Identifying and Rectifying Business Weaknesses

This assignment delves into the crucial topic of identifying and rectifying weaknesses within small businesses. It emphasizes the detrimental effect weaknesses can have on business success and explores effective strategies for their mitigation. The focus extends to understanding how to manage these weaknesses and adapt to the ever-changing business landscape.

SMALL BUSINESS
ENTERPRISE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Profile of small business with strengths and weakness ........................................................1
1.2 Analysis of business by comparative measurements of performance ..................................2
TASK 2 ...........................................................................................................................................4
2.1 Techniques to overcome with weakness .............................................................................4
2.2 Methods of maintaining and strengthening performance .....................................................5
2.3 Recommendation and justification of areas for expansion of business................................5
TASK 3 ...........................................................................................................................................6
3.1 Computation existing business objectives and plans of organisation...................................6
3.2 Revision business plans to incorporate appropriate changes...............................................8
TASK 4............................................................................................................................................2
4.1 Report on the impact of the proposed changes on the business and its personnel................2
4.2 Plan how the changes will be managed in the business........................................................3
4.3 Monitor improvements in the performance of the business over a given timescale............3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Small sizes business organisation have employees generally having having less in
numbers around 50-70 they have common motive of fulfilling basic need by engender revenue.
Small business entrepreneur initially have short term goals and and mission to as they focus on
spreading their roots in market. With new government policies coming up focussing of calling
small business working on government contracts they are about to invest £11.4 on these small
business start-ups also easing out licensing procedure for to boost small business sector (Bridge,
2012). According to report it has been observed that around 1 million small business companies
are expected to come up in next 4 years which will boost economy of UK in coming decade.
Hence “ ZIZZI” has come up with a very families face and a attractive restaurant for local
population. This report is segregated into 4 parts helps in explaining the value of small-business-
enterprise and their process of running the firm. This assessment will be highlighting profile and
identity of a company and practical and theoretical analyse its strength and weakness and
overcoming obstacles. This also focus on adapting appropriate strategies for alive and kicking
plan as well as new ones.
TASK 1
1.1 Profile of small business with strengths and weakness
ZIZZI is kind of Italian chain restaurant having 140 branches which can be found in
United Kingdom and Ireland. Their main aim to provide great Italian inspired food in which an
individual have an amazing satisfaction touches unique to local environment. They have menu
including rustica piccante, spiedini pescatore, vegan classic pizza, white chocolate cheesecake
and many more. It is using better technology to provide easy and comfortable services to its
customers as well as do charity work along with it for the maintenance of social welfare to
improve society. For that purpose, they are using Pennies and charity boxes regarding fund
raising programmes in all branches of ZIZZI restaurant to collect amount by providing clients t
tap on option of paying bill increased by their ability and donate to charity funds. They have a
focus towards not only innovations of food but they want to work with fresh talents as well as
renders art and music service also (Schaper, 2014).
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Strengths: The basic strength of any firm is its manpower and resources to work as they
need to utilises in a better way can consider in itself. Some of them are as follows:
 This firm has everything unique regarding decoration, spacing, kind of furniture and
servicing which really attracts new clients and having an important feature is that they
will take care of privacy of each customers which have a positive impact on them.
 They have unique recipes and focus on innovation of food by providing delicious one.
 Its charity work is also impacts in positive way so that people think that if they prefer the
restaurant then will have an opportunity to become a part of charity a well.
 Most of people like background music while eating and this firm have ability to fulfil this
interests in restaurants.
Weakness: It is needed to observe and analyse the threats or problems to solve them
immediately as to avoid loss in productivity or resources (Storey, 2016) Some of weak points are
given below:
 It has range of expensive food regarding new recipes which reduce clients as per their
budget of income and not affordable for every one.
 As they have several branches so that if they want to apply some change then requires a
high amount of money which seems to be difficult many times.
People face problems to reach location of these restaurants which reduces the profit
maximization as well.
1.2 Analysis of business by comparative measurements of performance
Generally, the measurement of performance is necessary to be done as it will help in
identifying mistakes as well as to evaluate performance of employees regarding standards of
performance decided by superiors to attain the targets and objectives of organisation. Sometimes,
they can calculate working efficiencies of an organisation by comparing it with any other
competitive firm to attain better productivity and make strong competitor in market (Goffee,
2015).
