Small Business Growth Strategies

This assignment delves into the various strategies that small businesses utilize to achieve growth. It examines relevant academic literature on topics like enterprise culture, quality management, and social responsibility within the small business context. The analysis also incorporates real-world case studies, such as Flavourly's craft beer club model, to illustrate effective growth strategies in practice.

Small Business Enterprise

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Company profile....................................................................................................................3
1.2 Comparative analysis.............................................................................................................4
TASK 2............................................................................................................................................6
2.1 Actions to overcome weaknesses...........................................................................................6
2.2 Maintaining existing performance.........................................................................................7
2.3 New areas of business expansion...........................................................................................8
TASK 3............................................................................................................................................9
3.1 Business objectives and plans................................................................................................9
3.2 Business plans and recommendations..................................................................................10
3.3 Action plan...........................................................................................................................11
TASK 4..........................................................................................................................................12
4.1 Impact of proposed changes.................................................................................................12
4.2 Change management plan....................................................................................................13
4.3 Improvements over past two years......................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
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INTRODUCTION
Small business enterprise is a concept for encouraging young entrepreneurs with vibrant
ideas and unique thoughts which highly contribute in the economic development of country.
Dragon's Den reality show was set up to support such entrepreneurs who could not fund their
highly potent ideas. With large scale participation of enthusiasts, this show gained popularity and
became a platform for getting financial aid according to relevance of business idea. One such
company that came from this reality television show is Flavourly. It is an online beer
subscription company. This report aims to provide information about small business enterprises
in context of Flavourly. Moreover, several aspects regarding performance and business
expansion will be explored that intends to give readers an idea about the scope of such
entrepreneurial activities. Changes are necessary for growth and development and it is important
to understand the methods that will help in change management (Storey, 2016). This report will
provide readers informative content regarding the same.
TASK 1
1.1 Company profile
The following elements will give a detailed description about attributes of Flavourly
which is a subscription based craft beer company.
Name of the business: Flavourly (online beer subscription business)
Owner structure: Founder of company is Ryan O' Rorke. He participated in Dragon's
Den with his conceptual idea of providing craft beer to customers on a monthly subscription
basis.
History/Background: Established in 2012, Flavourly is a private sector organisation that
was found by Ryan O' Rorke. Current director of company is Alistair Duncan Stewart who was
appointed in December, 2016. Till date, company has not faced any sort of legal complication or
mortgage charges. Founder of Flavourly gathered investments through crowdfunding. Basically,
crowdfunding is a process of gathering financial resources or monetary help by asking to a wide
group. The growth of this company is stated with a margin of 500% every year. The supply chain
of Flavoulry is quite different from that of usual beer producing companies. Ryan selected
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certain microbreweries that have unique flavours and combination of organic ingredients.
Moreover, the products which are provided by this company are not available anywhere else.
Activities: Company provides craft beer which is delivered to consumers on a monthly
basis. A wide range of food products are also available with their speciality beer that is combined
in the beer box (How it work, 2017). Brand loyal consumers are given with special leverages and
discounts occasionally. In addition to this fact, an online social community is also formed on the
website of Flavourly which gathers reviews and suggestions of customers that are connected
through products and services of company.
Business location: Flavourly, Units 10-12, North Leith Sands, EH6 4ER.
Company is based in Edinburgh, Scotland. Business location of Flavourly is highly feasible and
viable because all small scale producers and brewers that are suppliers for the company are in
proximity.
Strengths: The firm has gained brand recognition within 2 years of establishment. A
major strength of Flavourly is product’s qualities. No other company operating in craft beer
industry has access to the flavours and diversity in products. Moreover, organisation functions
entirely on online basis which gives an edge over competition (Blackburn, Hart and Wainwright,
2013). Consumers are provided with great convenience with excellent quality products and
services. This has added great value to corporate image of company.
Weaknesses: The organisation has no facilitation in other countries and areas. Market
development strategies are not efficient enough. In addition to this, Flavourly's diversity in
products is less.
1.2 Comparative analysis
A neck to neck competition is being provided by Degustabox to Flavourly. Both these
organisations are functioning very well in the food subscription industry. Following comparative
table gives an analytical view of different operations and functions of these businesses.
Elements Flavourly Degustabox
Products Flavourly is an online craft
beer subscription company that
provides customers with a
Degustabox provides
consumers a fascinating range
of food products that are
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variety of options regarding
gourmet food.
