Business Analysis Planning and Monitoring - Case Study Example

BUSINESS ANALYSIS CASE STUDY of the of the Table of Contents Business Analysis planning and monitoring 4 Plan business analysis approach 4 Stakeholder analysis 6 Plan business analysis activities and communication 7 Requirement management process 8 Business analysis performance 8 Elicitation 8 Preparing for elicitation 8 Conduct elicitation activity 9 Document elicitation results 9 Requirement analysis 12 Prioritizing requirements 12 Organizing requirements 13 Model requirements 13 Constraints 15 Solution assessment and validation 15 Assessment of proposed solution 15 Requirement allocation 17 Organizational readiness 17 Transitional requirements 17 Validation of proposed solution 18 Evaluation of solution performance 18 References 19 Business Analysis planning and monitoring Business analysis planning and monitoring process highlights the approach considered for evaluating the performance of a company (Dess & Lumpkin, 2009). In order to select an appropriate analysis method, the concerned authority needs to understand and assess various aspects associated with the process of decision making such as identification of stakeholders, current managerial and financial performance of the business, changes in the market and customer needs, gaps in the existing operational processes, etc (Hoskisson, 2009). The following segment will focus on designing the approach required for upgrading the performance and structure of Green Electrical Store. Plan business analysis approach The process of planning the analysis approach for Green Electrical Store will be designed based on the requirements and objectives of the business. It can be gathered from the given information about the company that their revenues have been on a downward trail since 2003. Apart from this, it was also observed that the resource base and the existing product segment of the company are not streamlined with the existing scenario of the electrical market. The target customer base has also limited the scope of business for Greens despite of having an established brand image and consumer brand perception (R. Gershon & R. A. Gershon, 2008). Considering these factors to be the key issues of the company, the business plan analysis approach has been set with three particular elements namely, decision analysis, structured walkthrough and process modeling. The designed analysis approach for Greens Electrical Store is as follows: Figure 1: Business planning analysis Approach (Source: Created by Author) The above given diagram reflects the business approach that is to be followed for analyzing the business plan of Greens Electrical Store. The analysis begins by observing the mission and vision of the company in order to set the direction of business development plan. The next step in the process is to identify the key stakeholders associated with the process and thereafter analyze all the functional departments of the company individually in context of their contribution towards the organizational objective. The final business plan will be developed in accordance to the gaps evaluated in all the business departments and hence design models for rectification. With the help of a quarterly review, the business planning process can be constantly monitored and improved. Stakeholder analysis The stakeholder analysis for Greens Electrical store will be conducted by keeping in mind the above drawn model for business plan analysis. The stakeholder analysis will help in evaluating the necessary personnel for ensuring appropriate implementation of the business plan. The stakeholder analysis of the company will depend on three primary criteria: Needs of the business The structure of the organization The guiding principles of the plan These three steps will help the analyst in designating the roles and responsibilities of the stakeholders involved in the business planning and development procedure of the organization. Figure 2: Stakeholder Analysis (Source: Jeannet & Hennessey, 2010) The given framework of stakeholder analysis has been filled with the associated stakeholders who will be closely related with the process of business development and planning of the Green Electrical Store. The customers are now the primary focus of the company considering the existing financial performance of the company. The employees will have to manage closely as they will help in framing the operational activities related to business strategies and will also be the final end of contact with their customers (Doyle & Stern, 2006). The strategies being implemented by the competitors will have to be observed closely because these can change in trends in the market and reduce the efficacy of the business plan. Finally, the manager and owner of the company will have to be informed regarding the progress and status of the business development process continuously in order to align the direction of the work process with that of the strategic objectives of the business. Plan business analysis activities and communication The planning process for analyzing the business review activities depends upon the integration of the various stages of the analysis plan. The analysis of greens will focus on defining the business objectives and life cycle of the process of analysis which will also relate themselves with the objectives of the review. It was identified in the stakeholder analysis that the internal stakeholders will be the employees and the owner of Greens who needs to design and implement the changed operational activities and highlight them to the customers and the target markets. The communicative network of the analysis plan will be developed in a manner so that the owner of Greens can observe the progress of the strategic plan and also update other stakeholders about the same. The type and means of communication is generally designed in accordance with the performance analysis objectives, however in case of Greens, the financial status of the company limits the ability of resource accumulation and hence Greens can initiate their communication with the help of customized performance measurement system including Kanban and Key Performance Indicators (KPIs). The utilization of communication in the plan will begin once the tasks are in a functional position. Requirement management process This segment of the report involves the activities which will be performed for gaining the approval for implementing the business review process. The common approach used by organizations in approving the plan includes virtual review or descriptive database supported with estimated figures which implies the potential changes that will take place because of the business review process. However, in case of Greens the plan requirement management