ĐỀ TÀI: Individual report final

Contents Individual Report Introduction This report has been design to identify some of the major issues within Cyclermate Ltd. This report of mine consists of a SWOT and PEST analysis on the chosen organisation. The report will include a brief summary on how business used to be operated including production and Human Relation. The report will also include a brief summary on the financial side of the business. The report will include brief summary about the company’s marketing structure. Recommendation and conclusion will further be explained in detail. PEST Analysis A political factor has a powerful impact on income tax, labour law, trade restriction and many more. Company did not recruit enough workers to meet the targets and worker had to work overtime to get the work done and workers are getting paid at normal rate. Using a traditional method may harm workers health and decreased their productivity as well. An economical factor has a powerful impact on business; Cyclermate had bought a bigger warehouse than they actually needed. If they would have bought a warehouse which meets their requirements than money could have been saved and the saved money would have been used in a new or existing project. Cyclermate has employed an untrained worker and did not train them once employed. Having an untrained workforce in organisation will decreased productivity. Social factor has a powerful impact on human behaviour, Cyclermate had many order but they did not have enough workforce to complete these orders. They have to work long hours in order to achieve their goals. According to theories that everyone should have break during day, and should only work certain days. If Cyclermate had enough workforce than it would have been easy for them to achieve their targets. Technological factor has a powerful impact on production side of the business. Cyclermate has decided to use manual method for producing cycles; they did not use any machinery in order to produce their product. It would be much easier to produce cycles with machines than manual. Using a technology would have increased their productivity. Admin work was being done by Frieda schlock without a help from anyone. It would be easy for her to do so if she had enough resources available to her. 2 Parth Pandya SWOT Analysis Strength • Cyclermate’s people are the main strength to their business because they had very good knowledge of making good quality cycles. • They had enough space available to them in order to produce their product. • They were strong market leader. • Dai’s friend Williams was ready to invest his redundancy money into the business which gives them an opportunity to invest that fund in new or existing project. Weakness • Cyclermate has employed untrained workers, also didn’t train them once employed. • People did not have specific job role. • They did not display their full range of product in their cycle shop in Wales. • Purchased a bigger warehouse which was not needed. • Few accidents took place at their warehouse. • Had many complaints from the consumer regarding their product, also been threaten by customer. Opportunity • Cyclermate had opportunity to employ some more trained workforce. • More workforce means opportunity to gain more productivity. • They should introduce some of the modern machinery in order to achieve higher level productivity. • A new computer system which hold the information about the company. • Cyclermate will have opportunity to increase their sale by launching a brand new website. 3 Parth Pandya Threat • Threat of new entrant in biggest threat to any organisation and it applies to Cyclermate as well. • Customer threatens them to sue their company after their product was fail in delivering the good performance. Short term and immediate planning Financial planning It can be seen from financial statement that company has £210,800 worth of non- current assets. Loan request will be refused as company only holds cash fund of £675 into their bank account. Cyclermate will be able to borrow funds from bank on basis of their non-current assets. Either Cyclermate sells their £160,000 worth of freehold land and use that fund into business or request a loan from a bank on the basis of their non-current assets. The funds can easily be raised if the company force their trade debtors to clear their account. A total sum of £200,571 needs to be recovered from company’s trade debtors. The fund will be raised quicker if money from debtors received in full. It will be easy for Cyclermate to apply for loan if they have some sort of fund available to them. It will be Cyclermate’s first priority is to receive their payment from trade debtors. A total sum of £185,790 finished machine needs to be sold at lower prices (goods will not be sold at breakeven, it will be sold higher than break-even); Cyclermate’s direct sale prices are higher than shop sale price. In order to generate healthy revenue, Cyclermate needs to reduce their direct sale price. By reducing the direct sale prices will increase their sale and it will be easy for them to generate healthy revenue. Production planning Company should only buy stock when they needed. Buying stock earlier will harm company’s financial positions, because raw material does not hold their value and it has got more chances of losing its market value. A total sum of £102,300 raw material kept in the business which has no value at the moment but once the raw material will be sold at its competitive price than more revenue will be generated. There is a need of new packaging department which will only focus on packing the cycles. Each department will be separated, and will have dedicated staff to that department. It will make production much