Small Business and Entrepreneurship Studies

This assignment is a comprehensive study of small businesses and entrepreneurship. It provides an overview of various research articles on the topic, covering aspects such as factors affecting business success, entrepreneurial orientation, and marketing practices in small and medium enterprises (SMEs). The analysis includes discussions on E-marketing use, open innovation in SMEs, and sustainability engagement. The assignment also touches upon socio-cultural factors and entrepreneurial activity, as well as the importance of training and development for businesses.

Small Business
Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
1.1 Profile of business enterprise along with its assessment..................................................1
1.2 Carrying out a business analysis through comparative measures....................................2
LO 2.................................................................................................................................................4
2.1 Recommendation of ways to overcome weaknesses........................................................4
2.2 Analysis of ways through which existing performance could be improved....................5
2.3 New areas of expansion for business................................................................................6
LO 3.................................................................................................................................................7
3.1 Assessment of existing business objectives and plans.....................................................7
3.2 Revision of business plans to introduce changes.............................................................8
3.3 Preparing action plan for implementation of changes......................................................9
LO 4...............................................................................................................................................11
4.1 Impact of proposed changes on Business and personnel................................................11
4.2 Planning the manner in which changes will be managed...............................................11
4.3 Analysing the improvements of business performance..................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The government of United Kingdom defines small business as an enterprise which
employs workforce ranging from 10-50 people. The annual turnover is defined to be residing
between 2 to 10 million euros. It is defined to be employment engines of the economy. The
government have recently took up various initiatives and programmes to promote the level of
entrepreneurship in the region (Aremu, and Adeyemi, 2011). This assignment takes into
consideration working of The Elm Tree hotel. It is an small enterprise catering its services in the
hospitality sector. This organisation have taken assistance from a small consultancy firm known
as CAPCO to carry out its business planning for the future. The various aspects which will be
covered in this report are investigation of performance of business through comparative analysis.
The business will be assessed so that changes in the enterprise could be introduced and business
performance could be improved.
LO 1
1.1 Profile of business enterprise along with its assessment
The Elm Tree Hotel is an enterprise dealing in the hospitality sector of the country. This
hotel is located in Llandudno Bay, UK and possess 14 luxurious room which serve best in class
accommodation. Along with ideal rooms, there are presence of renowned public lounge and
terrace garden which makes this enterprise more tempting than ever. The owners and workforce
is trained to deliver life-long experiences to consumers with its services and attention to
detailing. Recently this hotel has been awarded with “No. 1 Boutique hotel in the United
Kingdom” for the year 2018.
This hotel marks its presence in the Wales' largest coastal resort which is known for its
award wining ambience. This place is known for its beaches, quiet and peaceful which makes it
one of heavenly place to visit in the country. Llandudno is growing as a major tourist attraction
in the recent times which carries a direct impact upon the sales outcomes of this boutique hotel
(Barbero, Casillas and Feldman, 2011). The presence of local events and attractions such as
Llandudno Pier, The great Orme and copper mine are very well renowned. All of these locations
are known to be at walking distances from hotel which is another major factor for visitors to
avail services of this enterprise.
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To further understand market standing of an enterprise, it is essential to conduct an brief
analysis of strengths and weaknesses so that decisions for future can be taken in the best manner
possible. The identification of strengths and weaknesses of business are as follows:
Strengths: These are referred to as major factors which could be capitalised upon by
business enterprise for further enlargement of operations (Blackburn, Hart and Wainwright,
2013). The major strengths of this business are its goodwill among small enterprises. The
location and luxurious services which are offered by this enterprise helps in emerging as best
hospitality service provider in town. It is a boutique hotel which can be a major attractions for
people who are looking to have a distinct experience.
Weaknesses: These are refers to the areas which a businesses needs to work upon so that
better position in the market could be availed (Bridge and O'Neill, 2012). The small size of this
enterprise makes it one of the major factor which can cause potential harm to the enterprises. The
costing and seasonal nature are another factors which makes it difficult for enterprise to carry out
its operations in the ideal manner. The competition from mega corporations is a major factor
which is to be countered by an enterprise.
