Small Business Enterprise: Strengths, Weaknesses, and Financial Performance

This document provides an overview of a small business enterprise, including its strengths, weaknesses, and financial performance. It explores the company's background, business activities, and location. The document also offers recommendations for resolving weaknesses and improving management and business performance.

STUDENT NAME:
STUDENT ID:
SUBJECT CODE:
ASSIGNMENT NAME: SMALL BUSINESS ENTERPRISE
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Table of Contents
Overview of the company....................................................................................................................3
1.1 Strengths and weaknesses of the organization.............................................................................3
1.2 Comparative analysis of the financial performance of the business..............................................5
Task 2: Changes for the improvement of management and business performance.............................7
2.1 Recommendations of the appropriate actions for resolving weaknesses.......................................7
2.2 Analysis of various methods to maintain and strengthen existing performances........................11
2.3 Suggestion of expansive probability of the business processes...................................................15
Task 3: Revisioning of the business objectives and plans to incorporate changes............................16
3.1 Assessment on existing business objectives and plans..............................................................16
3.2 Review business plans and suggest areas where changes can be made.......................................16
3.3 Prepare an action plan to implement the changes........................................................................17
Task 4: Examination of the impact of change management on business operations........................19
4.1 The impact the proposed changes will have on the business and its personnel...........................19
4.2 The plan for how the changes will be managed in the business..................................................20
Reference List....................................................................................................................................23
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Task 1
Overview of the company
Business name: The name of the company is Trunki. The company is registered as Magmatic
Limited.
Structure of the owners: It is a limited company and thus the owners of the company have the
least amount of liability. The company has a general partner who operates the daily operations of
the company. This is a complicated process. Limited partners are recruited or created by the
company or one person. The limited partners have no such great liability for the business activities
personally.
Background of the company: The Company has seen many changes in terms of its directors. In
May 13, 2008, Mr. Stuart Rose was recruited as a director. In the same month Mr. Trevor Bell was
also selected as a director. The company has faced losses in 2015 despite its successful operations
in different parts of the country.
Business activities: The Company designs and manufactures different children’s products. It also
provides the giant retailers such as the John Lewis Partnership, Argos, and Boots and so on with
different children’s fun products. Its success can be measured by the fact that almost 20% of the 3-6
year old children have preferred its flagship ride-on suitcase. Its products include PaddlePak, Travel
ToyBox, and so on.
Business location: The Company has its registered office at Shaftesbury Chapel, Union Road,
Bristol. It operates primarily in Bristol; though it supplies its products to many retailers as
mentioned earlier.
1.1 Strengths and weaknesses of the organization
Nature of businesses: The profile of the business organisation: Trunki is a company that produces
the brand of the ride on and carry on hand luggage segments and baggage modules for children.
Such brands are designed by Rob Law. The products of Trunki had become well-known after it was
featured on the television series named Dragons' Den which is hosted at United Kingdom back in
2006.
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The strengths and weaknesses of Magmatic Limited have been analyzed by using a SWOT analysis.
Strengths: One of the main strengths of Magmatic Limited is that it’s flexibility in terms of
manufacturing different products. As a small business, it can rapidly shift its manufacturing style
and the quality of its products (Storey, 2016, p.132). This flexibility gives it a chance to cater the
market demand. For example most of travel and fun tools are related to the television programmes
and the movies and thus the shape, size and texture of the fun tools are designed keeping in mind
the preferences of the children at that time. It can also modify its products in accordance with the
changes around and the product manager does not face any major difficulty in that as the area of
change in relatively small in a small company like Magmatic Limited (Kenny and Dyson, 2016,
p.109). Another important strength of the company is that it can recruit highly skilled personnel in
the company and also train tem accordingly because the number of employees is much less than any
other organization (Goss, 2015, p.105).
