Small Business and Enterprise Challenges

This assignment delves into the multifaceted world of small business and enterprise, examining the key challenges they face in a constantly evolving market. It analyzes various aspects such as innovation, firm performance, financial structure, and the role of education and support systems. The content utilizes research papers and online resources to provide a comprehensive understanding of the current landscape for small businesses.

Small Business Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Producing a profile of Purbeck Ice cream and its strengths and weakness:..........................1
1.2 Analysis of the business using comparative measures of performance:...............................2
TASK 2............................................................................................................................................5
2.1 Recommendations and appropriate actions to overcome weaknesses:.................................5
2.2 Ways by which current performance can be maintained and strengthened:.........................6
2.3 New area's in which company can expand:...........................................................................7
TASK 3 ...........................................................................................................................................8
3.1 Give your assessment on existing business objectives and plans.........................................8
3.2 Review business plans and suggest areas where changes can be made................................9
3.3 Prepare an action plan to implement the changes...............................................................10
TASK 4..........................................................................................................................................11
4.1 Impact of proposed changes on business and its personnel................................................11
4.2 Management of proposed changes in business...................................................................12
4.3 Measurement of improvements in the business over past two years..................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Small-medium business enterprises are the one who are very important for growth of
world economy. It adds more people to financial system and raises their standard of living. The
reason which makes it even more important is that it provides stability to economic condition of
country. In United Kingdom, SME's play a role of a pillar to the country economy. In 2008, it
occupied up-to 85% of all market activities in UK. It is a reason which kept the country economy
stabilised when recession struck. They were fuelling growth rate of nation even when whole
Europe was suffering (Ackermann and Audretsch, 2013). The laws regarding small business
enterprises is stated in Companies Act 2006, in its section 382 and 465. It describes small
company as a one that have turnover of up-to 6.5 million pound and have less than 50
employee's. This report states about how performance of small business can be enhanced and
what additional measures can be taken for improving their capabilities. The company chosen for
this project is Purbeck ice cream company. It is a growing organisation which started from the
farms of Kingston, Wareham. In this report all the concerning issues will be analysed and
measured which can impact and hamper organisation performance.
TASK 1
1.1 Producing a profile of Purbeck Ice cream and its strengths and weakness:
Purbeck ice cream company is a small business enterprise which was incorporated on 8
June 2005 it is a private limited company which means it can not offer its shares to the public. It
was a result of diversification which took place 29 years ago in the dairy farming business. The
company is owned by Jaqueline Hazel and Peter Clifford. Business concept is completely based
on the opportunity which came into being with creation of milk quota (Altman, Sabato. and
Wilson, 2010). Today, company is able attract large number of customer towards its products
and services. The main idea behind ice creams and other goods is to serve customers fresh,
natural, different flavoured items. They are providing a healthy alternative to people. It is a well
recognised award wining Dorset ice cream provider.
Purbeck sell their products via different stores which apply for sales of their goods at
different places. These ice creams and other dairy items have registered a 60% of growth rate in
sales. The decision behind making business pivot has paid off and products are now available in
retail stores. The company is valued at 2 million pound at present. They have a dedicated social
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media department which is handled by Jacqueline as to analyse trends and solve customers
queries. Company is totally focused on providing deserts and other dairy products. Though they
are in contact with major restaurants who are willing to serve their specialised items such as
Chilli Red.
The company is a family business and it is completely owned by the hartel family. There
are no plans of selling company in future or offer stocks for investment (Bellucci, Borisov and
Zazzaro, 2010). They have a net book value of 1,398,836 which rose by 20 % than the previous
year. They have evolved from being a small micro business to a small business enterprise. There
are few strengths and weakness of business as identified:
Strengths of company are:
 Completely unique product range
 Healthy and variety of flavours
 Attractive and known in the nearby counties
Weakness of company are:
 Less market share
 Existing competitors offers more variety
 Lower level of consumer interactions
 less market exposure to company and people
1.2 Analysis of the business using comparative measures of performance:
Purbeck is facing stiff competition in the market of deserts and dairy products. But due to
company's differentiation policies and efforts they are able to create a separate market for
themselves. There are some competitors who are neither too big nor too small in size and
revenue that can be considered as a threat (Bridge and O'Neill, 2012). There are some companies
who are its competitors such as Sussex ice cream limited and Bears ice cream company limited.
