Small Business Success Factors

The assignment delves into the crucial factors influencing the success of small and medium-sized enterprises (SMEs). It examines various aspects, including innovation capacity, risk management strategies, ethical considerations, the role of networks in fostering innovation and firm performance, and the impact of mobile technology. Students are tasked with analyzing these elements to understand their contributions to SME success.

SMALL BUSINESS
ENTERPRISE

INTRODUCTION
For the development and growth of the country small business enterprise play very
important role. Because large scale business are depend on the small business because they
provide inputs and raw material to them. Small business are kind of enterprise which they have
less than 50 employees and their main purpose it to generate income to provide goods and
services to the various customers. These kind of small business are help to improve living
standard of the people. Zizzi restaurant is small business which provide good and tasty food and
other service like hotel rooms in UK(Aremu and Adeyemi, 2011). They attract the customers by
charismatic interior so many people can take interest to go in their restaurant. Strength and
weakness of the enterprise will also included in report. A proper business plan which helps to
increase the profitability of the organisation will also discussed in report.
TASK 1
1.1 Analyse strength and weaknesses and profile of Zizzi restaurant
The main purpose of cited organisation is to provide good food and quality services to
many clients and generate income. Innovation is another objective this restaurant which helps to
attract the customers in large geographical area. Attractive interior is the main charm or given
restaurant so that clients are attracted. They provide good and tasty food not only to local but
also foreign customers(Bianch and et.al., 2010). Many strategies can be adopted by cited
organisation and also focuses on effective implementation of them. Entertainment services,
provide comfortable rooms and dining is the another services which is provided by the Zizzi
restaurant. These services are help to feels the customer more relaxed.
 Name of organisation: Zizzi
 Address of company: Hereford HR 4 9HR
 Type of Food: Italian
 Year of Founded: 1999
 CEO : Steve Holmes
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 Number of Stores: 140 branches in UK
 Opening hours: 11.30 A.M to 11 P.M
 Menu: Zizzi.co.uk
Reservation: booktable.co.uk
SWOT analysis:
Strength: Strength of any organisation can be used for betterment of the operations and activities
of the company. To provide quality food is the biggest strength of cited organisation. It includes
some factors by which a company can attract large number of customers and increase profit
margin. One another strength is that attractive interiors of their restaurant which is very
important factor for Zizzi restaurant. Personality of their qualified employees is another
important factors by which they can give best services and food to many clients.
Weaknesses: These are involves some factors which influence the functions, activities and
profits of the cited company(Bridge and O'Neill, 2012). One major weakness of enterprise is that
lack of proper communication channels between employers and employees so it arises confusion
between the managers and workers. It also affect the strategies and policies which are very
important for given organisation. Competitors is very crucial weakness of Zizzi restaurant which
are available in the market and provide same kind of food to customers. The number of qualified
employees is lesser in the enterprise so it affect the quality of products and services.
Opportunities: Innovation is the important opportunity by adopting this cited organisation can
increase in the profit margin. Cited enterprise can provide better and quality services and
products by appointing qualified and skilled employees.
Threats: Strategies, policies and profits of cited enterprise can be affected by other restaurants
which provide same food and services to clients(Cerrato and Piva, 2012).
1.2 Comparative measures of performance
To meet the current performance it is important for business organisation to measure the
over all performance. There are various tools and techniques which is used by Zizzi restaurant to
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identify current financial position of the company. For this purpose comparative analyses is
required which is given below:
Comfortable measure of performance using financial factors
profit and loss account for the year ended 31st December 2016 to 31st December 2016 are give in
the table.
2015
£
2016
£
Sales 150 250
Cost of Sales 120 120
Gross Profit 80 120
Overheads 20 60
Net. Profit 30 100
Balance sheet for year ended 31ST Dec 2016 to 31 Dec 2016 are stated in the below table.
Year 2015
£
2016
£
Fixed assets 20 40
Stock 15 10
Debtors 20 50
Bank 2 0
Total 57 100
Creditors 10 30
Bank overdraft 0 20
Total 67 50
Here are given financial data of two years of Zizzi restaurant which show current financila
position of the company.
