SWOT Analysis of Small and Medium Enterprises

This assignment involves a comprehensive SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis of small and medium enterprises (SMEs). It presents a summary of the key findings from various studies on SMEs, including factors affecting business success, innovation performance, and classification. The analysis highlights the importance of considering the strengths and weaknesses of SMEs in understanding their opportunities and threats. By conducting this SWOT analysis, SME owners and managers can develop strategies to leverage their strengths, address their weaknesses, capitalize on opportunities, and mitigate threats.

Small-business
Enterprise

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Profile of a selected small business with identifying its strengths and weaknesses.........1
1.2 Analysis of business using comparative measures of performance.................................2
TASK 2............................................................................................................................................4
2.1 Recommending with justification appropriate actions to overcome identified weaknesses
................................................................................................................................................4
2.2 Ways in which existing performance could be maintained and strengthened..................5
2.3 Recommend with justification, new areas in which the business could be expanded.....6
TASK 3............................................................................................................................................7
3.1 Assessment of existing business objectives and plans.....................................................7
3.2 Revising business plans to incorporate appropriate changes...........................................8
3.3 Prepare an action plan to implement the changes............................................................8
TASK 4..........................................................................................................................................10
4.1 Impact of the proposed changes on business and its personnel......................................10
4.2 The way changes will be managed in business..............................................................11
4.3 Monitor improvements in the performance of business over a given timescale............12
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
In this modern era, small-business firms are fastest growing, due to it helps to enhance
economy of the nation as well as provides several opportunities to persons. With the help
opportunities, people can enhance knowledge and improve their working performance in an
effective and efficient manner. This report will be discussing about strengths and weaknesses of
small business enterprises. Company's strengths and weaknesses represent current position and
status of business in the market. Furthermore, it will be elaborating several kind of sources,
which can be used for reducing weaknesses of organisation. In this light, various
recommendations will be defined, such as company can significantly expand their existing
business firm in different areas. Here will be produced a effective assessment plan, which may
be helps in attain organisational goals ad objectives in minimum time period. Therefore, THE
ELM TREE HOTEL has been carried out as an small-business firm, so here will be define actual
impacts of proposed changes on this firm.
TASK 1
1.1 Profile of a selected small business with identifying its strengths and weaknesses
Small-business firms are provided several opportunities to person, so they can enhance
their knowledge level as well as learn something new and innovative things in their life. Apart
from this, every business enterprises have some strengths and weaknesses, its representing actual
working condition and position of the enterprise in the external market place (Schaper and et. al.,
2014). Due to, for analysing and evaluating positive and negative things related to THE ELM
TREE HOTEL, so SWOT analysis method can be used. Basically, it includes four elements such
as follows:
 Strengths: THE ELM TREE HOTEL, is a small-business firm of UK. One of the major
strength of this enterprise is that, it has extensive experience regarding hotel sector as
well as employees are well educated (SWOT Analysis, 2017). Due to this, they provide
better hotel services and facilities to customers as per their requirements. Another one is
that it provides several attractive hotel offers and packages to clients for getting more
attention from consumers. Lastly, its uses strong and effective leadership style in working
environment, with the help of this effectively will lead to others as well as give proper
guidelines to workers towards their tasks (Bridge and O'Neill, 2012).
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Illustration 1: SWOT Analysis
(Source- SWOT Analysis, 2017)
 Weaknesses: Every business firm has some strong points as well as few weak points. So
in the context of THE ELM TREE HOTEL, one of the major weakness is that, it has high
level of debts. It means, this company has more liability as compared with others.
Another one is, lack of flexibility (Blackburn Hart and Wainwright, 2013). External and
internal environment of organisation is unstable in nature, due to this it directly affects
working performance and quality of company.
 Opportunities: THE ELM TREE HOTEL, has several opportunities to expand their
business firm in different areas. For every enterprise, expansion is one of best strategy for
increasing productivity and profitability. Another one is, this organisation focuses on to
research and development. Because with the help of this, effectively identify actual and
current market condition and trend as well as collect something new and innovative
things from external market place (Malhotra and Temponi, 2010).