There are less competitors as it needs huge investment to open and maintain a dairy, and run a
ice cream business.
The company has to keep on analysing performance of team working in business and cost
of operation as to maintain efficiency. The financial reports, profits, returns on investment,
market share, customer satisfaction level, employee motivation, quality of services and
organisational flexibility for adaptation of changes are some of major ways by which its
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performance and effectiveness can be measured and analysed. There are certain methods which
can be adopted by Purbeck: Quality Audit: This is a audit which states about different levels of quality maintained by
company. It is important to keep products and services at par with the mission and core
values. It also measures various efficiency levels and effectiveness of operation
conducted by company (Burns, 2010). For Purbeck, quality audit will ensure all ice
cream products have a good level of quality and are as aper the set standards of company. Customer Satisfaction: This is a method which aids managers of Purbeck to know about
their effectiveness from consumers. It will be able to understand and know about the
happiness level of people with their products and services.
 Financial reports: The monetary viability is very important for company to maintain.
These documents have to be submitted to the authorities and state to show that company
is fiscally strong and it is not into any illegal work (Carraher and Paridon, 2015). These
reports facilitates organisation management in informing all the shareholders about
monetary growth of fir. The financial report of Purbeck are:
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According to the balance sheet of company it has registered a good growth in its value
and income. There are various factors which has increased while they are considered as
negative, such as debt which also rose but its under control and necessary (Chell, Nicolopoulou
and Karataş-Özkan, 2010). Company have new micro competitor in market Sussex ice cream
limited which is also growing at a higher rate. For comparing its balance sheet can be matched:
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The balance sheets states about the difference which exist between company and its rival
company which is smaller in size and revenue.
TASK 2
2.1 Recommendations and appropriate actions to overcome weaknesses:
Purbeck is an old organisation in market and it has been successful in bringing innovation
to a business which was considered very hard to maintain and grow. Also they are able to attract
consumers towards their products and services (Cowling, Liu and Ledger, 2012). It have
attentions of various retail stores and chains but currently it is not in contract with anyone.
Company has to make sum major changes as to ensure a proper path of growth and success.
Purbeck focus is divided into two segments. First is to make more variety of ice creams which
are gluten free and healthy and second is to ensure its products are reasonably priced while their
quality is as per standards. There are certain weakness identified for business which are
mentioned below:
 Limited market share
 Existing competitors offers more variety
 Lower level of consumer interactions
 Less market exposure to company and people
Recommendations for business:
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 Expansion of business via retailing stores: Purbeck ice cream limited is currently only
offering its goods in some countries and hence it has very limited market exposure. It
needs to expand and that is possible via retail stores which have their presence across the
country (Di Domenico and Miller, 2012). It can use TESCO or ALDI who will stock
their items and sell their products. Or they can use different ice cream outlets to serve
their products to customers. Updating flavours and varieties: The company needs to keep on updating its product
varieties as to ensure that they are able to target all the customers and changing trends.
They will have to introduce seasonal as well as occasional changes to attract more
people. Using media for solving consumer issues: Purbeck have a well established online
presence but they are not able to solve each and every query of customers. Strengthening
this department will lead to higher consumer satisfaction and ensure a positive word of
mouth.
 Increasing market share via substantive strategies: Company also have to change their
strategies as to meet market dynamics and needs (Fassin,Van Rossem and Buelens,
20111). They have to adopt substantive strategies where they will need more funds to
acquire or merge with micro units. This will aid them in expanding their market share and
strength of business productivity.
Purbeck is on the verge of becoming one of the most successful dairy business and to
achieve this it has to make necessary changes.
