Family business is definitely a strength for RCDC as in a family owned business ,the owners view their as an asset to pass on to their descendants rather than wealth to consume during their lifetimes (carron,1999).In addition,as recently argued by Zellweger(2007),the extended time horizon that characterizes family firms reduces the marginal risk of an investment and therefore the corresponding risk-equivalent cost of equity capital (McNulty,Yeh,schulze and Lubatkin,2002).Consequently,family owned firms can seize investment opportunities their non-family competitors do not consider as sufficiently attractive or consider too risky;”such a situation offers family owned firms the possibility of developing their activities unhindered by aggressive competitors and of conquering markets that competitors cannot enter”(Zellweger,2007,p-9) Moreover,families may bring with them significant financial and physical resources,called “survivability capital”(Simon and Hitt,2003),which can be used to sustain the business during economic hardship or after unsuccessful strategic movies (Dyer,2006).These elements are usually known by customers and suppliers,who may establish and cultivate long-lasting relationships because of the goodwill and trustworthiness generated by the family commitment (dollinger 1995). 2)Strong Criticism from shareholders: The continuous negative feedback from directors of warwick investments regarding the poor dividend payment record and the lack of strategic direction is actually a strength of RCDC as it acts as a drive for improvement .It is because of this critism and the drop in turnover that the Lancasters and Yorks are trying to find every possible way to save their business and satisfy the stakeholders. 3)Longterm experience in the dry cleaning business: As per the case RCDC has been in the dry cleaning business for more than a decade and they have managed to run the business reasonably well which means that they have had a good market share and enough customers to patronize and a fairly good knowledge of the particular business.
Don’t waste time! Our writers will create an original "Swot Analysis For Different Business Types Business Essay" essay for you whith a 15% discount.Create order
They can use this experience to overcome the weakness’s and excel in their traditional business. 4)Flexi-timing: The RCDC has got boh full time and partime staff which is a strength as it increases the employee morale ,engagement and commitment to the organisation.It reduces the absenteeism to a certain level and increase the chances of recruiting outstanding employees.It even helps in reducing the staff turnover and developing the image of the employer.
1)High staff turnover: As mentioned in the case, RCDC is facing a hgh level of staff turnover at both staff and managerial level which is one of the causes of the reduced organisational performance .Excessive employee turnover can hurt the overall productivity of a firm and is often a symptom of other difficulties.Every organisation strives to have high productivity,lesser turnovers and maximum profitability.managing turnover successfully is a must to achieve the above goals.Abassi and Hollman(200) stressed that the managers must recognise the employees as major contributor to the efficient achievement of the organisations success.Furthermore,highly motivated and performing individuals are the crucial factors of the organisational productivity.
We will send an essay sample to you in 2 Hours. If you need help faster you can always use our custom writing service.Get help with my paper