Small Business Management and Success

This assignment delves into the complexities of small business management, covering topics like start-up processes, growth strategies, and the importance of innovation. It examines various success factors for small businesses and explores the challenges they often face. The provided readings offer diverse perspectives on entrepreneurship, enterprise culture, and the role of networks in driving small business performance. Students are expected to analyze these concepts and demonstrate their understanding through research and critical thinking.

SMALL BUSINESS
ENTERPRISE

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Profile of a small business enterprise....................................................................................1
1.2 Analysis of business with help of comparative measures of performance............................2
TASK 2............................................................................................................................................3
2.1 Actions taken to overcome with weaknesses of company.....................................................3
2.2 Ways and methods through which performance can be maintained.....................................4
2.3 Recommendation for expansion of activities in new areas...................................................5
TASK 3............................................................................................................................................5
3.1Assessment of current business objectives and plans.............................................................5
3.2 Revision of business plan to implement changes..................................................................6
3.3 Devise an action plan for implementation of changes...........................................................7
TASK 4............................................................................................................................................8
Covered in PPT............................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
In this present modern world, corporate organization has its own significance. Business can
be understood as an economic system in which goods and services are exchanged for purpose of
money and or for in kind. In other words, any organization whose main aim is to earn profits by
rendering services to their customers is known as business enterprise (Ackermann and
Audretsch, 2013). Beside this, small business enterprise is an institution which is established
with less than 50 employees and its turnover is extended up to 10 million pounds. In this report
strengths and weakness are discussed of a small business enterprise namely, Elm Tree Hotel.
Also, analysis of business is done with the help of comparative measures of performance.in
addition to this, appropriate actions are also taken in respect of overcoming its weakness in
business. Likewise, management of cited organization has also initiated with an action plan for
corrective implementation of changes.
TASK 1
1.1 Profile of a small business enterprise
Small business is an enterprise which can be considered as a privately owned institutions
which has few employees and revenue than a regular sized corporation. It can be commenced in
any sector like retail, services sector etc (Altman, Sabato and Wilson, 2010). In this context, a
profile of Elm Tree Hotel is created. This is a small level hotel which is situated in UK which
provides amenities like Wi-Fi, Internet, tea, coffee etc. it also renders a sea front accommodation
to its respective customers. In this regard, its strengths and weakness are also given to have a
close analysis of internal and external effects of cited organization.
 STRENGTHS:
 Elm Tree Hotel adopts a strategy which is related to focus more on its respective
customers. Also, it is consisting of low Bureaucracy.
 Moreover, in this cited organization, top management or senior management system is
highly visible and active in conducting business operations.
 It offers a large variety in rendering food services. Also, the staff of cited hotel is
comprised of quality and professional hospitality employees which are qualified in
providing excellent customer services (Blackburn, Hart and Wainwright,2013).
 The Elm Tee hotel attempts to create a healthy and peaceful working environment.
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 WEAKNESSES:
 One of the biggest weakness of cited hotel is lack of proper finance and its related
facilities.
 Also, it creates a threat of lower security of job with inferior standardization.
 Major weakness of cited hotel is slow customer’s services.
 Sometimes employees do not behave with its respective guests and visitors in a prompt
manner (Bridge, S. and O'Neill, K., 2012).
 Tariff and charges of staying in hotel are expensive and not in accordance with the norms
for SMEs.
 OPPORTUNITIES:
 If cited firm aim to sell its brand name in more effective manner, then it will start earning
more profits.
 There are more chances of investment in capital in UK.
 THREATS:
 Competitors like The Boutique Hotel and The Imperial hotel are considered as biggest
competitors of said service provider.
 New policies and charges levied by Government of UK.
1.2 Analysis of business with help of comparative measures of performance.
It is provided vital as to monitor and analyse performance of company in regular time
intervals. In this light, there are various measures which are used to compare measures of
performance. which are used to make sure effective assessment of different factors (Burrows,
2015). The Elm Tree Hotel is an organization which provides hospitality services to its
consumers and guests. The said hotel is very much apprehensive in regard to maintain and
sustain quality of services to its customers in context of food, accommodation etc. It attempts to
deliver quality of services at a reasonable cost so that they can retain their customers in an
effective manner. Also, management of cited enterprise has opted for performance management
techniques. Considering this, it can be assessed that decision making system of small business
enterprises differs from big sized corporate institutions (Walker and Brown, 2004). There are
many measures through which performance can be measured which can be characterised as:
 Net profits.
