Factors Influencing the Growth of Small Firms

The provided assignment content consists of various academic articles and online resources that focus on small firms, entrepreneurship, and enterprise. The articles explore topics such as internationalization processes, pre-startup planning, social responsibility, entrepreneurship education, and growth constraints. Online resources include news articles and government reports that discuss the impact of policy changes on small businesses. Overall, the content provides a comprehensive overview of key issues and challenges faced by small firms and entrepreneurs.

Small Business Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Profile and SWOT analysis of Austin Fraser limited ......................................................3
1.2 Analysing the business performance by using the comparative measures......................4
TASK 2............................................................................................................................................5
2.1 Actions to overcome the identified weaknesses in the business......................................5
2.2 Ways in which existing process could be maintained and strengthened..........................6
2.3 New areas in which the business could be expanded by Austin Fraser...........................6
Task 3...............................................................................................................................................7
3.1 Produce an assessment of existing business objectives and plans...................................7
3.2 Revise business plans to incorporate appropriate changes ..............................................8
3.3 Prepare an action plan to implement the changes............................................................9
TASK 4..........................................................................................................................................10
4.1 Report on the impact of the proposed changes on the business and its personnel.........10
4.2 Plan how the changes will be managed in the business.................................................11
4.3 Monitor improvements in the performance of the business over a given timescale .....12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................12

INTRODUCTION
In today's world, it is necessary to expand the small enterprise business to make our
economy strong. The small business companies recruit those people who can do their job best for
which they are recruiting. The government also help the small-business enterprise to adopt the
different opportunities to convert into the large business enterprises. Small business group of
companies provides opportunities to different people to show their capabilities and satisfy the
requirements of the people. Austin Fraser Limited is a consultancy firm to find out those
employees who can perform their job best (Ackermann, 2012). They recruit the people in the
engineering departments, IT departments etc. This consultancy firm helps the organisation to
perform the better job. They listen the problems of the people and advise them to provide the
better solution. Austin Fraser find out the perfect candidates for which they are suitable for the
jobs. In this report the swot analysis, actions to be taken with overcome of the weaknesses, how
company can maintain its existing strength position in the market, improvements in performance
of the company.
TASK 1
1.1 Profile and SWOT analysis of Austin Fraser limited
In order to achieve the goals of the business enterprises, it is necessary to conduct a
SWOT analysis. Austin Fraser is a consultancy firm which advice or provides the solution to
other organisation to improve their position in the market. They recruit the employees on right
time at right place to perform their work perfectly. To conduct a swot analysis, it shows the
position of the firmin the future. SWOT stands for Strengths, Weaknesses, Opportunities,
Threats (Beck and Demirguc-Kunt, 2006). Strengths and weaknesses are the internal factors. On
the other side, opportunities and threats are the external factors of the company.

Strength – This consultancy firm has strong position in the market which provides proper
services to other organisation. They identify and recruit those employees who are perfectly suited
for the job in which vacancy has been arises. Austin Fraser is specialist in the IT, engineering
who provide best services in these departments.
Weaknesses – The main weaknesses of this consultancy firm is to provide opportunities
to those people who are looking for jobs in the small business enterprises. They recruit those
employees who are highly qualified and have more knowledge regarding their work. The firm
sometimes face the problem of the lack of management.
Opportunities – The firm can considered those opportunities which will increase their
position in the market. Like adopt new technologies which are invented by the software
companies and recruit the employees in a better way. The company can make strategic alliance
with other industries to promote their recruitment process in other countries also.
Threats – There are also another organisation which can beat this consultancy firm in the
market. The engineers sometimes do not use high technologies to provide best solution to other
organisation. There are many organisations which provide best services to the organisations.
Sometimes, there is sudden change in the technology about which the firm is not aware (Bowen,
Morara and Mureithi, 2009). This can create a risk for the company to handle the dynamic
change in the environment.
The Austin Fraser has to conduct SWOT analysis time to time and know their
competitors who can beat this firm. After conducting SWOT the enterprise can use other
methods to determine that they are capable of standing in the market to provide their best quality
of services. The firm can use the PEST analysis also to determine their position in the market.
1.2 Analysing the business performance by using the comparative measures.
The performance of the firm can be measured on different basis. It is the process
to make the report on performance of their individuals, employees to the top management level
of people. The firm can analyse their own performance on the basis of the three methods i.e.
management by objectives, forced ranking and graphic rating scales. In management by
objectives, the firm first sets goals and the work will allotted to the employees. At the end of the
year, the firm should evaluate their results with the objectives which are set by the organisation.
In forced ranking, the top management evaluate the performance of the employees with the last
year performance. It determines the best or worth position in the market. Lastly, graphic rating

