Business Process Change Management for SMEs

This assignment delves into the complexities of business process change management within the context of Small and Medium Enterprises (SMEs). It examines the theoretical frameworks, practical implications, and key considerations for successful implementation. The assignment requires you to analyze relevant research and case studies, critically evaluate different perspectives on change management in SMEs, and propose actionable strategies for overcoming common challenges faced by these businesses during process transformation.

Small Business Enterprise
1

Table of Contents
Task 1.........................................................................................................................................3
LO 1: Ability to investigate the performance of a selected small business enterprise..............3
AC 1.1 Profile of the business....................................................................................................3
AC 1.2 Comparative analysis of Tangle Teezer financial performance....................................4
Task 2.........................................................................................................................................4
LO 2: Ability to propose changes for improving management and performance of business...4
AC 2.1 Recommendations about the actions to be taken for overcoming weakness.................4
AC 2.2 Ways to evaluate existing performance and maintain business performance...............5
AC 2.3 Suggesting new areas where business can be expanded profitably...............................5
Task 3.........................................................................................................................................6
LO 3: Revising business objectives and plans for incorporating proposed changes.................6
AC 3.1 Assessing existing business objectives and plans..........................................................6
AC 3.2 Reviewing the business plans and suggesting areas where changes can be made........7
AC 3.3 Preparing action plan for implementing change............................................................8
Task 4.........................................................................................................................................9
LO 4: Examining impact of change management on operations of the business......................9
AC 4.1 Impact of the proposed change on business and employees.........................................9
AC 4.2 Assessing management of the change management plans..........................................10
AC 4.3 Evaluating improvements in business performance....................................................10
Reference List..........................................................................................................................12
2

Task 1
LO 1: Ability to investigate the performance of a selected small business enterprise
AC 1.1 Profile of the business
Name of Business: Tangle Teezer
Owner structure: Owned and created by a former hair dresser Shaun Pulfrey. The product
was a detangling hairbrush. It has gradually established its business in over 70 countries
worldwide.
History of the company: Shaun Pulfrey pitched the idea about Tangle Teezer which was a
professional detangling hairbrush targeted at women of all age groups. Shaun did pitch this
idea in Dragon’s Den in 2007 and sought an investment worth £80,000 for a 15% stake in the
company. Unfortunately, the product was not at all liked by the panel and made a mockery
out of the product.
Currently, the business is present in households and hair salons in over 70 countries. The
company is valued at around £65 million and currently has major celebrity endorsers in Kate
Moss, Victoria Beckham to even Princess Kate Middleton. This states the tremendous error
in judgement that the company made in undermining the product’s potential.
Activities of the company:
The company activities basically revolves around manufacturing hairbrushes. The major
production and manufacturing phase is conducted in Great Britain itself, but they export their
products in over 70 countries. The company is always focused on making the company as
British as possible. The wide array of hairbrushes makes the company capable to target a
wide range of customers from every economic aspect.
Locations of business: Great Britain is the sole business location as of right now.
Strengths and Weaknesses:
According to Akhavan et al. (2016), understanding product strengths and weaknesses gives
an idea as to what measures can be adopted for tackling the issues that are present in the
company. If the strengths of Tangle Teezer are to be evaluated, the biggest strength it poses is
its uniqueness. The kind of products they produce is different and has less competition due to
this fact. Its compact nature and usability features makes the product very easy to use and
3

