Managing Small and Medium Enterprises for Laynes Espresso Coffee Shop

The report discusses the nature of the entrepreneur behind the venture, SME start-up processes, and any government support measures that may be available to help the business overcome challenges. The sources of competitive advantages include product attribute differentiation, better customer services, more variety, location, and brand identity. The current level of demand and competitive environment is analyzed through basic financial planning, externally oriented planning, and strategic management.

Small medium
enterprises
1

Table of Contents
Small medium enterprises................................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
The nature of entrepreneur behind the venture.......................................................................3
The SME start up processes...................................................................................................4
The business concepts and any sources of competitive advantages.......................................4
The current level of demand of competitive environment t...................................................5
The growth and development of business to date..................................................................6
The challenges of managing and running the business..........................................................6
The SMEs current growth and development strategy............................................................7
Any government support measures that may be available to help the business to overcome the
challenges faced......................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
2

INTRODUCTION
The small medium enterprises or small medium sized business are the businesses whose
personal numbers whose personnel numbers that fall below the limits of certain limits. The small
medium enterprises that used by the international organization. The small medium sized
enterprises with fewer than employee. While the small medium enterprises that is get defined
and maintained the revenue and assets as well as the number of the employee, as well as small
size enterprises play an important role in context of economy as employing the vast number of
the people and will help to get shape the environment and government also offers the regular
incentives that will get includes the favourable tax as well as treatments to get easily access to
loans to help and keep them in the business (Akhmetshin, and et., al 2019)now, in the context of
of UK coffee shop firm Laynes Espresso is considered as small medium enterprise that is mostly
being famous for newly roasted coffee beans, the business recognised in the year 2011, also the
business wants to enlarge its corporate in further countries by presenting its exclusive sensitivity
of coffee. The report the students will try to get determine the nature of the entrepreneur behind
the venture as well as the SME process of start-up and business concepts and sources of
competitive advantages will be further get discussed within the report. Now, here are some
SWOT analysis in context of organisation Laynes espresso, the strength are the point of
company that a company is proud of and they help in establishing a company. The strength of the
company Laynes espresso that youth comprises a bigger part of population of any country.
Along with Laynes espresso also introduced a culture of cafe that enhances the needs and casual
conversation. When the discussion is about weakness they are less innovative menu. The laynes
Espresso do not have good quality of coffee and several basic options, Laynes espresso needs to
work on it and make newly themed coffee. The opportunities of cafe have to expanding into
towns and smaller cities . This is a high time of Laynes Espresso to influence semi-urban areas
and they also get enjoy the coffee of Laynes Espresso. Lastly, the threats of Laynes Espresso that
there are several local cafe have sprung within cities that serve a broader variety of coffee as well
as tea. The laynes Espresso has to work better to make the circumstances better within near
future. Now, here are some financial information about laynes Espresso coffee shop, total
inventories of laynes espresso is 2,200 also the cash in hand is 9,406 as well as tangible fixed
assets and depreciation charged is around 6,579 of Laynes Espresso.
3

MAIN BODY
The nature of entrepreneur behind the venture
The enterprise formation of laynes Espresso is in the business of procreation. The founder
of the entrepreneur Laynes Espresso is get entrusted within the task. In return, the market
economies have get trusted as well as founder of entrepreneur with the procreation of its future.
Apart from this, the entrepreneurial venture of laynes Espresso that can remain well-defined as
the administration and that place of the invention as well as opportunities in direction to get yield
financial and social value. Moreover, a businessperson is a financial agent of change with data,
skills, creativity, determination and spirit of the innovation in order to attain the goals. They will
get classifies and grasps the opportunities for assistances of economy. The entrepreneur is the
risk barrier (Guzmán, Santos and Barroso, 2019). Although, the entrepreneurial ventures as well
as small businesses usually get deal with the known as well-established products and services, as
well as the and entrepreneurial ventures of Laynes espresso focus on new as well as innovative
offerings. Due to the small business owners will tend to get deal with known risk and
entrepreneurs to become face the unknown risk. As well as nature of the owner of laynes
espresso to provide the unique taste of the coffee along with offering of some of the tasty snacks
that will be helpful within the expansion of the business in other countries also that will assist to
improve the productivity of the business
The SME start up processes
The inordinate unimportant corporate laynes espresso is continuously flinches out as the
idea, because they take to convert that knowledge into the achievement. This is the reasons
wherever numerous of the persons can be started to sense of the speechless and this will
comprehensible. This will like any big goals, if the entrepreneur wants able to handle the enough
action of the business. There are six ways to break down the process and get simplify and getting
started with small business as well as how to get start and expand the business of Laynes
espresso in other countries. so, the people will get like their coffee in other countries also
Define your vision- This function is generally get related from the end results of any
business that what entrepreneur will get wants to achieve like layne espresso wants to achieve its
brand name that people will recognise their name in terms of coffee
4