 Threats: Major threat for hotel industry is terrorism and political instability. Because
political factors are unstable in nature which consequently impacts on organisation.
Another one is, ethical issues and culture of society. Every person wants, hotel services
and facilities as per their culture, due to this it is not easy to handle customer's
requirements and their problems.
1.2 Analysis of business using comparative measures of performance
There are representing profit and loss account as well as balance sheet of the company,
in which includes data of 2016 and 2017 such as follows:
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Profit and Loss Account for the year ended 30 April 2016 and 30 April 2017
2016
£
2017
£
Sales 200 400
Cost of Sales 150 250
Gross Profit 50 150
Overheads 100 100
Net. Profit 50 50
Balance Sheet 30 April 2016 and 30 April 2017
£ 2016 £ 2017
Fixed assets 40 50
Stock 20 15
Debtors 35 30
Bank 5 2
Total 60 47
Current liabilities
Creditors 9 10
Bank overdraft 0 25
Total 9 35
Current ratio = current asset / current liability
2016 2017
40000/ 11000= 3.6 times 50000 / 47000= 1.06 times
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Interpretation: In context of THE ELM TREE HOTEL, this is a small-business firm of
UK. Every business firm maintains financial records with the help of financial statements, will
easy identify and evaluate current status and position of firm. Apart from this, for determining
actual working performance of the company, there has been represented profit and loss account
as well as balance sheet of 2016 and 2017. In the context of profit and loss account, which shows
actual sales of 2016 is £ 200 and in 2017 is £ 400. Cost of sales is £ 150 and £ 250 respectively.
As per these data and financial information it is easy to calculate net profit of firm.
On the other hand, balance sheet of company represents current assets and liabilities.
Fixed assets of firm in 2016 is £ 40 and in 2017 is £ 50. Along with this, current liability of hotel
in 2016 is £ 9 and in 2017 is £ 35. With the help of current liability and assets effectively
calculate current ration of organisation. Additionally, in 2016 £ 3.6 as well as in 2017 £ 1.06.
TASK 2
2.1 Recommending with justification appropriate actions to overcome identified weaknesses
Every business firm has some weaknesses or negative points whether they are large
organisation or small firm. Due to it, employers of business focuses on to adopt smart techniques
and methods for reducing weaknesses in effective and efficient manner. On the other hand, in the
external market place, regularly increase competition between hotels. Everyone wants to build a
strong brand image of their business in external market place as well as attract high number of
customers towards hotel and their attractive offers. Additionally, it is hard to get success in high
competition, due to, it is necessary to analyse and evaluate actual strengths and weaknesses of
firm. Because it represents current status and position (Olson and Staley, 2012).
Apart from this, strengths shows positive points of the company as well as weaknesses
represents negative things regarding organisation. Due to, negative things impacts on working
environment and employee's performance. It is very essential to manage and reduce weaknesses
in the significant manner. Therefore, there are different type of sources to overcome negative
points of the organisation which can be used by employers of the hotel such as follows:
 For reducing weaknesses of the hotel, employer of the firm can be used several new and
smart method and techniques in their working environment. With the help of them,
systematically manage and complete operations of hotel within better outcomes.
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 It is important for THE ELM TREE HOTEL, to modify and update existing working
style and management of the firm. Because employee's performance and quality totally
based on inside environment of the organisation (Down, 2010).
 In the external market place increasing competition level between hotels. Sometimes, it
negatively impacts on company and their working style. Due to, for decreasing negative
points of hotel, must be identify and evaluate which strategies their compositors are using
in their hotel as well as how can they attract high number of customers towards company.
 For establishing a brand image in external market place as well as in customer's mind
then must be provide and launch several kind of attractive offers and packages for
consumers. So, employers of hotel can get attention from more customers as well as
employers can improve profitability in an appropriate way.