carry. People love value from the products they buy and the hairbrushes provide correct
amount of value. However the weakness that they portray is the limited range of products and
emergence of competitors in future. The problems in market share will give rise to strict
pricing competition that will have huge business implications for Tangle Teezer.
AC 1.2 Comparative analysis of Tangle Teezer financial performance
Considering the business performance of Tangle Teezer, as per reports, the revenue figures
for 2014 stood at £14.4 million that saw a huge rise in 2015 when the revenue figures stood at
£23.4 million. It was also projected that the revenue in 2016 would reach £34 million.
Currently, the business is getting takeover offers up to £200 million (Startups.co.uk, 2017).
Wet Brush is an active competitor that has a similar range of products and is gaining business
in the market with its well-priced and wide range of products. The company has yet to launch
itself as a direct rival to the organisation.
Task 2
LO 2: Ability to propose changes for improving management and performance of
business
AC 2.1 Recommendations about the actions to be taken for overcoming weakness
According to Aladwani (2014), business organisations work under certain rules and
regulations and the moment when the company portrays any kind of weakness, strategic steps
need to be taken wisely. As discussed above, the weaknesses that Tangle Teezer faces is the
limited range of products and the possibility of rising competition in the future. Considering
this fact, the major recommendations that can be administered to the company is that it has to
first increase the range of its products and make the products as per target segments. The
higher portfolio of products will lead to better chances of people having options. This will
improve the business options of the company very easily. Feindt et al. (2015) argued that
influx of competition will create substitute products in the future so it is better that companies
initiate in massive designing and manufacturing process so that a wide portfolio of products
can be developed.
Tangle Teaser being a very unique product line has a certain target segment and is based only
for women. This makes the need of creating diverse range of products along with competitive
pricing options. They should think of considering tie-ups with major hair salons and spas so
that their brand gets the desired exposure among the target audience. Ates et al. (2013) stated
4

that a brand that has an exclusive target segment must focus on creating as much awareness
as they can so that business growth can be achieved. In the case of Tangle Teezer, they must
also initiate products that are friendly for men. This will widen their customer base
exponentially. The other issue that the company faces is the possibility of rising competition
in the business. The already existing competition from Wet Brush is an aspect that the
company must keep in mind. The option to allow takeover is another aspect that can be good
for the business.
AC 2.2 Ways to evaluate existing performance and maintain business performance
According to Chaffey and White (2013), assessment of business performance is the major
duty that every company must initiate to understand the level of progress made in the
business along with an idea about the various flaws that need attention. In the context of
Tangle Teezer, the business performance is evident by the financial returns that the company
is enjoying in the growing years. The progressive profit margins that the company is showing
each year is a testament to the popularity of the product and the widespread popularity that it
enjoys in places of business. The company must engage in monthly performance review as it
will allow them to assess both employee and company performance. This can also be used as
a medium to highlight key issues so that strategic plans are developed as quickly as possible.
Gibb (2014) identifying and issuing strategic steps to tackle the issue of the companies can
save them future problems and strengthen the weak links.
Tangle Teezer exports its products to more than 70 countries and it is a remarkable piece of
business proposition. However, the fact that the expenses incurred in exports, packaging and
supply can eat up into the profits of the company if cost cutting methods are not initiated. The
company should identify locations where production and supply process can be made so that
economies of scale can be achieved and cost cutting can be enjoyed. Hudson et al. (2014)
outsourcing by SMEs allows them to save costs that would be incurred in the parent company
and other factors such as transport and supply. Tangle Teezer can monitor and control
operations from UK but they can outsource their functions effectively to other areas so that
business can save costs and it can be applied to other sectors in the company.
AC 2.3 Suggesting new areas where business can be expanded profitably
As discussed before, it is a known fact that the business of Tangle Teezer is spread to around
70 countries, their products have less variety and this factor should be worked upon as soon
as possible. They must also expand their geographical markets by consolidating their market
5

is stable economies such as India and China. The stable economies will allow the company to
conduct business peacefully and avoid any chances of financial misbalance. Lenny Koh and
Simpson (2015) argued that the key to expand business is to carefully identify and establish
business in financially and politically stable locations so as to promote smooth business
undertakings. The markets of India and China will definitely provide a vast audience
considering the massive population that both boast of. In this context, the market of Brazil
has been noticing positive economic growth, thus it can be suggested that this market is also
tapped for business expansion.
As per Kettinger and Grover (2013), for SMEs, business expansion can only be possible
when the companies establish their domestic business enough so that financially they are
capable of taking calculative risks. The business of Tangle Teezer must ensure that its
business is widespread in UK so that they can enjoy a profitable market share in the UK
market before exploring other profitable markets. Another process is by allowing the
company to be taken over for a huge return. This can assist the business to use the investment
in making the scope of the operations larger. Business expansion is also possible and global
market share can be the next objective for the business. Lin and Lee (2015) argued that the
growth of business is detrimental in the quality of products, the demand in market for such
product and the future scope of the products. Considering the immensely useful nature of the
product of Tangle Teezer, it can be said that it does pose business potential for the future.
Task 3
LO 3: Revising business objectives and plans for incorporating proposed changes
AC 3.1 Assessing existing business objectives and plans
According to Man et al. (2013), the business goals of the company are key factors that have
an importance in deciding the future outcome of the company and its performance in
financial terms. It is clear that the business of Tangle Teezer is heavily rooted for ensuring
maximum profits for the company is attained. Being an SME, it increases pressure on the
company to regularly perform in the business environment. It also is necessary that the
organisation provides top value for each of its products, since the possibility of even a slight
mistake can lead to disastrous conditions for the company.
The current business operations are highly focused on portraying the brand as a full fledge
UK based company. The operational and promotional activities are majorly conducted in UK.
6

