Assignment Sample NX0473 Developing Global Management Competencies
Introduction
Global business has faced many issues and challenges at every step of operations. For this essay, self-employment is chosen as the sector of work. A small start-up is proposed in the product manufacturing industry where a number of daily usable products are produced and marketed all over the world. The start-up business is small at the initial stage.
However, there are many people in the business to help, fund, and support to make it a globally reachable business. Manufacturing daily goods include garments, kitchen utensils, cookware, table clothes, and so on. The business set-up is situated in the UK. The issues and challenges in this business are identified in this essay.
The issues and challenges come from different sections like marketing, promotion of products, management, target market, and target consumer base (Rahman et al., 2018).http://NX0473 Developing Global Management Competencies The issues and challenges in these sections are properly identified with a discussion of the probable solution to them.
Discussion
Self-employed professionals face a number of challenges in today’s business world. These people want to lead a free life by not doing a 9 to 5 job. However, the self-employed person never experiences an easy path to follow in achieving business goals. Most self-employed people take a lot of stress in starting a business. According to Khan, (2017), http://NX0473 Developing Global Management Competencies business goals and objectives are pointed out at first by the person and the resources are gathered. In self-employment, there is no scope for receiving huge funds from someone. There is no investor in the business, apparently.
The person goes through a lot of things that he or she has to control on his or her own. Management of a business is completely done by the person (Khan, 2017).http://NX0473 Developing Global Management Competencies A self-employed person can establish a business on his own by managing the human source, taxation, etc. all by himself. In this case, the person is keen on establishing a daily usable product manufacturing plant and exporting goods outside the country. Many small business owners help each other in following the latest trends in self-employment businesses.
The market is served in a better way by these people as they are not dependent on large sectors or infrastructures to do promotion and marketing. They do marketing and promotion of the products on their own and try to face and overcome the challenges alone (Phillips and McKeown, 2016).http://NX0473 Developing Global Management Competencies The issues and challenges that the self-employed person faces in the UK market are as follows;
No safety net: as self-employed people have no strict financial support and no constant investor they should always be prepared for any kind of financial crisis. Small business owners tend to be less prepared for this type of crisis. From the research paper of Ullah et al., (2018),http://NX0473 Developing Global Management Competencies there is 48 percent of small business owners are always unprepared for financial crises. 39% of them do not go in the long run in carrying out the business.
It is very important to establish a safety net for maintaining health care, tax payment, etc by keeping emergency savings. There should be strategic planning to mitigate financial risks in the organization. A proper project plan should be done where the budget is discussed according to resource availability and market trends. Self-employed individuals should save for their retirement period as well. By the age of 50, they may face health issues and low tax problems for which they need life insurance (Caven and Nachmias, 2017). http://NX0473 Developing Global Management Competencies
Self-taught financial management: The UK market is gradually changing in developing new market trends. In this situation, the self-employed person has his own way of handling the financial part of the business (Phillips and McKeown, 2016). http://NX0473 Developing Global Management CompetenciesAccording to Baker, the financial habits that are followed by the self-employed person are as follows;
- Regular reviewing of finance and budget
- Saving appropriate taxes amount and reducing debts for the company.
- Paying a salary to him from the business and this amount should be fixed.
- He should establish an optimal business structure
- There should be money kept ready for liability and taxes
- Maximization of the deductions
In the case of small businesses, the person should employ his own financial management plans. The final task is done based on his own financial management schedule. This kind of business is independent of any kind of financial helps from banks (Caven and Nachmias, 2017).http://NX0473 Developing Global Management Competencies
Self-dependent approach: self-employed people are always ready to think differently. Their approaches are new and unique. They have the ability to perform business by themselves. However, they are not always successful in this venture. They face financial and managerial problems in running the business by a loss of efficiency and expertise.
They do not afford to hire consultants or experts for the business. Self-employed people also face the necessity of unique knowledge to run the business that they do not get all the time. There are critical areas in business management where knowledge gaps are noticed (Igwe et al., 2018).http://NX0473 Developing Global Management Competencies
Selling their products and services: This event is the most challenging part of self-employment. According to Igwe et al., (2018),http://NX0473 Developing Global Management Competencies everyone wants to approach the market for selling their products and services to the target market. They try to increase their product reach by targeting potential consumers. These people are independent professionals with risk management abilities.
However, without identifying the risk properly they cannot mitigate it effectively. They lack qualified professionals in selling products and services. 51% of business owners are always focused on selling their products and services to random markets. In this case, the UK market analysis should be done responsibly to manage consumer records. It is important to evaluate the needs of the consumers in the UK market.
The people in the market should know about their products and services and use their products. according to Ahmad and Muhammad, (2016), http://NX0473 Developing Global Management Competenciesa research article says that a good product review can only engage the company in making new products and launching new services. The company always faces tension between the different types of people they face in the market. Small businesses should focus on their existing clients in the UK market. In the other case, there is a need of soliciting referrals to increase brand name in the global market.
Many small businesses have access to large consumer bases all over the world. This is quite challenging for the company to cope up with the large consumer base being a small infrastructure. There is always a financial threat noticed in small businesses when they try to expand globally. Even in the local market, they face a number of financial risks in selling their products and services. There is huge competition in the UK market for these small businesses to run (Igwe et al., 2018).http://NX0473 Developing Global Management Competencies
Risk in human power: small business owners are always prone to risk in various fields. The future of the company largely depends on human power. Without a good budget, it is not possible for the company to gather human resources. Manpower is not always easy to implement in a small business due to self-employed owners.
