Challenges and Strategies for Small Business Enterprise in the Food Industry

This report explores the challenges faced by small businesses in the food industry and provides strategies to overcome them. It discusses methods to measure and improve performance, and offers recommendations for business expansion. The report focuses on a specific company in the food business and provides insights into its strengths and weaknesses.

SMALL BUSINESS
ENTERPRISE

Table of Contents
SMALL BUSINESS ENTERPRISE...................................................................................................1
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
1.1 Produce a profile of a selected small business identifying its
strengths and weaknesses:..............................................................................................................3
1.2 Carry out an analysis of your SBE using any three different comparative measures of
performance.....................................................................................................................................3
TASK 2.................................................................................................................................................4
2.1 Appropriate actions required to
overcome the identified weaknesses in the business:.....................................................................4
2.2 Analyse ways in which existing performance could be
maintained and strengthened:.........................................................................................................4
M.2 Select and apply appropriate method to strengthen the performance:....................................5
2.3 Recommend with justification, new areas in which the business
could be expanded..........................................................................................................................5
TASK 3.................................................................................................................................................6
3.1 Produce an assessment of existing business objectives and
plans:...............................................................................................................................................6
3.2 Revise business plans to incorporate appropriate changes........................................................6
3.3 Prepare action plan to implement the changes...........................................................................6
M.3 Present and
communicate
appropriate
findings...........................................................................................................................................7
TASK 4.................................................................................................................................................7
4.1 Report on the impact of the proposed changes on the business and its personnel....................7
D.1 Use critical
reflection to
evaluate own work
and justify valid
conclusions......................................................................................................................................7
4.2 Plan how the changes will be managed in the business............................................................8
4.3 Monitor improvements in the performance of the business
over a given timescale.....................................................................................................................8
D.4 Demonstrate
convergent/lateral/
creative thinking:.............................................................................................................................8
CONCLUSIONS..................................................................................................................................8
REFERENCES.....................................................................................................................................9

INTRODUCTION
Small enterprise are those which are running business on a small scale. There are less number of
employees and the total investment is less in comparison to the big companies. They use less
technology in their daily operations and are more labour intensive that being capital intensive due to
less availability of funds and capital(Bridgeand O'Neill 2012). There yearly turnover are not much
high and remain less than 8 million. Through this report the challenges faced by the small scale
business will be discovered and also how they can overcome those challenges will also be studied.
The report revolves around a company dealing in food business and therefore they need more
attention as they face high challenge in the business environment. For this there is a need to bring
changes in the organisation and therefore one should adopt proper action plan should be followed so
that resistance can be eliminated in the organisation.
TASK 1
1.1 Produce a profile of a selected small business identifying its
strengths and weaknesses:
A David Jones limited is a of consumer discretionary sector. It is dealing in food service and
providing a wide range of fruits vegetables other exotic products to its customers. This company is
providing the final ready products to the bakeries, hotels schools, hospitals other restaurants on
contract basis. This is a retail sector company which has many departmental stores all over the city.
The products provided by this company are best and are exclusive in nature. It provide products to
mainly the high income group(Storey,2016). It has limited variety of brands in the stores this limits
its income in comparison to the other stores which are operating in the same business type.
Therefore it can do the expansion by increasing the variety of brands and by using effective
advertising techniques.
The strength and weakness of David Jones limited:
1.Strength: the main strength of the cited company is that it provide the customers with best quality
products. Enough parking space are provided to the customer coming from far of places so that they
do not face any in convince. The prices are also very effective in comparison to the other brands at
both national and international level. Also as this company has almost forty store all around the
country it has given employment to more than fifty thousand employees.
2.Weakness: It has limited brand variety in the stores which makes them weak from the other global
stores also the there revenue remain almost constant due to the international competition present
globally(Schaperandet.al, 2014).
1.2 Carry out an analysis of your SBE using any three different comparative measures
of performance
There are different ways through which the performance of the company can be compared and
measured. It is an important part for any organisation to do the performance evaluation as it help the
management to know weather the employees are giving the desired results or not. The cited
company has a wide range of employees which are working in different branches therefore it
becomes more important to keep check on each branch. Different methods of measurements are:
1. Management by objective: This help the management in calculating the performance by
comparing the individual goals with the organisational goals. The management meets the employees
to keep regular check on the performance. Targets are set for them which they are asked to finish in
the given time period. At the end there results are compared with the standard results and also
corrective actions are taken accordingly. The sited company sets the sales targets than calculate it

