Small Business Enterprise

SMALL BUSINESS
ENTERPRISES

Contents
INTRODUCTION.......................................................................................................................................3
LO 1............................................................................................................................................................3
1.1 Profile of Shine communication and their strengths and weaknesses..........................................3
1.2 Shine communication using comparative measures of performance............................................4
LO 2............................................................................................................................................................8
2.1 Actions required to overcome the identified weaknesses in the business...........................................8
2.2 Existing performance could be maintained and strengthened............................................................9
2.3 recommend new areas in which the business could be expanded......................................................9
LO 3..........................................................................................................................................................10
3.1 Assessment of existing business objectives and plans.....................................................................10
3.2 Business plans to incorporate appropriate changes..........................................................................12
3.3 Action plan to implement the changes.............................................................................................12
LO 4..........................................................................................................................................................13
4.1 Impact of the proposed changes on the business and its personnel..................................................13
4.2 Plan how the changes will be managed in the business...................................................................14
4.3 Improvements in the performance of the business over a given timescale.......................................15
CONCLUSION.........................................................................................................................................16
REFERENCES..........................................................................................................................................17

INTRODUCTION
Small business enterprises are very important for any country for their growth and
development. In this type of business there are less than 50 employees are employed. In UK,
there is also some other things that can be considered such as assets value, annual turnover, net
profit etc. There are approx. 4.5 million businesses in UK which are doing their business on
small scale. These types of enterprises also provide employment opportunities to the people of
UK so that it helps to reduce the rate of unemployment and poverty line in the nation. They also
need some investments in their business so that they can carry on their career also as an
Entrepreneurship. If they grow continuously then they can be a medium enterprise so that they
can also change their policies also. The purpose of this report is determines the strength and
weakness of the Shine communication (Blackburn, Hart and Wainwright, 2013). Also they need
to overcome from their weakness so that they can enhance their profits. They can also implement
plan in their business so that they can improve their business and also they can monitor their
performance so that they can find out the effectiveness of their business.
LO 1
1.1 Profile of Shine communication and their strengths and weaknesses
Shine business doing their business in media and communication in UK. They are on 6th
position out of 100 small businesses in UK. They also do their activities with the help of social
media and also they organize some campaigns in different forms. There are some basic values of
Shine communication such as:
 Smart
 Fresh
 Connected
 Committed
They also hire best people for them so that they can achieve their organizational goals and
objectives in an effective manner. If there is any need any of training then they also provide it to
their employees so that they can enhance their performance.

There are some strength and weakness of Shine communication which can affect their
business performance either internal or external, these are described as below:
STRENGTH:
Market position: In UK, the market position of Shine communication is very good. In other
words, their reputation or goodwill is very good in the market that will help them to take
advantage from their customers (Gronum, Verreynne and Kastelle, 2012). They also maintain
their relations with their customers or public that will also help them in enhance their profits.
Client portfolio: Shine communication has very good position in the market so that they also
have good portfolio of client. Their clients are a group of international hotel etc. If company has
the strong market position as well as strong clients then that will help them to reach at the high
level.
WEAKNESS:
Threat of competitors: There are lots of small businesses in UK which are continuously
increasing so that Shine communication has the threat of new competitors in the market place.
Staff retention: They do not provide motivation to their employees so it may be very
difficult to them to retain the employees in their company. So if they want to retain employees
then they must have to provide proper satisfaction to them regarding their job.
1.2 Shine communication using comparative measures of performance.
Shine communication
PROFIT AND LOSS ACCOUNT
For the year ended 30 April 2012 and 30 April 2013
2012 2013
£ £
Sales 120,000 200,000
Cost of sales 80,000 150,000
Gross profit 40,000 50,000

Overheads 10,000 15,000
Net profit 30,000 35,000
Shine communication
BALANCE SHEET as at 30th April 2012 and 30th April 2013
2012 2013
£ £ £ £
Fixed assets 15,000 12,000
Current assets
Stock 7,000 18,000
Debtors 12,000 36,000
Bank 1,000 0
------------- --------------
20,000 54,000
Less current liabilities
Creditors 6,000 15,000
Bank overdrafts 0 10,000
----------- -------------
6,000 25,000
Working capital 14,000 29,000
----------------- ----------------