2.2 Ways by which current performance can be maintained and strengthened:
It is very important for Purbeck to maintain and enhance its current performance and
productivity. As this will aid company in achieving various goals and objectives in a more
efficient and effective manner. They have to concentrate on a path which provides them a more
substantive growth in future. Purbeck is a company which is offering ice cream as core product
which is differentiated from others in market as it is more healthy and nutritious than others
(Goss, 2015). The company has registered a higher growth rate which it has to maintain by
adopting to new changes. It have much higher scope for growth in market as people are more
interested in eating fresh dairy products which wont harm their health. Also they have less time
which makes them to fetch sum quick food with a good dessert. Today they are more aware
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about health impact of various types of food products and that is why Purbeck has registered
growth as parents wants their kids to have deserts which are gluten free, fresh and made of pure
materials. There are certain activities on which company needs to focus as to ensure that their
productivity is maintained: Customers preferences: The marketing department of has to ensure that they are able to
analyse customer's preference as the changes takes place (Gronum, Verreynne and
Kastelle, 2012). This will ensure that company is able to change their products on
occasion and is prepared to face uncertainties. Team building and working: This is an activity which is based on division of work
between people who share different types of skills and capabilities. It will help company
in achieving greater efficiency levels and also boost productivity as everyone will be able
to perform task in a proper manner. Market trends analysis: Company needs to keep on analysing various external factors
which can impact its performance and productivity. A trend analysis aids management in
understanding various changes and boost the flexibility of organisation.
 Quality of goods: The maintenance of quality is very important as this is a factor which
aids company in differentiating itself from others in market (Jones and Iredale, 2010). A
greater quality product will aid Purbeck is enhancing customer satisfaction.
2.3 New area's in which company can expand:
Purbeck ice cream limited is serving products related to dairy and ice cream which are
healthy and tasty for consumer. They have huge scope for growth and development in market.
Company also have a strong loyal customer base but it needs to grow further to survive. The
products are based on few concept as stated on company profile on internet:
 No nuts
 No eggs
 Made on farms
 Vegetarian
 Gluten free and locally sourced.
These concepts state about company product and services which they will be floating to
customers. These are part of some core values of organisation. Purbeck has to make certain
changes if it wants to growth further and larger:
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 National expansion: they have to find ways to enter into national scenario. This way
they will be able to target more customers and enhance their productivity to a new level
(Lambert and Davidson, 2013). They can sell their products through major retail chains
and small ice cream stores. Improving production lines: The production level of company is still low which has to
be improved for supplying fresh products to customers across country. A more enhanced
production line will assist them in fulfilling the demand of market.
 Introduction of new strategies: The company is only selling products in a local area
which limits its market share and profitability. It has a separate sector for itself which it
can exploit if they adopt substantive growth strategies. Company will be merging or
acquiring micro firms for increasing its operational capabilities to a great extent.
Purbeck can boost its market share by contracting with schools and colleges to provide
dairy products and ice creams in their food canteen (Malhotra and Temponi, 2010). This way
they will be able to create a positive image in society while earning a substantive amount of
profits. Also it has to stick to its core values which provide strength to its business.
TASK 3
3.1 Give your assessment on existing business objectives and plans
Company wants to grow and achieve all its goals and objectives. For this enterprise have
certain set standards and strategies. The objectives are only a way to measure level of
achievements of final goals. The company have some objectives which it follows:
 Being polite and responsive to all enquiries and request made by customers.
 Providing qualitative services to all consumers as per their requirement, satisfaction,
safety, hygiene and delivery.
 Adding to the market environment and nature. Also make internal environment for
employee's healthy.
 Complying with all relevant legislations to ensure qualitative goods for consumers
 Providing safety to people at workplace.
 Following company mission statement
 Implement improvements as identified by management.