Comparative measure of performance using financial factors
Profit and loss account for year ended 30th April 2016 to 30th April 2017 are stated in the
below table.
Alexander The Great Zizzi
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£ £
Sales 150 300
Cost of Sales 80 180
Gross Profit 70 120
Overheads 20 50
Net. Profit 50 70
Balance sheet of “Zizzi” restaurant for year ended beginning at 30th April 2016 to 30th
April 2017
Year 2016 (value in £) 2017 (value in £)
Set possession 20 15
Inventory 8 20
Debtors 15 40
Bank 2 0
Entire 25 60
Creditors 6 20
Bank bill of exchange 0 15
Full 6 35
Current ratio = current asset / current liability
2016 2017
Net profit margin = net profit/ net sales * 100
40 / 130 * 100= 30.7
Net margin = 45/ 250*100= 18
Gross profit margin= gross profit/ net sales *
100
50/130*100= 38.46
Gross margin = 60/250*100= 24
Quick ratio = current asset – stock/ current
liabilities
25000-8/ 6000= 4.165 times
Quick ratio = 60000- 20/ 35000= 1.71 times
Current ratio= 25000/6000= 4.16 Current ratio = 60000/35000= 1.71
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Balance sheet of year ended 30th April 2016 and 30th April 2017 of Alexander the great
restaurant is described below:-
Year 2016 (value in £) 2017 (value in £)
Fixed Assets 20 15
Current assets
Stock 9 20
Debtor 12 36
Bank 3 0
24 56
Interpretation: As per above data, it is mention that Zizzi is much better company as
compared to Alexander The Great. Zizzi have better turnover than other one. sssssss
TASK 2
2.1 Techniques to overcome with weakness
This is a mandatory task to identify threats and problems to overcome with them because
they affects negatively for attaining missions and objectives of firms regarding outputs of firm. If
the firm will cope up with its weaknesses then they can increase opportunities of success and can
attain more profit as expected by assumptions. This task is basically done by supervisors but
employees can provide information about problems arising due to working hours to solve them
at a time to avoid delayed projects as it reduce satisfaction of clients which may results in
decreasing customers of an organisation. Some of overcoming factors are as follows:
 Pricing issues: People make buying decisions only when the quality of product is good
then another factor is inter related which is price of product because a person can only
prefer particular product when it is affordable by them according to their budget of
income. So it is necessary to improve the qualities in cheaper rate to make it comfortable
to buy for customers. Overall it should not be more expensive because it reduce
costumers which turns to decrease profitability of firm.
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 Sufficient capital: If it is needed to implement some new changes as per demand of
current trends of market then huge amount of money desired because of having several
branches at different areas. The firm have to maintain margin of capital by kept in mind
needs of all branches so that they can overcome with urgent wants and issues.
 Location Issue: Many times customers find difficulty to reach at several branches of
restaurant so that branch owners have to take care of providing proper address of the
same because it results in reducing clients (Burrows, 2015). The fact is that people prefer
some other restaurant if they will face more problems to reach location so it will affect
profitability of organisation as well as renders negative impact of it amongst the clients.
2.2 Methods of maintaining and strengthening performance
It is an important task to observe and analyse performance of employees to overcome
with threats and issues because it may be results in huge loss of money as well as resources and
the profits assumptions will also get affected by them. Sometimes, it is observed that issues may
convert into a big loss as in case of money as well as resources or machinery provided in
company. It can be detected as wastage of resources as well as manpower and they need to solve
all that to attain a better output regarding firm's goals and objectives. Overall the organisation
have to take appropriate actions to cope up with problems and issues. Some of actions are given
below:- Maintaining employee relation: It is very necessary to build up good relations between
colleagues as well as between superior and sub-ordinate then both them feel comfortable
to do work together and they can share their ideas and views with each other for a better
performance. By creating a healthy a relation, it will become quite easy to avoid conflicts
because they have a negative impact on output expected to achieve in future Creating healthy environment: A healthy environment is basic factor to maintain
performance level as the employees can work peacefully without stress so that they can
work more effectively and efficiently. Every firm has its own particular environment
regarding its manufacturing strategies and policies which reflects the environment to
employees or new joiners. If a person feels comfortable then only they can work
efficiently on an organisation and utilise their skiils and abilities more effectively.
