Impact of Community Banks on Credit Availability, Risk, and Profitability

The provided content discusses various aspects of small businesses and entrepreneurship, including the impact of community banks on credit availability, risk, and profitability. It also covers topics such as entrepreneurial attitudes, business growth strategies, and sustainability initiatives in small enterprises. The articles and books reviewed include works by authors like Peter Burns, Michael Cowling, and Sarah Carter. The content aims to provide insights into the challenges and opportunities faced by small businesses and entrepreneurs.

Small Business Enterprise
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Producing a profile of selected business ...............................................................................3
1.2 Analyzing the financial performance of firm with its competitors........................................4
TASK 2............................................................................................................................................5
2.1 Recommending with justification, an appropriate action to overcome the weaknesses........5
2.2 Analyzing ways in which the existing performance could be managed and strengthened....6
2.3 Suggesting new areas in which business could expand with reasonable justification...........7
TASK 3............................................................................................................................................8
3.1 Assessing the existing objectives of the business as well as plans........................................8
3.2 Revising the business plan for incorporating the changes ....................................................9
3.3 Preparing an action plan to implement the changes.............................................................10
Task 4.............................................................................................................................................11
4.1 Impact of the proposed changes on the business and its personnel....................................11
4.2 Plan for how the changes will be managed in the business................................................12
4.3 The improvements in the performance of the business over the past two years (preferably
using trend graph or other suitable reporting format)................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15
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INTRODUCTION
Operating the business at small level is the most important task as management need to
take the risk and ensure the successful operation of the same in the marketplace. This requires to
take action related to management of different business activities such as arranging financial and
allocating the same for accomplishing long and well as short term objectives. Present report is
based on Hungry House that is an online takeaway ordering service company which established
in the year 2007. It is the UK based business which assists corporation to generate the
investment and meet the expectations of large number of buyers effectively. Further, detail
analysis of business is done with the help of its Swot and financial analysis. Apart from this,
existing business objectives are explained along with suggestions to bring changes. In addition to
this, improvement in the performance of the business over the past two years has been explained.
TASK 1
1.1 Producing a profile of selected business
The profile of selected business such Hungry house has been presented as follows. These
detail of the corporation proves to be effective to gather all important information related to
business.
Organization’s name Hungry House (online food ordering)
Vision To offer delicious & healthy food along with extraordinary dining
for the happiness & joy of our customers.
Mission To be an excellent restaurant operator that offers healthy &
delicious food to customer's. & to provide a quick and warm
services to maximize customer's satisfaction.
Key people Children's & couples who mostly avail the fast food items
History Hungry house was founded in 2003 by the Shane Lake & Tony
Charles they was a co founder of the company. They launched the
online platform in 2006 for the online food ordering. The sales
turnover was generated by the company was 100000 in 2007. The
total revenue was increased up to the 150000 after the deal with
the different alternatives. At the initial level the firm wanted to
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increasing the hungry house restaurant partners from 150 to 2500 in
between the duration of 2007-2010.
Activities and functions The hungry house company have a online platform via the free
iPhone or Android apps. By the use of this app customer can
identify their address, they also browse the menus & services which
are offered by the company & read customer reviews regarding to
their services. To place an order on the online & select the menu
item To offer delicious and healthy food along with extraordinary
dining service for the happiness and joy of our customers which are
placed in the order basket after that online payment can be made via
credit/debit card (Hungry House Customer Service Contact Details,
2017)
Business location London, UK
Strengths & weaknesses Strength – Minimum spend bracket will ensure a higher spend from
customers. High convenience service, central location, dense
population.
Weaknesses – Can only reach a set radius & high operational
cost/running of delivery vehicle. & their Competitors are Just Eat,
Grub Hub & Deliveroo
1.2 Analyzing the financial performance of firm with its competitors
The financial performance of Hungry House has been assessed with the help of ratio
analysis under which shed light on different areas such as production, marketing and sales as
well as human resources practices. In this manner, corporation can effectively contribute towards
delivering good quality of services and create competitive edge in the marketplace. Furthermore,
Hungry house tend to follow good HRM practices for building good relationship with workforce
and supporting them in achieving long as well as short term objectives in the marketplace. For
this purpose, it is important for corporation to focus upon motivate personnel (Berger, A.N.,
Cowan and Frame, 2011). At the same time, management uses innovative tools and technologies
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for delivering the product among end users and keep the customers update related to varied
products and services. It facilitates to increase overall rate of return in the marketplace. Apart
from this, marketing services are also delivered with the help of effective technological
implementation. For example, social media marketing is used to target end users and make the
able to access varied products and services which are being offered by Hungry house.
