Small Business Performance Analysis

This assignment focuses on evaluating the performance of small businesses. Utilize provided academic sources to analyze business, strategy, and owner-manager characteristics that contribute to success or failure. Discuss findings and implications for entrepreneurship education.

Small Business Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Profile of a small business to identify its strength and weakness.........................................1
1.2 Analysis of business using comparative measure.................................................................3
TASK 2............................................................................................................................................4
2.1 Recommendation to overcome weaknesses..........................................................................4
2.2 Ways to maintain existing performance................................................................................5
2.3 New areas for expansion of business....................................................................................6
TASK 3............................................................................................................................................7
3.1 Existing business plans and objectives.................................................................................7
3.2 Revise business plan to incorporate appropriate changes.....................................................9
3.3 Action plan for implement changes....................................................................................10
TASK 4..........................................................................................................................................11
4.1 Impact of change on business and its personnel.................................................................11
4.2 How the changes will be managed in the business.............................................................11
4.3 Improvements in business performance over a specific time period..................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
Books and Journals........................................................................................................................14
.......................................................................................................................................................14

INTRODUCTION
Small business enterprise is more important for the economic growth of the country.
Because operating business is an effective activities which defines new and innovative ideas for
increasing their overall performance in effective manner. One of the main aims of small
business enterprise is to fulfil customers’ needs as per their requirements. It introduces a better
platform in which they give chances to the local people for showing their talent in front of large
audience. This type of business undertakes various market researches to operate their business
activities to capture a large market share in an effective way. In today's modern era, various
changes are rapidly taking place in the business activities and so, that it is important for company
to implement all changes effectively (Harris and Patten, 2014). Mainly, small businesses are
those enterprises which operate by an individual or group of people with new ideas for achieving
overall goals and objectives effectually. They introduce innovative products and services in
society to satisfy needs and improve their living standard. Present report is based on Zizzi
restaurant which is a small business in the UK. This report include various methods and new
areas in which the expand their business in appropriate manner. Along with this it also define
recommendation and monitoring process to reduce the conflict situation in order to attain the
higher success.
TASK 1
1.1 Profile of a small business to identify its strength and weakness
Small business enterprise are essentials for the economic because it defines various
opportunities to the local peoples so that they easily improve their living standard which directly
impact of economic growth. This type of enterprise set their business with new and innovative
ideas in order to provide quality services to their customers in order to get their higher
satisfaction. It also helps in increasing the employee’s skills and knowledge in an appropriate
manner so that they would easily manage all the activities of business. Along with this, it is more
important for company to define their actual status in the market so that they would easily
achieve their target. For this, SWOT analysis is an important tool to identify the strengths,
weaknesses, opportunities and threats (Blackburn, Hart and Wainwright, 2013). According to
this method, manager of Zizzi restaurant takes an effective decision which helps in reducing the
chances of arising problems. For getting competitive advantage, company provides high quality
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food products which help in increasing their profitability level as compared to its competitors. In
this process, SWOT analysis of company helps in determining the competitors at market place.
This analysis defines four elements which are as follows:
Strength Weaknesses
 Tasty and quality food products is one
of the best strengths of company in
which they easily invite large number
of customers towards the products and
services.
 They select impressive promotional
tools to influence their target customers
for buying its products.
 They also use attractive and impressive
interior as well as themes in their
restaurant which get customer’s
attention towards restaurant.
 One of the best strengths of Zizzi
restaurant is that they have skilled and
experienced workers who easily
manage all activities and understand
customers’ requirements in an effective
manner.
 They also provide better and fast
services so that customers provide
positive review.
 Effective communication with the top
level management and lower level
workers is also a positive point as they
easily formulate all information with
the staff members to achieve overall
 One of the biggest weaknesses of Zizzi
restaurant is their inconvenient location
which defines conflict situation for
company.
 They have less skilled employees in
their business activities Because some
time they fails in satisfying customers
which influence success of the
company.
 Number of competitors is also a big
weakness of company that reduces the
chances of getting success in market
place.
 Less capital is also a negative point of
the small business enterprise which can
impact on all the task in negative
manner (Blenker and et. al., 2012).
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goals in appropriate time period.
Opportunities Threats
 They wants to expand their business
activities at international market to
capture the larger market share. For this
they offer their innovative services in
front of their audience (Burrows,
2015).
