Factors Affecting Small Business Success

The assignment examines various research papers on small businesses in developing countries, focusing on factors such as innovation capacity, resilience, and competitiveness. It also discusses business ethics, CSR-related concepts, and environmental sustainability in SMEs. The document provides a comprehensive overview of the literature on small business management, including studies on micro and small enterprises, manufacturing and service sectors, and entrepreneurship cultures.

Small Business Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1.1 Profile of business and its weaknesses & strengths..............................................................1
1.2 Business analysis with the help of comparative measures....................................................4
TASK 2............................................................................................................................................6
2.1 Recommendations to overcome weakness............................................................................6
2.2 Ways through which existing performance can be strengthened and maintained................6
2.3 Recommendation for expansion of business in new areas....................................................7
TASK 3 ..........................................................................................................................................8
3.1 Assessment of plans and business objectives........................................................................8
3.2 Revision of business plan to make changes........................................................................10
3.3 Action plan for executing changes......................................................................................11
TASK 4..........................................................................................................................................12
4.1 Report on the impact of proposed changes on business......................................................12
4.2 Plan how the changes will be managed in the business......................................................13
4.3 Monitor improvements in the performance of the business over a given timescale...........14
CONCLUSION..............................................................................................................................14
REFERENCES .............................................................................................................................15

INTRODUCTION
Small business is being termed as the primary supporting system for the economy of UK
and is also defined as the main contributor which assist in driving growth, developing effective
opportunities of employment and starting of new markets. Playing a role of seedbeds for
creation, small business enterprise's encourage competition in market by providing original ideas
regarding business thereby, stimulating the status quo. Business organisation which are small are
very valuable for the United Kingdom and represents around 99.9% of the business and therefore
the government also encourage them to make proper growth (Altman, Sabato and Wilson, 2010).
The present report is based on the topic of small business enterprise which will discuss various
concepts in relation with the micro trades. In order to understand the impact as well as
importance of SBE, The Kitchen is being considered as the case in the report. In this report
different ways with the help of which performance can be maintained, distinct and new area
where business can make expansion and also the plan and objectives of the business will be
discussed in this report.
TASK 1
1.1 Profile of business and its weaknesses & strengths
Overview
The Kitchen was got started in the year 2006 in Edinburgh, UK. Its main belief is provide
nature on the guests plate and it is considered as the passion visualized by Chef Tom Kithin who
make establishment of the restaurant with the partnership of Michaela Kitchin. They provides
modern cuisine of British which is inspired by the French cooking by sourcing some finest as
well as freshest local produce. They make operations in 78, Commercial Quay, Leith, Edinburgh.
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The Kitchen is being established to give relaxed and warm atmosphere to the visitors by
keeping Scottish attribute which can be viewed all over its texture and tones. They provide non-
intrusive and welcoming service to guests, which is considered as their strong point of the
ultimate experience of dining.
Team: Maire d' Sylvain and Philippe Nublat (Beverage and Food Director), Michaela &
Tom Kitchen (Owners)
Business nature: Dining restaurant
Mission: The Kitchen's mission is its belief message “ From nature to the plate” i.e.
delivering finest and fresh meal which is being baked with topical farm produce. They believe in
improving experience of diner's with the combination of non-intrusive delivery, cosy ambience
and taste.
Services and products: The Kitchen's provide guests with large variety of drinks, food
and online products of shopping like recipe book, meal and gift vouchers.
Opening times: Tuesday-Thursday: 12:15 PM- 2:30 PM, 6:30 PM-10:00 PM
Fri- Saturday: 12:15 PM- 2:30 PM, 6:30 PM-10:30 PM
closed on Sunday and Monday
Menu
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Payment Method: E-wallets, Cash and Credit
Contact: The Kitchen, 78 Commercial Quay, Leith, Edinburgh EH6 6LX
Telephone: [phone], email: [e-mail]
Strengths:
The Kitchin serves good food quality baked with finest as well as fresh local farm being
developed in relaxed and warm atmosphere. The ingredients are also of standard quality and are
being supplied by the general suppliers daily in the kitchen. Fish and meat are also sourced and
entire filleting and butchering are done inside (Aremu and Adeyemi, 2011). This is considered as
the one of the main strength of The Kitchin's baked British food. Dining area is made of original
wood and stones which provide sense of cosiness and intimacy. They also have strong
relationship with the suppliers who give seasonable vegetables at reasonable reates.
