Why did we choose the « Small Organization Management » subject? 3
What is a Small organization? 5
Comparison between a small and a big company 7
Human Resources 7
3. Marketing 9
4. Logistics 10
Why did we choose the « Small Organization Management » subject?
First of all, when we saw the subjectslist, we directly oriented our choice to this particular subject. Easily understandable, by taking into account the 3 members of our team, we all have been involved into some students associations and even in small companies for one of us. Two of us were part of the student office last year and regarding the BDE budget, this association of 12 members is managed as a small business with a stricthierarchical organization which we ran for a year.
Moreover, some of us have ran 2 others associations and created one small company within the 3 last years which were composed of less than 10 people each.
By running those organizations, we have been able to partially perceive how to manage small organizations and we wanted to get more into the subject so that we could totally understand it.
Inour mind, we think of finishing our studies by working in small businesses to be more independent and maybe to evoluate in an easier way because we all enjoyed our work time into those businesses in which we created great things, generated money, and worked in a really motivating atmosphere.
A small business can be started at a very low cost and on a part-time basis. Small business is also wellsuited to internet marketing because it can easily serve specialized niches, something that would have been more difficult prior to the internet revolution which began in the late 1990s. Adapting to change is crucial in business and particularly small business; not being tied to any bureaucratic inertia, it is typically easier to respond to the marketplace quickly. Small business proprietors tend tobe intimate with their customers and clients which results in greater accountability and maturity.
Independence is another advantage of owning a small business. One survey of small business owners showed that 38% of those who left their jobs at other companies said their main reason for leaving was that they wanted to be their own bosses. Freedom to operate independently is a reward for smallbusiness owners. In addition, many people desire to make their own decisions, take their own risks, and reap the rewards of their efforts. Small business owners have the satisfaction of making their own decisions within the constraints imposed by economic and other environmental factors. However, entrepreneurs have to work very long hours and understand that ultimately their customers are theirbosses.
Several organizations also provide help for the small business sector, such as the Internal Revenue Service's Small Business and Self-Employed One-Stop Resource.
Small businesses often face a variety of problems related to their size. A frequent cause of bankruptcy is undercapitalization. This is often a result of poor planning rather than economic conditions - it is common rule of thumbthat the entrepreneur should have access to a sum of money at least equal to the projected revenue for the first year of business in addition to his anticipated expenses. For example, if the prospective owner thinks that he will generate $100,000 in revenues in the first year with $150,000 in start-up expenses, then he should have no less than $250,000 available. Failure to provide this level offunding for the company could leave the owner liable for all of the company's debt should he end up in bankruptcy court, under the theory of undercapitalization.
In addition to ensuring that the business has enough capital, the small business owner must also be mindful of contribution margin (sales minus variable costs). To break even, the business must be able to reach a level of sales where the...