scale, the rating indicates the job knowledge of employees, responsibility or quality of the work
whether that are increasing or decreasing (Bruce and Picard, 2006). Austin Fraser measures its
performance by adopting these methods. There are also other methods by which the firm can
evaluate its performance every year. The performance of the enterprise also depends on the
customer relationship. If they provide best services to the customers then it becomes easy for the
firm to achieve their goals. The performance of the firm can be reflected by their quality of
service also. If there is lack of management in the firm it will directly affect the organization
performance. The management should be managed by the expertise to provide their best services
to other departments. The promotion activities should be conducted by the expertise which can
show the performance of the firm to the customers. In this case, the customers will be attracted
towards the work of Austin Fraser. At the end of every year, the company have to analyse their
current year performance with the last year performance whether the performance of the firm is
increasing or not. Otherwise, organisation have to create a plan for the objectives of the company
by which they can improve the performance every year.
TASK 2
2.1 Actions to overcome the identified weaknesses in the business
This is internal factor of the firm. There are many ways in which firm can take actions to
overcome the weaknesses of the organization. First they have to manage the large organisation
which has lots of problem regarding the management. If the large organisation is maintained by
the enterprise then it is easy for the company to convey the message to clients what kind of
services is provided by the firm. The firm adopts different strategies to recruit employees who
are not highly qualified and provide them best training which are provided to the highly qualified
employees. The hiring process of the organisation will improve quality of recruitment for
employees. The enterprise have an opportunity to covert the small-business into the large
business enterprises by fulfilling all requirements of the customers which can be provided at a
top level (Burns, 2010). For small business enterprises, if the weaknesses are not identified by
the firm then it will create problem to satisfy needs of the clients. Every time company should
know about their weakness which can be overcome timely to resolve the problems. Sometimes,
the firm should take recommendation from the employees to identify that what weakness are
there in the organisation. This industry can recruit people by sacrificing their weakness. This

firm should know about what the problems are facing by the employees in managing the
organisation. If the management of the firm is excellent then it is easy to control the external
affairs of the company. The enterprise should not adopt those opportunities which can decrease
the quality of the service for the clients. There are so many factors like no proper infrastructure
in the organisation, the coordination in different department etc which can affect the high quality
of the service in the organisation.
2.2 Ways in which existing process could be maintained and strengthened
Austin Fraser consultancy firm should time to time change their strategies to maintain
strong position in the market. It should adopt new technologies and innovations which can
improve knowledge of their employees and can provide best training time to time. They time to
time recruit those employees who are best suitable for the companies which help to increase their
customers (Eid and El-Gohary, 2013). This consultancy firm listen the problems of other
departments to overcome the problem on time. Customers plays a big role to increase the
revenue for the organisation and to provide the best services to their customers. If the customers
are not satisfied with the services of the firm then it can impact on the market share of the
company. They can provide best training and development programme to the employees, staff,
managers so that they can be aware about the latest technologies which are being used by the
companies. For small enterprises, the position is also impact by the customers that company is
not providing the est services. If they are not getting best services in regard to the solution of
their problems then it can decrease the position of the firm in the markets. So Austin Fraser time
to time provide the best training and development to their employees which can be helpful for
the clients to provide the best services. This enterprise is adopting different technologies which
are easy for the company to adopt easily and can make quickly decisions for the objectives of the
business associate. It provides the knowledge to the staff in which they can not work properly.
So it helps the staff to gain more knowledge about their work and it develops the skills of the
staff. It motivates the employees of the organisation so that they can provide best solution to the
clients. So that number of clients can be increase yearly. If there is any change in the technology
the industry is already know and is it easy for the firm to use new technologies. The firm is
providing the best recruitment service to other organisation which helps them to provide the
better jobs and appoint those employees who are capable of doing the high quality work.

