Performance Measurement and Management in Led Bury

This assignment analyzes the importance of performance measurement and management for Led Bury, a service and food company. It explores the anticipated impacts of proposed changes on various aspects of the business, including finance, workload, and organizational culture. The document emphasizes the need for monitoring improvements through techniques like benchmarking and return on investment analysis to ensure effective implementation and growth.

Small Business Enterprise

INTRODUCTION
To grow an economy, a small business plays an important roles which helps the country
to upgrade economy in an effective manner. Small business enterprises is a small scale firm
which is looking to craft enhancement in the firm activities as per the objectives. In the existing
scenario, small business enterprises are accountable for getting the innovation and competition
for diverse economic sectors of UK and rest of the world (Ainin and et. al., 2015). In this report,
SWOT analysis would renders information about the small enterprises firm Led Bury which
offers food and beverages to their local consumers. This would explains the theories for measure
firm's performance and renders the recommendation and justification to overcome the
weaknesses. This report will also emphasis about how to establish changes and emerge the report
to determine the performance.
TASK 1
1.1 Profile of Ledbury for identifying its strengths and weaknesses
Led Bury is the crucial dinning restaurant brands in the entire UK, which offers high
quality foods and services in order to gain the customer satisfaction. The firm's performance is
largely affected by the external and internal factors. The internal factors of the firm are: quality
of foods and supply chain management and external factors are the political, environmental
conditions influences the performance of the firm. Led Bury would concentrates on the customer
satisfaction by rendering the quality taste and foods to their consumers which they are offering.
Which is the firm's strength.
Chef Bret Graham is the most renowned personality which likewise adds the quality
satisfaction to its consumers which is its strength. Quick services of food and serving is the most
beneficial part of the company as it availing consumer satisfaction, As each organisation contain
some weakness in itself the Led Bury have also (Blackburn, Hart and Wainwright, 2013). Main
weakness of the company is shirt menu of restaurants which limit users of service of the
products. Company is aiming to expand their business but the financial obstruction is restraining
its growth as well. However, they require to maintain the inheritance along with the accessible
services and products.
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1.2 Analysis of the business using comparative measures of performance
The restaurants performance can be scaled with the help of measuring their service and
food quality which the organisation is offering. After the joining of Chef Brett Graham, the
organisation is gaining benefits in UK. On the grounds of sales of service, the benefit or
performance can analyse. Also the worker motivation, consumer satisfaction, flexibility and
other cost indicator helps in the scaling overall, business of the company. In the food industry,
one of the most essential aspect is satisfaction of clients which is required to managed by the
company.
The benefit in finance in can be measured with the performance measurements because
the company's financial situation is better as the organisation have been able to create a good
positioning of the organisation among consumer (Bridge and O'Neill, 2012). The administration
department of Led Bury is planning to deploy business but in the other hand the comparative
performance just engaged in providing quality. This is a good indicator which can be scaled with
the better performance of worker. Hence, the HRM is organising the efficacy of business
organisation that can be more effective. Company is measuring the criteria of their business for
the purpose of expansion of business.
Both of used approaches are effective and efficient relatively that can assist Led Bury in
emphasising their food and service quality in more significant manner. Performance
measurement whereas can assist in enhance the working quality of organisational employees
emphasising over their skills and qualities. On the other hand, consumer satisfaction and
motivation can aid in attaining the business objectives and aims in more significant manner.
Thus, it can claimed that there are numerous use of performance measurement are assisting in
more adequate manner.
Profit and Loss Account
(30 April 2016 and 30 April 2017)
2016
£
2017
£
Sales 250 300
Cost of Sales 200 200
Gross Profit 50 100
Overheads 30 50
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Net. Profit 20 60
Balance Sheet
(30 April 2016 and 30 April 2017)
£ 2016 £ 2017
Fixed assets 70 50
Stock 50 90
Debtors 50 50
Bank 0 1
Total 100 141
Current liabilities
Creditors 8 14
Bank overdraft 2 6
Total 10 20
Current ratio = current asset / current liability
2016 2017
100000/8000= 12.5 times 140000/18000= 7.7 times
Interpretation: From the above figures it can be seen that net profit of Led bury increased form
20 to 60 in 2017.
