Small Business Management and Entrepreneurship Analysis

The provided assignment focuses on analyzing small business management and entrepreneurship, including topics like performance measurement, enterprise culture, e-marketing use, and network influence on innovation and firm performance. The references list includes various books, journals, and online resources related to these aspects of small business management and entrepreneurship.

Small Business Enterprise

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Produce a profile for business by analysing its strength and weakness................................1
1.2 Analysis of business using comparative measure of performance........................................2
TASK 2............................................................................................................................................4
2.1 Appropriate actions through which weakness get overcome................................................4
2.2 Identification of ways through which existing business performance can be maintained....5
2.3 Justification for new area where business can be expanded.................................................6
TASK 3............................................................................................................................................6
3.1 Assessment of existing business plans and objectives..........................................................6
3.2 Revision of business plan for incorporating modifications...................................................7
3.3 Prepare an action plan to implement the alteration...............................................................8
TASK 4..........................................................................................................................................10
4.1 Impact of proposed changes on business and its personnel................................................10
4.2 Plan to manage the changes of business.............................................................................11
4.3 Monitor performance of business improvement during a timescale...................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Small businesses are such sort of ventures which are not big in nature and have limited
operation area. They are not able to deal their products at wide level but have variety range of
products and services. These small ventures are able in providing more job opportunities and
enhance the economic condition of a country. These little ventures get affected due to change in
economic situations but support more in any economic crises in a country. Government provides
many benefits to these sorts of ventures by giving them subsidies and rendering more investment
opportunities to them as well. This report is based on Cafe Finix, which is a small coffee shop in
London, United Kingdom. Management do not have large number of consultant who advised
them in development of their business. Hence, several major concepts are going to be discussed
in this project (Ackermann and Audretsch, 2013). Identification of strength and weakness of this
small business is essential and use of adequate comparative measure help in dealing with every
issue properly. During changes, several new objectives and targets have to be framed for revising
the business plan. Along with this, identification of impact on business operation is another
major thing for every business concern.
TASK 1
1.1 Produce a profile for business by analysing its strength and weakness
Cafe Finix is one of a small size business enterprise who are dealing in various type of
coffee products along with a facility of lunch. They are contributing more in an economy of a
country through which level of contribution by small business enterprises get rise. More than 100
employees are already working in cafe and now they are going to provide employment to 90
more skilled persons. Although, competition in small business is high in nature as compared to
large and big entities. Thus, management have to prepare a report through which they will be
able to identify all strengths and weaknesses which are concerned with their business. CEO of a
company personally deal with issues which are being faced by an organisation in their operations
for ascertain targets. Cafe provide a healthy and friendly environment to all of their customers
with attractive interior and designs as well (Aremu and Adeyemi, 2011).
Their wide variety of products work as a major USP with effective pricing strategies as
well. Another major advantage is location because Cafe is situated near sea which attract large
number of customers. But they have limited funds for arranging all activities properly. Hence,
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for improving and developing strategy, managers have to conducted SWOT analysis which
enable them in formulating relevant business action plan in long term context:
Strength Weakness
A major strength for a company is delivery of
wide variety of products.
Company have lack skilled employees who are
not able to produce more quality products.
Prices are moderate in nature on moderate
quality.
More number of rivals in business context due
to most market grab by small enterprises.
Another major attractive segment is location
which leads to increase their profitability
(Blackburn, Hart and Wainwright, 2013).
Lack of senior management which hinder them
in preparing strategy.
Company is flexible in nature for adopting
modifications of market.
Change in government policy affect operations
and working.
These are several strength and limitations which shows that management have to prepare
strategy taking into consideration its weaknesses and strengths. Weakness of a company restrict
them in operating business properly which is not appropriate in relation to long term context.
Cafe Finix have to consider these steps properly through which management can frame their
actions according to the requirement and time.
