Last updated: May 13, 2019
Topic: BusinessMarketing
Sample donated:

Managing Small Business

Task A: Case Diagnosis
Section 1: Choosing the organization
The organization was chosen by the author o this paper based form the mission that the group intended to pursue in establishing a particularly unique organization designed not only to gain profit for the employers but is also prepared to assist the employees meet a certain personal goal. So as to hold the privacy of the organization chosen, the author of this writer opted not to write regarding the personal vitae of the organization. Through giving only the most important informations, the author of this study sees that the data cited herein could be considered suffice to attain the goal of this particular paper.

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Section 2: The Business Enterprise; A Situational Narrative

The business enterprise to examine in here is a small clothing manufacturing company. Having 20 employees, 15 are tailors and the other three are part of the accounting office while the other two are part of the administrative officers, both supervising agents who happen to serve as the employees’ link with the higher administrative officers of the organization.


The business is owned by a young man 26 of age and is married with a young woman and has a child. The business started as a family source of income. The wife began to sew clothes for friends to be able to earn for a living.  Since they were young and undergraduate, the said couple decided to share in the job. The business earned them well and for some time allowed them to have the capability to support all the needs that they ought to attain for their family. Along the way, they met other couples who were like them. Young and less able to get a job, hence, they began to register their business and invited the couples that they have known to have the same situation as they are.


The system of the employment primarily revolved on trust and the willingness to help each other. Most of the tailors were women and the men delivered the ordered clothing to the clients. The couples are taken as one employee whereas whatever it is that they finish for the day, they get 70 percent of the pay. The orders are assigned according their skills. The group accepts made to order gowns, and tailored tuxedos, clothing fixings as well as costume and uniform tailoring which are mostly ordered in bulk. Another new venture of the group is creating home-decorations such as curtains, seat covers and pillowcases.


From this, it could be noted that the people working for the small business were much satisfied as they are able to sustain their needs while having the thought that they too are able to help others with the same situation as they are at present. The system in the business is much applicable in their situation as they are equally able to attain the goals of their small organization which is to give fine and fair employment to young parents who are having a hard time acquiring employment from formal large business organizations. From this particular observation, it could be noted that the importance of trust and the satisfaction of being of great worth to others is given a high regard in small types of businesses. Mostly, the large amount of profit being entered within the business, basing from the experience of the owners of this particular tailoring business, is not much of a great concern as long as the workers of the organization get paid for the efforts that they put forward for the jobs being completed, the organization and its founders as a whole are assured enough that the business would stay for long.


From this particular study of the small business organization mentioned above, most of the theories of small-scale businesses had been proven true. The belief that small-scale business establishments hope more for worker loyalty than large profits has been proven right. As it has been obviously related, because of the fact that small-businesses are still trying to sprout out in the business industry to be able to get on in the wagon of large-scale competition among other organizations, they value the trust that their workers put on them so much. The lesser population of employees there are, the easier they are to assist and the more established the relationship within the employees and the owners could be. This is much unlikely to happen in large-scale businesses. This is primarily because of the need for higher level of managing team to be able to meet with the needs and demands of the employees from the organization’s owners. Small businesses are able to communicate directly with their employees since the existing population is not that hard to control. Motivation also flows freely as the employees are given ample attention especially in terms of motivational talks and meetings between all the members. As for the organization mentioned herein, the control of performance and organizational leadership is based upon trust, loyalty and the aim of helping each other get by with life. It may seem to some that this particular situation is not that easy to believe into, however, as it amazes the author of this paper as well, it is indeed true that through the established trust between the employers and the employees the business enterprise continues to grow in a much-established way.


