Strengths and Weaknesses of Small Business Enterprises

SMALL BUSINESS
ENETRPRISE

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
1.1 Strength and Weakness of the small business enterprise......................................................3
1.2 Analysis of the business using comparative
measures of performance...........................................................................................................4
TASK 2............................................................................................................................................5
2.1 Appropriate actions required to
overcome the identified weaknesses in the business..................................................................5
2.2 Ways in which existing performance could be
maintained and strengthened......................................................................................................5
2.3 New areas in which the business
could be expanded......................................................................................................................6
TASK 3............................................................................................................................................7
3.1 Assessment of existing business objectives and
plans...........................................................................................................................................7
3.2 Revision of business plans to incorporate appropriate changes...........................................8
3.3 An action plan to implement the changes.............................................................................9
TASK 4............................................................................................................................................9
4.1 Impact of the proposed changes on the business
and its personnel.........................................................................................................................9
4.2 Planning of how the changes will be managed in the business...........................................10
4.3 Improvements in the performance of the business..............................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Today the business environment is in very fluctuating situation. There are many
business organisation who affect the market atmosphere especially the small business enterprises
(Ackermann and Audretsch,2013). The small business enterprises are in a huge number in the
today market and they contribute in the economy as well as them society in many ways. In the
following report the strength and the weakness of the small business enterprise will be discussed.
There are many performance measures which can be used to analyse the effective and
drawbacks of the small business enterprises. The enterprise can utilise some important action to
overcome the weakness which affects the business in a negative way.
The existing performance of the business can be improved and maintained by some
strategic plans. The small business enterprise can explore the new areas in which it can develop.
There are some crucial objectives and goals for which the small business enterprise runs its
business. The company can make appropriate changes in the business plan for betterment and an
action plan is required for that. The changes in the business can have the positive as well as
negative impact on the business of the company. The organisation has to monitor its existing
performance to make improvement if needed.
TASK 1
1.1 Strength and Weakness of the small business enterprise
A small Business enterprise has tits own strength and weakness which affect its business
to an extent. The strength of the small business enterprise like Nisa includes the effective and
beneficial capabilities and positive side of the business of the company which contribute in
achieving its goals and objective (Altman,Sabatoand Wilson,2010). There are some strength of
the business organisation Nisa like it has the effective resources which help the company to
process fast and complete its activity to create maximum customer satisfaction.

Another strength of the small business enterprise like Nisa is that it has innovative
product range which provide new thing to the customers. The quality of the product of the
company is also a strength of it which contributes in creating goodwill of the company in the
market. The strength of the company includes the full concentration on the customer queries and
problem so that they can be fully satisfied with the service of the business organization.
Apart from the strength the small business organisation has its own drawback like it has
tiny range of the product so the customers have a little choices in related to buying product. The
small business enterprise like Nisa has the less management of the business as it has less staff
member in the company (Bridge and O'Neill,2012). The small business enterprise has the
weakness of capturing a negligible share of the market. It make them ineffective in the market
place.
The few resources for the business is another weakness of the small business enterprise.
This limited amount make it difficult to run the businesses for the small companies. To retain
the customers for long period is the biggest weakness and the negative side of the small business
enterprise because they can not create a goodwill like large scale business enterprises. The weak
point of the company is that it has few financial support by the investors as its investors are
mostly families or relatives of the owner of the company. Thus the small companies have the
strength as well as weakness being a small size unit in the competitive market.
1.2 Analysis of the business using comparative
measures of performance
The small business enterprise can measure its performance to make sure that it is leading
tom the growth and will achieve the objectives and goals in the future. The Nisa can check its
continue growth or any drawback in the business to rectify it and make the business process
smooth (Burns,2010). Some of the comparative measures of performance of the small business
enterprise are questionnaire, interview, data analysis, closed group survey or statistical data
analysis. analysis of final account , financial statement like cash flow, sales book, purchase book
or by analysing the records regarding the complaint of then customers. The first comparative
measures of the performance of the business is questionnaire in which some fix pattern of
questions are asked to the customers as well as employees of the company. From the response of
the customers and employees it is resulted that if any negative point is found then the company
make effort to improve or correct it to achieve its goals in the long term.