with the past performance.
2.Forced ranking: It is a method in which all the employees of the organisation are divided into
three different categories. The first category consist of the employees which are giving the best
performance, the second consist of an average performing workers and the last who do not perform
good at all. This brings competition in the organisation as everyone work dedicated to fall in the
first category(Burns,2010). As the cited company has huge number of employee it becomes a good
tool of motivation for them.
3.Three sixty degree feedback- This is helpful for the organisations that need effective
communication in the employees. Everyone interacts on a regular basis with the different managers
and gives the feedback of their concern department. Training is also provided to the employees on
how they have to give their feedbacks to keep balanced and pure feedbacks that are not affected by
their personal opinions.
M.1 The cited company should use the above measuring tools in order to increase its performance
quality. By establishing ranking system in the organisation employees will work accordingly in
order to fall in the first category which will increase the total output and profitability. Also the
openness in giving the feedbacks help in getting the information regarding the different departments
on a regular basis.
TASK 2
2.1 Appropriate actions required to
overcome the identified weaknesses in the business:
As it is identified that David James limited is facing different weaknesses due to which it is not able
to maximise its profit in comparison to the other companies. There is a need to provide them with
measures through which it overcome those weakness. Some measures are as follows:
Effective marketing: The company needs to adopt a good marketing strategy as it is lacking
behind in this sector. They are not advertising their products much which results into loss of
potential sales. They can take help of the digital marketing as it is an easy source and also cost
effective. Through this system the company can reach to more customers and at far of
places(Malhotra,and Temponi2010).
Increase brand variety: As the company is dealing in a product type which required variety
by the customers. Therefore they should provide customer with more brands so that they can make
their choice after comparing them all.
2.2 Analyse ways in which existing performance could be
maintained and strengthened:
There are many ways through which the existing performance of the business can be maintained
and also with time can be strengthened. Some of them are as follows:
Prioritize the work- In order to achieve the targets there is a need to classify organisational
activities under different categories. The most important task should be given more priority and
effective employee should be appointed for that so that it is carried out in the best manner. Also
prioritizing the work help completing the work with the required standards.
Work smartly: Everyone work in their best way but working smartly help in achieving the
targets in the most effective manner. One should work with focus and targets that he will be
achieving everyday so that he can judge his own performance. Social media or other diverting
elements should be avoided while working on the work place. One should pre plan about what he
has to put in front during the meetings or what he has to ask during the meetings so that the vision
remains clear.

Planning: It is an important measure to improve the work performance for any company.
Planning help in deciding what has to be done how it has to be done and from when. Effective
planing act as a grounds for future and also help the management in taking the decisions for future
after forecasting.
M.2 Select and apply appropriate method to strengthen the performance:
Open communication should be adopted in the organisation so that no confusion take place in the
organisation and the mission remain clear to the employees(Gronum Verreynne. and Kastelle,2012).
Trust should be developed in the employees so that they feel secure in the working environment and
give their best. Innovation should also be adopted so that flexibility remains in the working
environment which is very important for the business to survive in the dynamic environment.
2.3 Recommend with justification, new areas in which the business
could be expanded.
In order to expand the business Ansoff matrix and marketing theory gives the assistance that how
expansion can take place effectively. Each needs to be studied in detail for better understanding.
1.Ansoff Matrix- It was invented in 1965 and it is majorly used to create strategies for business
operations. It was favoured by most of the companies as it was easy to use and simple to
understand. The management was benefited by getting the scenario for the development. It includes
market penetration which suggest the increase in the total volume of the production by increasing
the total market share. Product development was suggested to offer more variety to the customers.
This helps in attracting more consumers which increases the total sales. After this importance of
market development was also recognised for the expansion of the existing business. In this
strategies were made in order to reach more market without doing any innovation in the existing
product. New market sectors were identified with the help of new sectors of the market.
Marketing theory: In order to expand the business every company needs to position its product in
the market so that the consumer like buying it even if he actually dose not want that product. It
include the seven P's of the market product,place,price,production,promotion,people and physical

