Institutional Change Process and Small Businesses

The provided assignment content comprises a collection of journal articles, books, and online resources that explore various aspects of small and medium-sized enterprises (SMEs). The topics covered include the role of networks in SME innovation and firm performance, enterprise education, entrepreneurship, and business success. The sources also delve into the determinants of business success, applications of the business model, critical decisions for ERP integration, case studies of open-source implementation, and future research directions for collective entrepreneurship.

Small Business
Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Profile of Red Anchor Recruitment Ltd for identifying its strengths and weaknesses.........1
1.2 Analysis of the business using comparative measures of performance................................2
TASK 2 ..........................................................................................................................................3
2.1 Recommendation for appropriate actions to overcome the identified weaknesses in the
business.......................................................................................................................................3
2.2 Analysis of the ways in which existing performance of firm can be strengthened...............4
2.3 New areas in which the business could be expanded............................................................5
TASK 3 ...........................................................................................................................................5
3.1 Produce an assessment of existing business objectives and plans........................................5
3.2 Revising business plan to incorporate appropriate changes..................................................6
3.3 Action plan to implement the changes..................................................................................7
TASK 4............................................................................................................................................8
4.1Report on the impact of the proposed changes on the business and its personnel.................8
4.2 Plan how the changes will be managed in the business........................................................8
4.3 Monitor improvements in the performance of the business over a given timescale.............9
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Small business enterprise are those which are having less financial as well as non
financial resources. And they are carrying on their business activity on a very small level. They
are privately owned entities and its forms of enterprise are partnership, sole proprietor and
association of person. They have legal status and are incorporated as well as unincorporated. For
giving tough competition to their rivals Small business enterprises uses their better quality of
products at affordable prices(Abor and Quartey, 2010). Now a days it has been observed that
these entities are using their updated and innovative technological features to capture a major
share in targeted market. In this report case study of Red Anchor Recruitment Ltd is analysed
which is a SME as Federation of Small Businesses (FSB) has taken several steps to provide
strength to such entities which have less financial and non financial resources. As per the case
cited entity don't have any planning expert for entity(Altman, Sabato and Wilson, 2010). Hence
chief executive officer wants to outsource the business development planning for enterprise.
TASK 1
1.1 Profile of Red Anchor Recruitment Ltd for identifying its strengths and weaknesses
Red Anchor Recruitment Ltd. Is a recruitment agency which helps in bringing the top
talent into the businesses. In the different sectors, they are recruiting the candidates. Along with
this by using the business life cycle from start-up to mature enterprises and provide the proper
description of job. The main objective of the company is to provide the best services and also
recruit the best employees. Analysis of strengths and weaknesses is necessary for framing better
strategies in order to achieve the targets for which the entity has been formed. As there are
several different strengths and weaknesses of each and every entity it may be possible that the
strength of one firm is the weakness of other one. To be on top of market enterprise requires to
use its strengths in business processes and to remove its weaknesses through continuous
efforts(Ackermann and Audretsch, Eds., 2010). Better productivity and customer satisfaction can
be achieved only when Red Anchor Recruitment Ltd utilizes its properties and convert its
weaknesses into capability through hard work and proper procedure. Some of the strengths and
weaknesses of cited entity are mentioned below :
Strengths
 Lack of competition can be put in the category of strength for this enterprise as there are
very less rivals in industry of a particular location so this can an advantage for Red
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Anchor Recruitment Ltd as they can easily exploit there resources in order to get
profitability by providing services to its customers.
 As there is no any expert regarding planning in the cited entity but there are some other
employees who are still carrying on activities without any major disturbance which
means that they possess better skills and professional qualities. Which can be regarded as
the advantageous factor for it.
 Entity provides workshop and seminars to enhance the skills and competencies of their
employees so that they can work efficiently and they work towards the achievement of
enterprise's goals and customer satisfaction. As entity is a consultancy firm which provide opportunity to freshers and experienced
candidates so that they can start their career in a better way (Bridge and O'Neill, 2012).
For this they require to start with a better option and Red Anchor Recruitment Ltd has
collaboration with some better corporations.
Weaknesses
 As cited entity is a small business entity hence it has less option of financial resources to
finance its business activities.
 There is no any expert person in firm who can give better advice over the affairs of Red
Anchor Recruitment Ltd.
