IMPROVING BUSINESS Performance 2 Essay Example | Topics and Well Written Essays - 3000 words

IMPROVING BUSINESS Performance 2 - Essay Example Each division is independent of the others and does have its own profit and loss account besides their own balance sheets. Each division’s balance sheet and profit and loss and account are then merged with the others to form a single balance sheet and profit and loss account for the group’s final accounts. Due to the problems brought about by some internal factors in each division, the most recent final records for the company show a turnover of 700 million pounds and a pre-tax profit of 35 million pounds. This compares dismally to the previous years when the amalgamated records were better than this (Dresner, 2008, p. 78). Pipework Plc has great potential as far as its business model is concerned compared to what the market and its competitors. Its diversity in both the drainage and boilers businesses give it an edge on the competition where most of the companies competing with it. There are several areas that this company can improve to gain even a greater edge in the three business divisions it focuses on. These improvements all aim at ensuring that the business outdoes the rest while improving its operations in the pipes and boilers businesses. Some of the areas to be improved include; The Stores Function – the stores function is one of the main areas to focus on for Pipework Plc. The fact that it has an excellent employee by the name of Wise does not make it indomitable since there are many problems associated with the division. There is the case of its budget for further training of its personnel always being rejected in favor of other divisions. There is also the stock turn on materials that is poor. If the correct methods are used, this area will have less problems and more contribution to the firm’s well being (Baxter and MacLeod, 2007, p. 74). Transport – this department has great potential if only the correct procedures are followed and the United Kingdom and European Law are followed. Drivers would be more transpar ent as to the number of hours worked and thus their correct remuneration. Engineering – this department is quite fine in its operation save for the lengthy period required to churn out a new product. If this time is reduced by half, it would match that of Pipework Plc’s main competitor and generally improve the business. Sales and Marketing – this department of the company does quite well since it has ensured a great market presence for the company though its personnel and the department’s head. It should be known though that there is need to reduce the number of days and the general amount of time used to process orders from customers. Finance and Administration – this department needs to follow the required accounting procedures and reduce the number of days taken to clear invoices to ensure a more transparent department (Andersen, 2007, p. 100). Personnel – the fact that Lynette promotes those under her division based on personal observat ions raises questions as to the validity of these promotions. Payments and rewards for staff should also be normalized to eliminate unnecessary disparities. The widespread favoritism should also be eliminated to allow for a harmonious motivation of the department and the company as a whole. PIPEWORK PLC With the correct methods in place, Pipework Plc is poised to make the most of its market presence and get better returns on its investments. As identified above, there are several