process will be performed with the help of repository framework. The repository framework will help in accumulation and storing the important information, also the resource performance data can be accumulated in order to highlight the performance of the business and the potential developments can be initiated with the help of the business review plan. Business analysis performance The final step of the business analysis and monitoring process is to ensure that all the designed activities and tasks are performed in the appropriate manner. The approach designed for performing the business review has included all the functions based on the information provided for the research study. The process of communication has also been specifically focused on the operational functions and the transfer of information from one segment to another. The primary focus of the business review is to restructure the operational and strategic objectives and also align them keeping in mind the factors influencing the growth and development of the business. Elicitation Preparing for elicitation Elicitation is arguably one of the most critical activities in a business analysis. It allows business analysts to learn the requirements and expectations of the stakeholders. It is extremely important for an analyst to prepare all the resources before conducting elicitation with the stakeholders (Paley, 2009). This is precisely because the information extracted from the elicitation process establishes a robust foundation on the basis of which operational strategies are formulated. As far as preparing all the resources are concerned, the analyst will have to set up the interview location with all the required facilities before the interview date. The analysts need to be absolutely sure about the information collection tool as this will pave way for the analyst to formulate the necessary questions. It is extremely important for the researcher to ensure that the questions prepared for the elicitation encompass every crucial detail regarding the business. The analysts will also have to prepare a full list of stakeholders who are to be interviewed. Upon preparation of the stakeholder list, a schedule needs to be prepared according to the convenience of the participants. The analysts will also have to arrange for the transportation facility for the stakeholders in order to ensure that the information elicitation is conducted in a timely manner. Conduct elicitation activity Interview has been chosen as the primary data collection instrument for conducting the elicitation activity precisely because of the fact that it will provide the analyst as well as the stakeholders to counter question each other. The subjective research driven by an elaborate interview process will enable the analyst to create a learning environment. In that way, the analyst will be able to identify the needs and requirements of the stakeholders in details (Walters & Rainbird, 2011). One of the major advantages of the interview process is that it is a one to one communication. The analyst will be able to give equal emphasis on every individual stakeholder by adjudging their attitude towards a particular question. The interview will also allow the analyst to probe the participants in order to extract crucial information from them. By doing so, the analyst will be able to identify any weaknesses within the business model employed by Greens Electrical Store. In addition to that, the analyst will also be able to evaluate if the participants are satisfied with the business model or not. This in turn will enable the analyst to learn about the expectations that the stakeholders have from the organizational managers. Lastly, the interview process will allow the analyst to assess the validity of the feedback provided by the participants thereby eliminating any chances of biased information. Document elicitation results Elicitation from senior manager Do you think the company will be able to gain a significant competitive advantage? If yes then why? What other factors should be considered in order for Green Electrical Store to sustain its competitive advantage position? According to the senior manager, Greens Electrical Store provides wide ranging products to its customers. The company deals in almost every electrical device segments starting from television, music system, refrigerators, air conditioners and microwaves to washing machines, hair dryers, vacuum cleaners and razors. Such a broad range of products will allow the company to target a wide customer base which in turn will enable the managers to increase the store’s market share. As far as sustaining the position of competitive advantage is concerned, it is extremely important for the company to extend its presence both in the physical domain and the digital dimension. Therefore, the owners are requested to consider this matter and plan about establishing more brick and mortar stores in order to cater to the needs and demands of a large customer base (Smith, 2009). Currently, the company has been targeting households within the proximity of 6 km from the store, but it limits the customer base of the store. Therefore, extending the physical presence of the company will provide ample scope to the store to provide services to even a wider base of customers. In addition to that, the owner should also consider expanding in the digital domain by selling its products through third party shopping platforms or by developing their own online shopping platform. In that way, they can target a large base of internet audiences. Elicitation from customer What do you expect from the management of Greens Electrical Store in terms of product and service offerings? Currently, the store is engaged in the sales and distribution of electrical devices across the proximity of 6 km from the store. Customers living within that radius benefit from the services provided by the store. The participant’s household was beyond that proximity which is why it becomes difficult to avail services of the store. The same holds true for other customers living beyond the proximity of the store. The services are not consistent beyond the proximity. Therefore, the customer expects the company to extend their services beyond this region. In addition, the company also lacks proper customer service operations. Customers have often reported that the after sales service is not that effective. There is no proper channel whereby complaints related to electrical items and appliances can be lodged. Customers have to come to the stores in person to place their complaints. That is why there is a requirement for a 24/7 customer service department who would be dealing with customer complaints on call as well as through email. In addition, the company also lacks proper delivery