Small Business Success Factors

This assignment delves into the critical factors that contribute to the success of small businesses (SMEs). It examines various aspects, including financial performance indicators like balance sheets, the impact of market turbulence on SME internationalization strategies, and the role of entrepreneurial orientation in driving growth and profitability. The analysis draws upon a selection of academic research papers and real-world case studies of SMEs.

Small Business Enterprise

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK1.............................................................................................................................................1
1.1 Profile of the company and their weakness and strength......................................................1
1.2 Evaluating business performance with the use of comparative measure .............................2
TASK2.............................................................................................................................................5
2.1 Recommendation to overcome with company weakness......................................................5
2.2 Different ways in which existing performance of Kristy could be maintained....................6
2.3 New area where company could be expanded .....................................................................7
TASK3.............................................................................................................................................8
3.1 Giving assessment on existing business plans and objectives..............................................8
3.2 Reviewing business plans as well as suggesting ideas where any modification can be made
.....................................................................................................................................................9
3.3 Preparing an action plan to formulate the changes ............................................................10
TASK4...........................................................................................................................................11
4.1 Effect of proposed changes on personal and business........................................................11
4.2 Managing proposed variation in organisation.....................................................................12
4.3 Measurement for enhancing the business performance over last two years ......................13
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................15
.......................................................................................................................................................16

INTRODUCTION
Small business enterprise is identified as a specific entity who has minimum capital and
employees. They are supportive in giving strength to unstructured areas in an effective manner.
They have the help of well established and innovative entrepreneur but even they do not have
sufficient money to build their organisation on international level. They also have benefits of
handling all activities and functions of an enterprise in an essential manner. As small and micro
scale are adding few value for the achievement of improvement of society and economy.
According to the provision act 2006, it is define as absolute turnover of micro business that
should not be overreaching by 6.5 million pound (Acs and et.al., 2013). Due to this, there are
number of workers by 50 which is not more than, so it is beneficial for the company to attain
desire objectives in certain time. Therefore, Small scale offer better platform or possibility to
community in order to enhancing and inspiring their living standard.
This report is discussion regarding Dragon Dan Serious that has been complete. It has
been determined by BBC and giving better opportunity for young person for making more
investment. It is also define the Kristy's, it is a Worthenshaw's Former and providing healthy and
ready-made foods items for Children and Adults. This assignment determined the business
profile and its strength & weakness by evaluating the performance of them. It will also given
recommendation in regrades to get over with its weakness. Business performance also described
for the few two year which also determined in this project.
TASK1
1.1 Profile of the company and their weakness and strength
Background of the company: Worthanshaws Ltd is an ethical food product company in
United Kingdom, it is established by Kirsty in 27 July, 2009. Main motive and purpose of
launching this business is to give diary-free, and sugar- free frozen pudding are part of Ice-
Cream. Her is youngest businessperson who is gaining capital from the Dragon series (Barber
and et.al., 2016). She have unique and innovative ideas regarding pudding for screening when
Kirsty analysis its son Jacob which was sensitive towards the nuts and intolerant. As this
business was rebuilt in 2012 in which she desired to personalise the product brand in order to
link with those buyers who are troubling from this kind of disease.
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Owner Structure: CEO and manger of the business entity has may role & responsibility
Organisation is selling or producing their goods from various departments which are mainly
placed in United Kingdom. All healthy products are offering by company which is certified with
75% of growth and development rate in grocery store (Worthenshaws ltd, 2013). Now, entire
products are sold by super market which valued at 5 million pound (Approx.) in current day.
Business entity and its owner had won different awards or trophy in past year due to
better drink and food quality. Kirsty is emphasising on such action because in which she can give
healthy and good savoury meals to clients (Bernaert and et. al., 2014). Apart from this, they are
making different efforts and try to provide safety and health food in order to give better
satisfaction as well as earn higher profitability.
Along with this, there are certain weakness and strength of the company which support
them in making appropriate judgement for the business expansion. These are determined under
this-
Strength:
Selling or producing quality products with affordable range like healthy savoury
nutrition. They produce tasty and healthy conscious goods to their customers. They are present in
main supermarket which is big strength of them. All goods are designing and packaging like;
intolerance with crackpot.
Weakness:
Lack of diversity or differentiate products. All investment are complete by Dragon den
which help its business in modern-day. Their competitors are producing more foods variety such
as ice creams. Buyers interaction is less because of selling in national market. They having
minimum share in marketplace.