This suggests to the fact that market establishment is to be done by the company in the
domestic arena first and alter the business expansion process is to be initiated. However, it is
clear that businesses look forward to maintain integrated business propositions and use
certain plans to enjoy profitability in the domestic front. The current scenario where Shaun
palfrey has opted to allow takeover of the company is a strategic decision that is taken by
keeping the business plans and objectives of future expansion in perspective. However,
keeping the range of product line in the market, it is evident that this was a decision based on
change management that can help business grow forward. The limited competition at present
is a good sign for the company, but the chances of future of rise in competition will hamper
profitability. Thus, developing business in the domestic market first will give them
dominance in the business field. This is however important that the performance reviews are
done accordingly so that no areas are left untouched.
AC 3.2 Reviewing the business plans and suggesting areas where changes can be made
According to Ng and Kee (2012), the business plans and objectives are major attributes that
any organisation has to deal with for conducting profitable business transactions. In order to
assess the business plans of Tangle Teezer, it is important to understand their business
dealings. The fact that the business is capable of attracting huge celebrities bodes well for the
business in future. Their operational engagement is highly focused on UK and each
operational activity is suggestive to the fact that it is a UK based company. McAdam and
Bannister (2014) argued that the business plans can be understood firmly by the scale of
business operations and the revenue generated. Keeping in mind the business of Tangle
Teezer, it can be clearly stated that the scale of business that they conduct reflects directly in
the revenue generated by them.
The profitable margins that the business is able to churn out each year is fact of their
streamlined business process and the level of production values that they possess. With the
influx of competition, it is necessary that the business adopts change management and utilises
changes of plans and strategies so that the future of the business can be secured. Sila and
Ebrahimpour (2015) argued that changes in plans and strategies allows the company to make
strategic decisions that are deemed healthy for the success of the organisation. The major
factor that Tangle Teezer must keep in mind is to constantly maintain business forecasts.
Forecasting business perspectives will allow the company to assess their current situation and
allow the company to develop strategic planning measures that can help in the
7

accomplishment of set objectives. This also helps in the changing of business ideologies for
the betterment of the company.
According to Todnem By (2014), change management requires business to adopt new
measures and new policies, therefore it becomes important that proper budgeting estimates
are kept before the acceptance and initiation of change management procedures. For example,
if the business attempts to engage business in India, proper financial stability is required so
that business can be set up properly in the country and no shortcomings can curtail business
prospective.
AC 3.3 Preparing action plan for implementing change
According to Trkman (2013), the need for a strategic and simple action plan helps the
company tremendously in devising working strategies that can take the company forward. In
the context of Tangle Teezer and its business operations, it is evident that a business
expansion move would be very profitable for the company in terms of global exposure and
market share. Stage wise implementation of plans for the company can help business in
handling operations in a specific manner so that organisational goals can be achieved.
Stage 1: Assessing current plans to implement change
Stage 2: Highlighting issues faced by the company
Stage 3: Deciding on the major plans needed for change
Stage 4: Monitoring and evaluating the change process
Stage 5: Using KPI models to measure employee performance towards business goals
achievement
Stage 6: Setting deadline for final implementation of policies for change management
These stages are the step wise action plan that the company must ensure so that it can think of
expanding business in other nations as well. As per Wagner et al. (2013), the implementation
of action plans lays the blueprint that can be accessed for devising a new and potent method
of management procedures. The current plans of the company was to conduct business
exclusively all along the locations in UK. However, the issues of competition and lower
portfolio of products highlight to the fact that change management is indeed necessary for
smooth functioning of the business in the domestic and international market.
8

