Analysis of the key management challenges
Entrepreneurship refers to the willingness and capability to create, arrange, and manage a business project along with the risk involved and to make a profit (Barringer, 2012). In other words, entrepreneurship refers to the act of developing a business while establishing and scaling it to produce advantages. This report explains the management and entrepreneurship of TXO System Company in the United Kingdom. TXO System provides professional telecoms asset management services and consultancy. The company specializes in providing technically sound and dedicated project management of telecom network infrastructure asset recovery solutions for customers from a variety of disciplines including telecommunications, data centers, oil and gas, government and education. The company was established in 2005 and operating on five continents. The company aims that all technology and telecoms network assets are responsibly and sustainably acquired, reused, resold and recycled in order to contribute to a fair circular economy and a more sustainable environment for all. The main purpose of this report is to focus on the skill development and attributes that empower the entrepreneurs to the realization of opportunity and find out the best way to operate existing hierarchies.
According to Smith et al., (2012), entrepreneurs faced many issues in the present ultra-competitive business world. There are numerous issues that are experienced by entrepreneurs throughout the course of handling their business. According to Schaper et al. (2014), all entrepreneurs should be prepared for resolving the issues that they face in order to regulate their business activities. The key management challenges faced by TXO System Company are described as follows:
Financing: According to Irwin and Scott (2010), experienced entrepreneurs do not have it simple with regards to funding a new business, but they do not have a few benefits over newcomers. TXO System Company is utilized to long, industry-principles pay terms. The telecom organizations are in development mode, however, few out of every odd organization has the benefits or budgetary to secure conventional financing through a bank. The association can make venture contacts and customers connections basic to give them a leg up in other efforts.
Cash flow management: According to Burns (2010), cash flow is necessary to small business survival. For small ventures, financial issues in their numerous forms are the main concern for the company which includes customer stalling payments, unexpected outgoings, and the bills which are due to be paid. There are some attempted and cash management tools that can help the TXO System company to handle cash flow, multi-talented apps that can make budgets, estimate valued added tax, automate bill payment, aware company to unexpected outgoings and give a free credit rating. This challenge also provides an opportunity for business as it can use online invoices and prompting which is a strong source to convince reluctant customers to part with financial terms.
Evaluation of issues in two major business areas
Finding and retaining profitable customers: There is a business maxim that requires customers with an issue which only organization can solve, and for this purpose, the company has to determine that unique selling point and convey it clearly to their customers. According to Franco et al. (2014), TXO System can begin with investigating the customer base and determining the features of the existing customer base. The company can make sure to incorporate into this examination any costs related to specific consumers so that it can help the business to have a clear perspective of their net value to the business. The company can concentrate on the new strategies which are made in order to attract the customers from the most productive segment, and carefully distinguishing the offer to make sure that it appeals directly to this kind of customer.
Hiring the right people and outsourcing: According to Stephens (2013), a small-medium sized business may not need full-time human resource or recruiting staff, but in the growth peak periods, recruiting the suitable candidate and finding the suitable skills and competencies is most important foe the sustainable future of business.
TXO System can bring an expert with the skill to recruit the desirable candidate for organization and it would be a favorable investment. Once, the desirable candidate is selected, it is essential for the company to ensure that representatives are happy and perform in an effective way and being approachable in order to achieve the business objectives efficiently.
Regulation and compliance: According to Onetti et al. (2012), as business sectors and innovations move, it is essential for the business to comply up with the rules and regulations. TXO System can create much more sense to obtain an expert to help with these areas rather than trying to comprehend the issues and the risk industry fines more terrible for rebelliousness.
Innovation: As technology change at a faster rate, it is necessary for organizations to develop more innovative technologies in order to attract the customers towards their product (Kshetri, 2013). Consultants can be essential for incorporate new advancements, specifically mobile, application development and cloud computing.
Customer service: According to Munusamy et al. (2010), in the world of instant gratification, consumers require fast customer service thats can take to the online to share their views regarding the products and services of the organization. The company can find several ways to the customer service by creating innovative products and providing efficient customer service to the customers.