COMPANY PROFILE:
Name of business Worthanshaws Ltd
Telephone no. 649350114
Fax [phone]
E-Mail www.profileltd.co.nz
Number of workers Approx 35
Products and services Ice-cream and other goods
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1.2 Evaluating business performance with the use of comparative measure
Company is producing different foods products to their customers in order to fulfil basis
needs and requirement of the customers (Chow and et. al., 2011). They are capable to give
healthy and better quality products in order to achieve higher profitability effectively. Main
competitor of such business is Purbeck Ice-Cream which also provide same products in similar
market with variety of goods choice. So, performance of company that has been evaluate with its
challengers in various ways.
Quality audit: In this way, manger of the business entity has different responsibility in
identifying employees work that has been complete or not (Cowling and et. al., 2015). Kirsty is
providing various types of food products to their customers which is dynamic as well as keep to
balance betwixt nutrition and taste needs.
Financial report: It is very beneficial and valuable report for the enterprise because with the use
of this, they can easily evaluate their actual condition in competitive place. Financial report of
company and their challengers like Purbeck Ice cream are determined under this:
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Illustration 1: Financial Balance sheet
(Source: Worthenshaws Ltd, 2016)
It has been determined from the above mentioned balance sheet of company in achieving
growth and success on daily basis (De Silva and et. al., 2012). Debts of the Worthshaw’s are
maximising regularly but they having cash it can decrease risk for a specific time. Due to this, it
will assist them in growing their firms at various location.
Balance sheet of Purbeck Ice-Cream
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Illustration 2: Financial Balance sheet
(Source: Purbeck Ice Cream limited, 2016)
From the above report it can be comprehended that Purbeck Ice-cream business has
established their footmarks much before as compared to kirsty Ice cream in the competitive
marketplace (Purbeck ice cream limited, 2017). The variation in enterprise will be disable to
business entity in order to engaged with clients and identify buyers needs in an correct manner.
Non-financial evaluation of Human resource
Year ending 2015 Worthenshaw's Ltd Purbeck Ice-Cream
Turnover of staff 9% 11%
Absentee rates 4 % 6 %
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Percentage of job opportunities
which are offers company
16% 13%
Perception of customers regrading service and product quality
Year ending 2015 Worthenshaw's Ltd Purbeck Ice-Cream
Value of the product 91% of person are said yes
because they produce quality
products are remaining are not
satisfied because they are
confused.
It is deliver manager
performance
Yes, in 2012 increasing rate is
5% in a systematic manner
(Dickson and Weaver, 2011).
Yes, because in the business,
they are diversify their
offerings.
Comparison with its
challengers offering
They give more diversify
products so in which buyers
are ready to eat ice-cream and
meals.
They provides dairy goods and
wants to expand their business
in other area.
TASK2
2.1 Recommendation to overcome with company weakness
It is very important for the business entity in order to overcome with all weakness, so in
which they can expand their business activities and function at foreign level. Company selling
their products in supermarket where clients are paying more attention about it and should try to
buy these goods. It is very essential for the Kristy because they mainly emphasis on its weakness
to achieve their success and development as well as beat their challengers (Fassin and et,.al.,
2011). In this, they adopt innovative strategy and built better plan to overcome this helplessness.
Further, they also concentrating on to expand its business function in market segments like;
nutritious meals and healthy, and ready to built meals for families. Along with this, above given
are recommendation that has been given to business owner in regrades to reduce with weakness.
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Restricted market growth and share: It is very important for the owner to emphasis on
different segments which is beneficial to expand their business at international level. They also
capture large number of the market share in an effective or efficient manner. Business products
are only producing through main supermarket like ASDA, WAITROSE and TESCO etc. but
they also sell their goods in small stores which can maximise local area and value chain of the
company.
Challengers are selling variety and more products: Competitors of the Worthenshaw's
Ltd are selling tasty and innovative food as per the buyers needs and their taste (Forsman, 2011).
Apart from this, they also offer different food verities in which firm barrier that can retain their
clients for a long duration. So, it is very essential for Kristy to add several value in Ice-Cream
and other products to routine basis so that clients retain satisfy for a long duration.
Consumer interaction is low: Business is marketing their goods with the help of online
and internet services. In current area, it is very important and valuable in order to attract large
number of the customers towards products and services. Due to this, company can achieve higher
profitability and increase their market share efficiently.
