Business Administration


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Business administration is the process of managing the business operations of an organisation by organizing people, utilizing resources and implementing various decisions for achieving the organizational goals. The administration process involves six functions viz. Planning, organizing, staffing, directing, budgeting and controlling. It is a universal process and is followed in every organization irrespective of its industry, size of operation, country of origin etc. This report covers problem-solving techniques, the role of shareholders in problem-solving, the decision-making process, the importance of feedback, the scope and scale of problems, courses of action to resolve, organizational and legal constraints in problem-solving, recommendations to solve business problems and approaches to problem-solving.

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Main Body

1.1 Problem-Solving Techniques

Problem-solving techniques are used to solve organizational problems. The problems need to be addressed and solved as quickly as possible so that business activities can be carried out effectively.

There are many problem-solving techniques. Some of the techniques are as follows:

  • Risk analysis: It is a method of problem-solving in which the potential risks are analysed. This tool is used to manage the potential risks to reduce the impact on business activities. This will include vast information about the risks.
  • Cause and Effect Analysis: Under this technique, the causes and effects of the problem are identified to form a connection between the reasons for which the problem occurred and the effects of the problem (Raimi and Fadipe, 2013).

1.2 Organizational and Legal Constraints

  • Size: The size of the organization could be a constraint in problem-solving because large organisations will require more time to solve the problems.
  • Interdependence: The organisational departments are interdependent on each other. The problem in one department will cause difficulties in the activities of another department.

Legal constraints

  • Industry specified regulation: The requirements of industry-specified laws such as licenses, labour laws, employment laws etc. could be a hurdle in solving the problems. The company has to solve the problems by considering legal requirements.
  • Policy and procedure: The members of the organization have to act according to the policies and procedures of the company. Therefore, the problem will be solved according to the policies which could be a long process.

1.3 Role of stakeholders in problem-solving

The stakeholders influence the company to a great extent. The role of various stakeholders such as employees, investors, customers, government, suppliers etc. in problem-solving is major and helps the company to solve the problem quickly. Stakeholders can provide their views on the subject matter. They can give suggestions in solving financial, regulatory and other matters. Also, the engagement of stakeholders in the problem-solving process can help the company to identify the issues which are not risky at present but may harm the company after some years such problems may be non-financial problems. The stakeholders can help in establishing an effective problem-solving plan and process so that the company can be saved from losses (Chang and Huang, 2013).

1.4 Steps in the business decision-making process

  1. Identify the decision: The first step is to analyse and address the problem. After this, the nature of the decision will be defined.
  2. Gather information relevant: The information for forming a decision will be gathered. The information must be gathered from authentic sources, the sources could be both external and internal.
  3. Identify alternatives: A decision must have alternatives to it. Imagination or new/old information can be used to form alternatives. Alternatives increase the chances of making an appropriate decision.
  4. Selecting the best alternatives: The best alternatives are chosen for the organization. A combination of alternatives can be chosen in case of not getting an appropriate alternative.
  5. Take action: In this step, a plan will be prepared with support from employees and external parties. The resources to be used for implementation will be identified. The plan should be as such which can be executed properly (Forsgren and Johanson, 2014).
  6. Review the decision and its outcomes: In this process, the results will be evaluated by the criteria and nature set in the first step. If there is any variance, then it will be corrected by taking further steps in the process or the steps can be repeated till it achieves the desired result.

1.5 Recommendations and implementation of decisions to solve business problems

Problem 1: Workplace Conflict

There may be some situations where the employer and employee may face conflict in the decisions taken by them. Workplace conflict can not be ignored completely but can be reduced to an extent.

A manager may resolve workplace conflict by listening to the parties involved in the conflict in order to arrive at a decision (Gacula Jr, 2013).

Problem 2: Shortage of Resources

An organization may have a shortage of resources due to various reasons. This problem can cause serious losses to the business.

The manager may keep track of the receipt and used resources as well as the account details to prevent the problem of a shortage of resources. By implementing the above recommendation, the company may increase its profits, the operations will be carried out smoothly without any hindrance also there will be a healthy relationship between the employer and employee which will provide a peaceful environment at the workplace.

2.1 Continuous improvement with its purpose and benefits

Continuous improvement: It can be defined as the process of modifying the features of services and products so that a large number of customers can be attracted to the company. It is very beneficial for an organisation as it can help to increase profits and sales by satisfying the needs of customers by making improvements in products or services that are offered by a business entity (Lee and Kim, 2014).

Purpose of Continuous Improvement:

  1. The main purpose of continuous improvement is to offer such products to customers that are modified according to their preferences.
  2. Another purpose of continuous improvement is to maximize profits.

Benefits of Continuous Improvement:

  • It helps to offer such products and services to the customers that are modified according to their tastes and needs.
  • Continuous improvement guides organisations to make appropriate changes in their products in order to attract a large number of customers.

2.2 Models or Techniques of Continuous Improvement

PDCA is a continuous improvement model which can be used by an organisation in order to modify products. The model is explained below:





Plan: The organisation need to determine opportunities and then plan for improvement.

