Managing Small and Medium Enterprises

This report covers different aspects of small and medium sized businesses, including the nature of entrepreneurship, SME start-up process, challenges of managing and running SME, government support measures, growth and development strategies, and social and sustainability objectives of chosen organisation. The chosen SME for this report is CafePod Coffee Company, established in London, UK. It also includes reflective journals of 10 weeks. Subject: MS6UK47O - Managing Small and Medium Enterprises.

Managing Small and
Medium Enterprises

Contents
INTRODUCTION ..........................................................................................................................2
MAIN BODY...................................................................................................................................3
The nature of the entrepreneur behind the venture......................................................................3
The SME start-up process............................................................................................................3
The concept of business and any sources of competitive environment.......................................4
Challenges of managing and running SME.................................................................................5
Government support measures.....................................................................................................5
Current level of demand for chosen market and competitive environment.................................5
Growth and development of the business to date .......................................................................6
SMEs current growth and development strategy.........................................................................6
Social and sustainability objectives of chosen organisation .......................................................7
CONCLUSION ...............................................................................................................................7
RECOMMENDATIONS ................................................................................................................8
Reflective journals of 10 weeks...................................................................................................8
WEEK 1 ..........................................................................................................................................8
WEEK 2...........................................................................................................................................8
WEEK 3...........................................................................................................................................9
WEEK 4.........................................................................................................................................10
WEEK 5.........................................................................................................................................10
WEEK 6.........................................................................................................................................11
WEEK 7.........................................................................................................................................12
WEEK 8.........................................................................................................................................12
WEEK 9.........................................................................................................................................13
WEEK 10 ......................................................................................................................................13
REFERENCES .............................................................................................................................15

INTRODUCTION
Small and medium organizations plays a significant role in the development of any
economy. SMEs are signified differently across the globe. These are firms that are generally
privately owned businesses whose workforce, capital and assets fall beneath a specific level as
per the guidelines of the nation (Maroufkhani, Ismail and Ghobakhloo, 2020). These companies
helping in employing vast number of individuals while aiding to shape innovation. The SME
which is chosen to prepare this assessment is CafePod Coffee Company. This company is known
for serving delightful food and beverages. It is established in London, UK. The following report
covers different aspects of small and medium sized businesses. Main purpose of this project reort
is to critically analyse varied contemporary issues in relation to small and medium enterprises. It
also talks about exploring alternative routes that are available for development of business in
small and medium term industry.
This project report covers business concept, competitive advantage and growth opportunities of
small and medium sized enterprise.
MAIN BODY
The nature of the entrepreneur behind the venture.
In UK, the SME referred on the basis of the number of workers, balance sheet total and
turnover. In context of CafePod Company, it is essential that the turnover of business should not
exceed Euro 6.5 million, employees should not cross the limit of fifty and the balance sheet total
of not more than Euro 3.26 million. On the other side, in context of medium enterprise, the
turnover of business should not more than Euro 25.9 million, employees not more than 250 and a
balance sheet total of not more than Euro 12.9 million.
Characteristics of SME:
 Local area of operations: SMEs operate their business in local areas and remain there
for longer time periods which aids to make healthy relationship with local customers.
 Management: It mostly has single entrepreneur or a small group of persons manages the
business management.
 Labour-intensive: SME do not need sophisticated or heavy machinery. Thus, it exploits
more labour-intensive techniques (Maroufkhani and et.la., 2020).

