Improving Business Performance with Strategic Change

This assignment delves into the world of strategic business excellence (SBE) and its significance in driving company growth and expansion in the market. Using Baby Bear as an example, it examines how embracing effective change management tools can lead to improved services for clients. By focusing on changes that strengthen operations, Baby Bear can expand its reach through 24-hour day care services, pre-school education, sports programs, and other educational activities.

SMALL BUSINESS
ENTERPRISE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
1.1)Identification of strength and weaknesses of Small business enterprise..............................1
1.2) Business analysis with comparative measures of performance...........................................2
TASK2.............................................................................................................................................5
2.1)Actions to confront the weaknesses of organisation.............................................................5
2.2)Methods to maintain existing performance and strengthening it..........................................6
2.3) New areas where company can expand its business............................................................7
TASK3.............................................................................................................................................8
3.1)Assessment of existing business objectives and plans..........................................................8
3.2) Revision of business plan for new changes.........................................................................9
3.3) Actions plan for company....................................................................................................9
TASK4...........................................................................................................................................11
4.1) Impact of changes on business and its people...................................................................11
4.2) Change management in business.......................................................................................12
4.3)Improvements in the performance of business in given time.............................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Small scale organisation are the types of businesses where works are carried out in very
small level and employees are very less. Generally number of manpower working in these kind
of enterprises are around 250, and the sale volume of the companies are also not so high. Mostly
such organisation are controlled and governed by private sector like partnership, sole
proprietorship and many more. As to carry out all the operations and functions in an effective
and appropriate manner it is very essential for the business enterprise to follow and laws and
guidelines that are introduced by government in nation. It is very beneficial for a company
because it will assist in attaining competitive advantages and to sustain in market (Altman,
Sabato and Wilson, 2010).
Baby Bear is a small scale enterprise which is dealing with the baby care homes for small
babies in United Kingdom. It is availing services to the families where both the member are
working and so kid as sent to these place for day care. It also has two nurseries that are dealing
and working in UK itself. This company provides childcare service which is very beneficial for
child's development and avails safety, security and stimulating environment for the growth of
small kids.
TASK1
1.1)Identification of strength and weaknesses of Small business enterprise
Small business enterprises are very much concern about the customers in market as
because they are willing to grow and develop in competitive scenario. Hence they use to serve
the clients in most appropriate manner and prices are also very low. It is an important aspect
because this will help it to sustain in market in most influencing manner. Baby bear is a small
scale enterprise which is dealing in market to provide baby care services from very young. The
services are mostly availed by those parents who are working (Audretsch and Link, 2012). The
timings of the firm is 7:30 AM till 6:00 PM, it is working in regular basis besides national
holidays and 5 days for Christmas. As to understand the strength and weaknesses it is important
to to carry out the SWOT analysis of Baby bear organisation.
SWOT
Strength Weaknesses
1

 Its quality is the qualified staff.
 Staff are very well trained and are
capable to serve clients.
 Experienced and compelling
administration in industry.
 Set up best practice through various
techniques (Bridge and O'Neill, 2012).
 Accessibility of adequate income.
 Rapidly reaction on issues in
determined time.
 Adaptability to embrace new changes. Few overheads.
 They are new in this area.
 Poor mindfulness among the vast
public.
 Dubious assets amid start up.
 Need in compliances with nearby, state
and government laws.
 High cost of running business including
utilities and nourishment.
 Absence of value nourishment and
administrations
 Need in support of focus on the
grounds that these costs are
exceptionally costly.
Opportunities
 Rich neighbourhood with high
populace of double wage families.
 They can give their administrations at
home. To worker those staffs who can run
with guardians to office on the grounds
that in exhibit time, corporate houses
are demonstrating uncommon space to
keep youngster.
Threats
 Era of new business in comparative
region.
 Lack of qualified and talented staff part
which result in disappointment of their
marketable strategy.
 Inadequate strong staff individuals.
1.2) Business analysis with comparative measures of performance.
Examination of business is required to direct time to time with the goal that extra factors that are
required for fortify its execution can be embraced. Execution can be measured through monetary
information and non money related information. It is essential portion that can be utilized to
distinguish the range where it is required for business to commit more push to fortify its position
(Burns, 2010). This is vital instrument to make examination of present money related
information with past. It recognizes its present position and to detailing of future arrangement.
2