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The Greenhouse is another restaurant and its financial performance can be examine by the
following given information:
Profit and Loss Account
(30 April 2016 and 30 April 2017)
2016
£
2017
£
Sales 280 320
Cost of Sales 200 200
Gross Profit 80 120
Overheads 40 50
Net. Profit 40 70
Balance Sheet
(30 April 2016 and 30 April 2017)
£ 2016 £ 2017
Fixed assets 80 60
Stock 40 90
Debtors 50 40
Bank 1 2
Total 91 132
Current liabilities
Creditors 9 15
Bank overdraft 2 4
Total 11 19
Current ratio = current asset / current liability
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2016 2017
100000/8000= 12.5 times 140000/18000= 7.7 times
Interpretation: From the above given information and figures it can be summarised that profit of
Greenhouse restaurant was £ 40 in year 2016 which increase by £ 30 in year 2017.
TASK 2
2.1 Recommendations to overcome from identified weaknesses
There are many threats and weaknesses faced by restaurants. The management of such
organisations are working to overcome from such weaknesses. The major weakness which
affects the activities of restaurants is change in environment. In restaurant industry, change is
happen time to time and organisation has to take the adequate steps to accept these changes. If
the restaurant not accept the changes then it effects the operations and profitability. Change of
customer behaviour is main threat which affects the business of restaurant. So, the management
of restaurant has to implement the new methods and ideas so, the customers are not getting
bored. The main motive of the consumers to come restaurant is to enjoy their free time with
family. If they are paid for the services than they always want best to be served to them. This
helps the restaurant to satisfy their customers and retain them for longer period of time. There
should be always provide variety of food items and new offering so, they not bored getting same
tastes. It is the duty of the management of restaurant, to identify the changes happened in market
and make the changes in their products and services according to that. For effective
implementation of changes, management of restaurant has to provide adequate training to their
staff and develop the skills of good behaviour. This ability of staff helps to attracts the customers
and retain them for longer period of time. It is the duty of staff to build the emotional bond and
connectivity with their customers, this helps to attain customer loyalty toward the restaurant.
Main weakness of Led Bury is delay in service for this purpose the management of
restaurant has to appoint large number of staff and provide the adequate raw material tom
complete their function in stipulated time period (Burrows ed., 2015). This helps Led Bury to
overcome from the problem of delay in their services and satisfies the different needs of their
consumers.
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2.2 Ways for strengthen the existing performance
There are many ways are used by the management to maintain and strengthen the existing
performance of restaurant. This includes about the framing of strategies which helps to satisfy
the demands of their customers and retain them for longer period of time. The main strategy
which is used in restaurants are innovation and creativity in their operations and food items
provide them, this helps to increase the financial profits of restaurants. The management of
restaurant are need to focus on interiors of their restaurant which attracts the large number of
new customers. It is the duty of staff of restaurant to make good bond relation with their
customers and provide complementary dishes to them. This helps the management of Led Bury
to satisfy the needs of their customers and strengthen their business activities. To attract
customers Led bury has to give cash discounts and discount coupons to their customers. This
helps to achieve their targets and increase the profitability of restaurant.
The management of Led Bury has to take care of such managerial aspects like stock
management, human resource management, seasonal time estimation etc. This helps the
restaurant to maintain their existing performance and strengthen their activities. All these process
helps to increase the profitability and strengthen the internal environment of organisation (Van
Der Wijst, 2012). Segmentation of the market provides the opportunity to Led Bury to identifies
the needs of different customers, competitors in market and the strategies adopt by them. This
contributes to making of plans and strategies which helps in attainment of competitive
advantage. This will also increase the brand image of restaurant in between their customers and
market.
