Transport links for supplies and distribution.
The location chosen by Hobson’s and Mr. K. Day has to be accessible. Local customers need to be able to reach it easily. Businesses that distribute goods services nationally or internationally need to be near suitable transport such as motorways, railways and airports. Hobson’s needed to have motorways in which to deliver by parcels by road. Some motorways that are used by Hobson’s are M25, M1, M16 and the A127. Hobson’s need to be able to have good sea transport and easy to get to ports. Hobson’s may use ports such as Dover and Portsmouth. Hobson’s also need to have good airport links so that they don’t have to keep relying on a port or road links. Hobson’s may use airports like Stansted and Heathrow. Mr. K. Day needs to have suitable road links as he works on the roads around the local area.
The need to be near customers:
By being near its customers a firm has more change of making sales. Being near customers also reduces transport costs. It is for this reason that larger breweries are still to be found in cities such as Manchester, Newcastle and London when similar-sized manufactures of other products have moved outside the city. The beer and larger produced by breweries is bulky and difficult to transport. City centre location of breweries, near to pubs and hotels, reduces the cost and time involved in moving the finished products to where they are needed.
History and Tradition:
In the past certain areas have been linked to certain areas. Originally there where sound commercial reasons for these businesses to locate where they did. As long as these advantages remain it is sensible for businesses to follow the history and tradition. If these advantages are reduced, or become greater elsewhere, history and tradition will be less important and business may move away.
Hobson’s History:
Hobson’s opened in 1850 and has been going for 152 years. The family that started was the Hobson’s family. They started close to Woolwich Barracks, South London, England. Hobsons grew to such an extent that by 1860 five shops had been open in and around Woolwich. By the turn of the century the new Hobsons factory and offices in Tooley street (Between London bridge and Tower bridge were in operation. In the 1930s Hobsons purchased a church hall with surrounding land at Thundersley, Essex, with the long-term plan of drawing the business in one place. This would see the new “Hobson era”. In the early 50s the leather section moved to Lewisham and then in the 60s to Greenwich. By the late 50s Hobsons first purpose built factory at Thundersley had been erected. At the Thundersley site further extensions were made. Between 1992 and 1997 the last of the Hobsons business were finally drawn into the modern factory and offices site at Thundersly.
Mr. K. Day’s History:
Mr. K. Day started off as a cab driver in 19 and has been a cab driver for years.
Sales techniques:
Traditional retail activities need showrooms or shops for the public visit and look at and try out the items for sale. Activities such as selling cars or cloths require space that is easily accessible. Selling over the Internet, by telephone or through mail order removes the need for special locations and gives the business more choice of where to be based.
Mr. K. Day’s location:
Main reasons why Hobson’s located where they did and factors that affect Hobson’s activity:
Hobson’s are located at Thundersly and are at the top of a hill called Bread and Cheese hill. The hill is named Bread and Cheese hill because of the pub at the top of the hill as well. Hobson’s need good transport links to be able to provide a good and successful delivery service. Hobson’s needed to have motorways in which to deliver by parcels by road. Some motorways that are used by Hobson’s are M25, M1, M16 and the A127. Hobson’s need to be able to have good sea transport and easy to get to ports. Hobson’s may use ports such as Dover and Portsmouth. Hobson’s also need to have good airport links so that they don’t have to keep relying on a port or road links. Hobson’s may use airports like Stanstead and Heathrow. Most of Benfleet and Thunderously have factories in or near by so most of the recruitment’s should be used or have some sort of idea of factory work. Hobson’s council tax (business rates) is a lot lower than where they located before they located to Thunderously. Hobson’s cant open 24 hours because they are located in a residential area. The residents will complain because of lorries that are coming through at night. This would help Hobson’s profit grow. Hobson’s need to be careful of polluting the area as they have promised to be environmentally friendly.
Strengths and weakness of Hobson’s present sights:
Hobson’s present site has strengths and weakness. Here are the strengths of Hobson’s present site:
- There are good transport links for parcels to go out
- Employees can get out of the and get to Hobson’s easy
- The premise cost is a lot lower than their old site
Here is the weakness of Hobson’s present site:
- Hobson’s cant be open late because it is located in a residential area
- Hobson’s cant expand because it is in a residential area
- Pollution of Hobson’s needs to be kept at a minimum
Strengths and weakness of Mr. K. Day’s present site:
Main reasons why Mr. K. Day located where he did:
Mr. K. Day is located in two places. He is located in his taxi during the day and at night he is located in his house. Mr. K. Day does not need a lot of room as 99% of his work is buy telephone or in the car and the rest of his work is very minor work. Mr. K. Day doesn’t need much room at home to keep his work stuff either. Mr. K. Day has to pay lease for his taxi and in his house he has to pay all the bills a normal house has to pay. Where Mr. K. Day is located, he is near his customers and can keep in contact with them. This is good as Mr. K. Day can find out as soon as one of his customers needs him and he can earn money. Most of Mr. K. Day’s regular customers have a form of contact so that they can get hold of Mr. K. Day as soon as possible.
