Analyzing Entrepreneurial Enterprises and Small Business

The assignment requires analyzing entrepreneurial enterprises and small businesses by providing an overview of relevant literature. It involves identifying key concepts, theories, and models related to entrepreneurship and small business management. The Ansoff Matrix is used to understand the growth strategies of entrepreneurial enterprises and small businesses. Additionally, it explores factors affecting business success, resilience and competitiveness, social entrepreneurship start-up intentions, and environmental sustainability in small and medium-sized enterprises (SMEs).

SMALL BUSINESS
ENTERPRISE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Profile of small business with its strengths and weaknesses.................................................1
1.2 Business analysis with the help of using comparative measure............................................3
TASK 2............................................................................................................................................5
2.1 Actions to overcome weaknesses..........................................................................................5
2.2 Analyse the ways through which company can maintain their existing performance..........5
2.3 Recommendation for new areas for business expansion.......................................................6
TASK 3............................................................................................................................................8
3.1 Assessment for existing business plan and objective............................................................8
3.2 Revise business plan to incorporate changes........................................................................9
3.3 Action plan to implement changes......................................................................................10
TASK 4..........................................................................................................................................11
4.1 Impact of the changes on business and its personnel..........................................................11
4.2 Plan for managed changes...................................................................................................12
4.3 Monitor performance in providing time scale.....................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Economy of any country is a mixture of various number of business enterprises. Out of
them only small entities help in making any local region economy better. With assistance of this ,
a major concept is carrying out which is termed as small business enterprises. These business
segments plays an important role in generating more and more job opportunities and leads to aid
in generate more and more wealth so that many communities become able to make their living
easy (Altman, Sabato and Wilson, 2010). In this assignment, concept of small business is defined
with help of taking an example of Caffe Finix which is a local and small coffee shop business in
UK. In this investigation a valid conclusion get drawn by identifying strength and weakness of
small business with help of cited example context. Moreover, comparative measure of
performance also includes in this file. Along with that also major ways are discussed through
which existing performance can be strengthened. Further , a business have to revise their plans
on time so that an organisation can easily deal with all changes in an appropriate manner. Also,
several other things are evaluate in this assignment which signifies about the impact of change
management.
TASK 1
1.1 Profile of small business with its strengths and weaknesses
Small businesses have very limited area of operation and it employs small number of
employees in their business. Caffe Finix is local SBE in UK that offers various services to user.
This company provides finest quality coffee and other ancillary services to people. They have
focus on quality measures and pricing strategy so that they can attract people toward their offers.
This firm is very famous among people due to its quality services.
The owner of this corporate started this business with very limited fund but now it is
increasing on high level (Harris and Patten, 2014). They offers coffee, tea, breakfast and other
food items. This organisation is famous for local coffee addicts and this place is best suited to
friends and family due to its environment.
SWOT analysis
This is best way to formulate strategy according to capacity of business. It stands for
Strength, weakness, opportunity and threats. This is used by organization so that they can
identify its strength and weakness that provides assistance to make improvements.
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Strength:
It is key segment that states opportunities that are available in business. The ability of firm to
fulfil needs and demand of market is also considered in strength. It provides competitive
advantage to company in market (Audretsch and Link, 2012).
Strength of Caffe Finix as:-
 Process for producing quality product and services.
 Location of business i.e. at high street at shopping centre.
 Brand value in market. Flexibility to adopt modifications.
Weaknesses:
It is the limitation that exists in business. Sometime, it affects business in negative manner. This
creates hindrance in growth and development of business. Following are the weakness of above
firm as:-
 Lack of quality assistance.
 Weak food sector and high rent charges.
 High level of competition in market among this industry. Minimum value to future strategy.
Opportunities:
It is aspect of environment that offers advantage to organisation. It aids to secure competitive
advantage over its competitor (Bridge and O'Neill, 2012).
Opportunities are as follows:-
 Franchising of their business is one of the development opportunity.
 More investment in UK because this industry is making growth. Merge with large scale business.
Threats:
These are factors of environment that creates hindrance in the success of company. It creates
barrier in achieving goals and objectives. This is created due to unfavourable trends in market.
Threats are as:-
 Competitors of market.
 Changes in governmental policies and plan.
 Political instability which resulted into variation in tax and interest rate.