2.3 New areas for expansion of business activities
Led Bury has restaurant business which is doing good in market. The management of
restaurant has make many strategies and plans for effective regulation of the operations and to
overcome the threats faced by them. Such strategies provides the opportunity to strengthen their
existing performance and use this for the purpose of expansion of activities of restaurant. It is
easy for Led Bury to expand their business activities in this area because they have extensive
knowledge about such industry (Curran and Storey eds., 2016). They have the opportunity to
enter into food processing industry which have direct impact on the dishes of restaurant. This
provides the opportunity to Led Bury to satisfied their customers needs by providing high quality
products. This expansion includes about preparation of new dish and cuisine which attracts the
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large number of customers to their restaurant. It is easy for them to research about new dishes
and food items which are easily prepared by them and available to home. This provides the
benefits to restaurants in two areas, first, it enable them to attract the large number of customers
and secondly, it helps them to increase their profitability. All these activities motivates the
management of Led Bury to take innovative steps and explore the new areas of expansion of
their activities.
TASK 3
3.1 Assessment for current business objectives and plan:
In present world, no company can run smoothly and successfully if its goals and
objectives are not clear. The Led bury company is small size organization which is currently
running restaurant in market place effectively by implementing its plans and strategies in relation
to food business. This firm give more focus on existing habit of customer regarding food which
help them to expand and grow business in large market place. The referred organization try to
improve their short-term as well as long-term goals to accomplish desired profit in certain time
period. For attracting more and more customers this company can use advertisement method
which is commonly used by almost all companies for promoting their goods and services. Led
bury can get many benefits by making effective business plan such as enhance their capital
structure and eliminate chances of failure (Dennis Jr, 2011). Business plan as well as objectives
of company are prepared by management at initial stage to gain better result at reduced cost so
that profitability can be improved.
3.2 Revised business plan to establish adequate changes:
There are so many plan and theories which assist the cited firm to overcome their
weakness in modern emerging and dynamic world of restaurants. Business firm is required to
consistently monitor their diverse plans and pre-set targets. Firm need to always frame form
dynamic plans for their firm.
Substantial growth theory: This is one of the most effective theories to overcome
weakness of the firm. Such assists the firm to increase controls in the market and limits the risk
that could cause loss in the firm organisation. By considering the theories of substantial growth
Led bury could attain expertise in market and also can have high level of share in the market.
Firm could lock out their contenders if this theory is adequately followed. This covers of vertical
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and horizontal that guides the firm to attain their pre-set goals. Vertical integration assists the
firm to take whole control over production and distribute product in market.
There are diverse models that can be used by the firm in order to attain success in the
modern market. For firms such as Ledbury that deals in the firm of restaurant are needed to
perform SWOT analysis at continuous intervals of time (Gardet and Mothe, 2012). Market
situations varying on a regular intervals. Ledbury changes its way of working as per the current
situation. SWOT analysis assist in uncovering strengths, which what benefits firm has, what are
the weakness which are going to be improved, what are the opportunities firm can spot and
threats which firm can be faced in future.
Revised Business Plan: At the existing Led Bury's business require to prolong the
present sale volume, while facing competitor threat of trendy services and higher quality, the
plan is managed to be revitalized as below:
Product Plan:
 manufacture higher service quality to capture wider as well as more beneficial sales.
 Produce effective and trendy service with unique traditional blend of different cuisines
and recipe. Friendly and casual uniforms for members of staff.
Operation Plan:
 Review the layout of bakery kitchen and equipment to provide new bakery development
items. Streamline buying to increasing the ingredient quality while keeping more stable cost.
Marketing Plan:
 Increasing in local community exposure through delivering district counsellor and district
charity events, functions along with festival celebration etc.
 In-store activities of promotion with certain time duration to motivate more purchase.
3.3: Action plan to implement changes:
Action plan is the most crucial tools in the business that could attain its future goals.
Action plan assist the firm to assist what is required to be done first. There is a need to have
effective communication and decision which are making plan by the management to apply
changes for eliminating weakness in Led bury (Gronum, Verreynne and Kastelle, 2012). Led
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Bury wants to offer facility open air restaurant in another location as this will help in attract large
number of customers. For this following are the steps that require to be taken by company.
Action plan to implement changes
Action steps Responsibilit
ies
Timeline Resources Potential
Barriers
Communic
ation plan
Step 1: Describe
concept: In this
managers of
restaurant first
reflect the
inspiration behind
the concept of a
roof top restaurant
in order to make it
appealing before
target customers.
Managers of
Ledbury will
do this.
This will done
in 10 days.
a. Communic
ation
resources
b. Financial
resources
Employees
might resist
it as it is a
totally new
concept for
Ledbury.