The functional areas within Hobson’s and Mr. K. Day.
Hobson’s are split into departments so that Hobson’s can carry out certain activities and a range of tasks successfully. Mr. K. Day is not split up into departments, as he does not need to go into as much detail as Hobson’s and other big firms do. Mr. K. Day needs to carry out most of the tasks but not in as much details. The tasks that Hobson’s carry out can be summarised in the following category:
- Human resources
- Finance
- Administration and IT support
- Operations
- Marketing and sales
- Customer service
- Research and Development
All functional areas need to be able to communicate with each other.
Human resources:
Hobson’s need to be able to select and employ the right people for the right jobs so that the employees work well and use the skills they have for the job and need to use. Mr. K. Day doesn’t really need to spend too much time concentrating on The Human Resources Department because he doesn’t employee people. Hopefully this will make the employee perform to the best of their ability. The department that deals with the workforce is known as The Personnel Department and The Human Resources Department (HRD). The role of The Human Resources Department’s role is to be involved in the process of staff development as its work with the employees of Hobson’s until the employee leaves Hobson’s. The Human Resources Department looks after five aspects, which are:
- Recruitment, retention and dismissal of staff
- Working conditions
- Promotion, training and development
- Employee organisation and trade unions
- Health and safety
Recruitment, retention and dismissal of staff:
The fast change of the economic and technology means people change their jobs several ways. Mr. K. Day may change the way he works and the equipment he uses because of the economic and technology change. This may be because:
- Retirement
- Dismissal
- Redundancy
- Personnel reasons
Retirement:
The age for retiring is usually 65 years for men and usually 60 years for women, but most men and women work over the retirement ages, but sometimes men and women may retire before the retirement ages.
Dismissal:
When an employee in Hobson’s is dismissed or sacked they are told to leave Hobson’s. Mr. K. Day does not need to sack or dismiss any employees because Mr. K. Day does not employ anyone. Usually the employee is given a notice. Sometimes when employees are dismissed they are paid for the notice time but do not need to work. This is called payment in Lieu of notice. Hobson’s must be able to give exact details as to why they are unsuitable for the job. Before being dismissed, advice and help must be given along with warnings. If Hobson’s and do not give this (Known as a written warning) they could be in trouble and could be libel for unfair dismissal by the employer. Misconduct is another way for someone to be dismissed. Gross misconduct is when someone is dismissed for theft, fighting or drunkenness and is dismissed without notice. All these kinds of dismissals are used in Hobson’s.
Unfair dismissal:
Unfair dismissal is when the law considers the dismissal unreasonable. Trade unions are being particular on race, religion, homosexual is generally considered as unfair. If there is a dispute over a dismissal then employees can seek advice from a trade union. The union will help by putting their case to an Industrial Tribunal.
Constructive dismissal:
Constructive dismissal is when Hobson’s change an employees working conditions or job and the employee thinks it’s unreasonable and the employee feels pressured into leaving the job. The employee must prove these conditions have been changed by his contract to have any sort of case.
Redundancy:
Redundancy is when an employee is doing a job, which is no longer required. This may be because Hobson’s have closed down and particular skills of an employee are no longer needed. If an employee is redundant Hobson’s might offer a similar job in Hobson’s, which may require different skills to the job that the employee required in the old job. If the offer is reasonable and made within four weeks of the employee’s contract being ended, the employee could lose their entitlement to redundancy pay if the employee turns the offer down. Hobson’s need to pay redundancy pay with help from the government through the trade union with information about proposed redundancies and negations with them to minimise the effects of redundancy.
Personnel reasons:
Employees may leave Hobson’s because of personnel reasons that have very little to do with Hobson’s. Mr. K. Day may stop work all together and move on to another job that he is interested in or has skills for.
Working conditions:
Employees expect Hobson’s to provide a quality and safe working environment. Employees don’t have to work if the room temperature is under a certain decries and above a certain decries. Hobson’s need to follow the Health and safety acts or they could be liable.