 Gross profits margin.
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 ROI.
 ROE.
The cited organization has to select accounting data methods for enabling assessment of
performance as these methods are timely in nature, with precise and object oriented
characteristics (Carraher and Paridon, 2015). With the help of said method, employees of a
company are in a situation to react in a positive manner. However, these methods are not
considered as adequate in nature, as they lack behind in aspect of indicative content.
TASK 2
2.1 Actions taken to overcome with weaknesses of company
It is considered as important factor to analyse major weaknesses of organization. In this
light, it’s also considered as vital to properly analyse and assess its weakness and threats so that
it can be overcome in an effective manner (Down, 2010). It is due to reason that flaws or
weakness in any company hampers its performance and also leads to deterioration of its
operating activities. Due to weakness of company, losses occurs. It can be noted that Elm Tee
Hotel lacks in customer satisfaction, financially performance and also developments in internal
business process. So, the management of cited organization is required to work on said flaws so
that they can work upon them.
In this regard, the managers of Elm Tree Hotel have implemented The Six Sigma method,
to overcome with its weakness. It is a procedure which enable business corporations to enhance
and hike their profits through developing quality of services provided to its customers. Along
with this, it aims to reduce flaws and defects of enterprise.
Apart from The Six Sigma method, senior managerial person of cited hotel has also
adopted some corrective measures in aspect of weakness, which can be characterised as:
 As, one of major weakness is high costs and rents, tariffs which should be compensated
with huge expectance of proceeds or incomes (Ebert and et. al., 2014).
 Also, cited hostel is located in North Parade, which is a bit occupied area with crowd. In
this light, administration and management department should make proper actions to
make parking facilities appropriately.
 In addition to this, method namely First in First Out should be used to maintain stock and
sale replacement.
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 Employees and workers of said hotel should be properly trained and educated in context
of hospitality services, so that they can represent themselves in front of guests, in an
amicable manner.
2.2 Ways and methods through which performance can be maintained
In order to manage and monitor effective control and administration in a company, it is
necessary to have an eye on efficient strategies, that make a company able to perform in an
amicable manner (Forsman and Temel, 2011). In this perspective, Elm Tree Hotel has accepted
varied rage of techniques and approaches by which growth and prosperity of entire business
organization is made. Some of techniques are as:
 Total Quality approach: It is a technique, through which a company is able to render its
products and services in a quality manner. Considering this, cited hotel has also adopted
TQ approach because it is a technique which makes addition in credibility ad strength in
its premises. Likewise, this method also motivates to work in accordance with ethical
principles and norms. In other words, it is a way in which cited business organization
focus to render quality services to its customers, in terms of food and accommodation so
that they can retain their customers and create an authenticate image and goodwill in
minds of consumers.
 Evaluation of needs and requirements of staff: It conveys a meaning that proper
analysis and assessment of requirements of its employees and workers should be timely
done. It will motivate them to perform better in providing services to its customers
(Burns, P., 2010).
 Effective communication: Management of said hotel should create and maintain
operative communication which helps them to communicate with its employees so that
requirements and wants of guests can be met in a quick and remarkable manner.it should
develop Honest communication in premises of Elm Tree Hotel.
 Eye check on Cash flow: It is rendered necessary to monitor and control cash flow on a
continuous basis, which is fundamental and core component to maintain effective
performance. it will keep a regular eye check on whether any ensure and planned
expenses of hotel.
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2.3 Recommendation for expansion of activities in new areas
In order to conduct business in a profitable manner, it is necessary to enable expansion of
business activities in a smooth manner. Expansion of business signifies to make its management
structure less centralised and also elevation of level of internal policies and dissension in regard
to goals and objectives of the company that are targeted by management to achieve (Gill and
Biger, 2012). It also means to expands its area in aspect of market share in current marketing era,
through which new strategies can be formed in aspect of dealing and maintaining relationship
with its rivalry companies. Considering this, Elm Tree Hotel also aim to expand its area of
operations in different areas. It will result in overall development and profitability of company.
