Small Business Success Factors

This assignment explores the key factors that contribute to the success of small businesses. It delves into various aspects, including strategic planning, financial management, marketing strategies, and operational efficiency, drawing upon both academic literature and real-world examples from successful SMEs. The analysis considers different perspectives on entrepreneurial behavior, organizational structure, and external influences that shape small business outcomes.

Small Business Enterprise

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Produce a profile of selected small business and identifying its strength and weaknesses. .3
1.2 An analysis of the business using comparative measures of performance...........................4
TASK 2............................................................................................................................................5
2.1 Appropriate actions to overcome the identified weaknesses in the business........................5
2.2 Ways in which existing performance could be maintained and strengthened in business....6
2.3 Recommendation for the new areas in which business could be expanded..........................7
TASK 3............................................................................................................................................7
3.1 Produce an assessment for existing business plan and objectives........................................7
3.2 Revise business plan to incorporate business changes..........................................................8
3.3 Prepare an action plan to implement the changes.................................................................9
TASK 4..........................................................................................................................................10
4.1 Report on the impact of the proposed changes on the business and its personnel..............10
4.2 Plan how the changes will be managed in the business......................................................11
4.3 Monitor improvements in the performance of the business on given timescale.................11
CONCLUSION..............................................................................................................................13

INTRODUCTION
Small size business may be defined as a business in which there were less than 250
employees. These are privately owned firm, partnership business and sole proprietorships. This
business earns less revenue. All the small business enterprises are important because it
effectively impacts on economy of the country. So in order to uplift the economy of the country
it is essential to expand the small business. This report is based on the Cambridge satchel
company. It is a British company that produces the satchel and other kinds of the leather goods.
It is made to investigate the performance of company business. In second part of report, an
attempt is made to propose changes in improving management of the company. In the third part
of report, a plan is made to make changes in the business according to their objectives. In the last
part of report, an attempt is made to understand the impact of the change management.
TASK 1
1.1 Produce a profile of selected small business and identifying its strength and weaknesses
Cambridge Satchel Company is basically a British company and it is founded in 2008. It
headquarters is situated at Babranham UK. It is founded by Julie Deane and her Freda Thomas.
They produce classy fancy bags of the leather. Further, the firm focus on those customers which
is going to the college, office and schools. The main mission of the organization is to provide
good quality and affordable leather products to the consumer. The company’s vision is “ to be
the most preferred company selling the leather products in the Uk” (Cassar, G., Ittner, C. D. and
Cavalluzzo, 2015). The company has started their journey of business by $600 (Carter and Jones-
Evans, 2006). But now the organization in 120 countries has sold their accessories. They have
opened their first physical store in 2013 but at 2015 they have 4 physical stores. Until 2015, they
only emphasized on women but now they have changed their target market from women to men.
Today this company is successful in the competitive world because of their various
commitments. However, the company is having some strength and weakness and these are as
follows:
Strength:
1. The first strength of the company is commitment which they make in their work.
2. Company product is unique.
3. Strength of the organization is their products which are hand stitched.

4. They have highly competent employees and online markets to sell their product.
5. Their pricing strategy is very low.
6. They have high quality products and deliver their products to the customers at right time.
Weaknesses:
 The first weakness of the company is that they have reached less number of the
customers.
 They have lack of market survey (Chell, 2007).
 The organization has less number of employees. They have only 84 workers in their
company.
 If they make any changes in their product then they can lose their market share.
 Company is having a rise in the fake founders.
1.2 An analysis of the business using comparative measures of performance
Cambridge Satchel company is British company which make the leather handmade bags
for their customers. They have provided a very good quality bags to their customers at
reasonable price. They have made those bags which matches all the outfits. There are lot of
standards which measures the performance of the company.
1. Quality: The main attraction of the customers towards the company is the quality which
they provide to their customers. Their bag quality is good in comparison to their
customers.
2. Price: Prices of their bags is low in comparison to other companies because the main
mission of the firm is to provide affordable bags to the customers (Ebert and et.al. 2014).
3. Design: Another measure of performance is the design. The company’s bags design is
unique and classy. They design the bags in such a way which is adaptable to all the
outfits of the customers. . Their bags are available in all the colours and large number of
the designs.
4. Payment procedure: The payment procedure of the company is also good which helps
them in increasing their performance in the market. They accept the payments from their
customers after they deliver the products.
5. Customer satisfaction: Customer satisfaction of the company is high because the firm
provides them affordable products at very cheap rate. All the bags provided in the market
are hand- stitched this is the reason that their customer satisfaction is very high.