Promotion, Training and development:
There are two types of training, which are on-the-job training and off-the-job training. On-the-job training is when employees learn skills wile they are at work Usually this sort of training involves the trainee watching someone in Hobson’s demonstrating the type of activities that the job will involve. On the job training is cheaper. The product being produced by the trainee may nit be up to standards and customers may complain. Off-the-job training is when employees are taken out Hobson’s to develop new skills. Off-the-job training allows the trainee to develop skills and knowledge without the distractions of work. Specialist staff usually carries out this type of training. This sort of training is more expensive for Hobson’s. Hobson’s must provide some sort of training especially for younger staff, as it is the rights of employees.
Once an employee at Hobson’s has finished their training they may want to work their way up to a higher part in Hobson’s. Hobson’s run an appraisal scheme, which is checked once a year and if an employee ahs done really well in the job they are doing they may be promoted by Hobson’s. Mr. K. Day needed training in the Health and safety issuers and just a little driving test and knowledge of the area but apart from that not a lot of training was done and wasn’t needed. Mr. K. Day was trained by A&B. Mr. K. Day cannot be promoted as he runs his own business and doesn’t need to promote anyone, as he has no employees.
Employee organisations and trade unions:
Hobson’s do not stop their employees from joining a trade union or any staff associations because if they did the relationship may break down but Hobson’s is a family business and everyone no’s everyone and their relationship is very good. If there is any disputes over anything then they are solved peacefully. Mr. K. Day is a member of a trade union inside A&B but there are never any disputes for Mr. K. Day to report to the trade union. There are three Acts, which should be followed by Hobson’s. Here are those Acts:
- The Employment Relations Act 1999.
- The Working Time Regulations
- The National Minimum Wage
The Employment Relations Act 1999:
The Employment Relations Act 1999 lays down the conditions in which Hobson’s have to recognise and negotiate with a trade union. Hobson’s can’t discriminate on the grounds of being a trade union member or belonging to staff associations. A&B can not take on taxi driver just because he/she belongs to a trade union.
The Working Time Relations:
The Working Time Relations give employees the right to not work over 48 hours a week unless it is agreed in writing. The same relations allow a minimum of 11 hours off between each working day, with 12 hours foe workers under 18 years of age. Adult workers are entitled to one day off per week and under 18 years of age to days off, or 36 hours in exceptional circumstances. Mr. K. Day can work what ever hours he wants as there are no set hours.
The National Minimum Wage:
All adult worker over 18 years of age is entitled to the National Minimum wage, which should be paid by Hobson’s. The National Minimum Wage is set by the government annually. The figure for 2002 was £4.10 per hour. This does change sometimes. The rate is reconsidered every October. Hobson’s are required by law to keep records that show all employees are being paid the minimum wage and must show these records to an employee if the employee asks for them. £50, 000 is the fine if Hobson’s do not pay the minimum wage. Mr. K. Day gets money for the amount of jobs he does, but he does need to earn a certain amount each day to survive as a business.
Health and Safety.
Both Hobson’s and Mr. K. Day need to monitor and make sure that the Health and Safety of the business are in good shape. Hobson’s need to follow these three Acts or they could be in trouble:
- Health and Safety Act 1974
- Control of Substances Hazardous to Health 1988
- Management of Health and Safety at Work Regulations 1992
Health and Safety at Work Act 1974:
Under this law Hobson’s have a duty to make sure that the workplace is safe and does in any way harm the Health of the employees that work at Hobson’s, customers and visitors. Mr. K. Day must keep the Health and safety good as he has customers to pick up and drop off. Employees must co-operate with making the workplace safe. A Company called Health and Safety Exclusive (HSE) will give advice to Hobson’s on Health and Safety. The HSE will also arrange inspectors to come to Hobson’s and inspect their Health and Safety. Mr. K. Day doesn’t have HSE come and inspect his taxi but he does have regular checks on his taxi and this should be done make sure the customer is safe.
Control of Substances Hazardous of Health 1988:
This Act requires Hobson’s to carry out an assessment of the risks caused by all chemicals, materials and other substances in Hobson’s. If chemical or materials that are hazardous and employees are using them then they should have clear instructions on them. Mr. K. Day only uses substances that a car needs and there will be clear instructions on them and if there isn’t then Mr. K. Day can then have a legal battle over it.
