Managing Small and Medium Sized Enterprises

This document discusses the challenges and growth strategies of managing small and medium-sized enterprises. It explores the nature of the entrepreneur, business concept, competitive advantage, and government support measures. The document also provides insights into the growth and development of CafePod Coffee.

MANAGING SMALL AND
MEDIUM SIZED ENTERPRISES

Table of Contents
INTRODUCTION...........................................................................................................3
TASK.............................................................................................................................3
Nature of the entrepreneur behind the venture................................................................3
SME Start up procedure...............................................................................................3
Business concept and any sources of competitive advantage............................................4
Current level of demand and the competitive environment..............................................5
Growth and Development of CafePod Coffee.................................................................5
The challenges of managing and running the Business....................................................6
Current growth and development tactic of SMEs............................................................7
Government support measures that may be accessible to help venture overcome the
challenges that it faced.................................................................................................7
CONCLUSION...............................................................................................................7
RECOMMENDATIONS.................................................................................................7
REFERENCES...............................................................................................................8

INTRODUCTION
Managing small sized companies business demands strong range of successful
visionary planning, and resources structural progression for gaining wider range of efficacy
goals informatively. CafePod coffee is an independent growing private firm producing
freshly brewed varied type of organic coffee products, founded in 2011 in UK. The report
will be analysing nature of entrepreneur, business concept and sources of competitive
advantage, growth and development of business to date for gaining in detail analysis. Further,
study will be examining focus on challenges in managing small businesses, SME current
growth rate and various nw development strategies used by company. Government support
measures that may be available for small companies to overcome challenges will be analysed,
towards gaining stronger scale functional rise informatively.
TASK
Nature of the entrepreneur behind the venture.
CafePod Coffee is an independent coffee company, providing high quality coffee in
various categories such as smooth, intense, ristretto, Arabica, decaffeinated and compatible
pods. It offers espresso blends using coffee capsules that are made from food grade
recyclable plastic. Entrepreneur Peter Grainger, founder of Cafe pod cafe has been analysed
to be widely one of the highly passionate, foresighted and visionary leader and owner. Nature
of entrepreneur is widely dynamic which has built strong creative diversity within working
parameters, which enabled to bring on functional strength and high rise on best services. The
company served best premium quality services and products, where coffee production and
standards services by entrepreneur have been innovatively formed. It can be also analysed
that CafePod Coffee entrepreneur is also known for being innovative and creatively further
determined to be determined. The entrepreneur is also acknowledge to have good leadership
skills, where company workforce is highly talented and creatively diversified for varied scale
new advanced services for bringing on functional scale expansion rapidly (Kumar and
Harris, 2020).
SME Start up procedure
The SME start up procedure can be analysed to be widely crucial for bringing on new

scale functional growth innovatively, towards determinants for establishing successful
aspects fundamentally towards varied scope. CafePod Coffee , producer of various varieties
of organic coffee, with best premium quality standards has started start up with conceptual
idea of bringing on best productive customers services. Further initial investment and
resources are set up, related with optimum budget for small scale business expansion for
bringing on keen productive functional services. The company set up procedures also relates
with workforce planning, vivid scale marketing for reaching out to various potential target
customers rapidly. Investments and resources are functionally set up as per varied long term
business targets, for technical innovation which establishes best scale towards developing
fruitful business. Furthermore, for building set up procedure infrastructure planning, best
services to be delivered and channels, digital investments for marketing has to be further
analysed which brings on focus towards varied untapped targets. Entrepreneur foresighted
thinking, vision and leadership to leverage best determinants towards productive growth
plays strong essential role for new market established synergies (Lou, Lee and Goulding,
2020).This further also calls for using best business models, networks and resources for
finalising channels and innovative resources usage further towards competent innovation. Set
up procedure also calls forward wide range of effective new scale functional expansion
rapidly, where CafePod Coffee establishes quality benchmarks for gaining stronger rapid
revenue rise informatively.
Business concept and any sources of competitive advantage
CafePod Coffee being on of the fastest growing independent craft coffee business
established in 2011, serves with idea to bring on wide range of brewing fresh coffee types.
The company business type as start up has been widely confidently growing within recent
periods, where the creativity and passion to bring on small scale company investments rise
has been positively taking shape. The business services started with idea, to serve people
with various types of organic coffee, where vision of entrepreneur is to serve independent
compatible capsules exciting services. The Uk market is competitively growing with
various exciting business opportunities, range of excitement and strong coffee blends taking
up coffee enthusiasts to enjoy varied services at home. CafePod Coffee is also available on
online platforms, where online delivery is being done with ideas to serve customers
innovatively and taking care of best preferences. Sources of competition are hugely
expanding, where business operators are hugely expanding within UK market and further
there is also keen productive efficacy evolved among productive synergies. This further also

