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Small Business Analysis and Growth Strategy

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Added on  2020/03/23

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This assignment requires a comprehensive analysis of a small business case study, focusing on its market orientation, competitive landscape, and proposed growth strategies. Students will evaluate the effectiveness of the business's marketing approach, identify potential challenges and opportunities, and develop recommendations for enhancing its market position and achieving sustainable growth. The analysis should draw upon relevant theoretical frameworks and practical examples to provide a well-informed and insightful perspective on the chosen business.

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SMALL BUSINESS
ENTERPRISES

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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Producing the profile of Birdrock Cafe.................................................................................1
1.2 Analyzing the performance of business with the help of comparative measure...................2
TASK 2............................................................................................................................................3
2.1 Actions to overcome the assessed weakness.........................................................................3
2.2 Analyzing the ways of maintaining and strengthening the existing performance of
Birdrock Café...............................................................................................................................4
2.3 Recommending the area where company could expand........................................................5
TASK 3............................................................................................................................................6
3.1 Assessing the existing business objectives and plans of Birdrock Café................................6
3.2 Revising the prepared business plans....................................................................................7
3.3 Preparing the action plan to implement the changes.............................................................8
TASK 4............................................................................................................................................9
4.1 Reporting on the impact of proposed changes on business and its personnel.......................9
4.2 Assessing how changes will be managed within enterprise..................................................9
4.3 Monitoring the improvements in firm’s performance.........................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Small business enterprise is basically the type of business entity which employs a very
small group of workers and it does not contain a very high volume of sales (Small business
enterprise, 2017). Such type of entity generally follows the concept of partnership or sole
proprietorship. In this regard, it has been assessed that nowadays government of many countries
are giving support to small business entities. This is because, government believes that such
corporations plays very important role in mitigating the problem of unemployment from nations
in an effective way.
For the present report, Birdrock Café is taken into consideration. Here, the study will give
detail description about the selected small business corporation. In addition to this, the report will
also showcase the ways through which existing performance of Café could be strengthened and
maintained in an effective manner. Finally, at the end of the report effect of change management
practices on firm’s operation will be analyzed.
TASK 1
1.1 Producing the profile of Birdrock Cafe
Birdrock Café is small size iconic restaurant which is located in the surf town Jan Juc,
Victoria. The company offers wide variety of food, coffee and wines (Birdrock Café, 2017).
Furthermore, the firm is located near beach and it is the reason why it is a very good place for
having fun with friends. The organization has specialization in Australian and Mexican cuisine.
The firm is recently owned by young local family. Moreover, the café can serve 100 people at a
time. In addition to this, the Birdrock Café offers great service and good food and thus it is
through this way only it maintains and enhances satisfaction level of its buyers. At present it has
the team of competent employees who are very well aware about their own roles and
responsibilities. Furthermore, the meals which firm offers are fresh and cheap. This thing attracts
large number of buyers towards company in an effective manner.
With an aim to get in-depth details about the Birdrock Café, assistance is being taken
from the SWOT analysis tool. This tool is effective because by using this company can get
information about its strengths, weaknesses, opportunities and threats (Storey, 2016). Hence, by
making significant changes in own operation as per gathered information, organization can get
benefit in the form of increased profit and sales.
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SWOT analysis of Birdrock Café
STRENGTH WEAKNESS
The firm is located near beach which
attracts large number of young buyers.
It offers fresh and high quality food.
The staffs are well trained and friendly.
It has very broad product range such as
food, coffee, wines and cocktails etc.
Single target market which is basically
young buyers.
The work process of enterprise is not
streamlined.
Faces problem of employee shortage
during peak season.
OPPORTUNITY THREATS
To target new base of customers.
To introduce completely new menu for
the buyers.
To introduce many more cuisines in the
restaurant.
From the competitors that offers similar
type of goods and services.
The change in the taste and preference
of buyers is being regarded as another
most significant threat for the company.
