all business organisations. The fast food business organisations like SFC have to obtain food license and abide by laws which are specific to fast food business. For example, the Sydney Fried Chicken has to follow the Food Safety Standards prevalent in Australia. If SFC wants to expand its business to New Zealand, it has to follow New Zealands Food Act 1981. The businesses similarly make pricing strategies according to the income of their target groups of customers.( Hogan Coote, 2014). It has to find the gap between the expectations and the actual product offerings in the market. SFC would utilise this gap say, lack of healthy and tasty fast food which is affordable, to attract customers. This market opportunities would require it to lower its product prices yet keeping the quality same. The business organisations are required to produce new products and bring about changes in their existing products to meet the ever changing needs of the customers (Mills, 2017). Thus, the macroeconomic factors like government laws and customer consumption patterns have great impact on start-up business organisations. The business organisations come under a variety of internal environmental impacts like employee, organisational culture and competence of the apex management(Zyphur, Zammuto Zhang, 2016). These factors influence the performances of the firms but are under the control of the respective organisations. For example, positive and motivating organisations encourage the employees to be more efficient and achieve their individual targets. This contributes towards high organisational performances and growth in the market. Similarly, a competent apex management having deep knowledge about consumers and markets can take appropriate business decisions to exploit market opportunities. Risks are integral parts of business activities and vary from industry to industry. The fast food businesses confront strategic risks due to changes in the customer preferences of fast food and changes in their food habits. One such strategic risk SFC is liable to encounter is the growth awareness among the people about the ill effects of fast food items like obesity. They may shift towards healthy food items which would the sale of fast food and result in business losses. The fast food business encounter compliance risks if they do not comply to laws made by the governments and the apex bodies. Such breach of law attracts serious consequences like penalty and government actions. Operational risks happen when employees execute strategies wrongly and inefficiently. Such risks cause heavy losses of resources and goodwill(Helms, Mills Mills, 2017). The start-up business organisations like SFC face challenges from the already established fast food businesses in the market. This often re sults in heavy initial losses or even total failure of the entrepreneurial business ventures(OReilly et al., 2014). This risks of failure or financial risks require appropriate decision making in the activities. The failure to comply with law, customer satisfaction or inefficient employees results in poor organisational performance and causes reputational risks. An analysis of the characteristics of the risks some risks like operational and compliance risks can be dealt with by the companies by forming strategies. However, reputational risks and strategic risks are beyond the companies control and are capable of causing serious damage to business even in the long run. The new start business named Sydney Fried Chicken would adopt sustainable business practices to enhance organisational performances. The business should acquire raw materials like bread and organic ingredients from the local farmers. This way the business organisation would encourage economic growth of the local farmers which would help the former to strengthen its goodwill in the society. The business would try to achieve energy sustainability to become more environment friendly. The firm would recycle the wastes from manufacturing of the food products and use it to provide less polluting energy like biogas. This will allow the company to save a large amount of money towards purchase of raw materials. SFC can use this amount saved to invest in more securities to earn more ROI. The company sell its surplus energy to other companies and gain competitive advantage in the market. This proves that sustainability can be adopted as the crux of the business to enhance organisational perform ances(Bschgens, Bausch Balkin, 2013). The most important functions at Sydney Fried Chicken would be acquiring orders from the clients, preparing the food items according to their orders, delivering the food items to the clients and securing feedback from them. The important departments would be human resources, finance, marketing, kitchen, customer care and front office. The finance department would initiate the process by advancing financial resources to the human resource to hire employees. The human resources department in turn provides the other departments like finance and marketing with efficient human resources. The marketing department creates demand for the fast food products by promoting SFC products (Glisson et al., 2016). The front office staff would take orders from the customers who walk in and forward the orders to the kitchen department. The customer care department would accept orders over the telephone and online. Then it would communicate these orders to the kitchen department. The kitchen department w ould prepare the food items based on physical, online and over the telephone orders. Then the front office staffs would present the food items to the customers at their table. The human resource department would also hire delivery staffs to deliver the fast food items to the customers places. Both the delivery and the front office staffs should secure feedbacks from the customers and gain their details. The marketing department should use the details to make its data base which they can use in the future to secure more orders for fast food. The amount of money collected should be taken care of by the finance departments. It must support the kitchen department with funds to acquire raw materials to make fast food from sustainable sources like local farmers. The finance department of SFC should also allocate funds to the market departments to market the fast food products of SFC. It must also look into salary and incentives of the staff members including the delivery boys. These business practices would lead to securing of many orders from the customers at the business premises, online and over the telephone. The kitchen staff would prepare the fast food ite ms according to the orders. The front office and the delivery staff would provide the customers with high quality fast food. These business practices would result in security of bulk orders and providing the customers with superior quality fast food. This would generate high profits and yield SFC a loyal customer base which would expand with time. This expanding loyal customer base would encourage further business expansion of SFC to locations in Australia and abroad (Manojlovich Ketefian, 2016). It can be concluded from that individuals and groups start entrepreneurial ventures to start a business and earn higher profits. The external and internal forces have serious impact on the firms. This require the firms like SFC to form business strategies to sustain and grow in the market. The formation of strategies would require the departments of SFC to collaborate and coordinate with each other. This would result in successful execution of business strategies to take advantage of the market opportunities. References: Alvesson, M., Sveningsson, S. (2015).Changing organizational culture: Cultural change work in progress. Routledge. Bae, T. J., Qian, S., Miao, C., Fiet, J. O. (2014). The relationship between entrepreneurship education and entrepreneurial intentions: A meta?analytic review.Entrepreneurship theory and practice,38(2), 217-254. Bschgens, T., Bausch, A., Balkin, D. B. (2013). 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