Weaknesses:
Some of the weaknesses of The Kitchin is their opening time, it is very less and they
close early also. This give restriction to such customers who wants late night dining because of
work. Also they don't operate on Sunday and Monday, means customers will be limited who
wants to visit there on Sundays. Restaurant also have very less staff means possibility to serve
more customer and to add more cuisines will be limited. Finally there is limited technology used
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Source 1: https://thekitchin.com/menus/

in the process of billing and ordering which is considered as weakness as guests prefer online
medium (Bianchi and et.al., 2010).
1.2 Business analysis with the help of comparative measures
The restaurants performance could be calculated or measured with the assistance of
different bases like cost indicators, ROI, financial profits, sales, employee retention, cost
indicators, satisfaction of customers, timely supply procurements. In present, The Kitchin is
being given award with distinct accolades like Five AA Rosettes, Best UK restaurant, Michelin
Star etc. These are considered as the indicators regarding offering of good food quality, services
and customer satisfaction. Financial profit of the company can be discussed as:
Table 1: Profitability comparison in the year 2011-15 for The Kitchin and Wedgewood
restaurant
The Kitchin
£
Wedgewood
£
Year PBT PAT PBT PAT
2015 97280 90600 121827 115990
2014 82545 70470 112005 94580
2013 64865 57650 85810 74670
2012 47730 42890 68000 60540
2011 40867 32570 45150 39870
From the table 1, it could be interpreted that the profit of The Kitchin is increasing in the
years 2011-15. Profit After Tax (PAT) also presents growing trend termed as good indicator of
performance to make decision on revenue generation after deducting taxes and expenses. In
comparison profit which is attained is low if being compared to Wedgewood, so aim of The
Kitchin is to make high profits.
Table 2: Sales among the year 2011-15
The Kitchin
£
Wedgewood
£
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Year
2015 270000 395350
2014 276590 343000
2013 232470 292610
2012 202500 253500
2011 170130 197980
From the table 2 it is analysed that The Kitchin and Wedgewood sales has made
increment but if compared then Wedgewood has shown high growth in sales till the year 2014.
There is a fall of 2.38% in sales in the year 2015 whereas there is growth of 15% for
wedgewood.
Apart from the financial basis, Non-financial base involves brand awareness which
indicates service and products popularity between customers. This is described as follows:
Table 3: Brand Awareness Comparison
Year
Ending 2015
The Kitchin Wedgewood
Loyalty of customer 4 3
Awareness of brand 3 5
Perceived quality 7 7
Trademarks and patents 5 7
Scale: 1=Lowest; 7=Highest
It has been analysed that The Kitchin carries good score in terms of loyalty of customer
than Wedgewood. On the other hand, in trademarks, patents and brand awareness Wedgewood is
leading.
Table 4: Perception of customer regarding service and food quality
Year
Ending 2015
The Kitchin Wedgewood
Is it of great value 5 7
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Can it give good performance 5 6
How it make comparison with
competitor offering
4 5
From the comparison, it is concluded that in terms of the performance and money,
Wedgewood is being ranked higher than The Kitchin.
TASK 2
2.1 Recommendations to overcome weakness
Several recommendations which can be provided to The Kitchin so as to overcome
existing weaknesses are as follows:
 The major significant weakness of The Kitchin is less staff. So as to increase
competitiveness, they must hire more personnel. They could make choice of the contract
hiring as it will support in retaining selected trained individuals who can match
expectations and standards. They should also make planning of person specification and
job description by providing guidelines regarding working hours and responsibilities
(Blackburn, Hart and Wainwright, 2013).
 The Kitchin must extend working days and opening hours. Especially during weekends
they must work as many customer prefer to dine on weekends. This will increase their
profit and sales.
 The Kitchin serve their customer with British Menu which must be altered as per demand
of guests. Nowadays many customer prefer variety in food so restaurant can make use it
to satisfy and attract more guests.
 They can also maximise technology integration in billing and booking process by
accepting online payments and credit cards, this will increase convenience and access of
customers who wants mobility and quick payment methods.
2.2 Ways through which existing performance can be strengthened and maintained
The Kitchin can strengthened and maintain existing strengths in order to maintain
performance of business. The first step regarding this is to modify business as per the changes in
environment, customer preference and demand in market (Bridge and O'Neill, 2012). As today,
consumers are hooked and informed highly by making use of digital platforms such as mobile
apps, social media and internet, so restaurant must make use of digital promotion and utilization
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in the channel of marketing and process of making payments and ordering foods. They can also
make improvements in decision making and business strategies by making inclusion of credit
cards, e-wallets.