The organisation functions as
an online club providing high
quality products and services
to consumers across UK.
combined and transported in a
surprise package consisting of
6-14 items. Unlike craft beer,
this company sells herbs,
bakery items, gourmet food
and some drinks.
Company is also a food
subscription sector
undertaking.
Place Organisation’s business
operations are conducted from
Edinsburgh.
Company works with business
headquarters situated in
Barcelona, Spain.
Type of selling Online shopping portal Online shopping website
Owners Ryan O' Rorke S.L. Degustabox
Financial status It is one of the largest craft
beer clubs that has grown in
the last decade.
Degustabox has also gained
recognition in the food
subscription industry within
UK.
Strategic approaches Consumers are engaged with
company in the form of a
social media community that
can interact and provide their
opinions over new and existing
products (Flavourly’s CEO on
the future of craft beer clubs,
2015).
This organisation has
developed online blogging
platform where customers and
consumers can get to know
about various recipes or even
share their experience
regarding the commodities.
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From the above table, it is clearly visible that despite of being from the same industry,
these two companies have good market share. The reason behind this competitive approach is
uniqueness of products. Flavourly gives craft beers and gourmet food as a complementary
package while Degustabox provides snacks and drinks as a complementing product.
TASK 2
2.1 Actions to overcome weaknesses
Weakness is an attribute which can be converted into strength if appropriate efforts and
actions will be taken by the firm. Flavourly being a small business enterprise has gained good
brand reputation in its operation area within a short time span. This quick growth and
development has helped organisation to strengthen its foundation and spread roots in the future.
(Freel, 2013) In order to overcome aforementioned weaknesses, several actions can be taken.
These are stated as below:
1. Understanding the source of weakness: Flavourly's weakness as identified is weak
market development strategies. Company should identify the source that is leading to less
effective market strategies. Despite of gaining huge success, it is important to maintain
acquired reputation. If training and development requirements are felt then organisation
must indulge into such activities for better strategic management (Goss, 2015).
2. Analysing contributing factors: Low skilled employees, ineffective approaches or lack
of technological support, etc. can be the reason which are increasing weaknesses.
Organisation’s authorities must conduct regular SWOT analysis which helps in
identifying the strengths, weaknesses, opportunities and threats. This tool will help in
evaluating factors that contribute to the retardation of growth.
3. Reviewing performance: Performance standards are maintained in every organisation
(Ellis and Kiely, 2015). The important point to be considered is whether these standards
are reached or not. Performance evaluation and review will help marketers and
researchers to develop the business plans in a strategic manner.
4. Exploring opportunities: Flavourly's major weakness is that it is having no presence in
other parts of the world except in native country. This fact has been keeping the company
at bay from achieving global brand status. Hence, exploration of opportunities regarding
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new investments and business expansion will help organisation to earn more profits
through the international markets (Ackermann and Audretsch, 2013).
2.2 Maintaining existing performance
Once a business organisation reaches sustainability, the strategies that are developed as a
next stage are more focused on strengthening and maintaining this position. Productivity and
efficiency of work force is a major contributing factor in strengthening an organisation.
Flavourly can concentrate on making strategies that aims to increase the productivity and
efficiency without compromising on employee’s satisfaction level. This is possible when
emotional engagement of human resources is possible (Harris, Gibson and Taylor, 2015).
Employees must not be subjected to abandonment when success celebration or sharing of failure
is considered. The owners and strategists have to make sure that human resource is part of every
action and reaction company is subjected to. This will improve their dedication and efforts
towards the benefits of business.
After internal stakeholders, external stakeholders must be concerned i.e. consumers.
Modern day business organisations acknowledge customers as the king of business which is
practically true (Spence, 2016). The fluctuations in demands and needs causes companies to
change their strategies and imbibe innovation. Flavourly can manage its customer share and in-
fact increase it by giving valuable support and sufficient time to the complaints and problems
they are facing while experiencing products and services. Identification of specific demands and
areas of rising demands is another step for strengthening organisation. Moreover, an analysis
must be conducted to understand if new initiatives taken by company are hindering or smoothing
current performance expectations (Flynn, McKevitt and Davis, 2015).
Strength acquired by Flavourly is the most significant asset which needs to be managed
efficiently. With regard to these identified strengths, company should set goals and targets with
SMART objectives i.e. specific, measurable, achievable and realistic as well as timely. The
cultivation of a target oriented workforce will reduce the risks and losses that are related to
failure. In addition to this, organisation should keep a track on the latest technology that is
produced in market. Advanced technological support helps in the reduction of production costs
as well as help in making better connection with current and potential consumers (McAdam and
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et. al., 2014). Flavourly can use technology in its breweries and production houses where craft
beer and other food items are produced.