Weaknesses: one of the tough challenges that Magmatic Limited faces is that with a relatively
smaller customer base, it finds it difficult to compete with the large companies. Apart from that
there is the question of marketing and sustainability of price; for the sake of completion it does not
have that market depth that it can face a loss for a long period of time.
Opportunities: Magmatic Limited has a great opportunity in terms of the innovative measures and
the changes in the behaviour of the people as well as children in this part of the world that can
actually foster high demand for such products and as a small business it can certainly make these
innovative measures and try them out in a sample business environment (Brunswicker and
Vanhaverbeke, 2015, p.1248). It can also make partnerships with the retailer giants for a long term,
which will sustain the demand part and help it regulate its future policies.
Threats: The biggest threat is the challenge posed by the online games and the influence of the
social media (Glaub et al. 2014, p.358). The online games pose a real threat to the popularity of its
products. Apart from that there many companies in the same industry that are also giving a tough
competition to its market ad its reach in the urban population as well as in the rural population.
Another threat comes from the slackening demand from outside as it has partnerships with retailer
giants that operate in other countries as well the restrictions and thoughts of protectionism in
Europe have actually changed the market scenario and the demand part has gone down (Goffee and
Scase, 2015, p.149).
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1.2 Comparative analysis of the financial performance of the business
Comparison with other small businesses in the same area: Netitude Limited is another small
industry from Bristol that gives training in computer. It also gives IT support and computer services
to the local people. It has a few differences in terms of production, sales, technology and human
resource management with Magmatic Ltd.
Production: As far as production is concerned, Netitude Limited deal in services and gives training
and IT support to the customers. On the other hand, Magmatic Ltd deal in fun tools for children.
Sales: In terms of sales, both the industries belong to the same small industry but Netitude Limited
does not depend on the products and the marketing aspect so much as Magmatic Ltd depends
(Haynes, 2015, p.121). Netitude Limited provides services and thus tries to remain up-to-date and
quality oriented; on the other hand, Magmatic Ltd focuses on marketing, manufacturing and
demand of its products.
Technology: Netitude Limited depends hugely on the computer technologies like software and
internet management related problems, while Magmatic Ltd depends on manufacturing
technologies.
Human Resource: Netitude Limited needs trained and skilled professionals from the IT sector
while Magmatic Ltd needs the same from the manufacturing sector. The former is also required to
train its professionals.
SWOT analysis of the organisation and comparison: Strength: The strength of the company
involves the concentrated and highly focused workforce which could bring to bear the entire work
effort on specific tasks as the company only has a few branches where the entire working personnel
are concentrated. In case of the market competitors this advantage does not exist as multiple
branches of the competing companies make the work effort concentration an improbable aspect in
the business process.
Weakness: The weakness of the company involves the shortage of manpower and of qualified
staffs which impede the company from acquiring new business prospects and this also leads the
company to concentrate on specific fields of information technology related services such as the
provisioning of cyber security and data backup services. In this respect the growth of the company
is always hindered in respect to the shortcoming of not having the adequate staff to diversify the
operations that the company undertakes.
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Opportunities: The opportunities which are prevalent in the market could be identified as the
growing space and facilitative conditions to expand the company activities and this entails the
provision of high quality information technological services to various customers and sources of
income generation expansion as well. Netitude Limited is a global leader concerning the provision
of personnel training regarding information technology and this adds to the market based
opportunities that could be utilised and capitalised by the company in the near future.
Technology: The Company works closely with the various clienteles on the basis of qualitative
technological capabilities and assists in improvement of the current cyber security posturing of the
various clients of the company. Technology focused assessment of the cyber security capabilities of
the various clientele, framework cyber security management, provisioning of qualitative advice,
provisioning of the various risk based and reality induced intensive cyber security testing services
with the inclusion of the penetration testing from the advanced cyber techniques such as the
Simulated Targeted Attack and Response (STAR) are some of the core technological capabilities of
the company.