1.2 Analysis of the business using comparative measures of performance
A firm itself or stakeholders can analyse performance of an entity key performance
indicators such as customer satisfaction, customer retention, profitability factors like gross
margin per unit of production(Burns, 2010). Further return on companies investment is an
another aspect through which user can analyse that how much is profitability capacity of
enterprise in order to gain return over the investment which they have made on certain projects.
Another company is Austin Fraser Ltd. Which is also a recruitment agency and recruit the
employees.
Other factor is return on total asset which clearly shows that how much an enterprise can
earn by using such assets in business process and in business structure in a way for providing
better services to its customers. Key performance indicators are nothing but the objectives of Red
Anchor Recruitment Ltd hence an analysis should be made over the objectives of an entity and it
should be compared at the year ending so that they can evaluate that these purposes are fulfilled
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or not. Some of performance indicators of Red Anchor Recruitment Ltd and their characteristics
are mentioned below :
 Red Anchor Recruitment Ltd should adopt better methodologies so that they can
efficiently achieve the performance standards which they estimating. On the other
hand, Austin Fraser Ltd. not using appropriate methodologies so that they can not
maintain standards.
 A regular and continuous check over the process of enterprise can be helpful for entity
as it provided step by step information regarding the efficiency of process(Ebert and et.
al., 2014). As well as it can assist by providing immediate solution for problems which
can reduce profitability and capability of firm. Austin Fraser Ltd. have to use
appropriate strategies to resolve the problems and also provide reward on the basis of
performance of the employees.
 During check managers and leaders should make a proper report in regards of survey
being conducted for specific activity. As this report can be helpful in future obligations
and operations as they have to research over facts in some other processes next time
but they sufficient data related with it.
TASK 2
2.1 Recommendation for appropriate actions to overcome the identified weaknesses in the
business
If a business firm wants to be successful then it requires meet its objectives, and
weaknesses, threats and also miss utilization of opportunities. Hence this can be concluded that
better utilization of possibility and elimination of weaknesses can assist an entity to improve its
performance(Forsman and Temel, 2011). Some of the weaknesses are mentioned below :
 Availability of less staff members with required skills.
 Employee turnover is high of cited entity hence this can become a reason of reduction
in cited entity's goodwill in market.
 Scope of operation is very limited
 Less availability of financial sources.
Such weaknesses can easily be eliminated through effective steps and decisions. Better
planning and strategies as well as their implementation can be helpful for it. There are certain
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techniques which are available with it which can be used against these kind of powerlessness.
Such techniques are analysed and mentioned as following :
 As enterprise is working as a consultancy firm hence their operations includes
recruitment of candidates with better skills on behalf of their clients. So to provide better
human resources to their clients they require to maintain experienced staff members who
are able to select and recruit better personnels.
 Employee turnover can be predicted as the reason of major destruction in respect of cited
entity(Gronum, Verreynne and Kastelle, 2012). As this reduces the fame of entity in
front of its customers and rivals as well. So managers and leaders needs to implement
certain procedures for example ; exit interviews, through which they can understand and
identify the reasons through which they can easily take action against such factors
because of which its employees are leaving or resigning from their respective
designations.
 Red Anchor Recruitment Ltd requires to widen its scope to cover more profitable
activities(Hatten, 2015). As well as they requires to appoint an expert who can give
better guidance to small business enterprise in its activities.
 Company should identify better financial sources which are cost effective and also
which can fulfil their business requirements.
2.2 Analysis of the ways in which existing performance of firm can be strengthened
For better future and better present it requires to evaluate the potentiality and to use it
towards business process. So that the processes can give better results or output and it is one of
the toughest task for the owners of small business enterprise to continuously maintain the
existing level of performance(Herbane, 2010). If cited firm wants to maintain and strengthen the
existing performance of itself then it requires to make certain crucial steps.
They require to use some marketing techniques to promote their services and
acknowledge the customers and clients about their existence in market. As customers are the
main strength of an entity they can be a reason of entity's success and they can also become the
reason for a firm's destruction. Hence managerial personnels have to take proper actions against
them. Managers and owners of Red Anchor Recruitment Ltd have to serve them with the
services which they want. Existing performance can be maintained through proper utilization of
available financial sources as SME have less financial sources available with it.
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Hence they require to meet their targets in these available sources and for this they have
to perform really well in the targeted market by the implication of better financial strategies.
