Small Business Management & Innovation

This assignment delves into the multifaceted world of small business management. It examines key aspects such as human resource management, organizational change, open business models, and the decision-making processes involved in exploiting innovation opportunities. The provided resources explore various challenges faced by small businesses, including adapting to change and fostering innovation within a limited context. It emphasizes the importance of strategic planning and effective implementation for success.

SMALL BUSINESS ENTERPRISE

Table of Contents
Introduction..........................................................................................................................................3
Task 1....................................................................................................................................................3
1.1....................................................................................................................................................3
1.2 ...................................................................................................................................................4
Task 2....................................................................................................................................................6
2.1 ...................................................................................................................................................6
2.2 ...................................................................................................................................................6
2.3....................................................................................................................................................7
Task3.....................................................................................................................................................8
3.1....................................................................................................................................................8
3.2 ...................................................................................................................................................9
3.3....................................................................................................................................................9
Task 4..................................................................................................................................................10
4.1 .................................................................................................................................................10
4.2 .................................................................................................................................................11
4.3 .................................................................................................................................................11
Conclusion..........................................................................................................................................13
References..........................................................................................................................................14

INTRODUCTION
Small firm (SBE) is the privately handled or partnership firm that are managed by owner of
the company. Such enterprises have limited sales and also less annual revenue than a large or
regular sized organization. So many small firms are working in UK, government is focusing on
small organizations and providing necessary supports so that they can grow and develop. European
Union considers those companies as small enterprises whose number of employees are 60 or less
than this.
For the present study, a small software company Softwire has been taken into practice;
continuous its business activity in information technology development and consultancy. It will
analyse the comparative measures of performance. Present report will emphasis on revise business
plan and will implement an accurate plan which can be able to give positive success to such small
firms. Report will focus on change management process in the company and continuous monitor the
improvement in performance of business.
TASK 1
1.1
Softwire is the UK based firm which is working in the field of software development. It was
founded on August 13, 1999. Pete Kenny, Dan Shavick, Phil Marsden were the founder of the
company (Ackermann and Audretsch, 2013). It was awarded as 3 stars and 6th position in 2011 in
the category of small enterprises. For providing good IT/ Internet services it got the highest position
in UK. 58 employees are working in the company. Approx turn over of the company is 5 million
GBP. Products of the company are as Reservwire,Webmap, Job finder.
It collaborates with other specialist agencies like managed services, design agencies and
other software vendors for providing effective and essential services to the customers, Mission
statement of the firm is to make technology beneficial for customers rather than creating problems
for them (Chesbrough, 2013). Its main objective is to provide quality and essential internet services
to the clients and also to create appropriate culture in the workplace for employees so that they can
support the organization. There are many strength and weakness of Softwire these are as below:
Strengths of Softwire
 Skilled employees: Skilled and talented workers are the major strength of the organization.
Workforce always tries to give their best to customers and fulfils their demands by providing
excellent services to the clients. Softwire hires educated and experience persons into firm so
that they can contribute well in the company and can help to achieve the objective of the
firm.

 Management: Mangers and leaders of organization gives opportunities to grow along with
company and maintain long term relationships with employees. To increasing produtivity
and turnover of company of workers they motivate them by providing rewards and
incentives. Leaders motivate to their employees to accept changes and maintain
coordination among them so less misunderstanding can take place.
 Cordination: In simple words communication means receive and give information to each
other on workplace. It helps to build strong coordination and provides important information
to the clients and other important members of company. A good communication skills can
reduces conflicts and decreases communication gap between them (Gallego, Rubalcaba and
Hipp, 2013).
 Practical application: Through innovation in technology company full fill demand of its
customers. Test driven and behaviour driven technology development is key innovation of
company. For travel reservation system they developed Reserve wire techniques. These
systems bring more customers and increases turnover of company.
 Working dependency on management: Company manages projects and dependency
between enterprise and its stakeholders with excellent management approach.
 Creativity: To increasing its business activities and productivity of company they apply
innovation in evert area of operations activity. Innovation is techniques that help company's
worker to think different and help to them give better work (Griffin, 2013).
 Imperfection
 Sales and profits is very low because of fewer customers.
 People has less knowledge about this company because its operate its business in UK's small
area only.
 Company has no planning to expand its business activities and working as small company.
 Company has lack of investment strategy in its operations.
 It has lack of interests towards research and development activities.
 Company employed only limited numbers of employees (Hatten, 2015).
1.2
Companies generally use many tools to measure execution of industry or business.
Comparative analysis is an effective tool to measure the performance of the enterprises. As per the
given scenario Softwire uses comparative measure to evaluate the performance of firm. Method of
comparative measures is as below:

