Pressure Points related to Performance
Internal competition, decentralization and several elements increase the risk of the company; risk exposure calculator calculates the risk of the company by considering the pressure points related with the performance, information management and growth of the company (Forouzanfar & et al. 2015). The present study is related with the analysis of risk of the company named as Property Millionaire. The company provides the range of real estate seminar and ongoing mentoring services. Further, the risk analysis conducted in the study is based on the risk exposure calculator, which is determined by the pressure point due to growth, culture and information management.
Pressure for performance
Rapidly developing businesses are frequently strong and exhilarating surroundings. Growing companies draw the attention of workers and the capital markets similar (Modarres, 2016). Further persons who deliver are pleased with their work. On the other hand, the persons who are unsuccessful in fulfilling expectations do not split in the reward. Consequently, after that, that expansion is able to direct towards the first pressure point that is pressures due to performance (Yildirim and Ivrendi, 2016).
If the performance measure guided in a proper manner, then it may lead to excellent monetary performance, modernism and capital creativity. Subordinate may fear that unsuccessful to fulfil performance prospect will surely put at risk their position or recompense (Chavez, & et.al2016). Consequently, they might sense strong pressure towards achieving something at all costs, yet in case their proceedings violate moral bounds or else contravene company strategy.
The score of this point can be determined by an objective set by the management with the small and no inputs by subordinates (Ward, 2016). Pressure on that point is habitually high when the capital markets grasp elevated expectations for monetary results and dealer offer up the stock to establish it.
Further, the second growth-related pressure point is the speed of development in actions. Another time, it is excellent news and a bad news story. Innovative manufacture services, allocation channels, and product lines are merely essential when trade is thriving (Bravo-Biosca, Criscuolo, and Menon, 2016). On the other hand, with no careful preparation and sharing of resources, the infrastructure to hold up speedy development might rapidly turn out to be overfull, ensuing in sacrifices in excellence (Windolf, 2018). Moreover, while calculating the pressure on this point, the executive must ask themselves, is process growing faster than their capability to spend in more populace and expertise.
Pressure Points related to Growth
An elevated level of rawness between workers and employees produce the third growth-related pressure point. While numerous individuals approach on board rapidly, executives from time to time give up backdrop checks or lower performance principles as well as instructive experience (Prokhorova &et.al 2016). Consequently, a new worker frequently not has sufficient ability or does not completely recognize their work. The argument for this kind of situation is called as an array of small and large error, as of sales clerks who mislead significant customers to factory staff who mismanage hazardous tools (Ward, 2016). From miserable clientele to scarce staff, the threat pretended by expert employees can be uncomforting. Further, scheming the pressure on this point, then, the executive may ask themselves, what proportion of our work is filled with beginners as the significant portion is covered by individuals with less than 12 months of practice within the corporation. Inexperience comes up with the extra threat, mainly in formless and high-innovation trade (Picken, 2017) .
The property millionaire because of the fast growth requires the several consultants. The company lower dawn their employment standard and hire many new employees who have no prior experience in sales, which is risky for the company by which the performance of the company reduced.
Rewards for entrepreneurial risk-taking
For running the business in the long run period, it is essential for the business to take the risk which leads towards the uniqueness and innovation of the product (Bari, 2018). The success of the business motivates to people to take the higher risk due to high confidence. However, it ultimately leads to loss of money. The environment in which the business carried out its activity is the important factor for determining the higher and lower score, due to rewards for entrepreneurial risk-taking (Millsteed, Redmond, and Walker, 2016). Further, the increasing rate of failed services or products and unsuccessful deals is also another important factor in determining the score (Schwienbacher, 2018).
In the present study related to the Property Millionaires, the manner in which seminars are held or conducted is not good. Therefore the seminar failed many times. The client is not satisfied with the seminar because they feel that they interact with the company until they sign up for the seminar after this consultant fails to respond on their phone calls in a proper manner.
It is other pressure points due to culture, which is connected with the flows of information specifically, as it runs upwards. Executives of the prosperous organizations generally deny to the bad news, for their safeguard (Wiklund, Yu, and Patzelt, 2018). The managers of the company want to be enclosed by the people who make the appreciation of their pride in the business and show their determination to about achieving the goals and objectives of the company. The score of this pressure point depends on the question raised by the management from them. They must ask themselves how much bad news they actually hear (Chen, Crossland, and Luo, 2015).
