Small Business Success Factors

This assignment explores the crucial elements contributing to the success of small and medium-sized enterprises (SMEs). It examines various factors such as entrepreneurial orientation, business intelligence implementation, knowledge management strategies, and performance management techniques. The analysis delves into academic research and real-world examples, focusing on how these factors impact SME growth and sustainability.

Small Business
enterprise

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Profile of IPplus Ltd. with their strengths and weaknesses...................................................1
1.2 Analysing business performance by using comparative measures........................................2
TASK 2............................................................................................................................................4
2.1 Appropriate action to overcome with their weaknesses........................................................4
2.2 Ways in which current performance could be sustained.......................................................5
2.3 New areas where business could be expanded......................................................................6
TASK 3............................................................................................................................................7
3.1 Assessment of existing business objective and plans............................................................7
3.2 Revision of business plans to incorporate appropriate changes............................................8
3.3 Action plan to enforce alterations..........................................................................................9
TASK 4..........................................................................................................................................10
4.1 Impacts of the proposed alterations on the business and its personnel’s.............................10
4.2 Plan how alterations will be managed.................................................................................11
4.3 Monitor improvements in the performance of the business................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Small enterprises are considered as the major source of employment and income. Small
businesses are independently owned and regulated by the individuals whose main aim is not to
command on high market share. Along with this, these entities are also being contributing
something for the growth and development of economy. Small and medium are trying to add
some value in their service so that their will be improvement in the economy condition as well as
society (Aremu and Adeyemi, 2011). Thus, they are offering opportunities to local community
enhancing the standard living of poor people and satisfied their needs and wants.
In the present report, IPplus Ltd is the selected organisation which is specialised in
contact centres, telephony platforms. In this company, total number of employees are 50 who are
providing services to customers in call handling solution, call centre services and many more
(IPPLUS (UK) LIMITED, 2017). Apart from this, brief discussion about company’s profile has
been done in this report with their strengths and weaknesses. Moreover, many recommendations
are provided in order to overcome with their weakness. At last, action plan is also made where
company can attain their goals and objectives within specified time period with recommended
suggestions.
TASK 1
1.1 Profile of IPplus Ltd. with their strengths and weaknesses
IPplus Ltd is a British company that is providing services in telephony platforms,
software’s for contact centres and many more. This company is specialised in agent scripting,
archiving, PCI compliance, handling solution to customers and many more. There are two
distinct divisions of Ansaback; a bureau of 24/7 of contact centre operation and CallScripter,
scripting solution provider of next generation agent. This company is trying to find out the issues
of customers who are facing obstacles regarding any telecommunication service (Belay and et.
al., 2011). Main motive of this company is to serve the best quality of services in terms of
telecom so that customers will remain happy for a long period of time. Moreover, the provision
of this company is that overflow with a telephony service so that they can secure the storage and
destruction of documents in appropriate manner.
This enterprise is offering services from different places through call centres. Also
providing products and service which enable organisation to securely take care of customer
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payments and secured them in appropriate manner. IPplus Ltd. company is not having subsidiary
company and currently five directors are working there. Moreover, the status of organisation is
listed as “Active”.
Apart from that, company is also having some strengths and weaknesses which have to
be analysed by the management on regular basis. It will assist them in taking more appropriate
action or decision for the benefit of employees as well as customers and can also expand their
business in appropriate manner (Broekemier, Chau and Seshadri, 2015). Strengths and
weaknesses of this small business enterprise are mentioned as below:
Strengths Weaknesses
 The portfolio of company is sturdy.
 Offering high level of satisfaction of
services to customers.
 Services are offered in an innovative
way so that customers will be retained
for a long period of time.
 Market share of this company is
limited.
 Intensive competitors are there who are
serving the same kinds of services.
 There is no involvement in corporate
social responsibilities programmes and
activities.
 Customer interaction is low due to
offering services in the domestic
market only.
1.2 Analysing business performance by using comparative measures
In the modern era, it is essential for organisation to analyse their business performance in
different manners. It gives an opportunity to firm to adopt and implement more appropriate
techniques in which they can improve their existing performance. Entity can also retain in
competitive market for a long term with effective measures. In addition to this, they have to
analyse competitor’s strategies that how they are increasing their sales and profit during the year.