facility as a result of which customers have to arrange for the delivery of heavier products such as TV and Refrigerator bought from the store. Therefore, the customer expects that the company will develop its own delivery facility in order for the convenience of the customers. Elicitation from accountants/financial analysts What modifications are required in order to improve the way work is done in your department? Currently, all stocks and accounts of Greens Electrical Store are maintained in documented format. Till date the company has not resorted to the use of advanced software or databases. The accountants find it difficult to record the amount of incoming products and outgoing products from the company’s stock. Moreover, documented accounting and stock keeping has also resulted in accounting errors and data loss. Therefore, it is extremely important for the managers to develop a software database that will consist of all information related to the company’s financial accounts as well as stocks. This will not make accounting more convenient for the accountants but will also prevent any further data loss. This is because these databases are backed up in archives for which information can be retrieved at any moment. Moreover, the same software can be used by accountants in order for them to be able to predict the future demand. Elicitation from marketing manager What should be the marketing strategy for Greens Electrical Store given the company’s current position in the market? Given the store’s current position in the market, it is extremely important for the manager to enhance the stores brand image and thus promote brand awareness. Therefore, the current requirement is to set up an organization website which will consist of information related to the products and services offered by the company. The website will act as an intermediary between the company and its customers whereby the former will be able to convey crucial information such as discount offers, loyalty rewards, store modifications, new stores and new arrivals and so on and so forth to the customers. The website should also contain vital information such as the toll free numbers of the customer service departments as well as the email ids of the key members of the organization in order for customers to be able to convey their issues to a particular member of the company. The store’s website should also reflect the values and missions that the managers follow as these aspects are the fundamental determinants of the purchasing behavior of the customers. Requirement analysis Prioritizing requirements Considering all the requirements that have been mentioned in the section above, the one that needs to be implemented with immediate effect is to expand the company’s physical presence beyond 6 km of the store’s coverage area. The managers of Greens Electrical store needs to set up more brick and mortar stores so as to cater to the needs and demands of a wider customer base. Not only will this help the company to increase its market share by generating revenues, but will also allow the managers to promote brand awareness. Thereafter, the managers should focus on setting up a customer service department that would address the complaints raised by customers regarding product usage. This will enable the company to enhance the quality of services provided to the customers which in turn will influence the purchase intention of the customers in favor of buying products from the store. In addition to that, the store managers should also focus on introducing delivery services for the customers in order for the latter to be able to carry their products conveniently. The next most important requirement is to develop software databases that would help the accountants to keep track of the company accounts and stocks. This is extremely important considering the fact that the store managers had recently encountered several issues related to accounting miscalculation, misinterpretation and data loss. Therefore, the managers need to immediately make a transition from a pen and paper environment to a paperless environment Now that all the operations in the store are digitized, the store managers should now consider an expansion in the digital domain. This should be done by developing an online shopping platform that would be integrated within the organizational website. The company account database needs to be integrated within the shopping platforms in such way that every purchase and returns done through the online shopping platforms gets equivalently reflected in the company accounts. By developing an online shopping platform, the managers will be able to target a wide base of internet audiences. Greens Electrical Store managers should create season fare where customers can come and check out the new arrivals. In such fares customers will have the option of pre booking their chosen devices or appliances at a discounted price compared to the price that they would have to pay if the product is purchased after its entry in the market. Organizing requirements The company needs to rent several properties in order to set up its brick and mortar stores. Alongside that the owners will have to conduct a recruitment drive in order to appoint accountants, cashiers, sales personnel and customer service executives. The owners will also have to establish contact with third party procurement companies who would be responsible for the delivery of goods from the manufacturing divisions of the respective brands to the warehouse of Greens Electrical Store. The managers of the store will also have to consider renting bigger warehouses in order to accommodate more number of finished products. Alongside that, the managers will also have to rent two deliver trucks that will be mainly responsible for transporting goods to and from the store and the warehouse. IT systems and databases needs to be installed in order to be used by the cashiers and accountants in the store. The owners will have to establish contact with third party suppliers who would be responsible for supplying stock of goods to the company. In addition, the company also needs to appoint third party software developers in order to develop the organizational website and the online shopping platform. Search engine optimization managers and content writers will have to be appointed in order to increase the promotion of Greens Electrical Stores website. Model requirements As far as model requirements are concerned, Greens Electrical Store will mainly be following two e-business models which are business to business models (B2B) and business to consumers (B2C) model. As far as implementation of the B2B model (figure 2) is concerned, Greens Electrical Store will be selling its electronic devices and appliances to an