Impact of Digitalization on Small Businesses

The assignment examines the multifaceted impact of digitalization on small and medium-sized enterprises (SMEs). It delves into various aspects, such as the adoption of e-commerce platforms, social media marketing, and supply chain management technologies. The analysis also considers the challenges SMEs face in adapting to these changes, including financial constraints and lack of technical expertise. Furthermore, the assignment highlights the opportunities digitalization presents for SMEs, such as enhanced customer reach, improved operational efficiency, and access to global markets.

Small business enterprise

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
A). Profile of the WH Smith Ltd and its strengths and weaknesses:.....................................1
B). Analysis of business implementing comparative measures of performance: ..................3
TASK 2............................................................................................................................................6
2.1 Recommendation in order to overcome the identified weaknesses:................................6
2.2 Analysis of the manner under which current performance can be handled and
strengthened:...........................................................................................................................6
2.3 Recommendation with justification, new areas under which the business could be
expended:................................................................................................................................7
TASK 3............................................................................................................................................7
3.1 Assessment on the current business objectives and plans:...............................................7
3.2 Revising business plans to introduce adequate changes:.................................................8
3.3 Forming action plan to implement changes:....................................................................9
TASK 4..........................................................................................................................................10
4.1 Impact the proposed changes will have on the business and its personnel ...................10
4.3 Improvement in the performance of the business over the previous two years:............11
CONCLUSION:.............................................................................................................................12
REFERENCES..............................................................................................................................13
APPENDIX....................................................................................................................................15

INTRODUCTION
Small business is the unit which is operated in the small part. However, this can be said that the
company needs to make their business operations in an effective manner. Small business
enterprise is the firm which comprise few members for doing the business operation in an
effective manner in order to gain the sustainability (Blackburn, Hart and Wainwright, 2013). The
main objective of the entrepreneur is to make certain strategy that can be used in order to sustain
the business. However, this can be seen that the small business enterprises help to improve the
economy of the nation. However, SMEs’ eliminates the financial constraints such as
unemployment, infrastructure and many more. Under this report, current activities of the
Bestway Holding Ltd are assessed and make changes accordingly. Apart from this, detailed
assessment of the cited company can be done.
TASK 1
A). Profile of the WH Smith Ltd and its strengths and weaknesses:
Name and address of the Bestway Ltd:
The Best way holding Ltd is a kind of company which operates with its subsidiaries in
wholesale, banking, cement real estate in the UK. The registered office of the Best way holding
company is situated at Abbey Road, Park Royal London, NW10 7BW, UK .
Owner structure:
The cited company is the public Limited company which is the UK’s second highest cash and
carry operator. Which have more than 60 Bestway outlets throughout in UK. Quoted companies
Cash and Carry customers covers more than 100,000 independent retailers and food service
industry (Anderson, 2011). the cited company is likewise an important cement producer in
Pakistan and the majority shareholder in the United Bank Limited which is one of the Pakistan’s
largest private banks which have more than 1100 branches.
The main executive of the Bestway Ltd are as follows:
Mr. Zameer Mohammed Choudrey CBE,FCA is the Chief Executive Officer and the
Director.
Sir Mohammed Anwar Pervez O.B.E., H.PK is the founder and the chairmen of the
company.
Mr. Rizwan Pervez is the director of the wholesale operations and the dorector.
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Mr. Arshad Mehmood Chaudhary is the director for Supply Chain & Logistics
Background of the Company:
The Besway Ltd was founded in 1956 in London. The founder of the company was Mohammed
Anwar Pervez. Who has given his keen interest for making the organisation into the peak level.
Although, this can be said that the company needs to make certain tools that could help out to
render effective strategy effectively.
Activity of the Bestway Ltd:
The main activity of the Group at the year was the operation of cash and carry
warehouses in the UK supplying groceries, tabacco, wines and beers and diverse household
goods along with the real estate investment in the UK. Best way Ltd wholesale business
activities covers operation of common food stores which offers diverse groceries and drinks,
provision of foodservice solutions which covers catering for food and licenced goods for
contracted corporations, like-independent care homes, hotels, multi-site operations, and others.
