Small Business Adoption Models

This assignment delves into the realm of adoption models specifically applied to small and medium-sized enterprises (SMEs). It examines different frameworks used by SMEs to integrate new technologies, strategies, or practices. The analysis explores the influence of these adoption models on SME performance, growth, and overall success. A selection of relevant scholarly articles is provided as a foundation for research and understanding.

SMALL BUSINESS
ENTERPRISE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1: Investigation about the performance of small consultancy firm......................................1
1.1 Profile of small business enterprise.......................................................................................1
1.2 Analysis of business by implementing comparative measures of performance...................2
TASK 2: Changes to improve management and business performance..........................................4
2.1 Recommendation in identified weakness..............................................................................4
2.2 Ways to maintain and strengthen the existing business performance...................................5
2.3 Recommendation for expanding business in new areas........................................................6
TASK 3............................................................................................................................................7
3.1 Assessment of objectives and plans......................................................................................7
3.2 Revised business plan in order to incorporate identified changes........................................8
3.3 Action plan for implementing changes.................................................................................9
TASK 4..........................................................................................................................................10
4.1 The impact of the proposed changes on the business and its personnel.............................10
4.2 Plan for managing changes in business...............................................................................10
4.3 Monitoring improvement in business with time.................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Small scale business comprise small business operations with limited number of
employees and limited profits and sales. The growth opportunities for small scale organisation
are increasing continuously as no market restrict the expansion plan of enterprise. Further, in
order to serve customer satisfaction and to enhance the value of services it is important for the
organisation to expand its market by analyzing its own strength and weakness. The report will
evaluate profile of small enterprise of UK that is The White Elephant. It is the cafe and restaurant
serves various types of foods and beverages to attract consumers. Moreover, it will analyze the
performance of the cafe by comparing its performance with Black penny the another small scale
organization of UK. It will identify the importance maintaining and strengthening existing
business performance in order to maintain the stability or functions. Beside, the report will
evaluate the business plan prepared by the business consultant in order to assist The White
elephant in incorporating identified changes. Hence, the report will outline plan which is used by
the entity to manage regular changes in organizational functions and process.
TASK 1: Investigation about the performance of small consultancy firm
1.1 Profile of small business enterprise.
Company Name: The White Elephant Cafe is a small sized cafe that provides a wide range of
breakfast, offering and a great taste of coffee to the people. It is a privately owned enterprise in
the form of sole proprietor as it is owned by a single entity.
Vision: “To design customized package with a clear mind and perfection”
Mission: “To deliver great quality of taste to the people to cater their expectations”
Ownership structure: White Elephant Cafe is owned, run and operated by Margaret
River Hospitality Group. Thus, the business follows sole proprietorship, in which, entity made
investment and take responsibility to run day-to-day activities.
History: The business was initially set up and originated with the one and single thing in
mind that is great quality cafe. Opening cafe with wonderful surrounding and lovely staff were
the key priorities among owner with the single thought that it will be definitely loved by people.
Over the period, the business shown a faster growth from to breakfast, lunch, coffee and dinner
offerings.
Key activities: The company's key operations includes service delicious taste of coffee,
beverages and meal in distinctive ranges. It serves people with the best quality of coffee that is
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extremely demanded by locals. Our dishes includes amazing local and fresh produces and rolling
menus with the aim of take benefit of more product offerings. Our food product comprised of
mix of lights, healthy dishes with multiple of choices and options to the users. Its key target is to
offer qualitative food services with lovely view. It also offer free wifi, music and other
entertainment services to the people.
Location: Merylee Road, Glasgow, UK
Strengths:
 Great quality food, beverages and meal offering
 Multiple of food choices and meal options including seafood, vegetarian, meat, desserts,
beverages and drinks
 Stunning and superb location with wonderful decoration is loved by everyone
 Satisified consumer base
 Talented, welcoming and extremely committed staff members
Weakness:
 Poor business management that lack of supervision and control.
 Limited range of food services i.e. Breakfast, drinks, dinner, lunch
 High services cost for offered services
1.2 Analysis of business by implementing comparative measures of performance
The White Elephant is facing tough time due to its competitor, Black Penny's offerings
which is highly dedicated towards delivering exceptional quality food facilities to the users. It
offers unique surroundings to the consumers with advanced features. Its business performance
through profitability margin is analyzed here as under:
The White Elephant The Black Penny
Year Net profit Revenue Net margin Net profit Revenue Net margin
2012 150 1230 12.20% 134 1600 8.38%
2013 179 1370 13.07% 168 1500 11.20%
2014 166 1600 10.38% 176 1820 9.67%
2015 201 2200 9.14% 189 2230 8.48%
2016 286 2450 11.67% 224 2460 9.11%
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According to the results computed above, it is clearly visualized that in 2012, net margin
ratio of The White Elephant is high to 12.20%, however, Black Penny generated return of 8.38%
only on their total revenue of 1,600 GBP. In next year, both the company's ratio got inclined,
still, comparatively, White Elephant earned better return @ 13.07% on sales of 1,370GBP. It can
be seen that although profitability performance of The White Elephant is quite good, however,
competitor's sales performance is high which may be due to high consumer base, good services
and low service charges.
