Table of contents.
Introduction.
this report written by ferda will include my advice on ways that you could improve your
business and make it more successful.
1. Executive summary.
For the Hut Jun and Jisoo you have always relied on personal relationships with your
suppliers, such as the supplier in India that provides tea leaves to the business. In the
past this has caused problems for you due to its informality and because prices are
subject to change, these problems can be avoided by creating a formal written
contract with your suppliers which can make sure that both of you will get a fair
trade.
Unfortunately, due to the injury of a dog because of the front door you have had to
pay compensation and will need to attend court causing a lot of stress for you, to
avoid this situation from happening again it could be a good idea to adopt more
health and safety measures for the store, this could be the addition of a new
automatic front door that’s malfunctions will be covered by insurance.
All three staff working at the hut are paid minimum wage without any formal
arrangements. Your business should manage employee relationships by making
there employment formal and to give them sufficient payment, this will improve
there overall efficiency at the job and minimise problems.
When your business needs to source finance I recommend you to apply for a
business bank loan, this is because there is a possibility to get incredible amounts of
finance with small amounts of interest which makes it ideal for your use. These loans
could be secured and unsecured mostly depending on the amount of money that will
be loaned.
The macroeconomic pricing strategy known as price discrimination could be a good
measure to implement in your business . This can be done by adding occupational
discounts for NHS employees and also an age discount for anyone over 60, this will
help your business increase its profits due to the appeal to more customers.
A business having competitive pricing is a vital part for its long term success
specifically reducing the prices to increase the demand for your products. To have
competitive pricing you must communicate with your suppliers so they can lower
there prices therefore allowing you to make more profit even while dropping the
price because of the increase in demand for your products.
2. Business contracts: Formation of contracts with suppliers.
Jun’s personal relationship with the suppliers could be a disadvantage when
negotiating prices with suppliers, therefore I would like to recommend the use of a
formal contract with your suppliers. Currently you have an informal contract with
your suppliers, this can cause them to not prioritise you as a customer because they
will not receive sanctions if they don’t meet your proposed terms leaving you
financially vulnerable.
Therefore, It is important for a business to form a formal written supplier contract;
this is because both party’s with have to uphold their part of the contract or face
consequences such as fines and there will be no dispute about the terms and
conditions of their contracts because it will be written down and both sides have
agreed to them. This is evident because they will have no legal requirement to
withhold their part of the contract. The corporate social responsibility of your
business will also be in a better position because this is more in line with how you
market the company.
3. Health and Safety.