Do: In the next step the managers of the company need to implement the plan for the change in a small area.

Check: In this stage, organisations need to assess the result of the improvement.

Act: If the results are positive then the company can implement them on a large scale.

· The main feature of PDCA is that it can help to analyse the problem.

· It helps to develop new experiments so that a large number of customers can be gathered.

· PDCA is mainly used to successfully implement the modification.

When an organisation is willing to implement change on a large level then it cannot guide them as it provides guidance to launch the change at a small scale for the first time (Zincirkiran and Tiftik, 2014).

2.3 Scope and Scale of a Problem

There are two main problems that an organisation can face. These problems are a lack of resources and conflicts among employees and top management.

Scope: The problems will affect the internal as well as external environment of the company. Conflicts will reduce productivity of employees and lack of resources will affect the activities that are performed by an organisation.

Scale: Both problems will create issues for the managers and employees and they will be affected due to the issues.

It is very important for all business entities to respond effectively to all the problems so that their possibilities can be reduced.

2.4 Importance of Feedback from Customers and Other Stakeholders in Continuous Improvement

It is vital for a company to collect feedback from all the stakeholders so that changes can be made in products and services according to their requirements. Customer feed it very important as they can guide to make changes in products and services so that organisations can attain higher profits. Investors' feedback is essential to analyse whether an organisation is performing well or not. Response of all the stakeholders on the presentation of the company is very important as it can guide to making of plans and strategies so that all the errors and issues can be resolved by the managers (Abosede and Onakoya, 2013).

3.1 Nature, likely cause and implication of the problem

The organisations can face two problems that may be related to resources and conflicts. Both of them can affect the overall performance of an organisation.

Nature: The first problem is related to the resources that may become short and affect the operations of the organisation. Another problem is related to the administration department and this will affect the productivity of employees as they will not work productively due to the conflicts.

Likely cause: These problems may take place due to the lack of communication and improper management.

Implications: Both problems will result negatively on the organisation and affect overall profitability and productivity.

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3.2 Scope and scale of the problem

Scope: Both problems will have a negative impact on the organisation's performance as well as productivity because the operational activities cannot be completed with insufficient resources. If employees have conflicts with the managers then this will also create issues for the company as it is related to internal management and they will not put their full efforts to complete the tasks (Kobe, 2012).

Scale: If an organisation is facing problems like insufficient resources and conflicts among employees and managers then it will affect all levels of the organisation. Top-level managers, board members and employees will be affected due to the problems.

3.3 Possible course of action that can be taken in response to a problem

The managers of a company should take appropriate action to resolve the problems so that it can help to effectively operate the business. The organisation can use techniques to overcome all the issues in which managers can communicate with all the employees personally so that they can analyse all their problems. It is very important for business entities to take immediate action at the time when problems have been identified. If the managers of a company are to able to take direct actions then it can result in more problems.

3.4 Evidence to justify the approach to Problem-Solving

All organisations face different types of problems that are related to employees and resources and it is very important for the companies to use appropriate approaches so that all of them can be resolved appropriately. Tesco has faced various problems due to a lack of effective communication with employees. They have taken the organisation to court and Tesco has faced problems. An effective approach of direct interaction with staff members has been used by the managers in order to resolve all the problems. The organisation have overcome the issues appropriately with the help of an effective approach to problem-solving. If an organisation is also facing any issues then it can use the same method which has been used by Tesco to resolve the problems (Neumann and Zimmermann, 2012).

3.5 A plan and success criteria that are appropriate to the nature and scale of a problem

If a company is willing to resolve all the problems then it is very important to formulate an appropriate plan so that all of them can be resolved.

Identification of Problem: First of all the managers of an organisation have to identify the problem. It will help to determine the causes of the issues.

Formulation of Strategies: Appropriate strategies need to be formulated by the managers so that all of them can be resolved.

Implementation of Strategies: In this step, the formulated strategies need to be implemented by the managers as it can help to overcome all of them.

Measuring Success: When the strategies are implemented the managers have to measure the success of the plan and also analyse whether all the problems have been resolved or not.

3.6 Obtain Approval to Implement a Solution to a Problem

While managers are planning to implement a solution it is very important for them to get approval form the top management of the organisation. The managers have to communicate with them about the solutions and then get their approval so that all the problems can be dealt with appropriately. If managers are not getting approval from the top management then it will affect the efficiency of the solution because higher authority has more experience and they can find errors in the solution.

3.7 Action to Resolve or Mitigate a Problem

Managers of an organisation are responsible for taking action so that all the business problems can be resolved. If managers have taken action then it will also reduce the possibility of the problem. The main action which is required to be taken is identifying the cause and then finding the appropriate solution for the same. Effective solutions can reduce the possibility of issues and if managers are interacting appropriately with employees then it will also help to mitigate the problems that can take place and affect the overall performance of a company. Managers of organisations can try to interact with employees to determine their problems so that conflicts can be resolved. To deal with the issue of insufficient resources can be dealt with the help of appropriate planning in advance.