 Performance appraisal: the superiors have not only a task to give orders to its sub-
ordinates but they have to conduct appraisal sessions by providing some rewards or
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bonus or communicating with appraising words to motivate them. These sessions are
necessary to build up and maintain morale of workers so that they will improve their
skills and abilities to provides better outputs in limited period of time.
2.3 Recommendation and justification of areas for expansion of business
Expansion and growth are important objectives of businessman and entrepreneurs for
small scale organisation but what are important factors which could help in expansion of
business by less effort and gaining more .It cannot be considered as a cup of tea but require deep
analysis and study by experienced and specialised people to attain for procurement of target.
Manager can expand business of ZIZZI restaurant by adopting and analysis some smart features
cost -Funding is an important feature of every business the targets can be achiever while having
adequate capital for investment.
Foremost feature of an entrepreneur is requirement of sufficient fund needed in business
and plant it to invest efficiently.
Expansion to new geographical boundaries -the ideas behind this is to sell product to
customers of new market .The important criteria which must be taken care is those new
customers can be of different segments,locations and niche (Blackburn, 2013).
Acquisitions – It is recommanded as faster way to for growth and expansion. The small business
are tend to acquire smaller business hence making it a cost effective factor as cost of
infrastructure and other inventory are tend to be cheaper.
Selling more variety of products - A Italian based ZIZZI apart from expansion can try new
variety of food in their menu which will surely attract more customers and may increase chain
of customer added to expansion procedure.
Promotion – It is regarded as one of the best food restaurant in terms of food so a good effort of
promotions through printed media and visual media as well as through providing discount and
fast home delivery will help organisation to penetrate deep into market of all over UK.
Current trends –Apart from analysing niche of customers in society they must also understand
chancing demand of food and tastes of people . Not only fast food they must also focus on other
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types of foods like meals and fast foods. They must understand that expansion must not be profit
driven activity bust also must be customer oriented.
TASK 3
3.1 Computation existing business objectives and plans of organisation
Strategies are regarded as an momentous part of every enterprise which help in setting
up objectives ans implementation of plans which whelps in achieving target in minimum period
of time. Strategies are made differently for short term and long term goals which helps in
focussing on in capital maximisation for both profit and wealth maximisation criteria. For
making this type of plan they need a superior vision mission, core competence, qualities and
defined objectives. The objectives which have been adapted and implemented are as follow
Employees perception-
 The important aspect of workers is to work in positive and healthy environment while
trying to create a friendly and harmonic relationship with fellow employees ,they can do
so by creating resonance and support in achieving defined target.
 They must wish to have perks , appreciations , remuneration,emolument and
compensation
 Embellishment and improvement in their skills (Olson, 2012)
Buyers prospective-
 Desire for hygiene and paramount quality of food is considered as the first and foremost
priority of customer.
 Wish for friendly environment and good services.
 Good presentation of food with extra adroitness e.g. Extra cheese, napkins , ketchups.
Objectives and equitable of shareholders -
 focus on promotion activities and branding to spread business all over UK.
 Maintaining long term investments plans with organisation helps in making strong
bonding between them ,this mutual bonding will help both investors and businessman .
 Helps in maximizing dividends by planning to have maximum dividend.
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 Wish to have stable market so that the company can challenge bigger competitors and
grow rapidly having accepting right ethical policy.
 They must expect company must provide outputs as per the marketing and branding
which will be helpful in gaining and controlling of bigger market in a rapid way.
3.2 Revision business plans to incorporate appropriate changes
A good and productive business plan helps in fetching more gain in market place this
will help in implanting good strategies and ultimately increase success in business of the
organisation. The revision helps in increasing efficiency in covering all factors related to
business which plays a very prominent role in achieving objectives of organisation. Through this
process managers can identify abstruse and clandestine issues which can create obstacles in
attaining business objectives. Main ratiocination behind this process is to ameliorate current
plans per customer demands and choices. Other important factors like external and internal
environment are also used while making decision for reducing losses and obstacles other then
this firms also try to expand their business in different geographical and demographic areas
where they face subsequent risk in business due to non availability of resources and presence of
competitors in marketplace main competitor for ZIZZI is Alexander which is also providing best
customer services. Other major factor of revision of business plan is to fulfil all demand
according to requirement of market. The emend must be on overall scheme accordance with
current need expectations of customers and overall association. By revision they must ensure that
all the areas are covered and even a single corner of analysis cannot be kept vacant. For revision
they must use certain analysis tool for analysis and revision of there plans and strategy more
efficiently . Certain analytical tools like SWOT, PESTAL are the the key theoretical analytical
tools and for mathematical calculation to carry-out practical analysis they use ABC tools .