evidence. This theory gave importance to each of these factors for the growth and promotion of any
business(Stokes, Wilson, and Wilson 2010). It showed how it is important to have right people for
the right job. Than how the process of the organisation needs to be managed so that the delivery of
the product is done on time. Promotion is very important for any product in order to make the
customer aware about it so that the total customer count get increased(Down 2010). With this price
of any product also plays an important role as the customer is very price sensitive therefore price
should be fixed after doing proper study of the entire market.
TASK 3
3.1 Produce an assessment of existing business objectives and
plans:
The company has a clear objectives for the future for which effective planing is also done. It has
three major objectives:
1. Transformation- this company wish to expand and increase its scale of operations for which
the latest technology is adopted by the management(Ackermann,and Audretsch,2013). They
are converting there stores into more attractive designs with assistance given to the
customers where ever required. It realised that providing customers with good services will
give it more results and also they can then face the competition in more effective
manner(Goss ,2015).
2. Growing store networks: Planning to increase the total number of stores is done. For this
survey is conducted to choose the best location which will help them in increasing the total
foot fall of the customers. Construction for few has even started which ill be increasing the
total sales and also more store construction will be started soon.
3. Strengthening the core business: The main objective of the citied company is to maintain its
quality of products so that it can compete with the other substitutes by providing the
customers with the best at both national and international level(Altman Sabato. and Wilson
2010). The finance is generated from the sources which are best suitable for the business.
3.2 Revise business plans to incorporate appropriate changes
In order to bring change or bring expansion in the business the company needs to revise the existing
business plans so that changes can be brought into the organisation. There is need to increase the
total investment in the staff in order to promote the sales with increase in the supervisors for them.
Experts should be appointed in the front stores so that they provide the customers with better
services(FassinVanand Buelens,2011). Track record should be maintained so that control can be
kept on the performances and corrective actions should be taken at the same time in order to
minimise the risk and loss both. David jomes is a company in which incentive plans will help the
management in getting better results from the employees. If the front line managers are provided
with rewards or incentives they will work with more dedication and will put more efforts to attain
the objectives(Hatten,2015). More brands need to be offered by the cited company so that the
customer are left with variety of choice and they do not feel like compromising as it will effect the
companies goodwill.
D.2 Take responsibility for managing and
organising activities
As the existing plan fails in developing the new brands and also in establishing the new stores as
expected there is need to revise the plan. Effective planning and advertising help in increasing the
total sales(Rae,2010) By providing the customers with good line staff managers they are provided
with the differentiated services with which they feel more satisfied and also the increased services

by the managers will help in attracting more potential customers. Tracking will be done to evaluate
individuals performance so that reward should be given accordingly and appraisal will also help in
employee satisfaction(Forsman, and Temel2011.
3.3 Prepare action plan to implement the changes.
It is important to bring change in the organisation in order to to bring expansion in the existing scale
of the business. Changes are good if the are acceptable by all in the organisation. Proper steps need
to be adopted to bring change by preparing the action plan:
1. Management support for change- In order to bring change in the organisation it is very
important to have the support of the employees as only than change can be brought in the
institution.
2. Case for change: As the employees have the tendency to resist to the change there is a need
to create awareness among the employees about the need for change. The past records or
surveys can help in creating case for the change.
3. Employee involvement: As any change made in the organisation will have its direct effect
on the employees it should be carefully communicated to the employees so that they remain
prepared(Bellucci, Borisov,and Zazzaro,2010) Once they are made aware about the benefits
of the change they will welcome it more.
4. Communicating the change: The management should take care that the change is well
communicated to the employees. If they get to know about the change from some other
source than this may result into resistance to change by the employees.
5. Implementation: After the change is planned that what exactly will be changed in the
organisation it has to be effectively implemented in the organisation. If the process of
implementation is not done accordingly than whole process will go in vain.
6. Follow-up- It is not compulsory that once the change is implemented the duty is over. In
order to check that weather the change is working as expected in the organisation or not.
Sometimes there are chances that things do not work as expected therefore follow- up will
help in identifying the deviations.
7. Removing barriers- If it is observed that the employees are facing problem in implementing
the change they need to be assisted by the superiors so that they can continue with their
work.
M.3 Present and
communicate
appropriate
findings
In order to bring change in the organisation it is very important to follow the given actin plan as if
the change is brought without prior notice than this can bring the opposition from the employees.
Therefore it is necessary that the change is properly communicated to the employees and also
assistance in implementation is provided to them by the seniors.
TASK 4
4.1 Report on the impact of the proposed changes on the business and its personnel
There were many changes brought by the management in the business. These changes were helpful

