Analysis of Recruitment Firm Financial Data

This assignment involves a detailed analysis of the financial performance of two UK-based recruitment firms: Austin Fraser Limited and Gi Group Holdings Recruitment Limited. The analysis utilizes provided profit and loss account illustrations for both companies, focusing on key financial metrics to understand their profitability, efficiency, and overall financial health. The document also references relevant academic literature on small business growth and enterprise education.

Small Business
Enterprise

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Producing profile of small business with identifying strengths and weaknesses of small
business...................................................................................................................................1
2.2 Comparative measures of performance management.......................................................3
TASK 2............................................................................................................................................5
2.1 Recommendations to overcome weaknesses....................................................................5
2.2 Ways to improve existing business performance.............................................................7
2.3 New areas in which business can be expanded................................................................8
TASK 3............................................................................................................................................9
3.1 Existing objectives and plans of SME..............................................................................9
3.2 Revision of business plans to incorporate appropriate changes.....................................11
3.3 Action plans to implement modifications.......................................................................12
TASK 4..........................................................................................................................................12
4.1 Impact of changes on small business and its personnel.................................................12
4.2 Management of changes in small business.....................................................................13
4.3 Monitor improvements in performance of company over a given timescale.................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Small business enterprises are generally private firms which are mostly run by single
person. In simple words, company that has less than 9 workers is known as small business
enterprise. They provide various products and services to massive organizations. Being small
business is a big advantage as it gives quick response to customer needs, require lower costs,
flexible in nature, covers local area and provide personalised customer services. Along with this,
it also strengthens the national economy by providing employment to unemployed people (Small
Business, Enterprise and Employment Act - What you need to know, 2017). Moreover,
government of UK provides financial aid to small businesses so that they can keep growing in
competitive market place. This project report is based on ''Austin Fraser'' which is a little
enterprise. It is basically staffing and recruiting consultancy firm. In this file, various strengths
and weaknesses of this company are discussed. Along with this, some comparative measures of
performance along with the ways to improve existing performance are explained.
TASK 1
1.1 Producing profile of small business with identifying strengths and weaknesses of small
business
Small businesses are tiny in size, as they involve few number of workers to operate
organisational activities. The growth of economy is highly depended upon little enterprises
because they provide required resources to large corporations. The main objectives of this
company are follows as under:
Success of any company lies upon its strengths, and failure depends upon Weaknesses. With the
help of SWOT analysis, different strong and weak points of Austin Fraser can be evaluated.
Also, it helps in identifying future opportunities and threats of company.
Strengths: Weaknesses:
 Austin Fraser gives central attention to
the needs and demands of their
customers because it is highly customer
focused. Which helps it in attracting
more customers.
 This organization is highly popular for
 The biggest weak point of this
organization is that it have less
financial resources.
 As, this company have small size but
still it have to face high labour
turnover. It is incapable to bear such
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its innovativeness as, it provides
innovative services as compare to other
recruiting firms.
 It is very responsive to market needs,
which makes it biggest market leader of
recruitment industry.
 It have a flexible organizational
structure which helps it in cooperating
with environmental factors.
cost.
 Austin Fraser have limited market share
as compare to other organizations.
 Also, it have less skilled work force
which can result in organizational
failure.
 It have negative image in market place
because it does not perform its
corporate social responsibilities.
Opportunities: Threats:
 This organisation can expand its
business outside the United Kingdom.
 By performing CSR activities it can
build strong corporate image in market
place.
 By improving and developing its
products/services it can attract a huge
number of customers.
 New rivalry firms are the biggest threat
of Austin Fraser.
 Changing Political and legal policies
are also affecting organizational
profitability and productivity.
Hence, these are some most important strengths, weaknesses, opportunities and threats of
Austin Fraser. By evaluating them cited company can set its organizational objectives in most
effective manner. Main objectives of this enterprise are follows as under:
 Increase market share
 Minimise Labour and operational cost
 Increase profitability
 Provide better satisfaction to customers
Moreover, these are the main objectives of Austin Fraser for which it is established. This
company can accomplish its all goals and objectives only if it will provide better services to its
customers.