Since the factors of competition and low product list is the concern, the business can adopt
measures for improving market forecasting so that customer needs can be properly mapped
out. This allows the company to initiate new product development process. This function can
be successful when the products are designed as per the location of the business. Wall and
Wood (2014) suggested that new process management requires constant monitoring and
review or else the risks of no understanding employee and company progress. The constant
monitoring of the employees and motivating performance by key reward systems can allow
better implementation and acceptance of the new change management process.
Task 4
LO 4: Examining impact of change management on operations of the business
AC 4.1 Impact of the proposed change on business and employees
According to Zairi (2014), any changes in the business perspective will be defined by the
nature of change and the volume of change that is required in the organisation. In this
context, the changes that are to be implemented included massive production of new products
and opting for either takeover or expansion of business in other markets as well. Considering
these factors, it can be said that business changes of any kind will definitely affect the various
areas in an organisation such as finance, job motivation, work pressures and many more. It is
evident that the changes of policies and procedures may add extra burden on employees. Yew
Wong (2015) argued that changes in business have a massive impact on the motivation and
morale of the employees and it affects their overall performance. The company must
therefore be specific and must take care of employee interests first.
Aladwani (2014) opined that change management can totally revamp the business aspects of
any organisation with the use of competitive strategies. Tangle Teezer must ensure that the
use of change management is affected by the use of new and latest technology so that rate of
production can be massively improved upon. The company must also be aware of the various
obstacles that may arise in the business due to the initiation of changes in policies and
operational activities. Gibb (2014) argued that new policies, philosophies and operational
strategies may not necessarily yield profitable returns due to the extreme newness of the
activities. It is therefore imperative that the various obstacles that may come in form of
economic, political, social and other macro factors must be kept in mind. As discussed
before, the need for motivating employees becomes an important aspect since they may not
9

always be willing to work under a new operational module. The performance may see a dip
and it can reflect in company results.
Tangle Teezer must enact that proper training and developmental measures are initiated so
that the employees of the organisation can definitely improve their business activities and
become efficient in their duties.
AC 4.2 Assessing management of the change management plans
According to Ng and Kee (2012), managing change is a crucial aspect that somehow finds its
way in the organisational behaviour and employee behaviour of a company. The importance
to make decisions that are beneficial for the company make it easy for the organisation to
take decisions that are in favour of the company. In the context of Tangle Teezer, the
company in order to successfully implement change strategies must focus highly on the
different aspects of change management. The major impact of the change will be on the
working schedule and format of work. The new policies and procedures will need quick and
efficient implementation since the need to expand business relies on this factor. Lin and Lee
(2015) argued that employee motivation levels may be down during a change process but
organisations must ensure that their morale is kept high.
Maintaining recording systems is a must as it allows constant recording of the various
operational transactions and employee performance and payroll structures. Using latest
technology and computers to record, maintain and evaluate data can help the business in
maintaining its operational standards. The benefit of constant recording allows the business to
also measure employee performance and company progress in their field of business. The
implemented management policies must be reviewed and monitored to evaluate the necessary
effect it has been able to bring to the performance of the company and employees.
As per Trkman (2013), review of the strategic change management policies gives an
introspective view of the differences in work atmosphere before and the present. The manner
in which the processes are initiated and executed brings forward the possible shortcomings
and strengths of the system. This is beneficial in devising better plans so that business aspect
is not harmed in any manner.
AC 4.3 Evaluating improvements in business performance
Considering the fact that the business is expected to conduct operations in the newer markets,
it is understood that only a change in management procedures could help the business in
10

achieving the desired results. In the context of Tangle Teezer, the fact that business operation
outside UK is being proposed will allow the business to prosper. The fact remains as to
whether the business will be able to handle the major operational changes still remains. As
per Zairi (2014), an organisation may not attan profitable business dealings in the first years
of business since operational activity changes affect performance levels initially. However,
sustaining the business will be possible once the employees are well accustomed with the
systems and procedures that govern the company values. It is expected that the business if
expanded to markets of India and China can yield more revenue than just from business
through exports. Sila and Ebrahimpour (2015) argued that business performance will
undoubtedly be boosted by the new policy and procedures along with use of latest
technological tools. Business of Tangle Teezer will be enhanced when established business
transactions will be made from its global business in emerging markets. The rate of returns
from sales will definitely allow the company to enhance its profit margins and business
expansion can be slowly achieved.
2014 2015 2016 2017 2018
0
5
10
15
20
25
30
35
40
45
revenue (£mn)
revenue (mn)
Chart 1: Trend Graph of estimated growth after change management
The above graph is an estimated value of how the business will yield sustainable profits after
change management is critically applied in the business. The first year of working under new
management policies may see a decline in revenue, but in the following years the profits are
expected to rise. This bodes well for the company and its products since attaining a global
market share will be the major priority under which the new system will conduct business in.
Yew Wong (2015) suggested that successful business through change management is
11