2.2 Different ways in which existing performance of Kristy could be maintained
In current market, it is very essential for enterprise inn order to keep their position in
marketplace by enhancing their present execution. It is help them in achieving long term and
desirer gaols in a particular time. As they required to emphasis on its strength which is strong
while functioning on these. They also focus on their core and significant value of entity in
regards to achieve sustainable growth and development as well as beat their competitors.
Worthenshaw's Ltd is producing ready made meals and Ice-Cream to their buyers who are self-
conscious which are gettable at main superstore. For achievement and improvement of them,
business entity emphasis on its strength so in which they can make their goodwill and brand
image in creative and innovative manner.
Mentioned organisation is capable to giving online and home delivery services to their
target or potentials customers in a systematic manner (Gunasekaran and et. al., 2011). Due to
this, they can make their better position in competitive place and sort out all problems which are
present in the company. These issue faced by the employees and employers which is mainly
related with food quality. But is significant for the firm in order to reach those buyers who are do
not understand on online service and who are mainly awake regarding their health. They also
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have main responsibility and duty regarding their challengers strategies which are selected by
business. Due to this, they can targets its other buyers who have interest to buy company goods.
There are certain way, where Kristy make their position are as follows:
Understand the customer royalty stage: Business organisation required to determine
the buyers royalty towards products and services which are producing by them. In order to keep
better and strong position in customers minds as well as market place, in which they required to
take daily basis comment from clients (Hansen and Hamilton, 2011). So in this, they came to
understand regarding preferences and taste which are modifying from day by day. It is very
essential and important way in order to achieve long term goals and objectives in limited time
period.
Make a strong group: Team building support to business entity in order to run business
activities and function in a smooth manner. It should be made as per the employees capability
and skill so that they can maximise their ability and provide their best efforts in order to achieve
fruitful outcomes to firm. With the help of this business entity easily attract large number of
customers towards business products and services. It is also important in reducing conflict and
misunderstanding which is arise in between manages and employees.
Maintain superiority of services and goods: Owner of the company that required to
maintain the service and product quality through they easily attract large number of the
customers in an essential manner. With the help of this company easily achieve long term and
desire goals or objectives in limited time period. It is also essential in maintian customers
relation in long duration.
2.3 New area where company could be expanded
The business of Worthenshaw's Ltd have to attained long term success and growths in
their functions as well as activities. Due to this, they are develop better plans in regards to create
new plans by which organisation can gain comparative benefits in an effective or efficient
manner (Ways You Can Expand Your Business In to New Areas, 2015). It is define as a manager
duty to select effective strategy and innovative plan which are valuable for company to expand
their business operations in an easy manner.
Expansion in national level: Company running their functions and operations to
manufactured Ice-Cream products. In regards to enlarge operations of business at domestic
levels, owner of the company can organise development and research process to evaluate wants
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and needs of buyers (Hilmersson, 2014). Therefore, they can create plan to expand business
function and organisation at large level. It is very beneficial and essential for small scale to gain
their target buyers in domestic level who improve their profitability and growth ratio. So in this
they also attain better position at competitive places which output in business activities and
function expansion.
Expand in Foreign market: Actual position of company is effective to expand business
in more than 40 country so in which they make effective plans to expand business operation as
well as attain higher growth and success at the other market, so in this they can implement plans
in regards to follow their functions internationally. The workers should have unique
communication ability so they easily know demands and requirement of their buyers.
Recommendation: All those area are important for the company to expand their business
operations and activities in both areas. If an organisation are making better plans to gain long
term growth and success in an essential manner (Islam and et. al., 2011). In this they can also
achieve large number of the market share in an effective or efficient manner. Business select
better strategy and plans which is beneficial for industry to achieve development in their all
operations of business.
TASK3
3.1 Giving assessment on existing business plans and objectives
In present area, Business entity are more emphasising on plans and strategies which are
selected by them to target its objectives and aims in an essential manner. Objectives of the
Worthenshaw's Ltd is reasoned as divers parts that are fix by top level management. For the
achievement of objectives, employer of the company can try to built strategies and plans so in
this they can easily attain targets. Main aim of business owner is to serve tasty and healthy food
products to customers without any harm or damage to its health. There are certain objectives
which are determined under this-
SMART Objectives:
Specific: In this business manager mainly focuses on regions which is specific in nature. Main
motive of the business is to achieve higher profit or revenue with the fulfilment of buyers
yearning and needs.
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Measurable: Each and every targets of the company is measurable in nature. In which expand
their business on international and national level. It also giving healthy environment and good
atmosphere to workers, so in which they work effectively as well as maintain long term relation
with them (Jasra and et. al., 2012).