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2.2 Comparative measures of performance management
Austin Fraser is leading company which have great position in market place. At present
this company have strength of 48 employees. Business manager of this company always evaluate
performance of their workers so that, organizational activities can be performed in most effective
manner. In present time cited company is facing various market problems because of its rivalry
firms. Gi Group is also a leading recruitment enterprise. By analysing organizational
performance, Austin Fraser can identity its current position in market place. There are different
methods through which it can measure performance management and these are follows as under:
Customer satisfaction: In modern world, customers are becoming more demanding so, it is
highly important for all type of companies to provide better services to their clients. Also, it is a
great method through which business enterprise can evaluate their organisational performance. In
this, company can ask their customers about their needs and determine that products/services are
according to their needs or not.
Quality audit: It is effective methods of performance management which is used by organization
to determine that their products and services are as per the requirements of clients. This
technique helps company in comparing actual quality of goods with predetermined standards.
With the help of this Austin Fraser can understand that in which areas they should develop their
existing products or services. So, it can be said that it is best method of performance
management.
Financial reports: It is that financial statements which are produced by organization at the end
of year. With the help of this, cited company can compare its current financial performance with
last year. Also, it helps top management in identifying financial position of company in market
place. Financial statement of Austin Fraser is given below:
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Source: (Companies House Beta, 2015)
With the help of above mentioned financial statement it can be evaluate that Austin Fraser is
growing very well. It is increasing its financial profit per day. Moreover, this company can big
market competitor namely Gi Group which is also a consultancy firm and provides recruitment
services. Financial position of Gi group is follows as under:
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Illustr
ation 1: Profit and loss account of Austin Fraser.

Source: (Companies House Beta, 2015)
With the help of above mentioned financial statement, it can be determine that financial
position of Gi Group is decreasing, which is a great advantage for Austin Fraser.
TASK 2
2.1 Recommendations to overcome weaknesses
For busting growth and development, it is highly important to identify organisation's
strengths and weakness. Also, they have to assessed and addressed in most effective and
systematic manner. By doing this, company can increase its efficiency and effectiveness. Austin
Fraser is a small but most popular recruiting organization of United Kingdom. It have approx 46
employees which helps it in accomplishing its desired goals and objectives. The biggest problem
of this company is overload work which sometimes demotivate its workers. They feel themselves
incapable in operating so many functions of business. This encourage them towards duplication
of work. So, top management should allot their employees one task at one time. Apart from this,
cited organization is also facing various difficulties because of new rivalry firms. As, Gi Group
is biggest competitor of this company. But by providing better customer services, Austin Fraser
can achieve competitive advantage. Another problem with this company is it limited market
share. This weakness can leads this enterprise to under growth. By business expansion,
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Illustration 2: Profit and Loss Account Of Gi Group Holdings Recruitment Limited.

mentioned organization can increase its market share. Also, by performing corporate social
responsibilities it can attract a huge number of customers which can help it in enhancing its
financial profit and organizational productivity.
Apart from this there are some other actions for tiny companies through which they can
overcome their problems, which are following as under: Recognize weakness: First of all company should identify that what is problem and form
where it is coming. In other words small businesses should be aware about its weakness
so that, it can overcome those weaknesses (CHARACTERISTICS OF SMALL-SCALE
ENTERPRISES, 2017). Positive mind set: Optimistic thinking of business managers can help them in removing
various breakdowns. With the help of positive thinking, people can achieve higher
results. Austin Fraser can get rid of its weak points by the positive behaviour of its
employees and manger. Discover appropriate business location: Proper business locations can help firms to
attain desired goals and objectives. Companies should locate their business, to consider
their target customers. Arrange sufficient capital: This is the main weakness of every small business that they
do not have sufficient capital to operate its daily activities. For adequate capital this kind
of business can take government assistance. Build confidence: If the employees of organisation are highly motivated then they can
face any kind of difficulty in competitive market place. Confident workers influence the
growth and development of any company. So to overcome various problems business
firm should build confidence and motivation within individuals, employed in it (Winkel,
2013).Planning: Proper preparation of organisational strategies, policies and objectives
can help firms to get rid of future problems. A systematic way of operating activities can
minimise the upcoming difficulties of small business.
 Clear Goals: Confusion in company's objectives and goals can be a huge disadvantage
for firm. Therefore, it is necessary to make all objectives and goals clear so that, there
should be no confusion about objectives among employees.
Thus, these are some recommendation for Small business Austin Fraser, so that it can
remove its weaknesses and focus on future growth. A company can grow itself only if it take out
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its breakdowns because various weaknesses impact a negative effect on the operations of
business.