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1.2 Business analysis with the help of using comparative measure
Any business firm have to make a fair comparison between their present rate of
performance with past year (Burrows, 2015). This aid in making a valid conclusion through
which management can formulate effective plans and make their work effective. This leads to
make them in achieve all of their targets on time so that business can run in a proper manner. In
this context varieties of approaches are used in which comparing balance sheet, ratios and
several other things are taken into consideration (Burns, 2010). This is a major thing through
which decision makers can take proper judgements which assist in making survival of a firm
easy. Measurement of performance by using various methods are as follow:
For the year ended 30 April 2015 and 30 April 2016
2015 2016
£ £
Sales 120,000 200,00
Cost of sales 80,000 150,000
Gross profit 40,000 50,000
Overheads 10,000 15,000
Net profit 30,000 35,000
BALANCE SHEET as at 30 APRIL 2015 and 30 APRIL 2016
2015 2016
Fixed assets 15,000 12,000
Current assets
Stock 7,000 18,000
Debtors 12,000 36,000
Bank 1,000 0
20,000 54,000
Less Current liabilities
Creditors 6,000 15,000
Bank overdraft 0 10,000
6,000 25,000
Working capital 14,000 29,000
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Net Assets 29,000 41,000
Financed by capital
Opening capital 22,000 29,000
Add net profit 30,000 35,000
52,000 64,000
Less drawings 23,000 23,000
Closing capital 29,000 41,000
With proper analysing of balance sheet of Caffe Finix of year from 2015 to 2016, it is
clearly get identified that in 2015 closing stock of a company was 29,000 but at last of year
ending 2016 there closing stock leads to get increase 41,000 which shows that they are not
generating more and more profit (Chittithaworn and et. al., 2011). Hence, more amount of
inventory is remain unsold which is not a good news at all. Ratio calculation is also an another
important term through which firm current position get identified.
a) Current ratio = current asset / current liability
2015 2016
CR = CA / CL = 20000/ 6000 = 54000/ 25000
= 3.33 times = 2.16 times
As according to current ratio analysis, at the time of year 2015 company using their ratio
to pay their debts is 3 times. Hence their condition is good to pay all of their debts by using their
current ratio but on the other hand by taking ratio of 2016 into account, cited firm ratio is only
twice which signifies that they are in bad position as compared to previous year.
2) QUICK RATIO (ACID TEST) = CURRENT ASSET – inventory/current liabilities
2015 2016
Q r= CA– INVENTOR / CL
=20000– 7000/ 6000 =54000-18000/25000
= 2.17 = 1.44
Quick ratio is calculated to identify that how well a company is operating their business
to meet their short term financial problems (Buelens, 2011). In 2015, company is using their
quick ratio to pay off their short term debts and their ratio is twice which is good but in 29016
their ratio get decline and become 1.
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TASK 2
2.1 Actions to overcome weaknesses
This is important task for business to address issues that are faced by people with its
product and services. It creates hindrance in growth and development of organisation There are
some issues that are faced by Caffe Finix in market so it is essential for this company to take
effective measures so that they can address such problems. Problems are related to quality
assurance, expensive rent, enhancing goodwill of its competitor, weak food sector etc. These
falling elements affect business in negative manner (Fassin and et. al., 2015).
Quality assurance mechanism can be used by cited company to overcome to problems
related to standard quality. Effective procedure requires to established in business that ensure
taste and decoration. It is important for this company to use standardise material so that they can
provide quality services to users (Gunasekaran, Rai and Griffin, 2011). Company have faced
problems related to expensive rent. So they can run small bays in front of restaurant so that
people can reach to their services. To enhance number of customers they can provide various
offers so that consumers can attract toward it. There are many programmes and seminar that are
organised in UK in public so they can contract with them to supply best quality product and
services over there. It helps to enhance brand value of company and their business can be
recognized among people.
It is important for manager to devote their skills on internal and external environments so
that they can focus on upcoming strategy of organisation. There is one option that is available to
company i.e. to hire effective and knowledgable personnels in their organisation that they can
collectively work for common goal and attain best output out of their operation.
