Small Business Analysis and Growth Strategies

This assignment requires a comprehensive analysis of a specific small business (LEON Restaurants). Students must evaluate its current performance using various metrics, propose effective growth strategies based on identified strengths and weaknesses, and explore the key internal and external factors impacting the business's success. The analysis draws upon relevant theories and frameworks in entrepreneurship, small business management, and strategic planning.

SMALL BUSINESS ENTERPRISE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
1.1 Profile of LEON Restaurants.................................................................................................2
1.2 Comparative Analysis of the performance of LEON Restaurants.........................................4
TASK 2............................................................................................................................................5
2.1 Recommend with justification, appropriate actions required to overcome the identified
weaknesses in LEON Restaurants...............................................................................................5
2.2 Analyze ways in which existing performance could be maintained and strengthened.........6
2.3 Recommend with justification the new areas in which the business could be expanded......6
TASK 3............................................................................................................................................8
3.1 Analysis of current plans and objectives of business............................................................8
3.2 Business plan and areas for changes......................................................................................9
3.3 Action plan to implement the changes...................................................................................9
TASK 4..........................................................................................................................................11
4.1 Impact the proposed changes will have on the business and its personnel.........................11
4.2 Plan for how the changes will be managed in the business.................................................12
4.3 Improvements in the performance of the business over the past two years........................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

LIST OF TABLES
Table 1: LEON Restaurants Profile.................................................................................................2

LIST OF FIGURES
Figure 1: Organisational Logo.........................................................................................................1
Figure 2: Exteriors of a LEON Store...............................................................................................2

INTRODUCTION
Small business indicates an independently owned and operated organisation that has
limited size and revenue which depends on the industry. These types of business organisation are
independently owned proprietorship, corporation, partnership that holds very less number of
employees as in regular size of business. Small business organisation has a limit of about 15
employees and they are categorised according to the sales, revenue, shipment and annual gross.
The report will describe about the background, structure and strength organizational activities
and also review the strength as well weakness of LEON Restaurants.
Report will also describe the comparison in the performance of marketing, production
and sales with another firm in same geographical area. Further report will express the
recommendation and justifications of the business to overcome the weakness. Moreover, report
also analyzes the ideas through which LEON Restaurants can strengthen the current situations of
the organisation and recommend the new ideas trough which the business can be expanded. At
the end, report will discuss about the impacts of proposed changes and management strategies to
meet the objectives of the organisation.
Figure 1: Organisational Logo
(Source: LEON Restaurants, 2017)
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TASK 1
1.1 Profile of LEON Restaurants
Company Introduction
LEON Restaurants is a UK based fast food chain that was founded in the year 2004 by
Henry Dimbleby, John Vincent, and Allegra McEvedy in Carnaby Street, Soho in London. The
organisation has since expanded gradually in a time span of 13 years and from 1 outlet the
organisation has grown into 47 outlets. The organisation was named after the father of John
Vincent, Leon Vincent (LEON, 2017). After 6 months of opening the organisation received the
title of “Best New Restaurant in Great Britain” at The Observer Food Monthly Awards, and that
marked the beginning of its expansion and there was no looking back after this. Two of the
founders John Vincent and Henry Dimbleby have introduced School Food Plan for the school
going children in UK and were awarded by the UK government with MBEs in the year 2015.
Figure 2: Exteriors of a LEON Store
(Source: LEON Restaurants, 2017)
The profile of the business is as follows:
Table 1: LEON Restaurants Profile
Subject Details
1. Organisation LEON Restaurants
2. Operating United Kingdom (Various cities)
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Location
3. Founders Henry Dimbleby, John Vincent, and Allegra McEvedy
4. Industry Fast Food
5. Size Approx 47 restaurants
6. Products fast food products, beverages, kitchen accessories, cookbooks
7. Age 13 years
8. Type Private Limited
9. Official Website http://leonrestaurants.co.uk/
10. Location of
Foundation
Carnaby Street, Soho in London
11. Logo
12. Footprint Domestic
Strengths of LEON Restaurants: Casual Dining Approach is effective as people from all age groups can comfortably dine
in the casual atmosphere of LEON The CSR (Corporate Social Responsibility) activities of the founders like the School
Food Plan enhance the organisational image The variety of products in fast food as well as other products like cook books and kitchen
accessories provide diversity to the customers and thus the interest of the customers can
be maintained (LEON, 2017). The increasing number of outlets is increasing the approach as well as awareness
regarding the organisation.
