Small Business Management: Plan & Analysis

This assignment delves into the intricacies of creating a comprehensive business plan for a small business. It requires students to analyze and discuss essential components such as market analysis, financial projections, operational strategies, and marketing plans. The assignment emphasizes understanding the key elements that contribute to a successful business plan and their practical application in the context of small businesses.

SMALL BUSINESS ENTERPRISE

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Company’s profile with their strengths as well as weaknesses.............................................1
1.2 Comparative measurement of business performance............................................................2
TASK 2............................................................................................................................................4
2.1 In order to overcomes organisations weaknesses..................................................................4
2.2 Different ways in business performance could be strengthened and maintained ................5
2.3 Recommendations of new business could be expanded ......................................................6
TASK 3............................................................................................................................................6
3.1 Assessment of existing company plan and objectives..........................................................6
3.2 Revise plan to incorporate changes.......................................................................................8
3.3 Preparation of action plan to formulate the changes ............................................................9
TASK 4..........................................................................................................................................10
4.1 Proposed changes influence upon the individual and business...........................................10
4.2 Essential business plan when all changes will be managed ...............................................10
4.3 Monitor improvements in the business performances........................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12
.......................................................................................................................................................13

INTRODUCTION
In the modern world, there are different small business enterprises that are keeping
unique and better places. Generally, SBE refers to that type of small scale organisation which has
several employees, few resources and low revenues in large extent. This report is based on
“Cambridge Satchel” which is a British company found in the year 2008. They mainly deal with
different types of leather goods and provide unique services to their customers in an effective
and efficient manner. Such business enterprise is formed by Julie Deane and their mother, Freda
in England, Cambridge (Ackermann and Audretsch, 2013)). It is a consultancy firm that provides
professional and personal advice to individuals. This assignment talks about the strengths and
weaknesses as well as profile of enterprise. Moreover, comparative performance measurement of
company are also covered in this report. In this, different ways are determined which effects the
business performances in a positive or negative manner. Further, a company has to expand their
business activities and functions in order to deal with whole modifications. Also some other
points are covered in this file which signifies regarding the effect of modification management.
TASK 1
1.1 Company’s profile with their strengths as well as weaknesses
Cambridge Satchel is a British as well as privately owned company in England and
Cambridge. It was found in the year 2008 that deal in different kind of leather bags. Main
objective of this organisation is to provide personal and professional advice to individuals. They
have small number of employees who are working together in order to achieve long term goals
and objectives of organisation in a systematic manner (Blenker and et. al., 2012). Julie and their
mother are established this enterprise with the aim of giving better product and services to their
potentials and target buyers. In this way, both the enterprises and clients are getting more
benefits as well as attain their personal & professional goal.
Profile of the business organisation:
Profile Description
Name Cambridge Satchel Company
Industry Retail
Founded by Julie Deane and her mother
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Established in 2008
Headquarter England
Products Different variety of leather products
Areas served Worldwide
Website Www.cambridgesatchel.com
There are several strengths and weakness of company which are as follows:
Strengths: These are defined as the positive points of organisation which are essential for
them in order to achieve long term growth and success (Bridge and O'Neill, 2012). There are
some points which are covered in this like:
 Cambridge Satchel is a famous and popular organisation in British as well as in
international market.
 Unique performance of company and its products name are well known among
customers.
 Product’s cost is very cheap with its durability in order to attract large number of the
buyers towards their products in an essential manner.
 The buyers of enterprise are more satisfied and impressed with their products. Organisation is providing different bags varieties which is best advantages of company.
So in this performance of the firm can increased.
Weaknesses: These are known as negative points of the enterprise which are not good for
them with regard to increase their sales and revenues. There are several points included like:
 There are a few number of experienced and knowledgeable person who cannot easily
attract buyers in order to purchase their products.
 Lack of financial resources, so in this they can not stores different leather products which
is not good for company. Because in this, they can not fulfil buyers demand in time to
time.
 Lack of proper coordination in between departments
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1.2 Comparative measurement of business performance
Company is a private enterprise in the British and international market (De Silva and et.
al., 2012). With the use of different types of parameters or measures, organisation’s performance
can be compared in an easy manner. There are elements such as balances sheet and profit and
loss account which is determine the business profits, assets liabilities and losses etc.There are
various competitors of business who provide same products to their customers.