The SME start-up process.
There are seven steps to starting a small and medium enterprises. In case of CafePod Cafe
are as follows:
 Put together a business plan: Internet facilitates a lot of resources where a business plan
can be made. These business plan contains objectives, a location, and some steps to taken
as well as a financing strategy.
 Reach out to an advisor: Most of the small business entrepreneurs try to pinch pennies
while waiting to look up with a certified public accountant, business coach or attorney
until there is a tax filing requirement, legal issue or something else is going deliberately
going inaccurate.
 Determine the legal structure and register the business: The most used legal structure
is LLC (limited liability Company). In case of CafePod, there are various considerations
when selecting a business entity, from the perception of taxation.
 Get a tax identification number from the IRS: Once the business entity is established,
the owner can simply get the tax identification number from the website of IRS.
 Register with state and local tax, business license and permit departments: CPA or
attorney helps in the registration for local or state taxes, permit of business or any license.
 Create bank account for the business: Once all the above stages cleared, the owner is
ready to open a bank account for the business (7 Steps to Starting a Small Business,
2022).
 Re-evaluate the business plan one more time: The initial year is usually hard for the
small business entrepreneur but somehow it can be rewarding.
The concept of business and any sources of competitive environment.
In case of CafePod Company, the following are some key sources to gain competitive
benefits:
 Product attribute differentiation: The chosen company can create uniqueness in their
products and services to gain competitive benefits. It may help in gaining better customer
engagement for the business. They can use different raw ingredients for the products such
as skimmed milk for making coffee.
 Customer willingness to pay: It is essential that a customer must be ready to pay the
prices for the products which helps company to attain competitive benefits. The chosen

SME delivers products on reasonable prices while never compromising on the quality
feature.
Challenges of managing and running SME
Below are some challenges that might face by SMEs. In context of CafePod Company
are as mentioned underneath:
 Company registration: Registering the small and medium business firm can also be a
tiring, long and costly process.
 Raw materials: These materials are essential for any SME and no accurate quantity, no
timely supply or poor quality of raw materials can raise issues and will eventually disturb
the operations of business (Bołkunow, 2019).
 Technology: This is one big issue in SME that these businesses are unable to adapt new
technologies such as there are no right resources to update the equipment and machinery.
It might disturb the manufacturing process or it might affect the product quality and costs
increases as well, due to which they are not able to compete with competitors.
Government support measures
Government always encourage small and medium enterprises for their growth and
development as these firms contribute majorly to the nation's economy.
 To overcome operation and financial challenges: As SMEs face the challenges of
getting loans, government could help in many ways, encompassing giving collateral,
building and helping certain loans to SME or grants to attain objectives such as to
enhance the productivity or to recruit additional personnel (5 SOURCES OF
COMPETITIVE ADVANTAGE TO DRIVE GROWTH, 2020). Additionally, they also
favour in taxing policies.
 To overcome business or marketing challenges: It is a common obstacle that many
small business entrepreneurs know what needs to be done, but not understand how it can
be done. Many government facilitates SME with consulting services at very low costs so
that they can better understand the process.
Current level of demand for chosen market and competitive environment
CafePod Company is a popular cafe in UK which offers differential kinds of coffee and
other snacks with exclusive taste. It caters a massive customer base through its excellent services

and exclusive as well as exotic taste (Chien and Et. Al., 2021). Competitive environment of
hospitality industry is very high. As there are large number of population who willingly drinks
coffee and they are also indulgence in their nature that is they want to enjoy their life to the
fullest. As per a survey, British customers spend a significant amount of their earning in coffee.
Competitive environment of UK has following types of competitors.
Direct competitors- These type of competitors offers similar kind of products and also
targets same population of a specified segment (Graafland, 2018). Competitive strategy of
CafePod Company is focused on offering good quality of products and sophisticated
environment.
Indirect competitors- Under this type of competitors, those food outlets are taken into
consideration which do not provide similar products or substitutes (Gerstenfeld and Roberts,
2017). Competitive advantage with CafePod Company that it provides a comfortable space and
atmosphere for dine-in their premises.
Growth and development of the business to date
CafePod Company is an independent business which was established in 2011. They
provide exotic and exclusive taste of different types of coffee to their customers. They were
inspired by London Coffee and has pushed their boundaries for providing best practices to their
customers. From 2011, CafePod Company is growing and expanding their operations. Their
delicious blends comprises of Ristretto, Espresso, Intense Roast and many more (CAFEPOD
COFFEE CO. - CRAFT COFFEE. 2022). Managers of CafePod Company believes in delivering
intense flavours of espresso. They maintain good supply chain relationship with diverse suppliers
who hails from different nation like South America, Indonesia and many more.
Managers of CafePod Coffee use unique blending options that have been developed by Q
Graders which is considered as a most recognised certification in coffee industry (Kayvanfar and
Et. Al., 2018). However, at the time of hit of Covid Pandemic, when all the coffee houses have
closed down and people are restricted to their homes by following covid protocols. CafePod
Company faces immense losses like all other organisation which have closed down their
operations due to global pandemic. But after regaining from that difficult period, managers of
CafePod Company have adopted extensive marketing techniques for promoting their business as
well as catering a massive base of customers.