Management of Health and Safety at Work Regulations 1992:
This Act is a mixture of other Acts, which Hobson’s must follow because it is approved by the European Union. This Act says that protective clothing should be free for using chemicals and materials and protective measures should be given to people on a computer for a long period of time.
Finance.
Hobson’s and Mr. K. Day need to look after their Finances. To look after their finance they both need to keep records of money coming in and money leaving the two businesses. Hobson’s and Mr. K. Day need to be able to understand the records that are kept to plan for future activities, spending and income levels. Mr. K. Day takes care of the financial records. The department that looks after the Finance is called The Financial Department.
The types of accounts:
Financial account:
Financial accounts are usually found in large business like Hobson’s. A financial account keeps a record of what Hobson’s has spent and how this affected its profits. The financial account will need to produce regular reports showing how the Hobson’s money has been spent and what income has been received. The financial account prepares the profit and the loss account and balance sheet.
Cost account:
A cost account calculates the costs of the business services and products. The cost account is able to show which products are most profitable, which helps managers decide on what to produce.
Management accounts:
The management account deals with the actual income and expenditure of each of Mr. K. Day’s business activities. Mr. K. Day is then allowed money to perform certain tasks that are important. This is called a Budget. The management account advises Mr. K. Day about how well the various departments are meeting their budget. A&B provide loads of accountants for taxi drivers that want to use them. This is using one of A&B’s services, which they provide.
Operations Department.
The operations department is about making the best use out of the resources available. The resources that Hobson’s have are:
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Building and land – Offices, factories, parking and planting room.
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Equipment- Vehicles, computers, machinery and tools.
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People – Managers
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Materials – Raw materials and clothing materials.
Mr. K. Day’s resources that he have are:
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Building and land – Office and parking
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Equipment- Vehicles, computers and tools.
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People – Manager and accountant.
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Materials – Petrol, oil, diesel and car parts.
Hobson’s need to use computers to improve their operations. There are two different methods, in which Hobson’s use called CAD and CAM. CAD stands for Computer Aided Design. Hobson’s use this method to speed up the design process. Mr. K. Day also uses CAD because he wants to speed up Finance process. CAM is stands for Computer Aided Manufacturing. Hobson’s use this method to speed up manufacturing. Mr. K. Day does not use CAM because he does not produce products and doesn’t need to speed the manufacturing up.
Hobson’s will need to supply quality goods because they want customers to keep coming back. If the quality of the goods slip, Hobson’s will start to loose their customers and Hobson’s profit will start to fall. If Hobson’s do produce quality goods then they will give a good image. Hobson’s have an award called ISO 9002. This shows that Hobson’s do produce quality goods. Hobson’s products are regally checked to see if the standards of their products have fallen or not. Hobson’s can check to see if they are producing quality products by checking the garments, as mistakes are costly. Mr. K. Day needs to supply a quality service if he wants to gain and keep customers. If Mr. K. Day’s standards fall then his profit and customers will fall. When Mr. K. Day does provide a quality service he gives a good impression on A&B and himself. A&B also have an award called ISO 9002. This shows that Mr. K. Day and other taxi drivers (sole traders) provide a quality service. A&B and Mr. K. Day can check the quality of the service by having mystery customers.
The Marketing and Sales Department.
The Marketing and Sales Department will help Hobson’s and Mr. K. Day understands what customers want. The department will do this by:
- Market research
- Promotion
- Sales
Market research:
Before Hobson’s produce a product and Mr. K. Day starts up a new service, they both need to know what their customers want and what their rivals are offering. This procedure is called Market Research. Only large businesses like Hobson’s will employ their Market researchers. Mr. K. Day does not employ market research. This activity is usually done by market research agencies and advertising agencies. Hobson’s and Mr. K. Day also use market research to find out existing products and services. Market research also looks at the behaviour of rival businesses and potential customers. This information, which is collected, is called Primary and Secondary Data.
Primary data:
Primary data is collected through interviews, questionnaires, observers and experiments. This type of research is also called Field Research. Hobson’s and A&B may use a strategy called Test Market, which is advertising then Mr. K. Day and Hobson’s selling a new product or service in one part of the country. Hobson’s will then analyse and make a judgement on the product or service. An advantage of primary data is its specific and a disadvantage of primary data is its expensive and slow.
Secondary data:
Secondary data is when information has already been collected which is interpreted to find answers to Mr. K. Day and Hobson’s questions. Secondary data can be found in reference books, magazines, websites and government statistics. Desk information is past sales, number of faulty goods and satisfied customers, which have sent letters.
Promotion.