 They also tries to include experiences
and experts in their food services so
that they bake tasty food for their
customers and get their higher
satisfaction.
 Substitute products and services at
lowest price is one of the big threats for
the company because it reduce the
overall profitability at market place.
 Maintain new and heavy machine is
also a threat for the company.
 One of the big threat for their company
is health conscious customers which
reduce the sale of the restaurant.
1.2 Analysis of business using comparative measure
Compare between Profit & Loss account of Zizzi Restaurant of the year ended 30 April
2017
Particular 2017£ Zizzi 2017 £ Cafe Catayst
Sales 5000 21100
Cost of goods sold 2500 9000
Gross profit 2500 8000
Overheads 600 1800
Net Profit 1900 2500
Balance Sheet as on 30 April 2017
Particular 2017£ Zizzi 2017 £ Cafe Catayst
Fixed assets 1000 2000
Stock 600 5,000
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Debtors 800 3800
Bank 50 4000
Total 1450 12500
Current liabilities
Creditors 600
Bank overdraft 0
Total 600
Current ratio = Current assets/ Current liabilities
2017
12000/60000= 2 times
Interpretation: In the above mentioned profit and loss of the cited company is defined
which show 2017 profit and loss. In this the sale of the company of 2017 is 5000. in this the
profit margin of the 2017 is 1900. It show that the profitability is more than last year which
evaluate the overall performance in positive manner.
On the basis of above discussion balance sheet and profit and loss and balance sheet, it
has been evaluated that Zizzi restaurant has less sales as compare to Cafe Catayst. In this
company needs to make their quality products with the aim of improving their brand image at
market place. This will directly contribute in capturing larger marker share from its rivals.
TASK 2
2.1 Recommendation to overcome weaknesses
In every business organization employees play important role in organizational success
because they preform their duties for achieve their target that directly affect the business
performance. Employees always tries to put their best efforts to compete their task with more
efficiency. They provide new and best ideas for implementing their business activities in order to
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reduce the chances of arising the conflicts. For this it is more important for the company to hire
skilled and experience employees who have capabilities and abilities to use advance technologies
for achieve competitive market in appropriate manner. Evaluating the weakness of the business
is more important for manager so that they analysis external market which helps in identifying
all the changes. Because in today's market changes are rapidly take place in business
organization. For this it is more important for the company to define effective process in which
they easily identify their weakness in appropriate manner. It include customers needs, market
trends which directly affect the business performance in positive and negative manner. For this
Zizzi restaurant define various ways procedures which helps in reducing the weakness so that
they easily capture large market share fro its rivals (Down, 2010). All these ways are as follows:
 In this process the employees update their methods and process on daily basis for
reducing their weakness so that they perform their work effective and get positive results
in appropriate manner. This process helps in offering quality products to their customers
and also invite large number of customers toward their services.
 For increase the profitability level, Zizzi restaurant set their attractive interiors in which
they use impressive themes and also modify their internal interior according to the
modern and recent trends which influence the customers to buy its services in order to
increase their profitability level in appropriate time period.
 For reducing the weakness it is more important for the cited restaurant to provide better
training and development program to their staff members so that they easily handle every
type of clients and understand their demand about the products and services (Ebert and et.
al. 2014). They also guide their employees to how to attain the customers and how to
behave with the clients which aid in in increasing the satisfaction level of the customers.
This will helps them to improve their skills and knowledge about the services.
 It is important for the company to set their specific rules and regulation which have to
follow by the employees so that they easily perform their task in effective manner and get
better results.
 In today's modern market it is more important for the Zizzi restaurant to analysis all the
external market factors like market trends, customers demand, competition. All these
directly affect the overall performance of the company. This process helps in determining
the current market status and competitors strategies so that they easily formulate their
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activities for achieving the better outcomes in better manner. With the help of this they
use effective methods and process as compare to their competitors so that they easily
capture larger market share.
 Along with this, set healthy and positive working environment is more important for the
company in which employees put their best efforts to complete their task effectively.
Surrounding of the working place is also impact on employees performance so this it is
important to maintain the healthy working environment.
2.2 Ways to maintain existing performance
Every business wants to expand their organizational activities in order to attain higher
success (Fassin, Van Rossem and Buelens, 2011). So that it is more important for the company
to set their target and implement their activities accordingly which aid in getting all the goals in
less time period. For this they needs to provide better training and development programs to their
employees so that they perform their task in effective manner and also understand the effective
way to done their task with more efficiency (Forsman and Temel, 2011). In organizational
context, having better communication skills is more important for the employees so that they
easily communicate with their customers and understand their demand towards the products. For
improve overall performance of the workers it is main duty of the manager to monitor all the
working activities of the employees after that provide training for improve their weakness in
effective manner.