1.2 Analyzing the performance of business with the help of comparative measure
For an enterprise, it is very essential that it should analyse the performance of its
business. This is because, by complying with given type of activity manager can get information
that whether they are going to the right direction or not (Curran and Storey, 2016). Thus, on the
basis of given information corporation can make significant changes in its operation. This leads
to enterprise like Birdrock Café in the form of increased profit and sales in an effectual way. In
accordance with the given context, there are different comparative measures assessed with the
help of which manager of Birdrock Café can analyse the performance of its business. It consists
of profit and loss account along with balance sheet.
The first statement is of profit and loss account. By using this statement manager of cited
firm can get idea that whether it is working well from previous years or not. For example, if firm
has assessed that its current year profit is less than the previous year. Then in the given
circumstance manager of cited corporation can take various measures with the help of which the
profitability condition of Birdrock Café could be improved. However, in case if firm ignore its
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current profit figure from previous years. Then, in this condition number of negative effect will
be incurred by the cited company in an effective manner (Ellis, 2016).
Besides this, balance sheet is being regarded as another comparative measure of
performance for Birdrock Café. Here, balance sheet gives details about the assets and liabilities
of the company. Here, by using this tool manager can get full idea about its enterprise. For
example, how much loan it has taken and how many current and fixed assets it has etc. These all
information would assist manager in taking wise and effective decision. For instance, if manager
of Birdrock Café has identified that it has taken enough loans from the bank in the specific year.
Then in this situation firm will have to search some other options for generating money.
Furthermore, assessing the services of competitors is being regarded as another most effective
comparative measure of performance for Birdrock Café. Through this Birdrock can get idea that
whether its services are better than its competitors or not. Overall, it can be said that all these
assessed comparative measures are effective.
TASK 2
2.1 Actions to overcome the assessed weakness
It is very necessary for the corporation that it should take timely action towards the
problems which hamper its performance in future. This is due to the fact that, by complying with
give type of activity only firm can mark an effective presence in market which is highly
competitive in nature. In accordance with the given context, from the SWOT analysis number of
weakness of Birdrock Café is examined. At first, firm has weakness in its target market. Herein,
on the basis of analysis it is examined that Birdrock Café basically target young customers. Thus,
it is ignoring old and customers above the age of 40. In this regard, it is recommended to the
manager of Birdrock Café that it should target these two customer base also (Bell, 2016). This is
because, through this way firm can be able to perform better in market as compared to its
competitors. Furthermore, by targeting these two customers base cited firm could become one
stop shop for all type of buyers.
Besides this, Birdrock Café has a weakness in its work process. In this context, it is
examined that work process of cited corporation is not streamlined. This sometime creates
confusion among employees and due to this their work productivity hampered significantly. This
weakness can be improved by making changes in the Café layout. For example, dinners should
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be near to restaurant kitchen. This is because through this way timely and effective services will
be provided by the employees of Birdrock to its customers. This also helps in enhancing the
satisfaction level of the customers in an effective manner (Spence, 2016).
In addition to this, company has a weakness that it faces the problem during peak season
due to the shortages of sufficient number of employees. This issue can be resolved by making an
employment of part time workers during peak season. This approach will provide two way
benefits to the cited company. For example, it will enable enterprise with regard to deliver high
quality services to its client. Furthermore, it will also help in saving cost of enterprise which
increases when corporation will have to bear the burden of extra staff during off season. Thus, it
can be said that by working in accordance with these all given actions, manager of Birdrock Café
can make improvement in its profits (Smith, 2016).
2.2 Analyzing the ways of maintaining and strengthening the existing performance of Birdrock
Café
With an aim to mark an effective presence in today’s competitive environment, it is
required by manager that it should not only focus on its firm’s weakness. This is because, in
order to achieve competitive edge in market firm should have to focus upon its strength also.