Mentioned organisation can also keep check on strategies of competitor so as to make
improvement in the decision of business. As like their competitors they can elaborate menus and
can add more cuisine in order to make attraction of more customer who wants to make
experiment in the tastes. Analysis of competitor's services and products must be done so as to
include more uniqueness and differentiation in their restaurant.
Further, The Kitchin must widely make promotion of their quality strengths in regards
with friendly chef and staff, authentic taste, warmer dealing with customer so as to make
promotion of uniqueness by making appeal to customer on regular basis with tricky offers and
catchy promotions. This will give strengths to their USP (Burns, 2010). Apart from this, selected
suppliers and the staff of The Kitchin are considered as their main strengths, so they always
make relationship with them by involving them in the process of decision making.
2.3 Recommendation for expansion of business in new areas
There are various recommendations with the help of which The Kitchin will make
improvements in the expansion of their business, these can be as follows:
 There should be an appropriate business plan regarding strategic development and
expansion so that plans of growth, resources and objectives of business can make
effective alignment. This will also give support to make decision on budget planning,
timescales and priorities under SMART objectives.
 They should also make increment in their staff so as to make planning of expansion
avenues and achieve requirements of business for growth.
 They are required to make expansion in their menus and cuisine options on plate so as to
make appeal to desired consumers and also increase sales (Cerrato and Piva, 2012). Also
they should optimise and integrate process of business as per change in times where
guests make preference of card payments and e-wallets over payment of cash. They must
also open their restaurant on weekend for large hours so as to have more sales.
 The Kitchin can also maximise their relationship and connection with the consumers by
making increase in social networking. For instance, customers can be encouraged by
them to ask problems related with ingredients and foods utilized in preparation which can
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be solved by the food team. The fast process of responding and questioning will improve
engagement of customer and will also support in identifying developing requirements.
This opportunity related with consideration will appeal interest of customer and increase
value of brand.
 In order to make increment in visibility, they can continuously make addition of
newsletter or promotion to the customers which will pull their interest. Segregation
marketing with several channels of communication will extend profitability, retention and
base of customer (Chittithaworn and et.al., 2011).
TASK 3
3.1 Assessment of plans and business objectives
Aims and objectives of marketing: The Kitchin restaurant, which is being located in the
Edinburgh, Scotland, UK is in requirement of making expansion of its customer base to 10% by
the year 2017. Therefore, the plan of business will give light on the estimation regarding the
amount of consumers they wants to increase. Moreover, another key intent the desired plan must
make serving is to cover the loss of the amount 3.42% and increase its margin of profit so as to
face the aggressive competition in market. The restaurant must also provide serious efforts in
making effective utilization of online marketing tools by the assistance of social media tools such
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as Mail Chimp, Piktochart, Place It, Facebook page insights and many others and give more user
friendly mobile application and website in six months (Donner and Escobari, 2010).
Operational Information
Location of restaurant: The Kitchin restaurant is having location in Leith, Edinburgh.
Local farmers, local grocery stores and shop of meat are considered as the key suppliers of
restaurant who make supply of seasonal vegetables and fruits directly in kitchen.
Financial information
In the year 2013, there has been a loss of 3.42% which is suffered by restaurant contempt
of minimal increase in the generation of revenue in between 2009-12.
Summary of objectives of business
The Kitchin has several SMART objectives which are being defined as follows:
Specific Measurable Attainable Realistic Timely
Increasing service
of delivery by
minimising the
customer's
waiting time for
receiving food
which is provided
on table.
Measurement of
progress by
customer call
backs and time
quotes for having
check on
satisfaction
(Fassin, Van
Rossem and
Buelens, 2011).
By making place
of delivery within
reach of waiters
serving tables.
There is a
practical view
because by
minimising time
of waiting, more
orders can be
received.
The restaurant
requires to start
process instantly
and there will be
a requirements of
2 weeks for
training staff.
Developing
services of
takeaway by
making sure that
there is no
compromise on
quantity and
quality of food.
Designing of
grading chart of
1-10 scale and
involve check off
list to follow for
managers.
Setting of
attainable
standards can be
achieved and
controlled as
manager submit
and prepare
information.