calls up wide scope towards informative digital marketing parameters, new investments
done to evolve towards untapped customer target markets and also to further keenly expand
(Wai and et.al, 2020).
Casual dining group is one of the competitor, where the business operates large cafe
services further bringing on huge scale competition for CafePod Coffee, where investments
have to be further expanded to open up cafe services. The company operations are presently
strong, where future market is also excessively wide and holds promising growth towards
new customer target market are some of integral sources of competitive advantage.
Current level of demand and the competitive environment
The current level of demand within competitive industry can be analysed to be
strongly diversified, where people in recent period look for best high quality freshly brewed
organic coffee products. This further signifies that UK market has been vividly growing to
bring on best competent services, high scale determinants connected for gaining stronger
viable goals among start up companies. Current lvel of demand is strongly taking positive
shape, and also there is ideally further consistent growth among new business ideologies.
CafePod Coffee is widely expanding towards bringing fresh supply of best quality coffee
products, bringing on fresh supplies within market towards evolved fundamental scale
growth. Competitive market within UK business environment aims to further evolve towards
leveraging best quality parameters, new range of varied resourceful services. The competition
factor is strong and also further investments of new technologies, resources are hugely in
demand for gaining stronger customer market share. This further heads on focus for further
competent innovation, creative technical expansion and also yielding towards best market
synergises. CafePod Coffee by further expanding online services and digital marketing tools,
will be further able to keenly evolve towards untapped new targets and also determine fast
competent excelled expertise. The technical diversity among employees must be hugely
focused on or bringing best functional efficacy within longer run competitively, where there
is scope for wider scale determinants and new range of competencies (Mayer, McCann and
Schumacher, 2021).
Growth and Development of CafePod Coffee
With the changing preference of people, coffee emerged as a major source of routine
drink (Bouncken, and et.al., 2019.). It impacted the firm regarding sales operations. The
special offerings such as Black coffee and Latte saw a drastic change in terms of attracting

buyers. Let’s have a look at several other factors which led to development of the
organisation.
Market Change – Over the years coffee became one of the most popular drink in the
world. The surging demand helped the management of CafePod to adapt this dynamic
culture, which led to its growth. The firm is constantly growing and managing to retain its
buyers. It is able to handle the thriving competition by providing low costs scheme for its
offerings. The officials are planning to further extend their services targeting more set of
consumers by introducing new variamts.
Product Variety – Introduction of new substitutes over times helped the firm to bring
sustainability in its operations. The coffee bean variant Nespresso proved to be the biggest
asset in terms of growth for CafePod. The constant change in consumer base resembles the
increase in sales achieved by creative management of product design. It is still in surging
mode, therefore the managing department has planned further more creative substitutes in
future.
The challenges of managing and running the Business
Intense competition – With sudden spike in coffee perceiving customers many
organisations extended their work base. This created an Intense competition for CafePod. The
firm is handling its competitors by introducing new price label and substitutes. Strategic
decision such as Cost cutting method is implemented by the management to tackle its rivals.
Customer retention – The strongest aspect for organization is the loyalty of
customers towards their Brand (Snihur, and Tarzijan, 2018). CafePod tracks the perception of
buyers towards their latest offerings to assess the future possibility of retaining them. The
management use market research as a tool to gauge their product’s success in order to
compare their shoppers base.
Business expansion – Business expansion may prove to be one of the biggest
challenge for the firm (Hopkinson, and et. al., 2018). The management is looking to expand
its operations on various platforms to increase the sales. As the company is planning to
launch more substitute products, it may become easier for marketing team to promote each of
them individually due to extension of processions.
Financial management – The management of CafePod coffee constantly measures

