Restrictions
Company restrictions
refer to the limitations that hinder a particular company from carrying its
operation typically. These constraints may be fiscal, physical or even time limitations, to name but a few. Any other factor that may be anticipated to be
a factor that affects business operations hence hinders the company from
achieving its set goals. For a considerable time, legislation laws have been
taken as the central constraints that can significantly hinder the operation of
the business, hence the success. At all costs, the lawmakers and the suppliers
should consider the ‘duty of care’ directed to the consumers of the goods. The
company’s legal requirements also consider the advertisement standards, whether
they are suitable for the children.
The constraints can
affects the business to the extent of causing its failure. Generally, such
constraints start with the nature of the market a company operates in. The
market is an integral part that determines the success of such a business. In
case the company exists in a small town with few populations, it will be hard
for it to brand and make its sales locally, which insinuates that the company
must extend its operation to outside markets. Such a decision influences the
value of a good due to the additional cost of transportation, labour and other
expenses that the company may incur during the transportation of such goods to
the relevant or the required market. However, this does not implicate that the
company will sell much because it has exported its goods. The company can be
forced to operate at a loss whenever other companies in the area of operation
deal with similar products. These companies do not sell their goods at hiked
prices simply because they have not incurred transportation costs. Such a
restriction is dangerous and hazardous to companies and can contribute to the
downfall of the company.
Consequently, business
finance is also vital in a business’s operation, and it can also restrict
business operations by far. It’s only with finance that the business will be
established. Finance gives the business an act of outstanding courage to
survive during times of challenges and setbacks. It also enables the company to
employ the best-skilled personnel they deserve for their daily production. As
such, if the company has limited finances, its operations are limited. It
becomes challenging for the company to pay its debts, pay the employees, and
restock the stores for continued production.
Finances also help the
company fit into a competitive market. In case the company is in the perfect
competition market, the only thing that will help it compete effectively with
other firms is the availability of finances. Therefore, the inadequate finances
become a barrier to such a company to achieve its set goals due to limited
choices set by the inadequate finances as a constraint to effective operation.
Options and Alternatives
These refer to an ideal
situation whereby the company has to provide a way to help them achieve the
same goals and ambitions within the same specified duration. Alternatives must
not be any close substitute of the supreme choice, but it must solve a
particular problem using a unique way. These are backup plans, or else
strategic secrets of a company that exist in a perfect competition market.
Strategic planning is vital in determining the survival of a business. In other
words, any business must have such top secrets and a backup plan to use when
difficult situations occur and must not disclose to any other firm. Top
companies are known to keep extra capital in a frozen account as a backup if
the set capital fails within the process of carrying business. Also, top
companies hold superior plans in their archives to be referred to during
difficult times. These are the alternatives and other options that are not the
primary strategy but be used as well for the company to have the same level of
prowess. Companies without other options and alternatives have a
significant risk of whenever the principal plan does not solve the problem
correctly. Significantly, the companies that have invested in expensive goods
worth millions of dollars. Whenever the business is offseason or off-peak,
these companies can never recover from the blow given to them by such hard
times. Therefore, it necessitates all companies to implement options and
alternatives that are not just a direct substitute for the original choices and
strategies to take care of unseen risks during the trading period.
Alternatives must never
be direct substitutes to the original plan as they can serve more or less the
same purpose that can cause the business’s success similarly. When
a risk occurs, it directly implicates that the first superior plan has failed
to solve the problem at hand. Neither can the option that was a substitute be
capable of solving the same problem. Such a situation justifies that companies’
options and alternatives must never be a substitute for the original strategy.
It should be a plan that is entirely different from the original plan.
Courses of actions
The course of action
refers to a set of anticipated actions in which a business intends to attain a
specific goal set during the onset of the trading period. In other words, these
are the implemented plans established by the business to safeguard its operation
to achieve its goals within a particular trading period. These plans are useful
whenever the company faces a crisis that threatens the operation of the
business.
It’s mostly evident that
most of the companies are uncertain of the courses of action to put into
practice during the recession times. A crisis can be a threat and an
opportunity, making most companies be left indecisive of the best strategy they
can use to guide them effectively during the crisis period and, most
importantly, help them come out of the crisis being better than before.
Generally, companies must undergo both bad and good times during the trading
period. At all times, the stakeholders must monitor the company’s cost and
profitability to manage the cash flow within the business.
Notably, companies that
lack cost awareness lose their sight of the cost, which weakens the company’s
financial position. Primarily one of the courses of actions that a company can
have is focusing on reducing the cost of production. This helps the company streamline
its processes, reduce stock levels, and reduce its intricacy. Such a plan is of
vital use to the company as it is essential in decreasing the cost and
increasing the financial capability.
Companies struggle
whenever their course of action is not well defined. The consequences that
befall them during the time of crisis is unimaginable. Such circumstances
threaten the well-being of a company to the point of being closed. Business
failure also occurs during such a crisis where the company has no better ways
to survive during the recession.
Loblaw Company must be in a position to increase their rate of turnover. This creates a larger attention to pricing while focusing of quality of the commodities being sold. Through such process, the company builds a stronger relationship with their customers, encouraging them to buy more often in the firm thus increasing the rate of stock turnover.
Recommendations
Loblaw Company can be
the best again if they can implement superior strategies that should only be
useful during the crisis time. Such ideas, like lowering the cost of
production, give the company an excellent financial position as the company
will compete effectively with the fluctuating prices of the commodities being
sold. The stakeholders of the company must be bright to understand how the
market is changing, as well. They should offer the business with outstanding
ideas to strengthen its existence by competing correctly in the market.
Loblaw stakeholders must also be able to exploit the opportunities presented to them in case the other competitors are faced with crisis. At such a point, the stockholders should use the opportunity to earn a good marketing position. They can as well enter into a business partnership which generates core operations while employing qualified and highly trained staffs. Thus, such a step creates a strong base and makes the company run smoothly without any struggle.