In the period of 2014, with the increase in upcoming of other cafe with innovative
offerings, net margin of both the cafes got declined to 10.38% and 9.67%. Thereafter, in next
year, it came down to 9.14% and 8.48% in Black Penny which shows that both the cafe house's
did not perform well during such period. However, on the contrary note, sales revenue of both
the cafes got improved. It is because, with the increase in people income, now-a-days, everyone
is ready to pay high price for great taste of food offerings. Moreover, inflation also increased
product prices resulted in higher revenue. In the recent year 2016, White Elephant net profit
margin rose to 11.67% higher than Black Penny @ 9.11% shows that first is performing better
and generating good return.
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2012 2013 2014 2015 2016
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
Profitability ratios
The White Elephant
The Black Penny

TASK 2: Changes to improve management and business performance
2.1 Recommendation in identified weakness.
In order to improve business performance the first step for the White elephant is to
improve its weakness Improving weakness assist the business in grabbing a strong control over
various opportunities which assist the growth and development of company (Taylor and Taylor,
2014). According to Business Consultant the company will have to focus factors which are
described under:
 From the above analysis it can be recommended that company need to make appropriate
monitoring and controlling over its services. It is important for CEO to regulate and tract
the performance of staff when serving services to consumers and when preparing food s
and beverages in Kitchen. Further, it important for the management to look over the
healthy and safe practice of the firm because it is the factor which attract the consumers
towards visit the cafe again and again.
 Implementing the use of promotional strategies and techniques to make people aware
about the services and products offered by The White Elephant is the best way to make
people aware about the companies' innovation. Promotional strategies also assists the
business in collecting feedback regarding lacking amenities and its food and beverages
By collecting consumer feed back cafe can make people aware about its own existing
innovation and can also make changes according to needs and wants of visitors (Alasadi
and Al Sabbagh, 2015). For pricing strategy company it can use various ways setting prices like,
Market Penetration: In this strategy, The White Elephant cafe can charge low prices for its
innovative foods and beverages. This is the strategy which will assist the management in
determining the consumer's acceptance to companies products and services.
Competitive pricing: This strategy assist the small enterprises in earning loyalty visitors. Further,
in this strategy The cafe can charge slightly less price for the products in accordance to
competitors for similar products. The minor difference in pricing in comparison to rivalries assist
the enterprise in attracting customers.
Psychological pricing: It is the tactical strategy which can be used by restaurant as in thin the
firm offers slightly low prices according expectations of visitors (Belás, Habánik and Novák,
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2014). For Example, in this if the market price for one food item is 2 Pound than the cafe can
charge visitors 1.80 Pound.
 It can also be recommended that company can maximize its sales and profits making use
of technology and offering home delivery system for its services. It is the best strategy
which can assist the small Enterprise in its growth and development.
2.2 Ways to maintain and strengthen the existing business performance.
It is important for The White Elephant to improve its existing performance by
implementing few changes according to changing trends of market. Implementing changes as per
the market fluctuations assist the business in strengthening its performance (Bernaert, Snoeck
and De Backer, 2014). To strengthen and mating the existing performance of the cafe it is
important for the business to regularly monitors its management which comprises, services, staff,
technology, visitors, profits, sales etc. Further, The Restaurant can maintain and strengthen its
performance by following factors:
 Advancement in technology: The advancement in technology is continuously improving
and providing various opportunities for small enterprise for growth and development.
Implementing the use of technology in cafe can assist the management in reducing the
manual work and establishing efficiency and effectiveness in business operations.
Further, use of technology for monitoring is the best way by which The CEO can control
and monitor the performance of staff (Granados, Hlupic and Hlupic, 2017). Apart from
his, use of digital technology can provide the wide scope to organisation to create
awareness among consumers about its foods and beverages.
 Conducting market research: It is important for small the scale enterprise to regularly
conduct market research in order to make changes in services according to changing taste
and preferences of consumers. Moreover, the company can focus on assigning marketing
team in which the employees will be only focused on gathering data about the changing
market trends (Thomas, 2013). Continuous check over visitors needs and wants and
competitors strategy is the best by which The White Elephant can maintain and
strengthen its existing business performance.