Compared to other competitors of the same industry in tailoring clothes, at some point it’s the organization’s edge to actually have their employees’ loyalty based on trust and friendship, which is most likely not that easy to achieve by other organizations within the industry. The main mission and the vision of the organization to be of great help to undergraduate and young couples who are trying to make it through their lives in supporting the needs if their families make the organization appear to be an exclusive organization with a certain exclusive goal. This particular factor makes the employees feel that they are special and are being cared much about by the employers. The fear of not being understood is not an issue within the said organization. It could also be noted that even though the main idea is to create friendship within the employees of the company as well as with the employers, it is strictly implemented that during the hours of work, professionalism should be applied constantly. This means that although they are all friends, their determination to perform well for the sake of reaching the aspirations of the entire organization helps them become completely serious with their job giving them the capability to remain loyal with themselves as well as with the idealisms of the organization continuously.

One more difference that this particular organization against the others is that they are more systematic and organized in terms of planning and scheduling the job orders for each of the employees. Aside from giving all the benefits needed by the employees, at some point, the insurances that the employees are provided with are willingly paid by the work force. This is mainly because of the fact that the insurance benefits were deeply tackled by the employers with the employees as to how important they are especially for growing families. Primarily, the training and the informative meetings that the employees deliver to their people force have helped the workers realize that they are given a high importance by the management, and in result, assists them in becoming highly motivated to complete their jobs in a much established reason.


From this particular motivation, the employees are empowered in reaching their goals and believing in their selves saying that they can survive the challenges of early marriage and handling the challenges by early parenthood as well. This particular pattern of motivation sets the organization apart from competitors. As it could be observed most of the competitors base their motivation much on the profit aspect of the business. The employers in this particular business organization though, being young and enthusiastic as they are and being able to understand their employees’ situation in life makes it easier for them to know what to provide their employees with.


A Brief Summary
As a summary of the primary context of this entire small business case observation, it could be noted that there are at least three major factors contributing to the success of small businesses aside from the capital and the workers themselves. It might be surprising to some, but the most abstract factors are the primary elements that could contribute to the success of small business enterprises. These elements are better presented in diagrams to be able to give a clearer view of the actual picture.













Diagram 1: The basic elements contributing to Small Business Success

From this particular diagram, it could be observed how important trust, friendship and loyalty is among the members of a certain organizational arrangement. From the organization mentioned in this particular organizational study, there is a certainty that small organizations are primarily based upon the strengths that it could acquire in accordance with the major elements of success and that is garnered only through the existence of fine human relations.


From this particular study, it could be noted that the organization used as an example for the proof of the truth of the application of small business strategy approach theories, could be agreed to have the best elements of reason in establishing their business. It could be learned that through the implication of the right mission and the rightful motivation, a business enterprise, no matter how large or small its scale is, it could become successful if it is based upon strong foundations of being duly established.


The relationship between the employees and the employers is

also an important element to consider in finding a strategic procedure in attaining the success for a particular small-scale business enterprise. Small organizations could only hold on a fine relationship since the finances of the group may not be that well established yet. Hence, the constant application of the three elements mentioned above namely trust, friendship and loyalty creates a specific possibility of leading the whole organization towards progress and larger promises of success in the future.


A fine practice of leadership too helps in the organization’s journey towards business advancement. Once the employers themselves learn what their employees want and need, they are expected to be able to set certain policies and regulations as well as set up beneficial programs that would particularly assist their workers in becoming highly competent employees who are all ready to support the organization’s process of reaching its main goals.


Part B: Learning, Comprehension and Personal Application

The following are the readings derived from the research made by the author of this paper:


SOURCE 1: There is no set formula to establish the value of a key employee. However, the following are some general guidelines.


?      The capitalized value of that portion of the company’s profits attributable to the employee.


?      The costs of replacing the employee.


?      Three to ten times the employee’s annual salary. Five times is the commonly used multiplier.


The business (or employer if a sole proprietorship) is the applicant, owner and beneficiary of an insurance policy on the life of the key employee. No form of agreement is necessary between the business and key employee except the individual’s consent to be insured, evidenced by his or her signature on the application. Thus, the business has complete flexibility to use the cash value of the policy during life and the proceeds after death.


