Comparative Analysis of Small Businesses

This assignment involves a comparative analysis of two small businesses, Bestway Holding Ltd and WH Smith Retail Ltd. The analysis includes calculating various liquidity ratios (current ratio and quick ratio) and profitability ratios (gross profit margin and net profit margin). The comparison is done using data from 2002 and 2003 for both companies. Additionally, the assignment references Lewin's Change Management Model and Storey's understanding of small business sectors.

Small Business Enterprise

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
A) Profile of the business.......................................................................................................1
SWOT Analysis......................................................................................................................3
B) Comparison of the performances of both companies........................................................4
TASK 2............................................................................................................................................6
A) Recommendations to overcome weaknesses of Bestway Holding Ltd.............................6
B) Suggest various ways to maintain effective performance.................................................8
C) Justification to expand business areas ..............................................................................9
TASK 3..........................................................................................................................................10
A) Assessment on existing plans and objectives..................................................................10
B) Review of business plans and suggesting changes..........................................................11
C) Producing action plan......................................................................................................12
TASK 4..........................................................................................................................................14
A) Impact on business personnel..........................................................................................14
B) Producing plan for managing business............................................................................15
C) Improvements in the performance...................................................................................16
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18
APPENDIX 1 ................................................................................................................................22
APPENDIX 2.................................................................................................................................22

INTRODUCTION
Formulating effective plans and decision-making is required so that business can achieve
goals with much ease. The enclosed report deals with Bestway Holdings Ltd which is market
leader in small business enterprise sector having diversified businesses each of them performing
good in the local as well as global market. Financial ratios are being calculated by comparing
with W H Smith Retail Ltd so that financial health can be compared. Moreover, various models
of change such as Kotter's model and Kurt Lewin model of change have been discussed in this
report. Resistance of employees should be reduced up to high extent so that performance can be
enhanced and as such, company can relate with current market trends to achieve goals quite
effectively.
SWOT analysis is being conducted and also how it can be overcome by company is also
being discussed. Assessment of existing business plan and review of it is also given in this
report. Various ways to improve performance of organisation is also listed in the report.
Furthermore, various performance measures which are useful for highlighting performance of
workers have been discussed as well. Action plan is also being prepared to strengthen
performance of company and accomplish desired goals with much ease.
TASK 1
A) Profile of the business
Corporate information
Address:
2 Abbey Road
Park Royal
London, NW10 7BW
United Kingdom
Phone: [phone]
Fax: [phone]
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URL: www.bestway.co.uk
Annual sales: £3.4 billion
Total employees: 33,600
Primary Line of Business: Conglomerate company
Management Directory
Sir Anwar Pervez, OBE Chairman and Managing Director
AK Bhatti
AK Chaudhary
MY Sheikh, Secretary
ZM Choudrey, BA (Hons), ACA, CEO (Cheif Executive Officer)
AM Chaudhary, MBA
R Pervez, BBA, ACA, Director
Business Profile:
Bestway Holdings company operates as a holding company with headquarters in London, UK.
It was founded by Sir Anwar Pervez in the year 1976 and is a private company. The companies
have broad portfolio engaged in wholesale, cement, banking and pharmacy as well. The
company was nominated for Business of the year in 2013 at British Muslim Awards. It provides
drinks, juices, snacks, biscuits and tobacco. It has well-diversified business in UK and Pakistan
as well.
Location:
The registered location of business is in UK as it is business friendly city with large
opportunities to provide goods to customers and earn profits.
Mission:
The mission of the business is to be Best way to Grow your Drinks and Food business. To offer
quality products at competitive price and providing customer satisfaction
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Objectives:
To meet customer demands and needs
To provide excellent products and services
To monitor product range to strictly adhere to customer requirements
SWOT Analysis
Strengths
 The main strength of Bestway Holding company is that it has skilled and efficient
workforce which makes it successful in the business operations.
 Skilled workforce is required so that it may be able to achieve goals and objectives in
effectual manner.
 Apart from it, another strength is that it has competitive advantage which makes much
effective than rivals. Also, it has implemented well-structured strategies which provides
enough strength to move ahead of competitors in the best possible way.