IPplus is having capability to lead in competitive market as employees are making lots of efforts
to provide the best services to customers in call centres (Chen, Chiang and Storey, 2012). Along
with this, company is allowing managers to take immediate actions if any employees or
customers are facing any barrier towards their services. Now, the performance of company can
be measured in different term which are listed as below:
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Quality Audit – Here, managers are having major responsibility or role who have to see
that whether quality of work has been done by workforces or not. In this company, services are
provided through call centres and so, manager has to see that whether problems of customers are
properly listed by employees or not (Chittithaworn and et. al., 2011). If not, then they have to
conduct proper training session for them which will also improve their communication skills.
Ultimately, proper services will be provided to customers.
Financial report – Financial report of company states about their financial and current
position of the year. Also, it is helping organisation to measure their performance by
implementing different strategies. The registration number of company is 03443083. The
financial report of IPplus is analysed as below:
Figure 1: Financial report
(Source: IPplus, 2016)
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It has been analysed from the above balance sheet that in 2015, current assets of this
entity is 20, 94,315 and 22,61,415 in 2016 which shows that company is having more capital
where they are having opportunity to invest the funds in different sectors so that they can expand
their business (IPplus customer contact specialist, 2016). Apart from that, existing business
performance can also be improved by using appropriate measures. Furthermore, shareholder’s
fund of company is increased due to increment in the profit. In 2015, profit of company is 9,
02,300 and 11, 03,038 in 2016 which shows that performance of company is improving day by
day as they are generating profits from the customers.
Customer perception of product and service quality
Year ending 2015 IPplus Ltd
It is good value 70% of people said yes while others are
confused or not using their services.
Can it really deliver superior performance Yes, since 2013, it is growing at the rate of 3%.
TASK 2
2.1 Appropriate action to overcome with their weaknesses
To retain in market for a longer period of time and gain competitive advantage entity
need to focus on their weaknesses on regular basis. Also it gives an opportunity to organisation
to expand their business at international level. The services which are provided by IPplus is
activities of call centre. Of 24 hours a day and 7 days. Many customers are there of this company
but they are from domestic only. So, it become essential for them to focus on their weaknesses
and take appropriate action to overcome with that (Curran and Storey, 2016). The manager of
this company trying to implementing new plans and action whenever any employee or customers
are facing issues. With the help of this, threats can also be determined by organisation.
Moreover, they are also concentrating on expand their business in different sectors through
which they can increase their market share and interaction will also rise. Below mention are
some recommendation which has to be considered by IPplus so that they can overcome with
their weaknesses.
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Limited market share – It is considered as essential factor where company need to
increase their market share through which profitability can also be attained by entity. For
increasing market share, company should expand their business in different segments where they
are having chance to capture large market area.
Revivals are offering same services – As many competitors are there of this company
who are offering same services along with different varieties. So, it can become obstacle for
organisation to retain customers for a long period of time (Eid and El-Gohary, 2013). Thus, it is
significant for IPplus to provide innovate services by adding more values and preference of
customers.
Involvement in CSR programmes – It is little more important for organisation to involve
in such kind of activities. With the help of these programmes company can increase the
awareness about their services which are providing by them. Also, it will help to poor people
while denoting a small percentage of amount in charitable funds.
Customer interaction is low – In modern ear, it is necessary for organisation to increase
customer interaction in different ways. Company can improve this while offering online services
also and providing to customers. But still company also need to focus on those customers also
who cannot use online services.
2.2 Ways in which current performance could be sustained
For maintaining existing performance, it is crucial for organisation nowadays. It became
essential for entity to make more strong position in competitive market by focusing on their
strengths as well as weaknesses (El-Gohary, 2012). Company can attain their goals and
objectives when their existing performance is good and level of customer satisfaction is high.
IPplus Ltd company need to focus on their core values and competencies through which they can
attain sustainable growth as well as lead in competitive market. For accomplishing with all this,
services should be provided in innovative and creative way through which they can attract the
more customers. In addition, issues which are facing by customers will be resolved in time
period by providing hem appropriate solution. Apart from this, managers are having major
responsibility to know about their competitors and strategies which are adopted by them. As it
will help them to target potential clients and capture large market share (Fassin, Van Rossem and
Buelens, 2011). Here, below mention are some ways where IPplus Ltd can build their strong
position in market with the help of strengths:
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Maintain the effectiveness of business process – Continuous improvement in the plans
and actions will bring major success for organisation. Along with this, manager has acquired
adequate resources for the implementation of new services which ensures about that fruitful
results are gained by customers.