Managers,
employees
and
customers
will
involve in
communic
ation
process.
Step 2: Set the
menu
Chefs and
managers
will set the
menu for the
roof top
restaurant.
This will done
in 2 days.
A. Kitchen
appliance
and food
products
will
require for
this.
B. Human
resource
Workers
can resist
this.
Chefs,
employee
and
managers
will
involve in
communic
ation
process.
Step 3 Determine
the style of service
Managers
will set the
service style.
This will done
in 1 day.
a. Human
resources
b. Grocer
items.
Top
managers
Managers
and
employee
will
include in
the
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communic
ation
process.
Step 4 Design the
interior
Managers This will done
in 7 days.
A. Interior
specialist
B. Other
human
resources.
Top
managemen
t
Interior
specialist
and
managers
Step 5: Decide
Location
Managers
and top
managers
This will done
in 5 days.
a. Financial
resources
b. Infrastruct
ure
Employees Managers
and top
managers.
TASK 4
4.1 Impact of the proposed changes on the business and its personnel
The impact of those alternation HACE AFFECTED THE ORGANISATION IN BOTH
ways: negatively and positively as well. This relay on the designing and implementation for the
changes which is occurring in the organisation (Jones and Rowley, 2011). If the desired changes
are accurately executed in the organisational operation for better productivity and development
of the company, it can avail motivation in clients and worker of the company as well as help in
deploying the business of Led Bury in nationwide. Through the help of brand image increment,
company can also deploy their business in global market to maintain the competitive edge.
Hence, this can prove the essential influence on the activities of company.
These changes can only be achieved through the help of effective strategy and proper
execution as well as sales increment. On the other hand, Negative influence with the planned
changes can be wastage of the resource which are valuable such as time, financial resources,
personnel etc. This not only affect the affect the operations functioning but also affect the worker
management and their working efficiency (Schaper and et. al., 2014). Although, along with these
impact, Led Bury easily face these issues but required to make these proposed changes in more
positively for the benefit of the organisation.
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4.2 Plan how the changes will be managed in the business
Any changes in an organisation make the entire process and operation affected from the
procedure. This is require to monitor and control the activities of Led Bury as the company s a
service and food company based on the clients satisfaction majorly. The proposed changes in the
respected company can lead it toward the success and or may impact negatively which depend
on the execution of the activities.
Here are some anticipated impact of the alternation proposed in company:
 Finance: the organisation have successfully developing their business operations as well
as through the systematic functioning, there are can be positive impact detected in
company.
 Workload: The schedule of worker and work have become more tights due to more
clients and services users of the company. Though, organisation require to organise
trainings and development programs for better performance.
 Organisational Culture: There can be some alternation in the culture of Led Bury
detected which have made organisation more stronger in comparisons of their
competitors.
4.3 Monitor improvements in the performance of the business over a given timescale
Performance development can be measured through various techniques of monitoring.
The company required to comply them in which main method is bench marketing technique
(Improvement made in Cocofina, 2017). This is one of the most effective performance
measurements method with predetermined level or needed target that are being accomplished.
Through this, administration can compare the result which is expected with result which can
attained. Through constant performance monitoring, the employees get inspired through this
method. The organisation an use this method for enhancing the technique and performance of
worker and chef as well as compare the result with the activities.
The company can utilise return on investment and concentration on the same. The
accurate investment which the respected company has invested in their betterment of their
business can be measured through the benefit tenements after a period of time. The development
and growth of Led Bury will be known ion this ratio (Sila, 2013). Also they can measure the
amount of gained tourist amount for measurement of growth. This is required to manage and
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measure the performance in the determine time period for evaluation of the weakness and
increase the productivity of the operations which an organisation is occurring.
CONCLUSION
This can be concluded form the above study that performance measurement and
management is required process which helps an organisation in overall development as well as
avail in accomplishing goals and objectives. This states that it is necessary for an organisation to
adapt changes in their working system for evolution. For proper improvement, the company
should determine every steps, prepare an action plan and implement an effective strategy. This is
important to have a good communication among the employee which a firm require to maintain
for better productivity and profitability.
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REFERENCES
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