The mission of the company is to “build business for the independents”.
Business location:
The business of the Bestway Ltd is throughout the England, Scotland and and its main objectives
is to expand their business operations in most leading countries.
Strengths and Weaknesses of the Bestway Ltd:
The market reflects the growth potential. Firms under this market address an enhancing demand
for their goods and services. SWOT analysis of the Bestway Cement Ltd renders a strategic
report of the firms and operations of the company (Van Der Wijst, 2012). The SWOT analysis
reflects strengths, weaknesses and Opportunities and threats. This SWOT analysis of the
Bestway Cement Ltd could render a competitive advantage.
There are some points which describe the strengths and weaknesses of the cited company that are
discussed as under:
Strengths Weaknesses
 They have excellent staff members in
the company which helps the firm to
enable sustainable development.
 Brand portfolio.
 Future market size.
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 Bestway Ltd provides various facilities
to their stakeholders which assist the
managers of the company to gain the
competitive advantages.
 Effective and excellent training
programmes for staff members
properly.
 They also have current business
transformation campaign which
concentrates on its employees and this
also had a series of conferences that
arose by the employees reflecting entire
areas of the company.
 Better understanding of consumers.
 Personnel of more qualification.
 Skilled labour
 Less motivation of employees.
 The less clear strategy in a dynamic
environment.
 Lack of leadership and managerial
skills.
 Due to the organisation’s antique
performances, enhancing demand of the
customers could sometimes does not
meet out due to the less supply.
Doe to having the mass production, the cited
company needs to operates its diverse divisions
(Singh, 2011). Sometimes, an adequate
coordination among the departments and
employees is not become possible.
B). Analysis of business implementing comparative measures of performance:
Financial statement is the tool which is used by the financial analysts in order to analyse their
business performance. However, this can be said that the company, with the help of ratios,
manger and various stakeholders can know the actual positions of the firm. this is the most
crucial part of the financial analyst (Ainin and et. al., 2015). Under this case, this can be found
that there are two companies and by using their financial statements, the performance of them
can be analysed effectively. However, this can be said that the company can use their business
objectives in an effective manner. Ratios are used by the company making comparison of the
firms. There are so many ratios that can be used by the firm such as profitability ratios,
efficiency ratios, and others. under this case, the comparison between WH smith limited and Best
way holding plc is going to be done by using ratio analysis by interpreting the financial
statements of both companies (Sila, 2013).
Ratio Analysis: Ratio analysis comprises to evaluate the performance and financial
efficacy of an organisation by implementing data from the existing and historical financial
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statements. Data retrieved from the statement is implemented to compare a firm’s performance
over a time to evaluate whether the organisation is enhancing or reducing: compare a firm’s
financial standing with the industry average; or compare a firm to one other company.
Most of the investors are common with some key ratios which specifically helps to
evaluate the performance of the firm. few of these ratios are: Current Ratio, Return on Equity
Ratio. On the other hand, there are various financial ratios, ratio analysis could be segregated
into six key groups.
1. Liquidity Ratio: LR assess the company’s ability to pay off its short term debts as they
arise due to implementing firm’s current or liquid assets. LR covers current ratio, liquid
ratio and working capital ratio.
Current ratio is calculated by using: Current Assets/ Current Liabilities.
Liquid ratio is calculated by using: Liquid Assets/ Current Liabilities.
2002
Bestway holding limited Smith retail limited
Current ratio 146375/101169=1.44 627199/558118=1.123
Liquid ratio 92985/101169=0.92 598289/638910=0.94
In the above calculation, this is observed that the Bestway holding Limited current ratio is more
than the smith Ltd. this means that the Bestway is more efficient to pay its liabilities than the
Smith retail Ltd (Schaper and et. al., 2014). while on the other hand, the liquid ratio of the smith
retail Ltd is more efficient than the bestway holding limited.
2. Profitability ratio: It is the one reflects the company’s performance on producing the
profits or earnings from firms’ operations. Here, the profitability ratio helps the investors
and managers of the firm to know about which earns more. Here are gross profits margin,
return on capital employed, net profit ratio.