2.2 Analyse the ways through which company can maintain their existing performance
With the help of utilising proper strategies a firm become able to maintain their existing
performance. In this context, they have to identify the measures on which they were operate all
business activities. For this purpose, they have to maintain total quality of their products as well
as services which are provided by them. Along with that, a major concern also have to show on
atmosphere which is provided by company. Firstly, they have to identify and look upon on their
strengthened areas on which business was operating (Williams and Schaefe, 2013).
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1. Produce high quality products to their clients through which their optimum level of
satisfaction get arise.
2. Also management have to show some concern towards their services in which they can
add on home delivery etc.
3. Management have to choose such location for their outlets from where customers can
easily reach to them. In this context, they use shopping malls etc.
4. Authority have to provide strength to business by evaluating all market changes on time.
In this context, managers have to make a analysis by using marketing strategy for
improving business performance.
5. Also, work in favour of society and provide them some benefit of their business leads to
increase sales and provide strength to cited firm. In this context, they have to perform
CSR activity through which their working become effective in nature and users can
utilise their services for long term (Storey, 2016).
6. By providing quality services to all consumers, it leads to create a healthy and friendly
behaviour with all of their clients. This make in maximise business and promote in
providing strength to business through which their survival become easy and they can
sustain in market for long run.
7. Also by providing right thing at right time is a duty of supplier. If supplier provide all
goods and raw material on time then it leads to maximise their customer trust and create a
brand loyalty. Hence, this work only get done by paying all suppliers amount on time.
This factor is also work as in making a healthy behaviour with their suppliers.
These are some ways through which Caffe Finix can provide strength to business and
they can maintain their existing growth rate for their business. If management lead to failed in
perform any of above mention element will directly work as in decline of business and thus this
get measure by analysing last year records.
2.3 Recommendation for new areas for business expansion
At present coffee shop is located at Stratford. Now, management want to expand their
business to several other areas. For this purpose, they first have to analyse market and target
customers and after work on such issues which might get affect their business and operations.
Hence, with more and more expansion of business it promotes to success of firm. For this
scenario, company have to work on following terms which are as follow:
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1. Location: Cited entity have to choose such location which is easily convenient to their
target customers with high traffic pattern (Stokes, Wilson and Wilson, 2010). This leads
to make business survival more easy. Thus, by considering this point, coffee shop will
lead to keep in eyes of most of users.
2. Products: Also, they have to offer new range of goods and services. By serving more
quality products to target users will lead to attract more and more customers and their
satisfaction level get rises. They have to manage their coffee favours also through which
brand loyalty get maintained (Teece, 2010).
3. Employees: Another major thing which an entity have to taken into account is services
and behaviour of their employees towards customers. HR have to recruit such number of
workers who have some specialisation in making coffee and other products.
By working on all these aspects, authority have to formulate some strategies through
which their working become effective. In this context, Ansoff Matrix is consider as one of the
most beneficial strategy. By working on this scheme, decision makers have to look upon on these
some points of this matrix which are as follow:
1. Market penetration: As per this aspect, organisation tries to increase their market share in
current market prospect. For this purpose they can reduce their prices of product, use path
of acquisition etc. Company wants to increase their position at current market by finding
new customers at existing market.
2. Market development: With the help of using acquisition concept, company can expand
their business ate new market which is helpful for them in making their survival easy. In
this context, they have to target various number of groups which are beneficial for them.
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Illustration 1: Ansoff Matrix, 2017

TASK 3
3.1 Assessment for existing business plan and objective
For any organisation, it is compulsory for them to set some targets and objectives. In this
concern, they have to formulate some strategies and plans on which all execution of work get
done (Schaper and et. al., 2014). With proper formulation of all necessary things intro business,
it promotes in making a firm to successfully operate their activities. At first, cited firm have to
prepare a business plan in context of expansion of business. Objectives have to get set according
to need and requirement of business. A business plan is a framework on which all task and
targets get executed. This leads to make work easy and all projects get done in an appropriate
manner. If any of an individual or management will not formulate any sort of planning which is
related with working then they have to suffer heavy loss.
After a business plan, all objectives for a business get set. And it is a moral duty of
manager to implement these objectives in an effective manner. Some of the major objectives
which frame by decision makers are as follow:
 Become one of the most finest coffee shop of locality.
 Increase profit by using various segments.
 Maintain a 60% gross margin.
 Customer satisfaction.