 Moreover, it operates warehouses investment properties and also in new and existing
commercial properties. It has diversified businesses which makes it highly effective as it
employees diversified workforce. Thus, these strengths makes it much successful than
others (Schaper, Volery, Weber and Gibson, 2014).
 It has wide reach to customers as it has headquarters in Pakistan and UK as well. Thus, it
has more customer base.
Weaknesses
 Apart from such strengths, it has several weaknesses as well. Among the major is brand
portfolio. It is required that company should be able to strengthen brand portfolio so that
it may be able to handle diversified businesses with much ease. But, it is unable to
manage brand portfolio in effective way.
 It should make well-structured strategies and aligned policies so that it may be able to
cope up with different businesses under one roof quite easily. Complete separation of
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businesses is overcome with the help of brand portfolio as such, this weakness must be
avoided.
 Moreover, it has to strengthen market size in effective way. This is important so that it
may be able to handle future operations in the most productive way. This will help to
strengthen brand name quite effectively.
 It lacks in diversification as brand portfolio is not effective.
Opportunities
 Bestway Holding organisation has immense number of opportunities as well. It has
growing demand of products in the market. This makes it highly effective as it is
imparting quality items to customers which has resulted into increased satisfaction among
them. Thus, it has future opportunities to beat competitors (Storey, 2016).
 Wide range of new products and services are being offered by it which is a big
opportunity for the organisation to become market leader in all the different businesses
which are handled by it.
 Another opportunity is that it has global reach in various markets which is much useful
for it to even garner more markets so that it may satisfy more customers and can earn
more profits in the long run with much ease. This will provide strength to overcome
competition in effectual way.
 Gaining global reach to expand business operations in the international market
Threats
 The main threat which can harm brand image of company is that more competition. This
is the biggest threat to it as competitors are implementing strict strategies which is
increasing overall competition. The bad outcome is that organisation has to cut down
costs which is reducing profit and as such, profitability position is overall lowered.
 Technology plays important role in the production and other purpose so that company
can effectively work out things (Cunningham, Sinclair and Schulte, 2014). But, Bestway
Holding organisation is not able to strengthen technological capacity which is making
adverse effect on the production and overall reducing it.
 Facing competition from other companies such as W H Smith Retail Ltd and Naked
wines Ltd.
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B) Comparison of the performances of both companies
In appendix
Business Performance
It is the management process which helps to attain business pre targeted goals and
objectives in effective way. This is important as business has to perform well in the market by
having good financial capacity. Moreover, by implementing well-structured strategies for
production, sales, marketing, human resources and technology helps to achieve goals quite
effectively.
Types of Business performance
1. Graphic rating scales-
This is effective performance measure which is based on 1 to 5 ratings of production
oriented works. Employees' performance is measured according to the ratings achieved by them.
2. Management by Objectives (MBO)-
The performance is measured about tasks and objectives completed by employees within
stipulated time and as such, goals are reset for successful achievement.
3. Forced ranking-
Three groups are maintained in which top performers are of 20 %, average performers 70
% and lowest are 10 % of the workforce. As such, comparison is made to achieve common goals.
For this project, graph rating scales is used as it is easier method to evaluate performance of
employees (Harris and Patten, 2014).
2. Interpretation-
The financial ratios have been computed for both companies. Ratios provide clarity to
company regarding financial performance and strength of it in the best possible way. By looking
at the financial position regarding liquidity of Bestway Holdings, it can be interpreted that
current ratio is good as compared to other company. It is likely that company will be able to pay
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off liabilities and obligations within stipulated time frame. However, quick ratio of both
companies are more or less same.
Profitability ratios such as gross profit of W H Smith Retail Ltd is around 38-39 % in
2002 and 2003 financial years which shows it has good profitability position (Ratten, 2014).
While, Bestway Holdings has only 5 % in both years which means that it has to control on its
expenses for desired profit. Net profit margin is also high of W H Smith Retail Ltd which implies
that overall financial position is better of W H Smith Retail Ltd than Bestway Holdings Ltd.
Strict measures have to be implemented by company to achieve desired results and strengthen
financial health of it.
Measure Bestway Holdings Ltd W H Smith Retail Ltd
Production It has good production
techniques for achieving
demand
It also has well-structured
strategies to achieve
production.
Human Resources It has skilled workforce
dedicated to hard work.
