Analysis of Small Business and Enterprise Management Studies

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This assignment provides a detailed analysis of various research papers related to small business management studies. It includes topics such as entrepreneurial success criteria, business model applications, ERP integration in small businesses, and open-source enterprise resource planning implementation. The analysis covers different aspects of small business management, including innovation, entrepreneurship, and performance. It is a valuable resource for students and researchers interested in understanding the complexities of small business management.

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Small Business
Enterprise

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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Profile of a business with its strengths and weakness...........................................................1
1.2 Analysis of business performance using comparative measures..........................................3
TASK 2............................................................................................................................................4
2.1 Appropriate actions to overcome the weakness....................................................................4
2.2 Ways in which performance of business can be maintained and strengthened....................4
2.3 New areas in which business can expand.............................................................................5
TASK 3............................................................................................................................................6
3.1 Existing business objectives and plans.................................................................................6
3.2 Revision of business plan for changes..................................................................................7
3.3 Action plan for implementing the changes...........................................................................8
TASK 4............................................................................................................................................9
4.1 Impact of changes on business and its personnel..................................................................9
4.2 Management of changes......................................................................................................10
4.3 Improvements in the performance of business....................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Concept of understanding small business enterprises has become vital as these play an
important role in the growth of an economy. Government of every country provides various type
of resources and encourage the activities of small business enterprise (Nga and Shamuganathan,
2010). These types of organisations give employment opportunity to a large number of local
people and helps in increasing their standard of living. They not only conduct business activities
but also provide various support services to large business enterprises. Caffe Finix coffee shop is
selected in the present report which is a small cafe that provides coffee, breakfast and tea to its
customers to fulfil their daily needs. Present report involves information about various strengths
and weaknesses with comparative analysis of this coffee shop. The way in which enterprise can
make efforts to overcome these weakness and recommendations to improve the business
performance is also mentioned here. Further, expansion of small business enterprise in new areas
and the way changes affect business and its personnel will be described.
TASK 1
1.1 Profile of a business with its strengths and weakness
Before starting a business, it is necessary to give consideration on its main objectives and
aim. Objectives can be either for short term or long term. Understanding the nature of business,
risks involved in this, substitutes of this available in the market all is very important. Caffe Finix
coffee shop is built on a 1600 square feet and is in the centre of the city.
For better understanding of business, SWOT analysis is a beneficial tool.
SWOT analysis
It is the first tool which help or guide decision makers in taking effective decision by
focusing on main issues of the business (Jasra and et. al., 2012). It helps in making strategic plan
for business by identifying its strengths, weaknesses, opportunities and threats. In this, strengths
and weaknesses are internal while opportunities and threats are external. SWOT analysis of
coffee shop is given as below:
Strengths
Strength refers to those qualities or capabilities of an enterprise which made it unique or
different form others. By effectively using its strengths an enterprise can achieve competitive and
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better position than other companies. Strength of a company can be wide range of its product
portfolio, its loyal customers or can be the its large amount of financial resources.
Following are the main strengths of Caffe Finix coffee shop:
Fresh quality of its food products including coffee and tea
Wide range of its product line
Good location
Loyal customers
High reputation among its customers
Increased sales turnover
Weaknesses
Weakness is the limitation of a firm as compared to its rivals. It can be the lack of
financial resources, weak product portfolio, etc (Al-Dajani and Marlow, 2010). Weaknesses of
Caffe Finix coffee shop are:
Rent of the coffee shop is very high.
Range of food products is low than its competitors.
Little popularity of brand
Opportunities
Opportunities are the favourable conditions of business environment of which a firm can
take advantage. To effectively grasp the opportunity existing in the environment, firm should
have all required resources l. Following points show the main opportunities of Caffe Finix coffee
shop:
Firm can start is franchising business.
By investing in developing countries, firm can earn more profits.
As coffee shop market is growing at a rapid pace in the UK, so, firm can invest more
capital in this.
