Entrepreneurship and Business Management N5 |
Read the case study below and answer the questions
| Nozipho Khoza started a Florist Magic in her backyard in Pimville, Soweto. She enjoys creating flower arrangements. She uses both fresh and artificial flowers for her creations on the customer’s requests. Today Florist Magic is a well-established and highly regarded business that provides flowers for all occasions. She has two female assistants, a salesperson, and a delivery man |
1.1 Explain the ways in which Nozipho could contribute towards the social
responsibility in her community by working with the church.
Nozipho can provide special discounts on her floral arrangements for church events, making them more affordable for the congregation.
2 – Donate Flowers:
She can regularly donate flowers to the church for decorating the premises during services and special occasions.
3 – Provide Employment for Unemployed Church Members:
Nozipho can offer job opportunities to unemployed church members by hiring them as part of her staff, contributing to local employment.
4 – Assist in Fundraising:
She can actively participate in church fundraising events, not only by donating her floral creations but also by helping organize and promote these events within the community.
5 – Assist in Planning Events:
Nozipho can use her expertise in event planning to assist the church in organizing and coordinating various church events, ensuring they run smoothly.
6- Support Community Initiatives:
She can collaborate with the church on community initiatives, such as food drives, clothing donations, or educational programs, to address pressing needs within the community.
7- Mentorship and Skills Development:
Nozipho can offer mentorship and skills development programs to church members interested in floristry or entrepreneurship, empowering them with valuable knowledge and expertise.
8- Environmental Responsibility:
She can promote eco-friendly practices by using sustainable materials in her floral arrangements and encouraging the church to adopt environmentally responsible habits.
1.2 Nozipho realized that the success of her business depends on teamwork.
Advise Nozipho on FOUR methods that she could include in a programme to
develop teamwork.
To foster teamwork within her business, Nozipho can implement the following methods:
1- Competitive Sports:
Organize sports competitions where her team competes against other teams. This will encourage team members to work together, build camaraderie, and develop a sense of unity while striving for a common goal.
2 – Regular Social Contacts:
Arrange regular social gatherings or outings with other teams. These interactions can help team members socialize outside of work, strengthening their relationships and enhancing collaboration.
3 – Motivational Workshops:
Conduct motivational workshops and team-building sessions. These workshops can focus on improving communication, problem-solving, and leadership skills, all of which are essential for effective teamwork.
4- Adventure Race:
Enroll the team in adventure races or challenges. Such activities require teamwork, strategic planning, and trust among team members, fostering a spirit of cooperation and determination.
5 – Proper Working Climate:
Create a conducive working environment that promotes collaboration and teamwork. Ensure that team members feel comfortable expressing their ideas, and provide the necessary tools and resources for them to work together effectively.
6 – Clear Goals and Objectives:
Set clear and achievable team goals and objectives. When everyone understands their role in achieving these goals, it encourages collaboration and alignment toward a common purpose.
7 – Regular Team Meetings:
Schedule regular team meetings to discuss progress, challenges, and opportunities. These meetings provide a platform for open communication, idea-sharing, and problem-solving among team members.
8 – Recognition and Rewards:
Implement a system of recognition and rewards for outstanding teamwork. Acknowledging and celebrating team achievements can boost morale and motivation.
1.3 What practical steps can Nozipho take as an entrepreneur to maintain or
improve her personality?
To maintain or improve her personality as an entrepreneur, Nozipho can take several practical steps in the following areas:
1 – Physically:
2 – Mentally:
3 – Spiritually:
4 – Socially:
By addressing these physical, mental, spiritual, and social aspects of her life, Nozipho can enhance her personality as an entrepreneur and continue to grow personally and professionally.
1.4 Explain the steps that Nozipho could follow when employing a driver for her
business.
Here’s are the steps Nozipho can apply to hire a driver for her business:
Step 1: Application Forms
Nozipho should develop a comprehensive application form, soliciting vital personal details like the candidate’s name, contact information, address, qualifications, and pertinent work experience. Additionally, she can require applicants to either complete these forms or submit their Curriculum Vitae (CV), offering a comprehensive detail of their qualifications and professional background.
Step 2: Initial Interview
Once all applicants have submitted their application forms or CVs, Nozipho should conduct a thorough evaluation, meticulously assessing each candidate’s qualifications and relevant experience. Subsequently, she should identify and shortlist the most suitable candidates who meet the essential qualifications and requirements for the driver role.
