Strategic Management in Small Businesses

This assignment delves into the crucial role of strategic management in driving the success of small businesses. It examines various strategic orientations, performance measurement systems, and the influence of factors like entrepreneurial orientation and market turbulence on SME performance. The analysis draws upon academic research and case studies to understand the complexities of strategic management in a dynamic business environment.

Running head: SMALL BUSINESS ENTERPRISE
Small Business Enterprise
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
1.1: Profile of the company and the strengths and weaknesses...................................................4
Overview of the company........................................................................................................4
SWOT analysis of the company..................................................................................................5
Strengths..................................................................................................................................5
Weaknesses..............................................................................................................................5
Opportunities...........................................................................................................................5
Threats.....................................................................................................................................6
1.2: Analysis of the business using performance measures.........................................................6
Task 2...............................................................................................................................................7
2.1: Justification in overcoming the weakness of the business...................................................7
2.2: Ways in increasing the performances, maintaining and strengthening it.............................8
2.3: Justification and new areas that will help the business to expand........................................9
Task 3.............................................................................................................................................10
3.1: Assessment of the objectives and plans of the existing business.......................................10
3.2: Revision of business plans in incorporating the necessary changes...................................11
3.3: Action plan for implementing the changes.........................................................................12
Task 4.............................................................................................................................................13

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4.1: Impact of the change on the personnel...............................................................................13
4.2: Plans on managing the changes in the business.................................................................14
4.3: Monitoring the improvements in the business....................................................................15
Conclusion.....................................................................................................................................15
Reference List................................................................................................................................17

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Introduction
The enterprises of business can be differentiated with respect to the scales through which
its operations are done. These enterprises are owned in an independent manner and try to earn its
revenue through the operations that it carries out within the industry. The primary purpose of this
report is to analyze the operations of the small enterprises and assess its strengths and
weaknesses so that it can help the company in overcoming it. It will help in identifying the
weaknesses that needs to be overcome along with continuing its performances in the industry
(Storey 2016). It will also try to evaluate the present objectives and change it accordingly so that
it can help the enterprise in earning its profits. It will also try to analyze and monitor the
improvements that need to be done in the business performance so that it can help the business to
be successful. To gain a proper understanding about the small enterprises, the functions of an
accounting firm named Mac Accounting has been taken in to consideration (Schaper et al. 2014).
An enterprise that is considered to be smaller in nature has to have a business where the
turnover is less than $10 million and has around fifty employees. The objective of these
businesses is to offer the products and the services at a reasonable price so that it can help in
attracting the customers towards it. They mainly keep their focus on the quality of the product
that they are offering along with the price at which it is being available in the market. The
context of these businesses is that they will try to set up their establishment in some of the
busiest areas so that it can help in grabbing the attention of the customers so that the sales can be
maximized.
These enterprises mainly face a high level of competition, as the presence of global
organization tends to hamper their sale of the products. The bigger organizations provide more

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space for the customers along with different products, which provides the customers a wider
variety of opportunities from where they can choose the products or the services. The
performance of the organization along with the employees is observed mainly by the supervisors
so that the function ns can be operated in a proper manner. the observations are mainly done on
the basis of the punctuality and the way in which they tend to serve the customers.
Task 1
1.1: Profile of the company and the strengths and weaknesses
Overview of the company
The company is in operation so that it can help in executing the principles of
management that are related to accountancy. The company is providing better opportunities to
the young employees in exploring the market so that they can develop their career in the areas
that they are interested. The company provides advices to different organizations and businesses
in Australia so that these organizations can execute their systems in a proper manner (Blackburn,
Hart and Wainwright 2013). The company provides employees who are experts in the field of
information and research so that they can give advices to the other organizations. The members
are knowledgeable about the roles that they carry within the organization and proper training is
provided to them so that they can help in satisfying the clients and the customers who approaches
them. The company is known as an expert in the accounting and management field and provides
consultancy to the other organizations on using the accounting principles as an effective tool of
management (Curran and Storey 2016).

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SWOT analysis of the company
Strengths
The primary strength of the company is that it hires qualified employees so that they can
provide their knowledge in different segments. The employees share a strong relationship with
the senior management, which helps them in executing the work in an organized manner. The
company also has a strong presence of the brand in the local market, which has helped them in
attracting more number of clients. This has helped them in increasing their profits, as most of the
leading organization consults them regarding the accounting principles (Burrows 2015).
Weaknesses
The company is facing stiff competition from the industries that are operating on a larger
scale and from different consulting agencies as well. The company is a small unit, as it has not
been able to be recognized on a global manner or within the national market. Another major
weakness is that the employees have to carry out in-depth analysis sometimes, as per the
requirement of the clients, which takes up time. The cost structure of the company is ineffective,
which has created problem in using the resources in an efficient manner (Power 2014).
Opportunities
The opportunity of the company is that the demand of consultancy firms with respect to
management and accounting is increasing rapidly due to the rise of various organizations. The
company can use the strategies in diversifying themselves in to different as well, which will help
them in covering other queries of the clients as well. This will also help the company in
expanding its business in a better way, as the companies will be able to recognize the brand
(Goss 2015).