Along with this, Zizzi restaurant also focus to working performance of the employees
because it is important to understand their attitude in front of the customers which directly
impact on the overall performance. If employees fails in handling their clients then it is important
responsibility of the manager to provide better training so that they understand the way of
attending their customers. Every business wants to increase their sale volume by inviting large
number of customers toward their activities. In this context, Zizzi restaurant changes their theme
and use impressive interior so that they easily influence their customers to buy its products and
services in appropriative manner. In this the manager of the company also evaluate their
company status in market place because it helps in gathering more revenue fro its customers by
delivering quality products. Provide attractive and offers is one of the best methods to inviting
large number of customers which aid in increasing the sale and also contribute in improving the
positive brand image at market place. In this the management system is also important for the
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company to manage and control all the operational activities in systematic manner which helps in
analysing the actual demand of the customers toward the products and services so that they
deliver their quality products accordingly and get their higher satisfaction.
2.3 New areas for expansion of business
Every business wants to expand their operations activities at various level which aid in
increasing the overall profitability of the company in appropriate manner. In this the best
recommendation for the firm to expansion in several areas is to modify as well as update their
existing methods. So that they easily implement all the changes in effective manner. This
process helps in completing all the activities in appropriate manner (Goss, 2015). For this they
conduct an effective survey in which they analysis the external market place so that they easily
attained competitive advantage in appropriate manner. With the help of this they easily update
their existing methods and themes in their restaurant and also improve their services system
which aid in attraction large number of customers in effective way.
Along with this, Zizzi restaurant have better opportunities to expand their business
activities in various location in which they can be set their hotel, bar services and night clubs
which improve the numbeer of clients with the company to use their services and also satisfy
their needs. At the time of expansion of the business it also gather large number of profitability
from external market because they introduce their innovative and quality products ion front of
their audience. On the other hand another best recommendation for the company to expand their
services by delivering as well as providing impressive package so that clients easily attract by
their products and use it effectively (Gronum, Verreynne and Kastelle, 2012). It directly affect
the company profitability. In today's modern market trends every customers wants new and
innovative things for their cited company provide them accordingly and also renovate their
existing setup of the restaurant which influence customers curiosity about the firm and use their
services in large number.
All these aspect affect the working process of the company as well as company because
in their all the employees communicate with their clients effectively so that they understand
about all the demands and then they offer them accordingly. In this the company also update
their internal process in which they set their policies and strategies which followed by the
employees at the time of performing their duties. It is important for the company to set effective
and best rules and regulation which helps in improving the overall performance of enterprise.
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With the help of these employees easily encourage their morale and improve their productivity
level which increase the brand image at market place. One of the best advantage of following all
the rules and regulation cited restaurant easily achieve their target and objectives in minimum
time period.
TASK 3
3.1 Existing business plans and objectives
Preparing a business plan is one of the important task for every company because it helps
in achieving target of the company in appropriate time period. It is an written document which
include all the activities which perform in the business for a particular purpose (Jones and
Iredale, 2010). Before operating any kind of activities in business, it is more important for
manager of the company to prepare an effective business plan and also mention the specific task
which helps in achieving the success in effective manner. Setting mission and vision is one of the
important task of the company to get competitive advantage in market. So that it is essential for
the company to focus on their target and set their activities accordingly in order to achieve their
future targets appropriately. Along with this, every employees and manager should be aware
from their organizational mission and vision so that they put their best efforts for competing all
the task in order to achieve long term and short term goals. Zizzi restaurant always focus on their
SMART target in which they use innovative and advanced technologies in their production
process in order to deliver tasty foods to their customers as per requirements. In this process
organization also undertake various researches and conduct effective survey to determine the
current market trends and customers preferences so that they offer accordingly and get their
higher satisfaction. With the helps of these company easily take best decision for offering the
better facilities to their clients. In this survey is one of the best method to understand about all
the information about the market and also detention the actual status of the company at external
surroundings. In this various activities of the business plan is mentioned in below:
Vision for staff
 One of their important vision of the company for their staff is to provide better facilities
top them so that they perform their task effectively and also feel that they are more
important for the company.