Threats
That troubles or fear of a firm which can negatively affect the overall performance of
business (Lambert and Davidson, 2013). Owner of firm should try to minimize the effects of
threats on business and its performance. Following are the threats for Caffe Finix coffee shop:
Large number of competitors
Change in the policies of government and taxation
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Political instability
1.2 Analysis of business performance using comparative measures
Evaluation of business performance is done to identify or understand the current status of
business (Gorgievski, Ascalon and Stephan, 2011). It is very important for every business to
calculate the total ROI on business activities. Comparison of business and its activities can be
done be comparing the activities of its competitors or with any enterprise dealing in same kind of
products. Following are the main areas in which a business can get excellence to perform better
than its rivals. Finance: Finance is the backbone of every business and required to complete every
activity of business. It is very important to analyse or calculate the financial returns on
business activities like assets valuation, break-even analysis of firm and many more. As
return on investment plays an important role for business so, analysis of how finance
should be invested in all activities of business should be decided by the owner of Caffe
Finix coffee shop. Sales: Sales shows the real status of enterprise. Calculation of sales helps in calculating
the success and failure of business (Bellucci, Borisov and Zazzaro, 2010). For increasing
the sale of its products than its competitors, Caffe Finix coffee shop should try to increase
the quality of its products and for this, firm can set a low price of its offering than its
competitors to attract a large number of customers.
Marketing: Marketing of a product is very important for increasing its sales. Enhancing
the brand value, awareness of product all these activities are done by the department of
marketing (Carraher and Paridon, 2015). Same can be done by the owner of Caffe Finix
coffee shop to increase the sale of its food products and this will help firm in achieving
competitive advantage.
TASK 2
2.1 Appropriate actions to overcome the weakness
Every firm has its own weakness and its is very necessary to remove or overcome with
the weakness so that their negative effect on business can be minimised and efficiency can be
achieved in various business operations (Blenker and et. al., 2012). When it comes about the
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weakness of Caffe Finix coffee shop that one of then is that rent of coffee shop is very high.
This weakness of firm can be overcome or covered by creating large number of revenues. As the
areas in which the coffee shop is situated is most popular and firm can attract large number of
customers for increasing the number of its profits. As number of customers will, increase that
this situation can also arise when individuals have to face parking problems and to removing this
business can use a small number of bays.
To increase the number of customers business can add more products in its products kine
and can offer variety of food products under various popular brands to its customers. Being in a
hospitality industry as firm can face a problem of storage of raw materials and their spoilage. For
this material which come first by the enterprise should be used first so that spoilage and expiry
of products can be maintained (Jones and Iredale, 2010). It is very important and essential to
maintain the quality of products so for this coffee shop need to buy the product from the quality
or trusted suppliers. Effective procedures or methods should be followed by firm to maintain the
quality of its food products.
For increasing the popularity of its various brand firm can make some new and offer to
customers under that brands. This will not only increase the popularity of brand but will increase
the number of revenues and profits of the firm. By eliminating the weakness or their effects on
business and its activities coffee shop can capture a larger market share. Increase number of
profits will help the firm in facing its expenses including rent and cost invested in other raw
materials.
2.2 Ways in which performance of business can be maintained and strengthened
At present, coffee shop use a strategy of total quality management to deliver the final
goods or food products to its customers (Chittithaworn and et. al., 2011). To maintain the
current performance of business a better environment can be created by the owner there so that
all customers can enjoy their experience and can be motivated to visit again. At present firm is
able to provide or deliver following to the customers:
Coffee of better taste
Enjoying environment
Good ambience and many more.
For improving the future performance of business Following things can be created or delivered
by Caffe Finix coffee shop:
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Firm can deliver higher quality of food products than its rivals.
Variety of popular drinks can be served by firms.
Being in a service industry increase the quality of food products is not enough but
provide them an environment to add value to their experience is also necessary (Forsman and
Temel, 2011). For this business enterprise can give training to its workers or employees for how
to behave with different type of customers come in the coffee shop. Along with this fast and
effective service should be delivered to customers. For improving the future performance of
business firm can create or make an effective business plan. Future planning of business
activities helps manager in deciding all the resources and funds which will be needed by the
business in future.