2.2 Ways in which existing performance could be maintained and strengthened
Before establishing firm in market place, should be set company's vision and mission as
well as must be focuses on to achieve them in effective manner. In this time, it is hard to get
success because external surrounding increased competitors. Apart from this, for getting success
as well as attaining targets, then must be focuses on working performance and involvement of
employees. Because company's profitability and productivity based on employees. Due to, it is
necessary to be implement an effective management plan as well as must be conduct some
training and development programmes for employees. So, they can learn the way to complete
work with better outcomes as well as they can learn something new and innovative things in a
significant way (Gronum, Verreynne and Kastelle, 2012).
In context of THE ELM TREE HOTEL, there are required to be implement best
communication and management system in the working environment. Because communication
way representing the serving manner of employees as well as helps to give proper satisfaction to
customers towards their requirements and needs. Effective management system assists to manage
and control business activities and operations of the firm in a systematic way. Due to, effectively
set all operations is a proper sequence as well as easy to understand customer's requirements. For
every business firm, it is needs to be understand consumers demand, then as per their needs must
be try to provide better hotel services and facilities to them so they can get proper satisfaction.
In the working environment, interaction process and way of talking of employees impacts
on organisation's productivity either positive or negative. Due to, must try to implement better
5

communication process as well as try to improve employee's in interaction way to customers. In
a hotel, food serving system and communication style of workers assist to set an image in
customer's mind either positive or negative. Due to, it is require to be concentrate on working
system of the company as well as according to trend should modify and update existing methods
and system of firm with the help of smart ideas and methods (Herbane, 2010).
2.3 Recommend with justification, new areas in which the business could be expanded
Every organisations are focuses on to increase productivity and profitability in the
effective manner. Due to, employers of the company centring on to find out several areas and
sources to expand their business in various areas. Because expansion is one of the best method of
earning high number of profit as well as getting attention form more customers. Apart from this,
there are shows several kind of appropriate recommendations with the help of them cited hotel
can improve their productivity. THE ELM TREE HOTEL has several opportunities to expand
their business such as it can be open night clubs, bar, restaurants also can be open franchisees in
different areas (Altman, Sabato and Wilson, 2010). At this time period, most of the customers
wants better facilities and services from hotels, so it is very important to proper analyse and
evaluate their needs and wants. Because customer's satisfaction level represents quality level of
hotel as well as their working system. As per them, customers build their image regarding
company either positive or negative in nature.
In this current scenario, external market trends and customer's requirements are regularly
changed. So sometimes, its impacts on organisation and their working style. Due to, it is require
to be properly analyse and evaluate market situation as well as consumer's needs. According to
them, must be improve working style as well as provide proper training to employees towards
their works, so they will significantly perform their operations and tasks as well as achieve their
decided long and short term targets (Fassin,Van Rossem and Buelens, 2011). Apart from this, as
per the time and experience, must try to be expand firm in different areas as well as should
modify existing system of hotel. Because it helps to getting success as well as improve
profitability of enterprise in the significant manner.
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TASK 3
3.1 Assessment of existing business objectives and plans
When established a firm in market place, then must be clarify mission and vision of the
firm to their employees. Because with the help of this, employees also can set their own targets
as well as they can learn how should be perform their tasks. At this time, it is hard to get success
in competitive market due to, employers of the business focuses on to adopt smart and innovative
methods and techniques in the working environment. Smart tools and strategies assist to improve
working performance and involvement of employees. In the context of THE ELM TREE
HOTEL, it wants to be expand business firm in several areas for earning high number of profit.
This enterprise also have pre decided mission, vision and objectives, which wants to be achieve
in future such as:
Business objectives
 THE ELM TREE HOTEL, wants to be expand their business firm in several areas.
 One of the major objective of this hotel is that seeks to be increase profitability and
productivity in the effective manner.
 It seeks to be implement better management system in working environment, due to they
can set a brand image in customer's mind.
Vision for staff
 Employers of this firm wants to give proper directions and guidelines to staff members
regarding their works and targets. So, they can easy to learn how should be perform the
tasks as well as how they can achieve goals and objectives.