According to Duval?Couetil (2013), the evaluation of the key issues surrounding entrepreneurship in TXO System is discussed in the two major areas is explained as follows:
Social Entrepreneurship: Social entrepreneurship refers to the techniques used by the organizations and start-up companies so as to implement activities which support the social, cultural, ethical and environmental issues currently present in the environment. Social entrepreneurship is an organization might relate to many companies having different shape, size, objectives, vision, programs etc. Further it shall also be noted that for profit earning entrepreneur they have different ways of initiating their activities; also their aims ad target are different as compared to other organization (Defourny, and Nyssens 2010). Profit generation, increase in sales of the company are the basic motive of profit making organizations. Apart from that social entrepreneurship includes two types of organizations like not for profit organizations and social organizations working with a motive to generate positive returns in the society. Further it shall also be noted that social entrepreneurship is not actually different from entrepreneurship but just specifically include an aspect of entrepreneurship which shall be complied by organizations (Fini, et. al., 2012). Implementation of business activities, while considering the culture, ethnicity and environmental objectives of the society concludes the activities of social entrepreneurship in brief. Further relating it to the company TXO Systems, the company believes that sustainability can be only achieved by becoming successfully capable to implement the social and environmental activities. The corporate social responsibility of company technique concentrates on the areas that are most imperative to the business and partners. These are the individual, sustainability, quality, governance and morals, the environment, society and charities and volunteering (Gilmore 2011). Thus, the below mentioned aspects tells about the major challenges social entrepreneurship and the strategies made by TXO System in order to overcome these challenges:
Comply with corporate social responsibilities of the company: This is one of the major critical concerns with the organizations now days. Corporate social responsibility is the obligations of the organization to initiate activities to help the environment and society to move in a better than current. Further the organizations have now days started ignoring their corporate responsibilities with regards to the companies and this aspect is reducing the state of the nature and harming the society as well. Thus, the companies shall compensate for the activities which they implement in the organization by comply with their social responsibilities (Gundry, et. al., 2011). Further the organization TXO Systems believes that socially and environmentally responsible is not only good for people and the planet, but it is also essential to the long term sustainability of the business. So the corporate social responsibility of the company focuses on the areas like quality, governance, sustainability and keeping the stakeholders interested. The ethics of the company saying that they need to initiate their telecom services in the market without taking bribes or harming the interest of any stakeholder (Irwin, et. al., 2010).
Upgraded technological implementation: Being an entrepreneur it is the duty of the managers to initiate activities uses innovative technology in their process. In the fast growing world implementation of technology is an important aspect which shall be looked after by all the organizations working in global context. Technological implementation is one of the most important aspects which help an organization to achieve sustainability in their activities (Miller, Wesley, and Williams 2012). Also looking at the telecom industry it shall be noted that use of upgraded versions of technology will help the organization to achieve success along with which it will increase the satisfaction level of stakeholders of the company. With respect to technology it shall be noted that TXO Systems implements techniques in their business process which increases the interest of stakeholders in the company. The company has also received certification for providing standard services to the people. Thus, it shall be concluded that the organization not only works to earn profit but it always oks for the ways to increase the satisfaction level of customer for which they implement such techniques in the business.
Sustainability: According to Nga et al. (2010), Companies frequently utilize a triple bottom line that assesses the impact of the business on individual, environment and for benefits. TXO System gives fully examined, sustainable re-use and recycling programs that provide the entire lifecycle management for telecommunications and data devices:
- Each year the company recycling exercises keep over 2500 tonnes of waste material out of the landfill.
- Presently, the company recycles over 98 percent of all materials recovered with an objective of accomplishing a target of 99 percent.
- The company offers their customers with financial and recycling reports, funded by a fully examined trail for all parts received and contributing to their corporate responsibility programs (Pacheco, Dean, and Payne 2010).
Merger and acquisitions: According to Fäh (2016), merger and acquisition is a general terms which refers to the combination of organizations or resources. Merger and acquisition can encompasses different kinds of transactions, such as merger, consolidation, acquisition, tender offers, purchase of resources and administration acquisitions. The term merger and acquisition also implies to the division of budgetary institutions that deal with mergers and acquisitions.Within any size merger or acquisition, there is always the risk of failing coordinate both the organizations. Some of the main merger and acquisition challenges for TXO System Company and how the company deals with these issues are explained as follows (Madhok and Keyhani, 2012):
Organization culture: Organization culture is basically the qualities, values, or more simply, the general way things are done within the specific organization. According to Hitt et al. (2011), organization culture lays on the recognition that cultures us a historically based, change-resistant, a profound social framework which supports all companies techniques. Merger and Acquisition ordinarily happen due to business and financial rationale add up, but unsuccessful to understand the cultural inference that may occur. It is difficult for a merged company to maintain the culture of the previous organization and the reason is that employees changing their values and convictions in the long run. TXO System is focused on providing a fair working culture and comprehensive empowering all workers to create their different contributions to the advantage of the customers as well as business. The company is determined to confirm that business enhances this similar openness to both the providers and stakeholders. The company provides various services to their customers such as responsibly and reasonably procure, resell and recycle innovations and telecom network resources, permitting them to produce incomes, decrease expenses and accomplish corporate responsibility goals.
Communication challenges: Communication challenge turned out as one of the top element that caused companies strategies to unsuccessful. Communicating with workers, enabling them and developing a culture for them in order to thrive are all basic parts of integration (Marks and Mirvis, 2010). When mergers and acquisition happen, representatives and administration become ineffective. Fear and lack of answers discourage senior administration from preventing the data that workers require to divert their actions in the merged organization. TXO System uses innovative technologies which make their communication process with customers and suppliers simple.