1.2 Carrying out a business analysis through comparative measures
A business operates so that better financial results could be achieved. Therefore it is
extremely important for a business enterprise to take into consideration financial measure such as
balance sheet, ROI, customer's satisfaction and profit and loss account. The Elm Tree Hotel is
known to be one of the best small scale hotel in the country but still it is important form
benchmarks so that financial performance of business could be compared with another enterprise
(Broekemier, Chau and Seshadri, 2015). The balance sheet of The Elm Tree Hotel is as follows:
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It can be assessed from the above presented balance sheet that there is an significant
increment in the current assets of the company. On the other hand, there is a minimal decline in
the current liabilities of resulting in positive balance with the company. Without addition of
share capital company is able to achieve break even and attain positive results.
But it is extremely important to compare performance of an enterprise with another
business so that a broad view could be gauged (Burrows, 2015). Devonshire house hotel is an
enterprise which is known to be a major competitor of this Elm Tree and known to be industry
leader in small hotel industry. The balance sheet of Devonshire house hotel is as follows:
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Upon comparing the two, it can be easily accessed that Devonshire definitely possess a
better standing in the market. The financial position of this organisation is way more stable
which is reflected through its balance sheet. The current assets of Devonshire is higher when
comparing the two small hotels and will definitely support in taking up business development
programmes and strategies.
LO 2
2.1 Recommendation of ways to overcome weaknesses
The weaknesses which are identified during assessment are to be resolved so that
performance of an organisation can be uplifted. The Elm Tree hotel is encountered with issues
such as higher cost of operations, competition from large corporations and financial constraints.
These issues are required to be address with factors which are mentioned below.
Assistance from government: The inclination of the government can easily ascertained
upon the small enterprise sector. There are numerous programmes and funding schemes which
have been launched by the government so that performance of such business can be sustained in
the market for longer period (Chittithaworn and et. al., 2011). It has been identified that
government is planning to spend additional 3 billion euros so that small and medium sized
organisation are able to prosper in the market.
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Economies of scale: This is an enterprise which is carrying out its operations on a
comparatively small scale which means there are higher costs involved with the operations
which leaves little profitable margin. The assistances which has been availed through
government can be further employed to enlarge operations so that economies of scale could be
availed. This feature will help in reduction of costs involved in the process and leaves
organisation with a better margin of profitability.
Monitoring and controlling activities: It is a known fact that, a small business enterprise
is monitored and controlled by an Chief executive officer who looks after each and every
function in a business. Therefore it is very difficult to an individual to systematically plan and
monitor activities so that better results could be availed. It is a business which is seasonal in
nature therefore it is essential to plan and monitor activities so that operations can be sustained in
throughout the year in a stable manner (Chun and Mun, 2012). The another major benefit which
can be availed through opting for ideal planning and controlling tactics is that activities and
efforts which are not beneficial can be eliminated giving rise to lean production system.
2.2 Analysis of ways through which existing performance could be improved
An organisation such as The Elm Tree is exposed to numerous challenges in the
operating environment which are to be dealt with best of strategies so that positive outcomes
could be availed. The measures which are undertaken by an organisation helps in dealing with
contingencies which may arise in near future (Cowling, Liu and Ledger, 2012).
This hospitality enterprise can maintain and strengthen their operations through
optimising their operations. This is primary area which is to be catered with attention by chief
executive officer. The elimination of activities which are not beneficial for enterprise are to be
eliminated so that only crucial activities are sustained which assists in dealing and fulfilling
needs of consumers in the ideal manner (Curran and Storey, 2016). As it is an small scale
enterprise, saving are always welcome and can further helps in strengthening other areas such as
addition of facilities of Spa and sauna.
The another crucial feature which is to be undertaken by this enterprise to strengthen their
position is to be flexible and introduce changes. The market changes are dynamic which are to be
considered along with demand and preferences of the customers. Customers are referred to a key
through which an enterprise can reach to distinct business position in the market. They are to be
intimated and informed through social digital platforms which will further ensure that products
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are marketed to prospects in the right manner. The additional feature which is to be introduced
are acceptance of payments through e-wallet platforms and cards payments to enhance
convenience.