Thus it is required by manager that it should make significant measures in terms of enhancing its
strengths in an effective manner. In this context, there are some ways assessed which manager of
Birdrock café could use with an aim to strengthen its existing performance in an effectual
manner (Dewald, Georgia and Carlos, 2017). At first it is recommended to the cited firm
manager that it should make an effort in terms of arranging regular training and development
programs for its workers. This helps in enhancing significant skills among employees. It also
enables them with respect to deliver their best services to the customers of Birdrock Cafe. Here,
training should be given to employees twice in a year. This approach enables Birdrock Cafe in
the task to deliver consistence services to the customers of corporation. Hence, due to this benefit
will be gain by firm in the form of increased profit and sales.
Besides this, another way for strengthening the performance of Birdrock Café could be
taking the feedback from the buyers regarding its services. With an aim to do the same manager
of cited firm could place suggestion box inside the restaurant. Furthermore, employees of café
should request the customers for filling their service feedback form. With this technique,
manager of Birdrock Cafe can get idea about the area in which they are not functioning well. In
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addition to this, through feedback firm could get information about some new changes which if it
introduced at that time benefits can be gained in the form of increased profits and sales
(Brustbauer, 2016). For example, through feedback form manager of café has identified that its
customers are demanding for some new cuisine in restaurant. Thus, by working as per the given
feedback Birdrock Café can enhance satisfaction level of its buyers. It is by complying with
given type activity only cited firm can attain success in market in an effectual manner. These are
the two basic techniques which would assist in strengthening and maintaining the performance of
enterprise.
2.3 Recommending the area where company could expand
With an aim to get an idea about the area where Birdrock Café could expand assistance is
being taken from Ansoff Matrix. Ansoff matrix is basically the tactical planning tool which
suggests number of technique for attaining future growth to companies (The Ansoff Matrix,
2017). It has four basic tactics such as market penetration, product development, market
development and diversification etc. These all four techniques have their own strengths and
weaknesses.
As per the Ansoff matrix, it is recommended to the manager of Birdrock that it should
use market development technique. In this context, firm should expand its operation in new
market. For the expansion purpose, firm can target some UK and Asia market. Furthermore,
before targeting these markets it is required by manager that it should gathered full information
about them. For example, type of customers they would meet in respective market, buyer’s tastes
and preference in terms of food and drinks. Here, by adopting market development technique
manager of Birdrock Café can expand its brand image (Klapper, Mahamadou and Arto, 2016).
Furthermore, this thing will also enable firm in terms of building its unique and effective image
in market in an effectual manner.
Besides this, Birdrock Café can also adopt market penetration method. In this regard,
firm can reduce prices of its services as compared to its competitors. Through this way, Birdrock
Café can attract large number of buyers towards enterprise. The effect of the same will be seen
on the profitability condition of corporation in an effective way. However, this technique tends to
cause direct effect on the brand image of enterprise. Herein, it has been seen that customers has
the tendency to associate low price product with poor quality. Thus, if cited firm would adopt
this approach then there are possibility that brand image of it would hinder in a negative way.
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But, such type of chances is less if proper marketing will be done about the firm services
(Barber, Stan and Mike, 2016).
TASK 3
3.1 Assessing the existing business objectives and plans of Birdrock Café
The business objectives as well as future plans of cited company is analyzed. In this
context, it can be said that for any company it is very essential that it should define its business
objectives as well as future plans appropriately. This is because ineffectiveness definition of the
same will lead to affect the direction of firm. Furthermore, the given thing will also have direct
impact on the motivation of employees. Herein, it has been seen that workers who are working
within company feels highly motivated when they are fully aware about their roles and
responsibilities (Sawang, Rachel and Damian, 2016). Thus, it is very important for the enterprise
that it should prepare its business plan appropriately and same should be communicated to the
workers also. However, if firm will not do the same at that impact of the same will be seen on
sales and profits of company.
In this regard, following are the objectives or the future plans of Birdrock Cafe.
To attract large number of buyers towards company by making use of different
advertising technique.
To increase the profit of company.
To enhance satisfaction level of buyers by delivering them high quality services.