1.2 Analysis of business using comparative measure of performance
Performance measurement tools are stated as various techniques which enable an
organisation to analyse the overall working of an organisation. Measure of performance are
helpful in analysing the business operations and efficiency with present year to the past few
years (Bridge and O'Neill, 2012).
 Balance Sheet
 Ratio analysis
 Income Statement
By applying these approaches on business, it becomes easy for an entity to prepare their
strategies and action plan accordingly. CEO of cafe play an effective role in identifying major
issues and limitations which hinder business. Along with this, in case if management have more
liabilities than assets then Cafe Finix have to prepare adequate strategies to avoid condition of
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over debt (Burns, 2010). Hence, a look has to be made on business performance from past few
years on the basis of Balance sheet:
For the year ended 30 April 2015 and 30 April 2016
2015 2016
£ £
Sales 121,000 220,00
Cost of sales 80,000 150,000
Gross profit 50,000 60,000
Overheads 13,000 18,000
Net profit 30,000 35,000
BALANCE SHEET as at 30 APRIL 2015 and 30 APRIL 2016
2015 2016
Fixed assets 18000 21000
Current assets
Stock 8,000 7,000
Debtors 13,000 36,000
Bank 2,000 0
23,000 43,000
Less: Current liabilities
Creditors 6,000 15,000
Bank overdraft 0 9,000
6,000 24,000
Working capital 16,000 30,000
Net Assets 30,000 41,000
Financed by capital
Opening capital 22,000 29,000
Add net profit 30,000 35,000
52,000 64,000
Less: Drawings 23,000 23,000
Closing capital 29,000 41,000
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On the basis of comparative measure of performance, it has been identified that closing
capital in year 2015 is 29000 but a slight boom get determine with in a year. In the year 2016,
41000 closing stock get identify which is high in nature. Another major advantage for a company
is that their stock getting sold as compared to last year. 2015 total stock unsold is about 8000 but
in present year the remain unsold stock is 7000. On the basis of comparative measure of
performance, it is identified that cafe is in good position.
TASK 2
2.1 Appropriate actions through which weakness get overcome
Cafe Finix have to identify all its weaknesses of their business which is not adequate for
their business and its growth. It is a duty of managers to analyse all issues and problems and take
appropriate steps which aid in overcoming from that. This will support them in perform whole
work properly as well as efficiency get rises. But on the basis of strength and weakness,
management determine few issues which affect the long-term sustainability and profitability of
business which are as follow:
 Lack of skilled staff members
 High rate of competition in business
 Few number of senior members in bench of authority
 Frequent changes in government after Brexit as well
On the basis of these weakness adequate steps and an action plan have to be prepare through
which each and every weakness can be overcome (Ebert and et. al., 2014). For these limitations,
few number of recommendations are as follow:
 Hire more of skilled personality by making their interview procedure more effectively.
Along with this, provide proper training to them as well which support in producing high
quality products.
 Number of competitors are high in every industry and in food industry it is usually more
than any other else. Thus, cafe have to maintain their quality of products which aid in
minimise their number of rivalries in business.
 Start operating business in partnership or take response from consultant for every
decision process. This support in removing the situation of lack of senior authority and
effective judgement can be gain.
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 Brexit affected economy of UK and Europe very badly and thus small corporations aid
country in growth and development. Hence, management have to make their working
more flexible which support in dealing with such consent properly (Eid and El-Gohary,
2013).
2.2 Identification of ways through which existing business performance can be maintained
Cafe Finix have to maintain their quality of products otherwise they have to bear heavy
loss due to heavy competition in business. It is a duty of decision makers to frame proper
objectives and aims which support in maintain existing business action. In maintain business
action, various methods can be used like total quality management and many more. Although, by
identify such streams as well which are more helpful in ascertaining targets on time.
 A major area which support an organisation in growth and keep existing perfromance is
to manufacture quality based products and services. This support in satisfying customers
and increase their sales and profitability as well.
 For maintain proper business development and overcome from changes price is another
essential element. This support in maintaining proper growth rate for a business.