The efforts in terms of uplifting state of expertise of employees, taste of food and
ambience should be improved for better so that it emerges as one of the ideal destination to
accommodate in United Kingdom. The promotion of strengths of business will ensure that
existing operations are strengthened and maintained (Eid and El-Gohary, 2013). The boutique
hotel which is an USP of this organisation should be promoted with some catchy phrases. During
low season, marketing promotions and tactics will ensure that cost conscious people visit and
avail services of this enterprise.
2.3 New areas of expansion for business
Increase in the operations of a business is a crucial aspect, as a enterprise will be able to
render services to extended number of people so that better sales volume and profitability could
be availed. The tool of Ansoff Matrix is deployed so that various expansion strategies could be
understood and analysed so that ideal approach is undertaken. The four dimensional strategies
relating to expansion of The Elm tree hotel are as follows:
Marketing Penetration: This is referred to as most common approach which is
undertaken by an organisation generally looking to enhance sales of an enterprise. The CEO with
the hotel can introduce price reduction policies during low season so that sales cycle could be
enhanced. The measures in this approach are undertaken with a view to increase footfall with the
enterprise. The provision of services such as online booking will enhance reach of hotel amongst
prospective buyers.
Market Development: This expansion plan aims to venture into new markets which are
yet not covered by this enterprise (Mahmood and Hanafi, 2013). Being a small scale
organisation, it is a big task to procure required funds so that a branch of this hotel can be opened
at another tourist destination. If the organisation aims to venture into new markets it can take
assistance from partnership or angel investing so that expansion plan could be carried out.
Product Development: This expansion plan focuses on offering of an enterprise. This
hospitality organisation is still confined to offering accommodation and F&B need of
consumers. The opportunity which lies with the organisation is that they can offers restaurant
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services to people who are not staying with the hotel. The passer-by should be able to have a
wonderful dining experience which leads to expansion of product portfolio of enterprise.
Diversification: This is a strategy in which a business aims to enter into market which is
currently unknown to business. It is a popular strategy which has been adopted by numerous
organisation when looking to enhance scope of operations (Oyedijo, Idris and Aliu, 2012). The
Elm Tree hotel is currently operating in the hospitality sector and does not carry enough
experience and market knowledge to venture into different segments of market as their
expansion plan.
LO 3
3.1 Assessment of existing business objectives and plans
The assessment of an enterprise's objectives and plans is a crucial step which is to be
undertaken. It is essential to conform objectives of an organisation with the operating
environment so that changes can be introduced (Philip, 2011). It also helps in determining to
what extent goals and objectives has been achieved by an enterprise.
Business objectives: Objectives are referred to goals which a business wishes to achieve
in a defined period. Objectives of The Elm tree hotel is to serve its guest with an memorable
experience delivered through its detailed services. The major objectives which are formed by this
organisation are as follows:
 To improved the delivery of service and cut down on cost of rendering services to guests.
 To avail feedback of customers so that better results could be availed in terms of
performance.
 To achieve higher satisfaction of consumers. To develop the business in the best way possible so that a superior position is availed in
the market.
Vision: A vision is determined to be the reason for which the brand have been
constructed (Storey, 2016). The vision of The Elm tree hotel is “To provide guests with an
unique and customised hospitality experience which is cherished by them for their lifetime.”
Business Plan: Business plan is mentioned to be formal statement which defines the
manner through which objectives and mission could be availed. The Business plan for The Elm
tree hotel is as follows:
Steps Explanation
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Research It is essential for CEO of hotel to conduct a detailed analysis of
internal and external environment. This feature will helps in
understanding of market dynamics. The taste and preferences
related to consumers can be identified with this approach.
Determination of purpose
of plan
It is essential to determine the reason for which this business plan
is to be constructed. The Elm Tree hotel is looking to develop this
business for its betterment.
Creation of company
profile
The Elm tree is known to be one of renowned hotel when it comes
to small scale and customised experience which is delivered to
consumers.
Documentation It is essential to document all the necessary steps so that they are
to be communicated to stakeholders of business. Along with it,
documentation also assists in making financial projections related
to future endeavours.
Selection of strategy The emphasis in this plan relates to business development.
Therefore right strategy are formulated and selected so that
objectives can be fulfilled in an error free manner (Thornton,
Ribeiro-Soriano and Urbano, 2011).