Step 3: Interview
The face-to-face interview holds significant importance as it marks the initial in-person interaction between the business and the candidate. Nozipho should arrange and conduct interviews with the candidates who have made it to the shortlist, allowing her to evaluate their communication skills, professionalism, and overall fit for the position. She can employ diverse interview approaches, including behavioral and situational interviews, to effectively gather comprehensive information about the candidates’ capabilities and attitudes.
Step 4: Testing/Psychological
Nozipho can administer practical tests to assess the candidates’ driving skills. Additionally, she may consider psychological assessments to evaluate their temperament and suitability for the role.
Step 5: Approval by the Supervisor
Nozipho should involve a supervisor or a knowledgeable authority in the final selection process who knows what personal qualities or characteristics are necessary for the job. This ensures that the selected candidate aligns with the specific qualities and attributes required for the driver position.
Step 6: Physical Examination
At this stage, there should be an evaluation of the candidate’s mental and physical health for the position. Nozipho should arrange for a thorough physical examination to confirm that the candidate is in good health and physically fit for the demands of the driver role.
Step 7: Orientation and Induction
The successful candidate should be introduced as the new employee to the business: Once Nozipho has selected the driver, she should conduct an orientation and induction process. This includes familiarizing the new employee with the company’s policies, safety protocols, vehicle maintenance procedures, and their role within the organization.
By following the above steps, Nozipho can ensure a systematic and thorough selection process when employing a driver for her business, helping her find the most suitable candidate for the role while minimizing risks and ensuring compliance with relevant regulations.
1.5 As Florist Magic becomes popular through marketing, customers would like to buy flowers on credit. Which procedure should be followed for the screening
of debtors to eliminate bad debts?
To ensure the effective screening of debtors and minimize the risk of bad debts as Florist Magic offers credit to customers, Nozipho should implement a thorough credit screening procedure. This procedure should include the following key components:
1 – Bank Details:
Obtain and verify the bank details of the prospective debtor. This includes their banking institution, account number, and other relevant financial information. This step helps in assessing the financial stability of the customer.
2 – Current Trade References/Credit References:
Request and check for references from the customer’s current and previous trade or credit relationships. These references can provide insights into the customer’s history of meeting financial obligations and creditworthiness.
3- Details of Employment:
Gather information about the debtor’s employment, including their current employer, job position, and length of employment. This information can be valuable in assessing the debtor’s ability to make timely payments.
By diligently following these credit screening procedures, Florist Magic can make informed decisions about extending credit to customers and reduce the likelihood of bad debts.
2.1 Is Florist Magic a leased or an owned business?
Motivate the answer by quoting a supporting statement from the case study.
Florist Magic is an owned business. This conclusion is supported by the statement in the case study that says, “NoziphoKhoza started a Florist Magic in her backyard in Pimville, Soweto.” This indicates that NoziphoKhoza initiated the business in her own backyard, implying ownership of the business premises.
2.2 Draw up a job description for the salesperson at Florist Magic.
Here is a job description for the salesperson at Florist Magic.
Job Title: Salesperson
Report to: Owner/Nozipho
Job Overview:
Florist Magic is seeking a dedicated Salesperson to join our team and contribute to the success of our flower business. As a Salesperson, you will be the face of our company, interacting directly with customers, showcasing our merchandise, and ensuring a seamless shopping experience.
Key Responsibilities:
(a) Attend to Customers:
(b) Display Merchandise:
(c) Advertise Stock:
(d) Take and Process Orders:
(e) Arrange Payments, Deliveries, etc., for Customers:
Qualifications:
Working Hours:
This Salesperson position may require flexible working hours, including weekends and holidays, to accommodate customer needs and seasonal demands.
Florist Magic is committed to providing equal employment opportunities to all qualified individuals, and we encourage candidates of all backgrounds to apply.
2.3 Explain how each of the following labour legislations would impact on
Nozipho’s business:
2.3.1 Basic Conditions of Employment Act
2.3.2 Unemployment Insurance Fund Act
2.3.3 Machinery and Occupational Safety Act
2.3.1 Basic Conditions of Employment Act:
The Basic Conditions of Employment Act would have a significant impact on Nozipho’s business, Florist Magic, as it sets the minimum standards for various aspects of employment. This legislation helps Nozipho determine critical employment conditions such as working hours, annual leave entitlements, maternity leave provisions, the minimum wage that must be paid to employees, and regulations regarding sick leave. Nozipho must ensure that she complies with these statutory requirements to provide her employees with fair and legally mandated working conditions. Failure to adhere to these conditions could result in legal consequences and penalties.