Ratio analysis: This is the another tool by which current financial position can be identified of
any kind of enterprises(Chittithaworn and et.al., 2011). It involves profitability, efficiency and
other aspect which also important for stakeholders like suppliers, investors and government.
Other financial performance tool are given below:
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Year ending 2014 Zizzi restaurant Le Bistro Du Coin
Staff turnover 8 10
Absentee rates 15.00% 20.00%
% of job offers accepted 50.00% 70.00%
Result of job satisfaction
surveys
80 percent satisfied 75 percent satisfied
Competence surveys 75.00% 40.00%
2.1 Explain recommendation for overcome weaknesses
Weaknesses are affect the whole organisational performance in terms of service delivery,
activities, functions, policies and strategies. Internal and external factors are also a reason of
weakness of the organisation. For overcome from weaknesses it is very important to analyse all
the internal and external factors. Effective strategies and policies is very important for overcome
from many weaknesses(Cerrato and Piva, 2012). Appropriate business plan is also important for
success of a organisation. Goals and objectives of the enterprise can also achieved by
formulation of policies and strategies. Manager of cited organisation have to formulate a
appropriate strategy so they can provide quality goods and services to customers. Company
faces many obstacles when they plan strategy are mentioned below:
 Miscommunication between managers and subordinates is the one of the barrier for the
cited company.
 Services and products is affected by the less number of qualified and skilled employees.
 One another issue is competitors which produce same kind goods and services and affect
the level of income of the enterprise.
 Lack of financial sources by which they can raised funds for the betterment is reduced.
For effective strategy formulation cited company have to avoid these obstacles which affect
organisational objectives(DonnerW and Escobari, 2010). For this purpose appropriate methods
can be used. There are many techniques which company can used for eliminate weaknesses are
explained below:
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Lack of communication: Appropriate channels of communication is play very important role
when company formulate their strategies. It will helps to effective implementation of these
strategies.
Training and development: Skills and competencies can be enhanced by the conduction of
training and development program in given organisation. This will help to workers learn new
things and provide best and quality food and other services to both domestic as well as foreign
customer.
Estimation of cost: It is crucial for the company to analyse cost of every activity because it
directly affect the level of profit of the cited organisation. Various techniques and methods can
be used by the managers which helps to reduce the cost of production.
Modification in existing policies: This is responsibility of manager to modify their every
existing policies which helps to provide new and tasty variety of food to the customers. It also
include new ideas which helps to attract many clients. Innovation is very important fir the
organisation if they want to sustain for long time in market against various
competitors(Chittithaworn and et.al., 2011).
For remove all the barriers and weaknesses of cited company they can formulae effective
strategies and plan and also focus on their efficient implementation. For this purpose cited
enterprise can also make policies which helps to increase profitability in the market. Some steps
are required for execution of policies and strategies are mentioned below:
 To provide good and quality products and services it is important for cited organisation to
appoint skilled and qualified employees.
 For increases level of income it needs to focuses on execution of powerful strategies.
 Formulate proper channels of communication so employees can transfer their information
easily.
 Arrange various source of funds so it can use for betterment for cited organisation.
2.2 Suggest ways for maintaining existing performance
To maintain exiting performance it is very important that it should be monitor and control
by higher authority time to time. Apart from that it is also important because all future strategies
and planning are based on existing performance. It also involves targets and goals of cited
company. Various techniques and methods can be used for this purpose. Some tools which a
manager can use for full fill this objective are given below:
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Healthy relations: Good and positive relations between various employees and their supervisor
are very important for smooth functioning of the organisation. It is very crucial to maintain
healthy relation with customers which are existing outside the company(Donner and Escobari,
2010). It is important because clients are the key factor for success of the enterprise. If talk about
Zizzi restaurant it is important to give quality services and make good relations with the
customers who are visiting in their restaurant and also respect them so they are attracted by the
environment of the restaurant. Positive relations are also affect the current performance of cited
company.