 Company choose attractive location for their establishment which aid them in gaining
and increasing customer base. This factor is also helpful for Cafe Finix in maintaining
their growth and development of business.
 Flexibility in nature for dealing with every proposed change which is must for every
business segment (Gronum, Verreynne and Kastelle, 2012).
These are few considerations which enable an organisation to maintain proper growth and
existing business performance as well. From past few months working and operations of
business are not so good and they are not able to incur profit as well as loss. Thus, management
have to evaluate such fields which support in maintain their existing growth and business
performance as well.
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Source: Performance measurement, 2017
2.3 Justification for new area where business can be expanded
Cafe Finix have to identify new areas of business where they can expand it and generate
more and more revenue for business as well. Management have to identify such areas and start
operating their business activities into them as well. This process is helpful in increasing and
again gearing up their business concerns properly. Their few months profit generation facts and
figures have to determine properly (Herbane, 2010). Employees: Recruit high skilled employees and provide them proper training as well.
This factor is helpful and work as a major stream where, company have to increase their
operation and maintain keen focus as well. Market determination: Identify such sort of market from where they can generate more
and more profit. Market determination is an essential factor and for this management can
use market growth strategy, diversification strategy etc.
 Consult from experts: Cafe Finix have to consult from the business advisors through
which they can work on such risk associated area properly. Along with this, by entering
into new market segment, proper advice from consultant also have to be taken in to
account.
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Illustration 1: Performance measurement

TASK 3
3.1 Assessment of existing business plans and objectives
Company will check its growth from time to time then they will get to know where are
they currently standing. It will also help them in knowing what improvements are required to be
made in plans to perform more effectively (Kerlin, 2010). Cafe Finix is a well-known cafeteria in
UK which is providing good services to its customers. They have clearly defined goals and
objectives which help them in growing fast in market. Their internal and external environment
factors is also need to be analysed so that goals and objective can be achieved.
Cafe Finix assumes that they will be able to again maximum market share in few years.
For this, their plans and procedures should be reviewed once in year. So, then evaluation is as
follows: - Strategic Goals- It should be analysed that goals set by company is quantitative or
qualitative. It is always recommended that goals should always be quantitative so that it
can be measured time to time on the basis of its regular sales performances and responses
of customers. Goals should also clearly define the roles and responsibilities of employees
(Malhotra and Temponi, 2010). Objectives: - it should be measured that objectives set by company is SMART or not.
SMART means objectives should be specific, measurable, attainable, Realistic, Timely.
If objectives are SMART then company will definitely achieve its goals.
 Innovation and Creativity: - Since it is a restaurant business then they should try to bring
new innovations in their recipes and should creatively design its interiors so that more
customers get attracted towards cafe.
3.2 Revision of business plan for incorporating modifications
After conducting assessment, if company feels that business is not going on as it should be then
they should try to bring in few modifications in business plans. It is noticed that current business
plan of Cafe Finix is focussing on expansion of business and customers. But this is not enough to
run a cafe, there are many more elementals that company needs to consider like risk and
competition present in market. For revising its business plan company should focus on future
opportunities as well which will ensure its growth in future and success if company. Market
survey should be conducted by company to know that how many people like to visit their cafe
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and what is the reason behind It (Olson and Staley, 2012). This information will help in creating
strategies more effectively. They should try to innovate their existing cuisine and bring in new
dishes as well. The process which is followed by companies in revising its business plans are: -
 Set aims and objectives- Revised objectives of Cafe Finix is as follows: -
◦ To increase market share by 25%
◦ To provide better services to customers
◦ To introduce new technologies
 Develop Plan- In order to achieve goals and objectives of restaurant, they should make
effective business plan. By using SWOT analysis, company will be able to know its
strength and weaknesses and accordingly company will be able to design its strategies.
 Allocation of resources: - After developing plans, Cafe will distribute resources where
ever required like its financial resources, technical resources and many more. All these
resources should be distributed effectively so that need is fulfilled (Schaper and et. al.,
2014).