Define your mission- This is something different from vision and mission and should
elaborate the reason of the company exists, that why laynes espresso is get opened what is the
main motive behind this
Define your objectives- This function is get related from what you are going to achieve-
what are the goals that will get lead to achieving the mission and vision and how the coffees shop
will get recognised in its future
Plan your basic strategies- This function is getting to understand how entrepreneur are
profitable to accomplish the objectives that, entrepreneur have aligned previously and make their
coffee the best coffee across the world
Inscribe a modest accomplishment plan- To shot out of the slighter task that get
compulsory to attain the specified aims and purposes (Hoang, Wilson-Evered and Lockstone-
Binney, 2019).
The business concepts and any sources of competitive advantages
The rivalry of the corporate is no exclusion, and this will make or discontinuity the
organisation. when the business it can make or break the organization. This is frequently painful
and will get terrifying within additional corporate profit of the business weakness, the rivalry can
also get drive the corporate to get involve within the better vision of itself. Now the further
discussion is about the laynes espresso sources of competitive advantages is as follows -
(Moustaghfir, El Fatihi and Benouarrek, 2020)
Product attribute differentiation- this is one way to gain the competitive advantages over the
competitors, that is get helpful by differentiating the products from itself. There are countless
attributes can set the products apart. Trying to provide the unique taste of coffee as well as
customer services
 Better customer services
 This will provide more variety
 This will also constitute the location
 This also provides the identity of brand
Customer willingness to pay- this is related from the maximum price as the customer is willing
to pay for the product and services. by the help of determining the customer willingness to pay.
Now in the context of the competition this is really important to get identify the desired product
5

of customer. Moreover, if the competitors will get provides the product and services at really top
of willingness of customers.
Price discrimination – Th price discrimination is one of the most common as well as
powerful prices and strategies for any of the company. To get select the strategic prices is
really important, but this is just one factor that they are get considering to determining which
product will have to buy
Bundled pricing- this is related from the other pricing strategy that can provide the
advantageous which is bundled pricing this is practice of selling the two or more products
together within the bundle for which the cost is different than of get purchasing every item
separately.
Porter’s five forces model
Threat of new entrants: There are tremendous opportunities present within food and
beverage industry of UK. However, there are a lot of well-known players are working within
country. There is requirement of investing substantial amount on infrastructure development.
Therefore, threat of new entrants is lower for Laynes Espresso.
Threat of Substitutes: In context of respective company, threat of substitute is really
high. It is because of presence of ample of competitive firms in market. Customers can easily
switch over other companies in order to find better options at lower price.
Bargaining power of buyers: There are ample of companies working in food and
beverage industry. In addition to this, switching cost for customers is also lower. Customers can
easily switch from one service provider to other. Hence bargaining power of customers are
higher due to presence of a lot of service providers.
Bargaining power of suppliers: In case of coffee shop, suppliers are likely to provide
beans, equipments and other relevant material. There are several vendors who can supply
necessary raw material and resources to company. It minimizes the bargaining power of
suppliers.
Competitive Rivalry: It is found that the industry in which Laynes Espresso is working is
highly competitive. There are several large as well as small companies are working in food and
beverage industry. Name of few competitors are north star coffee, costa coffee and more. Hence
the competitive rivalry is high for company.
6