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These are some objectives which have to be followed by the company as to achieve final
goals and targets. The company is dedicated to produce, present and deliver products of high
quality to its consumers (Rae, 2010). There are major changes which will be coming in
organisation such as, providing goods to some big hotels and government events. One of the
product is RED chilli ice cream which was prepared for Mexican evening organised by
springbourne fire station in Bournemouth. The change in company approach will help them in
getting targets in more efficient and effective manner.
3.2 Review business plans and suggest areas where changes can be made
Business plan is a process which provides path to a organisation by which it can achieve
its goals and objectives. This can lead organisation to success and failure. It consist of all
activities which will be conducted in company in a set period of time. The business plan is
created on the basis of past performance which states about firm's strengths and weakness. It
assist in making plans for future. The changes takes place as per the requirements.
A company needs to develop a business plan after doing proper research which includes
information regarding market trends, customer expectations, competitors, etc (Ratten, 2014). It
has to formulate a new plan to meet the requirements as described above in proposed changes.
There are certain steps which have to be followed by company to review and make changes to
required fields:
 Updating objectives and goals: As per the recommended changes company has to update
its objectives and goals which will describe the path which have to be followed by
employees to achieve organisational goals and objectives. These updated objectives and
goals will be as follows:
◦ Goals: Achieve higher market share and exposure, Expansion into national market
◦ Objectives: Contracting with major seller, hotels, retailer, etc., strengthening supply
chain and production facility. Analysis of plan: There will be certain changes which will be made to the original
strategic plan. As per the recommendations and market trends, it will be good for
company to remove the clause of organic growth and adopt substantive growth strategies
which interactive approach. This will assist it in achieving higher market share and
expansion while maintaining quality and customer satisfaction.
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 Re-allocation of resources: As per the requirement, resources such as monetary and
others will be allocated (Sharma, Chrisman and Gersick, 2012). These changes will
ensure that all activities which will take place in future are fully and properly supported.
 Follow-up: The management has to keep on analysing and measuring the outcomes as to
ensure that all changes made previously are being effective and successful.
Purbeck has to ensure that all changes are made after doing marketing research as to
ensure that only necessary activities are promoted and no resource is wasted.
3.3 Prepare an action plan to implement the changes
The action plan is prepared as to ensure that company is ready to face future
uncertainties. All changes which are being made in organisation has to be backed by this action
plan. If the recommendations fails to deliver than this plan will protect organisation functions
and profitability from being hampered.
Action plans also ensures that a high priority task needs to be done first. It promotes
delegation of authority to different levels of organisation (Southern, 2011). Purbeck needs to
conduct market research as modify plans as per requirements. They uses various sources such as
internet, from where they can get huge range of data and other supporting material. The action
plan will be developed on these basis:
 Identify various task
 List the benefits of different goals
 Start current action
 Arrangement of task as per priority
 assigning deadlines for particular task (Gantt Chart)
 Reviewing results
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TASK 4
4.1 Impact of proposed changes on business and its personnel
Today environment is dynamic that affects business activities that may influence the
company in positive or negative manner. Its totally depend on company management how it is
implementing these alteration for attaining the desired result or outcome. If Purbeck Ice cream
firm wants to get success in the market then it should adopt these changes that will assist in
achieving competitive advantages over its rivals (Stokes, Wilson and Wilson, 2010). Changes
can be of two types which are controllable and uncontrollable changes. Controllable factors arise
just only because of organisation while uncontrollable changes arise due to external
environmental modification like change in policy of government etc. and these situation can not
be controlled by company but it has to adjust itself as per present condition that aids in getting
desired outcome. In Purbeck Ice Cream, new changes are introduced such as expansion of it's
business via supermarket, use of media for increasing customer interaction, expansion of market
share via formulating new strategies. These modifications influence the business as well as its
personnel in the following manner which are given below-
 Workloads- After introducing these changes, workloads of employees have also
increased. Now workers have to manage various things in an effective and efficient
manner such as now they have to focus on new market etc. so that company can
achieve its determined target with in specified period of time.