2.3.2 Unemployment Insurance Fund Act:
The Unemployment Insurance Fund Act establishes a fund to which both employers and employees contribute. In the event of an employee being retrenched or becoming unemployed for reasons covered by the Act, they can claim benefits from this fund. Nozipho, as an employer, is required to make regular contributions to the fund on behalf of her employees. This legislation impacts Florist Magic by necessitating compliance with contribution requirements and ensuring that Nozipho is aware of the procedures for assisting retrenched employees in accessing their benefits. It’s important for Nozipho to correctly administer and submit contributions to the Unemployment Insurance Fund to support her employees during times of unemployment.
2.3.3 Machinery and Occupational Safety Act:
The Machinery and Occupational Safety Act is vital for ensuring the safety and well-being of workers in their work environment. For Florist Magic, this legislation requires Nozipho to take measures to protect the safety of her employees while they are on the job. This includes identifying and mitigating workplace hazards related to the use of machinery, ensuring that employees have access to safety equipment and training, and promoting general occupational hygiene. Nozipho must establish and maintain a safe work environment to prevent workplace accidents or health hazards. Failure to comply with this Act could result in serious injuries to employees and legal repercussions for the business.
2.4 Suggest methods that Nozipho could employ to motivate her staff.
Here are six methods that Nozipho could employ to motivate her staff at Florist Magic:
1 – Competitive Compensation:
Offering competitive wages or salaries that align with industry standards and reflect the employees’ skills and contributions can be a powerful motivator. Adequate compensation demonstrates that Nozipho values her staff’s hard work.
2- Training and Development:
Providing opportunities for staff training and development can motivate employees by showing them that Florist Magic is invested in their growth. Skill enhancement can lead to increased job satisfaction and career advancement.
3- Education Bursaries:
Offering educational bursaries to employees’ children is a valuable benefit that demonstrates Nozipho’s commitment to her team’s well-being and long-term success.
4- Safe and Healthy Working Conditions:
Maintaining a safe and healthy work environment is essential for staff motivation. Employees who feel secure and comfortable at work are more likely to be motivated and productive.
5- Medical Assistance:
Providing access to medical assistance or healthcare benefits can be a significant motivator. It helps employees take care of their health and the health of their families, reducing stress and improving overall job satisfaction.
6- Performance Bonuses:
Implementing performance-based bonuses can incentivize employees to excel in their roles. Rewarding exceptional performance with financial incentives can boost morale and motivation.
2.5 How can Nozipho use the control process to confirm that the new employee is perfect for the job?
Nozipho can use the control process to confirm that a new employee is a perfect fit for the job by following these steps:
Step 1: Effective Performance
Nozipho should clearly define the specific tasks and responsibilities that the new employee needs to perform. This includes outlining the job description and expectations in detail.
Step 2: Measuring Current Performance
Once the new employee starts working, Nozipho should regularly assess their performance against the established standards and expectations. This involves comparing what the employee is actually doing with what is required.
Step 3: Informing the Worker
If deviations or faults in performance are detected, Nozipho should provide constructive feedback to the employee. She should communicate clearly about the areas where the employee is falling short of expectations and offer guidance on improvement.
Step 4: Select Remedial Action
Depending on the nature and extent of the deviations, Nozipho needs to decide on appropriate remedial actions. This could involve additional training, coaching, or process improvements. The goal is to rectify the situation and help the employee meet the required standards.
Step 5: Re-evaluation of Performance
After implementing corrective actions, Nozipho should continue to monitor the employee’s performance. Regular follow-ups will determine whether the remedial measures are effective and if the employee is making the necessary improvements.
Step 6: Continuation/Discontinuation of Action
Based on the re-evaluation of performance, Nozipho will decide whether to continue with the remedial actions or discontinue them. If the employee’s performance aligns with expectations, there may be no need for further corrective measures. However, if issues persist, Nozipho may consider additional steps, such as further training or, in extreme cases, employee demotion or termination.
By following these steps, Nozipho can ensure that the new employee is not only a good fit for the job but also has the opportunity to improve and excel in their role within Florist Magic. This control process helps maintain the quality and efficiency of the workforce.
3.1 Nozipho is faced with a challenge. She has R30 000 and needs to make a
decision about whether to employ an additional lady who does flower
arrangements or to renovate her business. Use steps in the decision-making process, to help Nozipho to make a proper decision.