2.3 New areas in which the business could be expanded by Austin Fraser
Nowadays, it is important for the firm to increase their business in the market which will
help in developing strong position of the organisation. The firm can expand their business in
development of new technologies because now a days innovation of new technologies are
adopted by the different enterprises which can increase their profits. It develops marketing skills
of the manager who are handling the marketing department. It can increase the loyalty of clients
in regard to the expansion of the business and it is a opportunity for the company to maintain the
loyalty with the clients. The firm can provide their services to other countries also because they
have strong position in their own country. The consultancy firm can make new software or new
inventions regarding adopting of new technologies in their IT departments. The industry can
provide infrastructure facilities to their clients which can generate heavy profits for the company.
It helps the organisation to convert their business into large business organisation. Austin Fraser
can provide various technologies to the clients in regard to their problems which is different from
the other competitors technologies. The firms can provide the different services to the clients
according to their requirements also. It is an opportunity for the firm to expand the business in
new areas which can increase their profits. According to the requirements of the clients company
can fulfil their needs by providing the different activities. It shows customers loyalty towards the
business of Austin Fraser (Fairlie and Robb, 2008). The firm should do complete research on the
new area business in which they are expanding their funds and will able to maintain their
position in the market or not.
Task 3
3.1 Produce an assessment of existing business objectives and plans
Austin Fraser Ltd is a consultancy firm that focuses on some sectors like engineering, IT
and life science recruitment. Organization set the business objectives and plan to get success
(Kraus and Schwarz, 2006). Business Unit develops different plans to fulfil the goal. Some
objectives of the firm are:
 To maximise the turnover of the Austin Fraser Ltd .
 To provide good quality training to all trainees.
 To provide opportunities to employees so that they can achieve the potential.
 To maximize the success of the employees.

 To eliminate the costly recruitment.
 To increase the number of employees and outlets in different countries.
 Conduct a promotional campaign to encourage customers.
The Enterprise focuses on these objectives and provide proper training so that the
overall performance can be improved. If proper training is given to employees then the growth
can be improved of both Austin Fraser Ltd and their staff members (Graham and Muyia
Nafukho, 2007). These can improve the characteristics of employees such as skills, knowledge
and attitude in work. Promotional activities help the Firm to attract more customers and to earn
more profits. The firm mainly focuses on the technical training that should be given to trainers
which will enhance the technical knowledge of all people. They can also use some of the
methods to train employees like lecture method, practical demonstration method and case study
method. In depth research should be conducted by the marketing manager in order to identify
needs and demand of the customers.
The company have to sustain their competitive advantage in the market over their
competitors. If competitors provide more advanced training to their workforce then they will
achieve the success in the marketplace. Austin Fraser Ltd have to conduct training and
development programs for their employees so that they provide quality services to their end
users. If they did not decide any promotional tool then they cannot build a strong customer base
(Okpara and Wynn, 2007). If consumers are not attracted towards the organisation then the firm
will not be able to achieve the profits. If the research is not conducted then needs will not be
identified performance will not be improved of the enterprise.
3.2 Revise business plans to incorporate appropriate changes
Developing a new business plan is important for the success of Austin Fraser Ltd. The
new plan will reduce all weaknesses of the existing plan and improve the performance of the
organization. Now days the lifestyle and preferences are changing continuously of the people so
the plan should be flexible (Lepoutre and Heene, 2006). A flexible plan should be set in every
situation of the company. For a new plan, the manager has to focus on the elements of the
marketing mix. These elements help the firm to increase their turnover. The organization should
spread their business all over the world so that they can perform their operation internationally.
Austin Fraser Ltd should set SMART objectives to achieve success.