easier and higher productivity will be achieved. Production of cycles will only start once orders are coming through, it will 4 Parth Pandya save storage money and a space. Most popular product s will be made in advance but some of the premium product will only be made once ordered. Modern technology should be applied in order to produce cycles. The production of cycles will be much faster and efficient by applying modern technology such as using painting machines to paint the cycles. Modern technology will help in reducing human labour. For example 8 frames are being made a day, but if the modern technology applied into business than more than 20 frames will be made every day. The cost per unit will decreased once the cycles will be manufactured with the help of modern technology. If its costs less to manufacture than selling price will also decreased. More units will be sold at lower prices than higher. By selling at lower prices will generate healthy revenue. Human Relation Planning Cyclermate will recruit few new workers who will be fully trained to the job. Current workers will be trained again by their colleague. It will help workforce to do their job properly once they have been trained. Incentive programs will be introduced into the business. The incentives will be given once the job is finished within a given time. Discounts will be available on the purchases made by the workers. This is to motivate people and it will prevent workers to leave. This is the best of way getting work done from every individual. Production will automatically increase if the company has motivated workforce. People will be given specific task every day, people will have particular job role within an organisation. Responsibilities will be divided equally within the workforce. Every month an individual review will be conducted by the manager and issues and concern will be discussed. This will help every individual to raise their issues and concern in front of management. Performance and attitude towards work will be judged at every review meeting. Extra money will be paid if the workers have worked over time. Cyclermate will provide every possible resource that is needed to complete the given task. An individual will be panelised if they fail to achieve their targets. Marketing Planning Marketing is a very useful tool and can be very vital for Cyclermate. Cyclermate will be published more TV advertisement for letting people to know about their product, this will happen when funds are available. Cyclermate will be using each and every marketing source available to them; this will help their customers to get to know about Cyclermate products. Cyclermate will use newspapers, internet and radio to promote their product across the world. Company is planning to launch their website which will have all the detail about them and their product. Cyclermate will also be trading on line, and it will have all the detail about their product and prices. All the 5 Parth Pandya models will be available to see online. However this will have powerful impact on their sale. It seems like Cyclermate had only targeted middle class, upper middle class or higher class people. Cyclermate prices are much higher than its competitors, now prices will be decreased if it cost less to manufacture. Cyclermate will have better opportunity to sell their product at lower prices. Cyclermate will be adding some of the new model which will be available for everyone to buy; hopefully it will be very cost effective. If all goes well for Cyclermate, than Cyclermate will be planning to open a shop where they have more chance of selling their product. There are many competitors out in market, but Cyclermate is planning to be very competitive with its price. Cyclermate will have one marketing team; this team will keep track of their competitor’s movements and will be keeping record of it. Investigation Investigation and surveys are very vital for the organisation it will tell you how good your business is doing. It will give both positive and negative responses regarding business or a service. Some company will hire external body to do the surveys and investigation or some company does it by their self. There number of investigation should be conducted in order to achieve longer term profitability. Health and safety investigation should be conducted very often. Quality assurance investigation also be conducted quite often, this will help more in longer term profitability. Marketing investigation would be optional to conduct but if it is done than it will be better for company’s future growth, this will show where the progress being made and where the company is stands. Recommendation • Selling their freehold land which will generate healthy revenue and that revenue will be invested in other part of the business. • Applying the modern machinery in order to achieve higher level of productivity. • Applying a computer system which will hold company’s important data and information which management has access to use it. • Launching company’s website with full range of product and information about the product. • Reduced their direct sale prices in order to sell the current stock. 6 Parth Pandya • Reduce trade debtors • Employ trained and young people who are fit for the job. Conclusion Overall I think that Cyclermate will have a better future if they operate their business in slightly different ways. Cyclermate products were famous for its quality and price, if the company still provide what the consumer wants than it would be no harm to the company. But there few changes needs to be changed and once the new rules and regulation apply into the business than it would be a great opportunity for Cyclermate to operate their services. 7 Parth Pandya