Implementation This is the last step aims to implementation of business plan upon
enterprise and ensure that right changes are attained.
3.2 Revision of business plans to introduce changes
It is important to reviewing business plans on a frequent manner so that it could be
identified that stated path of attaining business objectives is being followed or not. Therefore
aiming to introduce changes in the business requires detailed understanding of the market so that
necessary changes can be adopted (Williams and Schaefer, 2013). The short steps which are
taken by business states long term plans of the organisation. The emphasis on the cost cutting
measures are to be maximised so that right level of profitability can be achieved. It can be easily
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identified that this hospitality organisation possess a decent status in the market and would be
able to attract customer with minimal efforts. Therefore this business needs to adopt social media
marketing tactics as they are convenient and costs effective, venturing over online platforms
helps in securing businesses in an easier manner. The amount which can be saved through
utilising of contemporary marketing approaches can be utilised to further uplift quality of
services which are offered to consumers.
The introduction of business plan will raise the need of either altering or changing
objectives which are formed at the beginning of the financial year. Before implementing the
changes CEO of this enterprise will have to ensure that business possess right amount of funds so
that alterations in the environment are carried out in desired manner. The changes which are to
be introduced should only be aimed to uplift customer experience and must not bother employees
and guests relating to this enter. If changes in business determines enhancement of knowledge
and skill of employees than that is to be catered with training and development opportunities
(Training and Development, Importance of Training and Development, 2014). The emphasis
should be on experience of customer and securing maximum market share so that this business
could be developed. The manner through which resources are allocated will see an manipulation
as well as approaching to contemporary tool of marketing and communication will be more
focused rather than traditional approaches.
3.3 Preparing action plan for implementation of changes
To implement changes it is essential for a business organisation to take assistance from
suitable strategies so that targets could be achieved. The use of right action plan will assure that
there are minimum disruption throughout the process and long term strategies could be fulfilled.
However it is very important to make sure that action plan is conform with internal and external
environment so that alterations could be countered. The action plan for this business enterprise is
as follows:
Action Plan
Objectives Tasks Success Criteria Time frame Resources
Improvement in
sales
Generating
awareness, better
understanding of
Better sales
turnover
2 Months Marketing resources
such as online and
offline marketing
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target market,
generating
inbound leads
supported by
marketing tactics.
tactics.
Optimisation of
operations
Integration of
technology, cloud
based
housekeeping and
employee training
Development of
lean service
delivery process
2 Months The right integration
between marketing,
human resource and
operations team
along with demand
forecasting.
Better Marketing Use of social
media,
developing
internet website
and generating
ROI and
collecting
necessary
marketing
materials for
sales.
Better ROI
(Return on
Investment)
2 Months The opting of social
media and internet
platforms for
formulation of better
marketing strategies
for organisation.
Higher
satisfaction of
guests
Employee
training, assessing
demand of guests,
effective pricing
and providing
quality overall
experience.
Customer's being
satisfied with the
services delivered
along with overall
experience.
2 Months The resources which
will be employed in
this aspects are the
human resources
which assists
provision of right
services according to
needs and
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expectation of
consumers.
LO 4
4.1 Impact of proposed changes on Business and personnel
The impact of proposed changes upon business are as follows:
The changes which are about to take place will be able to influence the manner in which
an enterprise is able to carry out its operations and redefining dealings of workforce. The
approach which has been opted by this organisation. The major changes which will be carried
out in business environment will be able to disrupt the modus operandi of an enterprise. The
manner in which operations are carried out will be experiencing a major shift (Zortea-Johnston,
Darroch and Matear, 2012). This business will now involve detailed planning which was missing
before. The involvement of planning will make sure that activities which are described in the
financial portfolio which as been formulated.
The Elm Tree Hotel will now on focus on the engagement and recruitment of ideal staff
which will be able to deliver exceptional services in terms of marketing, social media
management and service delivery. The addition of experienced and capable staff will assure that
better results are achieved. This factors will definitely improve the sales outcomes of this
business leading to higher growth and profitability.