These above three are the major objectives of the Birdrock Café. In the first objective,
manager of cited company seems more interested in raising its sales. Thus, it is due to the
presence of this aspect the company is making effort in terms of using different promotional
methods. In addition to this, Birdrock has another objective of making improvement in
company’s profit. This objective of the company will be achieved if first and third objectives are
met. However, there is one problem in this objective (Ayandibu and Jennifer, 2017). Here,
manager of Birdrock Café has just mentioned that it wants to improve the profit of company but
here specific number is not mentioned. In the similar way, café has an aim to raise the
satisfaction level of its buyers by delivering them high quality services. Here, also some
specification should be given regarding how quality of firm’s services could be enhanced so that
satisfaction level of company buyers will be increased. Thus, it can be said that the existing
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objectives of Birdrock Café lacks specification. If significant measures will be taken towards
them at that time it will became very easier for the company with regard to attain its aim and
objectives in an effective manner (Kleinbard, 2017).
3.2 Revising the prepared business plans
The business plan of Birdrock Café is revised. In order to do the same some changes have
been introduced in the existing plan of cited company. As mentioned above the existing
objectives of company lack specification. Thus, with an aim to make improvement in the existing
plan of Birdrock Café assistance is being taken SMART criteria. Objectives are basically the
statement which gives details about the actions which firm will take in future. SMART
objectives will be acronym as S-Specific, M-Measurable, A-Attainable, R-Realistic and T-Time
bound etc. In today’s competitive scenario SMART objectives have importance (SMART goals,
2017). This is because it helps in giving clear direction to the employees of company.
Furthermore, with the help of these types of objectives manager of enterprise can create its
competitive image in market. Thus, the given thing will tend to provide benefit to corporation in
the form of increased profit and sales in an effectual way.
In accordance with the SMART criteria, objectives of Birdrock Café are revised. These
are all given in below:
To attract large number of buyers towards company by making use of modern advertising
techniques.
To raise the profit of Birdrock Café by 20% till the year 2019.
To improve the skills of Birdrock Café employees through training and development
programs.
These above three objectives are more effective than the old one. This is because, these
objectives are measurable. In addition to this they clearly states the ways through which firm can
attain its target (Lasisi and Udagedara, 2017). For example, the first objective of Birdrock Café
clearly depict that firm can attract large number of buyers towards enterprise if it will make use
of modern advertising techniques such as Facebook and Twitter etc. In the similar way, the
second objective of cited company is very specific. Here, the respective aim gives clear idea to
the employees of Café that it want to make improvement in firm’s profit till the year 2019. In the
similar way, for delivering high quality services to the customers Café has directed its efforts in
terms of improving the skills of employees through training and developmental programs in an
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effective manner (Reese, 2016). Thus, it can be said that by working as per these revised
objective Birdrock Café can develop its distinctive image in market in an effectual manner.
3.3 Preparing the action plan to implement the changes
With an aim to implement significant changes in firm as per above mentioned objectives
action plan is being prepared. For example, manager of Birdrock Café has an aim to use different
modern advertising technique for making the promotion of its services. In order to attain the
respective objectives, manager of cited firm will have to make change in its existing marketing
plan. For the purpose to do the same following action could be taken:
Arranging meeting of marketing team: At first manager of Birdrock Café should have to
arrange meeting with its marketing team (Kizer, 2016). This is essential because through
this way only manager of cited firm can communicate its expectations to the employees.
Communicate them about company plan: In this meeting manager should communicate
about the plans in relation to advertising the technique which it want to use. Here, in this
phase suggestions should be taken from all the employees. Searching the appropriate modern advertising techniques: At this stage manager of cited
corporation will have to search different modern advertising techniques (Vahlne and
Anna, 2017). In the given phase pros and cons of different modern advertising techniques
should be gathered.
Finally making an implementation of searched technique: At the end, the technique
which is selected for the advertisement purpose will be implemented in an effective way.
Besides this, with an aim to attain the third objective that is of improving the skills of
Birdrock Café employees through training and development programs, significant changes
should be made in firm existing training and development approach. Thus with an aim to bring
this change following actions could be taken:
Assessing the existing skills of workers
Preparing the list of employees who are not performing well in the company.