As there are large number of competitors of Caffe Finix coffee shop than it is very
necessary for firm to identify and evaluate the special services provided by the rivals to its
customers. By collecting all information from many resources future activities of firm can be
decided or effective services can be provided to all its customers.
2.3 New areas in which business can expand
Caffe Finix coffee shop is located in the centre of city. New areas in which business can
open its outlet should be in a place near airport of London. As it is one of the area crowded with
large number of workers, travellers and other people (Rae, 2010). If not than manager can search
a location having high traffic of individuals or other people. Along with this business can expand
in its products line or make make or offer new food items to its audiences. At the same time,
skills or capabilities of workers can be enhanced to increase the popularity of coffee shop. If firm
deliver good and effective services to its customers than it will help in increase the sale of coffee
shop as satisfied customers will do positive word of mouth advertising.
Expansion of business activities in other areas will not only increase the number of its
customers but also firm will able to create large number of revenues. Before expanding into any
areas it is very necessary for a firm to collect necessary or relevant data related with it. As
expanding activities of business required large amount of funds to be invested in it and to get
effective returns on investment is its very necessary to collect information about expansion.
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TASK 3
3.1 Existing business objectives and plans
Caffe Finix coffee shop is a small business enterprises that has certain objectives and that
are as follows:
To become the best coffee shops in local area restaurant guide: It has somewhat achieved
this target with its main coffee shop in area having approx 600 customers on an average
daily. With the increasing customer base it has topped in many local restaurants guide.
With its effective marketing strategies like lower pricing of its products it has become
one of the best choices for having coffee in the local area.
To maintain 60 to 70% of gross margin: This company is consistent in this objective with
an average gross margin of approx 65%. in order to achieve high profit it has made many
considerable changes. It has to concentrate on other marketing mix so as to increase its
gross margin.
To remain consistent in providing best coffee items: With the use of high quality of
coffee beans it has been successful in providing best coffee and high speed customer
services to its customers. Caffe Finix coffee shop do not compromise with the quality of
service or product (Harris and Patten, 2014). Packaging and presentation is one the key
strengths of this company.
This company has provided customers with more convenient methods for giving them
there desired product. Use of machines for making of different compositional coffees has
an increased.
Company plans to expand its reach to various other customers by use of technological
advertisements and other marketing methods. Use of social media has been promoted in
recent years.
To open more number of coffee shops in coming years and this can be achieved by
investing its profit into expansion policy (Battisti and Perry, 2011). This may include
opening coffee shops in tie up with the Stanford university.
To expand its target market other then youngsters by increasing variety of products in its shop
and extra features in delivering its services.
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3.2 Revision of business plan for changes
This coffee shop marketing strategy focuses on adding new customers to its list, retaining
the existing customers. It has made its marketing plan so that customers can spend a time in the
coffee shop and come back again and again. Spending more time in coffee shop will help in
selling more products (Gill and Biger, 2012). Establishing large number of customer base is
important because they remain loyal and often choose this coffee shop over other competitors
product. These loyal customers gives referrals to other people that helps in increasing the sale of
an organisation.
It provides an ambient environment so as to become unique in the areas where it operates
and favours people in spending more time in restaurant. It does not only serves a perfect coffee
but also helps people in spending there leisure time in quality. Sofas and chairs that are used in
this shop is of high standards. Dimmed light and relaxing music helps customer to ease out from
their day to day stress. This coffee shop is an excellent place to have conversations and that is
why people choose it for meeting purpose.
To speed up customer services it has adopted a chain mechanism where two workers are
managing all their clients (like taking orders, solving their queries, deposing waste) and one is in
the process of preparing their orders and other will take care of sales transactions. Top
management team generally sees this kind of transactions (Fassin, Van Rossem and Buelens,
2011). Sales data gets stored in the computerised data based system which help them later in
evaluating and analysing the market process. This point of sale is important as it provides
detailed description of what kind of product being sold at what time to which kind of customers.
In today's world it is important for any organisation to advertise or promote its product
nicely and efficiently. It can be done by the help of banners and fliers, leaflets and brochures.