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Threats
The major consultancy firms are expanding on a greater level, which has helped them in
attracting the major companies towards themselves. The company is facing difficulty in adopting
the latest technologies, which is hampering their level of profit (Ackermann and Audretsch
2013).
1.2: Analysis of the business using performance measures
The company is operating as a smaller firm and is providing consults to various
organizations, which has helped them in attracting huge competition from the different agencies
that are also present in the same market along with the new companies that is entering in to the
market. It can be presently seen that for the past 10 years the returns on the investments for the
company is on the decreasing side, which is creating a reverse effect on the company
(Hilmersson 2014). With regards to the company, it can be seen that the company has
approximately earned around $15 million in the financial year of 2016, which has helped them in
accumulating almost 6 percent of the returns. The company has been experiencing growth in its
income and it has surged up to 20 percent due to the heavy demand of the services that it has
been providing to the organization despite the existence of competition (Freel 2013).
Additionally, the expansion of the business with respect to its operations has increased
the investments and changing the strategies for the company so that it can achieve its returns on
the investment that has been calculated. The business performance for the company needs to be
measured using the various ways so that it can help in calculating the decline or the growth of the
business (Grant 2016). The measures such as accounts receivable turnover analysis, gross and
net profit margin analysis will help the company in identifying its performances and the
improvement levels so that it can help them in maximizing it. The growth of the business can

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help them in grabbing the attention of the clients so that it can help them in increasing their
profits in a better manner. With the increase in its level of profits, the company can enhance its
ability in expanding its operations so that they can cover most of the target areas and establish its
position in the market in a better manner (O’Sullivan and Abela 2013).
Task 2
2.1: Justification in overcoming the weakness of the business
The analysis needs to be effective in nature so that it can help in managing the activities
of the business for the company. Some of the weaknesses of the firm have been identified, which
the company is facing on a regular basis. These weaknesses need to be overcome with the help of
strategies that are effective in nature so that it can help in establishing the business in an
appropriate manner (Dey and Cheffi 2013). The weaknesses that are crucial within the company
need to be analyzed so that it can help in effectively carrying out the business, which are as
follows:
Ineffective structure of cost- The company needs to focus on the structure of cost, which is being
followed by the upper management in the recent years. The structure of the cost helps in
portraying the position and the status of the enterprise, which will help in attracting the clients
towards them. The company needs to enhance its patterns of investment so that the structure of
the cost can be increased. Moreover, the improvement in the structure of the cost will help the
company in gaining the trust of the stakeholders so that the returns on the investment can be
increased (Laukkanen et al. 2013).
Increased competition- To help the company in gaining a sustainable position in the consultancy
sector, it is vital for the company to introduce new services within the enterprise so that the

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demands of the clients according to the recent trends can be met in an effective manner. An
example of this would be the recent boom in the educational industry where the students need to
be advised in a proper manner regarding pursuing their career. Therefore, it is necessary for the
company to reform its services so that it can expand itself in providing the students with better
consults, which will help them in creating a strong image of the brand along with the increase in
its values (Junni et al. 2013).
2.2: Ways in increasing the performances, maintaining and strengthening it
For improving the performances of the management that is present within the company,
they need to use various strategies. The growth of the enterprise will be sustainable in nature if
the performances can be used in a better way. The aspects that will help the company in
strengthening and maintaining its activities along with better returns on the returns are as
follows:
Demands that are growing- The increased rate of demands for the consultancy firms will help the
company in increasing its rate of profits along with the performance maintenance. The growing
rate of competition among the firms has helped in increasing the demands of the consultancy
organization in all the fields of business so that the competition can be avoided by those
organizations (Trainor et al. 2014). The base of the clients will increase, as the demand of the
consultancies is increasing on a regular manner, which will help in increasing the level of profit
for the company.
Higher expansion- Recently, it has been seen that there is an increasing trend of recruiting the
consultancy firms in the different areas that are present within the organization so that it can help
them in opening up of new opportunities. Apart from this, it also helps them in expanding the