Weaknesses of LEON Restaurants The customers looking for formal dining cannot dine at LEON Restaurants High Competition The pricing of LEON products needs to be more reasonable
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 There is a requirement of more funds for expansion
1.2 Comparative Analysis of the performance of LEON Restaurants
The average earning of LEON Restaurants is £35000 per annum. The organisation has
greatly improved in terms of financial performance in the past few years. The organisation is
continuously putting in efforts so as to earn more and more profits with the objective of complete
satisfaction of the stakeholders. The measurement of the performance of the organisation is being
carried out on the basis of income as the ultimate end result of any business is income/profits that
are generated with the help of business operations (Storey, 2016). The organisation has
experienced a significant expansion as compared to its age and is still said to have promising
future prospects. The continuous investment of not only monetary but other resources also
proves to fuelling agents for the growth of the organisation. Not all organisations get sufficient
resources for growth and expansion.
The performance of the organisation can be improved in various ways like by improving
the marketing as well as pricing strategy of the products by LEON. Other organisations that are
of same size as LEON Restaurants are experiencing growth at slower rates as compared to
LEON. There are increased opportunities of growth and expansion for LEON due to its faster
pace of growth as more and more investors see promising prospects of business in the
organisation. The increased investments can also lead to international expansion of the
organisation if proper planning is done.
Therefore there are prospects of internationalisation of the business of LEON restaurants.
The organisation can also plan to increase the dividend and also focus on paying the business
debts on time. The organisation has to earn enough to pay for the expenses of the business so as
to survive as an organisation (Barber, et al. 2016). These expenses involve electricity bills, rent
salary of staffs etc. The organisation should focus on the minimisation of losses as it results in
weakening of the financial position of the organisation.
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TASK 2
2.1 Recommend with justification, appropriate actions required to overcome the identified
weaknesses in LEON Restaurants
In the above task, certain weaknesses of LEON Restaurants were identified and there is a
need to face these weaknesses in order to strengthen the organisation as a whole (Kozan, and
Akdeniz, 2014). The identified weaknesses can be overcome with the help of following
suggestions:
 Formal Dining: There are many customers that prefer to dine at fine dining restaurants
and not in casual dining cafes. These customers do not get attracted towards LEON
Restaurants even after provision of quality food and services at reasonable prices as all
they are looking for is the atmosphere, products and services of a fine dining. The
organisation can open a few stores with ambience of a fine dining or even modify the
present stores in terms of interiors and culture.
 Increased Competition: The market for fast food restaurants in UK is highly
competitive and it proves to be a challenge for the organisation that is to be overcome.
The organisation has to try its best in order to gain the competitive advantage in order to
face the competition in the market. The products of LEON should be developed as per
market demands and a competitive pricing strategy should be set.
 Pricing Strategy: The pricing strategy of the organisation needs to be competitive as the
customers tend to incline towards businesses that have low prices. If the pricing strategy
of a business is competitive it gains a competitive advantage in the market and therefore
the sales are improved of the organisation (Omri, and Ayadi-Frikha, 2014). Customers
get easily attracted to lesser prices so the organisation can enhance the customer base
with the help of competitive pricing and also the brand image of LEON Restaurants will
be improved.
 Funds for Expansion: The organisation wants to expand the business overseas and
therefore there is a requirement of more funds for expansion. The funds can be raised
with the help of various investors in the market. If the organisation gets enough investors
for expansion overseas then the organisation can enjoy benefits of business in other
countries also.
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2.2 Analyze ways in which existing performance could be maintained and strengthened
There are certain strengths of the organisation that has made it as successful as it is in
today’s time (Schaper, et al. 2014). These strengths if used in the right way can lead to further
growth of the organisation, the strengths of the business were identified in the previous task and
utilisation of the strengths so as to improve organisational performance is explained below:
 The casual dining approach of the organisation makes the atmosphere of the restaurants
by LEON very comfortable and relaxed. This automatically attracts the customers from
younger generations; the vibrancy in the atmosphere makes the restaurants of LEON
different from other restaurants. The organisation should focus on maintaining the
comfort and relaxation even if it goes for formal dining approach in the future.