Once goals and targets get formulate, management have to use several number of keys
which are helpful in success of any firm and their growth. These elements are as follow:
1. Prepare such type of interior which aid in attracting more and more customers and speed
up all operations.
2. Provide proper technique to all employees so that they can prepare quality flavour
coffee.
3. Formulate and use beneficial marketing strategies through which chances of target
achievement get rises.
These are some key elements which used by a firm in implement all of their objectives.
Hence some other points on which management have to keep their focus are as follow:
1. Provide quality products to their users at competitive prices. This support them in
engaging more and more customers (Shamuganathan and Nga, 2010).
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2. Provide more convenient method from which assistance customers can easily consume
their products. This get done while using high quality beans.
All these things have to get consider under a business plan which is become as necessity
for cited firm. Hence, they are already suffering low profit crises which is not suitable for them
while dealing with vast range of customers. According to present financial situation of a
company, their profit generation is not so high and thus this can create so much problem in
expansion of their firm. Thus financial issue is termed as one of a major crises from which Caffe
Finix is suffering very badly. All these things have to get incorporate in a business plan which
can be lead as helpful fact for them.
3.2 Revise business plan to incorporate changes
One of a most important work which have to be performed by each and every firm is to
change their business plan. This work should get done in according to demand and need of time
frame. Decision makers have to revise their plans as per requirement of time. Hence, they have
to make their strategies which is completely focused on their new customer and market. All these
factors have to get included in business plan which is serve as essential work.
In this perspective, management have to keep their focus on all their weakness. Working
on those issues is one a most important task for every management or central processing unit of
an organisation (Hilmersson, 2014).
 One of a major issue is their quality. Management have to hire such workers which are
able to make those products which leads to provide satisfactory level.
 Their prices are too high which is also not good. Hence, they have to control their rates.
 Another major factor is about finance and past records of business. Management have to
show some concern towards their previous financial statement.
All these things have to get done in according to business plans and objectives as with
support of strategies. Also, authority have to look upon on their employees and managers which
assist them in accomplishing all work in an effective manner. Some SMART objectives also
have to be formulate by business entity which are as follow:
Specific: As per this concept, management have to look such areas which really need
improvement. Cited firm have to take care about quality of product which is treated as specific in
nature.
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Measurable: Some factors which helps in motivate an individual are consider as measurable
content. For this context, cited firm have to use those approaches from which their employees get
encourage to perform all task.
Attainable: Goals have to formulate in such a manner through which their achievement become
easy and possible. Hence, quality management is consider as one of a major thing in business
plan which firm have to attain.
Relevant: Comparison of all results have to get done. This thing have to accomplish by
identifying and measure past results and present outcomes.
Time bound: Management have to divide all projects by bound them in a time. So managers have
to work accordingly.
3.3 Action plan to implement changes
In any business, management work is to formulate plan and the work have to get done by
all employees who help in achieve all task in a suitable manner. In this context, a action plan is
needed so that all work get done according to that. If managers found any sort of deviation in
working then they have right to take strict action against such thing. For such type of factor
marketing strategy is necessary. At first they have to conduct research which is essential tool for
making their project successful. After that they have to set some priorities in which important
terminology have to come at initial place. Once priorities get set, their benefits have to get
analysed which is must. Further all material which are helpful in this context have to be taken
into account as well as time scale which signifies about period of accomplishing projects on
time. Once all these things get done, firm have to assign duties according to need. And then on
the basis of all those objectives, success factor get examine as according to monitoring strategies.
Objectives Actions Priority Benefits Material
Resources
Time
scale
Responsi
bility
Success
factor
Monitori
ng
strategy
1.
Customer
satisfactio
n
Conduc
t market
researc
h
Custome
r
satisfacti
on is
priority
Increase
sales of
product
Need
more
money
with
internet
One
month
Marketin
g and
customer
service
team.
Detailed
data.
Continuo
us
analysis
of
informati
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for any
business.
This
should
have to
get done
in
minimu
m time
period.
and other
forms of
survey.
on which
gather
through
customer
.
2. Quality
products
with
proper
staff
Staff
require
ment.
Urgently
importan
t because
with the
help of
them
quality of
products
get
improved
.
Improve
staff
performa
nce by
provide
them
training.
Money,
venue and
other
things
which are
helpful for
them.
Two
week
Human
resource
officer of
a
company
.