The manager of cited hotel aims to enlarge its activities with help of following methods and
approaches:
 The Ansoff Matrix: It can be considered as a mechanism which signifies new areas in
which activities related to business can be generated. It is related to market penetration,
product development, market development and total diversification.
In this concept, market penetration is a term which conveys to make hike in sales of a
company. So, through this, Elm Tree hotel should supply proper and adequate services, which
will result in profitability (Gronum, Verreynne and Kastelle, 2012). In this light, he cited hotel
should focus on to develop new segment in market and also head towards new geography.
 PESTEL Analysis: It consists of external analysis of an organization to have an
appropriate and close assessment in terms of various external and internal sources.
Through this, cited institution is in a situation to have a knowledge regarding political,
economic, technological and legal aspects that impacts working of their hotel.
 Business expansion strategies: There are various strategies which are responsible to
enhance strategies and techniques by which the company can expand its area of
operations. These can be classified as franchising, licensing, acquisition and mergers etc.
TASK 3
3.1Assessment of current business objectives and plans
Objectives and goals are those terms and concepts which are treated as vital for each and
every organization (Hatten, 2015). They serve as a basis of formation of plans and
implementation of strategies to attain profitable results. In this light, the management of Elm
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Tree Hotel has framed certain aims and objectives, which majorly includes to satisfy customers
and visitors by identification and satisfaction of their needs and requirements. The main aim and
objectives of Elm Tree Hotel can be seen at a glance:
Aim: To become one of the leading hotel in aspects of providing quality services and
amenities to visitors and guests in terms of food and accommodation aspects.
Objectives: the main objectives being set by management of cited hotel are as follows:
 To become excellent restaurant in an area in which it has been established.
 To maintain 70% gross margin per year.
 To provide best and appropriate quality food which should be hygienic and healthy in
nature.
 To be leading one in identification and fulfilling demands and requirements of its guests
and visitors.
It has been comprehended that cited business enterprise has accomplished its objectives set
out earlier, but for now, the management of Elm Tree hotel has realised to elaborate them in an
effective manner. They have attained their goals by supplying and rendering quality hospitality
services to its customers and guests (Olson and Staley, 2012).
Elm Tree Hotel has:
 Rendered its customers with quality products and accommodation and other amenities at
a competitive price.
 Also, an appropriate convenient technique should be supplied to its customers and guests.
 Established the method in which Elm Tree hotel has cherished its patronage and loyalty
through donation of money for personal reason.
 Cited hostel has made effective techniques to attract customers and impact them in a
good way.
3.2 Revision of business plan to implement changes
A business plan is an idea in which various tactics and strategies are mentioned in order to
maintain effectiveness and achieve goals and objectives of company. The Elm Tree Hotel has
adopted an approach in which obtaining access of new customers and retaining the old ones has
been focused upon (Schaper and et. al., 2014). Along with this, it has achieved a loyal customer
base, which is a significant concept as customer core will not only evolve sales but it will also
give referrals which are favourable in nature.
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It is a notable fact that cited organization finds itself at a unique position. It aims to create
an environment in their premises of hotel where their customers not only enjoy living but also
relish in swimming pool and other games section also. Effective services delivered by staff of
hotel as well as comfortable sitting area also contributes its role to enable customers in relaxing.
It is considered necessary to develop an effective business plan which is related to attainment of
set goals and objectives (Storey, 2016). In this dynamic world, preferences and tastes of
customers are also fluctuating. So, in order to make operating activities of hotel compatible with
changing environment, it is necessary for management to create and boost flexible business plan.
It should also include, introduction of new policies and regulations or upgradation of existing
ones. The employees and workers of company should also make effective changes in respect to
the presentation skills while serving food. Also, rooms should be decorated in sober manner.