Financial statements: Financial position of the company is not strong as its competitors
(Longenecker and et.al, 2013). It includes balance sheet, investment, returns and profit, cash flows,
income statements of the company and as well as of competitors. By assessing these statements,
company can evaluate performance of its own and also it can compare with its competitors.
Softwire is trying to improve its position in the market. By analysing such details, it can judge its
own position and compare the performance in IT field (Rao, 2015).
Customer survey or feedback: Presently, customers of Softwire are satisfied with the services of
firm. But it is important to know and meet as well as fulfil the exception of the clients. There are so
many small sized firms whose market share is higher than Softwire and they are operating their
business worldwide or in many locations. Customer survey is the tool or method by which it can
know the actual needs of its customers and can make such products and services which can highly
satisfy its customers. This measure technique helps to identify demand and expectation of target
market and can improve quality according to these (Scarborough, 2012).
Icreon, Itransition, DCSL Software are the biggest competitors of Softwire. They are having
huge market share in UK market. Itransition market share is higher than others.
Ratio analysis: Ratio analysis includes the ratio of liquid assets and liabilities. Presently, it has
minimum ratio but it expands its business than the ratio will be increased. To balance them it is
important to implement good investment strategy. Company can compare the performance by
observing previous year data with the recent year data. Liquidity, turnover, profit ratio etc. Points
can be analysed by Softwire with its previous year records and also with the competitors. By this
way, it can determine the lacking point of the firm and can improve such things (Tassabehji, 2013).
Working as a software development firm it faces high competition in the market. As per the
given fact, workers are the strength of the company. They contribute in the firm better and also
Softwire has good leadership at workplace as it helps it to gain competitive advantage. Comparative
performance measures are analysed by the firm with the help of Porter five forces model. Client
bargaining power is high because of difference in price as compare to competitors (Valanciene and
Jegeleviciute, 2013). Presence of suppliers bargaining power is low because suppliers are well
established and have strong relationship with firm. As Softwire offers all essential services to its
valuable customers so they can not go for the substitute products.
TASK 2
2.1
Company has many issues like location, numbers of employees etc. theses are the biggest
problems in company. Company have well trained management and skilled people who can handles

any kind of situations. They provide best services to their customers and users with good
communication skills. But as small enterprise they are facing so many internal problems. Company
need strategy to overcome with those problems which were discussed above. Recommended actions
can be taken by company which are described below:
 Employees needs training and management should help to them to enhance their knowlede
towards advance technology and equipments.
 With help of cloud computing and big data it can enhance its business activities and make
entry in new market as now company is working in small area and provides only limited
services and products to its customers. It can also provide more services related to
information technology to attracts more new customers (Hayes, 2014).
 Company should move to global level by opening different branches in different locations in
order to gain bigger market share.
 Experienced persons can give better work and serve better services to company. Company
should employed experienced and those who have technical knowledge as well.
 To build strong relations with suppliers and clients effective communication skills are
required and management should developed soft skills in employees.
 To retain its employees for long term company need to motivate to them so they works in
company for long period (Cameron and Green, 2015).
2.2
Several ways are here by which the existing performance can get maintained and
strengthened. Softwire deals with human resource, financial management, marketing ,production
etc. Management team try to implement such innovative ideas which can help to improve
technology and system of the firm (Armstrong and Taylor, 2014). Company need to make changes
in its existing policies and practices upgrading the standards and working to enhance future growth.
As it is focusing on its employees and providing necessary motivation to enhance their confidence
and satisfaction level towards organizati0on. They have to work on working hours or employees
and leave management of workers. Following ways are here through which current working can be
improved in Softwire company: Continuous evaluation: This is the best way to monitor the performance of employees in
software development company. CCE methods, 360 degree evaluation etc. are some tools
through which it can review the working of organization. It helps to analysis the working
styles of each employee so that manager can monitor those workers closely in the
workplace (10 Principles of Change Management, 2004). 360 is one of the great technique