To make an appointment of trainer
Preparing the training module in such manner which basically focuses upon quality of
restaurant services (Laukkanen, Sasu, Helen and Saku, 2016).
Fixing some specific date for training and finally giving training to the firm’s workers.
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Thus, with the help of all these given actions the second objectives of Birdrock Café can be
met.
TASK 4
4.1 Reporting on the impact of proposed changes on business and its personnel
The changes which are mentioned above will tend to have significant effect on the
business as well as on the employees who are working over there. The first change is related with
the marketing plan in which firm is planning to use modern mean of promotion for informing its
customers about the services. This change will tend to have direct effect on the profit of Birdrock
Café. This is because the main aim of marketing tools is to make increment in the firm’s profit.
This is done by spreading the information about the company’s product among large number of
buyers in an effective manner (Antoncic, Jasna and Heli, 2016). In addition to this, with the help
of given tool manager of Birdrock Café can target its major customers which is of young buyers.
This technique will also assist in targeting new customer base of the enterprise. Thus, it is due to
the presence of given aspect only profit of cited company will be impacted in positive way.
Besides this, the second change which is related with the training and development
programs will cause direct effect on the employees. Herein, this particular method helps in
improving the significant skills among café workers. As a result of it employees will be able to
deliver their best services to the enterprise in an effectual way (Cole and Tatyana, 2016).
However, the effect of the same will be being seen on the sales and profitability related condition
of corporation.
4.2 Assessing how changes will be managed within enterprise
Change is being regarded as one of the most important part of today’s competitive
environment. This is because through change only company can build its unique and effective
image in market in an effective manner. Furthermore, the change which firm brought gives itself
a confidence to fight with the competitors (Giaoutzi, Peter and David, 2016). As a result of it the
firm always tries its best for achieving its goals and objectives. The work of corporation does not
end with bringing changes within firm. This is because, bringing change is easier but
maintenance of the same is quite difficult. Thus, there are some ways suggested to the manager
of Birdrock Café for managing the changes within enterprise. At first it is suggested to the
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manager that it should continually take feedback from the employees regarding the training
which they are taking (Neubauer and Alden, 2016). Here, through this way manager can get idea
from its employees that whether they like the training programs or not. Furthermore, this thing
will also provide information that whether some improvements are happening in employee’s
customer relation skills or not.
On the other hand, in relation to the marketing plan it is required by the manager of
Birdrock Café that it should take regular meeting of its marketing team. Through this manager
can get idea about the problems which are being faced by them at the time of making
implementation of the new marketing plan (Atkinson and David, 2016). Hence, by taking
significant action towards the determined problem benefit can be gain by enterprise in the form
of increased profit and sales in an effectual way.
4.3 Monitoring the improvements in firm’s performance
For the corporation it is also necessary that it should monitor improvements in its
performance. This help in giving idea that whether it is going on to the right direction in terms of
firm’s objective or not (Glover and Ken, 2016). In accordance with the given context, there are
some techniques assessed with the help of which performance of Birdrock Café could be
monitored. Here, on the technique could be taking feedback from buyers. Here, by using
respective approach effectiveness of the training and development programs which is being
arranged by cited firm will be measured. For example, if customers of Birdrock give positive
feedback about the firm’s services at that time manager can draw a conclusion that the training
programs which it has arranged are effective (Schaper, 2016).
In the similar way, the performance of firm could be monitor through sales figure. For
instance, if firm assess that its sales have improved significantly after an implementation of new
marketing plan. Then in this situation also effectiveness of the firm marketing technique will be
measured. This work of monitoring should need to be carried out by Birdrock Café manager on
every 6 month basis. Thus, on the basis of identified result only it should make significant
changes in its operation (Mazzarol and Delwyn, 2016).