 When the founders of the organisation came up with the School Food Plan and were
awarded for it the fame of the organisation multiplied and a lot more people got inclined
towards the restaurants. The organisation should focus on the increase in such CSR
activities so as to increase more awareness and popularity among the people of the
targeted areas.
 The organisation should focus on keeping up the variety of products being provided and
also focus on increasing the variety of products so as to maintain the interest of the
customers in the organisation (Blackburn, et al. 2013). The customers get inclined
towards increased number of variety in the products and therefore it is always beneficial
to invest in the provision of variety in products of the business.
 The number of outlets of the organisation is continuously increasing and this is
improving the approach of the organisation and opening more and more stores can lead to
more sale and expansion of the business. This will not only increase the approach of the
organisation but also the brand image of LEON Restaurants will be improved. The
organisation can also expand the business overseas in order to enhance the business.
2.3 Recommend with justification the new areas in which the business could be expanded
The business of LEON Restaurants can be improved in a lot of ways as there is more
scope for expansion of the organisation (Cook, and Wolverton, 2015). The recommendations to
expand the business are:
 International Expansion: The business of LEON Restaurants can be expanded in
countries other than UK as the organisation is now capable enough to go international.
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This is so as the organisation has now expanded a lot in the country and it can afford to
take the risk of going international and there are also possibilities of raising ample
amount of funds required for this purpose from the market.
 Increase in Variety of Products: The organisation can also expand the variety of
products being provided at the restaurants so as to attract more and more customers. The
organisation already provides a variety of food products, cook books and kitchen
accessories at its stores and the expansion in the variety of products will enhance the
diversity in its products. It will also help the organisation in expanding its market share
and gain a competitive advantage.
 Formal Dining: The organisation can invest in opening more stores within the country
that have a formal dining approach so as to cater to a different audience. The food
products served in these fine dining restaurants also have to be different than the cafe
products sold at the existing restaurants. The change in approach will help the
organisation in exploring a different sector within the food industry and reap benefits
from it (Chaston, 2014). The comfort factor has to be maintained even in the formal
ambience so as to justify the existing brand image of the organisation.
 Bars and Game Zones: The organisation can invest in the opening of Bars that have
gaming zones so as to serve the customers that are looking for chilling at gaming zones
with alcohol. These outlets will provide games such as Bowling, Pool, Video Games and
other indoor games and also serve alcoholic beverages and snacks. This will develop
another type of outlets of LEON that will help the young generation customers in getting
snacks, alcohol as well as entertainment.
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TASK 3
3.1 Analysis of current plans and objectives of business
LEON Restaurants function as per the global standards in the food industry and have the
products and services developed in international style. The organisation is planning to expand the
business all over the world so as to be known globally and come up as a global brand. The
organisation has shown efficiency in terms of solving problems that exist in both within and
outside the organisation. The organisation focuses on the perspectives of owners, employees as
well as customers so as to solve the problems that arise in the course of completion of business
operations (Goss, 2015). The organisation combines taste with health so as to maintain its
position in the market and even the brand message of LEON also focuses on healthy fast food.
The organisation is continuously working towards the betterment of its food products as well as
its services. The organisation will soon spread its branches overseas and be a global brand. The
service provision at the organisation focuses on polite behaviour with the customers as well as
serving of the product demanded by the customers on time.
Presently the focus of organisation is on expanding the business outside UK and raising
funds for it. If the organisation spreads the business overseas then it will have to go by the
international standards that are prevalent in the international scene of food industry and for that
extensive market research is required (Halabí, and Lussier, 2014). The organisation is also
constantly focusing on the increase in sales within the country so as to raise more and more
funds for international ventures. For the expansion of current activities of business the
organisation is not only improving the products and services but is also focusing on the
enhancement of marketing activities of the organisation. For the international expansion of the
organisation the authorities of LEON have to attract investors to raise the required amount of
funds. The required funds will facilitate the expansion of business on the international scale and
the enhancement of marketing strategy will attract the customers and investors towards the
business.