 THE ELM TREE HOTEL, wants to be give better safety and security facilities to
employees, so they can feel safe and secure while performing tasks.
 Employer of the firm seeks to provide different opportunities or chances so they can
improve their standard of living as well as enhance their working position in cited
company (Gill and Biger, 2012).
Client vision
 Seeks to be develop mutual understanding between employees of the company, so they
can perform their tasks in unity.
 Wants to be give fully satisfaction to customers towards their needs and requirements.
Shareholder's objectives
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 Employers of the firm focuses on to develop business with the help of smart and
innovative ideas.
 It wants to be prepare an effective financial statements of the firm, in which must be
mention all day by day transactions of firm. With the help of financial report, effectively
analyse current and present condition of the firm (Battisti and Perry, 2011).
Business plan
THE ELM TREE HOTEL, twice in a year systematically reviewed working performance
and involvement of employees in the firm. Further, major objectives and goals of the company
are set in a month of April every year. Additionally employee's abilities and working capabilities
have been defined in a effective manner as well as elaborating what is the major expectations of
of firm from their employees at the current also at next level. In this light, cited company's
business plans carried out motivational plan. Hence, motivational plan helps to increase
motivation and confidence level of workers. In which identify each employee's strengths and
career goals which they wants be achieve in future. Therefore, it can be used to analysed and set
next year financial targets of the firm.
3.2 Revising business plans to incorporate appropriate changes
Basically, business plan refers to, in this time where is the business and what are the
future prospects, which wants be attain in future in a effective and efficient manner.
Furthermore, business can be revised time to time as per the market trend, condition and
company's situation. Additionally, as per the recommendations of market research, it is necessary
to the enterprise, must be makes changes in its business plan in a significant manner.
To incorporate changes in plan, must be select appropriate methodology for conducting
research in external market place. Cited company should understand various ways and sources of
gathering information as well as evaluate result of collected information and data from external
environment. Thus, based on the result effective methodology can be selected. Therefore,
company has to be recruit human resources in the organisation for completing the market
research. Hence, business plan required to be developed to promote new areas in external
environment. Apart from this, THE ELM THREE HOTEL can be used their existing employees
and new workers for conducting marker research.
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3.3 Prepare an action plan to implement the changes
For implementing the changes in cited business firm, must be prepare and effective
business plan, in which included all major activities and operations in a systematic manner
within proper time schedule (Chittithaworn and et. al., 2011). As per the market trends and
customer's requirements should be update and modify existing working style and system of the
firm with the help of smart ideas and methods. In the Business plan includes some stages such as
follows:
Tasks Planned time Explanation
Executive summary 15-20 days THE ELM TREE HOTEL, is a
small-business hotel of UK. It
provides several kind of hotel
facilities to customers. It wants
to be increase productivity and
profitability in the effective
and efficient manner.
Description of company 3-7 days THE ELM TREE HOTEL,
established in whitewashed
Victorian building of UK. It
provides rooms services with
full features and frailties such
as breakfast, lunch, dinner,
Wi-Fi, gym and so more.
Furthermore, one of the major
objective of this firm is, it
wants to expand their hotel in
several areas as well as
increase profitability level
(Yallapragada and Bhuiyan,
2011).
9

Market research 20 days After describing hotel in a
significant manner, then must
be choose appropriate
methodology for conducting
research in external market
place as well as for identifying
current situation and
customer's demand from hotel.
Target market 3-5days After conducting market
research, must be select target
market for expanding
organisation as well as for
enhancing profitability of firm.
Marketing and sales 6-7 days In the next of business plan,
should select and choose
appropriate tools and
techniques of marketing (Rae,
2010). So, with the help of
promotional and sales methods
employees can promote their
hotel as well as can attract high
number of customers towards
hotel.
Request for funding 15- 20 days In this last stage, identify and
determine several sources of
funding, so employers of hotel
can collect fund for promoting
business.
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TASK 4
4.1 Impact of the proposed changes on business and its personnel
Any changes in the business working system have directly impacts on organisation either
positive or negative. Furthermore, proposed changes can helps to increase profitability and
productivity of firm as well as gain competitive advantages in a effective and efficient manner.
