Small Business Enterprise

This document provides an overview of small business enterprises and their significance in a country's growth. It focuses on the profile of Kirsty's, including its strengths and weaknesses, and analyzes its performance using comparative measures. The document also offers recommendations to overcome weaknesses and suggests ways to maintain and strengthen current performance. Additionally, it explores new areas for expansion.

Small Business Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Producing a profile of Kirsty's and its strengths and weakness:...........................................3
1.2 Analysis of the business using comparative measures of performance:...............................4
TASK 2............................................................................................................................................7
2.1 Recommendations and appropriate actions to overcome weaknesses:.................................7
2.2 Ways by which current performance can be maintained and strengthened:.........................7
2.3 New area's in which company can expand:...........................................................................8
TASK 3 ...........................................................................................................................................9
3.1 Give your assessment on existing business objectives and plans.........................................9
3.2 Review business plans and suggest areas where changes can be made..............................10
3.3 Prepare an action plan to implement the changes...............................................................11
TASK 4..........................................................................................................................................11
4.1 Impact of proposed changes on business and its personnel:...............................................12
4.2 Management of proposed changes in business:..................................................................12
4.3 Measurement of improvements in the business over past two years:.................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
Book and Journals.....................................................................................................................15
Online........................................................................................................................................16

INTRODUCTION
Small business enterprises are very essential for a country growth and development.
These micro and small business enterprises add more to both economy of the country and
society. This is the reason it is very important to understand the total concept of small business
enterprise. In 2008, before the recession micro and small enterprises dominated the business
scenario in UK. They accounted for 95% of total business enterprises at that point of time. As
defined by the law a small business enterprise is that enterprise which have less than 50
employee's. These enterprises are operated by the entrepreneurs (Ackermann and Audretsch,
2013). It is stated in the section 382 and 4465 of Companies Act 2006 that a small enterprise
should not have more than 6.5 million pound turnover and they should have less than 50
employee's. These small enterprises gives opportunity to the local community to enrich and
enhance their standard of living.
Dragon Den series is a show which is produced by BBC as a platform for young
entrepreneurs in garnering investment for their business. Kirsty's (former name Worthenshaw's)
is a business idea to provide ready made healthy food for kids as well as adults. This business
idea has attracted investment from Peter Jones and Duncan Bannatyne from Dragon Den.
TASK 1
1.1 Producing a profile of Kirsty's and its strengths and weakness:
Kirsty's formerly known as Worthenshaws Ltd was incorporated on 27 July 2009.
Worthenshaws was established with a aim of providing dairy free, sugar free frozen pudding to
the mothers as a health alternative of ice creams. Its founder Kirsty Henshaw was the youngest
entrepreneur to receive funding from the show dragon den. Kirsty Henshaw perceived the idea
about the pudding when she found out that her kids were allergic towards nuts and intolerant
towards dairy and gluten (Altman, Sabato and Wilson, 2010). The company which saw major
changes in 2012 when it was rebranded from Worthenshaw to Kirsty's. The company now deals
in kids meal, adults meal, ready to make food items. They are providing healthy alternative to
food items to the public. The rebranding of the business was a part of changing company focus
from ice cream market to whole food segment.
Kirsty's sell their product via different super market stores in United kingdom. These
products has registered a 75% of grwoth rate in the retail stores. Kirsty Henshow decision to

pivot the business has finally paid off. Its product are now sold in all the major super markets.
The company is valued at 4 million pounds at present. Kirsty stated on her blog that the company
mission and vision remains unchanged even the company has shifted its focus from desert
business to savoury meals.
Kirsty Henshaw bought back her shares which she sold to Jones and Bannatyne. She
currently owns more than 50% of share (Bellucci, Borisov and Zazzaro,2010). There are three
more partners in the company. Who owns more than 25 % of stake but less than 50%. The main
entities in the company are Kirsty Henshaw who hold 2010 ordinary shares, 90 ordinary shares
are held by Michael John Fraine, 139 ordinary shares are held by Francesca Yardley and MJF
investment Ltd holds 770 ordinary shares of the company.
Kirsty's has won various awards in last 10 years. It has been awarded with PETA Vegan
food awards, Gold in Healthy Food & drink award 2015. Kirsty's main focus is on the providing
health savory meals to people who do not have time to cook meals.
Strengths of business are:
 Unique product range
 Health conscious and tasty
 Attractive and known because of the show dragon den
 Availability in major super markets
Weakness of the business:
 Less market exposure.
 Limited market share.
 The existing competitors are offering more variety.
 Lower level of customer interaction with business.
1.2 Analysis of the business using comparative measures of performance:
Kirsty's faces a stiff competition when it comes to ready to eat food market. But Kirsty's
faces very less competition in the healthy savoury meals market (Bridge and O'Neill, 2012).
There are some competitors who are either too big in size and revenue or too small to compete
with Kirsty's. Kirsty's current financial position is mentioned below:
Worthenshaw Limited(Balance sheet comparison)