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3.2 Business plan and areas for changes
The current business plan of LEON restaurant is completely focused on the betterment
and expansion of the organisation (Harris, et al. 2015). There are some areas in which there are
requirements of changes in the business plan of the organisation and the areas are as follows:
 Changes in Products: The organisation needs to enhance the variety of products and
also develop new products with the help of market research on the fast food market of the
country LEON is wishing to expand into. The increase in variety of products and also the
introduction of new products should be as per the culture and preferences of the new
market the organisation is planning to penetrate in.
 Marketing: The marketing strategy of the organisation needs improvement as the
expansion on an international level will not be possible without an efficient marketing
strategy as there will be a need to spread awareness in a completely new geographical
area and market. The potential customers of other countries are not aware of LEON
Restaurants and the organisation will have to spread as much awareness as possible to
attract the targeted customers (Mundial, 2013). The marketing strategy of the
organisation can be improved with the help of advertising by various mass media
channels and social media. The expenses of the organisation will increase due to
advertisements on an international level that is why the organisation needs to raise ample
amounts of funds before going international.
 Research: The organisation requires a research team so as to research on the market
trends of the country in which the organisation wants to spread its business. The market
research on other internal and external factors of the foreign country is also advised with
the use of SWOT and PESTEL analysis of both the market and the country.
3.3 Action plan to implement the changes
The action plan for the implementation of the above changes is as follows:
 Activities of Change: The activities that are required to implement the changes are to be
recognised by the authorities of the organisation in order to implement the action plan for
changes (Tsvetkova, and Partridge, 2017). The major changes that are to be made identify
the activities necessary for change.
 Implementation of Changes: The changes identified in the previous part of the
assignment are to be implemented with the help of identified activities in this stage of
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action plan. The activities related to marketing and product development are to be
implemented after and according to the suitable market research.
 Monitoring the changes: There is a need to monitor these changes as the activities
identified as well as implementation of the changes can both have errors in them. The
proper monitoring of the requirements and implementation of activities of change will
enable the efficient implementation of changes in the organisation (Carland Jr, et al.
2015). And hence, the organisation will be able to alter the business plans in a positive
and constructive manner.
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TASK 4
4.1 Impact the proposed changes will have on the business and its personnel
The change which is proposed is the working procedure of the organisation and
management has also helped to meet the needs of the customers. The results from the change
assist the business of the organisation to overcome the difficulties which are being faced by the
organisation in marketing of the products (Suzuki, and Okamuro, 2016). The changes that are
suggested help the management to attract the customers and by this the revenue of the
organisation is increased. The changes that are introduced in the business leave both positive and
negative impacts but it completely depends on the business how the management receives the
outcome of the business. Below points indicates the impact on the business and its personnel:
 Technological changes: LEON Restaurant finds the technical changes in the
organisation that helps the business to gain the competitive advantage. Technological
changes help the business to resolve the issue of reaching to the customers as the website
of the business directly connects with the customer. Technology helps the business to
increase the customer base and expands the business globally.
 Marketing: By updating the marketing policies and changing the working procedure
management discovers the positive outcomes on the sales figure. LEON Restaurants
indentifies that a strong customer base from the advanced marketing
strategies .organisation gains the profit margin and competitive advantage. Also
marketing is the basic step to enhance business of the organisation; digital platform
management attracts the customers towards the organisation. The innovative marketing
schemes facilitate the business to find the taste and preference of the customers and retain
them for long term. The changes in the marketing help to know the new market for the
business and expand the business in different parts of the world.
 Infrastructure development: The production capacity and the efficiency of the business
are raised if the suggested changes in the infrastructure are performed that results in
increase of the production capacity of the organisation (Chaston, 2014). Infrastructure
development shows that the business is earning a massive profit and attracts the investors.
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4.2 Plan for how the changes will be managed in the business
Leon restaurant is framing the team to execute the changes in the organisation. It would
simple to carry the changes with the support of the team to achieve the desired results for the
business operations. The organisation can quickly manage the entire activities by dividing into
the teams. The managerial level managers give the instructions and guidance to the operational
managers to carry out the task in the systematic manner which are being developed by the top
managers. With this approach, Leon restaurants will carry out the effective survey in the UK to
know the about the latest trends in the restaurant industry (Bridge and O'Neill, 2012). It will also
assure that the results generated reflect the efforts and initiatives of the Leon staff. This would
also helps in knowing the perspectives and taste of the customer regarding the organisation
products and helps in setting the benchmarks with the modern market trends. The good relation
with supplier will also assist the Leon restaurants to bring the development and changes activities
effectively in the business operations.
