Small Business Management and Entrepreneurship

This assignment delves into the multifaceted world of small business management and entrepreneurship. It examines factors influencing E-Marketing adoption in tourism firms, perceptions of business ethics and CSR among small business owners, innovation capacity within SMEs, and the role of government in fostering entrepreneurial growth. The document also highlights critical decisions for ERP integration in SMEs and explores sustainable management practices in small businesses through case studies.

Small Business Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
1.1 Following is the profile of Sardo. The profile of the organisation should identify three
SMART objectives, context and competition in which the SBE has been operating, strengths
and weaknesses and key performance indicators / measures......................................................3
1.2 Provide an analysis of the business using comparative measures of performance of Sardo.
.....................................................................................................................................................4
Task 2...............................................................................................................................................5
2.1 Recommend with justification, appropriate actions to overcome the identified weaknesses
in the business.............................................................................................................................5
2.2 Analysing ways in which existing performance could be maintained and strengthened......6
2.3 Recommend with justification, new areas in which the business could be expanded..........6
TASK 3 ...........................................................................................................................................7
3.1 Assessment of Existing Business objective and plan............................................................7
3.2 Prepare a revised business plan to incorporate appropriate changes to overcome
weaknesses of the existing plan. ................................................................................................8
3.3 Prepare the action plan for implementing the changes ........................................................9
TASK 4............................................................................................................................................9
4.1 Reporting on the impact of the proposed changes on the business.......................................9
and its personnel.........................................................................................................................9
4.2 Plan how the changes will be managed in the business ...................................................10
4.3 Monitoring improvements in the performance of business within the time frame.............11
Conclusion.....................................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business can be defined as the process of buying and selling of goods and services. No
business can be started as a large business organisation. Every enterprise which has become huge
in future was started as the small scale enterprise. Small scale enterprise can be defined as the
firm which employees less people and has very less people. Generally Small scale business are
formed as proprietorship or partnership entity. The present report is based on Sardo which is an
Italian restaurant based in London(Ackermann and Audretsch, 2013). The following report
discusses about the SWOT analysis, comparative measures, actions to overcome identified
weaknesses, ways in which existing performance can be maintained, new areas to expand,
assessing existing business objectives and plan, revised plan to incorporate the changes in the
business plan, reporting of proposed changes and how changes will managed and monitor
improvement in the performance.
TASK1
1.1 Following is the profile of Sardo. The profile of the organisation should identify three
SMART objectives, context and competition in which the SBE has been operating,
strengths and weaknesses and key performance indicators / measures.
Sardo is an Italian restaurant based in London it requires SMART objectives to fulfil its
vision. Without the SMART analysis it is very difficult for the firm to attain its objective.
Specific: The vision of the organisation needs to very specific and it should be communicated at
various level of the company so that all the people associated with the company have a common
goal and objective. Sardo vision is to rated as the best restaurant in the city of London
Achievable: The vision set by the company should be achievable I.e. it should be realistic. It the
goal is unrealistic then it will not benefit the firm. The customer feedback of Sardo states that it
will achieve this objective within few years(Bridge and O'Neill 2012).
Realistic: To achieve the objectives it is very important for the company to know its aim. Sardo
has to consider its Human Resource, Capital and Materials to make the vision realistic.
Following is the SWOT analysis for the evaluation of external and internal factors of
Sardo:

 Strengths: The company has very customer friendly staff which provide superior
customer experience and customer loyalty is enhance by the high quality fresh products
used by the restaurant and the level of hygiene maintained in the kitchen.
 Weaknesses:
1. The restaurant is located only at one place which provide restricted presence to the company
in the London.
2. Since the place is restricted, less amount of customers are attracted towards it.
3. Poor communication among the authorities leads to non-effective services.
4. Whenever there is work load, the poor management is not able to effectively manage the
workers.
5. Proper integration between the organizational level is missing which leads to poor
communication.
6. Lack of necessary capital for equipment which affect the staff performances.
 Opportunities: There is growing demand for Italian cuisine in the Londonand the
company can also open its branches in other cities of UK(Burns,2010).
 Threats: There are many Italian restaurants in London including big companies like
Pizza Hut etc.
1.2 Provide an analysis of the business using comparative measures of performance of Sardo.
Sardo is an small-scale enterprise which provide Italian and Sardinian cuisine. It is
necessary for such small business enterprise to provide superior product at reasonable price to
achieve its goals in the competitive environment. An organisation can use various comparative
tools to measure its performance.
 Quality: The quality of the product is very important comparative measurable tool which
help in improving the organisation performance. Sardo uses high quality of raw material
in the preparation of its dishes which create customer loyalty and it increase the taste of
the dish. Also the entity can use organic food products to cater to health conscious
customer. The chef can prepare dishes as per the customer requirement which will create
customer satisfaction. At a higher level the organizational culture of Sardo can be affect
the quality of the products which will give competitors a better chance to win the market.