2016 2015
FIXED ASSETS GBP GBP GBP GBP
Intangible Assets 131 448
Tangible assets 6157 5342
6288 5790
CURRENT ASSETS
Debtors 102740 82676
Cash at bank 122846 90101
225586 172777
CREDITORS
Amount falling due
within one year
79770 44667
NET CURRENT
ASSETS
145816 128110
TOTAL ASSETS
LESS CURRENT
LIABILITIES
152104 133900
CREDITORS 16250
PROVISIONS FOR
LIABILITIES
1230 1070
NET ASSETS 150874 116580

CAPITAL AND
RESERVES
Called up share capital 300 300
Share premium 32410 32410
Profit and loss account 118164 83870
SHAREHOLDERS
FUND
150874 116580
Kirsty's has registered a huge boost in its sales through supermarkets. They have grown
with more than 75% in terms of sales since its CEO pivoted the business into providing different
savoury meals. Kirsty today can be found in any supermarket branch (Burns, 2010). The major
competition it faced was from Nature finest foods Ltd, which was established in 1986. But due to
Kirsty's rise it has seen fall in sales and revenue. Most of the competitors in the market are either
insolvent or going through crisis. The balance sheet for year 2015 of Nature Finest food Ltd is:
Nature Finest food Ltd Balance sheet
2015 2014
FIXED ASSETS GBP GBP
Intangible Assets 20680 20680
Tangible Assets 36822 32886
57502 53566
CURRENT ASSETS
Stocks 44565 41398
Debtors 47500 86712
Cash at Bank 3106 17312
95171 129844
CREDITORS 202044 260400

NET CURRENT
ASSETS(LIABILITIES)
106873 130556
TOTAL ASSETS LESS CURENT
LIABILITIES
49371 76990
CREDITORS 12365 6657
TOTAL NET ASSETS 61736 83647
CAPITAL AND RESERVES
Called up share capital 1000 1000
Profit and loss accounts 62736 84647
SHAREHOLDERS FUNDS 61736 83647
As we can see that the shareholders interests in the company is fading. While Kirsty's is
getting better shareholder interest due to its profitability. Kirsty's has introduced more interactive
platform for health and savoury meals which has been able to capture market at unprecedented
rate (Carraher and Paridon, 2015). Nation Finest Food Ltd has seen major decline in its sales and
profits. While Kristy's has registered better profits and revenues. Kristy's registered a jump of
34294GBP profits while Nation Finest saw 21911GBP of losses.
TASK 2
2.1 Recommendations and appropriate actions to overcome weaknesses:
Kirsty's is not so old in the market but it has been successful in bringing innovation in the
market. It has attracted supermarkets attention as we as consumers attention towards its products
and benefits of its product (Chell, Nicolopoulou and Karataş-Özkan, 2010). But it still has some
weakness which it will need to fix for better growth and success in the market. Kirsty's focus is
divided into two segments. First is ready to make meals and second is healthy and nutritious
meals for families. Which it has combined and serves the market collectively. In the report as
mentioned above there are some weakness in the business model of Kirsty's:
Weakness of the business with recommendations:

 Limited market exposure and share: Kirstys need to focus is limited to a limited area
which limits its exposure and share. It is serving only through supermarket while it
should also engage small retailers who can increase its range to far located area's.
 The existing competitors are offering more variety: The existing competitors from fast
food market are offering more varieties of food than Kirsty's. This limits Kirsty's in
retaining customers. After a while customer do get bored with same taste which needs to
be revised by either adding something else or new product.
 Lower level of customer interaction with business: Even though Kirsty's is having online
interaction with customers but it needs to interact with the consumers who are not online.
It needs to reach the people through offline interaction methods (Cowling, Liu and
Ledger, 2012). It can also adopt CSR technique in which it will help the society in
enhancing its living while also increasing companies recognition at ground level.
Kirsty's today is on the verge of becoming more successful. To achieve its vision it needs to sort
its weakness out.
2.2 Ways by which current performance can be maintained and strengthened:
It is very necessary and important for the company to maintain its current performance.
As this helps the company in achieving its goals and objectives more efficiently and effectively.
Kirsty's need to focus on its core values as to achieve sustainable growth. Kirsty's is a company
which is offering health and nutritious ready to eat meals. It is available in all the major
supermarkets. The company has registered high presence on social media and other trending
platform as to improve its customer interactions. The company have big scope for growth in the
market. As these days people are opting for more ready to eat meals (Di Domenico and Miller,
2012). Today people have less time because of their busy work schedules which causes them to
opt for ready to eat meals. Kirsty's is based on providing healthy and nutritional meals to the
people which do not cause any harm to their health unlike the junk food provided by other
companies. Customers are being aware about various issues which are caused by fast food hence
they are also opting for products which are good for their health. The company needs to focus on
various issues as to maintain and improve performance:
 Team building and working: Team building will help the company in achieving its targets
at more efficient levels. Also it will help company in gaining competitive advantage over
competitors.