Use of modern technological tools like internet, social media sites. It can also be done by
increasing the discount prices on certain kind of premium products (Altman, Sabato and Wilson,
2010). Organising sale for any specific target market according to the locality in which it
operates. Giving any accessories like t-shirts or coffee mugs to one of the lucky customers for
the day that will be computer generated. Organising happy hours concept for that period of time
when the sales are expected to be low and that can be compensated at the peak hours.
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3.3 Action plan for implementing the changes
Changes are not made over night, it takes time and continuous efforts for these changes to
get implemented. Changes are due to series of decisions taken by the management team. Some of
these actions are as follows: Market analysis: This is certainly one of the most important part of making any changes.
And changes must in respect to these market analysis. These market analysis includes
people living in the locality where it operates. Feedbacks from their existing customers. It
generally focuses on two markets one is existing in the locality and other who are
travellers or have came out shopping or other activities. Local people are the prime
customers where as travellers are the secondary customers. Main focus on any market
analysis must be on prime customers.
Market segmentation: Caffe Finix coffee shop has made its segmentation according to
different people in the locality (Schaper and et.al., 2014). This segmentation is done by
analysing the daily sales data. Caffe Finix coffee shop focuses on its marketing activity
that targets students and faculties from different schools and universities. Its
segmentation includes working people and the teenagers in the locality. Its market
segmentation also focuses on the working women in locality and students that are in
proximity to Stanford campus.
Target market segments strategy: After segmentation it is important for any company to
satisfy its customer base for this purpose a specific target market strategy needs to be
implemented. This ensures the providing of great taste of coffee with relaxing atmosphere where
they can chill out. Since in the segmentation process main emphasis was paid on the students
from the Stanford university that may vary in age so the product development is done focusing
on this section of the market only. Market analysis of this coffee shop shows that students are
more attracted to the better taste of coffee rather than checking out for the lowest priced products
(Gronum, Verreynne and Kastelle, 2012). Students find coffee shop as the convenient place for
studying or meeting (basically with colleagues or friends) and they do not have to pay extra on
these staying. Increase in variety of coffee offered at same store may help the customers in
coming back to same coffee shops.
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TASK 4
4.1 Impact of changes on business and its personnel
Implementation of change affect the activities and its personnel in various ways. For
development of business it is very important for manager to give proper consideration on each
and every factor or element included in it. Proper consideration by business enterprise help in
achieving its goals and objectives in a easy way (Olson and Staley, 2012). As today's business
environment is very complex and changing at a fast speed so it become very necessary for every
business to cope up with changes and give shape or direction to business activities. Due to
changes needs of customers also changes and to satisfy that specific needs of the customers it is
very necessary for business to adapt that changes or modifications in business environment.
Changes can be done in the process of making final products or can be done in the policies or
procedures of business organisation.
There are large number of factors which affect or rise changes in the business
environment. Factors which affect the activities of business include the following: Economic factors: Inflation and deflation rate exist in the business environment and
income level or purchasing power of the customers all come under the economic factors.
Fluctuations take place in the business environment affect the demand and supply of a
product. High prices of the products decrease its demand whether low prices increase the
demand of that product. Owner of Caffe Finix coffee shop need to give consideration on
this factor and should try ton offer quality products to its customers at affordable prices
so that maximum customers can be served by the firm. Legal factors: It includes the transparent or ethical methods of work which should be
followed by firms (Storey, 2016). Government of every country make or set some rules
or standards for doing the work and every firm is liable to follow the same. This affect
the activity of business and its activities. Political factors: Government of country decide the rate of tax and policies regarding the
functioning of any business. This affect the operations of a business firm as every firm is
liable to follow those policies. Social factors: There are large number of factors which affect the buying process of
consumer including age, gender, culture, value, beliefs and many more all this come
under the social factors of enterprise.
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Technological factors: Technology exist in the market and used by other firms increase
the activities of business and its personnel. As employees required training to learn new
procedure of doing the work.
All these are the main factors affcet the activities of business and its personnel in various
ways. Owner of Caffe Finix coffee shop should try to evaluate all changes occur in theses factors
so that number of customers can be maintained by the firm and profits can be maximise.