Leon restaurant is small organisation that could take initiative and have capabilities to
grab the targeted market. The implementation of variation would assist to meet the organisational
goals and accomplish the customer’s wants and expectation by offering them desired products.
The recommended changes would surely generate positive outcome from the recommended
business operations in execution. The effectiveness and efficiency of the business is increased by
the useful plan structure to meet the goals and aims of the business (Burke, 2013). It is the
responsibility of the Leon restaurant to carry out the developed plan and gather the feedback
from the customers regarding marketing procedures. Management requires amending the
operation according to the suggested outcome of the procedures.
The marketing practices required to be observed by the manager to develop the effective
results. Following the execution the practices are required to be monitored and it will be enable
to manage the latest trends. It also assists the management to create the strong customer base of
the Leon restaurant. At the last, the organisation should develop the habit of effective interaction
and communication with the employees for effective results.
4.3 Improvements in the performance of the business over the past two years
Through the use of recommended changes and amendments, it is been observed that the
business operation are earning profits and with that also enhancing the customer equity. Leon
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restaurants on the consistent basis are rapidly enhancing its productivity which is the positive
outcome for the organisation. The variation has also enhanced the profit revenue to attract the
large number of customers towards the restaurants. With the use of useful planning management
is able to have the competitive advantage from its rival organisations and will develop the good
reputation and brand in the customers eyes (Schaper et.al. 2010). In the last two years,
management determines the enhancement is the sales ratio along with that the old customer are
retained to the organisation that is being analysed with the frequent online reviews about the
restaurant. The restaurant has made changes in the development structure which also enhances
the production potentials.
To enhance the output and raise the productivity of the restaurant and staff a strong
employee’s base is prepared in the last two years. The effective marketing strategies had been
prepared by the marketing managers of Leon restaurants in the past two year as well. The
changes has raised the motivation level of the employees and enhanced their existing skills with
the latest benchmark skills of the organisation. And if it is predicted for the next two years it
would have the positive changes at the international level to develop the all types of customer
base across the globe (Revell et.al. 2010). Financial figures would be improved with the changes
in the upcoming two years and the vision of the Leon restaurant would seem to be achievable.
Further, it is the responsibility of the management to guide the employees by providing effective
training and guidance to meet the business objectives. Technological advancement in the
business operations would enhance the automation of all the business functions which reduce
some dependency on the human resources and can lower the cost of Leon restaurant.
CONCLUSION
In the present scenario, the report had focused on small scale business that required
minimum investment with minimum staff. The current case study was about LEON Restaurants
that deals in food industry and the products manufactured on small scale. In the first task report
had describe the business background, activities, structure, strength and weaknesses along with
the comparative study of the financial performance of the business. Further report had concluded
the weaknesses that include the justification; ideas through which the existing performance of the
organisation is enhanced along with the new aspects in the area of expansion are recommended.
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In the next task report has been concluding the new ideas for the business by identifying the pans
and business objectives of an organisation. Report also suggests the area where suggestion has
been made and preparing a superior pan of action. In the last report had proposed the changes
and also analysed the improvement in the performance of the organisation.
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REFERENCES
Books and Journals
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Bridge, S. and O'Neill, K., 2012. Understanding enterprise: Entrepreneurship and small
business. Palgrave Macmillan.
Burke, W.W., 2013. Organization change: Theory and practice. Sage Publications.
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entrepreneurship. Journal of Small Business Strategy, 6(1), pp.53-66.
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growth in an emerging economy. Administrative Sciences, 4(1), pp.35-50.
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Mundial, B., 2013. Doing business 2013: smarter regulations for small and medium-size
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growth. International Entrepreneurship and Management Journal, 10(2), pp.319-342.
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Schaper, M., Volery, T., Weber, P. and Lewis, K., 2010. Entrepreneurship and small business.
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International Business Expansion. Administrative Sciences, 7(1), p.1.
Tsvetkova, A. and Partridge, M., 2017. The shale revolution and entrepreneurship: an assessment
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Online References
LEON, 2017 [Online] [Accessed Through] http://leonrestaurants.co.uk/ [Accessed on 13th April
2017]
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