The current level of demand of competitive environment t
For knowing the current level of demand of the company here are some of steps that will
have to be get followed in order to perform in an appropriate manner within the company. This
will be also getting helpful to transform the attention of managers from the technicalities of the
process of planning. That will provide laynes espresso to get the competitive environment in
terms of the other companies
Basic financial planning- most of the companies will trying to trace the origins of the
formal planning as well as system for the annual budgeting process where everything will be get
reduced their problem. This is the procedures will develop to get forecast the revenue cost and
capital needs and to get define the limits as well as expenses of the budgets within the annual
basis of laynes espresso and helps to do basis financial planning of the coffee shop.
Externally oriented planning- this is really related from the environment of rapid change
and events to get forecast the absolute market almost over the night. This will be helpful to get
repeatedly experienced of the frustrations, planners and will get started to loosen its faith by the
help of forecasting and will try to get understand the basic phenomena that will driving the
changes(Nair, 2020).
Strategic management- the challenges of the planning for the needs of hundreds of the
different as well as currently getting involving within the business is get serving the various
products in dissimilar level of national as well as international market. This is unique and
effective planning and techniques that will get helpful to set these organization. This will gives
the framework of planning that will cut across within the organisational boundaries as well as
facilities of the strategic decisions making in relation to the customers as well as groups and its
resources.
The growth and development of business to date
Within the simplest way the business development of laynes espresso coffee shop can be
get summarized the idea as well as initiatives as well as activities that will helpful to make their
coffee shop business better. This also includes the increasing revenue of laynes espresso as well
as growth in terms of the business expansion that will increasing the profitability of the business
as well as building the strategic partnership and making the decision of strategic business.
The importance of growth and development of business planning
7

Mostly the potential investors will get want to see the business plan before they are
considering the funding within the business like laynes espresso. as well as many of the business
are willing to use its business before they are considering the funding within the business plan a
good plan should set every course of the business over their lifespan. Apart from this a business
of laynes espresso plan will play a major key role in allocating its resources within the business
this is related from the tool that will be helpful to attract new sources and funds that entrepreneur
can use as strategy documents within the business. moreover, entrepreneur can get maximize the
various chances of success by adopting a continuous and regular business planning cycle.
The challenges of managing and running the business
The entrepreneur of small business of laynes espresso is facing many challenges in order to
manage its business. these are the challenges can include the financing of the business, creating
product and that appeal to the customers, as well as finding and retaining the qualified
employees, competing the various objectives as well as sometimes keeping abreast.
Significance- This is important challenges within handling a coffee shop and funding it.
For successively a positive corporate will get required the important quantity of the capital, this
is particularly through the phase of creation. This will also take a substantial quantity of the
money to get enlarge a corporate, such as assigning the cash for publicity of innovative products.
Identification- The coffee shop manager willpower be essential appropriately get classify
its wants of its customers or corporate of clients. from that method can get generate the accurate
product and structures to get gratify individual’s needs.
Function- The laynes espresso business will face several challenges through finding its
qualified employee to fulfil the employ wants. Irrespective some of the low-cost faces the
businesses will continuously with their important participants for its greatest skilled and cultured
workers.
The SMEs current growth and development strategy
Expansion- The expansion of laynes espresso is one of the forms of the internal growth of
the business. This also means the increase within the same line of activities. The expansion
belongs to natural growth of the business enterprises that will takes place within the course of
time and include many of the products according to the preference of the customers
Market penetration- This means coffee shop laynes espresso will enhance its sales of its
existing products by the help of enlarging its existing market. However, market penetration also
8

