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Discuss how management activities can help Ruth improve the performance of the business - Leaving Cert Business - Question A - 2006
Question A
Discuss how management activities can help Ruth improve the performance of the business. (30 marks)
Worked Solution & Example Answer:Discuss how management activities can help Ruth improve the performance of the business - Leaving Cert Business - Question A - 2006
Step 1
Planning
Answer
Planning is essential for Ruth as it involves setting organizational goals and determining how to achieve them. By developing a clear mission statement, Ruth can outline her aim to become a market leader. Additionally, she should establish strategic and tactical plans to penetrate the market by 50% over the next five years, reducing ambiguity and providing direction for her team.
Step 2
Organising
Answer
Organising entails structuring the business effectively to achieve its objectives. Ruth should introduce clearly defined lines of responsibility, especially in areas like purchasing and sales/marketing. This structure will ensure that everyone understands their role, enhancing coordination and efficiency. Furthermore, a retraining program for existing staff can help realign their skills with the business goals.
Step 3
Controlling
Answer
Controlling involves monitoring performance and making adjustments as necessary. Ruth should implement systems for quality control and budgetary control to ensure that the business operates within its planned parameters. By regularly reviewing stock inventory and financial performance against established benchmarks, potential issues can be identified early, allowing for timely corrective actions.