Pressure Points related to Culture
In the case of the property millionaire, the activities of the regional managers are not sensible. For sharing the information, there are not systematic channels either between themselves or with the senior managers. The senior managers do not want to hear the bad news. They do not understand the complex language of the consultation process and left their consultant alone.
Internal competition is the last volatile element of the cultural pressure point. In the many organizations, manager assumes that for achieving the promotion and rewards them in the horse race and competition (Cluley, 2016). However, it may lead to accidental adverse impact. With this respect, not sharing of the information with each other is one of the common side effects (Wynarczyk &et.al 2016). Employees of the company feel the pressure that internal competition may risky to the assets of the business, the reputation of the company, and probable credit loss in their challenge to increase the short term performance (Belenzon, and Tsolmon, 2016). In this type of situation, risk and rewards are not consistently share. The score of this point depends on how the companies are directed the performance review in their organization; the employees are compared with their own merits or with each other. If the answer is positive, then the company obtains the higher score.
Currently, Property millionaire is facing high competition in the market. The regional manager gives the special treatment to the high performing consultant in terms of the royalty. This treatment leads the reduction in the performance by the other consultant, as they feel demotivated.
Transaction complexity and velocity
Classy products, the innovation in the manner of providing the services to the client, uniqueness in making the new product are some factors on which the success of the business depends. All these factors lead to the complexity of the transactions (Sadgrove, 2016). Further, the complexity can be understood by only some people, with respect to the risk and the manner of controlling the risk. Success can also mean the growth in the volume and velocity of the transactions, information system generally overburdened by this (Park, and Roome, 2017). Therefore the manager is unable to identify the important information which is essential for the growth of the company. The score of this point can be determined by computing the velocity, volume and complexity of the transaction of the previous year with the current year, by which they know about whether this aspect increased or decreased in the current year. However, it is very difficult to compute all the information precisely (Klonowski, 2018).
Pressure Points related to Information Management
The success of the business makes the pressure on the internal reporting system which computes the significant performance measure such as quality of product or service, order backlogs, return on capital employed, same-store sales. In the adverse situation, manager generally places interest over such facts as they want to know the reason for their issues (Skogen & et al. 2016). Further, it is not generally considered by the manager in the positive time of the company; it is because of the two reasons. The first one is the nature of the human being, and the other one is that this system is not sufficient and latest for the rapid growth of the company (Mugambi, &et.al 2018).
This score is ascertained by the feeling of pressure. If the manager spends a lot of time collecting the right data at the right time, then the score is high.
The degree of decentralization is the last pressure point due to information management. At the time of expansion of the company, generally, the lower management has independence for the decision making (Madanoglu, Altinay, and Wang, 2016). Actually, the top management of the company mainly concentrates on the significant issues of the company such as building the strategies, setting the goals and objectives, allocation of the resources, review the performance. Generally, decentralization gives many benefits. The lower management can quickly give the response to the demand of the market; they are permits for showing their creativity and innovation technique by which their motivation and satisfaction enhances (Petkovska, 2015). However, the decentralization has many negative impacts also such as the lower manager is not fully aware by the strategic planning of the company, by which they may take high risk. Further, if the companies have not a proper system of communication of the information, then there is a possibility of the risk. The company gets the high score if the senior manager of the company receives the information too late.
In the case of the Property Millionaire, the senior management team is not work in a group, but they are given a great level of independence. All team members develop their seminar content independently, and they return to the group only when they create substantial value. Along with this the communication channel of the company is also not proper.
On the basis of the above analysis, the risk exposure calculator of Property Millionaire is shown below –
Conclusion
Growth
|
Pressure for performance |
Rate of expansion |
The inexperience of key employees |
Score |
|
5 |
3 |
5 |
13 |
Culture
|
The reward for entrepreneurial risk-taking |
Executive resistance to bad news |
Level of internal competition |
Score |
|
4 |
5 |
4 |
13 |
Information management
|
Transaction complexity and velocity |
Gaps in diagnostic performance |
Degree of decentralization |
score |
|
2 |
3 |
5 |
10 |
Total score of property millionaire = 36
Conclusion
On the basis of the above analysis, it has been concluded that a total score of property millionaire is 36, which is regarded as very high. The company should make various strategies on the basis of the above matrix and implement the same by considering the capability and knowledge of the employees.
References
Bari, A.F.H., 2018. The factors affecting the service quality management of Grow N Excel. Sage.
