An important aspect of business would be a mission and visionstatement, to explain further what this entails, I will clarify the differencebetween the two. They are often intertwined to accomplish a similar objective,however, they do have differences. A mission statement is an important andfundamental part of the startup of a business or a company, as it is thedefying feature of what the business represents and stands for. It explains ina concise and articulate manner portraying how the company intends to work throughto reach their goals. This could relate into forming daily objectives and.
Whilea vision statement represents where the company would see themselves after aprojected amount of time, as it would be set more in the future, and how thebusiness sees its upcoming success. This further elaborates what the companyaspires to be, how they intend to accomplish these goals, and how they intendto reach those achievements. Both, as previously stated, share similarities andare often used interchangeably, but there are differences, as previouslymentioned. In essence, a vision statement is what the company intends to be,and their future aspirations, while the mission statement would be a helpfuloutline, further detailing how the business intends to meet those goals. However,forming a mission and vision statement is a difficult task, and it usuallyinvolves the cooperation from everyone in the company, as it will represent thebusiness, and therefore, must portray the objective of said business at itsfinest. The management staff working to put this together must form corporatestrategies, aid fellow employees to define what would be ideal for betterperformance, and to set high working standards and finally, to frame a unifiedmindset in approaches to different sets of problems or obstacles.
When thisparticular task is done successfully, the mission and vision statement will bevery helpful in improving client to business relationships, as well as act as animportant public relations tool. An environmental scan is also a necessary tool for a business toproperly assess the area it functions in, to delve with more detail into thelaws and regulations, and to better evaluate potential opportunities or risksassociated with any atmosphere they may be in. The first step is for anemployer to gather information about the world in which it operates, includinginformation about the economy, government, laws and demographic factors such aspopulation size and distribution. (Society for human resource management)Another aspect, a business would have natural concerns over, would be potentialcompetition. This is necessary for the company to better gauge and to learnwhat possible opportunities are available as well as potential barriers anddifficulties that may be present. The next necessary feature toconsider is a competitive advantage, to further elaborate, a competitiveadvantage is when a business is capable of selling their products, or have theability to offer services at a lower price than their competitors, and thus,generating greater income and simultaneously, in essence, pushing out therivalry and creating an edge.
This would offer the business greater leverage togenerate larger profits from either sales or services. Another aspect I will detail furtheris market segmentation. This is a marketing strategy used by businesses to divideprospective buyers and clients, delving into their consumerism habits, to havea better measurement of what may be more attractive for their client base, andto further sum up, giving the company knowledge on what the common need is.
Market segmentation enables companies totarget different categories of consumers who perceive the fullvalue ofcertain products and services differently from one another. (Invsestipedia) To continue, one more important feature to the functionality of a businessis the financial analysis, as it helps gauge the company’s economic standpoint,to further determine whether it is solvent, liquid or financially capable to withholditself from a business perspective. In order to properly measure the finances,a financial analyst will look at fiscal documents, such as cash flow income, aswell as the balance sheet, as this will be helpful in determining the stabilityof the said company and whether they would have the monetary capacity to be capableof making investments. The last business aspect I will cover are internal controls and howthey correlate with the business, and its impact on it. An internal control is the process by whichmanagement structures an organization to provide assurance that an entityoperates effectively and efficiently, has a reliable financial reporting systemand complies with applicable laws and regulations. (Kendra James) Thepurpose of having internal controls is that it offers a form of reassurance forboth the employees and clientele base. This aids staff, as well as potentialpartners, understand better the mission and vision statements of the companyfor which they are part of, and to comprehend further the ideals and theobjectives of the said business. This in essence, offers reassurance forworkers, associates and customers to further promote security in the organizationthat they meet the standards that they promise and promote.