UNIT BSBSMB405A: Monitor and Manage Small Business Operations

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MONTITOR AND MANAGE SMALL BUSINESS OPERATIONS

UNIT BSBSMB405A

This unit is concerned with the operation of the business and with implementing the business plan. The strategies involve monitoring,

managing and reviewing operational procedures.

KEY CONCEPTS Your operations plan

Using technology

Reaching your customers

Occupational health and safety

Staffing requirements

Production/provision scheduling

Maintenance plan

Action plan

External influences on business operations

Monitoring business performance

Sources of information

Quality assurance

Quality control

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We will now consider each of these applications of technology as they relate to small business in more detail, before narrowing our focus to the potential role that computers, and more particularly information technology, can play in the management and operations of an enterprise.

1. COMMUNICATION

Within a small business, the ability to effectively communicate with others within the enterprise, with clients, potential customers in the marketplace, suppliers, and with those providing specialist services such as accountants, solicitors, and bank personnel, is crucial to business success.

Enormous changes have occurred in the area of communications over the past decade, as a consequence of advances in both telecommunications and information technology. The result is more convenient, efficient, and faster interaction between all those involved in, and connected with, a small business enterprise.

SMALL BUSINESS ENTERPRISE

PRODUCTION

TELECOMMUNICATIONS

E-COMMERCERESEARCH AND DEVELOPMENT

OFFICE MANAGEMENT SYSTEMS

FIGURE 1: APPLICATIONS OF TECHNOLOGY TO SMALL BUSINESS

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The Web can be thought of as a gigantic library in cyberspace, housing the publications of government departments, educational institutions, companies, small businesses and individuals, available for access to anyone from anywhere in the world. These publications, or webpages, are actually electronic files, and they are stored on powerful computers or servers located throughout the world. When you access a particular webpage, the server sends the data you have requested to your computer via the Internet. The web browser software on your computer then interprets this data and displays the webpage on your screen.

SOFTWAREAn Internet browser package, such as Mozilla Firefox, Internet Explorer, or

Safari installed on the computer.

COMPUTERMay be a Windows compatible or Macintosh. For efficient performance, it should have at

least 32 megabytes of RAM (Random Access Memory) and a modem port.

MODEMA device which, when connected to the computer, translates signals between

computers across the telephone line. It can be either built into the computer (internal) or externally attached as a peripheral, either by

wires or wirelessly.

TELEPHONE LINEAn ordinary telephone line. However, it is important to remember that

if you are using your only phone line to connect to the Internet, you will not be able to receive any phone calls during that time, unless you have a

broadband connection.

INTERNET SERVICE PROVIDER (ISP)Provides customers with a connection to the Internet on a

user-pays basis, similar to having a telephone account. Shop around for price, service and reliability.

FIGURE 5: THE ESSENTIAL ELEMENTS REQUIRED FOR INTERNET ACCESS

‘SURF THE NET’

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Online sales and purchases

The buying and selling of goods and services online is one of the major facets of e-commerce. This means that the goods can be ordered from a website over the Internet, and paid for immediately with the use of a credit card number and identification.

Some websites have virtual ‘shopping carts’ that allow you to browse through an electronic catalogue, click on the items you wish to buy, and then add them together for purchase at the end of your Internet shopping. Your order is submitted to the vendor via email, the required amount is automatically deducted from your credit card, and the goods are delivered to your door.

To explore this process further, visit the Innovative Business Resources website at www.ibr.net.au, and click on the ‘Catalogue/Orders’.

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SOURCES OF INFORMATION RELEVANT TO YOUR INDUSTRY

Monitoring and evaluating business performance over time and in isolation, does not necessarily provide the most accurate view of the effectiveness and efficiency of your business operations. Comparing the performance of your business against other like businesses, and industry profiles, can assist you in interpreting your financial ratios and other performance indicators. It provides a more meaningful view of how successfully your business is operating. Such comparisons can highlight the strengths and weaknesses of your business, and set a realistic potential level of performance towards which you can strive. It is also important for you to be aware of your competitors’ activities and general trends in your industry.

The major sources of information for interfirm comparisons and industry profile reports follow.

• Trade/Professional Associations: have been formed by most trades and professions at state and/or Australian levels for the maintenance of standards, provision of information, advisory services and the promotion of the trade or profession. They are useful sources of information because they comprise businesses which operate within the same industry. Most trade/professional associations have some form of periodic publication which may be informative regarding industry trends and competitors’ activities.

If you have not contacted a group that provides for the trade/profession in which you are interested, it would be worthwhile doing so as soon as possible. Some managers/owners would be members of several groups.

• Australian Bureau of Statistics: publish reports on a range of industries. These reports contain information regarding numbers of businesses, employment, wages and salaries, items of income and expense, net profit margins, and other data by size of business.

You should check the latest ABS Catalogue of Publications and Products to see if there is anything available on your type of industry. Contact details of central offices in the states and territories are provided in the Further Information section.

• The Financial Management Research Centre: undertakes surveys to provide comparisons between businesses in over 60 industry groups. Participants in the survey complete a confidential questionnaire on their trading results, and receive a report detailing their performance compared to the average results for similar businesses.

The Financial Management Research Centre also publishes Small Business Profiles which contains industry statistics and ratios, based on the surveys.

• Dun and Bradstreet: are an international firm specialising in credit reporting services. They have a Business Information Database which contains financial data on thousands of public and private Australian businesses. A further source of information is Dun’s Financial Profiles which incorporate 16 key ratios and comparisons with industry averages.

Dun and Bradstreet have offices in Perth, Brisbane, Adelaide, Sydney and Melbourne. Their Customer Service Centre number for all states is 13 23 33.

• Australian Government Publishing Service (AGPS): publishes information on behalf of all departments of the federal government. The AGPS produces weekly, monthly and annual listings of their publications, has bookshops in each capital city, and a mail order service. Contact details of bookshops in the capital cities are provided in the Further Information section.