SMEs current growth and development strategy
In order to enhance growth and development strategies for SMEs, Ansoff matrix in
relevance with CafePod Company is discussed below:
Ansoff matrix is used by organisations to evaluate varied strategies that can be undertaken
for planning growth avenues (Ali and Selvachandran, 2017).
Market Penetration- This category talks about revamping of existing products in existing
market. In relevance with CafePod Company, they can choose this strategy by increasing their
sales in existing market through extensive promotion.
Product development- Under this category, new products are introduced into existing
market. In context to CafePod Company can adopt this practice through introduction of new
product at their cafe.
Market development- This strategy talks about entering into a new product with existing
products. In relevance with CafePod Coffee, managers can apply this strategy for their
development through expanding into a new market.
Diversification- Under this strategy, an organisation enters into a new market with
introduction of a new product (Masood and Sonntag, 2020). Managers of CafePod Company can
implement this strategy by diversifying their business routes towards a new avenue.
Social and sustainability objectives of chosen organisation
Ethical and sustainable practices are significant for organisations as these help them in
securing competitive advantage in market as well as maintain positive brand image in front of
public (Vanhaverbeke, 2017). CafePod Company has also adopt sustainable practices in their
business operation by protecting taller coffee trees for in drought and heavy rain situations.
Managers of CafePod Company have initiate a programme for curbing carbon and other toxic as
well as harmful gases.
They have also adopted sustainable practices in their business operations by making
compliance with differential legislations framed by government officials to be followed by
establishments operating in food and beverage industry (de Araújo Lima, Crema and Verbano,
2020). This social and sustainable practices are used by managers of CafePod Company as a
marketing tool that helps in attracting more number of customers towards their brand.

CONCLUSION
From the above study, it is concluded that small and medium enterprise delivers a huge
value on any country's economy. It helps in growth and development of a country and in return,
government also majorly support such kind of business organizations in numerous ways.
Somehow, these firms face challenges in operating business which is discussed in this report. It
also talks about social and sustainable practices that are need to be undertaken by organisations
for attaining competitive advantage. This report also throws some light on development and
growth strategies that are chosen by organisations for securing competitive advantage.
RECOMMENDATIONS
It has been recommended that for expanding their business operations and grow sustainably,
managers of CafePod Company can adopt product development strategy which will help them in
improvising their existing product or given the opportunity of developing the new one. As they
have large number of customers in existing market, they can bring some unique product or add
some exotic taste to their previous products. This practice not only help managers of CafePod
Company in attracting more customers but also assists them in attaining competitive edge.
Reflective journals of 10 weeks
WEEK 1
What thoughts I have prompted in this week?
In the first week of MSME module at university, it have been asked to made a power point
presentation regarding my name, nationality, last assignment that I have joined. This discussion
phase have prompted me to think that this module will be interesting for me.
Which things I have found interesting this week?
This week encompasses of group discussion which made it interesting for me as I got to know
about different personalities who will accompany me in attending the module.
What have I learnt in this week module?
In this week, teachers conduct a group discussion and teach us some basics of the concept of
MSME. Through this I have learned about basic features of MSME and got to learn about my
classmates.
How this learning will aid me in my future?