Distinctive strategies can be utilized by business to gauge its execution as Graphic rating scales,
constrained positioning and so on. There is great chart of monetary information in present and its
expanding on high rate as appeared in realistic rating scale .
According to the exploration it is recognized that organization has great rating among its market
rivals. They are compelling in giving quality administrations to its clients (Chittithaworn and et.
al, 2011).
Benefit and misfortune record of year finished 30th April 2016 and 30th April 2017 of Baby
Bear demonstrates following figures:-
P&L a/c of the year ending on 30th April 2016 & 2017.
2016 (value in £) 2017 (value in £)
Sales 140 200
Cost of sales 80 150
Gross profit 60 50
Overheads 20 25
Net Profit 40 25
Balance sheet for the year ending on 30th April 2016 & 2017.
2016 (value in £) 2017 (value in £)
Fixed Assets 15 12
Current assets:
Stock 8 15
Debtor 10 35
Bank 1 0
19 50
Current ratio- Current Assets / Current Liability
Year 2016
= 19000/6000
= 3.16 times
3

Year 2017
= 50000/25000
= 2.00 times
In year 2016, Current resources of the organization is three time more than its obligation
which is in very good condition yet in year 2017, its C.A is increasingly the twice of its present
risk. Wisdom in Current proportion i.e. 2.
Quick ratio (Acid test): Current assets- Inventory/ Current liabilities
Year 2016
=19000-8000 / 6000
= 1.83
Year 2017
=50000-15000 / 25000
= 1.4
In 2016, this company can pay its liability by its current assets. But this status is
maintained in next year. In year 2017, they used working capital in effective manner. Wisdom is
on ideal quick time i.e. 1
In 2016, this organization can pay its obligation by its present resources. In any case, this
status is kept up in one year from now. In year 2017, they utilized working capital in successful
way. Wisdom on ideal quick ratio i.e. 1
Gross profit Ratio: Gross profit / sales * 100
Year 2016
= 60/140 * 100
= 42.857
Year 2017
= 50/200 * 100
= 25
In year 2016, company's gross profit ratio is 42.857 which is higher than its next year
data i.e. 25. in year 2017, the cost of production is higher than its previous year data which
resulted in lower Gross profit.
4

In year 2016, gross profit proportion of organization's is 42.857 which is higher than its
one year from now information i.e. 25. in year 2017, production cost is higher than its past year
information which brought about lower Gross benefit.
Net Profit ratio: Net profit / sales * 100
Year 2016
=40/140 *100
= 28.571
Year 2017
=25/200*100
= 12.5
Net profit for the year 2017 is lower than its earlier year information. The organization
has confronted more costs in 2017 so the net benefit proportion for it is 12.5.
Financial statements of Mother care shown the following figures:
P&L a/c of the year ending on 30th April 2016 & 2017.
2016 (value in £) 2017 (value in £)
Sales 150 210
Cost of sales 70 140
Gross profit 80 70
Overheads 10 20
Net Profit 70 50
Balance sheet for the year ending on 30th April 2016 & 2017.
2016 (value in £) 2017 (value in £)
Fixed Assets 15 12
Current assets:
Stock 7 16
Debtor 11 34
Bank 1 0
5

19 50
Current ratio- Current Assets / Current Liability
Year 2016
= 19500/6500
= 3 times
Year 2017
=100000/50000
= 2.00 times
Quick ratio (Acid test): Current assets- Inventory/ Current liabilities
Year 2016
=19000-7000 / 5000
= 2.4
Year 2017
=50000-15000 / 15000
= 2.33
TASK2
2.1)Actions to confront the weaknesses of organisation
Company's weaknesses influence operation of organization in negative way. There are
few factors that make leap in its development and growth. This is vital for business to utilize
powerful measures to over come its shortcomings and drawbacks. It gives development and
advancement chance to the association (Fassin, Van Rossem and Buelens, 2011). There are a few
issues that are confronted by them in connection to quality instrument, absence of support, poor
mindfulness, new in nearby market, increment in focused association in comparative market.
They are facing some issue since they are new in market therefore it is vital for them to utilize
successful advertising methods with the goal that they can upgrade their fame. They can
approach specifically to business families and those who are working and can give information
with respect to their administrations and offices to them.
This is very much required for this association to receive viable component so they can
agree upon standards, tenets and control on particular time. There is shortage of eatables and
6