Belenzon, S. and Tsolmon, U., 2016. Market frictions and the competitive advantage of internal labour markets. Strategic Management Journal, 37(7), pp.1280-1303.
Bravo-Biosca, A., Criscuolo, C. and Menon, C., 2016. What drives the dynamics of business growth?. Economic Policy, 31(88), pp.703-742.
Chavez, R., Yu, W., Feng, M. and Weingarten, F., 2016. The effect of customer?centric green supply chain management on operational performance and customer satisfaction. Business Strategy and the Environment, 25(3), pp.205-220.
Chen, G., Crossland, C. and Luo, S., 2015. Making the same mistake all over again: CEO overconfidence and corporate resistance to corrective feedback. Strategic Management Journal, 36(10), pp.1513-1535.
Cluley, R., 2016. The depiction of marketing and marketers in the news media. European Journal of Marketing, 50(5/6), pp.752-769.
Forouzanfar, M.H., Afshin, A., Alexander, L.T., Anderson, H.R., Bhutta, Z.A., Biryukov, S., Brauer, M., Burnett, R., Cercy, K., Charlson, F.J. and Cohen, A.J., 2016. Global, regional, and national comparative risk assessment of 79 behavioural, environmental and occupational, and metabolic risks or clusters of risks, 1990–2015: a systematic analysis for the Global Burden of Disease Study 2015. The Lancet, 388(10053), pp.1659-1724.
Klonowski, D., 2018. Deal Completion: Inequitable Agreements in Venture Capital Contracting. In The Venture Capital Deformation (pp. 183-219). Palgrave Macmillan, Cham.
Madanoglu, M., Altinay, L. and Wang, X.L., 2016. Disentangling the effect of family involvement on innovativeness and risk taking: The role of decentralization. Journal of Business Research, 69(5), pp.1796-1800.
Millsteed, J., Redmond, J. and Walker, E.A., 2016. Small business ownership for occupational therapists: Key factors for success. International Journal of Entrepreneurship and Small Business, 27(4), pp.425-440.
Modarres, M., 2016. Risk analysis in engineering: techniques, tools, and trends. CRC press.
Mugambi, M.L., Peter, T., Martins, S.F. and Giachetti, C., 2018. How to implement new diagnostic products in low-resource settings: an end-to-end framework. BMJ global health, 3(6), p.e000914.
Park, J. and Roome, N., 2017. The ecology of the new economy: sustainable transformation of global information, communications and electronics industries. Routledge.
Petkovska, T., 2015. THE ROLE AND IMPORTANCE OF INNOVATION IN BUSINESS OF SMALL AND MEDIUM ENTERPRISES. Economic Development/Ekonomiski Razvoj, 17.
Picken, J.C., 2017. From startup to the scalable enterprise: Laying the foundation. Business Horizons, 60(5), pp.587-595.
Prokhorova, V.V., Klochko, E.N., Kolomyts, O.N. and Gladilin, A.V., 2016. Prospects of the agro-industrial complex development: economic diversification, business development, mono-industry town strengthening and expansion. International review of management and marketing, 6(6S), pp.159-164.
Ragulina, Y.V., Stroiteleva, E.V. and Miller, A.I., 2015. Modelling of integration processes in the business structures. Modern Applied Science, 9(3), p.145.
Sadgrove, K., 2016. The complete guide to business risk management. Routledge.
Schwienbacher, A., 2018. Entrepreneurial risk-taking in crowdfunding campaigns. Small Business Economics, 51(4), pp.843-859.
Skogen, K., Schulz, A., Dormagen, J.B., Ganeshan, B., Helseth, E. and Server, A., 2016. Diagnostic performance of texture analysis on MRI in grading cerebral gliomas. European journal of radiology, 85(4), pp.824-829.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth, profitability, and family leadership. Springer.
Wiklund, J., Yu, W. and Patzelt, H., 2018. Impulsivity and entrepreneurial action. Academy of Management Perspectives, 32(3), pp.379-403.
Windolf, P., 2018. Expansion and structural change. Routledge.
Wynarczyk, P., Watson, R., Storey, D.J., Short, H. and Keasey, K., 2016. Managerial labour markets in small and medium-sized enterprises. Routledge.
Yildirim, Z. and Ivrendi, M., 2016. Exchange rate fluctuations and macroeconomic performance: Evidence from four fast-growing emerging economies. Journal of Economic Studies, 43(5), pp.678-698.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