To help Nozipho make a proper decision between employing an additional lady for flower arrangements or renovating her business, she can follow these steps in the decision-making process:
Step 1: Diagnose and Define the Problem Nozipho should clearly identify the problem she is facing: choosing between employing an additional lady or renovating her business. She needs to understand the challenges and opportunities associated with each option.
Challenges and Opportunities: For example, employing another person means added payroll costs, while renovation requires upfront capital. On the flip side, an extra employee might increase productivity, and a renovated space could attract more customers.
Step 2: Gather and Analyze Information To make an informed decision, Nozipho should gather relevant information. This includes assessing the current size of her business, the type of person needed for flower arrangements, and the potential income increase from each option.
Step 3: Put the Real Problem in Writing
Nozipho should document the decision-making process, ensuring that the problem and the available options are well-documented. This could be part of her business’s strategic planning process or recorded in a meeting or diary.
Step 4: Establish Decision-Making Criteria Discussing the decision with her staff can help Nozipho establish decision-making criteria.
Criteria might include:
Step 5: Develop Alternative Solutions
Nozipho should brainstorm alternative solutions. In this case, her options are to avoid risk by not renovating, or to employ an additional lady for flower arrangements. Each option should be evaluated for its potential benefits and drawbacks.
Step 6: Determine Possible Results Nozipho should gather facts and figures to determine the possible results of each alternative. This involves assessing the financial implications, potential revenue increase, and other relevant data.
Step 7: Decide/Take Action
Nozipho should make a decision based on the information gathered and the established criteria. She can weigh the pros and cons and choose the option that aligns best with Florist Magic’s goals.
Step 8: Make Follow-up Decisions
After implementing the chosen option, Nozipho should continually monitor its progress. If the selected solution doesn’t yield the expected results, she may need to revisit the decision-making process, considering adjustments or alternatives.
By following these steps, Nozipho can make a well-informed decision that best suits the needs and goals of Florist Magic, whether it involves employing an additional lady or renovating the business.
3.2 State FOUR factors that would contribute towards the success of Florist
Magic business.
1- Well-Established and Recognized Business:
The fact that Florist Magic is a well-established and highly regarded business provides a significant advantage. Customers trust and recognize the brand, which can lead to repeat business and referrals.
2- Reasonable Prices:
Offering competitive and reasonable prices for flower arrangements can attract a broader customer base. Affordability makes the services accessible to a wider audience, increasing the potential for sales.
3- Well-Marketed Business:
Effective marketing efforts play a crucial role in attracting customers. Nozipho should continue to promote her business through various channels, including social media, local advertising, and partnerships with event planners or wedding venues.
4- Good Customer Service and High-Quality Work:
Excellent customer service, combined with consistently high-quality flower arrangements, ensures customer satisfaction and loyalty. Happy customers are more likely to return and recommend Florist Magic to others, contributing to the business’s success.
5- Variety of Offerings:Expanding the range of flower arrangements and services can be a significant factor in success. Offering diverse options for different occasions, such as weddings, birthdays, and corporate events, can attract a broader customer base and cater to various needs.
6- Effective Cost Management:
Managing business expenses efficiently is crucial. This includes optimizing the cost of raw materials, labor, and overhead. Effective cost management can lead to better profitability and competitiveness in the market.
7- Community Engagement:
Building strong ties with the local community can foster goodwill and repeat business. Participating in local events, supporting community initiatives, or collaborating with nearby businesses can enhance Florist Magic’s reputation.
8- Online Presence:
In today’s digital age, having a strong online presence is essential. Maintaining a user-friendly website, utilizing e-commerce for online orders, and engaging with customers through social media platforms can expand the reach of the business beyond the local area.
9- Employee Training and Development:
Ensuring that employees are well-trained and motivated can improve the quality of service and efficiency. Continuous training and opportunities for professional growth can lead to a dedicated and skilled workforce.
10- Adaptability:
Being flexible and adaptive to market changes and trends is crucial for long-term success. Nozipho should keep an eye on industry developments and adjust her offerings and strategies accordingly.
3.3 Explain how Nozipho’s business contributes to the country’s economy.
1- Creates Employment:
Florist Magic employs Nozipho, two female assistants, a salesperson, and a delivery man. By providing these job opportunities, the business contributes to reducing unemployment in the community, thereby enhancing the livelihoods of the individuals and their families.
2- Stimulates Local Economy:
The business purchases fresh and artificial flowers, vases, and other materials from local suppliers. This stimulates economic activity within the region, supporting other businesses along the supply chain.