6. Production: The production of the company is high as they produce large number of the
handbags per day. The organization produces almost 900 pieces per day to meet the
demands of the consumer (Fairlie and Robb, 2007). This production capacity of the
company makes them unique as compare with other companies.
7. Sales: The sales of the company product have also increased a lot. The firm sales in 2011
were 8 million and increased up to 13 million (in the year 2012). Due to increasing in the
sales, the company profit has increased a lot.
TASK 2
2.1 Appropriate actions to overcome the identified weaknesses in the business
In order to do successful business, it is essential that the company should overcome its
weaknesses. If the organization wishes to make development in their business than, the firm has
to first identify their weakness. It will assist the organization in making appropriate measures to
solve company’s weakness. Like in this case, Cambridge Satchel has identified lot of areas in
which it requires improvement. In order to overcome these weaknesses, the business has to adopt
these appropriate solutions which are given below:
1. The company first weakness is that there is less number of the customers to resolve it.
The organization has to make various innovative products which attract a large number of
customers. The company makes the product by keeping their rival products in the mind
(Goss, 2015).
2. The second other appropriate action taken by the firm is overcoming it by hiring many
capable employees. They can make good recruitment and selection process in their
company and employee which are selected is according to the standard of the Company.
Company is lacking in the market survey so to overcome this weakness the company has
to search the information on the internet. The company has also do the survey by reading
various kind of business magazine. These all information which they have collected from
the magazines and internet will help in making improvements in the business.
3. The company is facing the problem related to the fake founders. . These fake founders
take money from the customers and did not provide good quality products and services to
the organisation (Haeckel, 2013). Further, they do not deliver the products to the
customers at the right time. So in order to overcome this weakness, the company can

make the copy write about their products and services. They also register their company
name with such standards which gives the right of the originality.
4. In order to solve the problem of the market share, the company must try to capture their
competitors and make the products which is superior to their competitors. They try that
they not made any big g change in their product. They always maintain their quality but
try to give attractive product to customers.
2.2 Ways in which existing performance could be maintained and strengthened in business
It is necessary for the business to provide quality performance to their customers. If they
are performing well then the business would survive in long run or in the future. The company
achieve success due to their strengths and performance. If the organization does not maintain
their performance and strength then company profit will fall down and the firm will suffer a loss
in their market share. Currently, the Cambridge Satchel Company has strengths due to which
they earn profit in the market. The strength of the company is that they provide quality product to
their customers. To maintain this, the firm has to carry out the survey on customers and ask them
questions that how they can maintain quality of their product (Hatten, 2015). They also ask
suggestions to the by which they can improve their quality. Strength of the company is that they
provide unique products to the customers. This can be always maintained if they adopt the latest
idea and make the product according to the mentality of the customers. They also continue their
commitment to the business which helps the company in maintaining their position in the
market. Currently, the firm has adopted the system of after delivery payment option so the
company has to continue this process. This process is helpful in maintaining the trust of the
customers towards the organization. This process is also helpful in attracting the large number of
the customers towards the product without any kind of the hassle.
Apart from that, company is having various types of the competent employee and online
market which helps in maintaining performance of the business in the market. So the company
can hire large number of the competent employees which helps the organization in making the
unique products. In order to survive in the competitive market, the firm has adopted the strategy
of low pricing (Herstad, Sandven and Solberg, 2013). So in near future, the company has to
maintained this pricing strategy and do the market research.

