Small Business Enterprise

This presentation provides an overview of small business enterprises in the United Kingdom, including their strengths and weaknesses. It also offers recommendations for actions to overcome identified weaknesses and ways to maintain and strengthen the existing performance of the business. Additionally, it suggests new areas in which the business could expand.

Small Business Enterprise
TASK 1 & 2

Introduction
Small business in United Kingdom is increasing day by day
due to the changing business environment. The individual and
group of individuals have started their small business in
different sectors. These businesses are started with low
investments and operation is conducted within the limited
geographical area because of low capital invested. The
examples of small businesses are retail stores, saloons, hotels,
consultancy firms, small garages and other. These businesses
are mainly owned solely or they may be the partnership
business. The income generated from these businesses is at less
because of operation in the limited area with low capital
investments.

1.1 A profile of a selected small business and its strength and weakness
Forth Guest house is established bread and breakfast hotel which provides
accommodation and breakfast facilities to its clients. Forth Guest house is located in
Georgian and it is the 4 star rated B&B hotel. The guest house provides double and
family accommodation to clients as per their need and preferences.
Objectives:
The main objectives of Forth Guest house working as an B&B are described as
follows:-
The main objective of Forth Guest house is to increase number of clients for service
provided by organisation. The business aims to increase clients with the increased rate
of the provided service which help in increasing the profit for the business.
Objective of the business is to provide quality service to users.
Organisation wants to expand its business in other geographical.
Objective is to increase profit and develop brand image of business.

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The strength and weakness of Forth Guest house is described as follows:-
Strengths: - The strengths which helps Forth Guest house in success of the business
is described as follows:-
The business provides good facilities of free Wi-Fi, parking and breakfast which are
included in booking price.
The Forth Guest house is 4 star Bed and breakfast businesses.
Provides quality service such as serves breakfast in bone china crockery.
Provides extra facilities such as television, hair dryers and laundry service.
Located within 100 meters from the centre town.

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Weakness: - The Weaknesses of Forth Guest house acts as a barrier i the functioning
of business which are described as follows:-
Works within limited geographical area.
The organisation has low amount of capital investment
Brand value is less as compared to other.
They use less technology within the business.
Do not have any marketing strategy.
Face competition from similar businesses.

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Opportunities:- The opportunities for business Forth
Guest house are as follows:-
• There is continuous growth in the travel and travel
and tourism sector in United Kingdom which leads
to increase in new customers.
• Significant performance due to use of new
technology.
• Better government policies for the small business
enterprise.

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Threats:- Some of the threats of forth guest house are as
follows:-
• Increase in competition from new entrants in similar
business.
• The increase in the prices of food product, which
reduces the profit margins.
• Effect on the financial position of business due to
seasonality.
• Dynamic changes in the needs, wants and preferences of
the service users.

1.2 Analysis of the business using comparative measures of the performance.
The Forth Guest house is the small hotel business which provides
accommodation and breakfast facility to its service users with some extra
facilities. It is necessary for business to analyse its performance by using
comparative measures to achieve the aims and objectives by taking
necessary steps. The comparative measures taken by the business are
discussed as follows:-
Monitoring progress in achieving the aim and objectives of the
business: - The Forth Guest house monitors the progress against
achievements of its aims and objectives. The monitoring helps business
to check whether proposed aims and objectives of the business are
achieved or not. The monitoring helps business to check where business
lacks behind in achieving business objectives and take necessary actions
to achieve proposed targets of Forth Guest house.

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SWOT analysis: - The Forth Guest house uses SWOT analysis
in finance and marketing in order to determine the strengths
and weakness of the business in the fields of the finance and
marketing. The analysis have helped business to take necessary
steps to eliminate weakness and increase the strengths of
business. The analysis have determined that the business have
invested very low capital which have reduced growth of the
organisation as compare to Deneview Bed and Breakfast.
Analysis of marketing have helped to determine that business
yet have not taken any steps in the marketing of Forth Guest
house whereas Deneview Bed and Breakfast uses good
marketing policy to develop brand image of the business.

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Customers Feedback:- Forth Guest house must
continuously take feedbacks from its service user
which will help to check the business where it
performs well and where it lacks behind in
performance of the business. The business must
consider the feedbacks of the customers as important
factors as they are only key factor in success and
dissolution of business. Good feedbacks are strengths
of business and bad ones are considered as weakness
of organisation which should be improved within the
time frame.

2.1 Recommendations for actions to overcome the
identified weaknesses in the business.
The Forth Guest house is a 4 star rated bed and breakfast hotel
business which faces barriers in the operation due to its
weaknesses. The weaknesses of the organisation have lead to the
loss in the working of the business. The some of the
recommendation for the business to overcome from the identified
weakness is described as follows:-
Developing marketing policy:- The Forth Guest house don't have
any marketing policy which declines the number of the customers
for the business organisation because of the strong marketing
policy used by the competitor. The Forth Guest house although it
is 4 star rated in the B&B business it must develop the marketing
policy in order create the awareness of the business service
provided among the public where the it functions.

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Increasing the capital investments:- The owner of the Forth
Guest house must increase the investment in the business.
The increase in the investment will help the organisation to
develop the service and helps in the structural development
of the hotel. The investment will directly help business in
making the use of the new technology within the business.
The technology can be used for online booking by the clients
who will help in the convenience of the clients. The
investments can help to increase the geographical area for
the business to operate. The good investment will help to
compete the business with the competitors in the business
market

2.2 Ways to maintain and strengthened the
existing performance of the business.
The Forth Guest house is the business which works in
the hotel service the success is complete depended on
the customers who uses the service. The strength of
the Forth Guest house is that it provides quality
service to the customers. The quality of the service
should be maintained by the business for the long
term which will help the business to grab the new
users and retain its existing users. The service of the
business can be maintained by providing extra
complementary service which shall be included in the
booking price.

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The determination of the satisfaction will help to
determine the performance of the business and
business can take the necessary steps in order to
eliminate the factors where the business lacks behind
which will help in the strengthening of the business
performance. The business must maintain the prices
of the service provided. The continuous change in
the price for the service creates the negative impact
on the mind of the existing service user which
declines the performance of the business.

2.3 Recommendations for new areas in
which business could expand.
The expansion of the business is very important factor to
develop the brand image and increase the market sharing by
the business. For the new expansion of the business it is
necessary for the business to analysis the current market
condition which helps in the expansion of the business. The
Forth Guest house can expand its business buy starting the
business in the retail sector. The new business in the retail
sector will help the business to increase its profitability by
the sale of the house hold and food products. The retail
stores have good customers in the market as they provide the
daily use household and food product which have daily sale.

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The start-up of the existing business in the other
country also helps in generating the brand image in
the international market. The expansion of the
business in the other country has risks in the success
due to the political and legal factors of that country.
To eliminate the risk certain measures and analysis
must be conducted before expansion. Business can
starts its new service in the technological sector
where business can deal in selling and purchasing of
technological products such as mobile phones,
tablets, laptops and computers.

Reference
Business, D., 2013. Doing Business 2013-Smarter Regulations for Small
and Medium-Size Enterprises. The World Bank. Abgerufen am. 29(04).
p.2013.
Eid, R and El-Gohary, H., 2013. The impact of E-marketing use on small
business enterprises' marketing success. The Service Industries
Journal.33(1). pp.31-50.
Forsman, H., 2011. Innovation capacity and innovation development in
small enterprises. A comparison between the manufacturing and service
sectors. Research Policy. 40(5). pp.739-750.