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functionalities so that they can expand in new markets as well within the same industry. The
various sectors such as medical, educational, employment and other institutes are hiring these
agencies, which needs to be capitalized by Mac Accounting in broadening its scopes so that the
operations of the business can be expanded and profits can be increased (Rosemann and vom
Brocke 2015). The organization has the option in selecting any stream so that it can help them in
expanding its operations in different fields in an effective manner. On the contrary, it can be seen
that the company needs to plan out effective strategies so that it can help them in reaching the
desired outcomes by following the process in an organized manner. The use of the strategies and
the proper planning have an important role, as it will help the company in moving ahead in the
right direction so that they can achieve the desired success and achieve better growth with
respect to the performance of the company (Junni et al. 2013).
2.3: Justification and new areas that will help the business to expand
There are different areas, which can be adopted by the company so that it can expand its
operations within the specific industry. It can be seen that the organizations that are leading on a
global basis provides consultancy services to the different non-governmental and government
businesses in the current years. Thus, the company can develop new strategies so that they can
enter the educational sector, which in the recent years have been experiencing a boom.
Additionally, the company will be able to approach new people regarding the advices with
respect to employability in the respective field so that it can provide a competitive advantage to
the company (Schaltegger and Burritt 2014). It is seen that in the current times, the expansion in
the educational industry have a high scope apart from the competition, in providing better
guidelines and advice to the individuals. Nowadays, the individuals are trying to use the advices
so that it can help them in moving towards the right direction in an efficient manner. for

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example, the competition is present among the students in selecting the appropriate field of
education with respect to the higher studies so that they can have a positive career in the future.
The right selection will help the students in improving their career so they seek for advices to
move in a proper direction. Additionally, it can be seen that most of the enterprises are hiring
professionals so that they can be advised in a better manner. The advices will help them in
treading carefully and prevent the losses that they might face in the future. The company can be
in a contract with the sectors that requires proper advices so that the services can be effective and
increase the profit margin for those companies. This would lead to the opening up of new
avenues for Mac Accounting so that it can expand its business operation in other fields as well
(Rosemann and vom Brocke 2015).
Task 3
3.1: Assessment of the objectives and plans of the existing business
Most of the organizations needs to have a set of objectives, which will help them in
moving forward towards the desired profits for the enterprise. The framing of the objectives are
done so that it can help in effectively conducting the activities of business in a proper manner so
that the outputs of the business can be achieved. The objectives and the plans of the company are
as follows:
Enhancement of satisfaction and customer base- The business aims to procure high amount of
customers so that they can provide the best satisfactions to them. It can be seen that the clients
and the customers of the company are being provided with better advices so that it can help them
in taking better decisions while dealing with the respected issues. This helps the clients in
reaching higher level of satisfaction, as they feel more reliable and be inclined towards the

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company for achieving more success in their business. The services that are provided to them by
the company are at a low cost, which helps them in being satisfied with the services as well as
maintain a competitive advantage in the market (Cook, Tone and Zhu 2014).
Growth in the global market- The other organizations that are same as Mac Accounting are also
aiming to for a better growth in the globalized market by working hard and enhancing their
coverage area by using proper network so that it can help in attracting potential clients. It can be
seen that it has helped in serving most of the organizations that are internationally acclaimed and
promote the brand across different boundaries as well (Schaltegger and Wagner 2017).
3.2: Revision of business plans in incorporating the necessary changes
The present objectives and the plans of the company need to be evaluated so that the new
strategies that will be adopted within the business can help in bringing the changes in a positive
manner. The new business plans that will be used for the efficient operations are as follows:
Entry in new market- The company needs to utilize the opportunities in the new market so that
the options can be explored, which will help in serving the clients in a better manner so that they
can achieve maximum satisfaction. The emergence of the new activities in the business will help
the company in expanding its scope with respect to the profits so that it can operate in an
effective manner and achieve the desired profit. The entry in the new market will help in
researching the practices by the professionals in an effective manner, which will help in
contributing towards the achievement of the goals and increase the rate of success (Van
Horenbeek and Pintelon 2014).
Establishing business in a global manner- It can be seen that the company is trying to expand its
business in the international market, which on an initial basis needs to make its presence felt