Building good customer relationship – In this, managers has to maintain good and
effective relationship with their existing customers also. While interaction with new consumers,
they should not forget about the needs and requirements of old ones (Govindarajan and
Ramamurti, 2011). Along with this they should also maintain the quality of services which are
provided through call centres.
Be adaptable to change in business environment – For marinating existing performance
more strong, organisation should able to work in dynamic environment also. IPplus Ltd is
already prepared for this if there is suddenly change in government rules and regulations, then
appropriate strategies will be implemented by them to cope up with new problems.
Apart from that, manager should also analyse the competitor’s business strategies in
order to provide more effective services than their competitors. However, their services should
be different from others so that it encourages to customers to use these facilities.
2.3 New areas where business could be expanded
The business nature of IPplus Ltd is call centres so the owner of this company is having
several opportunities to expand their business in other sector and international level. To expand
the business in new areas or sector it increase the scope of company to retain in market for a long
time period (Islam and et. al., 2011). Also it will aid to organisation in making strong customer
base and attain their objectives with the help of this. The services which are provided by
mentioned company is telling that up to what extent they can grow their business. For attaining
existing goals and objectives sometimes it is essential for organisation to develop and expand
their business. As it will also make little contribution in development of economy. For doing all
these things, they have to grab the opportunities which are available in market and adopt the
changes which are made by government in telecommunication industry or in other where they
want to establish the new business.
Expansion of business at international level – IPplus Ltd can expand their business at
international level also. As there are many ways where organisation can enlarge the business in
other sector. For example, they can make strategic alliance with those companies who are
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operating their business function at international level. In similar to this, joint venture agreement
can also be made for a particular time period.
Diversified their services and products – To diversify their services company is also
having opportunity to work with partnerships (Jasra and et. al., 2012). Through this they can
easily target the new customers and make strong relation with them.
Furthermore, company can serve their existing service into new market which gives an
opportunity to them to develop their market base. As it can also create new market segment for
organisation.
TASK 3
3.1 Assessment of existing business objective and plans
Every firm is operating its business in some set of defined plans and objectives
irrespective of the size. It is important for the firm to access the business plans on regular basis
so that the effectiveness of its can be evaluated. Assessing of the business objectives helps in
understanding the how much feasible it is in terms of whether it is achievable in set period of
time or what are the current issues that are faced by the firm in achieving it. For the small
business enterprise like IPplus it is important to do it on regular basis. There are these sort of
ways in which business objectives and plans can be accessed:
Business objective: This company has an objective of capturing more and more market
shares by attracting large number of customers towards its business. It is possible by providing
the best telecommunication solution to the clients (Mahmood and Hanafi, 2013). This company
wants to establish its name in UK market. It is essential positive point that use of this objective
bench mark could be established. For maintaining and following the target direction to the
workers this objective is provided. One of the negative thing about this objective is that there is
lack of suitable guidance in order to reach to the desirable targets and should include the ways in
which the target goals can be attained.
Process: In an excellent approach that helps organisational groups to maintain their
standards so as to reach to the goals. Process of the business related to the telecommunication is
not elaborated properly and arises at the situation that generates doubts and lack of understanding
in between employees and the roles are assigned to them. Unanticipated number of traffic at any
time disrupts business (Olszak and Ziemba, 2012). It implies lack of flexibility in the firm's
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procedure that is one of the negative side about the firm. One of the main positive thing about the
company is that its technical team is best and the managers leads from the front. The ways things
are communicated both internally and externally is excellent. It helps in transferring information
at faster rate which helps to provide quick assistance to the company's clients.
Performance indicators: By using the observation process IPplus can manage the
performance of the staffs. There are several performance indicators that are observed on regular
intervals. Direct approaches will highlight the true picture of the levels of performance. It is
understood as the brighter side of the firm. There is negative side to observation that the
managers are unable to provide sufficient time to observe each staff that may lead to imperfect
judgement which relies on the superficial analysis of behaviour and focus of each staff members
(Rolstadås, 2012). Hence it is essential to conduct performance appraisal that includes employee
ratings by the senior and colleagues. It assists in revealing the clear idea about the performance
in their task.
3.2 Revision of business plans to incorporate appropriate changes.
Every firm requires to revise the plans for business to incorporate alterations in the
operating mechanism, structure and quality of the service and products manufactured by them.