Though the primary purpose for the insurance is to indemnify the business for its loss of the key worker through death, the policy may also


?      Provide funds for sudden emergencies or unexpected opportunities.


?      Bolster the credit standing of the company.


?      Serve as collateral for confidential policy loans at a guaranteed interest rate.


?      Provide funds that the corporation could use for the insured’s retirement or for the family if the key employee dies.

(Seymour Reitman. INSURANCE OPTIONS FOR BUSINESS CONTINUATION. U.S. Small Business Administration. )



From this particular reading, the author of this paper learned that insurance benefits are among the primary motivational agents used by entrepreneurs to help their workers focus on the major aims and goals of the organization.




After preparing a concise written assessment of the economic environment, you are ready to meet with key people in your organization for a marathon planning session. Make sure that all key departments (e.g., sales, service, finance, processing, manufacturing, etc.) are represented to ensure that a realistic plan with a common goal is developed.


The meeting will be most effective in a comfortable place that is free of interruptions and distractions. Often it is best to get away from the business premises. For many businesses the process takes two full days, so you may want to accomplish it over a weekend.


The sessions will function best if they are structured. The following is a proven technique:


?      Appoint someone to be the facilitator of the group. It should be someone impartial and not so locked into his or her own ideas that he or she cannot see the potential merit in others’ ideas.


?      Agree in advance that creativity is desirable, so no idea brought up at the session will be immediately discarded as impractical or undesirable. (Sometimes impractical or impossible suggestions can spark other extremely positive ideas).


?      Appoint someone to write down the essence of what the group discusses and decides.


?      Equip the room with a flip chart, felt tip markers, and masking tape or thumb tacks.


?      Follow an agenda. The one shown in Appendix A has proven very effective.


After the opening comments, a review of the session’s procedures and a report on the economic environment, you are ready to begin the most important part of the process.

(Source: Michael L. Policastro. INTRODUCTION TO STRATEGIC PLANNING. U.S. Small Business Administration. )



From this reading, it could be observed that a great part in acquiring success in small businesses is the existence of fine planning. Through systematic and strategic planning the business activities of the organization could be carefully set towards the progressive aim of the entire group of employees.



SOURCE 3: Knowing Your Market

Primary research on the outside can be as simple as asking customers or suppliers how they feel about your store or service firm or as complex as the surveys conducted by sophisticated professional marketing research firms. Primary research includes among its tools direct mail questionnaires, telephone or on-the-street surveys, experiments, panel studies, test marketing, behavior observation and so on.


Primary research is often divided into reactive and nonreactive research. The peanut shell study at the beginning of this publication is an example of nonreactive primary research: it was a way to see how real people behaved in a real market situation (in this case, how they moved through the store and which displays attracted their attention) without influencing that behavior even accidentally.


Reactive research (surveys, interviews, questionnaires) is what most people think of when they hear the words marketing research. It is best left to the experts, as you may not know the right questions to ask. There’s also the danger that people won’t want to hurt your feelings when you ask their opinions about your business, or they’ll answer questions the way they think they are expected to answer rather than telling you how they really feel.


If you can’t afford high-priced marketing research services, ask nearby college or university business schools for help.

(Robert C. Erffmeyer, Ph.D. RESEARCHING YOUR MARKET. U.S. Small Business Administration. )





The researching about the market of the organization is certainly necessary especially for the small businesses. It is necessary that small-scale organizations know whom they are serving and how those clients want to be served with.












Robert C. Erffmeyer, Ph.D.     RESEARCHING YOUR MARKET. U.S. Small Business Administration.

Source: Michael L. Policastro. INTRODUCTION TO STRATEGIC PLANNING. U.S. Small Business Administration.

Seymour Reitman. INSURANCE OPTIONS FOR BUSINESS CONTINUATION. U.S. Small Business Administration.