4.2 Management of changes
Changes are important so as to grow as an organisation. These changes needs to be
managed well so as to have better effect on the growth potential of the organisation. It can
sometimes be harsh for the company and sometimes not easy to do (Burns, 2010). The changes
will be important in two aspects for employee and business point of view.
Employee: Changes are always difficult to manage and no body likes it especially
employee whether it is in positive or negative sense. Feelings like ambiguity, unknowns, loss of
control and power are some of the things that are sometimes difficult to resist. The fear of getting
uncomfortable in new culture resist employees from welcoming these changes. Sometimes fear
can be unreasonable has the potential to put them in better situation (Blackburn, Hart and
Wainwright, 2013). These changes can sometimes leads to reduce the productivity of employee
and hence effecting the productivity of organisation in negative sense. So any change initiators
or top management team has to think about in what sense these changes will impact the
production of employee population. So that the productivity of organisation do not face a
decline.
Business: This can be understood by certain questions like what are their competitors
doing and how these changes will make them staying in competition. In understanding customer
behaviour like their needs, demands and these changes will be done accordingly. According to
industry outlook (local, national or global) since Caffe Finix coffee shop is a local operator so it
needs to focus on its locality. According to their demographics like change in the population
density and their ages. Thinking about the economy whether this coffee shop is growing or
witnessing a downfall. Political movements or interferences that may hamper the working of
coffee shop like any strikes. According to social environment that is prevailing in the locality.
Society decides what kind of business will flourish what kind of business will fail. Technological
changes plays an important role in effecting the business like more use of technology leads to
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unemployment. But it certainly improves the quality of services that are produced in the market.
It is cost effective (Malhotra and Temponi, 2010). Business is also effected by environmental
changes that needs to be dealt like proper disposal of the waste produced by company ant its
customers. Global warming and use of renewable resources are the factors that effects business.
4.3 Improvements in the performance of business
Improvement measurement in performance of the business in a given timescale has been
done on various goals that was achieved in the years.
By the end of 2013
It has achieved to provide various things like coffee, coffee machines, tea, water with
perfect ambience is started to get delivered under one stop (Burns, 2010). This tradition
helped company in achieving large customer base and they come back to the coffee shops
on regular basis.
It started to create its name and become brand in the local area and topping search lists in
various restaurant magazines in the locality.
Starting to get reviews that will help company in attracting new customers.
Use of technology in promotions like making its own social media page.
By 2013
It has achieved to become number one shop in locality and is trying to be best spot for
hangout in the local area.
In providing the best services so that it can achieve maximum customer satisfaction. They
focus on treating their employees respectfully as they are the guests. This coffee shop has
used efficient methods for providing services (Blackburn, Hart and Wainwright, 2013).
They offer services that their guest can enjoy, feel relaxed and become friendly with.
By 2014
In creating a model that are franchise ready that is becoming a company that are ready to
make partnerships and become collaborative with other partners. It helped them in
making chain with others in business. Company attained to have more offers for various
festivals at Stanford university.
In increasing its customer base and members in loyalty club, so that they can come closer
to the company and make positive referrals to others.
By 2015
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Added some other items to their variety list.
Started getting recognition among larger part of the society.
Increased its staff network and their skills like communication and others.
Made collaboration with local enterprises that serves other fast food items.
By end of 2015 it aimed to achieve higher revenue and gross has raised up to approx 70% and
profit margins have been raised.
CONCLUSION
From the above information it can be concluded that small or micro business enterprise
play an important role in the growth of a country's economy. This type of businesses help in
increasing the standard of living of local people by providing them employment opportunities.
Small business enterprise can improve the performance of its commercial activities by
comparing the strategies or tools used by its competitors. For maintain the number of customers
in coffee shop, owner need to implement required changes on timely basis. Changes influence
customers and add value to their overall experience. For effectively implement the changes
business man can make make an effective business plan. As implemented changes affect
business and its personnel in various ways so effective and proper business strategies should be
used by business owner so that set goals and targets can be achieved. After implementing the
changes how business can manage or monitor the changes all this is included in the report.
REFERENCES
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