Revision of business plans assists in overcoming related to the business plans. In the small
business like IPplus Mc Kinsey 7S model can be utilised. It helps in determining and specifying
the objectives and structures appropriately. There are seven elements in Mc Kinsey 7S model
they are being illustrated below:
Strategy: This firm strategy must reckon that worker's control, marketing, sales, financial
activities, operations and many others in an order so as to gain higher revenues and cope up with
the best practices used by the competitors. Use of the online tools may felicitate in promotional
activities can be included in the strategies of marketing. Digital marketing helps in reaching to
the larger part of the masses as whole lot of people are connected to the internet. There must be a
person or a group whose role is to look after the daily operations at the work place. Enhancing
the levels of motivation of the employees and commanding their needs related to business
(Schaper and et. al., 2014). In order to accomplish these two, suitable training and orientation can
be beneficial that too when done at regular basis.
Structure: It is essential to define proper structure of the firm that involves hierarchy that is
followed in the organisation. For limiting the confusion firm must have well organised
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communication mechanisms for communication. It is important to inform everyone about the
hierarchy of the organisation. It is also necessary to remove the decision making process that is
centralised and is taken by owners, they must include every staff member in the process. This
will enrich them with confidence as they will also understand their importance.
Systems: It will give essence about the glassy operation in the daily operations of the
company. There are various structured systems like orientation session by managers, reporting
by staff members to supervisors before the start of the day. These are advised in the system that
brings stream in the productiveness and increase the levels of competency related to the workers.
Skills: Suitable development and training program has to planned so as to increase the abilities of
the workers (Schiuma, 2012). It is the ability and skill of the worker that adds value to the firm
and hence differentiating them from others as it the fact that workers are the prime reasons for
increasing the quality of the services.
Staffs: This firm has less amount of workers and it is established that workforce illustrates
the quality of the services. Staffs are differentiated by the level of competency the poses.
Performance control of the employee and guiding them towards the suitable path is the role of
the manager. This brings uniformity in the methodology and assists in maintaining coordination
among them.
Style: Like many of the other small enterprises this telecommunication firm is following
autocratic style which as to be changed. Styles such as participatory and democratic can be
utilised as an alternative so that every employee gets associated with the process of making
decisions.
Shared values: To enhance the customer's equity by maintaining the value of the firm is
the prime objective of theirs. All ethnic and cultural thinking has been respected in equal
manner. Prohibiting any kind of discrimination is the role of the company's owner (Schiuma,
Carlucci and Sole, 2012). It helps in achieving optimum consumer satisfaction.
3.3 Action plan to enforce alterations
Alterations are essential for the firm especially changes related to structure and system
will strengthen the performance of the firm. Any changes in the firm brings out confusion
between the staffs which may lead to interruption in the business process of IPplus. It is
necessary to manage these alterations considering all its stake holders. In the dynamic business
environment alterations are needed to be done on regular basis.
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In the change management of IPplus Kurt Lewin's theory of change management can be
helpful. It helps to overcome demerits related to changes by reducing the resistant factor. Three
elements are related with this model which includes:
Unfreeze: This is an initial process where owners link up the alterations by underlining
the inefficiency in existing process and plans. It also shows that changes will enhance the
business of the firm (Vukšić, Bach and Popovič, 2013). These operations are needed to be
determined and shred with the employees. It also important that owner takes the initiative to
solve the queries in tactical way.
Change: In this stage alterations are taken by the staffs and they are forced to accept the
new processes in the firm so that they can deliver their best in the growth of the business. This
stages witnesses the belief that is positive on the part of the workers when they see that these
alterations are beneficial.
Refreeze: It is the final stage of the Kurt Lewin's change theory. It showcases the benefits
related to the work process. Limiting the misconception levels will be discovered and firm can
achieve desired level of productiveness from the employees.
TASK 4
4.1 Impacts of the proposed alterations on the business and its personnel’s.
Alterations are important for IPplus as it assist in competing with its competitors. It
defines the structure so as to maximise the profit. Any firm that is flexible in its structures and
structure and function always has a competitive edge over the others irrespective of the scale of
its activities. One of the major demerit that is present with this company is that it has a limitation
of channels so it is impossible to attain large amount of traffic at same time and hence leads to
the problems such as cross talks and limited speed of internet to the users. This is effecting the
business of the firm in the longer go (Eid and El-Gohary, 2013). These situations suggest that
alterations must be made in a planned manner especially in the areas of staff management, traffic
handling and drivers so as to drive the value composition of the organisation. The impact can be
considered by analysing two sides. They are as follows:
Positive impact: These structural changes will direct the flow of information and levels of
coordination can be improved. The staff members will be attentive about reporting to authority
and can get basic information related to the responsibilities. Democratic style of leadership will
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improve the motivational levels among the employee without enhancing the costing. Monitoring
of performance will showcase the true productivity level of the firm. Managers must focus on
sharing feedbacks with the employee on regular intervals so that essential changes can be made
to the firm.