2.3 Recommendation for the new areas in which business could be expanded
It is necessary to make development in the business for achieving the goal and this could
only possible if company would expand their business. This expansion provide lot many
opportunities to business by which the company can increase their profit. Nowadays, competition
has increased and in order to survive in that competitive market, the company has to expand the
business. By seeing the external factors and competition in the market, Cambridge satchel has to
expand in the domestic market. They have to open many shops at different places which provide
convenience to the customers.
The company would also try to expand their business outside the borders as this would
help in increasing customers of other nation. It will also assist in increasing market share of the
company. As company is making the handmade bags, so they first try to target the large number
of the women for their products. Then after they have to target the customers which are going to
the college and office and which is having the need of the bags. The company has also made
various kinds of the efforts for launching the product related to the men. They can also try to
expand their business in the cities which is very fashionable (Hotho and Champion, 2011). This
area would help the company a lot in attracting large number of fashionable customers and help
to increase sales in the bags. As company is located in the UK, so they can expand their business
in other countries like USA, Russia, and Australia etc. Apart from that, the company has to do
the E- Business in which all the products are online to the customers. This will be helpful for the
customers to sell their product in the whole world. They have to create the websites by which the
customers can see the company’s information.
TASK 3
3.1 Produce an assessment for existing business plan and objectives
Cambridge Satchel Company is operating their business in Britain. It basically
manufacture handmade and stitched bags and offer the same to the customers. A firm is
founded by the Julie Dean and by her mother in 2008. In order to achieve success the company
has determined various kinds of the objectives. (Kwong and Thompson, 2015). The main
objective of the company is to lead the market by providing best quality of stitched handmade
bags to customers. In order to fulfil this objective the company has developed strategies and
plan to meet their set goals. They hire the competent employees to attain the desired results. To

lead the market, company targets the female segment which are also the major buyer of its
product. In addition to this, they can also adopt low pricing strategy. This strategy will help
company in offering product at low price as compare to their competitors. The firm tries to
provide such bags which are adaptable to all the outfits of the women. Further, company makes
tailor made bags as per the customized needs of buyers.
The objective of the firm is to expand their business and try to cover all the areas of UK.
So for attaining this objective company can opens physical store at different locations. This also
help in enhancing brand recognition. For example: in 2013 the company opened their first
physical store but at the end of 2015 they opened4 physical store at different locations in the UK.
(Lee and et. al. 2015).
Furthermore, next objective of the company is to increase their production in
manufacturing the pieces of bag in a day. For achieving this objective company hired large
number of the competent employee they also purchase latest technology machine with very high
speed which helps in manufacturing the large quantity of bag. The other objective of the
company is related to providing variety of products apart from bags to customers. So for
achieving this objective they collaborated with latest fashion brand and made various stylish
and trendy product. The company also provided adaptable bags to the customers which matches
to fashionable dress of the customers. Company is also planning to target man and produce the
product related to them. So for this objective company can open the store which have exclusive
range of products needed by men such as wallets, accessories etc. For this company is trying to
collaborate with different companies and tries to make according to the fashion. Cambridge
satchel continues to monitor these objectives and developed various ways of achieving them
within the targeted time. Though, more work has to be done by the organisation in order to
remain competitive.
3.2 Revise business plan to incorporate business Changes
Business plan is very much essential for the development and betterment of the company.
It can be defined as a plan in which they plan the activities of the business that how it will go in
the business. Nowadays consumer preference is changing day by day according to the modern
world (Lin, Ansell and Andreeva, 2012). The customer changes their taste in product and quality
and tries to purchase those products which is according to the latest trend. So in order to meet