Quick Ratio= Current assets-stock (Inventory)/Current liabilities-other liabilities (Bank overdrafts
etc)= 24566-9693/ 14236-2520=2857
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Task 2: Changes for the improvement of management and business
performance
2.1 Recommendations of the appropriate actions for resolving weaknesses
Overcoming weaknesses: The approach of improvement of quality within any organisation
can generally be considered to be an interventionist modification that belongs to any specific
organisational program with clearly stratified progression path. Apart from this, the entire approach
is also an integral part of the systemic management process of business development (Storey, 2016,
p.120 ). It is always a strategic consideration and it progresses in a cyclical format in terms of the
operations involving the generation of output and the reception of quantitative feedback. This
process is vital for the business process development within any small business organisation as such
process introduce the equilibrium between the divergent forces that influence the business process
progression. Such optimisation of the combination of the components and involved efforts to
achieve the required output involves consistent evolution of new strategies for the utilisation of
problem solving resolutions (Barber et al. 2016, p.123).
Problem-solving strategies
The comprehensive problem solving strategic approaches which are utilised in the current business
scenario and which could be applicable in context to the business organisation under consideration
could be of much significance if such tactics and strategic considerations could be coupled with the
checklist approaches for the solution evolvement of existing business challenges. The various
strategies which are available are also suitable to provide greater propensity of successful training
provision to the other organisations in the process of problem solving. The evaluation of the various
methods of developing the necessary strategic considerations to identify and rectify the weaknesses
that are inherent in any small business organisation such as the one which is under consideration in
the thesis study is one of the most beneficial prescriptions for the necessary evolution of the
systemic explanations that could serve as the most effective supplements to the business strategies
which are already in the process of application to the variegated problem architectures which the
small business organisations have to experience in the course of market operations (Goss, 2015,
p.128).
Clarification of the problem: The vagueness and the ambiguity which are associated with the
problems of business propagation are some of the most difficult to be resolved with propriety. In
this respect, the factor of clarification of the problem is the most important element that has to be
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utilised to discern the proper nature of the problem, to achieve the clarification of the problem
involves the first step in the generation of the solution also.
Identification of the key factors of the problems: The various situational aspects which are
involved in the problem architecture are of multifarious nature. Every problem, be it a market
related one or a functions oriented one, always have multiplicity of important and minor
information embedded within it for the solution seeks to develop. In this respect, the concentration
of the focus on the exact and key features of the problem becomes one of the most valuable
facilitative strategies to come up with affordable solutions as information which does not help in
determining the actual nature of the problem could only be a distraction at best. Identification of the
key elements of the problem is the second most important process development for the generation
of the solution for it (Moore, 2014, p.146).
Knowledge acquisition regarding problem specifics: The strategic development of any problem
solving process involves the acquisition of the necessary knowledge of the domain that involves the
source of the problem. The relevance and appropriateness of the knowledge possession during the
developmental phase of the solution formation is the single most effective proposition that assists in
the determination of the options and the changes that would best be applicable to resolve the
problematic situation.
Perspective alteration: The change in the perspective with which any resolution generation effort
is invested into the process of strategic solution formulation process, provides new and better
understanding and delineation about the various plausible and implausible aspects which are
associated with the sources of the business challenges and the problems. Changes of the strategic
evolution perspective regarding the development of the most suitable business process and strategy
development for any market oriented organisation always provide greater avenues of progressions
towards the achievement of the necessary measures of strategic promulgation (Majchrzak and
Markus, 2013, p150).
Sources and availability of professional advice in appropriate areas
Professional advices, concerning the various executive functions and operations that every business
organisation has to undertake, is one of the most facilitative and supportive and integral elements of
modern corporate functioning. Professional advice is the sharing of the accumulated information in
a specific and precise manner to the recipients such as the small start-up companies who have not
been able to establish the necessary business reputation and the required business process
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management mechanism that can help such start-ups to undertake extensive business operations.