Negative impact: Like every roses has thorns it, this also has a negative side related to the
changes. It is established thinking that changes are only helpful if the members like staffs
associated with it accepts it and contribute to it in making it perfect (Chittithaworn and et. al.,
2011). It has been seen that workers resist alterations and they are hesitant in accepting the
altered system and process. Such kinds of hesitations create issues between higher authorities
and the employees of the firm.
4.2 Plan how alterations will be managed
Managing alterations is necessary so as to make it beneficial. There must be an
appropriate strategy for managing these alterations. There are various aspects that needs to be
taken care of at several stages of changes. It is highlighted by these points:
 It is a need that there must be a decision making process that involves active participation
from every level of staff members. This will help in ensuring that firm is in a state to
ensure that workers achieves best possible results.
 Appropriate and sufficient briefing needs to be provided to every worker so that they may
perform their duties in effective manner. It is also important that necessary training
regarding this is also conducted.
 It is important that there are tight bonds among the management and employees. It helps
in making the changes in a suitable manner.
In this state Kottler's eight step model of change management can be taken in following ways:
 The first part will be making an eagerness related to the planned alterations. The
employees must understand that alterations are necessary so as to compete with other
rivals in the market.
 The second part will be directing workers towards the changes. Strong leadership quality
is required so as to convince staffs so that they can follow the changes immediately.
 The third part is to make vision the related changes. It will help workers in knowing the
need of alterations in the process and system.
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 In the fourth part more focus will be given on communicating vision to the employee. All
relevant information must be provided by each worker at each levels.
 Fifth part will be talking about the interruptions in the change process and importance
will be given to the restrictions that is present in the smooth operations.
 Sixth part or stage advocates that there is need of creating short and long term goals so as
to determine the success.
 Seventh phase will be addressing positive and negative side both and should be presented
in the progress report.
 In the final stage this theory suggests that there must be positive efforts that has to be
taken so as to achieve the advantages of alterations in a long run.
4.3 Monitor improvements in the performance of the business
In the coming two years there should be monitoring of improvement in the execution. It
is also essential to track the progress and modify it as per the need. The resistance towards the
alterations has to be noticed, observed and monitored (Broekemier, Chau and Seshadri, 2015).
Balance should be made and hence can be achieved. This is illustrated through these points:
Financial Stewardship: This is observed and measured for at least six months in or order
to find the performance level of finance after the alterations. What sort of impacts have been
posed on business turnover?
Customer satisfaction: It is one of the most important factor on which growth of the
company depends. It is important for the surviving in the cut throat competition. Feedbacks
related to the it must be noted and analysed at regular intervals. Considerable changes need to be
made according to the feedbacks this helps in achieving optimum level of consumer satisfaction.
Internal business process: There is the aim to increase the levels of efficiency in the
work process (Aremu and Adeyemi, 2011). For this purpose, appropriate training and smooth
flow of information is required for bringing coordination and bonding. Internal processes related
to the business needs to be effective. It is essential for the growth of the firm in future.
Organisational capacity: For establishing consumer delight innovation and creativity is
required. Company has to increase the capacity of the handling more number of data on the paths
so as to compete with bigger firms.
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Performance measures and targets: Performance appraisal has to be done so as to find
out the correct picture of performance levels. The evaluation must be undertaken in every six
months.
Improvement representation using time scale
Goals Period Review
To establish its network By the end of 1999 Many clients were added to the
network.
Being number one in locality By 2000 Has become the best
telecommunication provider in
the locality.
Expanding its business in other
parts
By 2001-10 Has expanded its business in
many nearby places.
Increasing traffic handling
capacity
By the end of 2016 Company has doubled the
traffic that can be handled by
the company at the same time.
CONCLUSION
It can be comprehended from above report that small business enterprise is playing
essential role for the development and growth of the economy. As they are making contribution
in increasing the value of gross domestic product. The manager of IPplus need to analyse their
strengths and weaknesses on regular basis through which they came to know about their current
position in competitive market. Further, recommendation’s which is provided to them should be
used by them so that they can overcome with their weaknesses as soon as possible.
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