This learning will aid me in building my start-up in future. Through this I will be able to learn
about basics to advance regarding the field of MSME.
WEEK 2
What thought evoked in me in this week?
In this week, I got a chance to go through a case study for understanding the nature of
entrepreneurship and tasks performed by entrepreneur. Thoughts are evoked in me in this week
are how an entrepreneur can perform so many tasks at one time.
Which this week learning are fascinating for me?
I found the case study most interesting part in this week. I learned that while moving forward to
plan a start-up business in partnership, it is significant to come on same page. Ideas and issues
demonstrated in case study are interesting for me.
What knowledge I have gathered in this week?
I have learned that for planning a start-up business, it is important to understand the nature of
MSME, ways for accessing funds, marketing capabilities in market. Market of MSME is very
big and provide employment to varied job seekers (Jordão and Novas, 2017). I also got to know
about differential style of entrepreneurship.
How this learning will assist me in my future?
This week I learned about basic concepts of entrepreneurship and entrepreneur. This would
surely assist me in planning for my start-up in future. This will also aid me in choosing my
partners effectively.
WEEK 3
What I have think to learn in this week?
This week I have learned a lot about failed entrepreneurs and their success story through case
study. Thoughts that were evolved in me during this week are it is not easy for entrepreneur to
maintain their business in fast-paced dynamic environment.

Which stuff of learning found to be interesting this week?
This week I learned about a successful entrepreneur, his mistakes and success story through a
case study. This exercise made me enthusiastic to learn about varied entrepreneurs and it is
very interesting frort me.
What have I learnt in this week module?
I have learned it is important for entrepreneur to be risk-taking but they have to track dynamic
and rapidly changing business environment for taking critical decisions.
How this learning is beneficial for me in my future?
This learning is beneficial for me as it aids me to critical think before taking any decision for
my start-up in future. I will be a risk-taking entrepreneur but not at the terms of loosing the
whole business.
WEEK 4
What thoughts evoked in me in this week?
I thought that this week would also be interesting like previous ones but this week I was taught
by power point presentations regarding types of risks and uncertainty that can be seen in a start-
up business.
Which seemed to be interesting this week?
This week I learned about varied risks as well as uncertainty that come up in managing a start-
up business. This knowledge seemed to be interesting to me.
What learnings I am taken in this week ?
I have learned about difference between risks as well as uncertainty and how they impact
business operations in an adverse manner. There are two types of uncertainty which is intrinsic
and extrinsic to business (Hillary, 2017). Dimensions of external uncertainty encompasses
market, customer and aspirational uncertainty.
How this will aid me in making my future bright?
For making my start-up business successful, I need to have knowledge about varied risks and
uncertainty that can be a disruptions in operations. This learning would help me in building

efficient entrepreneurial skills.
WEEK 5
What thoughts I have evoked in this week?
In this particular week, I have learned through a case study about how to make decisions for
running a successful enterprise. Thoughts that have evoked in me during this week are that it is
important for entrepreneurs to engage more persons with them in order to build enterprise
successful.
Which things are fascinating for me this week?
Case study learning is a cause of my fascination in this week. Though this I learned about an
interesting case of Sushi company.
What learnings I have got in this week?
I have learned a lot of information about a business enterprise through a case study. I got to
know about that even extensive market research is not enough for success of an enterprise. It is
important for entrepreneurs to critically examine about market dynamics and also engage
professionals in business operations (Ahmad, Ahmad and Bakar, 2018).
How this would help me future?
This learning would help me definitely for setting up my business enterprise in future. I would
also take help of professionals for managing my start-up business in an effective way.
WEEK 6
What thoughts I have prompted in this week?
This week I am having feeling very enthusiastic and confident as I have learned varied basic
concepts regarding my module. I am thinking that I am set to plan my own start-up business.
However, I have to completely study this module for planning further.
Which things I have found interesting this week?
Creation and assessment of business plans is a sort of interesting task for me. Aspects related to
business such as feasibility, communication and funding are need to be assessed in a significant