Creation of health environment: It is very important for every kind of organisation to create and
healthy and risk free environment so that workers can easily discuss any problem to their
supervisor. This technique is helps to increase the motivation and morale of the employees. It is
the responsibility of managers to create open environment in the enterprises, this feature also
effect in decision making process of the company. Because by adopting this feature manager can
allow participate in decision making process to various employees.
Enhancement programmes: These programmes are play very important role in enhance the
skills and competencies of many employees of the organisation. It is the responsibility of
managers to conduct training and development programmes in cited company so that workers
can learn new things(Fassin, Van Rossem and Buelens, 2011). These programs helps to enhance
the skills and compentencies of workers so that they can provide quality products and services to
clients. Enhancement programme also includes various activities by which they can increase the
productivity of the enterprise. Main purpose to conduct this programme is that managers can
easily provide necessary information to their subordinates.
Appraisal programmes: These programmes are conduct to check the performance of a
employee means how can a worker meet their organisational objectives. Appraisal is very
important to boost up morale and motivation of employees at the workplace. It is the
responsibility of manager to conduct appraisal time to time in the organisation so workers are
aware towards the work.
Adaptable to change: According to this technique a company have to adopt necessary changes
according to the changes in environment. For this purpose managers are responsible for adopt
these kind of change which helps to increase productivity of the company and improve
performance of the organisation.
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2.3 Explain recommendation for expansion
For small businesses it is very crucial to expend their activities and functions beyond the
boundaries if they want to increase their profitability level(Forsman, 2011). There are many
internal and external factors which are create obstacles for the small enterprises. For effective
expansion of organisation it is very important to consider micro and macro factors which affect
the operations of company. Some factors are explained below:
Cost: It is the responsibility of manager to identify cost of every activity and prepare budget. It
helps to smooth functioning of every activity in less time period. When small businesses are
want to expend their function it is very important to analyse cost needed and also arrange
financial resources. Any kind of project is depend on funds so it is like work like backbone.
Recent trend: It is very important for cited company to accept recent trends such as different
taste and choices of the customers. Zizzi restaurant have to provide good and tasty food to both
local and foreign customers so they can attract more and more clients and maximize their
earnings.
ANSOFF matrix: For developing new strategies in the company this matrix helps to manager so
they can formulate effective policies and plans(Gronum, Verreynne and Kastelle, 2012). This
matrix involves some different schemes are mentioned below:
Market penetration: According to this scheme a small business can increase its market share
according to existing situations of the market. This helps to expend the activities by increase
share in the market of a company. For this purpose manager have to understand different trends
of market so they can properly understood taste and preferences of the customers and provide
quality goods and services.
Market development: In this technique cited company can increase in the number of their
equipments by which organisation can attract lots of customers. If talk about Zizzi restaurant
they improve their interior, quality of services and provide tasty food according to the taste and
wants to clients, all these helps to develop market of small business enterprise.
Product development: According to this technique a small enterprise can expend their business
activities by innovate their existing products. It is the responsibility of manager to modify their
products or launch new range of goods and services so new customers can attracted. It is also
important that products and services have to be matched with the wants and preferences of the
customers.
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Diversification: According to this technique, the manager is responsible to identify new market
for expansion of business of small scale enterprises(Gunasekaran, Rai and Griffin, 2011).
Market segmentation play important role by which a company can identify different markets and
targets many customers.
Apart from that cited company can also expend their activities by providing tasty food and
comfortable services in Chinese market also.
TASK 3
3.1 Explain business objectives and plans to implementation of proposed changes
Vision, mission and targets are very important to consider when a company want
launching their new product in market. Effective strategy and plans can make only by
considering core objectives and goals of the organisation. If a small business enterprise want to
increase it profits than it is important to introduce new range of products in market so that
customers can attract towards the new goods and services. Effective business plan is very
important for execution of proposed changes. Plan of cited organisation are mentioned below:
Staff vision
 Employees are expect healthy and positive environment when they are working in the
organisation, so it is responsibility of manager to provide comfortable working
environment at work place. Training and development is play crucial role by which workers can learn new things and
enhance their existing qualities and competencies(Gunasekaran, Rai and Griffin, 2011).