services hence it become very necessary for the company to use qualitative foods. For this
purpose company need to create bonds and link with different firm for availing them quality
products. It is likewise recognized that there is need in upkeep so this is essential for them to
grow cash on Painting, repair, substitution of furniture and different supplies with the goal that
they can pull in more customers toward Baby Bear company.
Brand image of other comparative business is outstanding in market place so it is
exceptionally troublesome for this association to enter in new zone. For that they can use
successful advertising technique and may concentrate on effective and quality services
(Gunasekaran, Rai and Griffin, 2011). They are additionally required to utilize knowledgable
work forces in their organization who have involvement in this area with the goal that they can
address various issues and problems in better way. This is the major aspect for this business to
use recommendations and suggestions in their association with the goal that they can address
their concern in proper way. It is critical on the grounds that on the off chance it is not cleared up
then it might cause negative effect over the execution of organization (Nga and Shamuganathan,
2010).
2.2)Methods to maintain existing performance and strengthening it
It is very essential for the company to use several techniques so that performance and
strengths of the firm can be maintained in an effective manner. This will avail better opportunity
for Baby Bear company in the market and it will also be able to attain competitive advantage in
marketplace. Hence, it become very necessary for company to adapt new techniques and
methods so that operations and activities can be performed in more smooth and appropriate
manner along with that productivity will also get improved. As to sustain in market, effective
tools of marketing can also be attained by Baby Bear organisation.
Below are some of the methods that can be adapted by company for maintaining and
strengthening their performances-
 Customers satisfaction- One of the most important aspect that the cited organisation has
to take in consideration about the needs and wants of customers. Their satisfaction level
has to to be attained by the company. Company can hire candidates who are very perfect
in their work and are well qualified as well as talented. This will help in serving the
clients in most appropriate and effective manner.
7

 Adaptability-This is fundamental for this organization to use new changes that are
presently performed in market so they can be able to attain competitive benefits. There
are many modifications as new mechanical up gradation, extra exercises for kids that
assistance in the development of children can be embraced by them (Stokes, Wilson and
Wilson, 2010. ). This variables are required to receive by the organization since it helps
to take remain in advertise.
 Assessing strategies of competitors- It is required for organization to investigate
contender's approaches so they can design their exercises as per other's. This gives
support to their current position and to reinforce their market position for future period
 Prioritising and organising-This factor can be utilized by business to deal with their
operation in development desired way. It is required for company to compose and
organize distinctive assignment so it can not be covered to each other. This device is one
of the successful approach to finish the work in strong way and give quality
administrations to its clients (Storey, 2016).
 Interruption management-There are many components that make leap in the development
of business so it is basic for association to oversee such interference with the goal that
their leaving execution can not be influenced in negative way. At the point when these
elements are not considered in revise way then it influences execution in antagonistic
way.
2.3) New areas where company can expand its business
This is an essential part for business to grow itself in new marketplace. It assist the
organization to improve their shares of the overall industry and increment in its benefit. At
present, Baby Bear is giving their administrations in nursery. It is imperative for it to extend their
region into new fragment with the goal that they can offer more services to its clients.
Following are the territory where they can extend their business as:-
 24 hours services: At present time, this association gives their administrations in between
7:30 AM to 6:00 PM so it is required for them to give such administrations to 24 hours
and 7 days. At some point, employees need to go outside the city for few days for
business work. Hence this opportunity is very supportive for the company as to avail
services to clients 24*7.
8

 Health care centre: They can open medicinal services in their association where they can
give compelling treatment to kids. It is critical for them to utilize those faculties who
have expertise in this field. This area of business will avail better development and
improvement chance to them.
 To open pre school: All the people are associated with this organisation as because they
are availing services to clients in most appropriate manner. Pre school is one of the sector
where company can be able to expand its business (Teece, 2010). This is valuable for this
association and also for guardians. They can open pre school where they can give training
to kids and youngsters. This extends their business into new region.
 Games: They can enhance their market to new section by growing their exercises to
brandish exercises. In exhibit time, guardians have concentrate on such exercises likewise
in light of the fact that it is required for the development of tyke. There are numerous
open doors that are accessible in brandish division so it is vital for this business to
consider these exercises to extend their business.
 Utilize other educational modules exercises: There are numerous region where they can
grow their operation. It is required for this business to consider different exercises as
painting, moving, singing, drawing and so forth so an ever increasing number of
individuals can be pulled in toward their administrations (Williams and Schaefer, 2013).
Guardians are empowered toward the such focuses where they offer different exercises
for the development and advancement of youngster. So it is critical for this organization
to consider different exercises which extends their business zone.
TASK3
3.1)Assessment of existing business objectives and plans
It is very important for an organisation to set aims and objective in a
very effective and appropriate manner. Company also need to assess them
so that they can get get a proper idea whether set standard has been met or
not. The fundamental target of Baby Bear is to avail better administrations
to those people who are doing works. They generally endeavour to roll out
essential improvements through that they can make development and
advancement of children. This organization dependably attempt to embrace
9