Promotion in this case is not moving up the ranks in Hobson’s but advertising. Both Hobson’s and A&B advertise. Advertising is when Hobson’s and A&B put forward information to the public about their products and services. Hobson’s advertise by putting leaflets in customer’s products. They may also send information through the post for customers to know the products and special offers in store. They also put them through doors. They also advertise by word of mouth and on the Internet. A&B will advertise for Mr. K. Day by advertising in the local newspapers, word of mouth and signs and posters up. Mr. K. Day may also advertise by himself in two ways only, which is word of mouth and posters on the side of the cars. Hobson’s and Mr. K. Day may want to advertise to encourage future sales and use of the services that Mr. K. Day and Hobson’s offer.
Sales.
Hobson’s need to produce and sell quality goods and Mr. K. Day needs to produce a quality service to make a profit. If Hobson’s and Mr. K. Day want to maintain or increase their profit they will have to be able to open hours suit customers, use clear displays, service customers quickly, have all sorts of payment methods and have helpful sales staff. The Internet is the most recent innovation in sales promotion. Hobson’s and Mr. K. Day promote this way. Most organisations use loyalty cards. If Hobson’s introduced this system then they would be able to tell a lot more about customers from this card like:
- Where they live?
- What they buy?
- How often they shop?
- How much they spend?
- What products are more popular?
Some advantages of sales to a retailer are: Retailers get more customers, gain more information about individual shoppers and it can be quicker for a personnel shopper. Some disadvantages of sales to a retailer are: Having delivery people and paying them, the internet system might break down so customers will start to loose out and start to dislike the company and consumers cannot be influenced by in store advertisements or impulse buys.
Some advantages of sales to a customer are: Purchasing is easier, do not have to leave home and saves time. Some disadvantages of sales to a customer are: An order may be wrong when it arrives and the customer details are taken.
Some advantages of sales tradition shop are: If orders are regally incorrect, customers will return them, face-to-face service and less stressful. Some disadvantages of sales to a traditional shop are: Loosing customers, loss of profit and if the shop closes dow there will be a loss of jobs.
Customer service.
Hobson’s and Mr. K. Day depend on customers because if there are no customers then there is no profit and both companies want customers to buy their goods and use their services. Customers in return will want the goods and services to be at a quality standard, to be treated well, polity assisted with honest opinions and information, good value for money, good after sales service, they want products to be in the right place at the right time and services to turn up at the right time. Customer service can be extremely important for customers when they are deciding between two rival firms. Hobson’s and Mr. K. Day provide a ranger of services for their customers in order to develop a good relationship with the customers. These services are:
- Information
- Advice
- Delivery
- After Sales
Information:
Customers will ask for information before they make a purchase so customers can compare Hobson’s and their rivals and A&B and their rivals. The price of the product or service matters a great deal. Mr. K. Day and A&B are at the moment in a price war with other taxi firms such as Inca cars and the council cabs. The performance of the product and service will be questioned.
Advice:
When buying something for the first time from Hobson’s, customers will ask for guidance from staff. Advice is usually asked when it involves expensive and large products. A sales assistant will help customers in this situation. If a customer hears good advice then this will customers buy products from Hobson’s and also purchase in the future.
Delivery:
Hobson’s and Mr. K. Day both run a delivery service. Hobson’s and Mr. K. Day’s customers will take kindly to this. This will also gain more customers, as all the customers have to do is wait in doors and wait for the delivery to turn up. Mr. K. Day’s system of delivering is different. A&A and Mr. K. Day do not produce products. A customer will ask for a parcel to be picked up and delivered to the customers address. This to Mr. K. Day is just like picking up a customer and is the same rate as a customer’s rate would be. Sometimes Hobson’s may have a free delivery service depending on the circumstances.
After sales:
After sales are how well one of Hobson’s customers is treated after they have bought a product from Hobson’s. More expensive products are more likely to be found to be offered with an after sales service. Mr. K. Day does not run an after sales service because he doe not produce large or expensive products.
The use of ICT.
Hobson’s can reduce the cost of running the business and can improve the goods and services they sell through the use of ICT. Hobson’s can do this in four ways:
- Electronic communications
- Sharing of common data
- External communication
- Security communication
Electronic communication:
E-mail, telephone, touch tone, mobile, text message, Internet, Intranet, fax and video conferencing can all be used as electronic communications. Hobson’s use all of these but Mr. K. Day does not use fax, video conferencing, touch tone and the Intranet.