2.2 Ways to improve existing business performance
Accomplishment of organisational goals can be done if the performance of organisation
as well as its employees is good. To increase execution of company firstly it is required to
increase performance of employees, working in it. There are many ways or strategies to amend,
execution of Austin Fraser, which are discussed below:Innovation: Innovative ideas and plans
help small businesses to redesign their products and services. New product designs and
launching new programs, upgrade the current position of company. Communication: Important
information cannot be interchanged between employers and employees, if there is no proper
communication. Thus it is required, transmission of business knowledge between top and lower
management. It is necessary that, managers communicate with their employees so that desired
goals can be accomplish (Rae, 2010).Well-designed organisational structure: An appropriate
structure of company improves the performance of firm by coordinating all activities, reducing
conflicts, helping in salary administration, providing effective planning and enhancing creativity.
For proper growth of firm it is required to create well organisational structure. There are some
points through which Austin Fraser can improve its existing business performance and these are
follows as under: Team building and working: With the help of this, cited company can increase
capabilities of company. Also, it helps in boosting employee involvement and
empowerment. Consider customer preferences: It is highly important for Austin Fraser to identify
different needs, demands and preferences of their customers. Without fulfilling customer
needs. No organisation can survive in market place. So, to maintain and strengthen
existing performance of company, cited firm should conduct market research so that they
can determine actual wants of their clients. Provide Quality products: To enhance profitability and productivity of company,
mangers should make effective strategies for production department so that they produce
quality products and services. This can provide high satisfaction to consumers. Perform Social responsibilities: By performing CSR activities, Austin Fraser can attract
a huge number of customers which can help in increasing market share.
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 Marketing strategies: With the help of marketing strategies company can make direct
contact with their customers. It includes advertisement of goods and services via TV and
other social media. Involvement of merchandising schemes has made business enterprises
very successful. Embrace new technology: Small businesses can use technical support to enhance
financial profit. Through the medium of technology, Austin Fraser have improved its
current business performance. Technological assistance help small firms in producing
high productivity and total enterprise administration. Provide customer satisfaction: In present scenario, consumers are becoming more
conscious and demanding about their products. So it is a responsibility of organisations to
produce goods and services as per the need of their customers, because survival of any
company is totally depends upon satisfaction of its customers.
 Set clear goals: While deciding the Company goals, manager should consider that they
should be accomplish-able, measurable, specific and relevant to organisation. Because
goals are only thing which determine, type of business.
Consequently, Austin Fraser should use the above mentioned organisational strategies so
that, it can have immense success. These schemes can improve its existing business performance
and leads this organisation to higher level.
2.3 New areas in which business can be expanded
Business development plays an important role in every organisation. With the help of this
firm can increase its turnover, staff members, profits, sales and market shares. Expansion of
company means it is moving on the far side from its start-up stage. Every enterprise have to
develop itself so that, it can compete its contenders in market place. There are many new areas in
which Austin Fraser can spread out its business, which are following as under:
 Diversification: Austin Fraser can diversify its service line by merchandising
antonymous services, becoming a paid speaker, by teaching grown up education, and
importing/exporting products. With the help of this, cited company can enter into new
fields and sectors. Which can help it in enhancing its market share.
 International expansion: With the help of globalisation various enterprises are
expanding globally and doing their business in international market. Global enlargement
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gives many opportunities to small sized enterprises and also creates many connections on
world level (Jones and Iredale, 2010). This company can expand its business in other
developed and developing countries such as United States of America, Japan, India,
China etc. As, these countries are in developing stage and some of them are fully
developed so it can provide high financial profit to Austin Fraser.
Furthermore, it is determined that expanding business gives huge benefits like new staff,
appropriative funding opportunities, relocation possibilities and wide user base. Every company
should expand their business, even if it is satisfied with its present performance. Because if firm
will not grow its business then other contenders will develop and take market share.
TASK 3
3.1 Existing objectives and plans of SME
Austin Fraser is well grown small enterprise which is provides recruitment services to
large organisations. It have clear cut objectives and plans which helps it in increasing its
financial profits and also helps in minimising operational cost. Its managers defines
organizational goals to its employees in most effective manner so that employee will not get
confuse while operating business activities and practices. As, this organization is specialised in
recruiting and staffing services so it makes good relations with other large scale companies.
This enterprise states that it is market leader of recruiting industry. There is a process
which represents that how this company operate its business activities and practices with high
efficiency. Different steps of that procedure are follows as under:
Strategic approach: This company takes help of strategic concepts and approaches which helps
it in dealing with all business and market problems. Austin Fraser operates its business activities
and practices in most effective manner which helps it in enhancing organisational growth and
development. Also, it helps cited company in providing better satisfaction to its customers.
