Business strategic Management

Section A

1. Characteristics of a social enterprise

The social enterprises are efficient to make profitability through enhancing the business activities by having all the government documents. The social enterprises have public or community mission, where the organisations are operating for maximising the values for the social communities as a whole.

2. Advantages and disadvantages of running a franchise

Franchise business loan are easier to get where the entrepreneurs can start an independent business. The franchisee is also efficient to gain high market share and it is one of the effective way to expand the business rapidly over the market internationally. On the other hand, the franchisee has its high charge and it is difficult for the new business firms to expand and for this, the profitability volume becomes deteriorated at the initial stage (Morden, 2016).

3. Ethical dilemma

The organisation in the recent years faces ethical dilemma which is related to lack of implementation of employment rules and legislation as well as poor return open investment. The organisations fail to provide high return on investment to the stakeholders due to low profitability.

4. Business values

Adding values to the business is mandatory for the organisations to sustain in the market. The organisations can add value to the business by creating sustainable development and maximising values for the customers. The organisation can add values for maximising customer’s satisfaction by delivering high quality products and services at effective price.

5. Corporate Social Responsibility

Corporate social responsibility refers to the firm’s activities to fulfil the economic responsibility, philanthropic needs and ethical responsibility to run the business activities sustainably in the market (Ethiraj, Gambardella and Helfat, 2018). The organisations are sometime against CSR and the main reasons are high cost needs to be invested for making the business responsible as well as lack of having efficient stakeholder base. The major reasons for which the organisations try to maintain CSR in order to run the business sustainably, improve brand image, and create values for all the stakeholders. The major ways that the organisations can manage CSR are such as,

• Making the business profitable and providing high return on investment
• Investment for social developmental programs such as education, charity firm
• Making the business ethical through implementing labour rules and employment policies to manage the employees

6. Advantages for running a business as a sole trader

The major advantages of running the business as a sole trader are such as be the own boss, maximise privacy, low start up cost, easy to set up, keep the profitability, having inability liability and easy to change the business activities.

7. Disadvantages of running a business as a limited company

The major disadvantages of running the business as limited company are having high cost for setting up, high cost for registration fees, difficulties to implement the employment and ethical laws as well as the company name are subject to certain restrictions.

8. Sources of finance

The major sources of finance to run the organisations are such as equity, debt, retained earnings, term loans, working capital loans and venture funding. Through these sources, the organisations can invest capital in the business for successful establishment (Rothaermel, 2016).

Section B

1. Mission statement

Mission statement of Mission is “The Very Best for Less”, which is beneficial for the organisation to attract more customers including aging population and young generations. The mission statement is related to deliver high quality products at a lower cost which further helps the organisation to gain high competitive advantage in the international market. The mission is influential and it further encourages the customer for making effective purchase decision. The organisation Morrison can expand their business by strengthening their customer base in the global market.

2. Technological innovation in Morrison

The technological advancement is one of the major success factors in Morrison, where the organisational staff and managers can utilise latest technology for better performance management. The technological innovation further enhances the performance and innovation of Morrison to attract more customers for future. The technologies such as ERP system, Customer relationship management, Employment portals, ICT and other production techniques are the major technological up-gradation for the organisation Morrison to run their business operations efficiently (Lasserre, 2017). The technical innovation and implementation of the automated process are also effective for the organisation to improve organisational excellence.

3. Objectives

The organisation Morrison focuses on cutting price and improving customer’s experience. The objectives that the Morrison should focus are such as giving seasonal offers to the customers, product diversification by producing diverse products and services as well as the brand expansion through international export. These are the major objectives of Morrison through which the organisation can increase its market share. These objectives of the organisation further boost the performance of the firm in expanding their business and strengthening their position in the market.

4. Functional objectives

The functional objectives of the organisation are effective to maximise corporate objective. The functional objectives of Morrison need to be developed which are,

• Developing strong marketing promotional activities through social media marketing
• Human resource management strategic planning for managing the employees in Morrison through employment policies, developing structured salary and encouraging the staff in the organisational workplace
• Operational efficiency improvement through implementing ERP system, developing customer relationship management system, improving technological innovation

Section C

1. Important role of an entrepreneur

The important role of the entrepreneur is to set up the business and establish it successfully. The major roles are to design the business, arrange capital and hire the employees or staff members to run the business activities strategically. Hence, it is the major role of the entrepreneur to set up the business and achieves future success. Carl Somers is also a successful entrepreneur who focuses on setting up the chips shop in order to gain high competitive advantage where Carl Somers is also successful to expand their business by opening the chips shops across the country. The quality chips are provided to the customers and the entrepreneurs are successful to develop the business and retain the customers for long run.

2. Leadership style for the chips shop

The entrepreneur aims at hiring store manager at each chips shop and the managers try to develop proper leadership style. There are two options which are autocratic and demographic leadership style. The autocratic leadership style is characterised by individual’s control and having strong rules. The autocratic leaders are trying to make own decision and rarely accept advice from others (Trigeorgis and Reuer, 2017). On the other hand, demographic leadership is related to participative and shared leadership, where the employees are empowered and the leader always encourages the staff for better performance through providing proper support and direction (David and David, 2016). It is beneficial to adopt demographic leadership style, where the managers can empower the staff and make collaborative decision for the benefits of the business.

3. Challenges and recommendations

The organisation Spicy chips will face challenges such as low market share and lack of customer retention. The entrepreneur needs to increase product diversification to provide different items in the chips shop as well as promote the shop through social media promotional activities. The organisation must manage the human resource through hiring experienced staff that can handle the customers and provide them better services at the store.

Reference List

David, F. and David, F.R., 2016. Strategic management: A competitive advantage approach, concepts and cases. London: Pearson–Prentice Hall.

Ethiraj, S.K., Gambardella, A. and Helfat, C.E., 2018. Theory in strategic management. Strategic Management Journal, 39(6), pp.1529-1529.

Lasserre, P., 2017. Global strategic management. London: Macmillan International Higher Education.

Morden, T., 2016. Principles of strategic management. London: Routledge.

Rothaermel, F.T., 2016. Strategic management: concepts (Vol. 2). London: McGraw-Hill Education.

Trigeorgis, L. and Reuer, J.J., 2017. Real options theory in strategic management. Strategic Management Journal, 38(1), pp.42-63.