Profit and loss account for the year ended 30 April 2016 to 30th April 2017
Particular 2016
£
2017
£
Sales 110000 100000
Cost of sales 60000 50000
Gross profit 50000 50000
Selling and other overheads 20000 30000
Net profit 30000 20000
Balance sheet of Cambridge Satchel for the year ended
Particular 2016 2016 (Total) 2017 2017 (Total)
Fixed Assets - 20000 - 21000
Current Assets:
Stock 5000 10000
Debtors 8000 5000
Cash at bank 7000 9000
Total 20000 (20000+20000)
=40,000
24000 (21000+24000)
= 45,000
Current
liabilities:
Creditors 5000 10000
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Bank overdraft 3000 5000
Outstanding
expanses
2000 1000
Total 10000 10000 16000 16000
Working capital - 30000 - 29000
Finance by
capital:
Beginning and
opening capital
20000 - 40000 -
Add: Net profit 30000 - 20000 -
Less: Drawings 10000 - 5000 -
Closing Capital 10000 10000 55000 55000
Profit of business is maximise in day to day which is better for the organisation in order
to achieve high growth and success. Balance sheet of the firm shows liabilities and assets of
the organisation. They do not have enough capital and so, in this, they never started activities
and functions of them in a systematic manner. In the year 2012, profit was maximised to
4478698.
TASK 2
2.1 In order to overcomes organisations weaknesses
With the use of of SWOT analysis, all weakness of the organisation have been
determined in a proper manner (Dennis, 2011). There are several points which are covered in
this way are identified in detailed such as:
Weakness identification: Before analysis as well as solving all negative points in a systematic
manner which is good for the enterprise in order to identify their mission, vision, goals and
objectives in an accurate way. In this way, the company should be alert all issues. So that they
can overcome all problems and fix up their management, mission and vision. It is defines as an
essential task for enterprise in order to address all difficulties which are faced by customers
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towards services or products. It will creates the hindrance in success, development and growth of
Cambridge Satchel.
There are several kind of problems which are existence in the British market. So in this
business is capable to overcome all issues with the use of effective measurement tools and
techniques. All difficulties are mainly related to products, poor knowledgable person and their
challengers etc. These all falling aspects impact the business performance in a negative way.
In order to overcome all issues, mentioned organisation use quality assurances
mechanism, it is beneficial and useful methods to business growth and success (Duberley and
Carrigan, 2013). In this way, impressive process requires in regards to ensure product variety and
quality in business. An organisation also faced lack of proper coordination with the departments,
so in this all employees are not work together as well as never attract customers. Business
organisation should try to give proper training and development section to their employees so,
they can attend and increase their skills. Trained and motivated workers can give different offers
to their consumers. It supports in respects to raise brand value, so that company can established
different person.
It is very essential role and responsibility of the administrator to improve their ability on
external and internal environment. In this way, they focus on effective strategy and plan of
enterprise.
2.2 Different ways in business performance could be strengthened and maintained
It is defines as a best part of the organisation success and growth. Mentioned business can
provide best product and services to their customers in an effective manner. Business
maximising their growth rate and profit as well as plans for business enlargement (Fassin and et.
al., 2011). It is defines as a formal process in order to strength and maintain the firm
performance. There are several points which are cover in this ways are as follows:
Find the innovative scopes expansion: In regards to enhance and retain the execution, the
company has to analysis various opportunities or scope in the British market as well as try to
compass it. Here, Cambridge Satchel is going to runs their new outlets in other country such as
China.
Grasp the other development opportunity: In regards to Strength the enterprise performance,
beside holding the recent service or product areas, so in this way an organisation seek innovative
5

improvement areas otherwise they can not existing their performance in a continue manner.
Here, business is going to extend their leather product line as well as directs in interloper level.
Provide better training and development to the workers: Demands and needs of the clients
always maximises along with innovative goods development. Company should try to give better
training section to their workers in order to increase their basic knowledge and skills. Talented
workers can attract the large number of customers due to products or services.
Use rewards: In regards to direct as well as monitor workers towards success and goal
accomplishment, the administration has to responsibility where the upper level management
reinforce the workers both negatively or positively (Goss, 2015). For instance:
 Rebuke or Compensation for deliberate failure in daily basis
 Rewards and other benefits for goal and success achievement.