3.8 Evaluation of the degree of success and scale of implications of solved problems

If managers of a company are able to use appropriate problem-solving approaches then it can help to successfully resolve the problem. The issues that can take place and negatively affect organisational performance and productivity. A specific plan is being implemented by a company which will result properly and also help to resolve all the issues appropriately.

4.1 Identify the nature, scope and scale of possible contributions to continuous improvement activities

Continuous improvement activities can be creative and persistent and it has tremendous scope for the growth of the organisation. It can help to maximize the efficiency and productivity of the business. An organisation can learn form past activities and events and learn from it. It is the need of organisation because the environment is dynamic and it is changing very frequently so continuous learning and improvement is the need of today's business environment. It helps the company to achieve its targets on time and leads towards success. If a company is involved in the manufacturing process of shirts then it can use just in just-in-time method so that its manufacturing process can be improved and effective (Ismail, 2013).

4. 2 Measure changes achieved against baseline data

Baseline data is associated with the required information and data which is needed by an organisation to make effective decisions for the benefit of the company. It involves sales data, purchase data etc. It is essential to know the past year's sales and purchase information so that the organisation can plan for future activities and make necessary decisions. For example, if a company has to deliver food items to its consumers and prepare the food items daily as per the needs of consumers if suddenly some consumers cancel the order then the baseline changes and it influences the performance of the company. As a result, it has to prepare food as per the order of consumers.

4. 3 Calculate performance measures relating to cost, quality and data

The performance of an organisation can be affected if the cost has changed because if a product cost increases then it affects the profits of the organisation because consumers are price sensitive and they do not want to buy the product at a higher price. If an organisation want to provide quality products then it has to increase the cost because quality products are not sold by the organisation at the same price which it was selling previously at the same product at a lower price. The delivery system can be affected when demand and supply have changed. If demand is more than company have to improve its delivery system and deliver fast. So it can be said that cost, quality and delivery can influence performance.

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4 .4 Justify the case for adopting improvements and identify with evidence

It is necessary for the organisation to make improvements so that efficiency can be enhanced wjich leads to maximize productivity. For example, if an organisation is dealing in the textile business and it is using old machines to manufacture the t-shirts and through it productivity and efficiency do not get as per the desire of the organisation. If it uses a new latest machine to manufacture the t-shirts than its efficiency and productivity can be maximised. As a result, the company can generate more revenue through it. So improvements are essential as per the environment and need.

4. 5 Develop standard operating procedures and resource plans that are capable of implementing agreed-changed

It is essential for the organisation to implement effective procedures to accomplish work. For example, if the organisation is not able to produce quality products sales are going to decrease. To solve this problem it can implement effective steps which are as follows: To check the quality of raw material so that output can be better. A task can be segregated according to the skills of persons who control the performance of the employees and continuously monitor the activities of workers so that the organisation is able to produce quality products (Hakansson, 2015).


From the above project report, it has been concluded that if an organisation is facing problems while operating business then it is very important to take immediate actions so that it cannot harm the company. If managers of the company are not able to deal with the problems than it can result negatively for the company and will also affect the overall performance of the organisation. The managers have to find solutions and then get approval from the top managers so that they can analyse the appropriateness of the solutions.


Books and Journals:

  • Hakansson, H., 2015. Industrial Technological Development (Routledge Revivals): A Network Approach. Routledge.
  • Ismail, S., 2013. Critical success factors of public-private partnership (PPP) implementation in Malaysia. Asia-Pacific Journal of Business Administration. 5(1). pp.6-19.
  • Neumann, K., Schwindt, C. and Zimmermann, J., 2012. Project scheduling with time windows and scarce resources: temporal and resource-constrained project scheduling with regular and nonregular objective functions. Springer Science & Business Media.
  • Kobe, K., 2012. Small business GDP: update 2002-2010. Report for the Small Business Administration.
  • Zincirkiran, M. and Tiftik, H., 2014. Innovation or Technological Madness? A Research on the Students of Business Administration for Their Preferences of Innovation and Technology. International Journal of Academic Research in Business and Social Sciences. 4(2). pp.320-336.
  • Abosede, A. J. and Onakoya, A. B., 2013. Intellectual entrepreneurship: Theories, purpose and challenges. International Journal of Business Administration. 4(5). p.30.
  • Lee, J. L., James, J. D. and Kim, Y. K., 2014. A reconceptualization of brand image. International Journal of Business Administration. 5(4). p.1.
  • Gacula Jr, M. C., 2013. Statistical methods in food and consumer research. Elsevier.
  • Kinyanjui, S., 2014. The impact of terrorism on foreign direct investment in Kenya. International Journal of Business Administration. 5(3). p.148.
  • Forsgren, M. and Johanson, J., 2014.  Managing networks in international business. Routledge.
  • Raimi, L., Suara, I. B. and Fadipe, A. O., 2013. Role of Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices & Other Related Offences Commission (ICPC) at Ensuring Accountability and Corporate Governance in Nigeria. Journal of Business Administration and Education. 3(2).

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