new measures that are required for the enhancement of kids. It has
objective to use employees in their business who are expertise in their
work.
The goal of organization ought to be SMART so they can accomplish
their objective on desired time. It is the aim of association to embrace
quality material to nourish babies. They generally attempt to give good
environment to kids with the goal that their mental and physical
development can be on high level (Hilmersson, 2014).
This firm concentrate on development of kids as well as on different
factors as to give fundamental instruction, to show conduct and essential
things that they can utilize. Evaluation of goal is one of the essential errand
that gives clear thought regarding the organization and it distinguishes that
its target can be achieved in compelling way or not. Through this, it is found
that it is required for the organization to build up some change in their
administrations with the goal that they can target more individuals and
accomplish its goal.
The above expressed goal can be achieved by the organization when
they make concentrate on their future procedure and plan. It is required to
receive quality administrations and to make concentrate on well-being
development of youngsters (Altman, Sabato and Wilson, 2010). This can be
conceivable when they can give great condition to kids.
3.2) Revision of business plan for new changes
It is fundamental for business to reconsider their business time to
time according to the market patterns. This gives upper hand to business
and through this, they can achieve their objectives and target in viable way.
There are many changes that emerge in condition and when association
embrace such changes then it is gainful for them to accomplish their goal in
more adequate way.
Selection of individuals are changing step by step. Already, guardians
like to concentrate on instruction just yet now they need to concede their
10

kid in the association where they concentrate on training and additionally
on additional educational modules action. It is required for Baby Bear
Nursery home to utilize such changes in their business so they can draw in
huge number of clients toward them. This guides to run operation in more
viable way and to secure benefits at marketplace. Already, they have
exceptionally restricted faculties who were working with them to give these
administrations yet now the market range of organization is expanding so it
is required to make some change in its strategy for success as require to
utilize best qualified proficient for various post.
It is required for this organization to keep up notoriety and
untarnished notoriety in the public eye and to give quality care with the
goal that they can achieve greatest help from group. Aggressive valuing and
adaptability hours are the two procedure that can be received by business
to contend with new market changes (Audretsch and Link, 2012). Presently
a day, there are numerous rivals in advertise with comparative
administrations so it is required for Baby Bear to embrace visit changes of
condition so they can give better administrations as correlation with its
rival.
3.3) Actions plan for company
Changes are critical to receive by business for the improvement of
their association. There are many changes came in compel that require to
address by the organization. This can be the purpose behind support in
advertise and can be the ground to kick out from marketplace. These
elements fortify the market position .
It is fundamental for this organization to execute activity design with
the goal that they can address new market changes in more powerful way
(Bridge and O'Neill, 2012). There are numerous innovative improvement,
social standard of individuals has upgraded at larger amount in show time.
So it is required for this organization to take after such changes with the
goal that they can make advancement in business.
11

Following are the components of activity design:-
1. To counsel statistical surveying with the goal that territory of change can
be recognized by the business.
2. To recognize the components that can be secured.
3. Out every one of the components, it is required to pick those variables
which are on need so fundamental change can be made.
4. To distinguish the advantage that can be accomplished through new
change as bigger clients fulfilment.
5. Every one of the assets that are required in compelling execution of plan
require to consider as time scale that require to finish.
6. Subsequent to considering all the above variables, activity design is
produced. Usage of plan is made with the goal that coveted outcome can be
accomplished .
In the present case, organization need to use changes as intending to
give instructive and additionally different exercises as games, painting,
drawing, moving and so forth. Following are some of the action plans that
can be adapted-
 Conducted statistical surveying and it is recognized that there are
numerous rivals in market who are giving these administrations at
bring down rate.
 It is distinguished that they need to concentrate on late improvement,
natural changes, guardians have centre to concede their tyke in
association where there is concentrate on instruction and in addition
on different exercises.
 It is found that there is prerequisite to consider other educational
modules exercises (Burns, 2010).
 For such change, it is distinguished that it will take 2 month to make
vital course of action as to fabricate wear ground, orchestrate guide
for drawing, games, painting and moving action, prerequisite of
independent space for these exercises and so on.
12

