Chapter 4 - 1

Chapter 4

Rhetorical Purpose Questions

01 Business

Identifying Problem in Business

One of the most important tasks for managers in a business is to identify problems.

While employees can typically be relied upon to perform their day-to-day duties, few have time to recognize potential issues that the company may face in the future.

For managers, knowing how to spot particular trends that may have a negative impact on business is the key to avoiding negative outcomes.

The first set of situations that managers should watch for is simple deviations from the norm.

Past experience is the best indicator of what “the norm” should be.

If, for instance, a toy company has made sales of five million dollars quarterly for the past several years, it can expect similar sales to continue.

If sales drop dramatically for one or more quarters, managers should attempt to discover the source of the decreased sales.

Perhaps a competitor has released similar toys, or the tastes of children have shifted and the toys are no longer wanted.

Whatever the case, it is the duty of management to discover the change responsible for the deviation and address it.

Another method of discovering a problem that may face a business is by noting the behavior of others.

Employees may warn managers of a fault in their system that could pose problems to the business in the long term.

Staff members may begin resigning, or those in upper management might shift their strategy.

The behavior of other people, independent of simple sales numbers, is a fundamental part of understanding problems that may face the business.

Managers must be willing to do their part in addressing these issues.

Other employees typically lack the power within the business to make the necessary changes.

If, for example, a business gets an increased number of customer complaints concerning unreliable shipping, it is the responsibility of the manager to address the problem.

By understanding other people’s motivations for acting a particular way, managers can counteract potential problems.

Finally, the performance of the competition provides the most obvious sign of potential problems in a business.

If the competition begins reporting higher earnings or sales, managers should study the competition.

They may see what their businesses can do to remain competitive.

As well, managers should also identify shortcomings of competitors.

If a competitor sees a dramatic decrease in sales, a savvy manager will attempt to discover the source of the competition’s failure.

By understanding the mistakes others make, managers can help their businesses avoid making the same errors.

Naturally, it is impossible for managers to identify all of the problems that a company may face.

In addition, solutions may vary depending on the values and past experiences of a manager.

It is an intuitive process that cannot be made clear with simple equations.

In fact, many managers stumble upon problems before they become apparent in sales numbers or other formal data.