Management of Business

Topics: Economics, Strategic management, Fixed cost Pages: 12 (3438 words) Published: November 1, 2010
Table of Contents
Aims and Objectives Methodology


The aims of this internal assessment are as follows:
1. To identify the changes in the firm’s external environment over the period 2004 to 2008because since the firm was affected by changes during this time period.

2. To examine how these changes have impacted on the firm’s objectives.

3. To examine and assess the effectiveness of the firm’s decision making process in light of the changes in its external environment.

In order to collect data to achieve the objectives of this project, both primary and secondary sources were used. Primary data was obtained from the use of a questionnaire, an interview and observations. A questionnaire was handed out to the owner (See Appendix 1 ) which consists of thirteen questions, some being open ended and the rest closed. The interview was conducted with the owner Danny during the period of September 2009. Furthermore, observation was used during the time when the firm’s decision making process was being inspected . The questionnaire allowed the respondent to give short, clear and direct answers to the various questions which assisted in making the formulation of this project easier and less complicated. Also the interview allowed the researcher to get detailed responses explaining aspects of the running of the business not covered in the questionnaire. Moreover, secondary sources in the form of the Internet and textbooks were utilized in order to obtain a lucid understanding of the topic and the foundation and theory behind the research. LIMITATIONS OF THE METHODOLOGY:

1. Time was a constraining factor because time was not always available to conduct interviews and for observation purposes. 2. There were complications for collecting data as it depended on the co operation of the interviewee. 3. The owner of the business was reluctant to allow us to access their financial records.

This portfolio is based on the company, Danny Color Shop which is located at El Socorro Main Road, San Juan. The business operate as a private limited company but has franchise distributorship from session paints to Danny’s color shop .Danny’s color shop has been in operations for approximately twenty years . There are sixteen employees and the firm’s owner (See Appendix 5). Stocks are obtained from local factories and warehouses, some of which are manufactured and imported form foreign countries. Furthermore, Danny’s Color Shop provides services to the general public this type of production can be classified as tertiary.

A firm’s leadership cannot plan for the future unless it takes into account important micro and marco environmental factors. A firm’s ability to compete will be affected by how well the leaders have learnt to(1) identify these environmental factors and (2)assess the extent of the impact of each of them on the corporate strategy. Danny’s Color Shop noted changes in their external environment during the period 2004-2008. These factors included: * Competition

* Legal
* Economic
* Social
* Technological
* Environmental and social responsibility

In the area of San Juan, a considerable number of paint retailers existed but over the five year period from 2004 to 2008, the number of competitors for Danny’s Color Shop shrank to a relatively small number. The existing paint retailers in San Juan include: * J-Fab Limited

* Danny’s Color Shop
* Maustapha Faud Hardware
* Flying Colors Limited
The reason for this small number is because some firms were unable to cope with the effects of the change that took place in the external environment which proved to be a threat or constraint on their business...
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