Ratio Formula WH Smith retail Ltd Best Ltd
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Gross profit margin Gross profit/ sales *100 82573/1483510*100=
5.56%
36710/ 724169
*100=5.069 %
Net profit ratio Net profit / sales *100 59279/1483510=
3.99%
16825/724169*100
= 2.32%
ROCE Operating profit /
Capital employed *100
82573/
69081+314448*100=
21.52%
25967/191986*100
= 13.52%
From the above ratio's, it has been seen that gross profitability of WH smith is much
more effective or better as compare to Best Holding Ltd. In case of Net profit the outcomes are
similar to gross ratio.
3. Solvency ratio: This is likewise financial leverage ratios, solvency ratio compares
organisation’s debt levels with its assets, equity, and profits to assess whether a firm
could stay afloat in the long term by paying its long term debt and interest on the debt.
Ratio Formula WH Smith retail Ltd Best Ltd
Debt equity ratio Debt / equity 69081/251404= 0.27
times
3309/153593=
0.02 times.
Debt assets ratio Total debt / Total assets 69081/314448=0.21 69468/153593=
0.45
Interest coverage
ratio
EBIT / Interest expense 82573/7281= 11.3 25967/2735= 9.49
Times
The efficiency ratio of the company's is more healthy as compare to other one. Debts
equity is more efficient in 0.27, it means that the assets are repeated 0.2 times as compare to
capital employed. The Interest coverage ratio is also more positive for Smith Ltd. After the
overall evaluation, it has been seen that performance of Smith Ltd is more suitable to make
investment decision.
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TASK 2
2.1 Recommendation in order to overcome the identified weaknesses:
By using SWOT analysis, few of the weaknesses of the Bestway holding Ltd have been
determined. adequate recommendations for eliminating weaknesses are identified below:
a). Determining weaknesses: Before going to resolve the weaknesses of a company, there is a
need to identified the existing weaknesses which the company is facing right now. In this case,
the cited company is highly aware (Mohammadjafari and et. al., 2011). At first, under this issue,
the company must need to fix up.
b). Forming vision and mission: after determining the current weaknesses of the cited company,
cited company must need to aware about their vision and mission. Under this case, Bestway Ltd
needs to set its vision and mission connecting to the current weaknesses throughout the
organisation.
Effective management: After forming plan of the entire things, company needs to aware about
an effective management throughout the company. Under this, the organisation must need to
aware about an effective management throughout the organisation.
Evaluation: The cited organisation must need to assess them as a tool of evaluating their success
and attainment. Under this case, for eliminating the biasness of the organisation, there is a need
to introduce any specialists from third party in order to assess them (Love and Roper, 2015).
Via these manner, the weaknesses could be easily solved.
2.2 Analysis of the manner under which current performance can be handled and strengthened:
For keep maintaining the current performance of the Bestway Holding Ltd, there are certain
specific ways which could be introduced under consideration. These are analysed hereunder in
an effective manner.
Adequate human resource management: This is universal truth that each company’s
performance is relied upon an effective management of the human resource management and
their entire performance. Under the referred case, the organisation authority must form an
adequate and effective management to strengthen performance of the company.
Maintaining employees’ performance: Existing members’ performance is requiring close
control by the organisation. Under this matter, an adequate training, enthusiasm and placement
must be rendered in a great extent. As an organisation performance is totally relied upon the
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employees’ performance under the company. So that the members of the cited company need to
grow effectively.
Controlling effective communication: Apart from this, throughout the organisation’s
employees’ efficient communication system must be emerged (Jones and Rowley, 2011).
Without having sound internal communication system among the members, organisation’s
performance can-not possible to be effective and maintained wholly.
2.3 Recommendation with justification, new areas under which the business could be expended:
As part of the business activities and aims, sometimes the requirement of expanding the area of
business could be enhanced. Under this, few recommendations about it are mentioned hereunder:
Expanding domestic market: Bestway Holding Ltd is a UK based conglomerate company.