E-mails advantages and disadvantages:
E-mail is cheap and is very quick and a good communication for Hobson’s and Mr. K. Day. If e-mails are confidential then someone can hack into their account and read the e-mails and if Hobson’s and Mr. K. Day are deleting e-mails they may accidentally delete an important e-mail.
Telephones advantages and disadvantages:
Hobson’s and Mr. K. Day can both communicate a lot quicker. They can also communicate quicker abroad. This communication is also easier for customers to communicate with Hobson’s and Mr. K. Day. Hobson’s and Mr. K. Day may forget the conversation that they had and if the telephone call is confidential than someone may be listing to the conversation.
Touch-Tones advantages and disadvantages:
Touch-tone is easier for customers and will save Hobson’s a lot of money, as they do not need to pay a wage for people on the phones. Customers will be angry with the phone call as it may take a long time and also cost customers a lot of money.
Mobiles advantages and disadvantages:
Hobson’s and Mr. K. Day can pick up a mobile or receive a text message at any time. This one of the most best forms of communication for both Hobson’s and Mr. K. Day. Customers may get angry at the phone bill and if the phone call and text message is confidential may read the text message or listen to the phone call.
The Internets advantages and disadvantages:
Hobson’s and A&B can both advertise on the Internet and can also search for other rival business and see what the rivals are offering. The Internet may crash or be slow and rival business can find out what Hobson’s and A&B are advertising.
The Intranets advantages and disadvantages:
Messages and information can be posted and accessed by employees quicker than a notice board. The Intranet is restricted to employees and Hobson’s and it may crash or the system may go down.
Faxes advantage and disadvantages:
Faxes can be received quicker than a letter. Faxes can be lost if Hobson’s receive a lot of them and a fax is also slower than a phone call.
Video conferences advantages and disadvantages:
Video conferencing is cheaper than making a trip abroad and is also at a better quality than web-cam. Video conferencing equipment is very expensive.
Sharing common data.
A way of sharing common data is using a database. Ways of making people know of this information is linking computer systems to certain departments. Mr. K. Day only needs to use one computer so all his information will be kept on that one computer. A computer may have finance information on it. This information will need to be linked to the finance department. Information kept on customers on a computer would need to be linked to the research and development department and so on. This system is very expensive but reliable.
Security systems:
Cameras should be linked to computers. Cameras can also be linked to video recorders so they can tape the days they are opened. Hobson’s use the system called Back-Up copies. Back-Up copies are copies of the days saved to floppy disc or CDs and also saved on the hard drive and a videotape. Passwords should be kept on all confidential files in Hobson’s. Both Hobson’s and Mr. K. Day need to have alarms on their properties. This is because they don’t want their property broken into and gear nicked from them, as this could be costly.
External communication:
E-mail, websites and telephones are all used as external communication. E-mail is cheap, can contact colleagues and customers and the other way round and also can be used to conduct market research. Websites can encourage customers by Hobson and A&B advertising. Telephone is used to contact customers and colleagues and can be used the other way round.
Online services:
Hobson’s have online facilities for customers to track down the parcels of the customers. FedEx express is a van company who Hobson’s to deliver parcels. On Hobson’s website, customers can find out where their parcels are. This also applies to aeroplanes, trains and ships. A&B can find the nearest taxi driver to the customer that needs to be picked up. Not only is this online but also even in the cab. A&B will click on the nearest driver and Mr. K. Day can either take the job or pass the job on to the second nearest driver. This will then go back to A&B while they are on the net and then they will try and get the next driver. A&B are always online for this reason.
Electronic transactions:
Computers can process payments or wages, orders made by customers and stock control. Normally, employees would have to write down on paper. The staff that would do that is Clerical Staff but typing on computer would make it easier and quicker.
Industrial relations:
Industrial relations needs to be kept at a good level and is under The Human Resources control. Industrial relations are discussions between representatives of Hobson’s and representatives of Hobson’s employees. Employees are represented by Trade union officials. Discussions involves a number of aspects to do with work, which are:
- Wage and salary rates
- Health and safety at work
- Training entitlement
- Working conditions
- Hours of work
- Holiday entitlements
- Retirement arrangements
- Procedures for setting grievance or disciplinary matters
- Procedures for dealing with redundancy
Administration and IT support.
The Administration department along with IT support help Hobson’s and Mr. K. Day to run smoothly from day to day. The administration department needs to carry out a lot of tasks, which are:
- Clerical work
- Cleaning and maintenance
- Health and safety
- Security
- Support for software applications, electronic communications and electronic transitions
Clerical work:
Clerical will involve a lot of things to do information and different types. Both Hobson’s and Mr. K. Day need and have to carry out Clerical work. This will involve mail, keeping records, filling, logbooks, references and organising meetings.
