Small Business Strategy & Growth
Added on 2020-06-04
15 Pages4161 Words53 Views
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Finance andFunding
INTRODUCTIONIn business economy there are large number of firms who are involved in performingbusiness operations, Small business operations are valuable for economy in order to enhancelocal economic areas. These business are playing vital role in economy by developing innovativeideas in order to provide job opportunities to large group of people who are unemployed andcannot fulfil their basic necessities of life. The undermentioned report is based on Caffe Finixwhich is small coffee shop in UK (A. Harris and P. Patten, 2014). They are employing largegroup of individuals who can work and earn money. The report covered study about Strong andweak points of business, tools used to measure performance, different ways by which existingperformance can be enhanced. Business should focus on implementing changes in business plansin order to improve their performance level.TASK 11.1 Profile of small business with its strengths and weaknessesSmall business are operating at smaller level in economy and they have employed lessnumber of people who are involved in performing business activities. Caffe Finix are localbusiness running their operations at smaller scales in UK. These business have adoptedeconomical pricing strategy in order to attract large group of customers who can consume theirquality coffee. There are making strong positions in economy by serving quality coffee to theirpotential clients.SWOT analysis of Caffe Finix are described below as:Strengths:They are using qualitative process in order to manufacture their goods and offeringservices to customers.They have focused in establishing their business operations at higher street shoppingareas (Altman, Sabato and Wilson, 2010).They are adopted effective strategies in order to develop brand values at market areas.They should adopt flexibility in performing business operations.Weakness:They are lacking in checking quality of products offered to customers at regular timeintervals.They had to pay higher rent charges for executing business activities.1
They are facing higher level of competition from their rivalry business.They are not having sufficient amount of money to invest in future strategies.Opportunities They are having good opportunities in order to develop their business operations bygiving franchise.They are focusing on doing high investment in UK as firms are earning higherprofitability from these business operations.They are planning to merge their operations with other business operating at larger scales.ThreatsThey are facing difficulty from large number of competitors in market areas.Due to instability in political factors there is fluctuation in tax rates (Burrows, 2015).There are variation in plans and policies which are formulated by government.1.2 Business analysis while adopting comparative measureBusiness have to focus on evaluating their performance level by making comparisonbetween their present and past performance index. Management can formulate plans in order toachieve effective results for their business operations. Balance sheet ratios are formulated whichare useful in order to take proper judgement which helps in achieving success for business.For the year ended 30 April 2016 and 30 April 20172015 2016£ £Sales 130,000 300,00Cost of sales 70,000 160,000Gross profit 30,000 60,000Overheads 12,000 16,000Net profit 40,000 45,000BALANCE SHEET as at 30 APRIL 2016 and 30 APRIL 20172015 2016Fixed assets 16,000 17,000Current assets Stock 8,000 36,0002
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