 In order to encourage and correct the minor unintentional break in this case.
2.3 Recommendations of new business could be expanded
There are several areas which is defined in detailed are as follows:
Organic growth: It is known as a best strategy which is provides strength to company functions
and activities by such type of growth. In simple words, an enterprise will spend their whole
advantages into quality activities development, then it will gives large values to buyers in an
essential manner. This kind of strategy is very beneficial and valuable in order to increasing
market share. This aspects present the risks and uncertainties which are present in the company.
Strategic alliance: In order to contract or deal with different enterprise which are important in
regards to exchange their profits and resources by undertaking particular task. It would support
SBE to develop in an essential or accurate activity (Hansen and Hamilton, 2011). Thence, they
can increase their share and provides in competitors market. One of the main purpose of this, is
to link different business for the objectives and common goal achievement.
Franchising: One of the foremost technique and method which is selected by SBE in regards to
maximise their vitality and market growth in an effective manner. Such type of tool also called
as contract in between two parties. One is provides whole rights to other parties, so in this way
they sell their services and leather products with the use of trademark and sign. Franchisor and
franchisee are important players of organisation. In during the day, different person are worked
in small business enterprise on another multinational company in order to sell all services and
products to potentials and target customers. With the support of this, large number of the buyers
6

acquire knowledge and skills regarding company, therefore it will define as a marketing aspects
for each and every firms.
TASK 3
3.1 Assessment of existing company plan and objectives
Business plan is one of the best way and framework of the organisation which is essential
in order to achieve all goals and objectives in an effective manner. It covers resources
allocations, solutions for emphasis and issues (Hatten, 2015). BP, is very beneficial and useful
part of the enterprise for running of different commercial scale smoothly. With the help of this,
they can optimise and develop the all success and growth in an effective or efficient manner. It is
known as written document, it will covers all important strategies in respect to reach long term
objectives and goals in a proper way. It will encompasses the mission and vision, market analysis
and break even of the Cambridge Satchel as well as their customers, stakeholders (Business
Model vs. Business Plan, 2015). All this are decent to decide life cycle and worth of enterprise.
Business development plan is essential for the administrator because they have some objectives
(Jones and Rowley, 2011). There are some goals and objectives of the mentioned enterprise are
as follows:
 To generate large number of job opportunities and possibility of the community.
 To decrease location imbalances
 Advanced technology adoption so as to supply their lather products in an accurate
manner.
 To rise the person living standard.
Illustration 1: Business plan
(Source: Business Model vs. Business Plan, 2015)
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1. Business plan: It will covers some steps which are determined in detailed are as follows:
all these phase are identify under this:
2. Idea generation: One of the important and first steps which is very essential to identify
the needs and demands of the customers towards their products. In this manager play
important role in order to create innovative concept and plan with the use of this, they
easily diversify and grow in target as well as British market (Kitching and Smallbone,
2012). In other words, all plans are affiliated with visualise space in services or products
of the organisation.
3. Market research: IN this phase, manager of the mentioned business conduct research
which is useful for themselves to identify market trends and customers taste towards their
products. Such type of investigation very essential in sustaining positive as well as
healthy relationship with clients. In other word, administrator also recognise challengers
strengths and actual trends of market.
4. Developing and improving marketing strategy: With the help of this step, manager
formulate all business planning in successfully as well as develop better and effective
marketing scheme. It will support to achieve higher competitive benefits in economy.
5. Analysis financial conditions: In this phase, various approaches which is apply by the
administrator can evaluate their financial situation in an accurate manner. In this
Cambridge Satchel use effective production approach. So with the use of better
techniques they can extend employees productivity.
6. Implementation of plan: It is known as, last phase which is essential part of the business
organisation to implement as well as formulate their above all strategy (Lambert and
Davidson, 2013). It is needed of the administrator to control the business plan progress in
a continually.
3.2 Revise plan to incorporate changes
Business plan alteration is main aspects of SBE in order to grow and develop continually
in an effective manner. It is complete for making modification in policies and plan of business. It
will done according to the time frame requirements. Better as as well as accurate plan is
responsible for each and every entity success and growth. They are liable and able to includes
whole aspects which are supportive in order to achieving mission and vision of the Cambridge
Satchel. It is also determine as a process, with the use of this, management can identify
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circumstances and problems which are present in the organisation as well as influence its actual
market condition. Modification in their business plan that make goals and objectives in a
sustainable way (Longenecker and et. al., 2013). It will also influences the judgements making
activity of SBE. Business plan support in analysing upcoming uncertainties. With the use of this,
manager of the company can analysis bet location where the expand their business functions and
activities. Cambridge Satchel is a British organisation that deal with leather products.