Such appropriate and professional advices in the extensive range of issues such as the planning of
new business venture services, launching of new start-ups, licensing and copyright issue resolutions
and in provision of the generic support structure of the various internal improvement efforts that
directly have some implication upon the external functionalities of any market oriented business
organisation are the essential support mechanism of any business organisation both at the inception
level and during the maturation period when the company executives remain relatively devoid of
any prior experience regarding the various issues that they have to deal with (Hinsz, 2015, p.225 ).
In this respect, various sources are utilised as points of reference generation by the newly launched
venture capital organisations such as the professional advisories that provide advisory services on
contractual basis. Key stakeholders are also alternative but essential sources of advices, so are the
peer advisors such as the hired executives who could lend their valuable insights into the entire
business process management services to assist the various organisations for which they work
(Cassidy, 2016, p144).
Finding solutions and alternatives
Consideration of the various differentiated cases and interactions become extremely important in
terms of the variables and influences that become the reason for the creation of the situation where
the problems get generated. Unlike the general perception, the problems and business challenges
do not get caused by any single influent. In this respect, the finding of the solutions depends
completely on the discovery and consideration of the alternative theories and processes that could
provide different approaches to develop significant and suitable operational mechanisms that could
ultimately become effective in solving the organisational internal and market environmental
external impediments. Generation of solutions is therefore significantly influenced by the careful
consideration of all the available alternatives which could be detected to be worthful and
prospective to yield the necessary roadmap of the intended business solutions (Brown and
Chandrasekaran, 2014, p.136).
TOWS analysis: Technology: The Company works closely with the various clienteles on the basis
of qualitative technological capabilities and assists in improvement of the current cyber security
posturing of the various clients of the company. Technology focused assessment of the cyber
security capabilities of the various clientele, framework cyber security management, provisioning of
qualitative advice, provisioning of the various risk based and reality induced intensive cyber
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security testing services with the inclusion of the penetration testing from the advanced cyber
techniques such as the Simulated Targeted Attack and Response (STAR) are some of the core
technological capabilities of the company.
Opportunities: The opportunities which are prevalent in the market could be identified as the
growing space and facilitative conditions to expand the company activities and this entails the
provision of high quality information technological services to various customers and sources of
income generation expansion as well. Netitude Limited is a global leader concerning the provision
of personnel training regarding information technology and this adds to the market based
opportunities that could be utilised and capitalised by the company in the near future.
Weakness: The weakness of the company involves the shortage of manpower and of qualified
staffs which impede the company from acquiring new business prospects and this also leads the
company to concentrate on specific fields of information technology related services such as the
provisioning of cyber security and data backup services. In this respect the growth of the company
is always hindered in respect to the shortcoming of not having the adequate staff to diversify the
operations that the company undertakes.
Strength: The strength of the company involves the concentrated and highly focused workforce
which could bring to bear the entire work effort on specific tasks as the company only has a few
branches where the entire working personnel are concentrated. In case of the market competitors
this advantage does not exist as multiple branches of the competing companies make the work
effort concentration an improbable aspect in the business process.
Financial Impact: Reduction of deficit and increment in the Productivity and Sales: The
Company would also be seeking active involvement in the international market of cyber security
and cyber management training provision with a firm ambition and business objective of pushing
up the sales forecast and productivity scenario in terms of service management and retention of the
loyalties of the customer.
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2.2 Analysis of various methods to maintain and strengthen existing
performances
Porter’s Five Point Model: The threat of new entrants: The profitable market of cyber security
organizational service provision would be attracting new entrants and competitors but due to the
long standing experience of the business organization regarding the entire work format and the
technological edge that exists in favor of the organization, this threat would be minimized due to the
familiarity with the business discipline by the organization provided the experience and the
reputation that it has among the clients.
Threat of substitutes: The threat of substitute products is a significant one regarding the
availability of other options to the customers to avail apart from the product offering of the
established company. But in this case, the business discipline consists of the provision of training
and cyber security services and the staffs of the organisation holds the highest available
qualification and work experience in this regard. To this effect, the threat from substitute products
would be minimised as well.