Both Hobson’s and Mr. K. Day are always receiving mail about different forms of business. For Hobson’s this may include things like bills, complaints and complements about products and service and also delivery of material or notification. If Hobson’s have mail they need to sort the mail into different departments and give it to the varies departments. Mr. K. Day may receive mail such as bills, parcels to do with his job, complements and complements about his service and notification to Mr. K. Day about times to pick a customer up. If Mr. K. Day gets mail he will just open it and read and sort out what ever needs sorting if anything.
Keeping records:
Keeping records for both Hobson’s and Mr. K. Day is very important. Hobson’s may keep records on customers, bills, deliveries going out, stock and deliveries coming in. Mr. K. Day may want to keep records on customer, money coming and out daily, bills and deliveries he has done.
Filling:
Filing is one of the most common ways of storing written papers. Hobson’s file all written papers in a filing cabinet or cupboards. Mr. K. Day only puts written papers in a cupboard inside folders. Documents can be arranged in several ways:
- Alphabetical: Documents arranged in alphabetical order in, order of name, or the subject. This follows the order of alphabet.
- Chronological: Documents are arranged in the Time or Date they arrived or were sent.
- Geographical: Documents that are in order of the Town, City or Country they were sent or received.
Logbooks:
A logbook is kept to record chosen activities like deliveries. Hobson’s do this but Mr. K. Day keeps his entire activities recorder in a diary. Logbook can also be kept for post, visitors and actions so information can be tracked down when it is needed. Hobson’s does all this but Mr. K. Day doesn’t.
Reference:
Hobson’s write certain reports about business. Mr. K. Day does not write references. They can get information from books, reports and people. Hobson’s need to include in the report the resources that they got the information from so that readers can check the actual references to see if the opinion was the same as they reported.
Organising meetings:
Meetings can vary from two people being involved to the whole of Hobson’s being involved which are a rarity. Mr. K. Day may also need to arrange or be involved in a meeting. Mr. K. Day may call a meeting between him and his accountant or A&B may call a meeting for all Taxi drivers or just a few or one. Small meetings are usually more successful then bigger meetings. An advantage of having a meeting is that part of Hobson’s get to talk in a different environment and everyone can express their feelings. A disadvantage of having meetings are that they can be called to much and take employees away from their work. An agenda is a documents is written and sent before the meeting and says what will be discussed. This also contains the time, date and place of the meeting. Most meetings have a Chair who makes sure the meeting goes smoothly. They may also restrict the amount of times a person can speak. A secretary takes notes from meetings Mr. K. Day does not have all this unless A&B call a meeting. Mr. K. Day has a secretary in case of this.
Cleaning and Maintenance.
If Hobson’s and Mr. K. Day have well cleaned premises it will be safer and customers coming in to Hobson’s and Customers using both Mr. K. Day’s services and Hobson’s services will be impressed. Hobson’s need to make sure that their premises are safe for employees to work in. Escape routes and fire exits need to be kept clear and marked. Outside The premises routes for traffic and pedestrians should be clearly marked. Two sorts of traffic should be separate and clear. This is important for Hobson’s to do this as they have big premises and need to have directions.
Security.
Hobson’s and Mr. K. Day need to secure their premises. The damage that is caused could make a lot of deference make a deference to the way the business is run. Cabinets, cupboards, windows and doors should all be dealt with. Mr. K. Day’s taxi needs to be locked, windows closed and an alarm on the car. Computers in Hobson’s and the computer that Mr. K. Day should have passwords on. Alarms on both Hobson’s and Mr. K. Day’s alarms should be on when no one is present (Including Mr. K. Day’s house). Cameras can be used in Hobson’s but not Mr. K. Day’s business.
Support for software applications.
The use of computers is now widespread. Both Hobson’s and Mr. K. Day both use computers for different reasons. Most business employ specialist technical staff. To ensure that computers and software are installed properly. Hobson’s do this but there us no need for Mr. K. Day as he knows a lot about computers and is a small business.
Health and Safety.
Health and safety regulations should be made clear in the training of staff and any Hazards marked clearly in both businesses. Mr. K. Day only needs a few Health and Safety signs because he is a taxi driver for example “No Smoking” and “Seats belts on”. Hobson’s need to take more responsibility in there accident protection.
