Risks and problems are commonplace in organizations, and they have adverse impacts on organizational processes and operations. One of the strategies for identifying or singling out organizational risks or problems is assessment. Risk assessment is considered an essential component of any management decision as it helps the management to identify, analyze, and find solutions to organizational risks or problems (Frigo & Anderson, 2009). In the case of Bartaco, assessment has revealed that its primary problem us the lack of adequate capital that has adversely affected the level of performance across various fields such as payment of staff members, expansion of the menu, and achievement of its expansion plan. It cannot be doubted that Bartaco has continuous process improvement (CPI) plans like every other organization focusing on profitability and competitiveness. CPI, in essence, is a long-term effort aimed at discovering and eliminating organizational problems and their main causes. CPI often begins by the setting up of a Steering Committee (SC) that is then tasked with finding specific solutions to existing problems (“Continuous Process Improvement,” n.d.).
In this case, Bartaco’s SC should consider specific solutions to the lack of adequate capital, which is one of the biggest problems an organization can ever face. First, its management should consider reviewing, revamping, researching, and rewriting the company’s business plan (Hopkins & Hopkins, 2006). Before experiencing the problem at hand, Bartaco was considered the best in Birmingham with developed growth prospects that aimed at internationalizing operations. However, there is the likelihood that the company stuck to its initial business plans despite the withdrawal of one of its partners. This means that the company could be catering for several expenses amidst a decreased supply of capital. Second, Bartaco’s SC can consider seeking loans and grants from financial institutions to help boost the company’s financial stability (Hopkins & Hopkins, 2006). As expected, markets experience changes such as a decrease or increase in customers, periods of economic depression, and increased competition due to the rise of companies offering similar products and services to consumers. The persistence of the problem at Bartaco is attributed to the dynamics of the market such as recording an increase in the number of customers. This implies that the company has to expand its services despite the withdrawal of one of the partners who undoubtedly played a significant role from a capital perspective. The fact that Bartaco was one of the best performing firms in Birmingham but now faces the lack of adequate capital could see the focus shift on the management of finances. Several organizations have failed as a result of poor management of finances, which is primarily associated with ignorance on the part of an organization’s management or leadership. Thus, the management of Bartaco should consider educating all stakeholders on effective financing. This could see the company reduce overspending or the allocation of funds to unnecessary operations or activities, which might have resulted in the lack of adequate capital (Hopkins & Hopkins, 2006).
In a nutshell, solving organizational problems such as the lack of adequate capital require a combined effort involving all stakeholders from the managers to staff. The solution of problems or risks in organizations forms part of their CPI. CPI occurs in stages with the first stage being the setting up of a Steering Committee (SC). Bartaco’s SC must consider various solutions to the persistent lack of adequate funding that has adversely affected its performance across numerous fields. Its SC can consider reviewing, revamping and rewriting its business plan, seeking loans and grants from financial institutions, and educating stakeholders on issues related to financing.
Continuous Process Improvement (n.d.). Retrieved February 27, 2018, from http://nwlink.com/~donclark/perform/process.html
Frigo, M. L., & Anderson, R. J. (2009). Strategic risk assessment. Strategic Finance, 25-33. Retrieved from http://www.markfrigo.com/7_Strategic_Risk_Assessment_-_Strategic_Finance_-_Dec_2009_without_Cover_-_Frigo___Anderson.pdf
Hopkins, S. J., & Hopkins, S. D. (2006). Crafting solutions for troubled businesses: A disciplined approach to diagnosing and confronting management challenges. Washington, D.C: Beard Books. Retrieved February 27, 2018, from https://books.google.co.ke/books?id=_2OygSQ4rpIC&pg=PA112&dq=Solutions+to+the+lack+of+capital+in+organizations&hl=en&sa=X&ved=0ahUKEwip3K_95cfZAhUPsKQKHbhTBLYQ6AEILTAB#v=onepage&q=Solutions%20to%20the%20lack%20of%20capital%20in%20organizations&f=false