Customer vision
 It is important to give quality goods and services to various customers and fir this
purpose manager have to identify different needs and preferences of the clients. Maintain positive and healthy relations are between company and their customers.
Objectives of shareholders
 Main objective of shareholder is that earn more and more profits by Heavey investment. They are focuses on market share of the company because of directly affect the profit
level of the organisation.
Business plan: This includes a plan in which all the goals, target and objectives are mentioned
which a organisation have to be achieved in given time period. It is important to consider by
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employees or cited enterprise when they rendered all the activities. Business plan is based on
various factors such as cost, recent trends, market share, market development and product
development also(Altman, Sabato and Wilson, 2010). These factors are very important when a
company formulate its business plan .
3.2 Explain revision of business plan
It is important for full fill objectives and goals of a company to formulate a business plan
for completing every activity in given time period. Revision of business plan consist inspection
and monitoring activities of plan and assure that objectives are full fill or not in time. Various
steps are including in revision are given below:
Research methodology: Identify information and data is very important for revision business
plan. It is responsibility of manager to collect relevant information and adopt research
methodology by which data can identified(Aremu and Adeyemi, 2011). This includes various
techniques and methods so manager can select any method according to their suitability.
Recruitment and selection: For attain organisational goals and objectives it is important to
appoint skilled and qualified employees because they are key factor for the success of any
organisation. This step is done by human resource manager of the enterprise.
Diversification: According to this step organisation can increase market share by expending their
activities and functions in wide geographical area. For this purpose market segmentation play
very important role because it helps to identify needs and preferences of the customers and also
helps to target large number of people of market.
Measure the performance: This is another important step of revision business plan that is
measuring and monitoring performance of employees. It will help to manager assign the duties
and tasks to various workers. Morale and motivation can also increase by the controlling of
performance so it helps to increase the productivity of the enterprise(Bianchi and et.al., 2010).
Control: This is the last step of revision of plan to control whole activities and functions of the
organisation. It includes taking corrective actions if manager is found any gape between
objectives and its fulfilment.
3.3 Prepare a action plan
If organisation is want to full fill their long term and short term objectives they have to
make a business plan which helps to achieve all the objectives of the enterprise.
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Task Duration
Zizzi restaurant prepare a business plan 10-15 days
Collection of information 15-20 days
Identification of resources 3 days
Analyse of future cost and time period in
which activity is fulfilled.
3-4 days
Appointing of employees 10-12 days
Action date
Ending date
Begins 1st September 2017
30th October
As per above plan it can concluded that it is very important to set a fix time period for every
activity so it helps to achieve short term and long term objectives of small enterprises. Business
plan is helps to reduce the time and cost of production of the company so manager can focuses
on the betterment of the the enterprises activities.
TASK 4
4.1 Impact of changes on business and its personnel
If organisation is want adopt any change than it is obvious that it affect the employees
and business activities of the company. It also includes that internal and external factors is which
directly affect functions of a small business enterprises. Income level of the company is also
affect by the changes which is adopted by the managers of the organisation(Bridge and O'Neill,
2012). Some factors which are affecting the operations of the company are given below:
Finance: According to this factor if any changes in the advancement and technologies are
affecting the businesses in monitory way. To achieve the organisational goals it is important to
utilise these these technologies and advancement effectively.
Workload: It inclu8des that workload of employees can be reduced by adopting new policies and
procedures. Improvement programme can also be conducted to enhance the skills and
competencies of the workers.
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Organisation structure: It is important in company to make feel comfortable I workplace to
employees for this purpose manager has to adopt some changes. It includes changes in the work
profile or employees so that they can learn new things and give full capacity and potential for
full fill organisational objectives.
Apart from that changes is helpful to make brand image of the company in the market and also
helps to provide quality goods and services to the customer(Cerrato and Piva, 2012). So it will
boost up profit level of the organisation.
4.2 Planning for managing the changes
It is important for the company to manage the change for smooth functioning of activities
. For this purpose manager have to prepare a plan which helps to employees to give full
contribution to the company. For this purpose cited enterprise has adopt kotter eight model for
manage the change. Steps are mentioned below:
Create urgency: This is the first step of kotter model which involves identify the need of
changes in the company's policy and procedure which helps to manage the change.
