Small Business Enterprise: Strengths, Weaknesses, and Financial 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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