that expectationof the customers a company has to revise their business plan and this is
according to the changing environment.
Cambridge Satchel Company also faces problem related to the change in the preference
of the customer towards the quality, services and designs of the bag. These changes have arisen
in the customer due to up gradation and latest trend in fashion follows in the world. . So in order
to meet the business changes, Cambridge Satchel Company has to revise their business plan
(Monk and Wagner, 2012). In accordance to meet the preference of the customer the company
has to produce a variety of the fashionable products. This fashionable products should be
according to the latest fashion trend and various kind of the innovative things. The company has
also do the change in their marketing strategy and made the brochure. Then the company has to
leave these brochure in different store, shops, schools, colleges etc. The firm has also to hire
Bollywood actresses in order to attract the local customers of the country. In order to lead in the
market, firstly they try to lead the local market. For this they have to develop relationship with
the local community as it is very helpful in dealing with the latest market condition happen in the
local market. Apart from that the company has also to develop the online marketing system in
which they sell their product online to the customers.
3.3 Prepare an action plan to implement the changes
Changes are the part of the world sometimes it proves as blessings and sometimes as a
curse for the company. So organisation always try to adapt with the changes by appropriate
action plan (Olson and Staley, 2012). People are changing constantly and through these c they
change their preference towards i design, product, features and try to follow the latest fashion
trend. . So in order to implement this change the Cambridge satchel company has to make action
plan. First they have to change their business plan and include various innovative things. They
also tries to builds their relationship with the local community. They also made the changes in
design of the bag according to the requirements of the local and national customer. All the bags
are made s according to the latest fashion and by looking at the product the customer thought that
it is necessary things for them. The firm also give motivation to the suppliers this will help the
company in getting good raw material.
The firm also try to make improvements in the system related to payment procedure and
make standard system according to the requirements of the customer. This change system is
providing hassle free services to customers related to the payment. For making new marketing

strategy and brochure the company has to hire a well-qualified marketing manager. This manager
helps the company in making useful marketing strategies and a well-designed brochure f. In
order to attract more customers towards the company they must adopt various schemes and
develop a new system like guarantee system. In this system the firm has to provide guarantees to
customer like (Paesai, 2015) If they faces any problem in the company product they come to the
company and they replace their product. This action is very helpful in creating the trust among
the customers and attract new customers for the organisation. Company is also having many the
fake founder. So for this problem they must try to adopt a system or software which identify the
fake founder. This system is helpful in tracking the fake founder and gives the notification to the
customer about the fake founder. All these must be implemented within 6months period.’
Action plan table
1. Prepare a market research plan for identifying the needs, wants and desires of teh consumers.
2. Identifying various alternatives to include required innovations in the actual product, bag i.e.
searching suppliers of best quality material
3. Examining company’s own product with that of competitor to examine their unique features
and speciality
4. Bring technological advancement through the use of latest technologies and machinery in
manufacturing process
5. Recruiting skilled and experienced marketing manager
6. Implementing changes in the payment system for e-payment
7. Keeping detailed record of all the consumers in the computerised software in order combat
bad and doubtful customers
TASK 4
4.1 Report on the impact of the proposed changes on the business and its personnel
In order to do successful business the company must carefully observed each and every
factor which puts impact on the development of the organisation. Proper observation on all the
factor helps the company in achieving the set objectives of the business (Quiescenti and et.al.
2006). In order to cope up with all the changing situations the company has to do the changes in
their product. These changes have put the impact on the business and personnel which are

associated with the firm. However, the impact of the proposed changes on the business and
personnel on the Cambridge Satchel company are as follows: as company makes the changes in
order to cope up with the latest fashion (Lee and et. al. 2015). The impact of this change on the
business is that the large number of the customers are attracted towards the company and
purchase their designer bags Company is also try to expand their business outside the national
boundaries so it will create more job and responsibility of the personnel which works in the
organization. The employment has also increased in the various countries due to business
expansion. The personnel has get a lot of opportunity related to promotion, increase in salary etc.
due to expansion in business
Company is also try to make new strategy relating to the marketing of the product. This
changes in the organisation puts impact on the business related to increase in the number of the
customer. (Ramdani, Kawalek and Lorenzo, 2009). The other change which \ the company has
to adopt is related to the hiring Bollywood actress for the promotion of company product. The
impact of this change is that large number of the local customers are attracted towards company.
Improving relationship with the local community is very beneficial for the company has it helps
in leading the local market.
The firm is also made improvement in the system which is related to the payment
procedure. The impact of this change is that the customer is creating trust towards the company
because they get hassle free services related to the payment. The impact is also put on the
company as they get easily handle the payment of the customer. T
4.2 Plan how the changes will be managed in the business
In order to manage all the activities a management of the company plays a key role
(Ramdani, Kawalek and Lorenzo, 2009). Management of the company is considered as a stone
of the organization. Managing all the business activities is very helpful for the company in
making the development and to gain competitive advantage. Cambridge Satchel Company has
also done various kinds of the changes in the organisation. Proper management of this changes in
the organisation is helpful for the development of the organisation to manage this changes an
appropriate plan is made. In order to adapt with the changing environment that runs in the
business a proper training is to the employees related to change management.. After that
company also makes changes related to the product which puts impact on the satisfaction of the
customer. So for increasing the customer satisfaction the company provide good services to the