Furthermore, the firm is operating in accordance with industry average through which it
becomes easy to cope up with changing scenario and retain all its buyers for longer time span. It
can be critically evaluated that marketing department of corporation is performing in a very well
manner (Burns, 2010). Owing to this, it is important for management to support all operational
activities and carry out business with higher level of competitive edge in the marketplace.
Year Profit before
tax(values in 000)
Taxation Profit after tax
2016 £600 100 £500
2015 £500 70 £430
2014 £450 50 £400
The performance of current business can be assessed with the help of financial analysis.
Here, the assumed table of profitability of Hungry house reflects that profitability is increased
with the higher sales turnover. This aspect tend to cater need of all related parties and support
them in achieving long as well as short term objectives. Furthermore, firm is following the
industry average and this is the main reason that it can ensure its long run survival in the
marketplace with the increased rate of return.
TASK 2
2.1 Recommending with justification, an appropriate action to overcome the weaknesses
According to the review of the organization it has been found that management of
Hungry house focuses only on single aspect of business as delivery of food by contacting the
several restaurant. This tends to increase the risk of business through which its rate of return
might be decreased. Apart from this, poor research and development activities tend to affect
performance of the firm to a great extent. At this juncture, it is important to focus on weakness
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related to research and development so that accordingly operational activities can be manged.
However, skilled and competent personnel should be hired in the firm just for sake of delivering
better quality of services (Cowling, Liu and Ledger, 2012). However, firm can cooperate
business to start its own venture with greater rate of return in case all its weaknesses are
overcome. This would be more effective for business to shed light on expansion and growth of
the business. At this juncture, all departments like marketing and HRM are considered. This
contributes towards increasing customer base and create competitive edge in the business. Apart
from corporation should also collect data from varied sources like census report and other related
data. In this manner, management can effectively retail all its buyers. At the same time, it is
important for firm to allocate resources like physical, physical and human resources which aid to
manage all business activities effectively (Down, 2015).
In addition to this, weaknesses of business can also be overcome by using suitable
approach to maintain cultural diversity. It is because cultural diversity aids to ensure long run
survival of the firm in term of employee integration. However, workforce integration is the
important aspect associated with growth and development of corporation. Furthermore, training
and development activities can be organized for enhancing workforce motivation and enhance
their skills. This proves to be effective for developing their strong base and make them able to
support management to create competitive edge in the marketplace.
2.2 Analyzing ways in which the existing performance could be managed and strengthened
There are different ways which can be used by Hungry house to improve the performance
and build its goodwill in the marketplace. For this purpose, strategies like customer feedback,
employee participation and training & development etc can be implemented at workplace. The
first aspect is showing that customer feedback can be used under which workforce come to know
about potential areas of improvement whereby it becomes easy to improve the current
performance (Halme and Korpela, 2014). Here, major aspect to take feedback is related to asking
personnel to prepare an effective message with customers so that accordingly they can reply on
the same. This tends to support firm in delivering good quality of services to large number of
buyers.
The major areas discover for existing performance is related to research and development
as well as technological innovation. This would be effective for management to bring necessary
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chnages in the current performance and enables them to contribute towards growth and success
of the same. Apart from this, corporation must shed light on discovered areas of improvement. It
will have direct impact on revenue of the business and accordingly higher performance of the
same can be maintained with higher rate of return (Rainer, Cegielski and Sanchez-Rodriguez,
2013). Moreover, greater level of motivation and satisfaction of personnel is also the major
aspect whereby firm can accomplish its long as well as short term objectives in the marketplace.
Furthermore, for bringing changes in the existing business performance, Hungry house can
access cost effective source of finance. These sources of finance will reduce burden of the
business and accordingly all related business activities are completed in an effectual manner.
Moreover, management will be able to build its competitive edge in the marketplace.
Furthermore, corporation should also maintain the standard system of delivery and motivate all
its personnel to accomplish all business related activities and support them to meet expectations
of all related stakeholders. In this manner, proposed areas of change tend to be effective for
Hungry house as it aids to retain buyers and create strong position of the company in the
marketplace (Thomas, 2013).
2.3 Suggesting new areas in which business could expand with reasonable justification
There are several new areas where firm can expand its business with greater rate of
return. The first and foremost area is related to production. This shows that Hungry house can
start its own production by offering most liking food to consumers. This is because presently
firm is working as mediator between customer and restaurants. This is the indirect manner
through which management of Hungry house get to know about liking and disliking of
consumers and accordingly they can be offered very good quality of products and services. In
this manner, research and development areas and innovation in technologies along with training
and development among workforce (Vorley and Williams, 2016).
