Company analysis is a process carried out by investors to evaluate securities, collecting info related to the company’s profile, products and services as well as profitability. It is also referred as ‘fundamental analysis.’ A company analysis incorporates basic info about the company, like the mission statement and apparition and the goals and values. During the process of company analysis, an investor also considers the company’s history, focusing on events which have contributed in shaping the company.
Also, a company analysis looks into the goods and services proffered by the company. If the company is involved in manufacturing activities, the analysis studies the products produced by the company and also analyzes the demand and quality of these products. Conversely, if it is a service business, the investor studies the services put forward.
The process of conducting a company analysis involves the following steps:
- The primary step is to determine the type of analysis which would work best for your company.
- Research well about the methods for analysis. In order to perform a company analysis, it is important to understand the expected outcome for doing so. The analysis should provide answer about what is done right and wrong on the basis of a thorough evaluation. It is, therefore, important6 to make the right choice for the analysis methods.
- The next step involves implementing the selected method for conducting the financial analysis. It is important for the analysis to include internal and external factors affecting the business.
- As a next step, all the major findings should be supported by use of statistics.
- The final step involves reviewing the results. The weaknesses are then attempted to be corrected. The company analysis is used in concluding issues and determining the possible solutions. The company analysis is conducted to provide a picture of the company at a specific time, thus providing the best way of enhancing a company, internally as well as externally.
Style of Management
Management consists of the planning, prioritizing, and organizing work efforts to accomplish objectives within a business organization. A management style is the particular way managers go about accomplishing these objectives. It encompasses the way they make decisions, how they plan and organize work, and how they exercise authority.
Management styles varies by company, level of management, and even from person to person. A good manager is one that can adjust their management style to suit different environments and employees. An individual’s management style is shaped by many different factors including internal and external business environments, and how one views the role of work in the lives of employees.
Factors that shape the management style
Internal company factors that determine a management style include, but are not limited to, policies, priorities, corporate culture, staff skill levels, motivation and management structures.
In order to be effective, a manager’s style and outlook must fit into the business’s organizational culture. Their style must adhere to the policies and procedures set forth by the organization, and they must be able to achieve company objectives. They are responsible for controlling an effective work team and must uphold organizational beliefs within that team. A manager who cannot do this would likely be deemed ineffective and be removed from the position.
External factors affecting management styles are those that are outside of the control of the organization. These include, but are not limited to consumers, suppliers, competitors, the economy, and the law.
Some examples of these factors are a competitor who offers a more autonomous environment for skilled employees and control the job pool; the economy for a specific manufactured good results in a spike in demand causing a production crisis; the laws for a specific industry change and require employees who have extensive knowledge and certification causing the company employees talent and motivation to change.
Democratic management style
The democratic management style is rooted in collaboration. These types of leaders seek input from their employees before making business decisions or delivering solutions. They engage employees by remaining open to new ideas and experimentation and granting employees the freedom to use their voices to share their opinions. This style of management can create strong bonds between employees and leaders.
Laissez-faire management style
Laissez-faire leaders are hands-off and maintain a high level of confidence in their employees. Leaders who adopt this management style don’t micromanage their employees and grant them freedom to work on their delegated tasks independently. The laissez-faire leadership style works best when managing highly experienced professionals. When these self-disciplined employees are given more autonomy, they often demonstrate greater initiative.
Autocratic management style
An autocratic management style is centered on results and efficiency, and usually devoid of employee collaboration and autonomy. An autocratic style leader believes in micromanaging employees to ensure they follow company policies and rely on authority to provide instruction. Some aspects of this management style may be useful in an emergency when unexperienced employees need clear, strict expectations to solve a particular problem.
Charismatic management style
Leaders who follow a charismatic management style are charming, highly persuasive and deeply committed to their cause. Charismatic leaders are also interested in building personal relationships and rallying their team around a common goal. This style of management is useful for helping employees feel supported, highly engaged and motivated toward achieving business objectives.
Coach management style
Leaders who use the coaching management style often possesses qualities similar to a sports team coach. They’re dedicated to their employees’ ongoing development and can quickly identify what motivates each employee to succeed. A coaching leader is skilled in recognizing each employee’s unique strengths and weaknesses and determining how to help them become better professionals. They often push employees to complete more challenging tasks that further develop their talents and improve their areas of opportunity.
Pacesetting management style
Leaders who practice the pacesetting management style often set high standards for their team and are especially concerned with speed and efficiency. These leaders are always seeking new ways to become more productive and expect the same of the employees they manage. This management style can help build trust among employees who recognize their manager adheres to the same standards they set for their team but can also make employees feel overwhelmed by demands.
Bureaucratic management style
Leaders who adhere to the bureaucratic style of management focus on assigning specific duties to employees within a well-defined hierarchy. They’re less concerned with collaboration and more interested in following rules and procedures. Bureaucratic leaders assign each employee a set of responsibilities and independent tasks, and all work is streamlined from top to bottom. This style of leadership is useful in heavily regulated industries, but less effective in creative environments.
Transactional management style
Leaders who follow a transactional management style enhance employee performance with positive rewards like bonuses and incentives and respond to negative outcomes with disciplinary action. They often act as mentors and provide explicit instruction to help increase performance and ensure employees consistently meet expectations. This style of management is highly effective in helping teams hit sales and revenue goals, but less useful for leading teams or departments focused on driving innovation.