Bargaining power of customers: Given the availability of multiple cyber security options that
could be accessed with ease by the potential and existing customers of the organisation, it would
have specific and important impact on the business fortunes of the company but the world class
services capability that could be provided by the organisation and the long standing customer
reputation and business integrity would be working in favour of the company to minimise the risk
that could be arising from the bargaining power of the consumers and the customers.
Bargaining power of suppliers: In case of the provided organization, the impact through the
bargaining power of the suppliers would be minimized as well given the nature of the services that
the business organization provides through testing and training facilitation to multiple clienteles.
Maintaining and strengthening existing business: The institutional business process maintenance
and ensuring expansion of the various business efforts is the core element that drives the market
operations of any business organisation in the long term. The necessity of ensuring unceasing
growth and expansion of the business process in the available market conditions and segments and
to maximise the product offerings to achieve greater and more diverse and variegated sales
proportion through the accessing of hitherto unchartered markets could be deemed to be the
lifeblood for any business organisation as this process maintains the momentum of market share
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possession efforts which could be generated and utilised by the business organisations of various
sizes such as that of the Micro, Small and Medium companies which are also identified as the
MSMEs, for the achievement of the business objectives of profit earning over invested costs and
maximisation of the revenue earning (Folkman, 2013, p.1914).
Consideration of the various levels of the challenge: This process functionality is associated with
the primary phase of the obtaining of the clarification and identification of the root causes of the
various problems and weaknesses that may persist within any business organisation. Consideration
and assessment of the various levels of the market and internal dynamics which are involved in the
emergence of any organisational weakness or any intractable problem related with the business
process propagation of the associated corporate organisations are of utmost necessity and
importance to discover the actual nature and features of the existing predicaments. Without first
analyzing and evaluating all the features which are intertwined with the situational and
circumstantial constraints within an organisation, it is next to impossible to come up with and
devise the effective solution package for the complete resolution of the problems and to absolutely
dissolving and removing the weaknesses, if any, which may impede the growth potential realisation
process of the business organisations, be they the large ones in the markets or the small or the
medium ones.
Problem solving orientation approach: The solution generation regarding any problem or
challenge in the general course of business operations require a specific attitude and psychological
propensity towards achievement of the solutions of the existing problems. It has been an observed
phenomenon that those who seek to obtain and innovate solutions for various problems actively
have a decided advantageous edge over those who do not do such a thing in terms of achieving the
intended solutions which are required. In case of the inactive individuals who do not take active
interest in confronting the problems head on and wait for the problems to materialise into
unmanageable proportions often have to deal with the unbearable and unavoidable circumstances
which emerge as after effects of the existence of such problems and such efforts of finally seeking
the solution of the existing problems and off the detrimental effects that such problems have, do not
meet with the same amount of success that could have been achieved if such personnel would have
taken a proactive approach in finding and dealing with the problems beforehand. Looking for the
existing and the probable problem architecture which may become hindrance for the productivity
enhancement of the work personnel in future regarding the business organisation, could lead to
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many more solution generation in a greater effect in comparison to inactively waiting for the
problems to come to the surface of the regularised functionalities relating to the business process
propagation of the corporate organisations (Whimbey et al. 2013, p.134).
Collection and comparison of necessary information: The process of collection and comparison
of the necessary information regarding the specifics of any problem associated with the internal or
the external business environment is one of the most important aspects regarding the discerning of
the factors of weaknesses and the completion of the procedures to resolve such weakness scenarios
within the business organisations. In case of any business organisations, what could be deemed an
observed phenomenon is in fact, the case that problems are often triggered and initiated by various
variables which are both observable and discernable to the market. In case of the situations when
the aftermath of the problems and challenges actually contribute in the reinforcement of the
complications, the procedure of observation, orientation and decision performance and finally
taking the action on this basis is the most effective procedure which actually gathers information
regarding the emergence, the sustenance and the effects of any problem and finally compares and
contrasts the analytical data with that of the various other environments which are both similar and
dissimilar in comparison to the one which has to be experienced by the organisation under
consideration. This entire process is known as Ooda Loop which is an acronym of Observation,
Orientation, Direction and Action Loop.