Furthermore, new areas will be developed related to production of varied food range
through which corporation can effectively retain its buyers along with contact with other users or
clients such as number of restaurants. Similarly, Hungry house can adopt social media
marketing strategies wherein tools like Facebook, Twitter and YouTube etc can be used for
increasing customer base. It facilitates to cater need of large number of buyers. Furthermore,
expansion of the business is in the same sector but it would be effective to mitigate risk. This is
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because in case clients are decreased then also firm can maintain its higher rate of return. Apart
from this, starting own production make it possible to reduce overall risk because customer
preferences are already known for firm (Ackermann and Audretsch, 2013). Hence, it is the most
effective approach for firm to stay connected with consumers. However, this can be made
possible only by using social media strategies. Thus, expansion of firm tends to support all its
stakeholders and related parties of the business to contribute towards its growth and success
effectively. Therefore, appropriate strategies can be used such as market and product
development both for the purpose of expansion of the Hungry house. Moreover, marketing
activities of client business can also be designed by Hungry house as it is well aware of
customer preferences.
TASK 3
3.1 Assessing the existing objectives of the business as well as plans Description of the organization: It is being stated that Hungry house was being founded
in the year 2003. The organization is offering its customer with potential platform for the
sake of ordering the food online within UK. In addition to this Hungry house also offers
services that is comprised of browsing menu of the restaurant as well as seeking for the
review that customers offer. Marketing examples: The marketing as well as promotion is being carried out by the
brand regarding all its products as well as services by both means. This is comprised of
online as well as offline platform. For instance it has made development of its official
page over social media sites like Facebook. This offers the small business an opportunity
in interacting with the customers, make them aware regarding the product/ service
provided and promote it (Burns, 2010). In relation with the competition it can be
determined that The Love Takeaway is regarded as the major competitor of Hungry
house that offers intense competition to the small business enterprise. Operations: It includes the location of the firm as well as transportation. The
organization is located in 78 York Street WIH IDP. Further at present it is providing
services by means of online platform. It is important for the customers to visit the online
site of the firm for the sake of making purchase and making utilization services offered
by the small business. Moreover the business has made adoption of moderate strategy for
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pricing for the sake of gaining competitive edge over the major competitors (Burrows,
2015).
 Financial source of finance: Loan from bank as well as owners capital is regarded as the
two major source of finance that needs to be taken into account by Hungry house. This is
for the sake of carrying out smooth flow of operations as well as practices of the
organization.
The specific business objective plans have been presented in the manner as below:
 To raise the sales as well as profitability by 30% in the next 2 years
 To increase the base of customers by 15% within next one year
 To establish 5 new physical stores in the period of next 3 years
3.2 Revising the business plan for incorporating the changes
It has been determined that for the purpose of incorporating the changes it is important
for Hungry house to make adoption of open communication process. The employees as well as
other members of staff must be allowed to demonstrate their views as well as opinions regarding
the success of the firm. By the means of assessment carried above it is being determined that
Hungry house need to enhance its sale by 30% in the next two years. Further it has been
presented that firm is required to pay greater emphasis on its marketing activities for the sake of
attaining desired targets. Within the business plan devised by Hungry house there are some
improvements which has to be conducted (Carter and Evans, 2006). For instance, It is required to
add certain aggressive strategies for the sake of attaining long term as well as short term
objectives. Moreover monitoring is needed for becoming more effective so that organization is
able to gain insight towards understanding whether its resources as well as efforts are in the right
direction. It has been determined that firm is required to make adoption of the new tools relating
with marketing. This assist it is attracting greater number of customers. Further it assist in
ensuring the company's development as well (Dobbs and Hamilton, 2007). Therefore the small
business enterprise needs to make use of certain new strategies associated with marketing in the
whole business strategies. The presented strategies needs to be changed in the procedure of
monitoring the performance at Hungry House. This is effective in management of the work and
making sure that all the activities are being performed by the firm with greater effectiveness.
Further the business is making effective utilization of the resources in order to provide services
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to the users that is important for the organization. Hungry house is required to make development
of smart targets so that it able to measure within suitable frame of time. Moreover achievement
of the target can be attained.