It also has efficient workforce.
Use of Technology It is lacking in this field and
has outdated technologies.
It has effective technologies
for achieving goals.
Marketing It has not good marketing
strategies as compared to W H
Smith Retail Ltd.
It has effective marketing
strategies and policies.
Sales It has less sales as compared to
other company.
It has more sales because of
effective strategies.
Conclusion-
It can be concluded that Bestway Holdings Ltd has to improve performance so that it can
easily go ahead of W H Smith Retail Ltd which is big retail company and tough competitor to
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Bestway Holdings Ltd. Well-mannered strategies are to be implemented to achieve higher
turnover in the best possible way.
TASK 2
A) Recommendations to overcome weaknesses of Bestway Holding Ltd
According to the SWOT analysis conduced by the firm, it has developed certain areas which
shows its weaknesses.
BRAND PORTFOLIO
Brand portfolio is a synonym for diversification of a firm. In general words it simply
indicates the different kinds of brands in which a single company operates. With the SWOT
analysis of Bestway Holdings Ltd, it has discovered that, the brand portfolio of the company is
relatively weak as compared to it's biggest competitors, namely, Booker group PLC, Palmer &
Harvey Mclane Ltd and A.F Blackmare and Son Ltd. IN order to gain competitive advantage
over its competitors the organisation need to focus mainly on its diversification (Barber,
Metcalfe and Porteous, 2016).
ADVANTAGES OF BRAND PORTFOLIO:
1. Brand portfolio can help the cited firm to develop a good brand value in the market.
2. It will allow the firm to allocate its resources efficiently.
3. Through resource allocation, Bestway can get assisted in its optimum utilisation of resources.
4. More brands will lead the cited organisation to gain more competitive advantage over its
competitors in the market.
5. It may create a good image of the mentioned company in the minds of customers.
6. Good image may lead to develop a trust factor among the customers and may also help in
customer retention.
FUTURE MARKET SIZE
Every firm or organisation needs to focus on their current market share and the market size that
they need to cover in the near future. Similarly, the cited company,i.e., Bestway Holdings Ltd
needs to focus on its future market coverage (Cowling, Liu, Ledger and Zhang, 2015).
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The various in which a firm can develop a good future market can be:
1. Current market size:
The firm need to carry out a research regarding it's current market share. It need to know
which section of people are it's frequent buyers. After, concluding this, the cited firm need to
make strategies to retain those customers for a long term.
2. Scope for new market:
After recognising the current market share of the firm, it need to know the other
possibilities available for the company in the market. It can make strategies to target the other
remaining sections of the society. In order to grow its future market, it need to provide a varied
range of products to attract more people. Also, it needs to carry out some research related
activities to know about the turnover of many customers in the past (Stewart and Gapp, 2014).
After developing the scope for its new market, it needs to develop strategies for capturing
those markets.
TOWS matrix can be applied which is the extension of SWOT analysis. As it takes not
only internal environment, but focuses on external as well. Bestway Company should focus on
external influences which might prevail such as political factors, economic factors and currency
exchange rate as well. Thus, well-structured strategies need to be implemented to overcome thse
factors.
B) Suggest various ways to maintain effective performance
Through SWOT analysis, some strengths of the Bestway Holdings Ltd has been recognised are :
 It's skilled workforce
 Competitive advantages
 Diversification
In order to maintain with this strength, the cited firm need to draw attention on the
following:
 MAINTAINING THE SKILLED WORKFORCE:
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The employees of the mentioned organisation are skilled based. This allows the firm to
maintain a good prestige in the market. In order to continue with this image, the cited firm has to
retain its current employees. For employee retention, it has to follow some guidelines under need
hierarchy theory and motivation theory. As per this theory:
* Bestway should provide with all the physiological needs of the employees related to wages and
salaries.
* In order to maintain the skilled workforce, Employees should be provided timely training by
the organisation to work more efficiently and effectively (Masutha and Rogerson, 2014).
* It need to provide a timely motivation to it's existing employees. It can be done through
appreciation, incentives or anything else, which will improve the willingness of the employees to
work with the organisation and develop a kind of loyalty towards the firm.
* A safe and secured environment should be provided by the cited firm to the employees to
develop a secured feeling in their minds which will help in lessening employee turnover.