Define
all
objective
s clearly
and
provide
them
proper
training.
Custome
r survey
and
feedback
s.
TASK 4
4.1 Impact of the changes on business and its personnel
Changes always try to affect any business concept more and more. With this context,
their working get affected and thus their operation do not get accomplish in a proper manner.
With these alteration, none of a business entity will work properly. Thus, this leads to decrease
their profitability which is not appropriate in nature. Impacts of this revise business plan on any
business is as follow:
1. Organisational capabilities: With these modification might company ability get rises or
get decline. But with this concept they hire more capable employees for their business
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with whom help their objectives get attain in minimum time period. This state a positive
impact on business which increase their profit margin. This shows that firm lead to
improve their financial problems also which is one of a best thing.
2. Functional resources: It is a moral duty of business to use all of their resources in an
effective manner. Hence, while considering this concept each and every department have
to use all resources in a proper manner. This is one of a most important thing for any
business entity. This also affect positively because might all resources get utilise in an
effective manner.
3. Technological resources: With new revise plan it affect both impact positive and
negative. While using this methodology, company can increase their production as well
as improve their quality of goods which served by them. On the other hand it takes more
money investment and thus efficiency get decline.
4.2 Plan for managed changes
Change management is define as managing all such factors which might affect any
business entity. This leads to provide a guideline on which a firm have to manage all of their task
which might influence any business proposal. With the help of this concept decision makers can
formulate such type of strategies which support in managing all work in a proper manner. Thus
this study in beneficial as per revise business plan in context of cited firm.
This plan reduce chances of negative impact by those elements which never support any
business dealings. Hence, with this conceptual thing management become able to perform all
task in a significant manner. This change work into three main sections which are as follow:
Current → Transition → Future
As per this, current management and project management support an organisation to
move from current state of position to transition position to future and desired state of change.
The main work which is done by change management is to focus on people who get impacted by
thus alteration.
This change management become more understandable with the help of using a theory
which is provided by Kotter. He state eight steps of change management which are as follow:
1. Establish a sense of urgency: Major work of management is to examine market and
identify all the crises which are related with that change. In this prospect, decision makers
have to set some urgent concepts which are helpful for them.
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2. Form a powerful coalition: Management have to form such groups which are able to deal
with any changed situation. In this context, Caffe Finix have to set some strategies which
are helpful for them in their long run.
3. Create a vision: Also with support of change management concept a clear vision have to
get set. This aid them in formulate such strategies which promote their working in long
term.
4. Communicating the vision: Cited organisation have to pass that particular vision to each
level so that proper implementation of schemes get done.
5. Empowering others to act upon on vision: Teams which formulate to deal with such
changes have to work on all issues. In this context, they have authority to remove and
change structure on priority basis. Through which they can achieve all targets on time.
6. Planning for and win short term changes: This aspect working in an effective manner by
framing a plan on which all projects get done. Also they have to motivate their employees
by rewarding them.
7. Consolidating improvements and producing still more change: In case any strategy
which is not fitting in any working frame have to get changed so that appropriate
decisions can be taken out.
8. Institutionalising new approaches: This factor work in implementing all work in an
effective manner by installing all methods at the time of change.
4.3 Monitor performance in providing time scale
It is very essential for an organisation to monitor their performance on time to time basis.
This work can get done by applying and using balance scorecard model. This approach is helpful
for any firm in examine their performance. According to BSM, company mention all of their
targets, budgets and necessary factors which simplifies their working and operation. As per they
divide each and every department and rank them according to getting things done. Cited firm is
facing heavy financial crises and relation with that quality of products are also bad.
Cited firm have to choose this concept in making a valid comparison between their
employees performance and their own outcome. Balance scorecard is a effective approach
through which many problems get sorted out in a given time scale. This concept state a clear
time period on which work have to be accomplish. If any of the employee or team failed in do so
then management have right to take some strict action against them.
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CONCLUSION
As per the above mention report it get concluded that every large and small business have
some strength and weakness which they can measure with the help of comparative measure
analysis. This concept help them in making their work each and convenient. Moreover if
company find any sort of weakness which is related with their operation they have to use
appropriate approaches from which overcoming become possible. Also, management can gather
several number of recommendations from their customers which help them in improving their
performance. Hence, it is a major duty of decision makers to use effective approaches in
managing all task.
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