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 Better training and development program is also important for the employees to improve
their productivity. With the helps of this all the workers are perform their task effectively
and also improve their skills in effective manner.
 Introduce as well as provide effective opportunities to their employees which aid in
importuning the quality as well as capability of the workers effectively so that they accept
all the challenges to get competitive advantage in appropriate manner.
Client vision
 Established better mutual understanding between all the employees because it is more
important for the company to make a team in which all the employees comes together for
a common goals (Malhotra and Temponi, 2010). For this all are perform as a team and
put their efforts to attain the success. This will helps in building the better relationship
and also set positive working environment in organization.
 Satisfy customers needs as per their requirements is one of the important task for the
company so that they use effective process in which they easily deliver quality services to
their clients and get their higher satisfaction (Ratten, 2014).
Shareholder's objectives
 Shareholders play important role in the business organization to increase the profitability
level of the company at market place. So that maintain better relationship with customers,
suppliers and investors in important to develop their growth at competitive market place.
 Maintain all the financial records of the company is more important for the manager
because it helps in analysing the actual performance of the customers. With the helps of
comparing all the data of the company aid in evaluating the current position of enterprise
at market place.
Business plan
It is a written document in which manager of the company include various goals and
objectives which is achieved by the employees in their organization. It also define various rules
and regulation, policies, financial status and many more which helps in analysing the current
status of the company at market place. Effective business plan define the organizational image
and also helps in achieving the competitive advantage in effective manner.
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3.2 Revise business plan to incorporate appropriate changes
Business plan is an important formal document which helps in developing the overall
growth of the company. It include all the information of all the process which perform in the
company for a particular purpose. In this business various changes take place like marketing
trends and customers taste are continuously changes so that it is more important for manager to
implement it effectively. For this they conduct the market survey in which they determine the
current market status and all the information about the external market. All these are implement
in the organization to attain the particular task. Zizzi restaurant also wants to expand their
business so that they also define the plan in which they undertake various researches to
identifying the customers needs. For this they offer quality services according to their
requirements in order to get their higher satisfaction (Business Planning, 2017). In this it is
important for the manager to do all the changes in their business plan so that they easily capture
large market share. Renovate all the themes and set up of the restaurant is also effective for
inviting the large number of customers in order to satisfy their needs. Therefore a revised
business plan define all the implantation of the necessary changes which have to implement in
the business so that they attain higher success at market place.
3.3 Action plan for implement changes
Action plan is an important process which show the better action in order to achieve its
goals and objectives in appropriate time period (Schaper and et. al., 2014). In this there are some
stages of the action plane which helps in implementing in organizational activities in effective
manner are as follows:
Task Explanation Time duration
Set final goals It it important to set the
effective goals and objectives
which should be clear.
20- 25 days
Make a list for goals After that make an effective
list in which all the goals are
mentioned
5 days
Allocate resources In this manager of the
company allocate all the
7 days
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resources to their workers as
per their abilities.
Determine the issue In this manager have to define
the issue which is faced by the
employees at workplace.
1 month
Set method for monitoring For resolving the conflicts
manager set some effective
strategies to monitor all the
performance.
10 days
Implement plan This stage define all the
process which helps in
implementing all the activities
of the business.
2 days
Evaluation It is last step of the action plan
in which manager evaluate the
final results in effective
manner.
15- 20 days
TASK 4
4.1 Impact of change on business and its personnel
Every business affected by various factors which are uncontrollable by the company. In
the present market, customers needs and taste are rapidly changed which affect the company in
positive and negative manner. So that it is important for the company to analysis all the aspects
effectively. Along with this some other factors like legal, political and technological also impact
on the organizational performance. The main cause of these factors affect the business and its
personal in several ways. Social factors: Norms, culture, attitude, life style of the customers all are the part of
social factors which affect the company sale. So that it is important for the company to
understand all these factors effectively and get better success at market place.
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 Legal factors: It define various legislation, policies and regulation which must be follow
by the company to operate their all activities in ethical manner. In this all these aid in
managing and controlling all the legal activities in effective manner.
 Economical: Economic of the country is based on the market and it is continuously
changed. So that it is unstable by nature. It define inflection rate, taxation rate and many
more. All these set by the government authority. So that it is important for the company
to analysis all these element before investing the fund in various market. All these affect
the organizational performance (Schaper and et. al., 2014). So that it is important duty to
analysis all these elements are effectively.