manner (Mejri, MacVaugh and Tsagdis, 2018). It seems interesting for me to plan and forecast
for business while nothing is predictable in this dynamic environment.
What have I learnt in this week module?
I have learnt that business plan are very significant to prepare for effective performance of
business. I learned that business plan is a crucial aspect which is used as analytical and
communication tools as well as act as a guide for taking up further steps. I have also learned
about two different approaches namely, effectuation and causation.
How this learning will aid me in my future?
This learning will surely aid me in building my future in an effective manner. Through this, I
have learned about the importance of business plan for building an enterprise a successful
avenue.
WEEK 7
What thoughts I have evoked in my learning practice during this module?
Thoughts that have evoked in during this week are that this week would be interesting for me as
in this I have enhance my knowledge about financing techniques.
Which stuff seems to be interesting for me?
In this week I have learned about interesting finance techniques like crowdfunding, peer-to-peer
lending, bootstrapping and customer bonds. I found these terms very fascinating and want to
learn more about them.
What knowledge or skills I have gained this week?
In this week, I have enhanced my financial skills by understanding differential ways for
accessing the funds. There are many ways through which small start-up business can arrange
funds such as term loan, grants, asset financing, stock finance, factoring and many more (Gray
and Et. Al., 2017).
How this learning will provide benefits to me in future?
This learning week is of utmost information and knowledge for me as it provides solutions to
solve varied finance problems that I can face while planning for my start-up in coming years.

WEEK 8
What was my thoughts while stepping in this week?
This week I have learned about the ways related to growth and consolidation of start-up
businesses. Thoughts that I have while stepping in this week are that I would learn some thing
new about entrepreneurship.
What has fascinated me in my learning this week?
Processes and strategies that are used by organisations for their growth as well as consolidation
have fascinated me in a significant manner. I felt interested by learning about different types of
growth strategies that are undertaken by start-ups.
What were the learnings in this week?
I have learnt about growth types and strategies. It has been analysed that any company sees six
phases for their growth that is initiation, survival, profitability, growth, take-off and maturity
(Meyer, Neck and Meeks, 2017). For analysing growth strategies, company uses Ansoff
matrix.
How this would assists me in future?
This information would surely aid me in setting and planning growth avenues for my start-up.
Through this knowledge, I can plan accordingly my business activities as per the growth
phases.
WEEK 9
What thoughts I have evoked in this week?
Thoughts that are evoked in me during learning in this week is a feeling of confidence and
nervousness. As this is the ninth week of this module, I want to grab as much knowledge as I
can from this.
Which things I found interesting this week?
I have learned about necessities of entrepreneurship and associated public policies which has
fascinated me during this module. These MSMEs have been consider as a considerable source
of providing employment to job seekers (Hillary, 2017). Differential laws that are framed in

relevance with entrepreneurship have fascinated me in sizeable manner.
What information I have gained this week?
I got the information regarding varied entrepreneurship policies from the learning in this
module. Government officials also supports varied entrepreneurs in wealth creation at regional,
national or regional level.
How this would help me in enhancing my future?
This week a lot of information has been generated by me regarding role of government as well
as dynamic market in operation of successful ventures. This would help in operating my start-
up business by having knowledge about varied policies.
WEEK 10
What thoughts I have prompted in this week?
This is the last week of this module thus I am feeling uneasy as after that I will not be able to
meet my classmates on a daily basis. Thoughts prompted in me for this week is to end this on
an interesting note. I want to see to end this module through case study as it is my favourite
topic throughout the whole module.
Which things I have found interesting this week?
In this week, I got to know about a new word called civic entrepreneur which has fascinated me
in a sizeable manner. It essentially covers those individuals who bring some innovative
practices while solving a social problem that is subsist in society (Raharjo, 2018).
What have I learnt in this week module?
In last week of this module, I have learnt about social entrepreneurship and success stories of
entrepreneurs through case study as well as power point presentation. Social enterprises are
those which puts goals first and use trading skills for attaining them in an effective way.
How this learning will aid me in my future?
This is a new type of entrepreneurship which I have learned in this week. Case studies of
successful social entrepreneurs have inspire me to bring some innovative practice for solving a
social problem. This informations will assist me in planning about my start-up business.