means making deeper within the roads, there are numerous schemes were launched to get
penetrate within the existing market.
Market development- This will also imply while get exploring within the new market for
existing products of coffee and get includes the new taste of the coffee. In order to get increase
the sales of existing product
Product development- This function will get implies in developing as well as get
modifying its existing products like induce a new flavour of coffee to get meet the requirements
of the customers (Richards, 2020
Santos, Marques and Ferreira, 2020).
Any government support measures that may be available to help the business to overcome the
challenges faced
Fostering the growth of entrepreneurial ecosystems
Over the past 35 years government is taking high level of interest within the
entrepreneurship as well as small business development like the companies laynes espresso as
this has, potential solution in order to flagging the economic growth as well as rising the
unemployment has been also get increased. This also will get helped within a new field of
research, this is the trend was get developed by the success. However, this is not only the place
of innovation, this will also get served as a role of model for various government seeking to
stimulate growth of economic. Moreover, in conversion of significant investment by the
government into such initiatives, their overall success rate will be getting mixed (Submitter,
Sripongpun and Saksamrit, 2021).
RECOMMENDATION
 Always put quality first and serve the best, this means Laynes Espresso will investing the
right equipments and using the highest quality of coffee beans in its cafe.
 The cafe shop tell the people why coffee is unique. This is really mandatory to educate
employee of laynes Espresso. So, they can easily reinforce what makes the drinks unique
when they get interact with customers.
 Hire the right people within organisation. The quality of hiring the right people to work
within coffee shop. This can be the main difference in between the success and failure of
the coffee shop.
9

 It is suggested that Laynes Espresso needs to add some additional features such as music
night, game facilities and more in order to survive in competitive market. In addition to
this, they can differentiate their services by hiring potential and credible candidates who
are able to provide better experience to customers. The quality of hiring the right people
to work within coffee shop. This can be the main difference in between the success and
failure of the coffee shop.
The above stated recommendations are crucial and will help company in order to improve
their services. In order to implement these suggestions they will require to spend significant
amount. However, the expenditure on right hiring, including new features will also improve
the overall profit margin of coffee shop.
CONCLUSION
From the above report, it is concluded that small and medium business enterpreises are
helpful in economic growth and success. The above stated report is about Laynes Espresso that is
a SME based on. There is discussion regarding start up process of SME. It is analyzed that major
source of competitive advantage for company are better customer services, willingness of
customer to pay, strategic planning and more. Further, the market in which organization is
working is highly competitive. Therefore, there is requirement to prepare significant strategies in
terms of offering additional feature, hiring potential candidates in order to ensure long term
survival of entity.
10

REFERENCES
Books and journals;
Akhmetshin, E.M., Kuderova, I.G., Ryumshin, A.V., Gayazova, S.R., Romanova, E.V. and
Erzinkyan, E.A., 2019. Entrepreneurial skills development through distance learning. Journal of
Entrepreneurship Education, 22, pp.1-12.
Guzmán, C., Santos, F.J. and Barroso, M.D.L.O., 2019. Analysing the links between cooperative
principles, entrepreneurial orientation and performance. Small Business Economics, pp.1-15.
Hoang, G., Wilson-Evered, E. and Lockstone-Binney, L., 2019. Leading innovation among
tourism small and medium enterprises: Examining the mediating role of climate for
innovation. Leadership & Organization Development Journal.
Moustaghfir, K., El Fatihi, S. and Benouarrek, M., 2020. Human resource management practices,
entrepreneurial orientation and firm performance: what is the link?. Measuring Business
Excellence.
Nair, S.R., 2020. The link between women entrepreneurship, innovation and stakeholder
engagement: A review. Journal of Business Research, 119, pp.283-290.
Richards, W.A., 2020. The internationalisation of the Jamaican manufacturing micro small and
medium enterprise: the impact of standards as a potential firm resource (Doctoral dissertation,
Edinburgh Napier University).
11

Santos, G., Marques, C.S. and Ferreira, J.J., 2020. Passion and perseverance as two new
dimensions of an Individual Entrepreneurial Orientation scale. Journal of Business
Research, 112, pp.190-199.
Submitter, G.A.T.R., Sripongpun, K. and Saksamrit, N., 2021. The Role of Entrepreneurial Self-
Efficacy and Entrepreneurial Passion in Firm Performance. Journals and Sripongpun, Kullanun
and Saksamrit, Nattanan, The Role of Entrepreneurial Self-Efficacy and Entrepreneurial Passion
in Firm Performance (March 31, 2021). Reference to this paper should be made as follows:
Saksamrit, N, pp.33-40.
Tauch, E. and Marie, M., 2021. Service Design for sustainability: Finding best practices for
culturally sustainable tourism in small and medium enterprises.
12