Small Business Analysis Essay

Decent Essays
Small Business Analysis

LDR 531 Organizational Leadership

Small Business Analysis The Small Business Administration of the United States federal government defines as a small business “…as one that is independently owned and operated, is organized for profit, and is not dominant in its field (SBA, 2012).” In the area of “services”, although there is mostly no limit on how many employees form part of the business, annual receipts may not exceed $2.5 to $21.5 million depending on the type of services being rendered (SBA, 2012). In this small business analysis paper, the business profile of Shampoo, a local beauty salon and spa business will be analyzed and its organizational structures will be discussed in depth.
Business Profile
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Organizational Structure Shampoo’s organizational structure is a flat line organization. This type of organization has the advantages of being more available to the needs of the costumers and empowers the employees to make small decisions on their own (Nickles, McHugh, & McHugh, 2010). Its employees have their areas of responsibilities assigned to each and they concentrate on accomplishing their tasks and contributing their part in the service process. The oversight is provided by a floor leader that is also an employee with assigned but more administrative tasks, such as: purchasing required materials, administrating the cash register, and maintaining the appointment’s calendar. The business owners filled in the role of company management, as they provided the necessary facilities and utilities, and constantly measured the costumer feedback and evaluations in order to ensure that the employees performance are in line with the business vision.
Business Practices In order to accomplish the business mission, that is to treat every client as a star, the leader ensured that every employee’s actions were in keeping with the mission statement through a costumer feedback comments box. This box was reviewed daily on every close of business to ensure costumer satisfaction was met or exceeded. Throughout the span of the business, the owners have found that the employee’s actions have always met or
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