 Rewards and Benefits: Furthermore, it is important for the CEO of the small scale
business enterprise to keeps its employees motivated by giving them regular incentive
and regards which can be monetary and non monetary. Motivating staff members is the
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best way to establish efficiency and effectiveness in business performance. Apart from
this the strategy which assist the firm in improving the level of services which is focused
on serving consumer satisfaction.
 Training and Development: Organizing training and development session for the
employees to make them aware about the changing taste and preferences of consumers
and about advancement in technology is important the service providers are only linked
with the internal functioning because which the services lack innovation. Therefore, T&D
session are the best way which assist the management in maintaining and strengthening
business performance (Verbano, Crema and Venturini, 2015.).
2.3 Recommendation for expanding business in new areas.
Expanding business operations plays a major role in growth and development of the
organization. Therefore, its is important for The white elephant to expand its services across the
globe in order to create awareness about its innovated products and services. Expanding the
enterprise assist the entity in enhancing the value of its services and developing large consumer
base. Expanding organisation is the best way which helps the company in seeking and grabbing
various successful opportunities. In accordance to companies strength and weakness, it is implied
that organisation is capable to serve its services worldwide. Growth opportunities for The White
Elephant Restaurant are as follows: Digital Marketing: This the promotion of services with the use of various channels of
social media like, Facebook, Instagram, Twitter, Whats-app etc. Digital marketing is the
technology which is playing a great role these days in expanding business operation
worldwide (Wickert, 2016). Moreover, the technique will assist the cafe in making
people aware about its innovative services and existence.
 Global Expansion: Global expansion is the best way of expansion for small scale
business enterprise. Further, it is important for The white elephant to increase its physical
availability in place like London as it has wide range travelers and tourist all 12 months.
The little innovation in products and implementing in pricing strategy when expanding
the restaurant is the best strategy which will assist the entity in expanding. Offering services online: The best way to increase the service and their availability for
The White elemental cafe in by offering services through one Click These day consumers
do not prefer going to place s like cafe instead the customers demand the services at
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home or offices therefore innovating the delivery system will assist the company in its
growth and development (Zamberi Ahmad 2014).
 Increasing Physical availability: It is important for the organisation to increase its
physical availability of cafe in various prime location of Scotland in order to provide
people easy access to visit and enjoy the time at restaurant. The increasing physicality of
cafe will assist the Enterprise in increasing its efficiency and effectiveness which will
lead to growth and development.
TASK 3
3.1 Assessment of objectives and plans.
The ultimate objective of The White Elephant is to increase its consumer base and
physical availability. Therefore, the aim of company is focused on making innovation ins its food
and beverages in order to attract consumers. In order to attain determined objectives the firm
has specified and systematic steps which reflects its objectives which are as follows: To be the leading cafe of United Kingdom: In order to become leading the focus of
company is to increase its efficiency and effectiveness in its functions and services.
Further, innovating products according to market requirement is the best way which can
assist the cafe in attracting consumers of new market.
 Hard work to attain goals: In this objective the firm is focused on setting goals for every
activity, this helps the company improving efficient of employees and services (Bridge
and O'Neil, 2012). Time management is the best strategy which assist the small
Enterprise in attaining competitive advantage.
 To increase sales and profit of White Elephant: The ultimate focus of the company is
based on maximizing profits and sales. Further, for the company is focused on improving
its efficiency of workers, implementation of advanced technology, appropriate
management practices.
Hence, in order to establish coordination and corporation between business objectives, the
business consultant has prepared the business plan for The white Elephant which is as follows: Market Research: In this the CEO will assign the duty to employees to research about the
consumer's taste and preferences. Adapting changes and innovation in business which
will assist the cafe in improving its profits and sales of services in local market.
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Analyzing consumer trends and rivalries products is the best research by which firm can
make alteration in its services (Blackburn, Hart and Wainwrigh, 2013). Competitive Strategy: The objective of company is focused on becoming the market
leader for which it is important for the management to determine the strategies used by
rivalries to attract consumers. Moreover, it is important for the White Elephant to make
innovation in its services according to leading competitors.
 Evaluation the internal and external factors of company: The another objective of the
cafe to attain goals which are focused on time management and increasing efficient and
effectiveness of functions. Therefore, for this it is important for the business to provide
adequate and appropriate training to existing staff. On the other hand it is important for
the organisation to recruit new skilled individuals who understand the process of
changing market trends.