For prospering any kind of organisation, firm’s local market must need to be flourished. As this
can be said that the organisation is relied upon the local market of the organisation’s location.
Under this case, organisation must need to give attention to the local market for maintaining and
gaining position in order to gain the sustainable development. As, huge number of customers are
from the domestic area, henceforth, the organisation must concentrate on the domestic market.
The cited organisation must lead entire activities in order to flourish the local market.
Expanding global market: Currently, Bestway company has its operations in mostly two
nations namely Pakistan and UK. Its group owns UK’s second highest wholesaler which offers
125,000 independent retailers and caterers from 64 warehouses countrywide. Under this case, the
organisation must need to concentrates on its activities in the international market. Henceforth,
Global market needs to prioritized in large extent (Gronum, Verreynne and Kastelle, 2012).
Under this, it is global recognised organisation, henceforth, the cited company must consider
entire issues of the overseas market.
These are the problems that are required to be adopted under this.
TASK 3
3.1 Assessment on the current business objectives and plans:
In this modern time, there is no firm which can operates effectively if its plans, visions,
missions, and objectives are ambiguous. Bestway Holding Ltd is a company which have
diversified business and for that they have strong business plan and the objectives as they are
consistently works upon gaining the sustainable development and also striving hard to maintain
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the position of the cited company in the UK market. By changing the in the current business plan
and objectives for the long run, company could attract more potential consumers and implement
certain objectives effectively. they are enhancing service standards and are trying to come out to
each customer.
At the manner of convening business in local and global market, any type of business firms
such as Bestway Ltd must need to aware and prioritize about the existing business objectives and
the plans.
As the Bestway Holding Ltd is the conglomerate company and its known by their entire
activities. Currently, company is facing few kinds of basic issues, for that company is striving
hard to overcome issues. Currently, the crucial issue is that the UK market is facing the inflation
problems and that is why, the company is striving hard to overcome this issue to reach in the
international market. Under this, the net purchasing capacity of the consumers from the domestic
and inner level people. According to this case, organisation has started to face out the issues in
an effective manner so that the vision of the cited company can be achieved (Gardet and Mothe,
2012).
As per cited scenario, the cited company’s key strategy is controlling an adequate business
strategy. The Besway Ltd could frame out the plan about providing service or selling goods to
the customers in the similar price but rendering lower quality than that of before.
This kind of plan could be suited to the Bestway Holding Ltd in the great extent.
3.2 Revising business plans to introduce adequate changes:
There are diverse plan and theories which assists Bestway Holding Ltd to overcome their
weakness in the modern emerging and dynamic world of Bestway Holding Company. Business
firm needs to consistently monitor their plans and objectives.
Business plan and strategies are crying requirements and one of the much needed things for any
kind of company such as Bestway Holding Ltd. Under this case, the firm usually wants to take
these kinds of plan for aim of rapid and development of the firm (Fassin, Van Rossem and
Buelens, 2011). Due to the condition of the strong rivals under the corporate environment is
drastically enhancing in the large extent. Henceforth, the condition of rivals in the business must
introduce few technologies relied and business requirement plans for incorporating adequate
changes.
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One of the best plans of Bestway Holding Ltd for the aim of making an effective name for
the sound name for the goods or the firm itself. Related to this, the organisation could do few
kinds of basic works like- firm could do task of forming majority and highlight of the goods of
the firm. Under this case, advertisement and the diverse kinds of compaigns and advertisement
package could be arranged in the high scale. Under this case, the firm’s authority needs to aware
strongly in order to make certain tools.
In addition to this, other crucial plan for the organisation could be that offering higher
discount and in addition to this, optimum quality in the product must be assured. Following this
matter, the firms could have great popularity and hold attractive place in the existing market.