Figure 1: Ooda Loop
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(Source: Sherry and Mauro, 2015)
New opportunities: The revised processes and strengthening of the existing business capabilities
would invariably lead to the identification and realisation of the new opportunities for any business
organisation. This would be especially visible in the field of qualitative product output and in the
increased proficiency of the customer services. Further the new opportunities would reveal
themselves in the form of the improved scenario of management of the initial investment proposals,
modifications in the capital requirements, better financing in the new operating procedures and in
the time management as well that would be also vital to assess the required time limit for the small
scale organization to establish itself and launch the necessary product offerings in the market. But
the most important and valuable experience regarding the availability of the new opportunities
could be identified as the increased probability of availability of niche markets and better and
improved and expanded opportunities of export generation which would become available to the
company through the maintenance and improvement of the existing capabilities of the organisation
(Rostamkalaei and Freel, 2016, p.141 ).
Costing and finding finance for new projects
The estimation and evaluation of the project financing architecture is one of the fundamental
elements of management of improvement and progression within the organisational framework of
any business entity. This is the most important element of planning for the successful completion
of the various projects and undertakings by the respective business organisation and the importance
lies in the fact that the cost architecture associated with the overall business requirements which
may involve the amount of capital infusement necessary for the completion of the project and the
associated costs of production management such as the appropriation of the labour costs and
equipment and energy expenditure, is the single most influential element in the overall requirement
spectrum associated with that of the project completion and finalisation (Carey and Tanewski,
2016, p.305 ). Without proper estimation of the costs and expenditures and without selecting the
various sources which would be necessary in providing the required amount of finance for
undertaking new and more revenue generating projects, the survivability and the growth potential
realisation of the business organisations, such as the one under consideration in this thesis study
would not be possible to be translated into a reality.
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Risk assessment
Assessment of various measures of risks that always can occur at any given point of time is another
integral aspect of the business process performance. The institutional responsibility to assess and
manage the existing and potential risks that may arise out of any market oriented or business
process related sources is one of the principal functionalities of the business organisations (Amstel,
2015, p.137).
2.3 Suggestion of expansive probability of the business processes
Evaluation of management and personnel: The evaluative assessment of the professionals and
employees and other working personnel within any organisation is indicative of the organisational
efforts oriented towards maintaining the necessary levels of skills and competence within the
human resource architecture of the organisation. The considerations regarding the management and
personnel evaluation are generally oriented towards the evaluation of the Human Resource
Management support that every employee and newly recruited person requires to receive greater
training and individual support for the development of the necessary skill sets. In this regard the
regular auditing of the employee skills and encouragement of the working personnel from the end
of the company management to undertake self evaluation processes are some of the most notable
points that are required to be highlighted (Daly et al. 2014, p.152).
New Product Developments: The business organisation aims towards the launching of new
products which have been developed on the basis of the relevant market strategy formulation and
the company intends to introduce the same in the current market scenario with the consideration of
sales propagation and profit percentage maximisation. Such considerations involve the opening of
new outlets and putting up new E-commerce sites regarding the new product specifications.
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Task 3: Revisioning of the business objectives and plans to incorporate changes
3.1 Assessment on existing business objectives and plans
Business objectives: Every business activity is always focused around the achievement of the
business objectives of the respective organisations. The business objectives are basically the goals
and targets that the business organisations intend to achieve. The core essence of every business
organisation is to ensure the addition of the necessary and incremental amount of value to the goods
and services that such organisations could offer and in the private sector, such considerations
involve the profit maximisation processes. The business objectives involve the expansion of the
business potential and the possession of the market space, extension of the sales value and the
achievement of the market leadership and establishment of the brand identity which is essential to
achieve the necessary market space and customer loyalty to earn greater revenue on the invested
capital (Amato, 2013, p.300 ). The objectives of the respective organisations are as followed:
 To expand the business probability horizon.
