Small Business Enterprise

Small Business Enterprisedd/mm/yyyy
Small Business Enterprise
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Small Business Enterprisedd/mm/yyyy
Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
a) Business Profile of Root’s Reggae Reggae Sauce Limited.........................................................4
b) Comparing Root’s Reggae Reggae Sauce Limited with Industry Averages...............................6
Task 2...............................................................................................................................................8
a) Recommend with justification, appropriate actions to overcome the weaknesses......................8
b) Analyse ways in which the existing performance could be maintained and strengthened.........9
c) Suggest new areas in which the business could expand with reasonable justification..............10
Task 4.............................................................................................................................................11
a) The impact the proposed changes will have on the business and its personnel........................11
b) The plan for how the changes will be managed in the business................................................12
c) The improvements in the performance of the business over the past two years (preferably
using trend graph or other suitable reporting format)....................................................................12
Conclusion.....................................................................................................................................16
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Small Business Enterprisedd/mm/yyyy
Introduction
Small businesses usually form the backbone of an industry and this is the same in the United
Kingdom. As of 2013, there was an estimated 4.9 million private sector business in the UK, who
employed almost 25 million people and provided an annual turnover of almost 3000 Billion
GBP. More than 90 per cent of these were small businesses that hired between 0 to 49 employees
(gov.uk, 2018). A company is considered a small business when it is registered and has a
turnover that does not exceed £6.5 million. The company also must not employ more than 50
people.
This assignment analyses the importance of small businesses to the economy of the United
Kingdom. The case studies have been analysed from the successful BBC show, Dragon’s Den
where prospective entrepreneurs pitch their business ideas in a bid to get funding. The company
that was finally selected was Root’s Reggae Reggae Sauce Limited. This company appealed to
the learner as they found that Peter Jones, a Dragon’s Den investor had termed this as one of his
most successful investments on the show. Levi’s Roots pitched the idea when he appeared on the
show and received an initial investment of £50,000. Today the company stock exclusively in
Sainsbury’s and restaurants such as Subway, JD Wetherspoon and Slug and Lettuce offer this as
a part of their menu. As of 2016, the company have current asset holdings worth £167,000
(leviroots.com, 2018).
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Small Business Enterprisedd/mm/yyyy
Task 1
a) Business Profile ofRoot’s Reggae Reggae Sauce Limited
Name of the business- Root’s Reggae Reggae Sauce Limited
Owner structure- There are three main people who form the basis of the company. These
people are Mr Keith Valentine Graham, better known as Levi Roots. This musician came up with
the unique idea and pitched it on the show. He was appointed as a director in the year 5th January
2007. The other key stakeholder in the business is Teja Owen Howell who was appointed in 18th
April 2007. These two people satisfy the role on directors, while Pennsec Limited are the
company secretary, appointed in 31st July, 2012.
History/Background- The organisation, Root’s Reggae Reggae Sauce Limited, was born when
Levi Root’s novel idea of a barbeque sauce that incorporated Jamaican jerk spice took off in the
show Dragon’s Den. When the entrepreneur pitched his idea, he received an initial backing of
£50,000 for a 40% stake in the company. A successful television appearance meant that the
sauce gained fames and Sainsbury’s then registered interest in stocking the product. On the 7th of
March the sauce went on sale nationwide and the company was incorporated as a private limited
company. The company is very small and does not employ more than 10 people at a time
(beta.companieshouse.gov.uk, 2018).
Activity- The organisation produces several products such as meal kits, table sauces and pasties
and wraps. They try to integrate a unique Jamaican feeling into the company as Roots adds
unique jingles to each product, while also bringing in aspects of the Caribbean culture to the
products. The activities of the company have received popularity all across the UK as Dominoes,
Subway and KFC have started integrating aspects of this company into their own products. The
company also benefit from a strong Jamaican demographic and expatriate community. This
provides them with a strong business presence.
Business location- The registered offices of the company are located in 125 Wood Street,
London, EC2V 7AW.
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Small Business Enterprisedd/mm/yyyy
Strengths and weaknesses:
Strengths Weaknesses
The unique nature of the company means that it is
an attractive prospect to most customers.
The company was taken to court over ownership
issues that may affect their brand image.
The company is a part of the foods and condiments
industry that usually performs well. They also
provide frozen foods that may appeal to the
younger working population.
This is a large industry where there are several
players. This company could be targeted with
several pricing measures that could eat away at
their market share.
There is a large Jamaican demographic in the
country. The company would thus, appeal to them.
It can be found that two company secretaries have
already resigned and this may affect motivation
levels of the firm and its employees.
The company founder is a unique character who
provides a strong and positive brand image.
Their net worth has fallen to almost £35,000, a
76% drop (standard.co.uk, 2018).
Table 1: Strengths and weaknesses of Root’s Reggae Reggae Sauce Limited
(Source: Created by the learner)
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b) Comparing Root’s Reggae Reggae Sauce Limited with Industry Averages
Variables Root’s Reggae Reggae Sauce
Limited
Industry Averages
Background This fledgling company was
formed in 2007 after its Director
gained prominence with the
product, Reggae Reggae Sauce.
Today they are stocked across
shops in the United Kingdom and
have also gained the attention of
larger fast food companies such
as Subway and Dominoes.
Though they can only account for
a net value of £35000 (this has
fallen almost 76.73%), they hope
to grow into the industry and
create a stronger market base.
This company only employ 10
people.
The industry is worth billions
and generates almost £100 billion
in sales. This is one of the largest
industries in the country and
annually contributes almost £28
billion to the economy. It
accounts for 19 % of all products
produced in the industry. Almost
400,000 peopleare employed in
this industry.
Sales Figures The company have not accounted
sales figures but a net asset value
of £35.99k and £15.39k as cash
in the bank. Most of the major
financial figures of the company
have been falling as per previous
year figures (standard.co.uk,
2018).
This industry generates almost £
95 billion as turnover.
Potential for Growth The company can grow when the
debt ratio is brought down from
78.65%. This could improve
asset figures and allow the
company to grow.
The industry is growing
exponentially and aims to
achieve a growth rate of 20% by
2020.
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