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across the global boundaries. For achieving this, it is necessary for the company to carry out
intensive promotions so that it can help in spreading awareness among the people about the
company in the new market (Blome, Hollos and Paulraj 2014).
3.3: Action plan for implementing the changes
The new action plan that will be developed for the company will help the company in
improving its business in the educational industry. The changes need to be present in the action
plan so that it can help in the effective operation of the business. The action plan for the business
will be based on the following:
Identification of the activities- The plan of action from the beginning needs to recognize the
ideas where accounting can help in bringing changes for the organization. The main change is
the expansion of the business activities such as the new sectors needs to be recognized that can
help the company in investing in a positive manner (Clarysse et al. 2014).
Implementation of the process of change- The following step involves the stages that will help in
implementing the changes so that the new activities can be adopted within the place of work. For
instance, the organization can go in to a joint venture with the companies that are operating in
South Asia, which will help in increasing their level of profit. Thus, the company needs to
embrace the style of working that is present in the other company where Mac Accounting wishes
to go in a joint venture with (Homburg, Artz and Wieseke 2013).
Monitoring the process of change- The changes that are done in the company needs to be
executed and monitored so that it can help in effectively help in the evaluation of the process. If
the process of monitoring is not done in a proper manner, then it might lead to the accumulation
of losses within the company (Horkoff et al. 2014).

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Identifying the loop holes and improving it on a constant manner- This is the final stage in the
action plan, which will help in identifying the processes so that the loop holes in the work
process can be monitored in a better way. These functions will be helpful for the company in
achieving its goals in the long run for the company. It will also allow the business to make its
plan in a successful way so that the organization can function smoothly (Lechner and
Gudmundsson 2014).
Task 4
4.1: Impact of the change on the personnel
The changes that will be made in the business will help in creating various impacts,
which are as follows:
Presence of the business in the international market- After the changes have been implemented,
the company needs to increase its image in the international market. For the business to expand
on a global level, it needs to offer various courses that are present in the educational industry,
which will help in attracting the customers at a global level. This will directly result in the
improvement of the profits, as the revenues for the company will increase (Azzopardi and Nash
2013).
Responsibility of the officials will increase- It can be seen that with the expansion of the business
in the international market will result in increasing the responsibility of the officials so that the
activities of the organization can be monitored properly. Additionally, the members of the
organization have to be responsible so that it can create a positive impact on the organization. If
there are mistakes in the organization, it will have a negative impact on the financial conditions.

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Thus, it is necessary for the organization to be active and follow the responsibilities in a strict
manner (Bernadin and Wiatrowski 2013).
4.2: Plans on managing the changes in the business
The changes that will be made within the organization may create an issue among the
employees, which needs to be handled in a formal manner by the company. The leaders need to
accept the changes with the help of the stakeholders so that the changes can be implemented
within the organization in a proper manner. The management of the changes needs to be
integrated within the system so that it can help the organization in accepting the necessary
changes (Blome, Hollos and Paulraj 2014).
Starting from the top- When a change is being introduced within the organization, it has to be
executed at the top management, which needs to be reflected in the lower management as well
on a slower basis. This pattern of adapting to the change needs to be followed by Mac
Accounting.
Preparing for unexpected situations- The changes are often susceptible in creating problems
within the plan of the organization and may result in unexpected outcomes. Therefore, the
company needs to assess the magnitude of the change on a continuous basis so that the impact on
the organization can be judged. This will help the company in welcoming new changes as well,
which will help in providing positive outcome for the organization (Clarysse et al. 2014).
Accepting technology- The company needs to adopt the new technologies that are available in
the market so that it can help them in achieving their goals in an effective manner. The new
technologies will also help the company in being updated in the competitive environment as
well.

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Provision of training- The company needs to provide proper training to the employees so that it
can help them in adopting the changes in a proper manner, which will result in increasing the
level of productivity and the margin of profit for the company (Horkoff et al. 2014).
4.3: Monitoring the improvements in the business
The improvements of the business need to be monitored on a constant manner so that it
can help the enterprise in improving their performances on a daily basis as well by preventing the
losses. Various methods need to be used so that the performance of the business can be
measured. The company needs to set proper goals so that the upper management can measure its
performance and provide encouragement to the employees in providing better insights so that the
work can be minimized. Additionally, the upper management can convey the desired targets to
the employees so that they can achieve it for the company within the financial year. Apart from
this, the company needs to set SMART objectives so that the performance of the business can be
monitored effectively. These objectives will be to increase the business at a global level within
the present financial year along with the expansion of the customer base. It will also tend to look
in to the quality of the services that are being provided to the customers so that the revenue can
be increased for the company at the end of the financial year. This will help in increasing the
overall sales of the company as well. (Van Horenbeek and Pintelon 2014).
Conclusion
Thus, from the above report it can be concluded that the business enterprises that are
smaller in size are owned independently primarily and its regulations are limited due to the scale
of its operations and the size of the firm. To overcome the weaknesses of the company, effective
strategies need to be adopted so that the business can be established in an appropriate manner.

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This report helped in revealing the strategies that will be taken up by Mac Accounting so that
they can enter the educational sector, which is experiencing a boom period in the recent years.

17SMALL BUSINESS ENTERPRISE
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