intermediate buyer via its e-business platforms who in turn will sell the products to the end customers. By adopting this model, the managers of Greens Electrical store are expecting to sell large quantities of goods in a shorter time frame which in turn will enable the company to generate greater revenues. However, one flip side of this model is that the margin of profit will not be high enough as the products are being sold to the intermediate buyers instead of the end customers. Figure 2: B2B model (Source: Tarplett, 2009) In order to compensate for the reduced margin of profit, the managers of Greens Electrical Store will also look to implement the B2C model (figure 3) by selling its products to an already existing customer base of the company. In addition to that the store will also target a wide base of internet audience through its online shopping platforms which in turn will help the managers to increase the market share by selling products at greater margins. Figure 3: B2C model (Source: Nolan, 2010) Constraints The major constraints that the managers of Green electrical store are likely to face are the inadequacy of available funds. The expansion plans that are being considered by the company require a lot of financial backing. Nonetheless, the current financial position of the company might not permit the managers to execute all the plans that have been mapped till now. Another major constraint that the organizations may face is related with the availability of workforce. Given the fact that the company is relatively new, not many candidates will prefer to work in a store that is being newly established by a company that is relatively unknown. Furthermore, the company may also find it difficult to strike a deal with suppliers at lesser price. This is because of the relatively new stature of the company as the suppliers might be reluctant to supply goods to the store at a lesser price. Lastly, Greens Electrical Store manager may also find it relatively difficult to grab the attention of customers after setting up their brick and mortar stores at a new place. This may prove to be detrimental to the financial health of the company. Solution assessment and validation Assessment of proposed solution Proposed Solution Assessment Establishment of Brick and Mortar Stores This solution is absolutely justified considering the fact that the company’s market share is very low compared to other dealers operating in the market. Establishment of more brick and mortar stores will allow the managers to target a wider customer base which in turn will pave way for creation of sustainable revenue stream. In addition, extensive physical presence will also enhance the brand image of the store. Setting up of customer service department Given the fact that the company does not have a customer service department as of now, it is extremely important for the managers to set up a separate department in order to deal with the grievances and issues faced by the customers. By providing superior quality service to the customers the managers of Greens Electrical Store will be able to influence their purchasing behavior and promote itself through word of mouth promotion. Development of Software databases Development of software databases is extremely important considering the fact that the company has encountered several issues off late related to accounting errors and data loss. Development of software databases will not only allow the managers to reduce the probabilities of accounting errors but will also allow the store’s analysts to make an approximate of the future demands. Development of online shopping platform The online shopping platform will allow the managers of Greens Electrical Store to extend the presence of the company in the digital domain thereby catering to the needs to large base of internet audiences. Development of organizational website The organizational website will serve as an intermediary between the store and its customers. It will be a medium for the company to convey vital information to its potential customers. By maintaining such connection with the customers, the managers will be able to enhance the brand image of the company. Requirement allocation Proposed Solution Resource Allocation Establishment of Brick and Mortar Stores Fund, On-site storeroom and loading Bay, Car Parking facility for about 30 Cars, Off-side Warehouse, Information technology systems and databases, workforce. Setting up of customer service department Funds, Customer service executives, IT systems and databases. Development of Software databases Funds, third party software developer Development of online shopping platform Funds, search engine optimization managers, third party software developer, Content writer, Marketing manager. Development of organizational website Funds, search engine optimization managers, third party software developer, Content writer, Marketing manager. Organizational readiness Greens Electrical Store’s owners are very confident about their ability to execute all the plans that have been formulated. However, their ability to carry on with the process is still under question because of the fact that the company is relatively new in the market and thus has not been able to pool enough funds together that can be used to make sure that the developmental processes is carried out without any barrier. Therefore, the managers need to seek external borrowings in order to implement the business strategies successfully. Transitional requirements As mentioned above, the primary requirement for the managers of Greens Electrical is to borrow funds from external sources (such as banks and other financial institutions) and form a good mix of debt capital ($50,000) and cash ($15,000). This is the most important transitional requirement for Greens Electrical Store as it will allow the managers to make sure that the business strategies are implemented successfully. Validation of proposed solution The proposed solutions are absolutely valid considering the fact that they have been formulated on the basis of requirements that have been stated by the stakeholders. All the proposed solutions are aimed at addressing all the needs and requirements as has been drawn forth from the stakeholders. Evaluation of solution performance In order to evaluate the performance of the proposed solution, the parameters which will be evaluated in the future are sales volume, customer satisfaction index, number of repeat visits and purchases, revenue, and net profit. References Dess, G. & Lumpkin, G. (2009). Strategic Management: Creating Competitive Advantages. 6th ed. London: McGraw-Hill Education. Doyle, P. & Stern, P. (2006). Marketing Management & Strategy. 7th ed. Hoboken N.J: Wiley. 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