Quality is an element where food organization can differentiate themselves with their
competitors.(Mason, 2015).
 Price: It is also a great measurable tool as it helps to company to generate revenue and
profit which provide the organisation to acquire resources for its operation. As a Small
business organisation Sardo can use competitive pricing policy where it can provide high
quality product at reasonable price without affecting much on its operating profit margins
and return of investment. In order to earn desired profit margins company have to use
effective cost control techniques. Price of the product consider as a parameter where
customer compare the products. The price of the product should be relevant to the quality
of the product.(Fassin and Buelens, 2011).
 Location: For increasing the organisation performance location of business plays vital
role. The location of restaurant should be easily visible and within the reach of the of the
potential customer. Proper research of the area should be done before opening the store.
 Promotion: There can be various technique that can be used by the Small-business firm
such as Sardo to promote the organisation without making huge expense on Marketing.
To attract large pool of customer restaurant can use social media platform for promotion
such as Facebook, YouTube and Instagram(Smallbone and Et. al. 2010).
Hence, from the above discussed tool Sardo will able to increase its performance by achieving
sustainable growth by providing strategic advantage over the competition.
Task 2
2.1 Recommend with justification, appropriate actions to overcome the identified weaknesses in
the business
To improve the performance of the small-business it very important for the organisation
to have adequate knowledge of business and its weakness which are needed to be overcome.
Determining the weakness of the firms helps it to overcome such specific issues. Following are
the ways to overcome identified weakness:
 Sardo should review the feedback given by the customer whether online or offline and
effective measure should be taken so that customer experience can be enhanced.

 The restaurant only has a single presence in the city of London. The owners of the
restaurant should focus on opening branches in the other cities by franchisee system or
joint venture, it is suitable for increasing the revenue of the firm.
 Apart from the above weakness the firm has to face many competition from the existing
restaurants and other international large scale organisation such as Dominos and Pizza
hut.
 Sardo has to provide has provide great quality products and excellent customer
experience to provide competitive advantage.
 Sardo can contact with various food critic by holding a meeting and request them to
promote the restaurant in there blogs and magazines.
 Various marketing strategy such as product differentiation, price skimming can be used.
2.2 Analysing ways in which existing performance could be maintained and strengthened
The primary objective of the company is to enhance its performance in the market in
which it operates and customers are most important for the development of the company, so it is
the duty of the promoters to analyse each situation which affect the firm whether directly and
indirectly. Sardo is an Italian restaurant based in London with a staff of few people. All the
people working in the restaurant should focus on the following things so that performance of the
firm can be maintained and strengthened without affecting the overall objective of the
organisation:
 Education to Employees: Sardo is in customer facing business, so it should focus on
providing training to the employees about greeting the customers, how to take orders,
how to provide and serve food to customer. Promoters should provide training to the
people working in the restaurant so that friendly environment can be provided to the
customer. It is the duty of the employees to properly clean the restaurant and maintain a
level of hygiene. The chef should be provided necessary training so that the food served
should be authentic. Ingredients used will preparing the dish should be of High-quality.
 Customer's Feedback and promotions: There are various search website which provide
yelp, google etc. where customer can give there feedback and suggestion about the
restaurant these reviews should be closely monitored by the enterprise. Promotional

offers should be given to the customer on there special day such as birthday and
anniversary it will help the company to create a better brand image for the long-term.
 Staff Performance: The performance of the each member of the staff should be closely
monitored so that it can checked that no immoral act is been done by the employees and
if any person of the staff is engaged in such activity necessary action should be taken care
which will help the restaurant in working effectively and efficiently. Audit of the staff
work should be done periodically(Stokes, Wilson and Wilson2010).
2.3 Recommend with justification, new areas in which the business could be expanded.
There are 1000's of restaurant in the city of London and due to intensive competition in
the market there are less growth opportunities for the company. To overcome such hurdles Sardo
can use marketing techniques from Ansoff Matrix such Market development or Product
development:
 Market development: In this scenario existing products are launch in the new market.
Sardo can open its branches in other cities which help it tapping new markets. It can open
its branches in office campuses so that it can have fixed customer. Sardo has its own
website it can also focus on taking orders over website or phone calls. Sardo can establish
tie-up with Food delivery service and Food discounting service companies (Mason,
2015)
 Product development: New variety of dishes can be developed by the restaurants. Sardo
provide Italian and Sardinian food it can also introduce dishes of varied regions as well
so that new customers can also be attracted. Restaurant also has a option to provide
packaged food which will help in creating new customer-base. The company can also
give emphasis to its Bar section as people usually take wine with Italian food. Painting
can be put on the wall on the restaurant showing the beauty of Italy and those painting
should be on sale for the customers if they want. (Goss, 2015)
 The restaurant can sale items related to the Italian culture in the restraint. It can also sell
ready to eat food items or provide DIY kits so that there loyal customer can easily
prepare the food at there home itself. The restaurant can also sale there authentic herbs
and spices.(Stewart and Gapp, 2014)