Achievable: All objectives and targets are achievable because company deals in different variety
of products and services. They mainly deals in Ice-creams and other effective products. In this
they Follow by government regulations and rules so that buyers will trust on giving legal facility
to them.
Realistic: All targets and goals are realistic in nature. In order to give healthier and quality food
products, in this those person are do not having cook time. To determine the variation which is
made by legal authority and formulate the innovative ideas accordingly.
Time related: Time is essential and important part of the company to do their all activities and
functions in an effective manner. Also protecting regarding giving safe and secure working
atmosphere to workers at workplace.
In regrades to conduct accurate training and development programmes for workers to
built healthier and quality products for customers. Moreover, there are also certain objectives
and goals which required to be emphasis by business entity as well as target the person in order
to serve better food quality. Owner of the Worthenshaw's Ltd is dedicated towards giving the
better and high food quality in regards to get better output in the comment from buyers (Philip,
2011). Kirsty require to do main variation, if all modification in the regulation and rules are
made by legal authority. Moreover, there is also need of variation in different methods in regards
produce delicious and healthy food products to kinds and their families.
3.2 Reviewing business plans as well as suggesting ideas where any modification can be made
Business plan is very essential part of the company because it provides innovative idea to
them regarding their objectives. It is also define as how they enhance their performance in an
effective manner. In the enterprise, effectiveness is not present in the plan. Due to this, business
entity lead into non-achievement which is become hard for them in order to sustain in
competitive marketplace for a long duration. There are different phase where company needed to
apply them while constructing business plans as well as review another aspects which are as
follows: Kirsty is needed to inform their objectives and goals from day by day. While modifying
this, that should be coordinated with entire needed variation which is important for them. Like;
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Objectives is by set by the business organisation in order to capture large number of the market
share which is 5% in year 2020. In the organisation, evaluation is highly required in order to
decease loopholes and issues which are present in the market plan (Soininen and et. al., 2012).
Business entity takes help to adopt different techniques and strategies in regrades to decrees the
problems which are present in the company at the plan formulation. The resources and funds are
important part of the company success which is utilising by owner of the business. All these are
reallotted by them in a proper way so that needed variation can be complete accurately. Apart
from this, all changes are required according to the resources allocation. In this way,
administration should be protecting regarding variation that are successful in the all phase. It
should be managed as well as formulated in a proper & accurate manner. It is also support to
determine the effectiveness which are lay on each and every workers.
3.3 Preparing an action plan to formulate the changes
It is a main and crucial part of the company in order to built an action plan, with the help
of these all employees are easily complete their work effectively. It will support business owner
in assigning the all task in specific duration (Williams and Schaefer, 2013). Action plan of
Worthenshaw's Ltd that will be determined in different roots so that variations can formulated in
proper manner. All these are identify in a systematic way are as follows:
Diverse activities identification: All recommend variation that has been provided that
should be classified as well as covered different various location. Due to this, they can target
those person who do not cook their variety goods in time to time.
Identify disadvantages and advantages of each function: With the help of this,
Worthenshaw's Ltd capture large number of the market share systematically. It is also support
the in achievement of business development and growth. But sometime, it will maximise the
employees work lode and company cost.
Set targets and objectives that has to be conducted on the basis of priority: Task list that
should be construct on the basis of priority. It is also ensure regarding the task and project that
has been done in specific time duration.
Follow Up: It is also very important and last phase, in this company use appropriate
techniques in regards to evaluate the variance as well as improve existing performance of them
in achieving growth or development (Zortea-Johnston and et. al., 2012).
Action plan of Worthenshaw's Ltd in regards to attaining their objectives and goals
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Objectives Advantages Tasks Success and
development
criteria
Time frame Resources
In order to
maximise base
of buyers by
15% in year
2020.
Lead in
aggressive
market. Health
of buyers that
will rest
healthy.
In regrades to
determine the
buyers
satisfaction or
fulfilment
level by
organising
different
programs.
By taking
feedbacks and
comments
from buyers in
regular basis.
Main success
criteria is
customers
buying
behaviour.
2 Month Taking
support of
superior and
formulating
innovative
plans
accordingly.
Training and
development
programs to
workers
It will enhance
the
performance
and
confidence
level of
employees.
On daily basis
training and
development
program will
be leaded
which
maximise the
skills and
ability of
them.
Improved and
developed
performance,
training
objective that
will be
cleared.