to the organisation as they help the management in increasing there total sales which directly
increased the profitability of the business(Abor, and Quartey2010.). With the introduction of new
strategies in the business the company is benefited to give their customer more satisfaction and
effective services. As earlier due to weak advertisement and promotion strategies the products were
not very much know to the [public but later with the adopting digital marketing the potential buyers
increased to a good numberer. Also by introducing new brands in the stores attracts more people
with more choice to chooses the best for them. With the help of the action plan these changes were
implemented effectively in the organisation otherwise it could have lead to resistance among the
employees if not created properly. The increased number of stores helped in developing goodwill in
the market and increased the total brand value of the company.
D.1 Use critical
reflection to
evaluate own work
and justify valid
conclusions
The changes proved to be positive for the cited company as the total sales increased in the number
with the increase in the profit. As the changes and the need for change was well communicated to
the employees it was susses fully implemented without any resistance from the employees.
4.2 Plan how the changes will be managed in the business
It is very important to manage change in the organisation in order to maintain the business
environment healthy(Ratten 2014)If the changes are not managed than this will b bring hardship
feelings among the employees. Therefore principle to manage change are that it should be involving
people in it and not be imposed on the people. If the change is forcefully imposed than it will not be
acceptable by all and employees will develop resistance against it. Before actually implementing the
change it should be well communicated to the employees so that they remain prepared mentally
that a change is going to take place in the organisation. The change should be regularly monitored
by the superiors in order to find out that weather the effects of change are positive or not in the
organisation and if not than quick actions must be taken so that corrective actions can be taken as
soon as possible. Employees should be provided with the benefits of change so that they work with
more dedication towards the change and do not resists to it.
4.3 Monitor improvements in the performance of the business
over a given timescale
Performance measurement is very important for the small scale business enterprise in order to take
the corrective actions. There are different theories to measurement like performance measurement
in quality terms. In this the results are compared with the standard quality which was expected out
of them and when on comparing deviations are observed they are recorded and accordingly actions
are taken so that the overall quality remain maintained( DavidsoLambert,n, 2013.). After this the
performance is also measured in quantity terms. This is done when the performance is to be
evaluated with the production done if the total production of units are equal to that of the required
production unit. It helps in evaluating the performance of individual and also the efficiency can be
measured. Also the effects of change should be evaluated in order to know the benefits of it and if

there is no change in the total performance than it is a wrong decision of bringing change in the
existing policies( Ratten, 2014.). The development of the performance is also measured in terms of
the reduction in the total turnover ratios. If the turnover of the employees are less than in
compression to the previous year than it is considered as increased in the performance as this
reduces the cost of recruitment and also of the training to the new employees. With the increase in
the performance the reduction in labour turnover reflects the improvement in the working
conditions and employee relation with the organisation.
D.4 Demonstrate
convergent/lateral/
creative thinking:
The above methods will help the organisation in monitoring the performance of the employees for
the next few years. This will help the organisation in improving the working conditions and taking
the corrective actions. Also this help in identifying the potential employee of the company.
CONCLUSIONS
As per the above report it can be concluded that it is difficult to manage the small scale business as
it comprise of more labour work(Kitching, and Smallbone,2012). There is a need to take corrective
actions on regular basis so that continuous improvements can be done in the business. As the cited
company deals in the food industry there is a need to update the existing working environment in
order to face the outside competition. Also different theories can be adopted to do the performance
evaluation.
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