Net assets 29,000 41,000
Financed by capital
Opening capital 22,000 2,900
Add net profit 30,000 35,000
----------------- -------------------
52,000 64,000
Less drawings 23,000 23,000
----------------- ------------------
Closing capital 29,000 41,000
Liquidity proportion: on the off chance that we asses break down organization beneficial we
have to consider couple of proportion
a) Current ratio = current asset / current liability
2012 2013
CR = CA / CL
= 20000/ 6000 = 54000/ 25000
= 3.33 times = 2.16 times
In 2012 organization could pay their obligation more than three times utilize their present
resource. In 2013 organization utilized their working capital proficient way. Organization still
pays their CA twice by utilizing current resources. Tried and true way of thinking has it that on
perfect current proportion is 2.
2) QUICK RATIO (ACID TEST) = CURRENT ASSET – inventory / current liabilities
2012 2013
Q r = CA – INVENTOR / CL
= 20000 – 7000/ 6000 = 54000-18000/25000

= 2.17 =1.44
In 2012 organization pay their obligation twice by utilizing CA. Which is great, yet it's
show that organization can't utilize their capital proficient route however in 2013 organization
utilize their working capital legitimate way. Tried and true way of thinking has it that on perfect
brisk proportion is 1.
ASSET UILIZATON:
WORKING CAPITAL TURN OVER = SALES REVENUE / NET WORKINGCAPITAL
2012 2013
WCT = 120000/ 14000 = 200000/25000
= 8.57 = 8
Profitability ratio:
2012 2013
ROCE = profit before investment / capital employed * 100
= 30000/52000 * 100 = 35000/64000*100
= 57.69% or 58 % = 54.68% or 55%
The organization has diminished in 2013 .From capital venture the organization earned 55%
in 2013 contrasted and 58% in 2012.
Gross profit margin = gross profit / sales revenue *100
2012 2013

=40000/120000*100 =50000/200000*100
=33.33% =25%
Operating profit margin = operating profit /sales *100
= 30000/120000*100 = 35000/200000*100
= 25% =17.5%
The (33.33% - 25%) = 8.33% diminishing in gross benefit is bad news for the
organization. It demonstrates a nearer aggregate between offering cost and cost of offers.
In 2013 organization's cost of offers expanded by contrasting and 2012.However the
working edge additionally diminish by (25% - 17 .5 %) = 7.5%. It show that organization cost
have expanded and may require more tightly controls.
LO 2
2.1 Actions required to overcome the identified weaknesses in the business
As specified before the organization has more than 50 representatives working in tight
timetable. Advance every representative in the organization will work in more than a few
undertakings on the double. This can prompt duplication or additionally now and again the
representative will most likely be unable to give their complete consideration to a solitary
venture. The worker may likewise confront issues with lower adaptability in the timings. As the
organization is in broad daylight connection they have to imaginative and new ideas which can
be begin just on the off chance that they can work with tolerance (Jones and Rowley, 2011). The
organization thus can acquire new personalities that can encourage the current representatives.
As said the organization has tremendous rivalry from the current neighborhood and the
global contenders. Promote the new participants to the business additionally posture danger to
the organization. For this the organization needs to pull in an ever increasing number of
significant clients through advertising itself through limited time battle accentuating their honors.

2.2 Existing performance could be maintained and strengthened
The organization concentrates on the center values around which its business capacities
helping it to accomplish awesome statures. In any case, the correspondence and PR industry is
continually developing and the organization needs to revive their thoughts consistently with a
specific end goal to keep up their exhibitions. Each time the customers approach them they
expect an alternate outcome in each business bargain. Shine needs to continually distinguish the
social patterns in the market and society and update them in view of it. Patterns change client's
inclinations. Shine Communication' work does not end with their customers but rather they have
to achieve their customer' clients as well (Añón Higón and Driffield, 2011).
The group quality is one of the key powers for achievement in this sort of business. For
this it is important they require a decent group pioneer and most likely CEO Rachel Bell of Shine
Communications has satisfied the desires of the group. The group at Shine Communication has a
dependable relations and this is clear from the way that Erika Kessel who is the executive of
Shine correspondence has been with CEO Rachel Bell since the commencement of the
organization (Shine Communications, 2013). The organization additionally enjoy spending about
£1,470 consistently for the staff costs including a yearly games day, month to month
organization evenings out for bar tests, mixed drink making, exhibition visits and so forth. The
organization likewise keeps up a decent open picture by giving more than £47,000 in a solitary
year for philanthropy exercises. The organization likewise offers abnormally adaptable bundle of
advantages and contributes 25% of benefits to staff.
Being a private company endeavor Shine correspondence requires exertion in holding its
current customer list in spite of the fact that adding the new ones to its rundown. The
organization mindful of the way that its current clients are the individuals who esteem them for
what they are other than it is anything but difficult to work with individuals whom we definitely
know. The organization additionally utilizes distinctive stages to achieve new clients to broaden
its customer list (Fassin, Van Rossem and Buelens, 2011).
2.3 recommend new areas in which the business could be expanded.
There is dependably scope for development in any business. Extension brings new open
doors for development and advancement for the business and furthermore the general population
required in it. Shine Communication can investigate openings past open connection field into