2.3 New areas of business expansion
Business expansion is an attribute that is strategically approached by companies to
develop certain operational dimensions aiming at getting more profits and market share.
Flavourly has current headquarters in Edinburgh. The presence of large number of independent
small scale producers has attracted Flavourly to develop its business centre at this place.
Currently, the market situation and growing customer demands in other parts of the world, has
given the company an opportunity to develop its business centres internationally (Ritchie, 2015).
Business expansion in other countries can be considered as a great investment opportunity
mapping future success.
Another technique through which business expansion can be planned is product
development strategy. Current product range of Flavourly include unique flavour craft beer and
gourmet food. To expand the business a new product can be developed and marketed. Brand
loyal customers are always open to all the products and services which are provided by the
company (Cain, 2015). Flavourly can utilise this attribute by experimenting with new products
and look after the reactions and respective feedbacks. Since, breweries and independent
agriculture producers are in contact with the company, it will be easier for developing a new
product out of current raw materials. For instance, juices can be chosen as the new product for
existing target markets. It may be possible that potential customers can get connected with
enterprise if they develop a liking towards this new range of juices.
Promotional events are also a part of the business expansion strategy. Flavourly can opt
for efficient promotional and marketing strategies, like distribution of goodies and discount
coupons along with the beer boxes (Henrekson and Sanandaji, 2014). Consumers will feel
obliged and overwhelmed by extreme attention given by the company and they will be a source
of mouth to mouth publicity. Brand awareness takes place when mouth publicity takes place. As
a result more people will be engaged with Flavourly's monthly subscription and this will
automatically lead to business expansion in terms of growing market share.
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TASK 3
3.1 Business objectives and plans
Every business organisation functions with help of certain objectives and targets. These
give a directional flow to the company's operations. Flavourly's business objectives are as
follows:
 To provide great quality products with an exclusive range of flavours without affecting
consumer pockets.
Successful enterprises specially an entrepreneurial venture which has gained quick
recognition. Flavourly is ranked amongst the top 100 start ups of UK. The founder of this
company had acquired certain funds from the angel investors of Dragon Den but he did not take
this privilege and instead opted for crowdfunding. The funds gathered by Ryan through
crowdfunding platform where much larger than those proposed on the show. Hence,
implementation of high end strategies became easier for the company (Bozkurt and Esen, 2014).
Flavourly's business objective is focused on providing consumers with excellent quality products
and at affordable prices.
Involvement of micro breweries and distilleries has helped the company to reduce its raw
material costs. Flavourly's business plan is strategic and well planned. The company shares a
bond with these micro agricultural producers and brewery owners that their products and
materials won't be available at supermarkets or provisional stores. This attribute has given the
firm a competitive advantage (Al-Mubaraki and Busler, 2013). It is important that competitors
are not able to gather such raw materials which will help them in producing much better beer.
Beer52 is another major business rival of Flavourly after Degustabox. This company gives
customers more privilege in terms of price but on the same hand, they do not have that quantity
and quality of product. This is the reason that Flavourly holds a remarkable reputation in eyes of
customers.
Ryan O' Rorke the owner of Flavourly has managed to cultivate an internal environment
that involves only limited audiences which means that both quality and quantity of human
resource is well managed. With less number of people involved in back end support of
production reduces maintenance costs and improves efficiency of the company (Dundon and
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Wilkinson, 2014). This start-up was hence able to earn the recognition it holds currently because
of proper chaos management.
3.2 Business plans and recommendations
Current business plan has been discussed in the above section. From these findings it is
clearly visible that the objective set for functioning of the company is in complete accordance
with SMART principle. It becomes easier for workforce to implement business plans when
objectives are practical and measurable (Niu, Ding and Knaap, 2015). Moreover, companies are
able to achieve better results when clear communication of objectives is possible. Some
recommendations can be implemented by Flavourly in its business plan for gaining more profits
and brand reputation. These are described as follows:
1. Packaging is the first and foremost thing that attracts a consumer. The inclination of a
purchaser towards a company is also dependent on packaging and labels. Interesting and
innovative packing styles will make consumers curious about products of Flavourly.
These should hold respective license and copyrights so that imitation is not possible.
2. Business plans are strengthened when legal formalities are complete. The company
should follow respective legislations and rules so that competitors do not find an
opportunity of filing suits (Whittle and Myrick, 2016).