Setting practical
time in which
delivery of food
can be done.
Project should get
started at earliest
so as to end it in
within 3-4 weeks.
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Submission and
preparation of
sales report in
same format.
Receiving
feedback of
customer
regrading
deliveries for
increasing
performance.
Setting back up
system and
customer call
which will
include comment
sheet for
gathering
response of
customer.
Training staff,
designing system
and calculating
feedback.
Goals which can
be achieved with
prioritizing and
consistency.
The goals result is
measured in 3
months.
Designing of
efficient and
professional
system of
catering .
Increasing sales
to £4000 per day
in 3 months.
Receiving catered
customer
response.
Such goals can be
fulfilled by
making
expansion of
techniques of
marketing.
Objectives which
can be attained by
follow up
(Forsman, 2011).
Analysis of SMART Objectives
 The Kitchin is having various objectives which are focused and specific regarding goals
and aims to make proper strategies.
 There are quantitative goals which restaurant aims to measure by customer response and
sales performance.
 The defined goals can be achieved by clearly describing responsibilities of job to
employees.
 The plan's application will be effective only if results can meet expectations.
 Suggestion is being given to expand business by starting more stores and also by
satisfying factor of theory means time bound (Gronum, Verreynne and Kastelle, 2012).
 It is suggested that in a year, restaurant will start more outlets which is rigid.
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3.2 Revision of business plan to make changes
Preparation of the business plan without reviewing it on regular basis is same as driving
cars without having knowledge of route. For making changes and developing business, it is very
important to have business understanding. Moreover, it is very significant to make review of
results of measures which are used for achieving goals with action plan and analysing entire
business performance. The long term strategies of The Kitchin are being built by taking short
steps. If trade is not satisfying customers then necessary alterations can be done which is
dependent on outcomes achieved.
In niche marketing strategy case, The Kitchin is not giving better results, It is not
important or Must do function of modifying marketing strategy. The restaurant must understand
right time to make revision of plan which will be in regards with the change in market conditions
and business environment and change in behaviour of customer, for instance, for making
identification of the areas where mentioned enterprise is doing wrong, they can conduct SWOT
and make evaluation if various trade pre assumptions are altered, like continuous review
regarding forecasting may have change in beliefs in business (Gunasekaran, Rai and Griffin,
2011).
For making change in business plan, restaurant can withdraw few objectives or can
change them. Moreover, they requires to undergo several measures while executing and
evaluating strategies. By having main changes, restaurant must predict expected loss because bad
investments will give more amount of loss. The proprietor must make sure that appropriate
amount of funds are there for making changes. Observation of the business environment along
with analysis of break even point for determining future and current performance should also be
done by owners. The Kitchen must incorporate changes without bothering employees as well as
customers.
3.3 Action plan for executing changes
As mention in previous part regarding incorporation are explained properly. In relation
to make the Kitchin more effective it required a perfect planning in order to achieve long term
aims and objectives. Moreover because of changes in internal and external factor of environment
the action plan can be varies so to transform according to the situation kitchen need to change
accordingly (Mshenga and et.al., 2010). It is required that action plan should be match with
ongoing procedure and daily records. Some of the proposed correction are explained underneath:
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 Starting of a new outlet in location of united kingdom.
 Increase the list of items those are included in the menu.
 Modification in dining areas and make it more comfortable in order to feel more
attractive so that more customers can come to enjoy their food.
 At the time weakened a special table is being provided with low cost for family dinner on
Sunday and holiday.
There are various measure to be implemented before making any action plan. Like for
example if the kitchen is serving more than 2295 pounds in a month should increase the sale
profit by 15% in order to execute the plan. The total time require to complete all this procedures
are estimated around 6 months. The kitchen will be require a back support arrangement before
opening new outlet in UK. It will help to create perfect image in marketplace through increase
there profit margin. On the other hand it will also require a promotional plan that should be
implemented within the time allotted (Ritchie, 2015). A well designed portfolio is be made in
order to judge their performance that would help to forecasting and analysing mission and vision
in the market. The main objective in all that process the setting timing that will be require to the
staff those are associated in that process should have enough time to prepare themselves to
accept certain changes. The owner of the kitchen should guide them in relation to commit less
mistake during their work.