The above discussed strategy will provide an better customer satisfaction and also gain
customer-base. The second advantage is that they can increase their sales with the help of
diversification.
TASK 3
3.1 Assessment of Existing Business objective and plan.
Sardo is an Italian restaurant based in London,UK. The are various plans developed by
the company to achieve its objectives and it try to implement those plans. Sardo basically
provide Italian and Sardinian food. The main objective of the business is to be rated as the best
restaurant in UK and provide high quality food at reasonable price so that it can provide high
quality products and enhanced customer satisfaction. The firm has to also create a competitive
advantage which will assist the firm in achieving long term goals(Korsgaard and Anderson,
2011).
The firm has to offer value for money products to its customers which will help in
satisfying existing customer base and also attract new customer. Necessary changes should be
made in the process and culture of the organisation to enhance the performance. In the near
future company is going to increase its number of restaurants and also introduce variety of
dishes. In the long-run Sardo will start distributing its franchisee. In today world people want to
try different cuisines and they are also concerned about the quality and taste of the food(Stewart
and Gapp2014). Sardo has to customize the food as per the request of the customer which will
create a good brand image and it also assures the customer that food is freshly prepared. Sardo
can start loyalty programs for the members customers under this program various promotional
offers are given to the member customer such discount coupons, free food after certain number
of visits, referral discount, etc. Company needs to use word to mouth advertising, promotion
through community.
3.2 Prepare a revised business plan to incorporate appropriate changes to overcome weaknesses
of the existing plan.
A business plan can be defined as the blueprint of all the long-term goals and objectives
of the organisation and it also help the company to design certain plans which will help the
company in achieving such objectives. Sardo has an realistic and achievable growth. But to
make a stand in the highly competitive market company has to follow some marketing

techniques. Necessary marketing techniques such as placing add on the local newspaper,
distributing leaflets at tourist destination will attract new customer. The price of the dish should
be competitively priced. Comfortable sofas and chairs, dimmed lights and relaxing music will
help the customer relax and will differentiate its ambience from other Italian
restaurants(Forsman, 2011).
The main focus of Sardo is to acquire new customers, retaining existing customers,
making the customer spend more and make frequent visits by the providing tasty and authentic
food. It also has to give emphasis to the create a loyal customer base as every restaurant
generate sales on its loyal customers special rewards should also be given to them. Sardo should
provide a friendly environment to the customers so that they can feel comfortable. A specified
area should be made for get-together and parties. The menu should be innovative and it should
be easy to understand. There should be dedicated customer service team in the organisation.
Proper machines should be provided to the employees taking the orders so that order can be
accurately placed in the kitchen and the waiting period for the customer should be lowered. All
invoices generated by the restaurant should be computerized so that managing the data can
effectively done(Jones and Iredale, 2010).
3.3 Prepare the action plan for implementing the changes
Every strategy has to have a change over a period of time so that entity is working
according to the present conditions in the market because policies drafted few years ago cannot
have same impact on the performance of the organisation(Kearins, Collins and Tregidga,2010).
To make necessary changes in the plans of the organisation the current information of the firm
should be properly evaluated by the senior management or promoters. The impact of the changes
made can be positive or negative. The focus of Sardo is on two markets segments:
 Peoples who live in Nearby area
 People who likes to eat Italian cuisines
Peoples who live in Nearby area: Sardo need to target the locals by conducting marketing
activities which will help attract the locals. There is developed market near to the location of
Sardo restaurant. It should attract the shoppers(Goss, 2015).
People who likes to eat Italian cuisines: Sardo provide authentic Italian and Sardinian dishes.
There is huge fan following of Italian food in London and London is also one of the most famous

tourist destination. Sardo should give use technique to attract people who love such food and
focus on providing tasty and authentic food.
Action plan table
Action
step
Responsible
Person
Deadline Necessary Resources Potential
challenges
Result
Value for
money
products
Production
team
3 Months Experienced chefs,
Advance equipment
Increase in
investment
Positive
Cultural
change
Human
resource team
5 Months Training regarding the
change to the
employees
Employee
resistance
Positive
Placing
Marketing
Techniques
adequately
Marketing
Team
9-10 Months Research and
Development,
Understanding about
the market
Unpredictable
risks, Change
in customer
behaviour
Positive
TASK 4
4.1 Reporting on the impact of the proposed changes on the business
and its personnel
The business is hugely impacted by the above changes. Business is generally affected by
the external factors along with its competitors. The above systematic plan will act as the
backbone for the business operations. The given below is the factors which are directly affecting
the enterprise:
 Hiring Skilled Staff: The change will bring new task to the company and definitely it
will affect the employees as they are not well versed to work in the changing
environment and therefore organization need to conduct training programme for them
which will cost to the companies. As if the hiring process will be such as the experienced
employee will be hired only then it will positively impact on the company and the
process of change will taken place effectively. (Khan and Alam 2011).