3.2 Revised business plan in order to incorporate identified changes.
In addition, for incorporating changes in existing plan, The Elephant can implement
SMART strategy in its objectives and plans. This strategy assists the organisation in making
changes according to requirement. Further, it provides the measurable approach which act as
tonic for the small scale enterprises. The Plans of restaurant according to SMART strategy are as
follows: Specific: In this the company will focus on specific target like for instance increasing
consumer base and is as per the analysis the present consumer base of The White
elephant is 15% and it wants to make it 20% than the management will have to focus on
specif targets like innovation in products and services or expanding business or
implementing the use of digital technology (Zamberi Ahmad, 2014). Working according
to specific targets assist the organisation in establishing efficiency and effectiveness in its
functions and consumer services. Measurable: In this the company can measure the performance of its staff and its
services. Measuring performance is the strategy which assist the small enterprises in
determining opportunities for growth and development. Therefore, in this step the CEO
can focus on monitoring staff activities like, conflicts, their behaviors towards visitors,
absenteeism etc. Further, this step is beneficial for the objective of expanding business
because it assists in analyzing the need of appropriate and adequate manpower.
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 Achievable: This helps in determining if the goals and objectives are achievable or not
and if yes than what factors should be considered by the organisation. For instance, if
White Elephant cafe plans to increase its profits by 10 Percent than it demands the clear
view over innovation and increasing consumer base for which the company will have to
focus on various strategies such as promotion, time management, innovation, and making
changes in its existing foods and beverages according to taste and preferences of
consumers (Bridge, and O'Neill, 2012). The change in system of firm will assist the CEO
in determining, if the goals and objectives are achievable. Realistic: In accordance to this the White elephant need to make realistic innovation in its
services. Unrealistic innovation in food and beverage are hard to exist because the
consumers are very particular about their eating habits and additives in the dishes the
restaurant is offering.
 Timely: In this the company will have to set targets according to time. This will assist the
management in determining the need of changes and usefulness of strategies and
innovation. Setting targets is the best strategy which assist the small scale organisation in
managing business functions.
3.3 Action plan for implementing changes.
Action plan is set of step for attain business goals and objectives. It sis the systematic
process which leads to successful business operations. The action place of The White Elephant is
as follows: Determining Goals and objectives: The first step to growth and development is
implementing changes according to determined goals and objectives. Further, according
to analysis it has bee demonstrated that the services and products of The White Elephant
has succeeded in serving visitor satisfaction but still when it comes to expanding business
in accordance to market leaders it is important for the Enterprise to implement changes in
its internal and external functioning according to desired goals and objectives (Blackburn,
Hart and Wainwright, 2013). Employee Participation: In second step it is important for the management to increase
employee participation in action plan involvement of employees is the strategy which
assist the enterprise in collecting feedback regarding taste and preference consumers
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which further assist in implementing changes accordingly. Apart from this, managing
employee's relation before extending the action plan plays a vital role in success Plan. Development of Action Plan: Formulating action plan after collecting feed back from
consumers assist the company in implementing strategies of growth and development.
Strategies are implemented in plan according to the need which demands the evaluation
and analysis over the existing firm's services, profits and sales.
 Implementing Action Plan: Implementing action plan is stepping one step close of growth
and development. Further, Action plan is the step which can assist The White Elephant in
accomplishing desired goals and objective (Gronum, Verreynne and Kastelle, 2012).
 Follow up: It is the important step in which the company can monitor the plan and the
management collects follow up by regularly monitoring and regulating the steps of
Action plan. Hence, it assists the CEO in measuring business performance in accordance
to business plan and Action Plan
TASK 4
4.1 The impact of the proposed changes on the business and its personnel.
After implementing changes and action plan there are various changes in business and
personnel which are as follows:
 Increase in growth: The planned changes and strategy implementation assist the small
Enterprise in increasing it profits, sales and productivity. Further, these changes assist the
company in improving the performance of employees and their services.
 Consumer Base: Implementing plan and changes assist the Cafe in creating its consumer
base as the plan is based on innovation in services according changing taste and
preferences of consumers (Ackermann and Audretsch, 2013).
 Increasing Market Share: Implementing action plan assist the firm in increasing market
share as the use of various technology is beneficial for the business in expanding its
operation at different locations.
 Employees Satisfaction: Increasing services, use of advanced technology and the
strategies of managing time and motivating employees assist the entity in serving
consumer satisfaction. Motivating employees with continuous improvement is the part of
business plan which aims at satisfying the needs and wants of employee in order to
manage the growth and development of The White Elephant Cafe.
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4.2 Plan for managing changes in business.