supervisors give their opinion about employee and managers consider that opinion that
helps to know about the working style, behaviour of workers in the company. Behaviour,
timing, attitude etc. observe by senior managers or immediate supervisors. Feedback: Feedback is the effective technique to analysis the working of the company.
Employees are assets of the firm, they know about the organization well. Its internal and
external policies, drawbacks can be discussed by workers of the company. By knowing the
opinion of workforce positive and negative Softwire can improve in its policies and
practices. By this system company can also know opinion of customer about competitive
companies and their products and can fluctuate its prices as per the results (5 Ways To
Improve Small Business Second Half Performance, Profits, 2016). Customer's feedback also
play an important in the success of business. As they are the service user of the company,
they can tell about strong and weak areas of the company by this organization and make
plan to improve such weakness and also can utilize its strong areas very well. Budgeting: Softwire keep records of its investment, profits, liabilities etc. It is also a good
tool to evaluate the working of the company.
 Motivation to employees: Workers support organization to achieve its goal. There activities,
performance are very important in the business. By effective working of the workforce, it
can maintain the strengthened of the company. Softwire motivates a lot to its valuable
employees and they also contribute well in the workplace. It helps in keeping satisfactory to
workers so that they could stay for the long period in organization.
2.3
New dimensions are require when company want to expand its business. Small business
enterprises need to develop and it can only be dome by taking initiatives' foe developments.
Diversification is one of the method through which Softwire can enhance its business. As it is
operating its business in limited areas, so it is required to enter into new segment. Cloud computing
and big Data are two dimensions which help organization in expanding business (5 Ways To
Improve Small Business Second Half Performance, Profits, 2016). By this way company can attract
more customers and can enhance its data base in software development field. It will help to upgrade
the system that will e useful to provide effective services to consumers.
Softwire can implement after service payment, in these customers can make payment after
getting services or after delivery of product. That attracts more customers. Company can organize
seminars in college where students are getting knowledge of software development. That spread the
actual message of company and firm will able to build its brand name. Promotional activities help to
make image of the company in front of target audience (10 Principles of Change Management,

2004). For the further development it is very important that company implement such dimensions to
expand business. As market is very crucial and competitive, to gain the competitive advantage it is
necessary that it should expand business outside the nation or expand it at global level.
Technology up gradation is also the great tool which give positive results to the organization.
This help firm to achieve the goal of the company and to expand business in various areas. By
improving working practices or giving proper leaves to employees, motivation to workers, training
so that they be satisfy with the organization and can serve better to the company ( 10 Principles of
Change Management, 2004).
TASK3
3.1
Assessment of current plan and objective play an important part the success of the firm. It is
very important to assess the existing plan and objective. Future plan can be infused or made by
Softwire on the basis of current and available policies and practices. Softwire is a small firm,
objective of the enterprise is to provide top class outsourcing services to its customers. Company's
aim is to give quality to consumers beyond their expectation. Objective of Softwire is to increase
sales and enhance number of customers. To improve accuracy on all software projects is the plan of
the organization through which it will be able to gain maximum market share. Being a start up
organization it is planning to launch unique software which can attract more corporate consumers
towards the business unit (Hayes, 2014).
 Business plan: To run businesses effectively changes should be made in flexible manner.
Business functions should not effect its objectives.
 Performance basis considers for assessment: To measures company performance financial
statements and balance sheet are best tools. Company can make changes according to its
performance .
 Changes in business objectives: For further development and growth company should assess
its weaknesses and makes changes according to drawback so it can overcome with it.
 Impact of changes on business plan: It is very essential to get to know about business plan.
By this way company can make or formulate such policies through which it can be
developed and grow.
3.2
Revising of corporate plan is very important to incorporate in Softwire. As demand and need
so f customers are changing daily so product and services should be made as per the changing needs