 Monitoring and evaluating- In this, after allocation it is checked that activities in
organisation is carried out correctly or not. For this previous performances should be
matched with current performance and difference is evaluated.
Cafe Finix should carry out this plan to successfully revise its business plan and then compare
the current performance with past performance. Also, customers reviews should also be taken on
this matter.
◦ Specific – Improve delivery services by cutting down waiting time of customers for
getting food.
◦ Measurable – Progress should be measured through sales done in a particular period
of time.
◦ Attainable – taking only those orders which can be completed on time.
◦ Realistic – by reducing waiting time, more orders can be taken by them.
◦ Timely – Cafe will implement the process and train its staff about their performance
and noticing difference after 2 months. Order should be delivered on time.
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3.3 Prepare an action plan to implement the alteration
Action plans can be defined as detailed plan which consists of actions that are conducted to reach
till goals of organisation. It included the steps that must be taken by managers to attain objectives
successfully (Stokes, Wilson and Wilson, 2010). Steps that are included in action plan are: -
1. determining business objectives
2. Taking initiatives
3. Identifying benefits of Accomplishing goals
4. Prioritising objectives
5. Allotting completion date
6. Final result
Management of cafe will be given responsibility to successfully implement action plan in
organisation. After implementation, it is necessary that all the plans should be properly followed.
They should first conduct research and then priorities should be set as to which work should be
completed first (Ackermann and Audretsch, 2013). After setting priorities, benefits that will
arrive from this should be analysed. An action plan is given as under: -
Objectives Actions Priority Benefits Material
Resources
Time
scale
Responsi
bility
Success
factor
Monitori
ng
strategy
1.
Customer
satisfactio
n
Conduc
t market
researc
h
Custome
r
satisfacti
on is
priority
for any
business.
Increases
sales of
product
Need
more
money
with
internet
and other
forms of
survey.
One
month
Marketin
g and
customer
service
team.
Detailed
data.
Continuo
us
analysis
of
informati
on which
gather
through
customer.
2. Good
quality
food
Health
require
ments
Very
importan
t because
Improvin
g and
innovatin
Monetary
resources,
creativity,
one
week
Head
chef.
Define
Total
quality
Customer
feedback
and
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of
custom
ers
then only
customer
s will
visit our
Cafe.
g cuisine
in Cafe
will
attract
more
customer
s
food
resources
required
to make
new
dishes
manage
ment and
quality
standards
preferred
by
customer
s.
chef's
new
invention
.
The proposed changes can also be like Expanding food offering by giving more options
in menu card full of customers favourite dishes, new brand opening in various cities like London,
redesigning and restructuring area inside restaurant and make it more comfortable and luxurious
for customers (Aremu and Adeyemi, 2011).
TASK 4
4.1 Impact of proposed changes on business and its personnel
Occurrence of change in a business plan or a business activity is quite normal. When changes are
implemented in a business organisation, entire organisation structure gets affected. If there is
change in business plan then all departments will get affected from it as a business plan include
various strategies that are implied on all departments. In case of Cafe Finix, the changes which
have been introduced by them will affect the staff as well as the customers.
The proposed changes should be well managed and management should ensure that all
the steps are appropriately followed. The impact of changes on business is as follows: -
 It is seen that financial planning of company is improved because resources have been
allocated properly and so finance managers are finding it easy to perform all tasks easily.
It has led to improvement in revenue generation also.
 It is shown that by introducing new technologies, company is able to maintain data and
information properly in cafe. This will help them in knowing that which customers are
frequently visiting in cafe and which are not (Blackburn, Hart and Wainwright, 2013).
 By restructuring or redesigning cafe, it has become more attractive so new customers are
also attracted and for this little promotion of cafe is only required.
Impact on Personnel-
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 The changes which have been introduced in menu card compels regular customers to visit
the cafe and try out the new items that have been added by customers.
 Cafe can also be used for social cohesion like visiting with family for dinner, or with
friends. So, by implementing changes in its structure, customers can visit with their
family as well to spend some good time (Bridge and O’Neill, 2012).