numerous different fields. There is immense degree for people in general connection business to
enter segment of showcasing exploration. A field that connections markets, shoppers, open and
the clients through data is advertising research field. In the field of promoting, market data is
utilized to recognize showcase openings, and take care of issues, assess advertising activity and
the comprehension of the showcasing procedure is moved forward.
Shine Communication while planning their battles for their clients seriously contemplate
showcase changes and also every part of the general public and can understanding conduct of
their clients. The organization has an enthusiasm for inquiring about. The organization likewise
utilizes Evaluating Results in Integrated Campaigns (ERIC), assessment framework which
concentrates on buyer recognition, slant and behavioral change for measuring the result of
interchanges battles, instead of just the yield of movement (Shine Communications, 2013). A
similar innovation can be utilized by Shine Communications to assess a specific organization'
effects and advantages of items and administrations in the market (Cowling, Liu and Ledger,
2012).
LO 3
3.1 Assessment of existing business objectives and plans
The Company has different business objectives speaking to its dreams which are as
underneath
Vision for staff: bolster the representative to Shine, worker the best with a specific end
goal to be the best in the business.
Client vision: support a fortunate customer list, desires of the customers are surpassed
Shareholder vision: achieve oversaw development, be effective monetarily
In light of these six objectives there are gathering inward destinations mapping to the
organization'
Primary targets and these are checked on every year to guarantee Shine Communication
stays at the top. Shine Communications has a goal to draw all the more nearer to its clients to

convey standard administration to them. To completely fulfill its clients, Shine Communication
has investigated the most profound level of particular fulfillment.
Business plans:
Twice in a year the staffs at Shine are inspected for their execution against their SMART
targets. These targets are set in the time of July consistently (Chittithaworn and et. al., 2011).
Each representative's key abilities have been distinguished and including what is normal from the
worker at the present level and what the following level resembles.
The organization' strategies for success incorporate Motivation Plans. The inspiration
arranges highlight each staff’s quality and vocation objective. Promote, these are utilized to
assess and settle the following year' budgetary focuses in association with staff's vocation goals.

3.2 Business plans to incorporate appropriate changes
Marketable strategy is general to know where the business and what is the future
prospects of the business or at the end of the day where the business is heading. However
strategies for success can be revised time to time to fuse the adjustments in the economic
situation or the organization circumstances. According to the suggestion to wander in the field of
statistical surveying it is important that the organization rolls out improvements in its strategy for
success to oblige the same.
To join this change the organization right off the bat needs to build up a procedure to
direct inquires about. The organization needs to comprehend the ways and methods for social
occasion data and assess the results of this accumulated data. In view of the achievement of the
result the strategy can be received. Advance, the organization needs to enroll productive HR
important to take the necessary steps identified with statistical surveying (Forsman and Temel,
2011). Last however not the slightest another strategy for success should be produced to elevate
new business zone to in the market. As the organization is as of now in the field of
correspondence and PR it can utilize its aptitude to market this to the current clients and in
addition the new clients.
3.3 Action plan to implement the changes.
Through legitimate activity arranging a business can accomplish its future objectives.
Activity arranges help the business to comprehend what should be done first. It is essentially
organizing the moves to be made to achieve the objective. Activity arrange begins with posting
the objectives that should be accomplished, organizing the errands, perceiving the means
expected to achieve the objectives with the duties and assignment of forces, setting up an
emergency course of action. For Shine correspondence to wander into the statistical surveying
business, the organization initially needs to recognize the best philosophy the organization can
gather data about the organization from direct contacts. The following stride is to rely on upon
little and medium scale gatherings to accumulate data.
At last the organization can utilize their online networking exercises keeping in mind the
end goal to gather data. This data should be managed to comprehend the best philosophy for
gathering data and finish it (Preuss, 2011). The organization likewise ought to have a particular
time period to do every one of these exercises through relegating the duties to the current

representatives. In light of the outcomes the organization can enroll future representatives with
the particular abilities who can work all day on these assignments. In the interim the current
staffs ought to likewise chip away at advancing the new business dare to a more noteworthy
stature.
LO 4
4.1 Impact of the proposed changes on the business and its personnel
Any adjustment in the business operation can affect the business and can be either
positive or negative. The change influences the improvement of the association as well as nature
in which it works. The change proposed can help the association increase upper hand over
alternate players or should bring about to fall the whole association.