Powerful coalition: According to this step adopt these kind of changes which helps to create
positive and healthy relation between managers and their employees. It helps both employees
and employers by transfer accurate information which is related to change.
Vision for change: This step involves analyse long term and short term goals which is very
important for small enterprise(Chittithaworn and et.al., 2011).
Communicate the vision: It is the responsibility of the manager to communicate every short term
and long term goals to every employee so they can easily achieve their objectives. For this
purpose company have to maintain appropriate channel of communication.
Remove barriers: This step involves eliminate all the issues and barriers which affect
effectiveness of execution of procedure.
Short term wins: In this step manager have to communicate all the short term goals of the
enterprise to every worker and focuses on fulfilment of that objectives.
Build on the change: According to this step managers focuses on the effective execution of the
changes in the procedure.
Anchor reformation in a corporate world: It involves communicate about the changes in
organisational policies and policies to outside the world which are directly affect by the change.
For this purpose manger can use appropriate communication channel.
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4.3 Monitor improvements in the performance of Zizzi restaurant
Adoption of any change is effect to the organisational performance, policies, procedures
and strategies. Monitoring improvements means identify the positive and negative effect of the
changes in the enterprise. Brand image and income of the company also affected by the changes.
Monitoring is very important because it helps to identify needs for other changes is required in
the organisation. Some resources and material also required for this purpose(Donner and
Escobari, 2010). There are various techniques and tools are available by which a company can
start monitoring. These methods are perception, review, connection and diverse assignment also.
various Research methodology can also used by manager for this purpose.
CONCLUSION
As per the report is concluded that small businesses are play important role for
development of economy of the country. For this purpose organisation have to expend their
functions in wide geographical area. It is important for this purpose business have to produce
innovative goods and service to various customers which have to be matched with the taste and
preferences of the clients(Storey, 2016). Report is also includes business plan which is very
important for effective implementation of strategies and policies. This report is also include
business plan of Zizzi restaurant. According to this report performance management strategies is
very important because it provide base of long term and short term objectives of the company.
Report is also includes role of small business enterprise which is very important for development
of the economy of the country. At last report consist various strategies and policies for expend
business in wide geographical area which help to maximization of earning of the organisation.
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REFERENCES
Books and Journals
Altman, E. I., Sabato, G. and Wilson, N., 2010. The value of non-financial information in small
and medium-sized enterprise risk management. The Journal of Credit Risk. 6(2). p.95.
Aremu, M. A. and Adeyemi, S. L., 2011. Small and medium scale enterprises as a survival
strategy for employment generation in Nigeria. Journal of sustainable development. 4(1).
p.200.
Bianchi, M. and et.al., 2010. Enabling open innovation in small‐and medium‐sized enterprises:
how to find alternative applications for your technologies. R&d Management. 40(4).
pp.414-431.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small business.
Palgrave Macmillan.
Cerrato, D. and Piva, M., 2012. The internationalization of small and medium-sized enterprises:
the effect of family management, human capital and foreign ownership. Journal of
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Chittithaworn, C. and et.al., 2011. Factors affecting business success of small & medium
enterprises (SMEs) in Thailand. Asian Social Science. 7(5). p.180.
Donner, J. and Escobari, M. X., 2010. A review of evidence on mobile use by micro and small
enterprises in developing countries. Journal of International Development. 22(5). pp.641-
658.
Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’
perceptions of business ethics and CSR-related concepts. Journal of Business ethics.
98(3). pp.425-453.
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Forsman, H., 2011. Innovation capacity and innovation development in small enterprises. A
comparison between the manufacturing and service sectors. Research Policy. 40(5).
pp.739-750.
Gronum, S., Verreynne, M. L. and Kastelle, T., 2012. The role of networks in small and
medium‐sized enterprise innovation and firm performance. Journal of Small Business
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Gunasekaran, A., Rai, B. K. and Griffin, M., 2011. Resilience and competitiveness of small and
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