 Customer preferences: Kirsty's has keep on analysing its customer preference. This can
be done by using various tools of feedback and evaluation. Food industry is the one
where updated food items survives and if company keeps on selling same product for
long they lose their advantage.
 Market trends: Market trends keep on changing because of change in the factors of
production.
 Quality of goods and services: Kirsty's has to maintain its quality as to serve more
population. Qualitative products attract customer towards them even if they have to pay
more for it.
2.3 New area's in which company can expand:
Kirsty's is serving its food with a motto providing healthier and nutritional food to the
consumers. They have huge scope for further expansion in the market (Fassin, Van Rossem and
Buelens, 2011). They also have a loyal customer base which will provide support in expansion.
Currently their food is based on four concept:
 Free from gluten wheat and dairy
 Nutritionally Balanced
 Always Delicious
 Naturally low on calorie
These concepts defines about the company product and services which will be provided to
customer. These act as a core value for the organisation. Kirsty's will be able to capture more
market if it follows certain recommendations:
 International expansion: This is possible with the help of supermarkets. The supermarkets
in UK also have branches in other countries which will help Kirsty's in selling its food
products internationally (Goss, 2015). These supermarkets will help it in transporting its
products without any one of them getting rotten or wasted. Supermarkets like ASDA,
TESCO, Sainsbury have good international market exposure which will help the
company in selling its product.
 Smaller retailers: Kirsty's need to target small retailers too which operate in the outskirts
of city or in counties which have no supermarkets nearby. Also the bakeries and
restaurants will help the company in opening up a new market for its products.

Kirsty's can also boost the market share by making its meals available in school-colleges
canteen. This will also help it in garnering more support to the society which will lead to better
brand recognition. Kirsty's should not move from its core values but it needs to keep on
analysing the market trends and preferences as to changes meals types in at regular time interval.
TASK 3
3.1 Give your assessment on existing business objectives and plans
Company wants to achieve its goals and objectives. For the enterprise make certain plans
and strategies. The objectives are the sub part of the goals which company sets. The tag line
which kirstys uses is “when the life give the lemons use them as a garnish”. The following are
the objective, values of the company. Small changes bring the big differences: The company believe that small changes can
make the big differences. According to the company sometime it is good to have other
kind of food also but on daily basis the person should have the balance diet which can
improve the health and give the long life fitness (Gronum, Verreynne and Kastelle,
2012). The person can make his/her life happier lifestyle by making the small changes in
diet they are taking. Healthier food is can also be tastier: Many people have the perception that the healthier
food is not good in taste. But company brings the products which can change the point of
view of the customers. Healthier food also can be tasty. The company make the food
items in a way that they taste good. The products provided by the Kristy are delicious.
 Eat healthier even when no time to cook: The company provides the ready-made food
items which consumer can use anytime when there is no time to cook (Jones and Iredale,
2010). In present scenario the life is very past. One person is doing multiple of work and
for that reason the person cannot cook the food because of his/her busy schedule. For this
organisation brings the solution. They have the quick made recipes and ready made food
items which are healthier and easily available.
3.2 Review business plans and suggest areas where changes can be made
Business plan is the process which gives the path to the organisation. By business plan
the company can reach to its goals and achieve their objectives. This plan lads to the company
success and failure. The business plan consists of all the activities which took place in the

enterprise. The plan over look the past performance of the business unit and by this they can
make the plan for the future. The changes can take place in the business plan according to the
changes take place in market conditions.
To develop the business plan company needs to do the research in which they collect the
information about the market trends, customer expectations, competitors etc. the company need
to formulate its business plan so they can expand its business in other countries (Lambert and
Davidson, 2013). The company also want to expand its product line of health goods which can
bring the change in people lifestyle. Following are business plans steps that need to accomplish. Setting up goals and objectives: The first step to develop the business plan is develop the
goals and objectives which company wants to achieve. In this company decide where
they want to see their company in future. Developing the plan: In this company develop the plan by seeing the trends, customer
expectation , enterprise goals and other factors. The company analyse the resources
which gone to be used for the business such as raw material, machines, equipments,
human resources , financial resources etc. Allocation of the resources: After making the plan the company implement the plan in
real scenario. The resources are to be allocated at the right place at right time.
 Follow up: The organisation follow up the process which they implemented. In the
enterprise continuous monitoring and controlling of activities is necessary so that the
problems can be found out and solution are to be made at that particular point of time.
The company make the changes changes in the communication areas , can also try to
improve the employees relation and can make changes in the production area where they can try
to minimize the cost without compromising the quality.
3.3 Prepare an action plan to implement the changes
The action plan is required to make the effective changes in the organisation. The
company needs different changes in different areas. In the action plan the enterprise prioritising
the task which are need to achieve the goals. High priority task should be done first. The action
plan gives the delegation authority to the different management levels (Malhotra and Temponi,
2010). The company do the research modify the information collected. To collect the data
enterprise also choose the internet by which they get the huge available data and can interpret
that according to the organisation needs. The company assign the activities to its employees and