* It should also look towards the social needs of the employees which will help them to maintain
good relations with the other employees of the organisation and a kind of team spirit will result
in more returns to the organisation (Glaub, Matthias, Frese and Fischer, 2016).
 COMPETITIVE ADVANTAGE
The cited firm,i.e., Bestway holds a good competitive advantage in the market over its
competitors. In order to continue with this advantage in the long run, the firm must spent a high
amount of its investment on
Customer Retention
Marketing
Providing timely Solutions for the consumer grievances
Expansion and Diversification of it's existing market
3. INVESTMENT ON DIVERSIFICATION
With the analysis, it shows that the Bestway Holdings has a great diversified business. It has
greatly diversified and expanded it's business. In order to continue with this advantage, the cited
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firm has to make more scope for the diversification in its investment plans. Investing more in
expansion and diversification will lead to more competitive advantage to the firm, which will
lead in more strengthening of the firm (Carter and et.al, 2015).
It should make more investment on warehousing. With this, it can expand its business activities
as it can allow the producer to increase its production.
Ansoff's Matrix
Market penetration
Existing products should be sold in the existing markets to achieve more profits.
Market Development
New markets should be approached to sell existing products by Bestway Holdings Ltd.
Product development
New products should be provided to existing markets to maintain effective performance
Diversification
More new products should be sold to different markets to earn revenue.
C) Justification to expand business areas
In today's growing competitive world, a firm has to invest a huge amount in its expansion
to survive and earn profits in the market. Likewise, Bestway Holdings Ltd, which is a cement
based industry, need to expand and diversify its business activities.
The cited organisation has already expanded it's commercial activities in different areas such as,
it operates in providing wholesale services, banking services, cement industries, pharmacy and
real estate.
Firstly, the firm should focus on creating new areas for development in it's existing firms
like, in their wholesale industries, it can expand its venture by creating or attracting more
customers by providing special sales offer or by providing effective outsourcing services to the
customers.
The mentioned firm's cement industry supply materials in South Africa, Sri Lanka,
Afghanistan and India. It can expand its commercial activities to different Asian nations as well.
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It will lead to more recognition for the firm in different nations, which will lead to create more
brand image and in return will generate more profits for the firm (Seethamraju, 2015).
The company provides with it's banking services in the Asian sub-continents. It can
provide its bank related services to other countries and continents as well. This expansion will
assist the mentioned organisation to gain a name and fame in the international market.
The biggest growing market lies with the Real Estate or property dealing. More
expansion of these services can bring a major turnover for the cited firm. Currently, it provides
these services only in certain limited areas like London, Edinburgh , Glasgow and some more.
This can be expanded to many more cities.
Along with the existing ventures, the cited firm should expand it's ventural activities to
different industries and services. One of it can be of a new venture in Hotel industries. The
demand for hotels in the industry is ever increasing with the growing population. The cited firm
can invest and start a new business activity,i.e., A new Hotel or Restaurant. A new restaurant
catches many eyes (Cassar, Ittner and Cavalluzzo, 2015).
In today's business world scenario, there is a growing trend of online stores. Bestway can
make an invest to start its online stores for new business or the existing business activities.
As it is a cement based industry, it can start up with its own construction and engineering
company. This may generate more profits for the cited firm, as it can get it's one of the most
needed raw material for such kind of industries, i.e., cement through its self owned company.
TASK 3
A) Assessment on existing plans and objectives
Business goals are to be implemented in effective way so that it may be achieved within
stipulated time frame. As such, planning is essential required so that business can flourish in the
best possible way (Hilmersson, 2014). Without planning, business cannot achieve goals in
effective manner. Business goals is classified into short, medium and long term goals. The goals
are required to be achieve so that business may be able to accomplish common targets. The
business goals may be like revenue, customer service goals, employee appreciation and
community outreach goals as well. Bestway Holdings is required to prepare and implement
business goals so that results may be accounted for.
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The short-term goals such as revenue generation up to 8 % might be a short-term goal.