3- Contributes to Tax Revenue:
Through the legal operation of her business, Nozipho pays taxes, including income tax, sales tax, and other relevant levies. These tax contributions add to the government’s revenue, which can be used to fund public services and infrastructure development.
4- Improves Standard of Living:
By offering a range of floral products and services, Florist Magic enhances the quality of life for its customers. Whether it’s providing flowers for special occasions or improving the ambiance of homes and events, the business positively impacts the well-being and happiness of individuals in the community.
5- Boosts GDP (Gross Domestic Product):
The economic activities generated by Florist Magic, including sales, purchases, and employment, contribute to the country’s GDP. A higher GDP reflects overall economic growth and prosperity within the nation.
6- Encourages Entrepreneurship:
Nozipho’s success story as an entrepreneur can inspire others in the community to start their businesses. This entrepreneurial spirit can lead to more small businesses, which collectively contribute to economic diversification and resilience.
7- Supports Local Events and Celebrations:
Florist Magic’s involvement in providing flowers for various occasions, such as weddings, funerals, and corporate events, adds vibrancy and elegance to local celebrations. This, in turn, supports the event industry and local tourism.
3.4 Explain to Nozipho what is meant by participative decision-making and state THREE Advantages thereof.
Participative decision-making, as the name suggests, involves the active involvement of workers or employees in the process of making decisions that directly impact their work or the organization as a whole. It emphasizes collaboration and input from those who are affected by the decisions.
Here are three key advantages of participative decision-making for Nozipho to consider:
Increased employee engagement:
When employees who will be directly affected by a decision are included in the decision-making process, it ensures that their perspectives, concerns, and insights are taken into account. This means that decisions are more likely to consider the practical implications on the ground. Involving employees in decision-making makes them feel valued and engaged, fostering a sense of ownership and commitment to the outcomes. Engaged employees are generally more motivated, productive, and loyal to the organization.
Ensure Acceptance of the Decision:
When employees have the opportunity to contribute to the decision-making process, they are more likely to accept and support the final decision. This is because they feel a sense of ownership over the outcome and are less likely to resist or oppose decisions that they had a hand in shaping. It can lead to smoother implementation and better cooperation.
Better quality decisions are made
Participative decision-making leverages the collective skills, knowledge, and expertise of the workforce. Employees often bring valuable insights and innovative ideas to the table. By tapping into the skills available within the organization, Nozipho can make more well-informed decisions and harness the creative potential of her team.
3.5 Construct a brief mission statement for Nozipho’s business.
Magic Flower is committed to creating exceptional flower arrangements for individuals, businesses, and organizations. With over a decade of experience, our ultimate objective is to become the leading florist in Johannesburg, using technology to deliver quality products and excellent customer service.
Linda Brown opened a business by the name of ‘Craft for Africa’ in Greenmarket
Square in Cape Town. She bought all her wood frames, wire for toys, African beads and paint materials from a local supplier. She runs a big business which caters for the tourism industry and she also exports goods to overseas countries
Refer to the financial statements below and answer the questions.
NOTE: Make use of figures before tax and show ALL the calculations
| INCOME STATEMENT OF CRAFTS FOR AFRICA FOR THE YEAR ENDED 30 NOVEMBER 2014 |
| Sales R 1 439 200 Cost of sales R 748 200 Gross profit R 691 000 Less: Selling expenses R 633 000 Overheads R 609 000 Administrative expenses R 24 000 Net income before tax R 58 000 Less tax R 17 200 Net income before tax R 40 800 |
| BALANCE SHEET OF CRAFTS FOR AFRICA AS AT 30 NOVEMBER 2014 |
| Employed capital R 374 000 Owner’s equity Capital R 333 200 Net profit R 40 800 Long term liabilities R 200 000 R 574 000 Employed of capital Fixed assets Land and building R 460 000 R 514 000 Machinery R 54 000Net current assets R 60 000 Current assets R 110 000 Stock R 10 000 Debtors R 80 000 Cash R 20 000 Less: current liabilities R 50 000 ________ Creditors R 50 000 R 574 000 |
4.1 How well is the business compensating the owner for the risk that she took?
HINT: Return on Investment.