3.3 Preparing an action plan to implement the changes
The action plan to implement change is completed in the sequential manner whereby
business need to put efforts to frame the objective at first. For this purpose company shed light
on developing research and development activities along with implementation of training
program. This aspect assists Hungry House to update the work with varied kind of technical
innovation in for different department such as production and marketing related activities. At this
juncture, following action plan will be implemented by management of Hungry house.
Activities
/Weeks
1 2 3 4 5 6 7 8 9 10 11
Framing
objectives
Initiative
changes
Plan for
change
implemen
tation
Implemen
ting the
changes
Monitorin
g of
changes
implemen
ted
Taking
corrective
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measures
Getting
desired
results
TASK 4
4.1 Impact of the proposed changes on the business and its personnel
Impact of the proposed changes mainly due to the Technological changes, intensive
research program to evaluate the over all organization performance and customers satisfaction
the for most part is the training & development program. By the technological advancement the
growth in the personal development as well as the effective changes in the organization
performance. its a key factor for improving the performance of the over all activities. the major
cost is incurred in the research program for solving the queries & identify the key improvement
factors which provides the overall efficiency towards the attainment of the hungry-house goal.
Training program gives the personal benefits to the restaurant employees for the updating the
skill & enhance the knowledge towards the work culture to meet the goal (Eid and El-Gohary,
2013). Training function gives the opportunity to increase the level of efficiency for the less
skilled employees.
Mainly three particular aspects of the organization will be affected by the technological
change: that increases the market competition up to an extent level, which will affect the level of
competencies at an individual level so that they maintains the more diversity & the high quality
product & services. It also maintain the better relationship between the employees & customers
for maintaining the regular contact between them to identify the needs & makes the customer
satisfaction level for an organization purpose. Research may be a socio economic type to check
the motivation level of the employees & to identify the factors which makes the environment is
more competitive (Harris, Gibson and Taylor, 2015). Research is also useful for making the
strategy according to the willingness power of the hungry house. Dynamic change in the world
environment so that the employers are more concerned about the employees retention &
controlled employees turnover rather than cut the cost. The core purpose of training &
development program the employee motivation is improves the employee performance resulting
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in enhance the organizational performance. It also useful for growing the skill & knowledge in
order to perform the specific job. The systematic course of training in which the essential
knowledge, skill & attitude of employees to attain the organization objective (Longenecker and
et. al., 2013).
4.2 Plan for how the changes will be managed in the business
Top level executive firstly prepare the plan for all the activities & manage accordingly in
a sequence manner after-that all the activities are communicated to their subordinates at the
middle level & low level because they are well known about the changes before they applied,
and at the execution level so that they easily accept the changes accordingly set the mind set.
After the planning identifying all those factors which the organization want to change it
(Sluyterman, 2013). So that the plan effectively communicates to all concerned people.
Research basically improves the all over performance of the organization's because the survey &
other methods are implemented as whole not as an individual level. At the initial level the
employees of the hungry man might be resist to accept the changes so that they want to realize
the need of changes. Also share the benefits after changing the functions. Employees are very
well worse & know about the newly set strategies regarding to the level acceptability of the new
changes. they don't go to the outside of their comfort area. At the time of implementation the
complexity increases regarding the work. & the level of competencies will be required to accept
the desired changes. All the employees have different mindset so that the way of thinking is
different to one another. So that identify the internal activities those plays a important role &
eliminate the non value added activities,functions across the hungry house (Thomson and
McAdoo, 2015).
Most of the organization always follows the set policies & strategies which makes the
employees behavior irritates for doing the same type of work & don't accept the change with the
changing environment so that staff are less productive. Every organization follows the changing
environment for more productivity & they are self motivated towards the achievement of the
goal because they want to do a creative type of work which enhance the knowledge &
acceptability power (Woo, 2015). Everyone wants to continue learning & able to meet the
challenges of changes in the organization. Well trained staff easily accept the challenges with
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less problems. Dynamic changes in the environment will be more successful at attracting &
retaining the employees.
4.3 The improvements in the performance of the business over the past two years (preferably
using trend graph or other suitable reporting format)
Today's environment is the dynamic in nature that are rapidly growing in nature with an
easily acceptability power. So that in market the competition is increases up to an extent level to
meet the customer demands. Hungry house also wants to get the competitive advantage in the
market place so they regularly updates their strategies & policies under taken in change
environment. most of the organization basically follows the democratic leadership style in which
all the employees get participated in making the decision & preparing the strategies according to
the desired needs & expectations. In now business trend the work are distributed on the target
basis not on the regular work basis (Berger, Cowan and Frame, 2011). In recent days hungry
house follows the performance management system for measuring the over all efficiency its
basically very useful for evaluating the team performance. Performance appraisal is the part of
the performance management system for better identifying the all over performance efficiency.