Performance check can be regarded as an another tool through which managers and leaders of
Red Anchor Recruitment Ltd can track their performance. They can eliminate that factor through
regular check which is acting as hurdle in growth of cited entity. Ethics can work to build a
better image and reputation of Red Anchor Recruitment Ltd in targeted market which can attract
big clients from around the world hence this will assist organisation to enhance its revenue and to
improve productivity(Islam and et. al., 2011). As through it they can provide service with quality
which is required by its clients. As it has less competitors in market so it can make better impact
over the targeted market in very less efforts.
2.3 New areas in which the business could be expanded
Small business enterprises should always works towards research of new areas where
they can expand their business as enhancing their scope of work is necessary in order to increase
their customer base(Jasra and et. al., 2012). Which can indirectly assist it to increase its revenues.
This will also generate competitive advantages against their rivals as through this they can utilize
their available financial resources and human resources effectively which can put the business
entity on right path which can push it towards its targets.
Some large business firms have a drawback as they have a huge mass of human resources
and they set big targets which gets tough to achieve. This create a complex scenario in which
employees gets confused over their duties. But in case of Red Anchor Recruitment Ltd, it has
less number of employees working in its organisation hence they have less point of reference. So
through planning and staffing process managers can assign duties and responsibilities to their
subordinates(Jones and Iredale, 2010). Due to this organisational structure doesn't get
complicated and every employee knows that which task is to be performed by whom and the
manner in which they to complete it. Red Anchor Recruitment Ltd requires to start activities like
providing advice to their clients in order to maintain their human resources in way which is
required by their organisational structure.
This will enhance scope as well as new areas in which they can deal and earning of
revenue. They should consider different types of opportunities which are there in market so
enterprise can grow their operations and they can globalise their business operations by
expanding its business beyond the borders of nation.
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TASK 3
3.1 Produce an assessment of existing business objectives and plans
Every business firm has distinct business objectives some of them have very high
standards and some of them have such goals which can easily be achievable by applying less
efforts. There are some unique business targets of Red Anchor Recruitment Ltd which are listed
below :
 Customer satisfaction is the biggest objective of cited firm as they want to provide
exactly that service which its customers are seeking for(Kitching and Smallbone, 2012).
This objective can provide stability to its business and make it profitable. Brand image of
cited entity can be enhanced through the fulfilment of this objective.
 They are working towards providing better services at affordable prices to its clients on
global level so that they can eliminate their rivals out of the market place(Lambert and
Davidson, 2013). By this they can create a situation of monopoly through they can easily
capture the market share in an efficient and effective way.
 The main motive which the cited entity have to provide training and development to its
employees so that they can provide better service to organisation and they can help it to
achieve its goals and objectives.
 There are many such agencies working at UK but they are providing same services with
high market price which reduces interest of customers or big corporate houses to appoint
them as their consultancy for the recruitment and selection of their entity. There
selection process is also not effective because of which they hire less skilled and
qualified personnels for their clients. But on the other hand Red Anchor Recruitment Ltd
has more skilled employees who select and recruit better employees for their clients who
are most dedicated towards performing their duties. So through providing quality
services to their clients they can retain them for longer period.
3.2 Revising business plan to incorporate appropriate changes
To revise the business plan is important for the success of organisation and to survival.
The manager of Red Anchor recruitment company have to implement the business strategies for
retain the customers for a long period of time. The organisation should take suggestion from
expertise for operating the business activities properly. The members of the company has to
make new objectives with the considered of internal and external environment so that they can
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attain the success in competitive market(Malhotra and Temponi, 2010). It is the responsibility of
high authority to review the business plan whenever there are change in the market operations.
The managers has to focus on to attract new customers, retaining the exiting customers. They
have to build a loyal customer base to beat their competitors. The process of business plan to
incorporate the changes in existing business plan will help the company to satisfy more an more
expectations of customers and these process are as follows.
Forecast – The manager has to identify that what are changes in existing and new plan.
So through this Red Anchor recruitment company can identify future sales.
Budgeting – The manager has to pay attention on the budgeting policies for setting new
business objectives. While setting the budget it will help the company to invest the funds in
different activities and to get the high return from them. The manager has to prepare the proper
budget so that whatever changes are made in the business plan can take corrective steps for
making proper modification in objectives.
Compare current year performance with last year – The manager of Red Anchor
recruitment company have to compare the current year performance with last year. They have to
properly identified the changes which are revised for the business plan(Olson and Staley, 2012).