3. Warehouse of the company is very small. In case of excessive demands, there can be
situations that no space is available for managing inventory. Moreover, less demands can
lead to excess inventory acquisition. Hence, inventory management tools can be adapted
by the management as well as warehouse must be expanded.
4. Online businesses are very cost effective. They help in projecting current product
strategies to large audiences without actually establishing physical stores (Goetsch and
Davis, 2014). The only risk that stops individuals from opting online shopping options is
security over transactions. Flavourly can assure network security and no loss of privacy
by encrypting its transaction gateways.
5. Business development strategies are successful only when feedbacks and reviews are
collected and evaluated timely. Since, complete operations of the company are based on
the internet, it will be easier for Flavourly to take online surveys and generate feedback
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forms from consumers so that effectiveness of product quality and customer satisfaction
levels can be examined.
3.3 Action plan
The components of an action plan in implementing changes are discussed ahead. These
when sequentially followed can help in meeting organisational objectives and goals effectively
without much acquisition of resources.
Implementing changes: Flavourly must be able to judge the areas where changes can be
made. Aforementioned changes include inventory management and change in infrastructure.
Unbiased decisions and quick actions will help in implementing changes more efficiently.
Systems to manage: Customer relations management system, change administrators and
leaders are the systems that can handle changes with at most efficacy. Commitment is necessary
with support of all these components. When company is driven by commitment, then problems
of disorientation are solved easily. Moreover, entire workforce is aligned with proposed system
(Bradley, 2016).
Monitoring and evaluation: Once all strategies are executed and applied in respective
areas, then supervising staff must be assigned the function of monitoring and evaluation. It helps
in examining whether implemented changes were beneficial or not. Legal structures are also
supportive in monitoring. They help in maintaining reliability of recommended changes. Hence,
these legalised frameworks can also be used by Flavourly.
Performance measurement: Evaluation itself is a source of measuring current
performances. A differentiating statistical data should be produced that will help in
understanding the benefits and drawbacks company is able to gain after these changes are
introduced (Flavourly’s CEO on the future of craft beer clubs, 2015).
Milestones: Flavourly must set a milestone just like objective or target so that purpose
behind functioning is not lost. Milestones are also essential because they become a trademark for
the company when achieved.
Setting deadlines: Deadlines help in meeting great quality without heavy utilisation of
time. In addition to quick results, deadlines are like time limits in which the respective perso0n
has to do their particular job. Implementation of change when enclosed with a deadline will help
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in achieving other goals without spending large amount of resources and time on just one subject
(10 Ways to Grow Your Business, 2017).
TASK 4
4.1 Impact of proposed changes
The recommendations that have been presented earlier have certain impact over
functioning and execution of operations. When Flavourly will develop a legal framework in its
working structure then probability of unfair practises decrease (How it works, 2017). Customers
will be assured that organisation doesn't utilise their money in unfair practises. Moreover, clients
and partners develop a bridge of trust because of impartial legal facilitations. In addition to these
advantages, legal formalities will give business plans an edge over competitors. No other
external source or organisation can question the functioning of Flavourly. Since, products of the
company are not available in any main stream outlet across UK, there are no chances for
duplication or copying of labels and products. But still it is important that packaging and certain
products that are exclusively developed by Flavourly has copyrights and patents.
The use of online transaction gateways will also have a positive impact over the company
and its operations (Ritchie, 2015). If customers are assured that their transactions are secured and
safe through online portals then, more number of online shoppers will get involved with
Flavourly. Moreover, chances of business expansion in terms of market share also increase with
safe payment options. A major change will be felt in sales and finance figures of the company.
Since, these changes are bound to internal environment of organisation, it is not possible for
rivals and competitors to easily detect source of success. Inclusion of techniques and
methodologies that help in gathering feedbacks and handling complaints will help in managing
customer relations (Cain, 2015). Online shopping businesses often fail due to ineffective
behaviour and public relations management. Whenever, a person complains or registers certain
queries for the company, it has to be handled effectively and quickly. This will improve
corporate image of the company.
When significant development is experienced by organisation, then firm's ability to
provide incentives and rewards also increases. This gives a morale boost to employees and their
working efficiencies.
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4.2 Change management plan
It is quite easy to suggest and implement changes in an organisational structure. The only
responsibility that lies at the end of company officials is managing these changes until desired
outcomes are not acquired. Following change management plan can be implemented to manage
proposed recommendations in Flavourly's organisational structure.