Organisation is to achieve this target within one year. For this, strict strategies need to be
implemented such as maintaining adequate level of production, hard working workforce etc. The
overall progress of short-term goals is quite good and as such, workforce is trying best to achieve
target within one year. On the other hand, medium-term goals are to be achieved within span of
less than five years. For such, company plans to broaden production site so that more items may
be achieved. The progress is however not good as land has not been purchased having broad area
(Hillary, 2017).
The long-term goals on the other hand are required to be achieve within the span of more
than five years. This is purely based on estimation by the Bestway Holdings Ltd as business
cannot forecast such long period as future remains uncertain. The long-term goal is expanding
business to various markets to garner more profits. For this, well-structured strategies are need to
be implemented so that goal may be accomplished effectively. Bestway Holdings is effectively
trying to achieve it by expanding to global markets and as such, progress is good. As such,
business goals are required to be accomplish so that business can garner profits and established
brand image in effective way (Ritchie, 2015).
B) Review of business plans and suggesting changes
The business plan made is good but should be implemented certain changes in it so that it
may be achieved by Bestway Holdings Ltd in effective way. The opportunities for company is to
make more growing demands of products in global as well local market. For this, it has to ensure
that customers' are satisfied in the best possible way. The business plan had to be made in
congruence of such opportunities so that goals may be achieved quite effectively. As such, such
opportunities like wide range of products and services and global reach has to be achieved and is
adequately achieving it in accordance with business plan (Sahut and Peris-Ortiz, 2014).
For achieving adequate production, it should hire more efficient skilled workforce. As
such, for employee engagement in the production, proper training needs to be imparted. This is
the way in which employees' will be engaged in achieving required level of production with
much ease. Training and development will help them to articulate in effective way and they will
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be able to produce more effective and efficient results in the best possible way. The business will
produce more by properly training workers and as such, better results will be accomplished.
Suggesting ways for achieving long and medium-term goals, organisation should focus
on alternatives available to achieve such goals and in accordance to this, goals can be achieved
with much ease. Adequate focus should be made on accomplishing goals so that it may be
achieved within time frame. Without focus, goals may be overlapped. Bestway Holdings Ltd has
another opportunity which is it is having good customer base as wide range of products are
supplied by it. For this, it should focus on strengthening global reach to more nations so that it
may garner profits and satisfied customers' as well. The production site which is medium-term
goal should also be achieved by purchasing land where transportation can be easily made and
lower costs are incurred to company (Abebe, 2014).
Financial ratios shows that marketing strategies need to be effectively implemented so
that promotions can be done regarding selling of products and profitability ratio can be increased
by more than 5.5 % in coming year as it was 5.19 % in 2003 financial year. Production should
also be increased by implementing advanced production techniques and as such, suppliers can be
paid timely payment thereby, increasing current ratio to ideal one i.e. 2:1.
Gross profit ratio of Bestway Holdings Ltd is 5.07 % and 5.18 % in both financial years.
The ratio is quite less as compared to its competitor. Thus, it needs to make changes in marketing
by taking steps to promote products. This will lead to increase in sales up to high extent and
gross profit ratio can be effectively increased. Financial condition will be improved as well.
Moreover, staff should be hired so that production may be achieved quite easily. This will help to
achieve efficiency and profitability ratios can be increased.
C) Producing action plan
The changes implemented in the business will provide effective results but on the other
hand, confusion and miscommunication will be evolved. To overcome this problem, action plan
need to be prepared so that changes may be implemented with much ease for the betterment of
the organisation. For implementation of changes with much ease, Kurt Lewin model of change
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can be implemented so that resistance factors may be minimised up to high extent. This model is
divided into three stages which are as follows-
1. Unfreeze-
This is the first step in this model of change which is based on making realise employees
so that resistance can be avoided by them. As the diagram conveys that organisation has to
convince to workers regarding the need of implementing such change to show them inefficiency
in existing business plans (MacDonald and Coffield, 2015). The main aim of this stage is
regarding to get employees convince ignoring resistance. When changes are applied, several
questions will be quoted by them and as such, management has the responsibility to answer such
questions in that way which will increase scope of Bestway Holdings Ltd operations and
business in effectual manner (Lewin's Change Management Model, 2018).
2. Change-
This is the stage when employees have given their consent regarding implementation of
listed changes so that goals may be effectively achieved with much ease. Changes will be
adopted so that business may able to grow quite effectively. Employees will develop positive
attitude towards such changes and will observe benefits with implementation of such changes.