REFERENCES
Books & Journals:
Ahmad, S. Z., Ahmad, N. and Bakar, A. R. A., 2018. Reflections of entrepreneurs of small and
medium-sized enterprises concerning the adoption of social media and its impact on
performance outcomes: Evidence from the UAE. Telematics and Informatics. 35(1).
pp.6-17.
Ali, H. A. R. and Selvachandran, G., 2017. Influential Dynamic Capabilities in Small and
Medium Enterprises’ Internationalization. Advanced Science Letters, 23(4), pp.2825-
2828.
Bołkunow, W., 2019. Internationalization of European small and medium-sized companies.
In Eurasian Business Perspectives (pp. 39-51). Springer, Cham.
Chien, F. and Et. Al., 2021. Assessing the prioritization of barriers toward green innovation:
small and medium enterprises Nexus. Environment, Development and Sustainability,
pp.1-31.
de Araújo Lima, P. F., Crema, M. and Verbano, C., 2020. Risk management in SMEs: A
systematic literature review and future directions. European Management
Journal. 38(1). pp.78-94.
Gerstenfeld, A. and Roberts, H., 2017. Size matters: barriers and prospects for environmental
management in small and medium-sized enterprises. In Small and medium-sized
enterprises and the environment (pp. 106-118). Routledge.
Graafland, J. J., 2018. Ecological impacts of the ISO14001 certification of small and medium
sized enterprises in Europe and the mediating role of networks. Journal of Cleaner
Production, 174, pp.273-282.
Gray, J. V. and Et. Al., 2017. Why in the world did they reshore? Examining small to medium-
sized manufacturer decisions. Journal of Operations Management. 49. pp.37-51.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Hillary, R., 2017. Environmental management standards: what do SMEs think?. In ISO 14001
and Beyond (pp. 333-358). Routledge.
Jordão, R. V. D. and Novas, J. C., 2017. Knowledge management and intellectual capital in
networks of small-and medium-sized enterprises. Journal of Intellectual Capital.
Kayvanfar, V. and Et. Al., 2018. A multi-echelon multi-product stochastic model to supply chain
of small-and-medium enterprises in industrial clusters. Computers & Industrial
Engineering, 115, pp.69-79.
Maroufkhani, P. and et.la., 2020. Big data analytics adoption: Determinants and performances
among small to medium-sized enterprises. International Journal of Information
Management, 54, p.102190.
Maroufkhani, P., Ismail, W.K.W. and Ghobakhloo, M., 2020. Big data analytics adoption model
for small and medium enterprises. Journal of Science and Technology Policy
Management.
Masood, T. and Sonntag, P., 2020. Industry 4.0: Adoption challenges and benefits for
SMEs. Computers in Industry. 121. p.103261.

Mejri, K., MacVaugh, J.A. and Tsagdis, D., 2018. Knowledge configurations of small and
medium-sized knowledge-intensive firms in a developing economy: A knowledge-based
view of business-to-business internationalization. Industrial marketing management. 71.
pp.160-170.
Meyer, G. D., Neck, H. M. and Meeks, M. D., 2017. The entrepreneurship‐strategic management
interface. Strategic entrepreneurship: Creating a new mindset, pp.17-44.
Raharjo, K., 2018. The role of green management in creating sustainability performance on the
small and medium enterprises. Management of Environmental Quality: An International
Journal.
Vanhaverbeke, W., 2017. Managing open innovation in SMEs. Cambridge University Press.
Online:
7 Steps to Starting a Small Business, 2022. [Online] Available Through:
<https://due.com/blog/7-steps-starting-small-business/>
5 SOURCES OF COMPETITIVE ADVANTAGE TO DRIVE GROWTH, 2020. [Online] Available
Through: <https://online.hbs.edu/blog/post/sources-of-competitive-advantage>
CAFEPOD COFFEE CO. - CRAFT COFFEE. 2022 [Online] Available through: <
https://www.cafepod.com/pages/our-story>