of clients (10 Principles of Change Management, 2004).
 Business plan should consider new technology which can be used by its customers. Big data
and cloud can be taken by company in its revised business plan.
 To enhance business productivity, business plan should not against its objectives.
 By adopting new structured company can increases it clients and also can integrated with
business plan.
 Changes in budgeting provides a way through which company can know the requirement if
finance resources to meet the changes.
 For evaluation of future growth forecasting is very important.
3.3
Market is very crucial, demand and needs of public are changing rapidly. It is very important
to implement such changes in the working practice and formulate plan according to such changes
which can provide effective growth to the Softwire (S5 Ways To Improve Small Business Second
Half Performance, Profits, 2016). And can also help to achieve its business objectives. As purpose
of the firm is to expand and enhance market share and turn business from small to big firm.
Softwire should take various steps to implement the changes:
 Planning stage: It is the primary stage, in this level Softwire should redesign SWOT
analysis, guidance. In this stage mission, objective, goal, marketing plan should be
reconstructed as per require changes. Softwire should work on developing new software to
attract more consumers. For example it can organize meeting to discus the objective and aim
of the company. By making them clear it will be able to make them understand about benefit
of changes.
 Implementation stage: Future requirement, mission, objectives of the firm on the basis of
required changes need to be specify. Softwire needed to implement all changes into
workplace so that employees can know and adapt situation and contribute for the
development of the business unit.
 Action stage: In this Softwire need to take review and opinion of employees and customers
or can say take feedbacks of them about already exist services and product so that future
plan can be made accordance to that (5 Ways To Improve Small Business Second Half
Performance, Profits, 2016). Softwire by this way will be able to know opinion of
consumers and employees about the new changes and can modify them according to the
objective of the company.

TASK 4
4.1
Employees are key factors of entity. They are the main persons whose acceptance are very
important. It is the duty of management that they involve employees in decision making process and
other important activities. Some times people in the company refuse to accept such changes at that
time it creates conflicts situation in the firm. So it is very important that employer give priorities to
its valuable workforce. Softwire need to motivate its employees to contribute in such changes and
also make them understand that these changes are very good for the company and employees also.
Company need to make them aware about the necessity of such changes (Tassabehji, 2013). If
workers resist coordinating with firm then that is the morel responsibility of managers and owner of
the company to convene staff to work with the organization with new alterations. Proposed changes
have negative and positive impact on business.
Advantages of changes:
 Changes help to company to gain a market share to take advantages in competitive
environment.
 New strategy helps company to captures more market and enhance its brand value.
 With proposed changes company can enhance its consumers loyalty and trust also its
turnover.
Disadvantages of changes:
 Sales of company can be affected by these changes. It can be lot of time consuming and new
strategy may be require.
 More investment can be needed to conduct market research so they make changes according
to it.
To satisfy its customers and suppliers company should train its staff so they can deal
with them easily. By recruiting more skilled and experienced employees they can achieve their
business objectives.
4.2
Change Management is important activity in the organization. For implementing changes in
Softwire, it is important that both the parties employees and employers involve in process. It is a
lengthy process and require huge research (Scarborough, 2012). It takes time to implement such
changes in the company. Change management affect the performance and productivity of the firm.
It is very important that changes can be able to achieve the goal of the organization and also these
support to the mission and objective of the company. There are various models which help change