According to this the employees have to make more efforts for implementing the new change
properly.
3.3 Action plan to implement the changes
The company first have to set the objectives for making the action plans properly. The
managers have to implement the changes according to the needs of employees so that they can
work properly and give their best from the available of resources. The following action plan will
help the company to implement the changes to provide quality of services in terms of to recruit
the most potential candidates.
 Set out the plan to implement the changes : The plan should be made by taking the
advices from expertise so that they can provide quality of services to customers. For
setting out the implement changes the managers has to collect the information from
others so that they can measure the performance according to the assumptions.
 Implement the system to manage, monitor and to evaluate the changes: In this the
managers has to find out the changes where it is required and implement the different
strategies and plans. The manager has to assign the task according to the employees
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capacities so that they will give best results. Red Anchor recruitment company has to
build the proper team so that they can monitor all the activities which are performing by
the workers(Rae, 2010). After monitoring all the activities, in evaluation of plan they
have to identify necessary changes for implementing appropriate plans.
 Performance measures : At this step, the employees and staff has to measure their
performance that whether they are providing the best quality of services or not. Along
with this Red Anchor recruitment company have to take corrective actions for getting the
best possible outcomes.
 Set milestones and setting deadlines : In last steps the employees have to use the those
parameters which are decided by high authority to attain the goals of the company.
Further, they have to set the deadlines for achieving the targets with in time period and
can provide best quality of services to customers.
TASK 4
4.1Report on the impact of the proposed changes on the business and its personnel
For the growth of any business, it is important for them to consider each and every aspect
of environment just for survival and attainment of target of enterprise. Proper examination of all
the factors which are able to perform task can be considered and with help of those targets can be
achieved. Every change made a vast impact over on the business either in positive manner or
negative manner. Plan implementation is compulsory for achieving the targets and objectives of
a firm. Company has to recruit such number of employees which helps other firms to achieve
their targets properly(Ratten, 2014). It helps to other entities to perform well and produce good
quality products and services. They have to recruit only such employees which have positive
attitude among staff members. Managers have top take decision which are beneficial for others
firm and also they have to take care about the interest of the employees and client. They have to
recruit such type of workers to various organisation which those firms wants. They are helpful in
selecting such employees which are important for various organisation and they select only such
workers which have same interest in respect of organisation.
Negative impact is of the wastage of money. Which means by recruitment of wrong
employees in different firm. Some organisation use outdoor recruitment service and for that they
have to pay such recruitment company. If, cited organisation select non compatible person in to
such organisation where the interest of both of them not same, then it should be treated as
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wastage of money. As much as the organisation expands, recruit companies have top recruit such
employees which can give best result to the organisation. Personnel is going to face some issues
and crises when the changes are made in an organisation.
4.2 Plan how the changes will be managed in the business
Every business requires to change its activities as per the need of time. As development
in any activity can only be made if the entity make growth on a regular basis. These new
activities are supposed give a hike to managerial position and growth through which an entity
can accomplish every aspect for which they are planning their activities(Schaper and et. al.,
2014). In order to provide better products and services to consumers every cited firm requires to
provide better and upgraded products to them. While performing such changes they require to
consider the needs of their customers so that they can fulfil their needs. Maintenance of changes
can only be done through making continuous efforts. Further manager and leaders of entity also
requires to check the process of maintenance of regular and continuous basis so that they
maintain growth in right direction(Stokes, Wilson and Wilson, 2010). They require to research
over the market factors which can referred to be as an obstacle which can stop them to attain
what they are planning to accomplish. Through research and analysis they can estimate the
extent to which such elements can impact over the business operations.
4.3 Monitor improvements in the performance of the business over a given timescale
Organisation have to monitor all the activities of an entity and also examine all the
changes which are made by the firm so, that they can improve the level of performance which
leads to helps them to achieve targets effectively. The cited organisation have to monitor all the
completion of organisation by using various methods. Which helps them to improve their
organisational performance(Thornton, Ribeiro-Soriano, and Urbano, 2011). With the help of
some performance measuring method it became easy for a firm to monitor their employees
performance weekly and on regular basis. This is very helpful method for them to improve the
performance of their workers by using such deviations. By measuring such deviations, it became
easy for to all the organisation managers to improve the efficiency and
effectiveness(INSTITUTIONAL CHANGE PROCESS STEP 5: MEASURE AND EVALUATE.