For managing changes the White Elephant cafe can use the Kotter's model of Change
management which is as follows:
 Create Urgency: This step assist the management in determining the urgency of changes
required in order to manage the stability of the organization. This step assist in removing
barriers at initial stage of treats.
 Forming Strong Alignment: In this the company forms an systematic alignment of
activities in order to reduce the chance of threats and uncertainties. This helps the
company in maintaining the efficiency and effectiveness of its business operations.
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Illustration 1: Change Management Model
Source: (Gibbonsaustin, 2014)

 Enhancing strategy and vision: In this the management formulates strategy according
vision. It Will assist, The White Elephant cafe in enhancing the value of its services by
making process easier and smoother (Eid and El-Gohary 2013).
 Communicating Vision: In this step the manager will communicate the ultimate vision to
all employees' ion order to make them determined about the accomplishment of goals and
objectives.
 Removing Obstacles: Further, when implementing changes, it is important for the cafe to
remove the obstacle which can hinder performance of business operations and strategies.
 Creating Short term wins: Enjoying and appreciating the short term win of goals is the
best way to analyze the performance and to boost employees morale.
4.3 Monitoring improvement in business with time.
The changes are monitored by the small scale organisation with the use of Gantt Chart. It
demonstrates the systematic flow and idea about the business operations. Further, monitoring and
supervising process of improvement assist the management maintaining the stability of
organizational functions. In addition, the chart will assist the company in analyzing the
efficiency and effectiveness of innovation and changes in existing services.
Activities/Week 1 2 3 4 5 6 7 8 9 10
Collecting Information
Accumulation of monetary
resource
Investigating about market
tendency
Communicating with
suppliers
Commencement of
advanced technology,
equipments and assets.
Utilization of plan of action
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Importing quality range of
food products for making
innovation.
Starting project
Grooming and
improvement
Observation or supervision
CONCLUSION
The report summarized the growth and development of small scale enterprise for which
the White Elephant the Cafe and restaurant took advice from business consultant for
implementing changes. It analyzed the strengths and weakness of company which states that it
is located in prime location with wonderful decoration to create lively environment for
consumers but on the other hand it has Poor business management and lack of supervision and
control. Further, the report evalauted the recommendation of consumtant on organisation
weakness na dto mataing and strenthen the business performnace. Beside, the report ouyltine the
business plan and action plan which will assit the restauant in exoanding its services in different
areas. It identified the ise of change managment model for making enitry awre about the
urdgency of making achanges in order to mantain ita stability. Thus, the report concluded by
gantt chart evaluation which helps the enterprise in monitoring and suprvising business
functions.
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REFERENCES
Books and Journals
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Alasadi, R. and Al Sabbagh, H., 2015. The role of training in small business
performance. International Journal of Information, Business and Management, 7(1),
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Belás, J., Habánik, J. and Novák, P., 2014. Significant attributes of the business environment in
small and meduim-sized enterprises. Economics & Sociology, 7(3), p.22.
Bernaert, M., Snoeck, M. and De Backer, M., 2014. Enterprise architecture for small and
medium-sized enterprises: a starting point for bringing EA to SMEs, based on adoption
models. In Information Systems for Small and Medium-Sized Enterprises(pp. 67-96).
Springer Berlin Heidelberg.
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
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Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small
business. Palgrave Macmillan.
Eid, R. and El-Gohary, H., 2013. The impact of E-marketing use on small business enterprises'
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Granados, M.L., Hlupic, V. and Hlupic, V., 2017. Knowledge management activities in social
enterprises: lessons for small and non-profit firms. Journal of Knowledge
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Gronum, S., Verreynne, M.L. and Kastelle, T., 2012. The role of networks in small and medium‐
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Management, 50(2), pp.257-282.
Taylor, A. and Taylor, M., 2014. Factors influencing effective implementation of performance
measurement systems in small and medium-sized enterprises and large firms: a perspective
from Contingency Theory. International Journal of Production Research, 52(3), pp.847-
866.
Thomas, R., 2013. Small firms in tourism. Routledge.
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Verbano, C., Crema, M. and Venturini, K., 2015. The Identification and Characterization of
Open Innovation Profiles in Italian Small and Medium‐sized Enterprises. Journal of Small
Business Management, 53(4), pp.1052-1075.
Wickert, C., 2016. “Political” corporate social responsibility in small-and medium-sized
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Zamberi Ahmad, S., 2014. Small and medium enterprises’ internationalisation and business
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ONLINE
Gibbonsaustin, 2014., Kotter's 8 Step Change Model. [Online]. Available
through:<https://gibbonsaustin.wordpress.com/2014/05/05/kotters-8-step-change-model-
adapted-to-speedsheild-project/>
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