3.3 Forming action plan to implement changes:
To implement change in the company, there is a need to make action plan so that the company
could opt various changes. Institutional change principles and methods could form into action
plans, but on the ground, implementation activities are required to convene in an effective
manner which is suitable to the company’s context (Dennis, 2011). According to the
abovementioned elaboration, venture requires to reflects and vary major strategies for attaining
success and development level. This is the key fundamental for the emergence and attainment of
the business objectives. As per the scenario, firm can form arrangement by taking help of
employees’ vision and objectives of learning:
Tasks Duration
Plan 1 to 3 days
Review of business plan 2 to 5 days
Information linked with learning
best quality
4 days
Analysing and finding important
resources related to
development programmes
2 to 3 days
Expansion in advanced location 4 days
Selection of talented and skilled
employees who have knowledge
3 days
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of learning-based programmes
Providing long term vision to
senior managers and staff
members
4 days
Prepare smart objectives and
effective strategies
2 day
According to tabular format, employees has to adhere these kind s of action plan which assist in
reaching desired objectives and mission in the provided time frame by assessing the relevant
facts and figures.
TASK 4
4.1 Impact the proposed changes will have on the business and its personnel
The implementation of changes is necessary according to trends of market to survive
successfully in current scenario. For attaining growth of organisation, it is mandatory to apply
creative and innovative strategies or technologies to facilitate more effective and efficient
performance which results to improve productivity and profitability. It impacts positively on
business as well as its personnel in several ways:
 Staying current: It is important to follow trends by applying new policies and strategies
regarding products and services to maintain position of brand in market to grab more profits
or benefits. It is necessary to retain current clients as well as attract new ones successfully.
 New Opportunities: The Implementation of changes facilitates many new opportunities
which have to grab at a right time for gain its benefits more efficiently. Bestway limited can
adopt new technologies to make its services more popular amongst clients.
 Encouraging innovation: If changes are applied as new strategies and technologies then
employees will become motivated to perform more effectively and properly. Bestway limited
need to adopt some new techniques to improve performance of workers so that they will
achieve their target willingly.
 Increase efficiency: the organisations can improve working ability of its staff members to
generate more output on daily basis by implementing some new methodology or technology.
Bestway limited have to adopt new soft-wares or working technology for employees
according to trends of corporate world to maintain its position in market.
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 Improved attitudes: If the firm can think about to maintain a healthy and smooth
environment to employees then it will definitely enhance attitude and morale of workers in
positive manner. People can work willingly and try to generate better output. Bestway
limited have to put some technological changes so that employees can work more smoothly
and effectively.
4.3 Plan for how the changes will be managed in the business.
It is important to manage changes to gain profits and benefits but if it is out of control
then leads to loss. The organisations need to make planning then execute it effectively. Several
steps are given below to make plan for implementing change:
 Management support for change: All staff members want to establish a comfort zone of
working and they are trying to implement changes then they need support from their
superiors or top level authorities of company.
 Case for change: There should be a specific and mandatory reason behind execution of
changes and profits or benefits must be specified after conducting research surveys
regarding client satisfaction, workers interest, competitive advantage, business goals etc.
 Employee involvement: It is essential to provide detailed information about changes
going to be implement. While organising all meetings or discussions then employee
involve is mandatory at some levels to make them feel valuable in company.
 Communicating the change: Superiors have to ask for suggestions and ideas to workers
because sometimes their creativity plays an important role in achieving better profits or
benefits.
 Implementation: Execution of strategic or technological changes must be done properly
to gain goals and objectives of organisation.
 Follow up: after implementing, it is necessary to evaluate for controlling to solve issues
or problems related to them at right time to attain benefits and avoid threats.
Removing barriers: Implementation is not last step of as it is essential to observe and analyse
positive and negative impacts to avoid loss and gain better profits.
4.3 Improvement in the performance of the business over the previous two years:
For improving the performance of the company in the previous two years, various
modifications are required to be done. Against diverse kinds of changes and developing matters,
Bestway Holding Ltd can form few kinds of works. As an outcome of the work, few types of
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enhancements are likewise appearing in the company. The monitoring of the improvements of
the Bestway Holding Ltd has been provided below:
At first, the company needs to make profits condition of the organisation which could be frame
out the manner of convening research. Things could likewise be monitored in the high extent. By
the manner of controlling the changes and emerging diverse kinds of strategies, the firm can
enhance its entire amou8nt of profits higher times since last decades (Curran and Storey, D. J.,
2016). Currently, organisation’s financial amount is higher than that of before.