Specific: The business objectives should be specific like to maximize the turnover of the
firm by 15% at the end of 2017. These goals should be clear and focus oriented.
Measurable: The Austin Fraser Ltd should be able to measure the performance in the
market. For this the firm can put a board in the office so that employees will be able to know
about their goals that what they have to perform. They can measure the performance in the terms
of numbers.
Attainable: Before setting the goals, Austin Fraser Ltd should check their market position
in the external environment. On the basis of their capabilities, the industry should set the targets
that are attainable (Matlay, 2008). They set the turnover by 15% that is attainable and if they set
target more then this then they will not be able to achieve the objectives.
Relevant: Before setting a target of 12 months, Austin Fraser Ltd should examine whether
they will be able to achieve the turnover by 15% or not. These objectives should be based on the
current marketing position of the organisation. Like in future if recession occurs or any other
competitors come in the market then they will not be able to achieve these objectives.
Time based: Austin Fraser Ltd should set the deadline for their objectives and these goals
should be time sensitive. Here, the time scale for the objective is 12 momths.
3.3 Prepare an action plan to implement the changes
The manager of the Austin Fraser Ltd. should implement a plan to maximise the turnover
and also provide the services throughout the world. For this plan, the manager should follow a
sequential process (Schaper and et.al., 2010). This process should be done in steps:
Determine the purpose: When Austin Fraser Ltd is going to develop a plan then first they
have to identify the purpose of that plan. Purpose should be relevant so that organization can
earn profits and can attain success. The manager should conduct a research in the market after
that he has to set the purpose.
Build a vision: Company should set a clear vision that helps the firm in achieving the
success. Before implementing any plan, it is the responsibility of manager to set a vision. This
will create a path for the organization and they will be able to achieve all the objectives.
Clarify the model: After creating a vision, now the manager of the Austin Fraser Ltd has
to build a model. In that model, all the information is included like financial information like
sales, profits, cost, pricing and growth (Thompson and Doherty, 2006). Performance will also be

measured of each and every employee. This model should be updated from time to time as many
changes are occurred in the environment due to the dynamic world.
Target market: The firm should focus on their target audience and provide quality
services. . Here, the Firm should provide training to those employees who are not able to
perform well. After the training, their skills will increase and they will provide quality services to
their customers. Here, the Austin Fraser Ltd can follow the STP model in order to segment the
market.
Design the plan: Now in this step, manager has to design his new plan. Here, He can use
the market mix concept to improve the performance of Austin Fraser Ltd. According to the need
and demands of the customers the products should be given by the industry. (Peredo and
Chrisman, 2006).
Implementation: After the all processes, the last process is to implement the plan. In this,
Post implementation is also done by the Austin Fraser Ltd. The manager can ask to their
potential customers and industry experts about their plan.
TASK 4
4.1 Report on the impact of the proposed changes on the business and its personnel
For the development of business it is important to consider all the factors which can
affect the operations. If proper development takes place then it will help the business to achieve
the objectives (Acs and Mueller, 2008). When some changes take place in the environment then
business activities are also changed. So it is important for the organisation to cop up with the
changes. Here are some of the external factors which affect the performance of the business.
These factors are:
Social factors: These factors are related to the social culture which gets changed due to
preferences, behaviour and lifestyle of the customers. These can affect the operations of the
business because if Austin Fraser Ltd provides its products globally then they have to deal with
different people like some are price sensitive and some are only looking for the uniqueness in
products.
Legal Factors: These factors can influence the business operations due to the policies of
the government. In order to achieve the success, Austin Fraser Ltd has to follow all the legal