4.2 Plan to manage the changes of business
Change management refers to managing and organising organisational changes that are
occurring in organisation. After preparing and implementing action plan, it is very necessary to
manage it also and for managing these proper plan is prepared. This plan is prepared by top level
management of companies. These plans include all the details about how these changes will be
accepted by inside management. It is the duty of engagement to check that whether all the
activities are implemented in proper manner or not. The change management process is as
follow:
Taking opinions: - Changes are part of business and it is uncertain also. So, it is always
recommended to take advices from experts like how much money should be invested in which
development. For example, while redesigning interiors, which changes are required to be done
and where (Herbane, 2010).
Test the change: - Changes should be implemented for trial period and after 2 months it is
measured and whatever problems are identified which occurred during this process should be
corrected.
Taking employees Feedback - Employees cannot change anything but their opinion matters a
lot. Their feedback can make entire process easy and then it can be implemented and opinions
are taken from owners.
Taking Customers Feedback – It is also very important to keep customers well informed and
take their opinions should also be considered very seriously. It helps business in bringing
changes easily and deciding that changes that are implemented will be fruitful or not (Kerlin,
2010)
4.3 Monitor performance of business improvement during a timescale
It is very essential for an organisation to monitor their performance from time to time.
This work can get done by applying and using balance scorecard model. This approach is helpful
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for any firm in examining their performance. According to BSM, company mentions all of their
targets, budgets and necessary factors which simplifies their working and operation. Cited firm is
facing heavy financial crises and in relation with that quality of products are also bad. It is an
important for every company to change such activities in a proper manner and help to improves
in communication services to the customers. There are some processes which change the demand
and need of each and every buyer that includes excellent communication services, clear
information of customers, etc. (Kerlin, 2010).
Cited firm have to choose this concept in making a valid comparison between their
employee’s performance and their own outcome. Balance scorecard is an effective approach
through which many issues get resolve. This concept state a clear time period on which work
have to be accomplished. If any of the employee or team failed in do so then management have
right to take some strict action against them.
CONCLUSION
On the basis of above report, small business enterprises play an effective role in
improving the economic condition of a country. Managers and authorities have to take adequate
steps which enable them in dealing with various modifications. By applying various comparative
measure of performance, an organisation aid in framing their strategies properly. Hence,
appropriate steps have to be taken in to account so that organisation can enhance their
productivity and maintain performance as well. Business organisations have to revise their plan
according to time frame. This support them in dealing with variances.
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REFERENCES
Books and Journals
Ackermann, S. J. and Audretsch, D. B. Eds., 2013. The economics of small firms: A European
challenge (Vol. 11). Springer Science & Business Media.
Aremu, M. A. and Adeyemi, S. L., 2011. Small and medium scale enterprises as a survival
strategy for employment generation in Nigeria. Journal of sustainable development. 4(1).
p.200.
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.
Ebert, R. J. and et. al., 2014. Business essentials. Pearson Education Canada.
Eid, R. and El-Gohary, H., 2013. The impact of E-marketing use on small business enterprises'
marketing success. The Service Industries Journal. 33(1). pp.31-50.
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.
Herbane, B., 2010. Small business research: Time for a crisis-based view. International Small
Business Journal. 28(1). pp.43-64.
Kerlin, J. A., 2010. A comparative analysis of the global emergence of social enterprise.
VOLUNTAS: international journal of voluntary and non-profit organizations. 21(2).
pp.162-179.
Malhotra, R. and Temponi, C., 2010. Critical decisions for ERP integration: Small business
issues. International Journal of Information Management. 30(1). pp.28-37.
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.
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Stokes, D., Wilson, N. and Wilson, N., 2010. Small business management and entrepreneurship.
Cengage Learning EMEA.
Storey, D. J., 2016. Understanding the small business sector. Routledge.
Online
Kotters 8 Step Process: Identifying Important Elements to Successful Organisational Change.
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