2017). By measuring such performance result the efficiency can be increased which further more
leads to attain the targets(Storey, 2016). Authority measure such differences which helps them in
finding out the appropriate method for overcoming such problems.
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An organisation can measure its performance by doing surveys and research. These are
very helpful for them. If customers are going to continuously consume branded goods, then it
became very difficult for small business entities to grow and increase the number of sales.
CONCLUSION
As per the above mentioned facts in this file it can be concluded that by proper and
effective management of financial and non financial sources Red Anchor recruitment company.
Improvements should be made by cited entity but the more important thing is to maintain such
improvements. So that company can grow continuously and it can earn better brand image in
front of its customers and rivals.
REFERENCES
Books and Journals
Abor, J. and Quartey, P., 2010. Issues in SME development in Ghana and South Africa.
International Research Journal of Finance and Economics. 39(6). pp.215-228.
Ackermann, S.J. and Audretsch, D.B. Eds., 2013. The economics of small firms: A European
challenge (Vol. 11). Springer Science & Business Media.
Altman, E.I., Sabato, G. and Wilson, N., 2010. The value of non-financial information in small
and medium-sized enterprise risk management. The Journal of Credit Risk. 6(2). p.95.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small
business. Palgrave Macmillan.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave
Macmillan.
Ebert, R.J., Griffin, R.W., Starke, F.A. and Dracopoulos, G., 2014. Business essentials. Pearson
Education Canada.
Forsman, H. and Temel, S., 2011. Innovation and business performance in small enterprises: an
enterprise-level analysis. International Journal of Innovation Management.15(03).
pp.641-665.
Gronum, S., Verreynne, M.L. and Kastelle, T., 2012. The role of networks in small and medium‐
sized enterprise innovation and firm performance. Journal of Small Business
Management.50(2). pp.257-282.
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Hatten, T.S., 2015. Small business management: Entrepreneurship and beyond. Nelson
Education.
Herbane, B., 2010. Small business research: Time for a crisis-based view. International Small
Business Journal.28(1). pp.43-64.
Islam, M.A., Khan, M.A., Obaidullah, A.Z.M. and Alam, M.S., 2011. Effect of entrepreneur and
firm characteristics on the business success of small and medium enterprises (SMEs) in
Bangladesh. International Journal of Business and Management. 6(3). p.289.
Jasra, J.M., Hunjra, A.I., Rehman, A.U., Azam, R.I. and Khan, M.A., 2012. Determinants of
business success of small and medium enterprises.
Jones, B. and Iredale, N., 2010. Enterprise education as pedagogy. Education+ Training. 52(1).
pp.7-19.
Kitching, J. and Smallbone, D., 2012. Are freelancers a neglected form of small business?.
Journal of Small Business and Enterprise Development.19(1). pp.74-91.
Lambert, S.C. and Davidson, R.A., 2013. Applications of the business model in studies of
enterprise success, innovation and classification: An analysis of empirical research from
1996 to 2010. European Management Journal. 31(6). pp.668-681.
Malhotra, R. and Temponi, C., 2010. Critical decisions for ERP integration: Small business
issues. International Journal of Information Management. 30(1). pp.28-37.
Olson, D.L. and Staley, J., 2012. Case study of open-source enterprise resource planning
implementation in a small business. Enterprise Information Systems. 6(1). pp.79-94.
Rae, D., 2010. Universities and enterprise education: responding to the challenges of the new
era. Journal of Small Business and Enterprise Development.17(4). pp.591-606.
Ratten, V., 2014. Future research directions for collective entrepreneurship in developing
countries: a small and medium-sized enterprise perspective. International Journal of
Entrepreneurship and Small Business.22(2). pp.266-274.
Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small
business.
Stokes, D., Wilson, N. and Wilson, N., 2010. Small business management and entrepreneurship.
Cengage Learning EMEA.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
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Thornton, P.H., Ribeiro-Soriano, D. and Urbano, D., 2011. Socio-cultural factors and
entrepreneurial activity: An overview. International small business journal. 29(2).
pp.105-118.
Online
INSTITUTIONAL CHANGE PROCESS STEP 5: MEASURE AND EVALUATE. 2017. [online].
Available Through :<https://energy.gov/eere/femp/institutional-change-process-step-5-
measure-and-evaluate>. [Accessed On 27th March 2017]
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