 Trends: The change resulted developing new trends within the enterprise which can be
create various adverse effect for the enterprises. The enterprise should be in a position
where there employees are well known with the changing trend within the enterprise.
 Social factors: Social factors are related to the Demographics of the area. The taste,
behaviour and lifestyle pattern of population. Age, gender, culture of the population also
determine the buying pattern of the customer. The policy of business should be drafted
considering the social and cultural differences(Fassin,Van and Buelens 2011).
 Technological factors: Every organisation need to consider the latest relevant
technological advancement for there business and it also help the company to stay
competitive. It can also affect the cost and quality of the product manufactured. For
example dough machine can be used by the Sardo for making the dough.
4.2 Plan how the changes will be managed in the business
There should be regular assessment of the changes made by the restaurant so that it help
in the success of the organisation and goals of the company can be achieved. The promoters of
the business shall make strategies considering all the factors that could adversely affect the
business objectives. There are 2 main elements of business that are its Employees and the core
business of the organisation as discussed below:
Employees: Peoples working in the organisation generally do not like changes whether it
is positive or negative for them. Employees working in the organisation has the feeling of fear,
uncertainty, loss of control and power etc. is the changes are applied. This will create a stagnant
situation in the market which is not in the best interest of the organisation. So changes should be
made also considering the Employees of the company as they are the people who directly serve
the customer(Chow And Et.al2011). The manager should set the bench mark for every employee
of the restaurant as it is small enterprise which largely based on the staff behaviour and quality of
its service and products. Proper training should be conducted so that newly joined staff is able to
maintain such quality. The managers need to also keep close eye on the performance of the staff
members and their services and ensures that no unethical activity is going on in the enterprise.
Core Business: The changes should be managed in the business considering what the
competition is doing; the need and requirement of the customer; Local, national and global

outlook of industry; Demographics of the population; Condition of the Economy; Social
environment; Technological changes(El-Gohary, 2012).
4.3 Monitoring improvements in the performance of business within the time frame
In order for monitoring the changes that have been implemented, it becomes essential to
monitor the overall performance within the time frame (Bridge and O'Neill, 2012). There are a
few methods that can be implemented t monitor the performances. Sardo can utilize them for
monitoring the changes implemented by them. These are as follows: Regular meeting: Meetings with the employees along with various other stakeholders
should be organized. This meeting gives an idea about various issues or problems that are
faced by the members in association with organization. By analysing them, the cited firm
will get an idea about areas that need improvement. Through this the overall performance
of Sardu will be enhanced. Also, the employees will be able to carry out their services
efficiently. Moreover, their revenues and profits will also increase. 360 degree feedback: In this method the employee working in Sardu will receive a
feedback in terms of his/her performance in organization, from those working around
him/her (Malhotra and Temponi, 2010). These include the supervisors, colleagues,
subordinates and other staff. This feedback may also involve external sources such as
suppliers or other stakeholders. Through this the employees working in the Sardu will get
a self-evaluation about their behaviour and performance in the cited firm. This will allow
the employees to have a knowledge of their areas in which improvement is required. So,
they will be able to enhance their working performance and efficiency. As a result of this
monitoring technique, the enhanced performance of employees will increase the brand
position of Sardo and overall increase its revenues and profits.
 Performance Report: 'The performance report will help the cited firm in analysing the
overall performance of the organization as a whole. Through this Sardo will get an idea
about the areas in which improvement is required. Also, they will get to know their
strengths which can be used by Sardo to overcome their areas of weaknesses
(Longenecker and et.al., 2013). If proper analysation about the cited firm is carried out
with help of performance report then, it will lead to effective management of the
organization. This will help in enhancement of the performance of Sardo.

These techniques will allow Sardo to effectively monitor each and every member in
association with it so that the organization can enhance its performance and expand in the global
market as well.
Conclusion
From the report it can be concluded that whether the enterprise is at small-scale or big-
scale, focus should be paid on understanding of the needs and wants of customers. With this,
they could provide quality services to their customers in order to achieve their trust. If customers
are satisfied then, the performance and market value of the organization increases. Also, routine
monitoring of the employees and other stakeholders should be done so that based on that
evaluation performance could be enhanced. Further, providing motivation to the employees will
also boost up their morale to carry their work efficiently.

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