As such, organisation can initiate action plan and observe fruitful results.
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Illustration 1: Kurt Lewin Change model Source: rapidbi.com

3. Refreeze-
This stage conveys that employees will do hard work by complying with necessary
changes and as such, greater productivity will be achieved by company. Employees will try to
cope up with changes and at this level, resistance from workers will be least or even low. The job
descriptions will be clearer to employees and as such, refreeze level is attained. Afterwards,
constant monitoring is required so that workers are strictly adhered to implemented changes.
Thinking can be considered as change factor model as employees' are required to accept
changes and as such, there thinking has to be changed so that organisation can achieve goals by
implementing such change.
Action plan for proposed changes for sales, marketing and production. Bestway Holdings
Ltd needs to generate publicity and promoting among public so that marketing can be done with
much ease. Moreover, for injecting production, organisation is required to assess finance and as
such, with adequate funds machinery could be purchased so that more production may be
achieve by it. It should also analyse that whether proposed change will bring increased efficiency
or not. Thus, constant monitoring is required to refine action plan.
Furthermore, for proposing change related to sales, organisation need to follow well-
structured strategies which are followed by competitor such as W H Smith Retail Ltd so that
sales can be injected and profit can be accomplished quite effectively.
Strategy Time period Targets Resources Actions to meet
target
New product
development
Within one year Adults Efficient staff
with innovate
ideas
To have enough
promotions on
various
communication
channels.
E commerce
Provider
Within six
months
Young people Advance and
effective
technologies.
New software etc.
Partnership with
leading website
provider. Getting
license to sell
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online beverages
TASK 4
A) Impact on business personnel
The impact on business personnel can be positive and negative as well. Changes are
inevitable and as such, it is necessary to achieve it to gain competitive advantage (Spence, 2016).
This is not an easier task but requires that organisation is flexible enough to attain goals by
applying changes. Thus, changes should be implemented and planned in accordance with staff so
that unique selling point may be attained by organisation. The positive and negative impact are
as follows-
1. Positive impact-
The implementation of changes will have positive impact on employees and staff as they
are highly motivated to adopt such changes. As such, coordination will be achieved as
information flow will be effective enough. The workers will be motivated in the best possible
way as participative style will be adopted. As such, employees will have great sense of
participation and as a result, overall productivity may be gained in Bestway Holdings Ltd. New
opportunities can be evolve as one employee who had trained in handling any machinery can
easily train another by imparting guidance to him (Nguyen, Newby and Macaulay, 2015).
Moreover, business may be able to stay on current industry trends and as such, competitors'
strategies may be easily extracted. Change will have a positive effect as employees' efficiency
will be increased up to high extent.
2. Negative impact-
Change has several positive impact on business personnels but has certain negative
impact as well. Employees will have adverse effect on their health as they might indulge in
mental stress and lack of managing work. They may strictly resist adopting changes and as such,
management will have to convince them to adopt such changes by conveying benefits of such
changes when implemented. Company may adopt cost saving policy and this will lead to
decrease in wages, this will not be liked by employees and as such, they may even leave
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organisation. The resistance can be overcome only when workers equally contribute towards
such change. They might hesitate to do this and as such, conflicts might rise between
management and workers.
B) Producing plan for managing business
Change is the only way for organisation to maintain brand image and corporate identity
in the best possible way. Business is required to adopt change so that it may not be driven away
by the competitors in any way. Active participation can help staff to implement changes in
effective way and as such, decisions may be made in effectual manner (Henrekson and
Sanandaji, 2014). This will help management to take feedbacks for enhanced motivation of
employees. For managing such changes effectively, Kotter's 8 step model of change can be used
by Bestway Holdings Ltd.
First step states that to create urgency so that change can be developed in the mind of
employees. They should adhere to requirement of such changes for growth of organisation. In
second step, employees will lead towards adopting such change as management has motivated
them for adopting quite effectively. Third step is dealt with designing need for changes in
various systems and to ensure smooth flow of changes. Fourth phase deals with sharing of
information to workers and strengthening communication system. Next step deals with
identification of barriers and ensuring removal of such barriers so that smooth flow can be
attained with much ease (Olson and Wu, 2017).
