An important aspect of business would be a

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 explains in
a concise and articulate manner the strategic planning a company has in mind to
reach their goals. While a vision statement represents where the company would
see themselves after a projected amount of time, as it would be set more in the
future, and how the business sees its upcoming success. This further 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 a helpful
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, aid fellow employees to define what would be ideal for better
performance, and to set high working standards and finally, to frame a unified
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.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

 

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, 2012) 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 that may be
present.

            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 have the
ability to offer 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 is a marketing strategy used by businesses to separate
prospective buyers and clients, delving into their consumerism habits, to have
a better measurement of what may be more attractive for their client base, and
to further sum up, giving the company knowledge on what the common need is. Market segmentation enables companies to
target different categories of consumers who perceive the full
value of
certain products and services differently from one another. (Market
segmentation, 2018)

 

To continue, one more important feature 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 secure itself from a business perspective. In order to properly measure
the finances, a financial analyst will look at fiscal 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. (James, 2018) 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,
to understand better the mission and vision statements of the company for which
they are part of, and to further comprehend 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.

In conclusion, all the strategies
mentioned above are all extremely vital to the success of a company, and each
plays a critical role in ensuring that the company stays solvent, markets its
products or services well, and generates a good source of income, as well as
securing its future and maintaining a unified mindset amongst its
employees.