These tools have an advantage of carrying out of analysis of every areas separately hence
making the process of rectification and giving solution must easier. It is therefore necessary to
revise the implemented plans on regular intervals to make changes according to the needs.
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3.3 Prepare an action plan to implement the changes
On the basis of above interpretation ZIZZI need to make strategy for executing
complete plan with the help of experienced and highly educated persons. Action plan should be
written in a proper manner as it draw policies to achieve the sustainable goals. On the same hand
implementation also require proper design of plans and measurement. It is accomplished with the
the help of vision and mission of customers or employees which should be aligned with the
organization. Implementing the action plan is challenging process for any of the business for
fulfilling the demand of the employees as well as the society. Therefore the proper allocation
should be done which is explained as below:
Task Duration
Programme and action 4 to 6 days
Revised prepared business plan 6 to 7 days
Evidences linked with fresh goods quality services 3 days
Searching of mandatory resources or assets in
competitive market area
3 to 4 days
Sorting of Competitor commodity 2 days
Contraction in modern area 5 days
Selection of new buyer markets 3 days
Mix creative goods and services with group of
commercialism
6 to 7 days
Hire learned and skilled employees who are
specialised in hospitality section
2 days
Supply vision and mission to employees and
customers
1 day
Draft SMART objective and goals 1 day
Extension of company for making partnership
venture.
3 to 4 days

Extending incentives, commission, rewards to the
employees
Half and hour

As per the above drafted plan it is very clear that in order to execute the
reform action plans every employee of the organization should follow the
proposed strategy in a efficient and effective manner. It is necessary to
establish relationship between outcomes, activities and other resources in
order to achieve the final goals and objectives. These strategy target the
long term period propose learning opportunities (Gronum, 2012). Therefore, it
is significant to have a longer- approach.
TASK 4
4.1 Report on the impact of the proposed changes on the business and its personnel
Rehabilitation affect the overall firm in distinct manner as all the aspects are highly
related with each other. These changes occur due to the response to a dynamic environment
which transform frequently. Hence, these modification have a huge impact on organizational
effectiveness and value. The success of the restaurant is highly depended on the workers and the
employer as all the work is taken by them only. Therefore, amendments in business impose a
huge influence on personnel and company which is discussed below-
Human resources- Changes in policy or rules have a direct impact on the employees or
personnel of the company in distinct manner. For instance, training and development of
labours results into raising of their existing skills and helps in advancing their standard of
living. Generally, people resist changes as they have become comfortable in their area.
Hence there is a need to influence employees coordination, harmony and morale which leads
to reduction in time of work in the work place. It is observed that cheerful workforce furnish
more efforts than an sad ones (Eid, 2013).
Business- The changes have a direct influence on the business formation. Hence, it is the
responsibility of the mangers to examine relevant modification which is a part of the
reformation. In fact modification in existing themes of business supports entire association
in accomplishing final objectives and aims as soon as possible. Considering this, industry
can adopt advanced and stronger production activity.
Therefore, in the end changes are those factors which impact business
environment(internal and external) as well as those tasks which plays distinguished role in
business environment. This is the management's duty to provide certain directions to govern
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those activities and tasks. Empowering work force helps in discarding obstacles for change
management system and also helps in creating a conducive work environment among the
employee with better coordination. Rejuvenated leadership style, strengthening managerial skills
and enhancing quality are some of the aspects of accomplishing new measure (Ratten, 2014).