Apart from that, entire condition of diverse kinds of divisions current throughout the firm is
highly satisfied. Following responding to the changes, organisation did so diverse tasks.
Following task, the organisation tried to enhance the competence of the divisions. Via checking
this activities of the department, entire things could be closely controlled.
The Besway Holding Ltd total revenue in 2002 was 724169 which was down fall in 2003
and reached to 719058. This was due to the less earnings generates from the share trading
business in the UK. To improve the performance of the share trading division in an effective
manner. while other divisions performed very well. however, the performance of the company
needs to make certain objectives in an effective manner.
Due to the above mentioned matters, Bestway Holding Ltd is requiring to hold a respectful
and unique place in the current market. Henceforth, by assessing this matter, the existing
performance of the firm could likewise be handled in the great extent.
CONCLUSION:
From the above mentioned report it can be concluded that Small business enterprise is that
organisation which consist less number of employees works for gaining basic motives and
objectives and such companies are invested less amount in the business. The main objective of
entrepreneur in these firms is to attracting large number of customers towards their innovative
and creative products. Under this report, this can be said that the Bestway Holding Ltd compare
their performance with the WH smith retail Ltd in order to make effective strategy. Current
business plan and objectives are assessed under this and make changes accordingly in order to
achieve sustainable development.
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REFERENCES
Books and journals
Curran, J. and Storey, D. J. eds., 2016. Small firms in urban and rural locations. Routledge.
Dennis Jr, W.J., 2011. Entrepreneurship, small business and public policy levers. Journal of
Small Business Management. 49(1). pp.92-106.
Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’
perceptions of business ethics and CSR-related concepts. Journal of Business ethics.
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Gardet, E. and Mothe, C., 2012. SME dependence and coordination in innovation networks.
Journal of Small Business and Enterprise Development. 19(2). pp.263-280.
Gronum, S., Verreynne, M. L. and Kastelle, T., 2012. The role of networks in small and
medium‐sized enterprise innovation and firm performance. Journal of Small Business
Management. 50(2). pp.257-282.
Jones, R. and Rowley, J., 2011. Entrepreneurial marketing in small businesses: A conceptual
exploration. International Small Business Journal. 29(1). pp.25-36.
Love, J. H. and Roper, S., 2015. SME innovation, exporting and growth: A review of existing
evidence. International Small Business Journal. 33(1).pp.28-48.
Mohammadjafari, M. B. and et. al., 2011. The importance of project management in small-and
medium-sized enterprises (SMEs) for the development of new products through E-
collaboration. African Journal of Business Management. 5(30). p.11844.
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Sila, I., 2013. Factors affecting the adoption of B2B e-commerce technologies. Electronic
commerce research.13(2). pp.199-236.
Singh, R. K., 2011. Developing the framework for coordination in supply chain of SMEs.
Business Process Management Journal. 17(4). pp.619-638.
Van Der Wijst, D., 2012. Financial structure in small business: Theory, tests and applications
(Vol. 320). Springer Science & Business Media.
Ainin, S. and et. al., 2015. Factors influencing the use of social media by SMEs and its
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Anderson, W., 2011. Internationalization opportunities and challenges for small and medium-
sized enterprises from developing countries. Journal of African Business. 12(2).pp.198-
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Blackburn, R. A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
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Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small
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Brien, E. O. and Hamburg, I., 2014. Supporting sustainable strategies for SMEs through training,
cooperation and mentoring. Higher education studies. 4(2). p.61.
Burrows, R. ed., 2015. Deciphering the Enterprise Culture (Routledge Revivals):
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Online
Small business Enterprise. 2017. [Online]. Available through:
<http://www.yourarticlelibrary.com/business/small-business-enterprises/small-business-
enterprises-meaning-characteristics-and-problems/69496>.
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APPENDIX
1. WH Smith retail limited:
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2.Bestway’s group profits and loss statements:
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19

20

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