Sixth step conveys that short-term goals are required to be implemented so that success
will lead to enhanced level of satisfaction of employees in the best possible way. Early targets
should not be implemented otherwise it will be expensive for firm regarding change. Providing
rewards to employees who have helped to meet the common targets in effectual way. Second last
stage deals as Kotter argues that victory should not be stated early as failure occurs at this stage
only. Instead of this deep thinking should be adopted to build change into the deeper sight.
Building on such change as such, organisation need to incorporate constant important so that
change can be managed with much ease. Last step provided by Kotter model of change is to stick
around culture so that change can be effectively supported. Organisation need to incorporate
positive efforts so that long-term benefits may be achieved by applying such change.
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Implementation of changes in production, sales and marketing can be done by following
manner listed in steps-
1. Organisation need to create good environment so that employees' may work out together and
thus, production may be achieved.
2. Transformation is required so that team may be build with trust. It will put forward need for
sales and marketing.
3. For effective sales, action plan may be launched so that sales may be achieved with desired
profit. This ensures that employees' are determinant towards work which should provide desired
sales.
4. Committing employees to work constantly so that no reduction may prevail. Thus, monitoring
is required. This way changes can be implemented with full efficiency of workers.
C) Improvements in the performance
Performance is required to be improved so that business may be able to perform better.
The performance of Bestway Holdings Ltd has been increased over the past two years. The
turnover of company has been increased up to high extent as it is increased by 9 % which was
3.01 billion euro and increased to 3.28 billion which are commendable figures which shows that
performance is surely maximised up to great extent. Moreover, overall profit before tax
increased up to 5.8 % as it was 390.5 million and roused up to 413.3 million which shows that
company is on right track and satisfying customers in the best possible as the figures are
remarkable (Brustbauer, 2016). This shows constant improvements are initiated which has
benefited organisation quite effectively. Thus, overall profit has increased up to 6 % and as such,
it has more assets than liabilities which shows efficiency of organisation. Moreover, employees
are also increased in numbers which are the major reason for success of organisation.
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As the diagram conveys that constant improvements have been initiated which has
provided great turnover figures to company and as such, profitability position of organisation is
continuously improved quite effectively. Over the years, it has expanded into different
businesses each of them leading to enhanced performance be it cement industry, wholesale
sector, bank or pharmacy sectors. It has constantly initiated changes and adopted it which has
produce effective results within short span of time. Moreover, it has acquired other firms which
has led to doubled employees and other resources. Another benefit of such improvement is that
skilled workforce have been hired which has injected sales and as such, profits are being
generated in the manner (Mason, 2015). As such, it can be conveyed that constant improvement
in the performance have been achieved and company is on achieving more goals with much ease
in near future.
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Illustration 2: Source: company.check.co.uk

CONCLUSION
Hereby it can be concluded that small business enterprise is required to formulate
effective strategies and also implement them in time frame so that adequate results can be
achieved by it with much ease. However, it is required that business should formulate proper
business plan. Moreover, change in organisation should be adopted so that business can go ahead
with current industrial trends and resistance from employees should be reduced up to great extent
so that benefits may be accomplished by incorporating such changes. Various performance
measures should be adopted to measure employee's performance and suggesting ways to improve
upon it.
21

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25

APPENDIX 1
Bestway
Holding
Ltd
W H Smith
Retail Ltd
Particulars Formula 2003 2002 2003 2002
Liquidity
ratios
Current ratio
Current assets / Current
Liabilities 0.98 : 1 1.45 : 1 1.06 : 1 1.12 : 1
Quick ratio
Liquid assets / Current
liabilities 0.53 : 1 0.92 : 1 0.79 : 1 0.80 : 1
Profitability
ratios
Gross profit
margin
Gross profit / net sales *
100 5.18% 5.07% 35.33% 38.53%
Net profit
margin
Net profit / net sales *
100 2.79% 2.47% 5.81% 4.00%
26

APPENDIX 2
Particulars Formula
Liquidity ratios
Current ratio
Current assets / Current
Liabilities
Quick ratio Liquid assets / Current liabilities
Profitability ratios
Gross profit margin Gross profit / net sales * 100
Net profit margin Net profit / net sales * 100
27