the finance sources including the revenues and expenses. The firm in order to provide quality
services to its buyers increased its cost of production for different units of product.
Current growth and development tactic of SMEs
In term of development and progress strategy, CafePod may take initiative to use cost
leadership tactic, which is one of the most beneficial and effective business growth strategies
according to the Ansoff’s matrix growth model. By referring to this concept, cost leadership
may help firm to increase its growth and success even better than other organizations. It helps
to increase customer base, which is quite important for excellent productivity and
profitability in market. With this tactic, management may grow effectively and generate
revenue, which is not that easy to obtain for any brand whether it is small or large. This
strategy is used by many marketers, in order to grab competitive edge that is essential. It
drives the attention of marketers and managers to offer low cost services or products that
support to gain the attention of new target market and retain existing for longer.
Government support measures that may be accessible to help venture overcome the
challenges that it faced
Low interest bank loan is one of those supports that government may offer to
companies like CafePod, it enables firm to overcome challenges that they had faced for
example, intense competition level in market, which it may overcome by making huge
investment for which bank loan or good financial support is require. Furthermore, with this
support, management may overcome other challenges as well such as issues to retain
potential buyers who may seek to obtain better food & beverage products.
CONCLUSION
From above analysis, it has been concluded that entrepreneur has gained competitive
edge within market place by taking appropriate decision and taking initiative to conduct small
business practices in systematic manner. Furthermore, it has been identified that by following
process of business start-up, individual has successfully run their venture and gained a lot of
advantages in term of increasing sales, profitability and productivity. By summing up above
discussion, it has been summarized that by developing effective growth strategies, firm has
increased its customer base and overcome the negative impact of key challenges.

RECOMMENDATIONS
 It recommended to CafePod Coffee that they can manage and run its venture in
effective and productive manner, by conduct varied initiatives for example, offering
new variety in coffee and add more value in their services via including snacks in list
of food & beverage.
 Furthermore, firm can strengthen its workforce in term of recruiting new people who
are able to growth business and obtain desire outcomes, by performing much better
and in productive manner. It suggestion is quite beneficial and important for business
as it help to give tough competition to its rivals that are operated in same sector.

REFERENCES
Book and Journals
Bouncken, and et.al. "Knowledge-and innovation-based business models for future growth:
Digitalized business models and portfolio considerations." Review of Managerial
Science (2019): 1-14.
Hopkinson, P. and et. al., 2018. Managing a complex global circular economy business
model: opportunities and challenges. California Management Review. 60(3). pp.71-
94.
Kumar, M. and Harris, I., 2020. Enterprise-wide diagnostic in the UK SME: focus beyond
tools and techniques. Production Planning & Control, pp.1-17.
Lou, E.C., Lee, A. and Goulding, J., 2020. E-readiness in construction (ERiC): self-
assessment framework for UK small and medium enterprise building services
providers. Architectural Engineering and Design Management. 16(1). pp.3-22.
Mayer, C., McCann, P. and Schumacher, J., 2021. The structure and relations of banking
systems: the UK experience and the challenges of ‘levelling-up’. Oxford Review of
Economic Policy. 37(1). pp.152-171.
Snihur, Y. and Tarzijan, J., 2018. Managing complexity in a multi-business-model
organization. Long Range Planning. 51(1). pp.50-63.
Wai, K.W., and et.al, 2020. Organizational capabilities and SME exports: the moderating role
of external funding intentions and managerial capacity. Small Business Economics,
pp.1-15.