 To operate with qualitative management of the business assets in the market so as to maintain the
possibility of achievement of business process expansion in the future.
 To achieve the capital gain ratio of at least 12% on a yearly basis on the net asset value of the
business organisation.
3.2 Review business plans and suggest areas where changes can be made
Business plans: Business plans are carefully crafted tactical and operational doctrines which
are formulated in respect to the various necessities and business vision statement that every
corporate organisation operates under. Preparation of these plans in accordance with the various
organizational requirements and in suitability with the prevailing market conditions is meant to
create a definite and planned roadmap to maximise the effect of all the organisational investment, in
terms of the growth capital and organisational material and human resource assets. A business plan
could be identified as a formal statement that includes the various goals, ambitions, aims and
objectives of any business organisation. Such objectives are generally assessed to be that of
logically achievable through the various business strategies which are utilised by the organisations
that have to operate in the various market conditions. Business plans also, more often than not,
include background information regarding the specific projects and business undertakings on which
they are formed (Bryman and Bell, 2015, p.142).
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Business objectives form the superstructure of any business organisation as the entire effort, be it on
the domain of finance generation or the marshalling of the necessary human resource assets or the
formulations of the marketing and sales processes to better provide the intended product offerings
and service delivery options and finally the management of the entire commercial process that
extends from the primary level of product generation and manufacturing up to the finalisation of the
product delivery to the customers, is intended to fulfil exactly the achievement of such objectives
under the prevailing market conditions. In this respect, it is always imperative for any business
organisation to formulate and carefully evaluate the strategic marketing and project management
plans regarding the business operations in respect with the business objectives that such
organisations intend to achieve. Only through the completion of such processes the prospect of
achievement of success on the investment of capital, time and work forces on part of the business
organisations could become probable to certain extents (Crane and Matten, 2016, p.149). The
evaluation of the business plans against the organisational objective reveals the strengths and the
weaknesses that such plans have and also highlights the challenges and the probability of success
that such planning procedures could have logically contemplated regarding the various imperatives
associated with the specificities involved in the ultimate coveted objectives of the business
organisation such as the aforementioned one which is under consideration in this thesis study
(McNeil et al. 2015, p.125).
Incorporating changes to plans
Strategic plans, though they are off the most importance within the fold of any business
organisation, can never be really deemed complete and effective. Business owners have to consider
the strategic planning process through the generation of the necessary and precise documents that
direct and control the work of the business corporate entities. These processes are necessary to be
the most flexible to be modified with swift effect as changes in the internal and the external
business environment could dictate the requirement of the introduction of the shifting of the
organisational and functional directions for the organizations (Collis and Hussey, 2013, p.122). It is
important to formulate and control and direct the most effective process to monitor changes and
incorporate the findings in the future planning mechanisms.
3.3 Prepare an action plan to implement the changes
Action plans: The concept of preparation of plan of action is a fundamental constituent for any
company, regardless of the size that such a company has. Commercial market based operations are
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always extremely dynamic in nature and the requirements in terms of the various operational,
financial and resource investment imperatives are always tackled through the application and
implementation of the specifically developed business action planning. Any business action plan is
meant to create a favourable and assistive and supportive business environment in favour of the
parent organisation. It is meant to be a guideline for keeping the entire organizational business
effort on the required business track. The action plan consists of either one or multiple internal
documents and memorandums to enlist and categorise the various necessary actions and steps
which are required by the organisation to be implemented on a regularised basis for the benefit of
the company. The action plan, in any business entity enables the company to generate greater
efficiency in the working forces and utilise the existing resources with greater effectiveness. Such
plans generally involve the initiatives which include the customers, the consumers, the employees
and the various stakeholders associated with the business process development and sustenance of
the commercial effort of the company (Sherry and Mauro, 2015, p.137). Ultimately the Business
Action Plan is meant to be a tool to facilitate the persuasion of success by the parent company.