The impact of proposed changes upon personnel stated below:
The workforce within an organisation is able to see an inclination in their skills and
expertise which carrying out a job. The personnel will be able to carry out their work in the
effective manner and will definitely achieve higher customer satisfaction through their
operations. Implementation of proposed change will assure that they are now more motivated
and rewards when accomplishing a tasks in the right manner. The training and development
which will be catered to them will assure that they are able to leave out their comfort zones with
little hesitation but will be able to adopt to changing environment for their and organisational
benefit.
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4.2 Planning the manner in which changes will be managed
There are numerous manner through which organisation is able to successfully
implement change within its environment. Listing some of change management approaches in an
enterprise are as follows:
Prioritising crucial changes: The changes which are to implemented in an organisation
are prioritised according to their importance to business (Wynarczyk, Piperopoulos and
McAdam, 2013). In this particular case study, optimisation of resources tend to most important
change which is to be carried out by an enterprise therefore more attention and resources are
directed so that change could be managed successfully.
Taking opinions: The another major approach while dealing with change is to gather
opinions and views of stakeholders relating to change implementation. It is essential to gather
viewpoint of other so that it can be understood what they think about enterprise taking up this
change. The advices can be taken in domain of finance, marketing or operations so that better
implementation could be carried out.
Viability: Viability of idea taken into consideration whether change will able to
successfully survive in business for longer period. The enterprise have to make sure that change
will be able to live up for a longer period which can only be made certain through testing the
idea. The action plan is developed for 2 months so that shortcoming are identified and rectified
before season approaching.
Feedbacks: Feedback are referred to be an crucial tool in an organisation. It helps in
assessing viewpoints of different parties in change management. The changes which are
introduced by business should be discussed with employees and customer's so that their opinions
and values are identified (Curran and Storey, 2016). When a business management is aware of
such opinions he can make efforts to address the same while managing change in an enterprise.
While dealing with change management it is essential for business to record and compare
performance with the benchmarks established so that alteration can be carried out in an effective
and efficient manner. The tool of communication is emphasized so that better results could be
availed.
4.3 Analysing the improvements of business performance
The Elm Tree Hotel should conduct an analysis of its entire plan in order to monitor the
improvements in performance of its business. This requires the management to keep an eye on
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progress of actions completed in a specific period of time. Daily operations and improvements
are totally based on systematic monitoring of the plan. It will empower this hotel to assess the
exact conditions of business. At this current stage, it is also essential to make a comparison on
expected figures with actual data. This comparison helps in knowing whether the business is
operating effectively by following action plan step by step (Burrows, 2015).
Management of Elm Tree, uses various methods in order to analyse individual
performance as well as to optimize productivity by- aligning daily actions of employees with
strategic objectives of business, providing visibility and clarifying accountability. By creating
documentation for legal purposes, eliminating disputes and support decisions also helps a
company to evaluate such situations. Progress of an organisation's improvements is directly
linked with changes in demands of customers over a growing period of time (Chun and Mun,
2012). This will require modifications in sustainable development standards of a firm. Therefore,
this hotel requires to keep updated its business organisation with latest technologies. For
enhancing productivity, resource management must be recorded for future reference. Apart from
this, marketing techniques also affects performance of business. Way of advertising and
promoting the products increases sales growth, market share and revenues of a company. Plant
capacity, equipments, skills and employees' turnover etc. impacts on production. Including these,
experiences and abilities of managers as well as effectiveness of communication systems,
decision making speed enhances performance of operations also. By adopting a planning culture
and evaluation, Elm Tree Hotel can gain competitive advantages at marketplace of UK. With this
assistance, maintaining what is done in business, where it stands at marketplace and how should
be strategic plan all provides a direction to follow by management of a company. Therefore,
analysing all these measures of performance suggest to make necessary changes in its operations
for better achievement.
CONCLUSION
By making this report, it can be concluded that small business enterprises are vital to the
success of economy of a country. These organisations provide products or services at an
affordable prices in order to meet local needs of customers. With emergence of modern business
scenario, SME serves as backbone of creativity and production which stimulates economic
growth. These firms have faced many internal and external problems in its business operating on
daily basis. This will makes it mandatory for them to make an effective strategic action plan.
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While to measure its effectiveness, managers of such companies need to monitor performance of
business in a certain period of time.
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REFERENCES
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