TASK 4
4.1 Report on the impact of proposed changes on business
Change is a part of business which is consider as the essential element. For every
business, environment is not stable and get changed according to requirement of time. Changes
are sometimes helpful for the growth and development of a business as well as increase their
profit generation capacity. The kitchen wants to implement some new and more changes in
business in which they are going to add some more and new employees in business as well as
added some more payment methods in a business. As this is helpful for them in development and
growth so that they can sustain at market for long term. For reference restaurant it is necessary
for them to implement appropriate financial plan for the business through which all of their
targets get ascertain in minimum time period (Schaper and et.al 2014).
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Add some more employees: As per the report, restaurant required some more number of
employees for their business which require huge amount to get invested. As they lead to require
to adopt adequate recruitment strategy through which they can select and hire appropriate
employees which lead to aid them in attain targets.
Organisational structure: As when the changes took place, structure of a company also
lead to get changed. This will aid them in recreating their whole policies.
Acquiring value added services: Company have to introduce some new and more
innovative method for payment according to modern world. Moreover add some more and new
values in their work through which they can maximise their sales by attract new services.
These proposed changes will leave a positive impact on business that will going to
implement more effectiveness in business and escalate the profit generation capacity of The
Kitchen. This support them in dealing with any business situation which is not appropriate at all
(Storey, 2016).
4.2 Plan how the changes will be managed in the business
Changes have to managed in an appropriate manner so that chances of sustainability get
rises. Appropriate managed modification in business will lead to aid in generate more revenue
for business as well as support a business in conducting all operations in an effective manner.
For this several points have to get consider:
 Prioritising modifications: Company have to set their such changes first which really
require to get modified. For this, management have to identify the sources through which
they can arrange fund and investors for their operations. The Kitchen have to taek this
factor on serious base without disturbing any fact.
 Take opinion: The Kitchen first have to take advice from all the experts of their business
and then take any appropriate step for changes in which they are going to deal. As for
this, restaurant have to take view from banks for such area which lead to get invested in a
well defined manner (Terziovski, 2010).
 Test changes: Not might all modification are appropriate for business some of them are
harmful for an organisation. For this, business have to set a trial period in which they
have to test all the changes which are going to take place in a business. The Kitchen have
to set a time period for test them say for 6 months. This aid them in managing all task
effectively.
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 Taking user feedback: Take feedback from user for further changes in a business plan. As
this is helpful for them in managing the task effectively. The Kitchen have to take
feedback from all of their users through which they can work in more adequate manner.
Management have to make a comparison from their past performance so that they can measure
that how such changes are appropriate for them in betterment and growth.
4.3 Monitor improvements in the performance of the business over a given timescale
The Kitchen should have to conduct an analysis through which they have to measure all
the pros and cons of their entire plan. A systematic monitoring of plan is must so that appropriate
improvement for that plan can be done. Owner or manager have to keep a look on the activities
which are performing so that they can measure the improvements which are associated with
business. Confiding the action plan, it will lead to assess the business in which they are dealing
as per their current operations in which the solely focus is on all the activities are getting done
step by step or not (Williams and Schaefer, 2013).
At this stage, management have to measure the actual figures of business of present
scenario with the future aspect b y considering the past performance also. Maintaining a trail of
all the operations which are taking place, authority have a option to change them according to
demand and requirement of business. This support them in knowing that all operations are taking
place in right direction or not. As this is helpful for them in performing whole action plan in an
appropriate manner. The Kitchen have to frame some number of objectives and then analyse the
environment in which business activities are concerning. After that, a plan and strategy is must
through which business operation get done. After this, monitoring of plan have to get done in
which all deviations which are associated with that have to be removed. A successful business
plan is one in which a appropriate time scale for a business is measure in which all operations
have to get done. This increase chances of sustainability of project (ZorteaJohnston, Darroch and
Matear, 2012).
CONCLUSION
From the presented report, conclusion can be made that with the existence of modern
scenario of business, the attempts which are being given by small business enterprise are giving
huge importance on assisting commercial evolution and prosperity of UK. Although, such
business enterprise which are small may not provide much revenue while making comparison
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with large organisations. Micro businesses are rising as main contributors in giving strengths to
several local economies. They give various new business opportunities, by serving pillars of
large companies of UK.
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Gronum, S., Verreynne, M. L. and Kastelle, T., 2012. The role of networks in small and
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Online
The Kitchin Menus. 2017. [Online]. Available through:<https://thekitchin.com/menus/>.
[Accessed on 11th August 2017].
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