There are explaining some impacts of proposed changes in THE ELM TREE HOTEL such as
follows:
 Finance: In the context of finance, proposed changes in hotel positively impacts, if it is
carried out in a systematic manner. Furthermore, success of a business depends on
employee's working performance and involvement as well as new team of that will be
recruited.
 Workloads: This hotel already have tight schedule of working at this time, thus in the
business plan it has been recruit new human resources for conducting market research as
well as for expanding firm in different areas. Therefore, existing employees of this hotel
can be trained for getting success as well as carry forward business operations in a
systematic way.
 Morale: As a new team members or employees recruited in a firm, there are having some
chances that existing employees of company can feel insecure. But THE ELM TREE
HOTEL, focuses on to encourage team sprite as well as moral of employees. So they can
significantly perform their tasks also attain goals and objectives.
 Organisational structure: In this organisation may be required some changes in
organisational structure as well as job profile of exiting employees. With the help of this,
make some space for new team members, so they will significantly working on market
research.
4.2 The way changes will be managed in business
Most of the small-businesses don't want to adopt changes in their working system and
polices because it includes some risks. But if changes are done intensionally in hotel, is helps to
develop better work place as well as healthy working environment. Hence,. In the context of
THE ELM TREE HOTEL, proposed changes can have impacts on firm as well as existing
employees. By conducting market research, this hotel identified and analysed several sources of
11

getting success. This hotel can bring more profit as well as it can be focus on local and nation
customers in a significant manner.
While working system and polices of hotel become more established and effective in
nature, which effect on working performance of organisation as well as employees. Additionally,
existing workers also can improve confidence and moral towards their tasks. For every
organisation must be implement the changes because it helps to create existing employees more
flexible as compare with others as well as willing to learn new tasks without any hesitation. In
this addition, to existing workers must be provide proper training to significantly perform
operations of firm in the field of market research. Moreover, also it is necessary to maintain team
sprite with the help of leadership during the adopting changes process in action.
4.3 Monitor improvements in the performance of business over a given timescale
For effectively monitoring and analysing actual working performance and impacts of
proposed changes on business. So there are representing a time scale, which is related to THE
ELM TRRE HOTEL. In which shows, major goals and objectives of firm, which wants to be
achieve in future in the effective and efficient manner (Al-Dajani and Marlow, 2010). Apart from
this, it is very essential for every business firm must be monitor actual working performance and
environment of the firm because it will helps to take corrective action regarding any situation.
Goals Time period Review
One stop tradition By the end of 2017 Providing entertaining hotel
services and facilities to
customers as well as open bar,
night clubs and restaurants for
them.
To become one of the number
one hotel in local areas of
nation
By 2017 THE ELM TREE HOTEL,
wants to become one of the
leading and royal hotel in UK.
Facilities By 2017 Cited organisation focuses on
to provide better services and
facilities to customers as per
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their needs and taste so they
can get proper satisfaction
towards their requirements.
Attract high number of
customers towards hotel
By 2017 THE ELM TREE HOTEL,
launch several offers and
packages for customers
because it wants to be get more
attention from consumers.
CONCLUSION
From the above report, it can be concluded that small-business firms are growing at a fast
pace across the world. It has been defined major strengths and weaknesses of THE ELM TREE
HOTEL such as one of the major strength is, it has more experience in this sector as well as
knowledgeable employees are working in this hotel. Here has been defined actual sales of 2016
is £ 200 and in 2017 is £ 400 additionally cost of sales is £ 150 and £ 250 respectively.
Furthermore, it has been concluded that major objectives and goals of this hotel such as it seeks
to be expand their business firm in different areas, due to they conducted market research for
identify external environment. Here has been produced a effective business plan within proper
description and time schedule.
13

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Online
SWOT Analysis, 2017. [Online]. Available through:
<https://research-methodology.net/theory/strategy/swot-analysis/>. [Accessed on 15th
September 2017]