management process. Kurt Lewin's model uses by Softwire company. There are various steps in
such model, these are as below:
 Unfreezing: This is the first step it helps to understand the necessity of changes in the
company. It provides knowledge and understanding to employees so that they can accept
changes and move away from the current zone. Softwire plans to make changes in existing
policies and procedures (10 Principles of Change Management, 2004). Management tries to
reduce the resistance level of workers. They convince them for accepting such changes and
make them understand that these are important for the business growth and development.
Managers and higher authorities motivate them, provide them necessary training so that
people accept changes in the workplace. Here communication plays a vital role because
through effective coordination and communication better understanding can be developed.
 Transform: Change is not event, it is a process. This stage also called changing or moving
stage of the company. In this stage changes takes place in the company, it develops fear and
uncertainty in employee's mind. This is the step where Softwire organized training program
and development sessions to make people understand the needs and requirements of the
modification (5 Ways To Improve Small Business Second Half Performance, Profits, 2016).
Higher authority explain to workers why these changes are necessary and how individual
can be benefited by this. Workers are prepared mentally and physically to work in the new
and change environment by leaving old habits.
 Refreezing: It is the final stage also called reinforcing stage. Changes have been made into
the practice's ad people accepted such changes. It is the important stage because employees
can not step back after accepting such modification. In this stage Softwire monitors
activities of employees (5 Ways To Improve Small Business Second Half Performance,
Profits, 2016). Workers are used to of following new guild lines according to new process
to get the positive results.
4.3
Softwire Company has implemented change for improving its performance. Modifications
and reformations are done in the existing operational processes of Softwire Company for enhancing
productivity. It helps the firm to grow in international market by developing business strategies in a
organised manner.
Effective monitoring and control is required to ensure that change is implemented in successful
way and if any problem occurs in bringing change than proper measures can be taken at right time
to rectify errors (Hayes, 2014). Proper inspection of change process helps in identifying future
scope of success for the firm. Monitoring helps in checking manufacturing process and employee

behaviour. Workers of the company play important role in bringing change. Employees are
considered as major asset of any company and their contribution can help the company in achieving
its objective in positive way. Management of the company should ensure that proper training should
be given to employees for performing their assigned task in effective way. Workers need to learn
some advanced skills and techniques to implement change in the firm. Workshop and training
sessions should be arranged by employer to provide necessary skills to workers which will help
them in completing their responsibility for a particular task. Effective monitoring system for change
process helps in implementing the reformation in better and organized way (Tassabehji, 2013).
Various methods can be used for inspecting and monitoring the change process and Gantt
Chart is a tool which provides an effective mechanism for monitoring the change process. Growth
level of process can be assessed by this method on a given time frame. It is an easy and cost saving
method of measuring change process. It requires less time and cost of the company for measuring
performance. Monitoring of the process can be done on a frequent basis over the given time scale.
Software developing work of the company requires proper attention and monitoring for its
successful implementation. The time decided for completion of change process is 12 weal's and
there are total ten activities to be done in this time period (Scarborough, 2012). The first task is to
set the objective and to complete this task joint effort of management and employee is required.
Proper analysis of potential of the firm will help in deciding the objective for change in proper way.
For implementing the change it is necessary to do analysis of external and internal market factors
that can create problem in change process of the firm. Research will help in implementing
modifications in way according to requirement of the process. A proper planning should be done by
management for conducting the change process in productive way. By using technique of Gantt
Chart Softwire Company can monitor the improvement in change process . This method provides a
cost effective and time saving method for monitoring and controlling change process in the firm
(Down, 2010).
Activities to be performed (in
month)
1 2 3 4 5 6 7 8 9 10 11 12
Determination of goals
Evaluation of market conditions
for assessing demands of
consumers
Developing new product
Advertisement and promotional

campaigns
Enhancement in satisfaction
level of buyers
Formulation of business
strategy for expanding business
at international platform.
Change implementation for
achieving desired goals
Control and monitoring of
overall strategy implementation
process
Critical evaluation of strategy
implementation process.
CONCLUSION
Small business enterprises play vital role in the development of economy of particular
country. From the above report it can be concluded that Softwire operates its business in software
development field. Strengths and weakness of the company has been discussed in above report.
Comparative measurement is the good technique to analysis the actual position of the company by
knowing strength and weakness of the organization. Expansion of business is very important if firm
wants more profitability and wants to increase sales. Joint ventures, mergers, acquisitions, strategic
alliance etc. are some strategies through which a firm can expand its business globally and can work
at international level. It is important to implement action plan so that people can accept changes
and work accordance to that. Softwire has used Kurt Lewin's model for implementing change
management process in the company. Above report discussed Gantt Chart to monitor improvements
in the performance of business.

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