1.1 Identification of a problem which exists within a business
When a company expand business then it needs to introduce necessary resources to meet demand or requirement of marketplace. It includes adequate number of staff, machineries, training and development program, replacement of old technologies with advanced one and more. To meet all these requirements, the main thing which organisations need to concern is finance. As if there is a shortage of funds within a firm, then it will seem to be major problems which impacts on whole working operations and also managers feel unable to complete a project on time. In addition to this, company will also fail to hire proper number of staff members and give proper training to them. It will also seem to be unable to meet demand of marketplace on time in desired manner. Henceforth, the major problem which generate so many issues in a firm is shortage of funds. Therefore, it is necessary for managers of a company to concern it more, in order to complete a project within set period of time.
1.2 An analysis on present business problem
In a company, the major problem is inadequate amount of finance, which generate many problems in complete a project. For example: Due to shortage of funds, project makers cannot conduct any kind of activity in set period of time. This would impact on whole working process of completion of a project. Therefore, to overcome from such an issue, managers set some objectives. It includes-
- To ascertain regular and adequate supply of funds within organisation.
- To ensure optimum utilization of funds.
- To take loan from commercial banks and public funds.
Scope: Decision taken by finance manager of company to meet requirement of sufficient amount of funds has large scope. By ensuring that there is a regular supply of amount help in reducing the problems which may occur due to shortage of funds. Furthermore, develop proper budget plan will also aid in utilization of limited funds and other resources as well. Along with this, if they take loan from any financial institutions, will help in resolving such an issue also.Get Dissertation Help From Experts of UK.
Time: To accomplish mentioned objectives, near about 3 to 4 weeks will be taken by finance managers of a company.
The main purpose behind set some objectives by managers is to meet requirement of funds within company. With this assistance, they can hire eligible employees at workplace, will give proper training to them and gain their support towards business expansion. Furthermore, in order to get some more suggestions to reduce financial problem, managers have organised conference meeting with all stakeholders or contributors. Through discussion, they have got some possible solutions like mutual funds, financial control, investment of funds and more. To test viability, research team can use primary research techniques to get feedback of customers and other stakeholders. Through this test, they have analysed that allocation of funds into most profitable ventures will give assurance that there is safety on such investment as well as regular return may also be possible.
1.3 Causes of problem
Not having sufficient working capital between investment in growth and realisation of profitability in critical time, seems to be a major cause for those companies who are experiencing rapid expansion in business. It may ruin entire objectives of project which is done for business growth. Therefore, to deal with such shortage of funds, finance managers of a firm can formulate various strategies and techniques. It includes investment in profitable ventures who hold strong position in marketplace, take loan from public funds, utilise given resources and more. This would help in resolving issues which may arise due to insufficient availability of funds.
2.1 A plan to solve the problem
As it has analysed that in a company, all major problems are arise due to shortage of funds. Due to this, managers and other team members seem to be unable to complete a project on time or fail to meet requirement of business. Therefore, to solve this problem, they have made a plan which is based on Key Performance Indicator (KPI). Through this technique, they can analyse past performance of business where company get success to meet its every requirement. By this process, they can analyse, which techniques and strategies were used in past that helps in completing a task with limited amount of funds. Therefore, by using such a technique in present operations, managers may gain opportunity to utilise limited stock of resources and finance. Along with this, through record of past performance, they can develop some more effective strategies also for optimum utilization of funds. But under this process, main possible constraints which may be faced by managers of such organisations are- Inadequate information of past record; Lack of expertise; High level of management approval; Bureacratism and more. All such problems will create issues in analysing past performance record and further processing as well. At present, approval of management to take and implement previous approaches is a major constraints in front of managers. &n