To calculate the Return on Investment (ROI) and assess how well the business is compensating the owner for the risk she took, we’ll use the formula:
ROI = (Net Income Before Tax / Total Assets) x 100
From the information provided:
Net Income Before Tax = R58,000 Total Assets = R574,000
Now, plug these values into the formula:
ROI = (R58,000 / R574,000) x 100
ROI = (0.1) x 100
ROI = 10%
The Return on Investment (ROI) for Crafts for Africa is 10%. This means that for every Rand of total assets, the business generated a return of 10 cents.
4.2 Was it worthwhile to take the risk? Give TWO reasons.
No, it may not have been worthwhile to take the risk. There are two key reasons for this:
1- Low Profitability:
The business generated a 10% profit, as calculated by the Return on Investment (ROI). This level of profitability may not be considered satisfactory, especially when taking into account the risks and efforts associated with running a business
2- Comparison to Bank Offerings:
The ROI of 10% is lower than what the bank offered. This implies that if the owner had chosen a lower-risk investment, such as placing her capital in a bank account or investing in a low-risk financial instrument, she might have received a more attractive return without exposing herself to the inherent risks of operating a business.
4.3 Does the business have enough cash to pay its debts?
HINT: ACID test ratio, average collection period (50% of sales are on credit)
Yes, the business appears to have enough cash to pay its debts based on the ACID test ratio calculation:
ACID Test Ratio = (Current Assets – Stock) / Current Liabilities = (110,000 – 10,000) / 50,000 = 2:1
Average Collection period
= Credit sales/Debtors
= 719 600/80 000 = 9 times
Average collection period
= 365/9 = 40.56 Days
The ACID test ratio is calculated to be 2:1, which means that for every 2 units of current assets available after excluding stock, there is 1 unit of current liabilities. This ratio indicates that the business has a comfortable margin of liquid assets to cover its short-term debts, which is considered a healthy financial position.
Additionally, the average collection period is approximately 40.56 days, which represents the average time it takes to collect payments from debtors. This information further supports the business’s ability to manage its short-term liquidity effectively.
4.4 Work out the short-term liquidity position of the business.
HINT: Current ratio.
Current Ratio = Current Assets / Current Liabilities
Given the information provided:
Current Assets:
Total Current Assets = R20,000 + R80,000 + R10,000 = R110,000
Current Liabilities (Creditors): R50,000
Now, calculate the current ratio:
Current Ratio = R110,000 / R50,000 Current Ratio = 2.2
4.5 Identify FIVE departments that have to be considered for the business to be
successful.
These departments play essential roles in the overall success and functioning of the business.
Purchasing Department:
Responsible for sourcing and procuring raw materials, supplies, and inventory required for production and operation.
Personnel Department:
Manages human resources, including recruitment, training, payroll, and employee relations, to ensure a skilled and motivated workforce.
Marketing Department:
Develops marketing strategies, conducts market research, and promotes the business to attract customers and create brand awareness.
Sales Department:
Focuses on selling products or services to customers, managing customer relationships, and achieving sales targets.
Information Technology Department:
Handles technology infrastructure, software systems, and data management, ensuring efficient operations and security of digital assets.
4.6 Identify FIVE aspects of operations management control and explain how
each would contribute to Linda’s business.
Operations management control is essential for the success of Linda’s business, ‘Craft for Africa.’ Here are five aspects of operations management control and how each would help Linda’s business succeed:
Scheduling:
Scheduling enables Linda to create a plan for her business activities, allocating resources and setting completion timelines. She can efficiently manage the production of wood frames, wire toys, African beads, and other craft items. This ensures that orders are fulfilled on time for the tourism industry and export market, enhancing customer satisfaction and reliability.
Planning of Activities and Control:
Proper planning involves making informed decisions about material procurement. Linda can decide what materials to purchase, how much to buy, and when to order. This ensures a steady supply of materials, prevents shortages, and optimizes inventory management, reducing production disruptions.
Quality Control:
Quality control is crucial to maintain the standard of craft items. Linda must perform quality checks at various stages of the production process to ensure that items meet or exceed quality standards. This consistency in quality builds a positive reputation, satisfies customers, and increases demand for her products.
Maintenance:
Regular maintenance of machinery, equipment, and processes is vital for preventing faults and breakdowns. In Linda’s business, it ensures that tools for crafting, such as saws and paint equipment, are in good working condition. This reduces downtime, increases productivity, and avoids costly disruptions.
Performance Management:
Performance management focuses on optimizing day-to-day operations. Linda can determine the most efficient work methods for her employees, monitor their performance, and evaluate the effectiveness of her production processes. By identifying areas for improvement, she can enhance productivity and maintain a competitive edge in the market.
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