Reporting accidents:
Hobson’s do have an accident book but Mr. K. Day doesn’t because he has no employees but he does have accident insurance, which he can claim if he is incapacitated or enable to carry out his duties. Mr. K. Day cannot claim if he has the common cold. Administration staff in Hobson’s must ensure that there is a system where accidents can be recorded. The most common way is to have an accident book but some businesses have a special form to fill out when accidents occur. There is information, which is needed on the form or accident book, which is:
- Who was injured?
- What their injuries where?
- Who dealt with the matter?
- Names of witness
- Date and time of the accident
- What caused the accident?
- How the accident was dealt with?
If there is more facts reported than Hobson’s then can plan to stop the accident happening again. Sometimes an employee working for Hobson’s may want to use the information for legal purposes. Hobson’s can prevent accidents in many ways:
- First aid equipment should be available and marked clearly.
- Protective equipment should be suitable for the job.
- There should be an adequate supply of drinking water and suitable toilets and sanitary arrangements.
- Office workers should avoid trailing wires across spaces between desks.
- Boxes and files should not be stacked on top of cupboards.
- All draws should be kept shut when not in use.
- Try and make sure the cabinet is not overloaded and falls over.
- Computer screens to not be to bright or to dim.
- All materials or objects to put away and not left on the floor or in the way.
Research and Development.
Hobson’s and Mr. K. Day cannot succeed unless they both conduct Research and Development. All products are on a cycle called “The Product cycle”. Here is the product life cycle and an example, which is.
This diagram is of a product life cycle. The product at first needs to be developed then after it has been developed the product needs to be introduced. After the product has been introduced then the growth of the product is very important, as a business wants to make profit. A product will then be at its peak during the stages of Maturity and the saturation. After the saturation stage the product will start to decline and in the end die out. The product may if it is a good one and the business improves the quality of the product.
When Hobson’s and Mr.K. Day Research and Develop they both need to consider three things, which are:
- Price
- Profit
- Practicality
Price:
Products and Services that are produced by both Hobson’s and Mr. K. Day need to be at the right price for customers. Customers want good quality products and services and Hobson’s and Mr. K. Day want to make a profit.
Profit:
Any new service or product that is produced by Hobson’s and Mr. K. Day must be profitable. There is often some sort of competition for the product and service produced by other rival companies, which means that the product and service produced by Hobson’s and Mr. K. Day must be at a better quality than the rival.
Practicality:
Coming up with an idea for a product and service is one thing but when it comes to making the product and service it is different. The new idea for a product and a service is only useful if it can be done on a commercial scale. Another consideration is that the idea is only practical if the customer is likely to buy the product or use service.
The Research and Development department needs to also communicate with other departments. Research and Development department need to communicate with the IT department because of the computer part of it and communicate with the Market and Sale department to help research in the department. They may also need to link with the Finance department so they can monitor the finical state of Hobson’s and Mr. K. Day. This department will also need to link with the administrations department.
Business communication.
Communication is the passing on or exchanging of information, ideas or feelings. Employees in Hobson’s must communicate:
- Within their functional areas.
- Outside their functional area.
- Outside the business.
Communication can take place in a number of ways in Hobson’s and Mr. K. Day’s business. The main ones are:
- Oral communication
- Video communication
- Written communication
- Graphical communication
Internal communication:
Internal communication will include:
- Written: Letters, memos, advertisements, agenda & minutes, in-house publications, Newsletters, reports, poster, notice boards and E-mail.
- Verbal: Meeting, committees, team, telephone and mobile phone quality circles and face to face.
- Visual: OHPs, TVs, multimedia, slide presentations and web cam.
The purpose of internal communication is to send messages and gather and send information, start action quicker, influence the action, give reassurance and classify issues and points. The advantage of internal communication could be if the information is confidential then it will keep confidential and only employees will know. Hobson’s will use letters, memos, advertisements, newsletters, reports, e-mail and notice boards. Mr. K. Day may want to communicate with A&B wile he is out at work. To do this he has to use a radio or his mobile phone. He may also
External communication:
External information will include:
- Written: Letters, memos, advertisements, reports, E-mail, business newsletter and customer newsletter.
- IT: Networks, WWW, CD-ROM, video conferencing and E-mail.
The purpose of external information is to provide information and give instructions. They also want to confirm public arrangements. They may also want to improve the Hobson’s and Mr. K. Day’s business and certain parts of them.
Both Hobson’s and Mr. K. Day may want to communicate within their different functional departments.