customer. In order to make the changes in the product they hire competent employees and made
the changes according to the latest trend. All the customers required different things so all the
products are made according to that requirements. .They also take the regular feedbacks from the
customers regarding the change product. If customers give any suggestion related to the product
then company has to adopt the suggestion and make improvements in the product (Kiisel, 2014).
Apart from that a change is made related to the payment system and guarantee system
(Schaper, 2012). So for this change the company has to monitor the system at regular intervals
and see whether it run successfully or not. New marketing strategies were also made in the
company so they have to watch on this strategy as this is helpful for the company to see the
success of the strategy in the market or not.
Apart from that a company has to hire manager which has done their specialisation in the change
management. t. This manager is helpful in maintaining the changes in the organisation and
providing proper guidance to the employee and management regarding the changes and how to
handle them. In order to track the fake founder of the organisation and to give notification to the
customers related to this founder the company has to adopt a software and system. T To manage
this change the system will be upgraded from time to time so customers faces no difficulty in
identifying fake founder.
4.3 Monitor improvements in the performance of the business on given timescale
Continuous improvement in the business is very helpful in monitoring the performance of
business and these improvements will be monitor at different time to see the performance of
business.
Goals Period Review
1. As main goal of the
company is to make number
one in the local market.
By 2014 Company is trying to be number one in
the local services.
2. To provide quality services
to the customers
By 2015 The company is trying to provide quality
services to the customers. They treat their
customers very carefully. The company is
also adopting various kinds of the system
which gives error free services of the

customer.
3. Increase in the turnover of
the company related to the
sales
By 2015 Company has increase their sales by 2015.
In 2011 the company turnover is 8
million. But at the end the company
turnover has increase and reaches up to
the 13 million (Williams and Schaefer,
2013).
4. Increase in the production of
the bags
By the end of the
2015
the production capacity of the company is
also increased a lot. as in the previous
year they produce 500 bags per day. But
at the end of 2015 it produces 900
hundred bag (Wu and Olson, 2009).
5. Open the large number of
the physical store.
By the end of the
2015
Company is also doing improvements in
that part because in 2013 they have only
one physical store. But by the end of 2015
they opened 4 physical store in the UK
(Decker, 2016)
6. Increase in the number of
the customers.
By 2015 Company opened many physical stores in
the UK. Due to which they will attract
more number of the customers and their
customers’ increases a lot.
7. To launch the product for
the men
By 2015 In this area the company performance is
also very good because in 2015 they
launch their store for the men. The store
named as first line.
CONCLUSION
Cambridge Satchel Company was established in 2008 at the Britain and produces the
leather bags for the customers. . From 2008 to till company faces lot many problems and
difficulties and due to which all the process in the company make bit complex. But from the

above report a conclusion is drawn that by adopting a proper research method and various kinds
of the action the firm takes the steps related to the development of the organisation. The
company has also made various plan for implementing the changes for the betterment of the
organization. They also made various kinds of the changes in their organisation and take
appropriate action to continue that changes in the firm. From the report a conclusion is also
drawn that company is also trying to measure the performance level of the firm. Customers are
considered as the king of the business. So company is also trying to satisfy the customers by
providing quality services and various kinds of the designer handmade bags to customer.. So
overall conclusion is that small business enterprise also achieves a success by adopting
appropriate measures and action.

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