Concentration on digital technology: As, this company provides recruitment services so it have
to be more advanced in this modern world. This organization takes help of technical forces to
recruit people which helps it in recruiting best candidate as per their requirements. In simple
words, digitalisation helps this company in operating its business projects in appropriate manner.
Innovation and creativity: The biggest speciality of this company is its innovative services. It
completes its each and every business project with innovative methods and strategies. It
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employee makes hard effort to achieve organizational goals and objectives. Also they produce
those services which can provide appropriate solutions to customers. This helps Austin Fraser in
achieving competitive advantage.
There are different factors which is assist by Austin Fraser, and these are follows as
under:
Clients: They are the person who helps business enterprise in increasing their profitability and
productivity. In simple words, success and failure of every organisation totally depends upon
their customer line.
Staff: They are known as most expensive capital of business enterprise. Without them, no
organization can operate their organizational activities and practices. They can perform business
function only if firm will provide positive working environment within work place.
Shareholders: The are also known as key person of organization, they invest their funds in
company so that they can generate better revenue. They are considered as people of top
management who makes and implements different rules, regulations, polices and strategies for
company.
Hence, these are the major factors of Austin Fraser which it consider while achieving
business objectives. The main motives of this company are high profitability, productivity,
customer satisfaction and increase market share by 10% within next year. Also, this company is
focusing on future plans which are target new markets by providing recruitment services and to
improve its existing strategies.
3.2 Revision of business plans to incorporate appropriate changes
Business plan is that concept of organization which helps it in accomplishing desired
goals and objectives. With the help of this, company can maximise organizational profit and
minimise operational cost as, it helps in assigning business activities in appropriate manner. The
man reason behind making business plan is that if any uncertainty or market risk arise then it can
not influence negative impact on organisational profitability and productivity. Austin Fraser
makes its strategies and policies according to environmental factors so that they can not affect
business enterprise. Business plan of company helps it in setting standards which can be
beneficial for firm while managing organizational performance. Also, they helps in measuring
future growth of enterprise.
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For successful business plan, it is highly important for company to determine its future
opportunities through which it can expand its business and also can lead to high level of success.
Also, mangers have to collect information about customer needs, demands, preferences and
market trends. Collected information can help corporation in selecting and formulating best
strategies. Business plan can also help Austin Fraser in innovating its existing products or
services. There are some points which helps in developing a new business plans and these are
follows as under:
Setting aims and objectives: The main objectives of Austin Fraser are follows as under:
 To increase market share by 15%
 To provide better satisfaction to its customers To perform corporate social responsibility
Developing plan: For achieving desired goals and objectives enterprise needs to develop a
effective business plan. With the help of SWOT analysis, this company can determine its all
strengths, weaknesses, opportunities and weaknesses. After evaluating all these aspects,
organization can formulate most effective strategies and polices which can help cited
organization in achieving its above mentioned objectives.
Allocation of resources: After formulating effective strategies Austin Fraser can distribute and
utilise its financial, resources and technical resources in most systematic manner. Also, they have
to collect enough capital so that they can operate business activities and practices in appropriate
manner.
Monitoring and measurements: After allocating all resources, company should monitor all
organizational activities and services so that their will be no chance of failure. For this, Austin
Fraser can evaluate its past and current performance. This is the best method for controlling and
monitoring. Also, company can determine its performance by evaluating customer satisfaction.
High satisfied clients are symbol of organizational growth and success.
3.3 Action plans to implement modifications
Action plan is that concept of organization which is highly important for organizational
growth. Basically, it helps in converting plan into action. Austin Fraser implements action plan
so that it can accomplish its organizational goals and objectives, also can remove all those
problems which can affect business success. Different steps of action plan are discussed below:
 Determine business activities and practices
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 Benefits of the accomplishment of goals and objectives
 Taking initiative
 Prioritising the objectives
 Allotting completion date of all activities
 Final results and review
Hence, this is the action plan of Austin Fraser through which it can accomplish its
predetermined goals and objectives within given time. It is responsibility of its mangers to
complete organizational activities and practices with most effective and systematic manner.