4.2 Plan how the changes will be managed in the business
Managing change is a difficult task for the managers of ZIZZI as they have to consider
number of activities before coming to any conclusion. There are several signals of reorganizing
like product or service extension, technological changes, alteration in the organizational structure
etc. Therefore, for managing variations it is necessary for the superior to make a constructive
policies and learn how to handle various business risk or threats that may arise anytime in the
business. Besides, administration of a restaurant choose one of the functional scheme of change
management which is discussed below-
Kotter Approach- According to this approach every manager of the business is entailed
to pursue eight steps for achieving set objectives in a particular time frame. It is considered
effective method of supervising and executing reformation actions in a implicit way. It includes
planning for short term goals which leads to the increase in the productivity level for example
induction process helps in hiring the eligible candidates in the work place and slowing upgrading
their work effectiveness by lending them support. Managers can also influence people and yield
more work from personnel by rewarding through voluntary and appraisal activities in the form of
promotions and cash. Effective communication in the organization supply clearer picture of
employees and the whole company (Teece, 2012).
Creating powerful association by incorporating various schemes to attend goals and
objectives. The manager is also responsible to systematize group of people to respond to positive
responses. The company's vision and mission also impart proper guidelines and procedure for
management of activities and other provisions to increase capacity of managers. Therefore it is
require to manage the changes in the business to achieve the set goals and objectives. The
changes are not constant in nature and hence to be flexible with the business environment proper
implementation of the kotter approach should be done to attain the proper implementation of the
planning process.
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4.3 Monitor improvements in the performance of the business over a given
timescale
The process of “performance improvement” is a collective tasks for increasing the
outcome of the company. It is very necessary that every small business must focus on continuous
evaluating the progress of business strategic plan. It is require to keep track on all the activities
for making action plans which need updates with the progresses made by the plan. Monitoring
the business performance basically highlights the invisible issues and problems which have a
direct influence on the success of the company. It helps in comparing the actual performances
with the standard performances and ultimately finding out the deviations in order to gain the
final set objectives. The main aim of the monitoring programmes is to increase the knowledge of
staff members and stimulate them to accomplish their targets by uniting with each other. It is
believed that development of performance results just from measuring it. Mangers should be
conscious of that all measures may have negative effects if they are implemented in inaccurate
manner (Hilmersson, 2014). Hence, proper analysis of environmental conditions should be
perform before acquiring measures. These measures create link between worker's behaviour and
the business's goals.
Various specialists recommend proposal on numerous subjects of performance
management. These proposals should be taken into consideration while managing the changes.
Performance improvement system make assure that the company's customers should stay with
the firm for longer period of time and maintain a good relationship with them. It is necessary to
improve the effectiveness of the workers in order to keep the pace with dynamic environment.
The advancement of the ZIZZI company must be registered and connected with the customer's
requirements. Individuals personal goals should be raised along with the company's final goals.
This will lead to the formation of collectivity among whole system (Lambert, 2013).
CONCLUSION
As per outcome of above assignment we can conclude that UK have sensed in boosting
economy is providing vast opportunities for small-business-enterprise in near future . These
small business firm plays conspicuous role in upliftment and development of economy with
implementing innovative ideas. This report mainly focuses on famous restaurant named as
“ZIZZI ” and its collective performances in marketplace. After completing this assignment we
have come to a conclusion that identifying and rectification of weakness and its influence on
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degrading success of company. They also manages impact and chances on business in changing
environment.
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REFERENCES
Books and Journals
Bridge, S. and O'Neill, K., 2012.Understanding enterprise: Entrepreneurship and small
business. Palgrave Macmillan.
Schaper, M. T and et.al 2014.Entrepreneurship and small business.
Storey, D. J ., 2016. Understanding the small business sector. Routledge.
Goffee, R. and Scase, R. , 2015. The Real World of the Small Business Owner (Routledge
Revivals). Routledge.
Burrows, R. ed., 2015. Deciphering the Enterprise Culture (Routledge Revivals):
Entrepreneurship, Petty Capitalism and the Restructuring of Britain. Routledge.
Blackburn, R. A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20(1). pp. 8-27.
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.
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.
Eid, R. and El-Gohary, H., 2013. The impact of E-marketing use on small business enterprises'
marketing success. The Service Industries Journal. 33(1). pp. 31-50.
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.
Teece, D. J., 2012. Dynamic capabilities: Routines versus entrepreneurial action. Journal of
management studies. 49(8). pp. 1395-1401.
Hilmersson, M., 2014. Small and medium-sized enterprise internationalisation strategy and
performance in times of market turbulence. International Small Business Journal. 32(4).
pp. 386-400.
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.
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