Taking after are the foreseen changes due to the proposed changes in Shine
Communication:
Finance: as far as fund the proposed change is another wander for the organization and
can have positive effect in the event that it is done deliberately. However the achievement of the
new pursuit additionally relies on upon the new group that will be selected.
Workloads: The Company as of now is firmly planned and thus in the activity arrange it
has been proposed to enlist a group which can take a shot at the new pursuit having the
fundamental aptitudes. However the organization' current representatives moreover can be
prepared on the new business wander to convey forward the operations easily (A. Harris and P.
Patten, 2014).
Morale: As new group is selected there are odds of that the current representatives may
feel shaky. In any case, since Shine Communication has dependably been a place where
cooperation is empowered and the organization is outstanding for a similar it would not have
much effect on the representatives.
Organizational structure: There might be changes required in the structure of the
association and furthermore the employment profile in order to make space for the new group
which will take a shot at statistical surveying.
4.2 Plan how the changes will be managed in the business
The greater part of the little scale associations don't take up business and approach
changes because of the dangers included. Regardless of the possibility that the progressions are
done the aim of executing the change is to make a superior work place and workplace. At Shine
Communication the proposed changes can have effect on the business and additionally the staffs.
By wandering into the field of statistical surveying, Shine Communication business will get
another measurement towards the achievement. The business will get more benefits as the
organization will concentrate on the neighborhood and additionally the national clients (Carraher
and Paridon, 2015). Until the frameworks of arrangements turn out to be more settled there
might be impact on the execution of the association yet once the association holds fast in the

field of statistical surveying as it has in the field of PR and correspondence then things will
change and the organization can beat its rivals. Assist, as the workers develop and build up their
trust in the new field execution will additionally make strides. Change is inescapable however
most association representatives oppose change. It is vital as the change is actualized in the
association workers are more adaptable on the new ventures and take in the new errands with no
wavering. The current workers ought to likewise be prepared on the business to play out the
operations required in the field of statistical surveying.
It is important the tea soul is kept up through productive initiative amid this change
execution handle by CEO Rachael Bell. There should be a greater amount of open discussions
where the issues experienced amid the change execution are advanced by the current and the new
staff and the administration handles them adequately taking vital activities. Any arrangement or
marketable strategy change carries with it an extensive variety of upgrades with it. Changes can
prompts changes in the strategies of the business, affecting administration and can likewise affect
the representatives as well. While getting transforms it is important that the effect of these
progressions are kept low on the business capacities and execution and furthermore on the
administration and their staffs (Ratten, 2014). Rivalry among the current and the new staffs can
increment rivly prompting disappointment in the execution of the group. The organization needs
to make fundamental move to keep up the spirits of all representatives with the end goal that they
as cooperation towards the achievement of the change executed.
4.3 Improvements in the performance of the business over a given timescale.
The organization needs to screen the execution of the progressions nearly and monitor the
prospects so they are in accordance with their readied activity arranges. After the fulfillment of
each errand the activity arrange must be refreshed this will help the organization to know its
encouraging on the usage of proposed changes. Amid execution of progress, the organization
likewise ought to have control measures to deal with any deviations. There ought to likewise be
reports and records of the deviation and how these were controlled or limited. If there should be
an occurrence of deviation the activity plan may require updating, and in such cases an
overhauled activity arranges should be circled inside the group so that each individual from the
group knows about the change. The organization likewise ought to archive the lessons learnt by
the group for further use amid the usage of progress (Lambert and Davidson, 2013).

CONCLUSION
It is obvious that change is unavoidable in business. As the business develops there will
be changes in the inside elements, for example, administration and workers change and
furthermore outside elements, for example, the mechanical changes, new approach of operations.
Shine correspondence, which is a private venture endeavor, has been in the field of
correspondence and PR throughout the years. In any case, the organization can develop to
another level by concentrating on the field of statistical surveying. The organization has great
holding between its colleagues and has been perceived in the market for the same. This quality
can be additionally created as the organization executes changes in the marketable strategies and
business arrangements.

REFERENCES
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Online:
Small Business Enterprise (SBE) Program. 2017. [Online]. Available through:<
http://www.msdgc.org/about_msd/capital_improvement_program/small_b
usiness_enterprise_program/>. [Accessed on 20th May 2017].