An important aspect of business would be a mission and vision
statement, to explain further what this entails, I will clarify the difference
between the two. They are often intertwined to accomplish a similar objective,
however, they do have differences. A mission statement is an important and
fundamental part of the startup of a business or a company, as it is the
defying feature of what the business represents and stands for. It is an
explanatory template, how the company intends to work to reach their goals.
While a vision statement represents where the company would see themselves
later. It would be set more in the future, and how the business sees its
upcoming success. It elaborates what the company aspires to be, how they intend
to accomplish these goals, and how they intend to reach those achievements. Both,
as previously stated, share similarities and are often used interchangeably,
but there are differences, as previously mentioned.

 

In essence, a vision statement is what the company intends to be,
and their future aspirations, while the mission statement would be an outline,
further detailing how the business intends to meet those goals. However,
forming a mission and vision statement is a difficult task, and it usually
involves the cooperation from everyone in the company, as it will represent the
business, and therefore, must portray the objective of said business at its
finest. The management staff working to put this together must form corporate
strategies, help define performance standards amongst one another, and finally,
to frame a united mindset in approaches to different sets of problems or
obstacles. When this particular task is done successfully, the mission and
vision statement will be very helpful in improving client to business
relationships, as well as act as an important public relations tool.

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An environmental scan is also a necessary tool for a business to
properly assess the area it functions in, to delve with more detail into the
laws and regulations, and to better evaluate potential opportunities or risks
associated with any atmosphere they may be in. The first step is for an
employer to gather information about the world in which it operates, including
information about the economy, government, laws and demographic factors such as
population size and distribution. (Society for human resource management)
Another aspect, a business would have natural concerns over, would be potential
competition. This is necessary for the company to better gauge and to learn
what possible opportunities are available as well as potential barriers and
difficulties.

            The next necessary feature to
consider is a competitive advantage, to further elaborate, a competitive
advantage is when a business is capable of selling their products, or offering
services at a lower price than their competitors, and thus, generating greater
income and simultaneously, in essence, pushing out the rivalry and creating an
edge. This would offer the business greater leverage to generate larger profits
from either sales or services.

            Another aspect I will detail further
is market segmentation. This a marketing strategy used by businesses to
segregate buyers with certain prospects and goals, in order to better customize
marketing strategies. This form of advertisement can be more effective in
having a better gauge of a widespread so called need from customers or large
clientele base. Market segmentation
enables companies to target different categories of consumers who perceive
the full
value of
certain products and services differently from one another. (Invsestipedia)

 

To continue, one more feature important to the functionality of a business
is the financial analysis, as it helps gauge the company’s economic standpoint,
to further determine whether it is solvent, liquid or financially capable to withhold
itself from a business perspective. In order to properly measure the finances,
a financial analyst will look at economic documents, such as cash flow income,
as well as the balance sheet, as this will be helpful in determining the
stability of the said company and whether they would have the monetary capacity
to be capable of making investments.

The last business aspect I will cover are internal controls and how
they correlate with the business, and its impact on it. An internal control is the process by which
management structures an organization to provide assurance that an entity
operates effectively and efficiently, has a reliable financial reporting system
and complies with applicable laws and regulations. (Kendra James) The
purpose of having internal controls is that it offers a form of reassurance for
both the employees and clientele base. This aids staff, as well as potential
partners, understand better the mission and vision statements of the company
for which they are part of, and to comprehend further the ideals and the
objectives of the said business. This in essence, offers reassurance for
workers, associates and customers to further promote security in the organization
that they meet the standards that they promise and promote. 

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