Performance appraisals is useful for individual performance measurement.
Training & development program is effective in now a days for skill & knowledge
enhancement purpose it improves the better relationship between the employees &
management,which provide the effective mode of channel for sharing the opinion & ideas
(Burns, 2010). If they are suitable & accept it. Customer satisfaction is the big element of any
company. Hungry-house follows the strategy to match your goods & services to your customers
needs & expectation because customer's preference & taste are continuously change with the
changes in the technological advancement. So that research study being required for innovation
in the existing the product & services & launch the new product & services according to their
customer demand & gain the competitive advantage. Mainly products & services faces the
problems regarding the prices of the competitive products & on the after sales service ,design,
packaging & sales service facility. Mostly new businesses are short term in nature& in a reactive
way. They offers a great level of flexibility in a time & cost manner that type of businesses is fast
growing & developing strategy (Cowling, Liu, and Ledger, 2012).
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CONCLUSION
The aforementioned report concludes that management of different business activities can
be done by following appropriate plan. This facilitates firm to integrate different operational
activities and generated higher rate of return for the business. It can also be said that proposed
changes must be implemented along with increased level of motivation among workforce. This
proves to be effective to create competitive edge of the business and support all related
stakeholders in an effectual manner. Furthermore, social media strategies contribute towards
marketing of products and services effectively for meeting expectations of all related buyers.
Moreover, appropriate plan can be used for resolving potential issues faced by business.
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REFERENCES
Journals and books
Ackermann, S.J. and Audretsch, D.B. Eds., 2013. The economics of small firms: A European
challenge (Vol. 11). Springer Science & Business Media.
Berger, A.N., Cowan, A.M. and Frame, W.S., 2011. The surprising use of credit scoring in small
business lending by community banks and the attendant effects on credit availability,
risk, and profitability. Journal of Financial Services Research. 39(1-2). pp.1-17.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave
Macmillan.
Burns, P., 2010. Entrepreneurship and small business. Palgrave Macmillan.
Burrows, R. ed., 2015. Deciphering the Enterprise Culture (Routledge Revivals):
Entrepreneurship, Petty Capitalism and the Restructuring of Britain. Routledge.
Carter, S. and Evans, D., 2006. Enterprise and small business: Principles, Practice and Policy.
FT Prentice Hall.
Cowling, M., Liu, W. and Ledger, A., 2012. Small business financing in the UK before and
during the current financial crisis. International Small Business Journal. 30(7). pp.778-
800.
Dobbs, M. and Hamilton, R. T., 2007. Small business growth: recent evidence and new
directions. International journal of entrepreneurial behavior & research. 13(5). pp 296-
322.
Down, S., 2015. Narratives of enterprise revisited: methodological appendices in ethnographic
books. Journal of Organizational Ethnography. 4(1). pp.28-43.
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.
Halme, M. and Korpela, M., 2014. Responsible Innovation toward sustainable development in
small and medium‐sized enterprises: a resource perspective. Business Strategy and the
Environment. 23(8). pp.547-566.
Harris, M.L., Gibson, S.G. and Taylor, S.R., 2015. Examining the impact of small business
institute participation on entrepreneurial attitudes. Journal of Small Business Strategy.
18(2). pp.57-76.
Longenecker, J. and et. al., 2013. Small business management. Cengage Learning.
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Rainer, R. K., Cegielski, C. G. and Sanchez-Rodriguez, C., 2013. Introduction to information
systems: Supporting and transforming business. John Wiley & Sons.
Sluyterman, K.E., 2013. Dutch Enterprise in the 20th Century: Business Strategies in Small
Open Country. Routledge.
Thomas, R., 2013. Small firms in tourism. Routledge.
Thomson, D. and McAdoo, K., 2015. An exploration into the development of motivation to
exercise in a group of male UK regular gym users. International Journal of Sport and
Exercise Psychology. pp 1-16.
Vorley, T. and Williams, N., 2016. Not just dialling it in: Examining cognitive-based approaches
in enterprise education using a smartphone application. Education+ Training. 58(1).
pp.45-60.
Woo, S., 2015. Deciding how to implement a sustainability initiative at SHN engineering, a
small business enterprise (Doctoral dissertation, Humboldt State University).
Online
Hungry House Customer Service Contact Details 2017. [Online]. Available through: < http
https://www.resolver.co.uk/companies/hungry-house-complaints/contact-details>
[Accessed on 7th February 2017].
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