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TASK 4
4.1 Impact of changes on small business and its personnel
Company structure is designed by its business plans. Programs of commercial enterprise
work as a managerial instrument which ensures the goals and objectives of firm, also determine
that how those objectives and goals will be accomplish (Bridge and O'Neill, 2012). Business
plans change as per the requirement of market place. Every enterprise have to modify its terms
and conditions to cope up with demand of marketplace. Modifications also influence tiny
enterprises and their personnel. There are different impact of changes on Austin Fraser which is
following as under:
 Encourage innovations: Various changes in company influence new innovative ideas and
strategies in current business. Because dynamic environment of market requires advanced
organisations with high efficiency.
 New opportunities: Organisational change also develop new possibilities to increase
financial profit and growth of firm. Environmental change provides various future
opportunities to existing business (Blenker and et. al., 2012).
 Improve attitudes of personnel: Modifications can have positive effect on attitude and
mind set of staff members. Because change in company strategies, also change the human
resource department of firm.
 Enhance efficiency: Environmental modifications can increase efficiency and
effectiveness of employees as well as of work place.
Thus, with the help of above mentioned components, it can be said that organisational
change influence the small business enterprises and also its staff members.
4.2 Management of changes in small business
Change management provides a systematic way to evaluate organisational challenges and
other weaknesses. Administration system plays a crucial role in the operations of any
commercial organisation. Company can evaluate its goals, objectives, mission and vision by
proper managerial functions, which determines the current position of firm and make it more
powerful so that, it can fulfil its future aim (Bellucci, Borisov and Zazzaro, 2010). Management
system also help small enterprise to manage environmental change. It includes various
approaches and sporting employees for the process of change management. It is used, to know
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how individuals and operations of business is going to be effected by organisational
modifications.
There has been many modification management models like Lewin's change management
model, McKinsey 7-S model and Kotter's 8 step change model which determines, understanding
of the structure of managing modifications (Chittithaworn and et. al., 2011). Small business
enterprises hire experts for managing change. Modification administration includes various
aspects such as, fill gap between requirements and consequences, survival in dynamic
environment, improve performance, reduce costs and increase engagement. Along with this, it
also determine that how business operations will be operate without risk of negative effects of
environmental changes (Blackburn, Hart and Wainwright, 2013). With the help of this small
enterprises can respond to customers’ needs very fast, it also provide well planned and managed
working procedures.
4.3 Monitor improvements in performance of company over a given timescale
If Austin Fraser wants to improve its current business performance, then firstly it should
improve performance of its employees because no enterprise can enhance its efficacy and
effectiveness without the help of its human resources. As, Austin Fraser is a consultancy firm, it
should increase its manpower so that it can improve its current position in market place (Battisti
and Perry, 2011). To enhance its profitability and productivity it should diversify its services and
also target other markets to achieve extra profit. There are some performance monitoring model
like expectancy theory and goal setting theory. With the help of these approaches small
businesses can amend their actual positioning in work place. Austin Fraser can monitor its
improvements in performance by measuring following aspects which are discussed as under: Input measures: By monitoring internal elements small businesses can improve their
execution. It includes evaluation of working capital, human resources and operating cost. Output measures: Through external monitoring Austin Fraser can measure its market
share, range of new potential customers, employee and customer satisfaction (Altman,
Sabato and Wilson, 2010).
 Process measures: It includes various new generated ideas, range of current suppliers
and estimate time period of creating ideas.
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CONCLUSION
From the above report, it can be concluded that small business enterprises work as
foundation for economic growth of UK. Small or start-up firms provide various kinds of
products and services to large corporation so that they can operate their business activities
effectually. In the present scenario, individuals want to start their own small business instead of
working in large organisations. People are looking for to increase their personal opportunities
because they do not want to work for others. This project report is based on Austin Fraser which
is a consultancy firm which provides various services like IT, engineering and technical
recruitment, to large corporations and other educational institutes. In this report, Performance of
cited company has been investigated. Different changes has been evaluated which should be
improve in company's management function. Along with this, New business objectives of this
enterprise has been revised so that business plan can be incorporated with proposed changes. At
last, impact of modifications on business operation and management has been examined.
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Online
Companies House Beta. 2015. Gi Group Holdings Recruitment limited. [Online]. Available
through: <https://beta.companieshouse.gov.uk/company/07577190/filing-history>.
[Accessed on 26th September 2017].
Companies House Beta. 2015. Austin Fraser Limited. [Online]. Available through:
<https://beta.companieshouse.gov.uk/company/05684470/filing-history>. [Accessed on
26th September 2017].
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