Providing specific and appropriate reason: Before implementing any change, the
authorities must be able to demonstrate and communicate reasons for which respective
developments are being made. This will not produce any drift amongst employees and the
authorities (Henrekson and Sanandaji, 2014).
Gathering stakeholder support: Flavourly has to take care that maximum support is
gathered for implementing proposed changes. This will help in better execution and unhindered
functioning of the organisation. All clashes and conflicts should be resolved easily without
oppressing any relevant ideas.
Creating change management team: An administrating team must be assigned for
managing these changes so that problems or retarding situations are easily handled. Moreover,
this team will allocate certain responsibilities and duties amongst capable individuals. It will
reduce the burden over company to implement recommendations all by itself.
Manage effective communication: No strategy can work without effective
communication. A balance is created only when messages and information are transferred
without any manipulation and appropriate feedbacks are also provided so that further
communication can take place (Bozkurt and Esen, 2014). For instance, if Flavoulry is revising its
terms and conditions, then it is the responsibility of the company to deliver the information
regarding prospective changes to their clients and customers. It will help in making effective
bonds and public relations.
Monitor and evaluate barriers or roadblocks to changes: Resistance and blockages can
be experienced whenever changes are implemented in an organisation. Effectiveness is only
attained when proper monitoring and evaluation of these roadblocks is done and resolved. It
helps in smooth functioning of the company (Dundon and Wilkinson, 2014).
Get stakeholder reviews and opinions: Stakeholders are the people who are getting
affected or take an interest in the functioning of Flavourly. Change management plan cannot be
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effective unless stakeholder reviews and opinions are not gathered. They help in improvising
current strategies and taking better decisions in the future.
4.3 Improvements over past two years
The improvements in performance of Flavourly can be judged by the following trend
graph that is scaled for past two years.
Improvement
parameters
1-6 months 6-12 months 12-18 months 18-24 months
Consumer share
Suppliers
Production
quality
Profit margins
The above trend graph provides substantial proof of improvements in performance
standards of the company. Flavourly witnessed a significant increase in number of consumers
and clients across UK. People have provided positive feedbacks and comments regarding
improvement in quality of produce. Moreover, the relationship with suppliers and business
clients has improved after legal structure were revised. The most important element of online
shopping is safe and secure transactions (Goetsch and Davis, 2014). When Flavourly opted for
payment gateways like Visa and Paypal, customers developed more faith in operations. They
gathered courage to place orders and pay through these gateways without any sort of doubt or
non-trustful behaviour. The company has also adapted to better documentation of subscription
agreement. Moreover, a copy of these documentations has also been provided by the company to
customers who have engaged with firm in the form of subscribing craft beer.
Change management plan which was proposed in earlier section gives a better path in
implementing modifications. This plan can only be successful if acquired outcomes match
estimated expectations. Flavourly's transformation from a small craft beer producing company
to a subscription club has helped investors to find opportunities. People want to explore strategic
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functioning with the company after the success of revised governing structure (Bradley, 2016).
Moreover, organisation has gathered a lot of proposals for working in partnerships and letting
franchisers operate in other locations. Changes have henceforth helped company to excel and
flourish greatly in UK.
CONCLUSION
Start-ups and small businesses are often considered as low category and less success
reaping. This mentality was challenged by the founder of Flavourly. He represented his business
in the Dragon's Den reality television programme and managed to gain sufficient funds for
leading and processing his business idea into actually functioning enterprise. The success of a
small business enterprise is guaranteed when concerned product or services is unique and
competent enough to curb the competition that is ruled by multinationals. Flavourly's history and
background details are provided in this report. The competitive analysis of the company helps in
understanding that Flavourly has good market reputation but organisation can opt for business
expansion strategies as discussed in this assessment. Several changes are proposed for Flavourly
which can be implemented according to the action plan provided. The impact that has been felt
by the company after implementation is also presented.
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REFERENCES
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Online
10 Ways to Grow Your Business. 2017. [Online]. Available
Through:<https://www.entrepreneur.com/article/70660>. [Accessed on 7th February, 2017].
Flavourly’s CEO on the future of craft beer clubs. 2015. [Online]. Available
Through:<http://www.craftbeerworld.co.uk/flavourlys-ceo-on-the-future-of-craft-beer-clubs-
17285/>. [Accessed on 7th February, 2017].
How it works. 2017. [Online]. Available Through:<https://www.flavourly.com/faqs/>. [Accessed
on 7th February, 2017].
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