1Month Venue and
funds etc.
TASK4
4.1 Effect of proposed changes on personal and business
There are higher demands and needs in the economy regarding organic or healthier food
thus company had to select all variation in their functions & operations. If in the company, entire
modifications formulated in a proper manner to attain growth and success of company. Business
entity had to create plans to in an effective manner that can execute business operations and
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activities as per the proposed changes (Williams and Schaefer, 2013)). All modification can be
formulated from various locations in an easy manner which having direct effect on
organisational productivity and growth.
Impact on enterprise: In the business entity, all changes are made impact the business
profitability and growth factors that can be highly enhanced. Manger can conduct market
research to understand regarding customers wants and needs . It is very essential and beneficial
for organisation to retain buyers loyalty who will purchase their goods. Proposed changes also
impacts on entire department and areas of business entity such as work lode, job role, morale
and physical aspects like manufacture process, spaces of offices and many other. Changes also
impacted on finance and other in a negative and positive way.
Impact on personnel:: All modifications are also effect on personal, so in this they can execute
their functioning with the assist of advanced technology. It can be attained if workers are
provided training and development in regards to slay their working with them (Zortea-Johnston
and et. al., 2012). Due to this, profitability and productivity can be increased in an effective or
efficient manner. There are different ways for the alteration like job role of the workers, moral,
use of innovative technologies and many others.
4.2 Managing proposed variation in organisation
Implementation of change management can be done with the help of following some
steps which are explained under: Change Urgency: It is the first and foremost approach or a step which is taken for the
analysing the changes which is highly required by the change management so that
enhancement can be done in the operations of business. Cocofina do have less finance in
order to carry out operations. Guidance Coalition: In order to achieve the goals and objectives of the firm it is highly
required to establish effective communication skills and coordination so that all the
targets can be met in effective manner. Vision: Vision is something which is made before building up the organisation and it is
the main target on which the employees work. Empower others to act the vision: Plan should be made by managers so that various roles
and responsibilities can be allocated to the employees according to the respective set of
skills.
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 Create Quick Wins: All the long term goals that are formulated by the business are
interrelated to the mission and vision of the company for a long period of time. Build on change: Within desired time frame all the modifications should be done so that
desired aims and objectives can be achieved in efficient manner (Soininen and et. al.,
2012).
 Institutionalise the Change: Modification can be done in each business process so that
business can easily achieve growth in their operations.
Recommendation: All changes and modification in the business entity highly effects on its
productivity and profitability in a direct way. With the help of above all plan business manger
easily managed proposed changes in an effective manner. All chages are completed on the basis
of desired objectives and goals.
4.3 Measurement for enhancing the business performance over last two years
In this business performance that can be determined by analysing the P&L account of
Worthenshaw's Ltd which are determined under this-
Goals Time duration Reviews
One stop information 2018 Worthenshaw's Ltd had
attained long term success and
growth in their business
activity. Due to this, in the
organisation Organic food
highly demanded at place of
market. This is beneficial and
essential factor for the
business entity in regards to
gain entire target buyers who
use their services and products.
To gain and maximise
business activities or operation
organisation.
2018 In this plans that should be
created to evaluate all
employees performance as
well as achieve long term and
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desire objectives in specific
time duration that are assigned
to them.
Facilities 2018 In this owner of the company
can determine entire issues and
problems which are available
in the organisation and
emphases by workers. By
effective controlling so that
better solutions or outputs can
be unconcealed to sort out all
problems (Philip, 2011).
Adopt approach by many
number of customer
2018 Development and
training also very essential part
of the company because in this
they can give this sections to
their employees. Related to
this, they can attend this
section and increase their basis
knowledge on particular
meeter.
Profit and loss account of Worthenshaw's Ltd
For the year ended 31st March 2016
Particular 2016 $ 2017 $
Net profit 60 90
Cost of revenues 30 20
Gross profit 30 70
Operating expenses 10 12
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Income from operations 15 25
Other interest expenses 40 55
Income before provision taxes 70 95
Provision from income taxes 30 20
Net income 55 95
CONCLUSION
As per the above mentioned report, it can be concluded that small business is a
organisation which provides big opportunities to person. They are play essential role in giving
big employment to different number of person in which their living stranded also maximised. In
this government make various plans which help entire business organisation who are functioning
at small-business so in which they can expand their business functions and operations in an easy
manner. Plans of the business are very valuable tools and techniques for employer in regards to
gain desire and long term business objectives & goals in specific time period.
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