3.3 Devise an action plan for implementation of changes
Action a plan is a concept in which strategies and techniques to monitor changes in
environment of company is mentioned. In this regard, managers and leaders has Elm Tree Hotel
has framed its own action plan (Thornton, Ribeiro-Soriano and Urbano, 2011). It is deliberated
as vital thought or an idea because tastes and preferences of people are changing and assessment
of variations should be monitored on a continue basis. So, in direction to work in changing
perspective era, the cited hotel has also adopted various changes in their action plan. It can be
understood in following manner;
 The Elm Tree Hotel should create and boost up an effective relationship with local and
regional communities and people in a way which includes to provide quality services to s
customers. It will render them good and positive results.
 The management of hotel should focus on to demands and requirements of customers in
case of any main course or breakfast or lunch aspect (“Elm Tree Hotel, Llandudno”,
2017).
 They should focus on to implementation of strategies through which they would be able
to understand difference of their organization with other competitors.
 The next step in action plan includes to have a periodic and regular eye check on its value
of competition. A check list for a purpose of evaluation and comparison with its rival
companies should also done.
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 Improvements should be made in respect of services in which cited hotel has
specialisation.
 Changes and variations that are planned to be implemented in a working area of company
should be introduced to its employees and workers to ensure maximum effectiveness and
efficiency.
TASK 4
Covered in PPT
CONCLUSION
From the above report, it can be concluded that small business enterprises are those
enterprises which are established with fewer employees and generates revenue less than other
companies. In this report, a profile of The Elm Tree Hotel has been created by having an
assessment of its strengths and weaknesses. Also, various services that has been offered by cited
organization. In this light, there are various methods by which performance can be measured are
also given. In addition to this, an action plan in regard to cited hotel to implement changes has
also been discussed.
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REFERENCES
Books and Journal
Ackermann, S. J. and Audretsch, D. B. eds., 2013. The economics of small firms: A European
challenge (Vol. 11). Springer Science & Business Media.
Altman, E. I., Sabato, G. and Wilson, N., 2010. The value of non-financial information in small
and medium-sized enterprise risk management. The Journal of Credit Risk, 6(2), p.95.
Blackburn, R. A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development, 20(1), pp.8-27.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small
business. Palgrave Macmillan.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave
Macmillan.
Burrows, R. ed., 2015. Deciphering the Enterprise Culture (Routledge Revivals):
Entrepreneurship, Petty Capitalism and the Restructuring of Britain. Routledge.
Carraher, S. M. and Paridon, T. J., 2015. Entrepreneurship journal rankings across the
discipline. Journal of Small Business Strategy, 19(2), pp.89-98.
Down, S., 2010. Enterprise, entrepreneurship and small business. Sage.
Ebert, R .J and et. al., 2014. Business essentials. Pearson Education Canada.
Forsman, H. and Temel, S., 2011. Innovation and business performance in small enterprises: an
enterprise-level analysis. International Journal of Innovation Management, 15(03),
pp.641-665.
Gill, A. and Biger, N., 2012. Barriers to small business growth in Canada. Journal of Small
Business and Enterprise Development, 19(4), pp.656-668.
Gronum, S., Verreynne, M.L. and Kastelle, T., 2012. The role of networks in small and medium‐
sized enterprise innovation and firm performance. Journal of Small Business
Management, 50(2), pp.257-282.
Hatten, T. S., 2015. Small business management: Entrepreneurship and beyond. Nelson
Education.
Olson, D. L. and Staley, J., 2012. Case study of open-source enterprise resource planning
implementation in a small business. Enterprise Information Systems, 6(1), pp.79-94.
Schaper, M. T and et. al., 2014. Entrepreneurship and small business.
Storey, D. J., 2016. Understanding the small business sector. Routledge.
Thornton, P. H., Ribeiro-Soriano, D. and Urbano, D., 2011. Socio-cultural factors and
entrepreneurial activity: An overview. International small business journal, 29(2),
pp.105-118.
Walker, E. and Brown, A., 2004. What success factors are important to small business
owners?. International small business journal, 22(6), pp.577-594.
Online
“Elm Tree Hotel, Llandudno”, 2017. [Online]. Available through:
<https://www.tripadvisor.co.uk/LocationPhotoDirectLink-g190724-d3748172-
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i74627626-Elm_Tree_Hotel-Llandudno_Conwy_County_North_Wales_Wales.html>.
[Accessed on 05th July, 2017].
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