So in this they are capable in order to rive their plan in an effective manner. Therefore,
innovative strategy formulation in plan that aid in regards to attain its objectives and targets. It
will covers that judgement maker to intensity their negative point as well as hold working. It is
known as eminent administration task. For instance: One of the main issues is product quality for
Cambridge Satchel. In this organisation, they need knowledgable and talented employees who
can easily recruit capable person. Poor financial condition is another problems which is faced by
the firm in British market. So that administration effort to acquire capital from various sources
such as creditors, bank and other financial institution. Cited company has unique and better plan
in order to attract large number of the shareholders easily so as to increase firm financial ability.
While plan revision, top level of management make modification in their objectives and
goals. With the aim of this, an enterprise can support the SMART target concept. In this entire
things are complete in an accurate way, so in this Cambridge Satchel achieve their objectives and
goals in an easily.
3.3 Preparation of action plan to formulate the changes
It is an important part of the each and every enterprise in regards to develop a better
action plan. With the use of this, company can easily formulate all appropriate modification in an
effective or efficient manner. It disable effectiveness and efficiency of task which requires in
respects to attain in a specific time duration (López Salazar and et. al., 2011). This plan is very
useful and beneficial for administrator and their employees for business tasks and activity
completion. It is important to monitor all measurement which analysis values and standards
performance in an essential manner. Manger of the business organisation use various tools and
techniques such as allocation role, agree on goals, establish promotion mix and time frames
settlement etc.
Action plan:
Purpose Actions Precedenc Advantage Material Time Roles and Controllin
9

e s resources scale Responsibilit
ies
g and
Monitorin
g strategy
Buyers
satisfactio
n level is
very high
Administr
ator have
to give
them
qualitative
leather
products.
They can
also
doings
positive
selling
campaigns
in order to
achieve
and as
well as
retain
different
buyers
groups.
Very
essential
This will
aid a
company
in order to
attain its
vision as
well as
mission in
a specific
time
duration
and
framework
.
Need and
requireme
nts of
more
money and
capital for
managing
market
study.
3
months.
Operation &
production
division.
By online
research in
regards to
take
commodes
and
reviews
from
customers.
Giving
better
training
and
developme
nt section
Assist in
rising
ability and
power of
worker.
Significant Helps in
maximisin
g sales and
profits of
the firm.
Experts
and
talented as
well as
Training
sessions.
2
month.
HR
department
play essential
role in
recruiting and
hiring
By
analysing
their
execution
and
controlling
10

knowledgabl
e person.
production
level.
TASK 4
4.1 Proposed changes influence upon the individual and business
Changes in business business planning which affect directly to its overall growth and
performances. It can be both positive or negative. Modification is not generally linked with the
concern but it also make huge impact on the overall operation of department under which it
regulate their work (Mitchelmore and Rowley, 2013). Apart for this, effective changes can lead
to attain competitive advantages over other company. In Cambridge satchel company which is
related with the production of stylish leather bags. They always related with production of new
bags according to the demand of customers. So for this purpose they need to do regular
modification in their bags varieties. Few time, it is beneficial for the company in order to
maintain positive working practises in reliable manner. While, sometime it can termed as
primary reason for making huge loss to the company. There are various impacts which can affect
the profitability of the business are as follows:
Impact on business operation: With one change, entire department can be affected so it
should done after proper analysis. Like for examples Cambridge satchel is making crucial
variation in relation to overcome financial problems. In this relation, planning for new project
cannot be affected. Apart from this, changes can be done keeping in mind the organisation
growth and improvement so that they can deliver pleasant environment to there employees.
Personnel impact: It is related with decision taken by management with the use of
effective skills and experience of employees and other members of an organisation. If workers
are hired in right manner the firm can get maximum advantages from them. It will help them to
attain both individual as well as organisational objectives (Smit and Watkins, 2012). It has been
observed that company is facing very hard time. They will require more effective and well
trained employees those are sufficient enough to handle the pressure. The main objective of
company is to boost moral of employee by making them healthy incentives so that stress can be
controlled.