 Finance- Now company has to spend more money for inserting these changes through
out an organization and also for carrying out these modification successfully in the
market (Storey, 2016). If firm will not have sufficient amount of financial resources
then it will not be able to carry out these alteration for a longer period of time. These
increased expenses can be managed by increasing output efficiency and employees
effectiveness.
 Organisation structure- If Purbeck Ice Cream wants to introduce these modification
then it has to hire more man power and also has to expand their business structure so
that these changes can be carry out smoothly and in effective or efficient manner so
that it can produce desired result or outcome. For it, is necessary that it should improve
their inside and outside communication channel that will aid in maintaining better
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employees relation. While taking any decision, it should involve the worker that will
motivate to them for working effectively and efficiently.
 Morale- The proposed changes will increase employees morale that will result in
better efficiency and higher productivity of employees (Van Der Wijst, 2012). Better
morale of worker helps the company to achieve it's desired result with in specified
period of time.
4.2 Management of proposed changes in business
Generally, small firms do not want to adopt any changes because they don't want to take
any risk factor. For managing these modification, it should keep strict control over them and
should monitor it on a regular basis. Small enterprise like Purbeck Ice Cream has less amount of
financial resources but for getting success, it is very important that it should have proper plan
and the best way by which changes can be bring into organization. It should take proper action
for managing these modification effectively and efficiently but these action plan should be
reviewed time to time so that alteration can be done as per requirement.
New modification will generate new dimensions for Purbeck Ice Cream company that
will drive the firm on the right path way of success. Currently, this enterprise has expanded their
area by providing their goods or services through super market but at international level if it want
to sell their merchandise via supermarket then it will increase financial burden on it which needs
to be managed properly. So before doing this changes in the company, firstly it should analyse its
market potential where it is going to capture by offering better quality of products (Malhotra and
Temponi, 2010). For getting success in the market, firm should hire a new marketing team who
should have skill, knowledge and expertise in marketing area so that they can deal with Purbeck
Ice Cream's product line at international level in an effective and efficient manner.
For proper management of modification, organisation should adopt new various media
channel for its activities which will create awareness about the company as well as its products.
This media and tracking assists in collecting proper knowledge of impact of these alteration that
firm wants to introduce and also evaluates it's performance more effectively and efficiently or in
accurate manner.
4.3 Measurement of improvements in the business over past two years
From past two decades, it is seen that Purbeck Ice Cream company' sales has increased by
selling their products through different whole sellers and also rate of profits is improved which
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is only possible because of shift in market approach. For proper analysis of improvement in
business, Purbeck firm should use trend line analysis by which growth of enterprise can be
understood easily.
After implementation of these modification, it is necessary that company should evaluate
its performance on a regular basis by which it can know about the success or failure of this
changes (Van Der Wijst, 2012). In this, it monitors that result of these alteration is as per
expectation or not if not then company should take corrective action so that firm can achieve it's
specified result.
For formulating these changes through out the entire system, Purbeck Ice Cream is using
change management theory that is given by Lewin. This concept ensures that this alteration will
make the system more powerful and strong. This model is applied in the following way-
 Unfreeze- It starts by unfreezing the old process so that it can adopt new procedure and
can bring new changes in the entire system.
 Transition- At this phase, desired changes are done that company want to bring.
 Freeze- After deciding new process or procedure, it is freeze again so that it will produce
specified target.
This framework is helpful in increasing profit of the firm that can be used for expansion
and diversification of business as well as of product line.
CONCLUSION
Small business enterprise face high level of competition in markets, also they are
threatened by various changes in policies and other sector of market. But these organisations are
playing an important part for United Kingdom. They help economy as well as society in growth
and development. Purbeck have a new and different concept which differentiates itself from all
other market players. As they are expanding into new area's, they have to adopt new changes in
their policies and structure. They need to utilise all resources at maximum level while
maintaining efficiency with higher productivity. Monitoring, measurement and action plan will
ensure that company is able to face future uncertainties without getting hampered.
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