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Towards a Global Competitive Analysis of Entrepreneurship and SMES

   

Added on  2020-04-15

21 Pages5588 Words384 Views
Running head: ENTREPRENEURSHIP AND SMESEntrepreneurship and SMEsName of StudentName of UniversityAuthor Note

1ENTREPRENEURSHIP AND SMESTable of ContentsIntroduction................................................................................................................................2Identification of the problem......................................................................................................3Identification of theories............................................................................................................5Application of theories...............................................................................................................5Pestle analysis............................................................................................................................5Political:.................................................................................................................................5Environmental:.......................................................................................................................6Social:.....................................................................................................................................6Technological:........................................................................................................................6Legal:......................................................................................................................................6Economical:............................................................................................................................7Competitive analysis..................................................................................................................7Conclusion of Competitive analysis.......................................................................................8Porter’s five forces.....................................................................................................................9Threat of Substitution...........................................................................................................10Supply power.......................................................................................................................10Buyer power.........................................................................................................................10Threat of new entrants..........................................................................................................10Identifying specialist and non-specialist audiences.................................................................11Recommendation......................................................................................................................13

2ENTREPRENEURSHIP AND SMESConclusion................................................................................................................................15References and bibliography....................................................................................................16

3ENTREPRENEURSHIP AND SMESIntroductionEntrepreneurship refers to the process of launching, designing and running a business,offering a huge range of products and services to the target customers. The individuals, whocreate a business, be it small or big, are called the entrepreneurs. The term entrepreneurshipdeals with the willingness and capacity of developing, organizing and managing a businessfor making a profit, keeping the risk factors into consideration. The risk factors typicallyinclude; lack of funds, economic crisis, market demands, and bad decisions in the businessand others. In simpler words, an entrepreneur can be defined as the individual who starts abusiness, organizes it and manages the enterprise (Hall et al. 2012).The report throws light on the problems and issues faced by London's Spice Skyrestaurant. Spice Sky restaurant provides its consumers with high-quality Indian food sincethe year 1988. It has been able to win the hearts of many consumers and mass appreciation.The restaurant recorded an increase in the sales since its opening. However, the company isfacing a decline in the sales for the last two months, due to some issues. To start with, thecompany needs to be more effective in the identification of the strategies, so that it can geteffective results in the long run. Furthermore, it needs to identify the demands and desires ofits target consumers.The report highlights the issues of the company and the theories to be incorporated,for the betterment of the organisation. The company needs to deal with the consumers moresystematically as well as creatively. Customers love surprises; therefore, it needs to introducea new range of food in their menu. The report discusses the theories and application of newideas as well as identifying the specialist and non-specialist audiences. In addition to this, itconsists of some recommendations for dealing with the issues more effectively andefficiently.

4ENTREPRENEURSHIP AND SMESIdentification of the problemThe Spice Sky restaurant is a popular Indian restaurant located in the heart of London.It has gained immense popularity for its high-quality services and a huge range of products. Ithas recorded an increase in the sales since its opening. However, the sales dropped since thelast twelve months due to some issues. On identifying the problems, it was found that thecompany had changed their menu a little, which might be a major drawback. In order toreduce their costs' structure, they removed some items as well as beverages from their menu.Moreover, their promotional activities are also less as compared to their competitors. Thecompany used the same advertisement strategy for many years. Their advertised theircompany on the local radio and some other media, which is clearly not adequate.Bringing a change on to this, the company can adopt different strategies in theiradvertisement procedure. Firstly, the company needs to set up a clear budget for theirpromotions. They can consult a professional marketing manager for this. Instead of givingadvertisements to the local radio, they can advertise their restaurants on television, with acreative touch and catchy tune. This will be more impactful and help in grabbing moreattention of the consumers (Nambisan and Baron 2013). Secondly, it was found that thecompany has only one billboard advertisement and that too on the main highway. This needsto be changed immediately. The company needs to set up more billboard advertisements inthe city itself. Not only Indians, it will help grab the attention of others too.Thirdly, the company needs to be digitally active. Creating a page on the socialnetworking sites will be impactful and cost-effective as well. However, the company needs tohire a person for managing the websites and pages, which needs to be updated regularly.Promotional activities, the introduction of discounts and offers must be regulated on all theadvertising forums. Social media sites will also help the company gain feedbacks from theconsumers. It will further help the company gain an understanding of the consumers’

5ENTREPRENEURSHIP AND SMESbehavior and expectations from them (De Mooij 2013). Moreover, the company has removedsome items from their menu, for reducing the production costs. In that case, the restaurant canintroduce a new range of food items and beverages for catering to their target customers. Itmust be done in an effective manner. The new range of items must compliment the previousones. Hiring new professionals may help in such situations. They must be trained on a dailybasis, in order to provide their best of services to the customers. In addition to this, thecompany should keep a track of their competitors, in order to check their marketingstrategies. It is found that Spice Sky is lacking behind in this. In one hand the company needsto focus on their marketing strategies and on the other, they need to keep an eye on what theircompetitors are doing. Furthermore, the company should start hiring some professionals inorder to deal with these issues. The employees must be trained on a regular basis, forproviding the best of services.Apart from all these, Spice Sky must know how to handle the competitiveenvironment. Customers love new things; therefore, the company needs to keep a track oftheir behaviours and changing demands. It can be done by installing feedback machines ortabs in the restaurant itself. The customers can give their feedback as well asrecommendations if any. This will help the owner in gaining an understanding of what theconsumers actually want and why the sales are declining. If the customers are facing anyissues regarding the restaurant's services, they must be encouraged to report it to themanagement team. The management team must handle the issues with utmost sincerity andensure that such a situation does not happen in future. Moreover, it was found that thecompany does not have any clear vision, which needs to be rectified as soon as possible. Inorder to gain mass appreciation, the company needs to set up a vision and mission, which willhelp in achieving its goals.

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