 When these necessities are satisfied, it is distinguished that
organization has accomplished more clients fulfilment and many
individuals are toward the administrations of this association.
TASK4
4.1) Impact of changes on business and its people
Many changes are fused in association time to time that has constructive or
contrary effect over business and its work forces (Chittithaworn and et. al,
2011).
Effect on business
 New open doors came in compel when changes emerge in business.
This is vital fragment for business to receive such factors since it
grows advertise zone of organization in huge region.
 Increment proficiency is another factor that emerge in business.
Through new changes organization can target more clients and give
them better and quality administrations that outcome in increment in
its productivity and gainfulness. At the point when new factors emerge in business, it is imperative for
association to receive it which has affect over its execution. At the
point when association satisfies the necessities of customer then its
goodwill in advertise get upgraded .
Effect over work force
 Mental anxiety is caused at some point to its representatives since it
is required for them to receive new changes. Existing individuals need
to take after those practices that they are following from past time
and when they embrace new changes then it makes issue them.
 Time is taken to receive to late change. Representatives who are
working for long time devours much time to embrace new changes. So
this technique is tedious.
 Loss of devotion is another factor that is confronted by work forces
(Fassin, Van Rossem and Buelens, 2011). At the point when new
13

changes are received by organization then it has centre to lessen the
pay of workers. Consequently, a few representatives left the
occupation and staying one face disappointment with work.
4.2) Change management in business
It is fundamental for business to consider changes in successful way.
There are numerous modification that are confronted by association when
and it is required to oversee such factors in powerful way (Gunasekaran,
Rai and Griffin, 2011).
Kottler's components can be considered by Baby Bear for change
administration as:-
 Create sense of urgency: It is critical to mindful the representatives
about the need of changes. It requires legitimate and imagine
correspondence to talk about conceivable answer for issue.
 Crate guiding coalition: extend group is required to build up which
can co-related with changes.
 Create vision for change: Vision comprehends what is the thought
process behind the change. It gives assistance to fruitful usage.
 Communicate vision: It is required to acknowledge the change by
every one of the workers and it is conceivable by correspondence so
clear thought can be exchanged.
 Remove obstacles: To expel snag is vital to consider before
executing changes. Correspondence advises significance of
adjustment to opposing individuals.
 Create short term wins: It is required to make here and now
objective since it accomplishes long haul objective.
 Consolidate improvements: It is required to embrace change with
the goal that greatest help can be offered to receive required
modification.
 Anchor the change: Modification is a piece of culture and
hierarchical esteem and standard must comprehend with vision .
14

4.3)Improvements in the performance of business in given time
Each business tries to embrace late alteration so they can fortify their
market position. This is critical for the organization to recognize the
elements that have affect over its execution. At the point when Baby Bear
organization received new change that is considered in real life design then
it fortified the position in advertise (Hilmersson, 2014). Number of clients
are additionally expanded. The productivity and benefit of referred to
association get expanded.
Following are the elements that can be utilized by business to distinguish
change:
 SWOT : This is the best medium that can be utilized to recognize
effect of interior and outside variables over the business. Variety in
such factors help to discover enhancements.
 Benchmarking: It is utilized to make examination so genuine
execution can be measured. Here examination is made with
comparable business (Stokes, Wilson and Wilson, 2010).
 Trend analysis: It is useful to investigate the pattern so it can be
recognized that association can track drift or not.
 Balance score card: This is utilized to quantify execution framework.
It is utilized to distinguish change in inside capacity. This is utilized to
quantify money related execution and gives procedures that can be
utilized to dispose of monetary obstacle.
CONCLUSION
According to above investigation it can be understood that SBE is one of the
essential element of economy. This gives development and expansion of
company in market. Baby Bear is the organization that gives Day mind
administrations to tyke. They embrace compelling instrument with the goal
that they can give strong administrations to its clients. There are many
changes came in constrain so it is required for this organization to make
concentrate on that and consider it for fundamental advancement. They can
15

grow their region by giving 24 hours day mind benefit, to open pre school,
considering sports and other educational programs exercises.
16