laws and policies in their operations. It is important for the business that they should know about
the laws like consumers protection law, health and safety laws and so on.
Economic factors: These factors are related to the economic condition of the consumers.
If there living of standard is increased then demand gets increased and price is increased. If
demand gets reduced then price is also reduced. Other economic factor that affect the functioning
of the Austin Fraser Ltd are like wage rate, interest rate and inflation in the economy. In the case
of these factors, companies have to take some risk (Revell and Blackburn, 2007).
Political factors: These factors are related to the government and their policies. These
political factors can affect the operations of the business. Here, Austin Fraser Ltd is operating in
the UK market so they have to follow the regulations which are made by the government of UK.
Technological factors: These factors can affect the performance of the organization. .
The innovation in technology helps the Austin Fraser Ltd in reducing the cost and also
developing new products by following the modern technology equipments.
4.2 Plan how the changes will be managed in the business
Management is the important part of the Austin Fraser Ltd. This department manage all
the business organizational activities which helps the Austin Fraser Ltd in order to sustain the
competitive advantage in the market. Employees are the one who have to face all the changes in
the organization. Some changes are like technological change, new products that are launched by
the company other than the standard products that were selling by the firm. Some of the
feelings are like lose of power and control, ambiguity so these are difficult to manage by the
employees (Athayde, 2009). Due to these changes, workers do not perform well and they act
irrationally. Sometimes, it is difficult to accept the changes by the workers because they don't
want any compromise with their position. When some changes happens then manager first have
to think about the employee that how they will perceive these changes. So, according to that they
have to deal with the staff members and tell them the benefits and drawbacks of the new
changing policies. There are some ways that deals with the changes in the business like effective
management of financial resources, making new strategies and techniques and comparison of
actual performance with targets. When competition increases in the market then there are some
changes which take place in the environment so the firm have to deal with these changes.
manager have to conduct a market research to identify the need and demand and provide
products accordingly. When companies go global then they have to deal with the different

culture of different countries. For these changes company can make certain strategies that are
useful in order to gain more customers. There are some of the technological changes that takes
place in the firm so for this they have to provide training to their customers. There are some
more changes like social, technological, economic and environmental that affect the operations
of the company and these all changes are managed by the management department of the
organization (Pan and Jang, 2008).
.
4.3 Monitor improvements in the performance of the business over a given timescale
Continuous monitoring helps the organization to improve the performance. If
performance of employee and organization gets improved then Austin Fraser Ltd. can achieve
the success. Performance can be monitored on the basis of the benchmarking and this is related
to the evaluation of standard targets with the actual performance of the company. The process
should be done in a particular time interval so that performance can be improved. When
organisation didn't provide training to their employees then they were not be able to provide
quality services. When the training is started to given by the company then they gain knowledge
and after that they started to provide quality services to their end users (Gray, 2006). The firm
can use some of the techniques like ratio analysis and trend analysis. These analysis are used to
compare the business performance and their financial position in the market. In past when
company did not provide training to their employees then at that time their financial position and
their performance both were not good. After that, when they started to provide training and
development services then their performance get improved. Austin Fraser Ltd provide quality
services to their users. Continuous monitoring help the organization in order to identify the fraud.
If any fraud occur in the performance of the firm then that can be resolved before the time
because some of these activities can put the enterprise into trouble (Johanson and Vahlne, 2009).
CONCLUSION
As per the above given report it has been concluded that small business enterprises like
sole proprietorship and partnership are dealing with some of the issues. They are also dealing
with some of the strength and weaknesses. They are dealing with the different situations that are
changing according to the need of the customers that can be a complex situation for the
company. Proper research and survey has to be done in the competitive market so that needs and

wants can be identified of the consumers. If quality services are given to the employees then they
can attract more customers and can also improve the performance of the . Enterprise.
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