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Requisites Of Success in Business
The organization and management of business involves several problems. Every business enterprise seeks to achieve the objectives of survival and growth. In modern business; it has become very difficult to achieve these objectives due to the increasing pressure of environmental forces. In order to achieve its objective effectively and efficiently, a business enterprise must have at all times appropriate interaction with its environment.
The following factors provide the foundation for a successful business enterprise:
Clear-cut Objectives: The first essential of a successful enterprise is the establishment of definite and clear objectives. In addition to the overall objectives, specific objectives should be laid down in different functional areas of business on which the survival and growth of business depends.
Efficient business planning: Planning is an essential requisite for successful operations of a business enterprise. Planning enables the enterprise to meet contingencies of the future and thereby saves it from floundering. Planning is foreseeing and charting-out a future course of action.
Proper size, location and layout: The success of a business enterprise depends to a great extent on these factors. Optimum size results in the lowest average cost of operations per unit. Appropriate location helps the enterprise in securing the required raw materials, labor, power, markets etc., at minimum possible costs.
Sound organization: Organization is concerned with the division of work among the employees in such a way that they work with efficiency and coordination. A sound organization structure provides necessary framework for effective communication, teamwork and co-ordination.
Financial planning: Finance is the lifeblood of business .Therefore there should be a proper flow of finance at all times in a business enterprise. Adequate funds should be made available at the right time for long-term and short-term needs of business.
Marketing network: Production of goods and services is meaningless unless customers accept them at prices which yield reasonable profit to the enterprise. An efficient distribution network is required for this purpose.
Executive development: The continuity and growth of a business enterprise depends upon the availability of competent executives at all times. The executive team of the enterprise is subject to constant change on account of retirement, death, resignation, etc.
Dynamic management: The efficient utilization of resources and therefore, the success of an organization depend upon the caliber and philosophy of its management.
Human relations: Teamwork, a sense of belonging and high morale are the hall marks of sound human relations in business. When relations between the members of an organization are good, change and development become easier.
Research and development: Technology and customers satisfaction are important factors influencing the success of a business enterprise. In order to develop new and more efficient techniques and processes of production, research and development is required.