these task are done according to the different days. The task area assign according to the number
which are required to make the action plan. After that employees which are needed to execute it
and the other resources.
The action plan gives the results of actual out come. When the business plan has been
established (Rae, 2010). The action plan give the result of the outcome. Following are steps for
the action plan.
 Identify task
 list the benefits of the goals
 Start the current action
 Arrange the task according the priority
 Assign deadlines for the particular task
Reviews the results
TASK 4
4.1 Impact of proposed changes on business and its personnel:
Any change in the organisation leads to change in its environment and functioning. It
depends on the company management how they implement changes. Its the implementation
results which are considered whether changes were positive or negative (Ratten, 2014). Some
changes in the organisation helps the company in gaining competitive advantage. Changes can be
divided into two parts: Controllable and uncontrollable changes. Controllable changes are those
which are bought in by the company itself. Uncontrollable changes are those which occur due to
external environmental changes. These changes cannot be controlled and has to be modified as
per the company to adjust in the situation. Company and its personnel has to adjust the impact of
any type of change which occurs. Kristy's will also change as to expand in new fields. These are
the impacts which will be faced by Kristy's:
 Workloads: With the proposed changes, workloads of employee's will certainly increase
as they will have to perform more task as to enhance company chances of achieving
targets on time.
 Finance: The expansion process and other changes will also add to new expenses. This
new financial burden should be managed by increasing output efficiency and employee
effectiveness.

 Organisation structure: Expansion needs more employee's and change in organisation
structure. Company needs to increase communication in and out of organisation while
maintain good employee relationship. It will need to create a better structure which will
engage employee in decision making process.
 Morale: The proposed changes will increase employee morale. This will result in better
employee efficiency and higher productivity (Sharma, Chrisman and Gersick, 2012).
Better morale helps the company in gaining commitment from the employee that they
will stay and work hard to achieve company goals and objectives.
4.2 Management of proposed changes in business:
Small enterprises usually avoid any changes because changes carry high risk factors with
them. These factors can collapse whole company. This is the reason there is high need to manage
all the changes in the organisation. Small enterprises like Kristy have less funds to manage
changes but it is very important to properly plan and create a path by which the changes will be
brought in the organisation. An action plan is created to manage the proposed changes
effectively. Also action plans are modified time to time with changes in the environment.
The proposed changes in Kristy's will bring new dimension of success for the company.
Currently Kristy's is providing its products through various the supermarkets (Southern, 2011).
But selling its product in international market via same supermarkets will bring some additional
financial burden which needs to be managed. First company will be needed to analyse the
potential market needs as then offer its product. There will be need of new marketing team also
which will specialise in marketing of Kristy's product line on international platform.
For proper management of changes, company will need to channelise all its activities.
Channelising and tracking will help the company in gathering proper impacts of changes and
evaluate its performance more effectively.
4.3 Measurement of improvements in the business over past two years:
Kristy's has registered high sales through supermarkets sales. This is why they have
earned more profits. Kristy's concept of business is new and attractive. People are able to relate
to their business concept more easily than they do with others (Stokes, Wilson and Wilson,
2010). To properly analyse the business improvement over the past two years, Kristy's will need
to use a proper trend line analysis. This way they will be easily understand their growth.

This is important as to check whether the companies implementation of changes has been
successful or not. Kristy's have registered a huge jump in profits in last two years. Kristy's
registered a jump of 34294 GBP profits. Kristy's need to expand which will require more
finances. This profit will help it in maintaining stability in the organisation.
CONCLUSION
Small business enterprises form a essential part of United Kingdom economic condition. These
small business help the economy as well as the society in growing up. Kristy's has a new concept
which attracts investors as well as customers towards its products. They are also about to expand
into new area's which needs more employees and management changes. Company will be
needing to utilise all their resources at the optimum level as top increase efficiency level with
higher productivity.
Year 2015 Year 2016
0
20000
40000
60000
80000
100000
120000
140000
83870
118164
Column B
Linear (Column B)

REFERENCES
Book and Journals
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Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave
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Sharma, P., Chrisman, J.J. and Gersick, K.E., 2012. 25 years of family business review:
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Online
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enterprise-and-employment-act-2015-the-sbeea-2015/>. [Accesses On 17 May 2017].
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