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Task 4: Examination of the impact of change management on business
operations
4.1 The impact the proposed changes will have on the business and its personnel
Impact of change: The impact of the proposed changes would be visible with a significant effect
from both the inside and the outside of the business organisational framework. The
effects of such organisational changes on all areas of business such as the financing, work
dissemination, maintenance of the workforce morale, attribution of the individual job roles,
methods of production and on the availability of the material resources such as the appropriation of
the office workspaces and necessary supportive elements such as transportation and
communication. The application of the various changes and alterations of the work processes and
the utilisation of the new ideas would be able to introduce specific transformations within the
organisational framework and in the market based operations such in the sales and customer
services that would be tangible to everyone (Bruton et al. 2015, p.15). The external impact of the
changes in the business procedures and in the strategic planning process could be discerned from
various indicators such as the opening up of new competition horizon in the existing market
scenario where the company would be able to first access the new and unchartered market segments
and new competitors would be able to provide competitive bidding regarding every project proposal
as well. No business environment could be identified and professed to be stable indefinitely and this
would be the reason to pay particular attention to the changes and the impact of such changes on the
external environments of the business organisations. On the other hand, the internal environment of
the business organisations would be influenced as well because of the changes in the strategic
planning efforts. This is more evident in cases of the introduction of new technological inputs that
would induce greater workloads on the existing work personnel. This would entail the recruitment
of more and better skilled employees to perform the greater technical complications associated with
the revised and changed work conditions and responsibilities of the organisation. Just as the
external environment is susceptible to changes and shifts in the priorities of the organisation, so is
the case with the internal business and organisational environment as well (Custódio and Metzger,
2014, p.140).
Staff resistance to change: The changing organisational scenario would be met with the initial
resistance from the staff of the organisation who would be antithetical to any format of change and
this would entail a resistance factor on part of the concerned workers and staff which would have to
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be overcome through the application of various methodologies such as the change model utilisation
of Kurt Lewin.
4.2 The plan for how the changes will be managed in the business
Management of change: Change management or the CM process refers the various approaches
that have significant effect on the transitional phases of the various individuals, workgroups,
business teams, and corporate organizations through the utilisation of the numerous methods which
are designed and formulated to re-direct the resource management and allocation, business
process propagation and market operations, budgetary and financial and asset allocation and
introduction of substantial modifications in the modes of operations that that ultimately transform a
company or an organization from inside out. Organizational change management or the OCM
process considers the complications associated with the various aspects of the organizations and
determines the suitable and probable aspects of change and transformation. Organizational change
management principles, processes, propositions and practices closely involve the CM method as a
tool for rapid transformation of the individual and the organisation as well.
Figure 2: Change management model
(Source: Cameron and Green, 2015, p.130)
Change Model of Lewin: The change model of Kurt Lewin would be entailing three specific
models such as unfreezing model scenario when the process of change would be entailing the
creation of the perception that change is inevitable and necessary, then would be coming the actual
change scenario as the desired level of change in behaviors and processes would be finalized and in
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the third phase, which is known as the refreezing scenario, the changed environment would be
solidified and entrenched.
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4.3 The improvements in the performance of the business for two years
Figure 3: Progression graph of the respective company
(Source: Created by the Researcher)
From the above mentioned graph this could easily be deducted that the company has been
experiencing significant amount of business growth in the preceding two years. The growth forecast
is thus positive for the coming years as well. The performance and business process evaluation
graph clearly indicates that the growth rate of the company in the preceding years has hovered in
between 6% to 4% with slight shifts in the focus of the revenue earnings.
22

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