4.2 How the changes will be managed in the business
Every business define their new and innovative things at the marketplace in order to get
higher satisfaction of the customers. So that it is important for the company to undertake various
research for identifying current market trends so that they make quality products to their
customers as per their requirements. In this Zizzi restaurant is small business which provide food
services to their customers. In this they define management plan for mange and control al the
changes in effective manner. There are some effective elements which helps in managing and
controlling all the changes in appropriate manner which are as follows:
 Identify the competition between same line of restaurants.
 Understand the consumers buying behaviours.
 Determine the customers needs and demand toward the products.
 Define the actual economic situation in effective manner.
All these elements are effective so that it is more important for the company to manage as
well as control effectively. Proper management of all these elements helps in increasing the
profitability level and improve the positive brand image at market place.
4.3 Improvements in business performance over a specific time period
Monitoring is one of the important process of evaluating the actual performance of the
company. For this manager of the Zizzi restaurant set a time scale in which they monitor their
actual performance. With the help of this they take effective decision as well as action for the
conflict situation so that they easily eliminate it and also reduce the chances of arising in future
(Fassin, Van Rossem, and Buelens, 2011). It define goals, time period and review of the
company which effectively discussed in the below in effective way:
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Goals Time period Review
Expansion of the business in
new areas
End of 2017 They wants to expand their
business in hotel, bar, night
clubs and many more.
Become a number one
company in local location.
In 2017 Zizzi restaurant wants to
increase their brand image at
local areas to fulfil local
customers needs.
Services By 2017 The main focus of the
company is to provide quality
services at affordable price so
that large number of customers
are attracted towards the
products.
CONCLUSION
From the above mentioned report, it can be concluded that small business enterprises are
very important which help in increasing the living standard of people by providing various
employment opportunities. It directly put impact on the economic growth in a positive manner. It
defines new and innovative ideas to set their targets effectually. In this strength and weakness of
the Zizzi restaurant is also summarised which evaluating the actual performance of the company
in appropriate manner. In this various areas also define bathe company where they expand their
business in effective manner. Company also implement the plan in which they define all the
changes that take place in organizational activities rapidly. This project also summarised all the
tools and techniques which aid in reducing the weakness of the enterprise in order to increase
overall profitability level of the company.
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REFERENCES
Books and Journals
A. Harris, M. and P. Patten, K., 2014. Mobile device security considerations for small-and
medium-sized enterprise business mobility. Information Management & Computer
Security. 22(1). pp.97-114.
Blackburn, R. A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20(1). pp.8-27.
Blenker, P. and et. al. 2012. Entrepreneurship as everyday practice: towards a personalized
pedagogy of enterprise education. Industry and Higher Education. 26(6). pp.417-430.
Burrows, R. ed., 2015. Deciphering the Enterprise Culture (Routledge Revivals):
Entrepreneurship, Petty Capitalism and the Restructuring of Britain. Routledge.
Carraher, S. M. and Paridon, T. J., 2015. Entrepreneurship journal rankings across the discipline.
Journal of Small Business Strategy. 19(2). pp.89-98.
Down, S., 2010. Enterprise, entrepreneurship and small business. Sage.
Ebert, R. J. and et. al. 2014. Business essentials. Pearson Education Canada.
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.
Forsman, H. and Temel, S., 2011. Innovation and business performance in small enterprises: an
enterprise-level analysis. International Journal of Innovation Management. 15(03).
pp.641-665.
Goss, D., 2015. Small Business and Society (Routledge Revivals). Routledge.
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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
Management. 50(2). pp.257-282.
Jones, B. and Iredale, N., 2010. Enterprise education as pedagogy. Education+ training. 52(1).
pp.7-19.
Malhotra, R. and Temponi, C., 2010. Critical decisions for ERP integration: Small business
issues. International Journal of Information Management. 30(1). pp.28-37.
Ratten, V., 2014. Future research directions for collective entrepreneurship in developing
countries: a small and medium-sized enterprise perspective. International Journal of
Entrepreneurship and Small Business. 22(2). pp.266-274.
Schaper, M. T. and et. al. 2014. Entrepreneurship and small business.
Online
Business Planning, 2017. [Online]. Available through:<https://businesstown.com/small-
business-start/business-planning/>. [Accessed on 7th September 2017]
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