CONCLUSION
Articulating all the facts and figure from the above report, it can be concluded that
running a small business enterprise is not an easy task. This is because such business demands
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lots of planning for smooth running operation. In addition to this, it is also necessary for the
manager that it should update itself with the things which are happening in its external
environment. This is due to the fact that if it will not happened at that time it will became very
difficult for the corporation with regard to mark its effectual presence in business environment in
an effective manner.
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REFERENCES
Books and Journals
B. Antoncic, A. A. Jasn and M. A. Heli, "Marketing self-efficacy and firm creation." Journal of
Small Business and Enterprise Development 23, no. 1, 2016, p. 90-104.
J. Atkinson and S. J. David, Employment, the small firm and the labour market. Routledge,
2016.
J. Barber, M. Stan and P. Mike, Barriers to growth in small firms. Routledge, 2016.
R. Bell, "Fostering Globally Minded Entrepreneurs: Examining the Challenges of Cross-
Cultural Enterprise through International Video Case Studies.", 2016.
J. Brustbauer, "Enterprise risk management in SMEs: Towards a structural model." International
Small Business Journal34, no. 1, 2016, p. 70-85.
R. Cole and S. Tatyana, "Who needs credit and who gets credit? Evidence from the surveys of
small business finances." Journal of Financial Stability 24, 2016, p. 40-60.
J. Curran and S. J. David, Small firms in urban and rural locations. Routledge, 2016.
W. J. Dewald, K. Georgia and L. Carlos. "Disadvantaged Business Enterprise Goals in
Government Procurement Contracting." Evolution 5, 2017, p. 17.
J. Ellis, "The continued appointment of corporate directors: an examination of the effect of s. 87
of the Small Business, Enterprise and Employment Act 2015." The Company Lawyer 37 , 2016.
M. Giaoutzi, N. Peter, and J. S. David, eds. Small and medium size enterprises and regional
development. Routledge, 2016.
D. Glover and K. Ken, Small farmers, big business: contract farming and rural development.
Springer, 2016.
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J. L. Kizer, "Strategies for Employee Engagement in a Small Business Enterprise." PhD diss.,
Walden University, 2016.
R. Klapper, B. D. Mahamadou and H. L. Arto, "Small business support and enterprise
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F. Neubauer and L. G. Alden, The family business: Its governance for sustainability. Springer,
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C. C. Reese, "A New Sentencing Blueprint: The Third Circuit Allows Disadvantaged Business
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S. Sawang, P. Rachel and H. Damian, "How Small Business Advisory Program Delivery
Methods (Collective Learning, Tailored, and PracticeBased Approaches) Affect Learning and
Innovation." Journal of Small Business Management, 54, no. 1, 2016, p. 244-261.
M. Schaper, Making ecopreneurs: developing sustainable entrepreneurship. CRC Press, 2016.
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R. Smith,"Of bad-seed, black-sheep and prodigal-sons: Profiling crime and enterprise in a small-
business-community." International Journal of Entrepreneurial Behavior & Research, 22, no. 1,
2016, p. 39-62.
L. J. Spence, "Small business social responsibility: Expanding core CSR theory." Business &
Society, 55, no. 1, 2016, p. 23-55.
D. J. Storey, Understanding the small business sector. Routledge, 2016.
J. E. Vahlne and J. Anna, "Ambidexterity as a dynamic capability in the globalization of the
multinational business enterprise (MBE): Case studies of AB Volvo and IKEA." International
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Online articles
Birdrock Café, [Online], 2017, Available through:
https://www.zomato.com/jan-juc-vic/birdrock-cafe-jan-juc, [Accessed on 6th October 2017].
Small business enterprise, [Online], 2017, Available through:
https://www.dotsbe.pa.gov/SBEWeb/sbe/viewHome.do, [Accessed on 6th October 2017].
SMART goals, [Online], 2017, Available through:
http://www.yourcoach.be/en/coaching-tools/smart-goal-setting.php, [Accessed on 6th October
2017].
The Ansoff Matrix, [Online], 2017, Available through:
https://www.mindtools.com/pages/article/newTMC_90.htm, [Accessed on 6th October 2017].
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