There is no fixed fund for recruiting more people to the company. As a small infrastructure, the company is always looking for free favors from investors. There is no fixed fundraiser for this company. Every small company is focused on making financial stability for them in the potential market (Ahmad and Muhammad 2016).http://NX0473 Developing Global Management Competencies
Risk in quality management: It is very important to manage the product quality to promote it well in the global market as well as the local market. On the other hand, quality products attract more customers in buying products and trusting the company. Every company looks forward to carrying out a proper product plan for the company (Igwe et al., 2018).http://NX0473 Developing Global Management Competencies Every manufacturing plant has a quality management risk that needs to be solved appropriately.
As the company produces daily usable products it is important for them to analyze the market trends effectively to manage quality. Quality management is done by proper risk assessment before the launching of the product. For self-employed people in the UK, it is evident that quality lacks in products and services as they are not managed for a long time and the product test is not done before launching (Ahmad and Muhammad 2016). http://NX0473 Developing Global Management CompetenciesA proper business plan should be introduced in the company to overcome these challenges.
The challenges also include management risks that have a number of negative impacts on the company. For self-employed persons, it is important to manage the company’s consumer base. The issues and challenges regarding this fact should be mitigated by planning the risk mitigation assessments. Many theories came to light that supports the risk mitigation necessity of the company (Igwe et al., 2018).http://NX0473 Developing Global Management Competencies
The professional sector is always ready to take on challenges and solve issues efficiently. However, it is not always possible for them due to a lack of financial and human resources (Igwe et al., 2018).http://NX0473 Developing Global Management Competencies
Conclusion
The essay discusses the risks and difficulties in the contemporary self-employed business in the context of the UK market. The challenges are discussed with the help of professional and academic literature for the business. The challenges are common in self-employed small businesses. However, risk mitigation is also discussed for each case.
1. Reflective statement
I have discussed the challenges and issues faced by me as self-employed personnel. I have decided to identify the challenges properly in a better way to carry out a risk mitigation plan if needed. I have to solve these issues and challenges effectively. I have checked the issues and challenges properly while discussing the ideas with other businessmen.
Everyone made me aware of the issues from the very beginning. I have gained a lot of knowledge through identifying and discussing the challenges. I have used relevant literature to discuss the issues. However, I faced problems while carrying out the project as well. In my future career, I have set up a few goals that include risk mitigation in the first position.
I have to learn how to mitigate risk effectively to save my business from going down. I have viewed many practical examples of this profession and business field to gain ideas about real-time challenges. It is worthy for my learning of business courses. It is important to identify the right process for doing business for me. On the other hand, the evidence-based support of literature is used by me to analyze the depth of the problem (Igwe et al., 2018).http://NX0473 Developing Global Management Competencies
I have summarized my strengths and weaknesses in this field to discuss what I have learned. The strengths are that I have gained knowledge of the business professions in a better way. I have a complete idea of the potential risks and challenges that I am going to face if I take further interest in this field. I have attained knowledge about risk assessment, risk mitigation, and many more strategies to overcome these challenges.
On the other hand, I have also gained the idea of strategically solving business issues with the limited resource available. The human resource and the financial resource are very important parts of the business. I have derived from the essay that I have to focus on both parts equally to avoid bigger challenges in my career. My weaknesses are also generalized by me.
It includes lack of professionalism, lack of management in the workplace, lack of human resource management in the manufacturing plants, and many more like that. I have to gain knowledge of effective and real-time management to solve the challenges in the workplace.
I have to avoid loans and high-interest funds. I have to focus on saving for a long time to help my company stand during a loss or downfall. I have to get prepare for a recession which is common in the global market due to constant changes in the economy. I have had a bad experience with technology. I have to gain confidence in managing my career efficiently (Caven and Nachmias, 2017).http://NX0473 Developing Global Management Competencies
References
Ahmad, S.Z. and Muhammad Arif, A.M., 2016. Entrepreneurial characteristics, motives, and business challenges: Exploratory study of small-and medium-sized hotel businesses. International Journal of Hospitality & Tourism Administration, 17(3), pp.286-315.
Caven, V. and Nachmias, S. eds., 2017. Hidden inequalities in the workplace: A guide to the current challenges, issues and business solutions. Springer.
Igwe, P., Newbery, R. and Icha-Ituma, A., 2018. Entrepreneurship challenges and gender issues in the African informal rural economy. In Knowledge, Learning and Innovation (pp. 91-111). Springer, Cham.
Khan, N.A. ed., 2017. Challenges and Issues in Indian Fiscal Federalism. Springer.
Phillips, K. and McKeown, T., 2016. Understanding Self-Employment: The Opportunities and the Challenges for Good Policy. Government, SMEs and Entrepreneurship Development: Policy, Practice and Challenges, p.157.
Rahim, I.H.A., Fabeil, N.F. and Sung, T.P., 2017. Motivator and challenges of women entrepreneurs. Journal of Global Business and Social Entrepreneurship (GBSE), 1(3), p.115.
Rahman, M.Z., Ullah, F. and Thompson, P., 2018. Challenges and issues facing ethnic minority small business owners: The Scottish experience. The International Journal of Entrepreneurship and Innovation, 19(3), pp.177-193.
Ullah, F., Rahman, Z. and Thompson, P., 2018. Challenges and Issues facing Ethnic Minority Small Business Owners: The Scottish experience.
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