Employee retention: During mergers and acquisition, employee retention can be a major challenge or threat to a business. Inherently, many mergers and acquisition deals have a retention problem, which comes from the negative attitudes experienced by workers. This can incorporate uncertainty about the future of the company’s course, job security, the absence of leadership credibility and feeling of confusion due to the absence of communication. As a result, representatives lose confidence in their company and feel deceived by their leadership. According to Marks and Mirvis (2011), during the employee retention process, it is necessary to keep employee’s turnover low because business progression is vital to understanding the advantages of the merger. TXO System is considered as an equal opportunity employer for their employees. In order to ensure consistency with the relevant legislation and codes of training, company focus on ensure that all candidates are employed on the premise of capacity and the demands of the job. The main objective of the company is to offer the opportunities which will enhance the skill of candidate personally and professionally and train employees with a sense of responsibility. The company also provides all the internal training and practical support which enable employees to perform their best.
The below mentioned are the recommendations with which TXO Systems shall embrace the potential responsibilities by social entrepreneurship and merger procedures.
- Risk Assessment Plan: Opportunities in the organization can only be embraced when the company actually knows the areas of risk which they need to focus. So, the company TXO shall initiate a risk assessment plan which shall calculate the risk present in the company along with contingent risk which the company can face by initiating any particular activity. So, this plan will mitigate the risk and help the company to implement their activities without any hindrance and increase the satisfaction level of customers as well (Duval?Couetil 2013).
- Disclaimer of quality standards and schemes used by organization: Issuance of information about the company’s merger and acquisition, quality standards etc. will help them to gain support of customers and stakeholders as well. As if the stakeholder would know about the activities of the company which they are going to initiate in advance, then the company would automatically get their support and acceptance as well. Further if all such information is displayed on website of the company then will provide an opportunity to the customer to compare and choose the company as well. This will automatically appreciate the goodwill of the company.
- Becoming culturally viable:As the company is aiming to expand their business so they shall focus on accepting cultures and traditions of different countries as well. This aspect will help the company to retain the customers by providing them familiar environment at workplace (Irwin, and Scott 2010).
As discussed above entrepreneurship refers to the process of initiating business activities in such a way the identification is created in the market along with increase in satisfaction level of customers as well. In my personal opinion entrepreneurship taught me many aspects which I’m sure will help to gain to success in my personal along with professional life. Initially talking about the way to do things differently, entrepreneurship motivates the entrepreneur to initiate new and innovative ways to carry out regular business functions. Similar, I learned to implement my regular day to day activities in such a way that I get appreciation in every work which I do and people can easily identify my work from a group. Further entrepreneurship motivates the leadership skills in a person. Before having sense of entrepreneurship, I was a person with no different identification or personal opinion. But now with the initiation of this process, my mind is more open to different activities happening around me and I have a word to say in it as well. People listening to me and understanding me is my biggest achievement with this course.
Further looking at social entrepreneurship, I came to know about a different phase of entrepreneurship. Being socially connected to the environment and helping others also helps an entrepreneur to understand the need and requirement of the people preset in the environment and act accordingly. Further I realized that initiating activities for the betterment of the community on a whole is an important part of business cycle. This might not bring profits to the company but it increase the satisfaction level of stakeholders which improve the goodwill of the company. This knowledge will help to attain success in my future courses and become a successful entrepreneur as well. Further the facts shall be noted that entrepreneurship is an important course which will help to see the opportunities in life, address them and embrace them as well. Thus, it will also help to gain success by looking innovatively at the aspect which is forgotten by all. Apart from that this course also helped to analyze the dos and don’ts of a business. IT helped to gain knowledge about the activities which I shall initiate in my business to gain success and activities which I shall stop to attain stability. Also entrepreneurship helped to analyze and evaluate the risk present in the business process and personal life and how to mitigate them as well. Risk assessment saved me many times from facing failure and now it will help to save my business as an entrepreneur as well. Lastly, entrepreneurship also taught me he important of maintain long lasting relationship with people. Thus, in the limelight of above mentioned events it shall be noted that, entrepreneurships is an important teaching which will always support me help me in overcoming problems in life considering both personal as well as professional perspective.
Conclusion
From this report, it has been concluded that entrepreneurship is the act of making a business or organizations while building and scaling it to produce a benefit. However, business enterprise is also about changing the world by solving major issues. This report explains the TXO System entrepreneurship, a leading supplier of telecom network asset management in the United Kingdom. The report describes the major entrepreneurship challenges for organization and the various methods adopted by the company in order to overcome these challenges. These challenges provide an opportunity for the company to expand its entrepreneurship skills and competencies across the world. The study also assesses the company challenges in the two major areas, social entrepreneurship and merger, and acquisitions which enable the business to adopt various new technologies and methods in order to make their product and services more creative and productive. Finally, the report gives a recommendation for the future reference, so that business will enhance their knowledge and make their services and products more effective among customers.
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