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4.2 Essential business plan when all changes will be managed
Changes are major cause of organisational stress as well as personal stress. There is
always a direct relation with the changes in an organisation and perceptions of people those are
operating as a team (Change Management, 2016). With the generation is growing with the
digital techniques they are ready to face any changes. If employees are well prepared, they can
comfortable enough to face any changes comes in front of them. There are various ways by
which changes can be managed in an organisation. Such as:
Analysis of the changes and identify those areas which is required to be change: It is
considered as effective ways to solve issues related with company performance (Thornton and
et. al., 2011). Analyse of changes can help them to control future losses.
Data collection and information for projected changes: In the initial phase activities must
be arranges in sequence so that an ideas about which task can be complete at first priority. It will
be helpful for future planning in order control extra costs and time.
Collected information should be presented to the management and other higher authorities so
that necessary decision can be taken. According to inputs provided by management adjustments
can be made.
According to Kotter's there are eight stages of change management:
 Determining a sense of Urgency: In order to control urgency, top authorities need to
discuss the present financial situation with the concern department so that necessary
actions can be taken.
 Creating the Guiding coalition: In this phase, a employees are selected which are help
them to make changes according to the need of the company (Van Der Wijst, 2012).
 Communication of vision: To present new changes in business, it must be shared among
rest of the employees through effective communication system.
 Authorise board based action: For the implementation of new bags in the market they
required to remove potential barriers.
 Formulating short term wins: expecting performance and incentives will be provided to
those employee who are working on a new projects.
 Short term goals planning: It can be attain by giving more benefits such as rewards or
incentives.
 Regular improvement and profits should be the primary target.
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 Use of new methods and approaches through effective leadership style.
4.3 Monitor improvements in the business performances
Cambridge Satchel is a British company in England that deal with different varieties in
leather products. In this they always analysis business plan progress and success in an essential
manner. They required in order to keep whole activities and functions so in this they can set up
effective and better action plans. It is complete according tasks complexion, so in this manger of
the entity can determine proposed modification progress (Wang and Altinay, 2012). Moreover, it
is required for company to monitor all measurement in regards to contribute as well as handling
variation. They have past records & various documents of variation to take future judgements of
company. Administration could select different performance management techniques and tools.
This aspects cover all key performance indicators, management by objectives as well as 360
degree feedbacks approach etc. In other words, needs of the action is timely gradation which is
circulated and revised in groups. Hence, each and every person can aware regarding all
approaches in an essential manner. It will support to implement and formulate certain changes in
an effective manner. With this supports, all organisation can attain its objectives and goals in a
easily manner from British and target market.
CONCLUSION
As per the above mentioned report, it can be determined, small business enterprise have
few numbers of employees which are working with each other. Strength and weakness as well as
profile of the business organisation define its positive and negative points. Balance sheet and
profit & loss account of the enterprise which identify the profit and sales of the company in
actual and past year. Firm can expand their business, so in this they required talented and
knowledgable person who can easily attract large number of the buyers. There are various ways
in which business performance maintained and strength in an effective manner. All weakness are
overcomes by the manger with the use of unique tools and techniques. Modification in the plan
which also effects the business performance, so in this administrator can make effective action
plan.
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REFERENCES
Books and Journals
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pedagogy of enterprise education. Industry and Higher Education. 26(6). pp.417-430.
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Dennis Jr, W. J., 2011. Entrepreneurship, small business and public policy levers. Journal of
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Duberley, J. and Carrigan, M., 2013. The career identities of ‘mumpreneurs’: Women’s
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Kitching, J. and Smallbone, D., 2012. Are freelancers a neglected form of small business?.
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Van Der Wijst, D., 2012. Financial structure in small business: Theory, tests and applications
(Vol. 320). Springer Science & Business Media.
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Wang, C. L. and Altinay, L., 2012. Social embeddedness, entrepreneurial orientation and firm
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Online
Change Management, 2016. [Online]. Available through: <http://www.analysthire.com/change-
management/32-how-to-use-kotter-s-8-phases-model-to-deliver-sustainable-change>.
Business Model vs. Business Plan, 2015. [Online]. Available through:
<https://www.thebusinessplanshop.com/blog/en/entry/business_model_vs_business_pla
n>.
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