possible by the extreme dedication and hard work that is implied by the employees and staff
along with other personnel. Business dealings will eventually dictate the success or failure of
change management.
12

Reference List
Akhavan, P., Jafari, M. and Fathian, M., (2016). Critical success factors of knowledge
management systems: a multi-case analysis. European business review, 18(2), pp.97-113.
Aladwani, A.M., (2014). Change management strategies for successful ERP
implementation. Business Process management journal, 7(3), pp.266-275.
Ates, A., Garengo, P., Cocca, P. and Bititci, U., (2013). The development of SME managerial
practice for effective performance management. Journal of Small Business and Enterprise
Development, 20(1), pp.28-54.
Chaffey, D. and White, G., (2013). Business information management: improving
performance using information systems. Pearson Education.
Feindt, S., Jeffcoate, J. and Chappell, C., (2015). Identifying success factors for rapid growth
in SME e-commerce. Small business economics, 19(1), pp.51-62.
Gibb, A.A., (2014). Key factors in the design of policy support for the small and medium
enterprise (SME) development process: an overview. Entrepreneurship & Regional
Development, 5(1), pp.1-24.
Hudson, M., Smart, A. and Bourne, M., (2014). Theory and practice in SME performance
measurement systems. International journal of operations & production management, 21(8),
pp.1096-1115.
Kettinger, W.J. and Grover, V., (2013). Special section: toward a theory of business process
change management. Journal of Management Information Systems, 12(1), pp.9-30.
Lenny Koh, S.C. and Simpson, M., (2015). Change and uncertainty in SME manufacturing
environments using ERP. Journal of Manufacturing Technology Management, 16(6), pp.629-
653.
Lin, H.F. and Lee, G.G., (2015). Impact of organizational learning and knowledge
management factors on e-business adoption. Management Decision, 43(2), pp.171-188.
Man, T.W., Lau, T. and Chan, K.F., (2013). The competitiveness of small and medium
enterprises: A conceptualization with focus on entrepreneurial competencies. Journal of
business venturing, 17(2), pp.123-142.
13

McAdam, R. and Bannister, A., (2014). Business performance measurement and change
management within a TQM framework. International Journal of Operations & Production
Management, 21(1/2), pp.88-108.
Ng, H.S. and Kee, D.M.H., (2012). The issues and development of critical success factors for
the SME success in a developing country. International Business Management, 6(6), pp.680-
691.
Sila, I. and Ebrahimpour, M., (2015). Critical linkages among TQM factors and business
results. International journal of operations & production management, 25(11), pp.1123-
1155.
Startups.co.uk (2017). Dragons’ Den success stories: Tangle Teezer | Startups.co.uk:
Starting a business advice and business ideas. [online] Available at:
http://startups.co.uk/dragons-den-success-stories-tangle-teezer/ [Accessed 11 Feb. 2017].
Todnem By, R., (2014). Organisational change management: A critical review. Journal of
change management, 5(4), pp.369-380.
Trkman, P., (2013). The critical success factors of business process
management. International journal of information management, 30(2), pp.125-134.
Wagner, B.A., Fillis, I. and Johansson, U., (2013). E-business and e-supply strategy in small
and medium sized businesses (SMEs). Supply Chain Management: An International
Journal, 8(4), pp.343-354.
Wall, T.D. and Wood, S.J., (2014). The romance of human resource management and
business performance, and the case for big science. Human relations, 58(4), pp.429-462.
Yew Wong, K., (2015). Critical success factors for implementing knowledge management in
small and medium enterprises. Industrial Management & Data Systems, 105(3), pp.261-279.
Zairi, M., (2014). Business process management: a boundaryless approach to modern
competitiveness. Business Process Management Journal, 3(1), pp.64-80.
14